Chapter 8: Improving Decisions with Marketing Information

1. Chapter 8: Improving Decisions with Marketing Information

2. Marketing Information System (MIS) • Organized for a continuous flow of information • Gathering information • Accessing information • Analyzing information • Development of intranets is speeding the adoption • Multimedia information, not just numerical data • Search engines make information easier to find • Design of the MIS requires data processing expertise and marketing expertise • Use of MIS is focused on making better marketing decisions • Strategy planning • Details of implementation • Timely control procedures

3. Decision Support System (DSS) • A computer program—an interface—between the manager and the MIS • Makes it easy to get needed information • Search engines are a powerful tool for finding what’s needed • Easy access to databases in a data warehouse • Makes it easy to analyze the information • May involve marketing models—to show the relationships among different marketing variables • Is used as the manager is making decisions

4. Examples of Uses of a Decision Support System • Selecting target markets • Competitive evaluation, such as changes in market share • Customer analysis • Sales analysis • Cost analysis • Analysis of responses to elements of marketing mix • Forecasting

5. Marketing Research • Procedures to gather and analyze information for marketing decision making • Focus is on new information not already available in the MIS or other secondary data sources • May be handled inside the firm or by outside specialists • Cooperation is needed between technical specialists and manager/decision makers

6. Early Identification of Solution Defining the Problem Analyzing the Situation Getting Problem- Specific Data Inter- preting Data Solving the Problem Feedback to Previous Steps Marketing Research Process Exhibit 8-2 8-4

7. Primary and Secondary Data • PRIMARY DATA: Information specifically collected to solve a current problem. Examples: • surveys • experiments • observational studies • SECONDARY DATA: Information that has previously been collected or published. Some examples: • information from the Internet or a firm’s intranet • data from Bureau of the Census • computer databases • internal reports • industry trade associations

8. Inside Company Secondary Data Sources Outside Company All Data Sources Observation Primary Data Sources Questioning Sources of Data Exhibit 8-3 8-5

9. Before Gathering Primary Data • A manager should determine: • 1] Is is possible to reduce the uncertainty of this decision? • 2] How much is that reduction of uncertainty worth? Is the value > cost? • 3] Can I get information from the research fast enough to be useful?

10. Explain the differences between data and information Changing View of the Marketing Research Process • Five Situations When Marketing Research Not Needed • Information already available • Insufficient time frame • Inadequate resources • Costs outweigh the value of the research • Strategic importance of the problem

11. Focus Group Interviews • A popular type of qualitative research • Involves a small group (usually 6 to 10 people) in a discussion—usually for about 1 hour • A group leader ("interviewer") unobtrusively guides the discussion • Designed to get in-depth, open-ended responses, not intended to be "representative" of larger market • Group interaction stimulates thinking and reactions • Analysis of results is subjective • May involve videotaping and or “on-line sessions” and other technologies

12. Primary Methods for Collecting Survey Data Mail Telephone Personal Interview Collecting Data 8-6

13. Population Sample Key Issues in Data Interpretation Confidence Intervals Validity Interpreting Data 8-7