Marketing Information Systems: Enhancing Decision-Making

1. Chapter 4 Marketing Research and Information Systems

2. The Importance of Information • Companies need information about their: • Marketing environment • Competition • Customer needs • Managers don’t need more information, they need better information.

3. What is a Marketing Information System (MIS)? • A MIS consists of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers. • The MIS helps managers to: • Assess Information Needs, • Develop Needed Information, • Distribute Information.

4. The Marketing Information System (Fig. 4.1)

5. Information Managers Would Like to Have What They Really Need & What is Feasible to Offer Functions of a MIS: Assessing Information Needs Benefit Cost

6. Internal Data Computerized Collection of Information from Data Sources (i.e. Accounting) Within the Company. Marketing Intelligence Collection and Analysis of Publicly Available Information about Competitors and the Marketing Environment (i.e. Technological). Marketing Research Design, Collection, Analysis, and Reporting of Data about a Specific Marketing Situation Facing the Organization. Functions of a MIS: Developing Information Information Needed by Managers Can be Obtained From:

7. Functions of a MIS:Distributing Information Distributes Routine Information for Decision Making • Information Must be Distributed • to the Right Managers at the Right Time. Distributes Nonroutine Information for Special Situations

8. Discussion Connections • What is the overall goal of a Marketing Information System (MIS)? • How are individual components linked and what does each contribute? (See Figure 4.1, Slide #5) • Apply the MIS framework to Coca-Cola. What does this company appear to be doing well?

9. The Marketing Research Process (Fig. 4.2) Implementing the research plan -- collecting and analyzing the data Defining the problem and research objectives Developing the research plan for collecting information Interpreting and reporting the findings

10. Marketing Research ProcessStep 1. Defining the Problem & Research Objectives • Gathers preliminary information • that will help define the problem • and suggest hypotheses. Exploratory Research Descriptive Research • Describes things as market • potential for a product or the • demographics and consumers’ • attitudes. • Test hypotheses about cause- • and-effect relationships. • Tests hypotheses about cause- • and-effect relationships. Causal Research

11. Marketing Research ProcessStep 2. Develop the Research Plan • Research plan development follows these steps: • Determining Specific Information Needs • Gathering Secondary information • Planning Primary Data Collection

12. Secondary Primary Both Must Be: Relevant Accurate Current Impartial Information That Already Exists Somewhere. + Obtained More Quickly, Lower Cost. - Might Not be Usable Data. Information Collected for the Specific Purpose at Hand. Develop the Research PlanGathering Secondary Information For ad, click object:

13. Observational Research Gathering data by observing people, actions and situations (Exploratory) Experimental Research Using groups of people to determine cause-and-effect relationships (Causal) Survey Research Asking individuals about attitudes, preferences or buying behaviors (Descriptive) Most Widely Used Form Develop the Research Plan Planning Primary Data Collection Research Approaches

14. Develop the Research Plan Planning Primary Data Collection Contact Methods (Table 4.3)

15. Develop the Research Plan Planning Primary Data Collection Who is to be surveyed? (What Sampling Unit?) Probability or Non-probability sampling? Sampling Plans Sample - representative segment of the population How should the sample be chosen? How many should be surveyed?

16. Develop the Research PlanPlanning Primary Data Collection Research Instruments • Questionnaire • What questions to ask? • Form of each question? • Closed-end • Open-end • Wording? • Ordering? • Mechanical Devices • People Meters • Supermarket Scanners • Galvanometer • Tachistoscope • Eye Cameras

17. Develop the Research PlanPresenting the Research Plan • Summarize the plan in a written proposal and cover: • Management problems addressed, • Research objectives, • Information to be obtained, • Sources of secondary information, • Methods for collecting primary data, • Way the results will help management decision making.

18. Marketing Research ProcessStep 3. Implementing the Research Plan Collecting the Data Most Expensive & Subject to Error Research Plan Processing the Data Analyzing the Data

19. Marketing Research ProcessStep 4. Interpreting and ReportingFindings Step 1. Interpret the Findings Researcher Should Present Important Findings that are Useful in the Major Decisions Faced by Management. Step 2. Draw Conclusions Step 3. Report to Management

20. Other Marketing Research Considerations Marketing Research in Small Businesses and Nonprofit Organizations Public Policy and Ethics in Marketing Research International Marketing Research For ad, click object:

21. Review of Concept Connections • Explain the importance of information to the company. • Define the marketing information system and discuss its parts. • Outline the steps in the marketing research process. • Compare the advantages and disadvantages of various methods of collecting information. • Discuss the special issues some marketing researchers face, including public policy and ethics issues.