Knowledge is Power

1. Knowledge is Power • Marketing Information System (MIS) determines what information managers need and then gathers, sorts, analyzes, stores, and distributes relevant and timely marketing information to system users • 3 components to MIS • data • computer hardware and software • MIS experts

2. The Marketing Information System Internal Data Marketing Intelligence Marketing Research Acquired Databases Information for Marketing Decisions Computer Hardware and Software

3. Marketing Information System • Internal Data System - internal system for communication (e.g., intranet) • Marketing Intelligence - method to get information about the environment • Marketing Research - process of collecting, analyzing, and interpreting data about customers, competitors, and the business environment to improve marketing effectiveness

4. Marketing Research Data • Syndicated research reports • collected and compiled by secondary data firms on a regular basis and sold • Custom research reports • primary data collected to provide answers to specific questions

5. Marketing Decision Support Systems Marketing Manager/ Decision Maker Interactive Software Information Needed for Decision Making MIS Data Statistical and Modeling Software

6. Step 1: Define the Problem What is the management decision? • Specify the research objectives – “translate” the management decision into research objectives • Identify the consumer population of interest • Place the problem in an environmental context – what are the underlying assumptions?

7. Step 2: Determine the Design • Can the information be acquired from existing data? • If so, secondary data sources will be utilized • If not, primary research will be necessary

8. Secondary Research Internal Sources External Sources Company reports Previous company research Salesperson feedback Customer feedback Published research Trade organizations Syndicated research Government sources Research Designs

9. Primary Research Exploratory Descriptive Causal Laboratory Field Interviews Focus Groups Case Studies Ethnographies Cross-section Longitudinal Research Designs

10. Exploratory Research Generally provides qualitative data: Does it exist, what is it? • May take several forms • interviews • focus groups • case studies • Ethnography

11. Descriptive Research • Generally provides quantitative data: How big is the market? • Utilizes large sample of participants as base • Designs • Cross-sectional design involves the systematic collection of quantitative information from one or more samples of respondents at one point in time • Longitudinal design tracks the responses of the same sample of respondents over time

12. Causal Research • Attempts to understand cause-and-effect relationships • Factors that might cause a change are independent variables while the variables that are affected are dependent variables • Experimental design allows researchers to control possible explanations for the effect

13. Step 3: Choose the Method for Collecting Primary Data • Communication • Mail questionnaires • Telephone interviews • Face-to-face interviews • Online questionnaires • Observation • Personal • Mechanical

14. Advantages Respondents feel anonymous Low cost Good for ongoing research Disadvantages Slow return speed Low response rates typical Inflexible questionnaire Length of survey is limited Mail Questionnaires

15. Advantages Fast High flexibility in questioning Low cost Limited interviewer bias Disadvantages Decreasing levels of cooperation Limited questionnaire length Consumers screen calls Telephone Interviews

16. Advantages Flexibility of questioning Long questionnaires possible Can help explain questions Can use visuals Disadvantages High cost Interviewer bias possible Time requirements are high Face-to-Face Interviews

17. Advantages Instant data collection Flexible question patterns Low cost No interviewer bias Access regardless of geographic location Disadvantages Unclear who is responding No assurance of honesty Limited questionnaire length Limitations inherent with self-selected samples Online Questionnaires

18. Observation • Personal observation • traffic analysis • recording how products are used • Unobtrusive measures • pantry checks • garbage search • Mechanical observation • people meters

19. Data Quality • Validity - extent to which the research measures what it was intended to measure • Reliability - extent to which research measurement techniques are free of errors • Representativeness - extent to which consumers in the study are similar to the target of interest

20. Step 4: Design the Sample • Probability samples • each member of the population has an equal and known chance of being included in the sample • allows for inferences to be made about the population • Non-probability samples • unequal chance of being included in the sample • limits inferences to the population

21. Probability Samples • Simple random sample • Systematic random sample • Stratified sample

22. Non-Probability Samples • Convenience sample • Quota sample

23. Step 5: Collect the Data • Implementation phase • Special issues in data collection • Gathering Data in Foreign Countries • Challenges due to access, coverage, and language • Single Source Data • Data on purchasing behavior and advertising exposure are measured for members of a consumer panel using television meters, retail scanners, and split-cable technology

24. Step 6: Analyze and Interpret Data • Enter, clean, and code data • Choose appropriate techniques for analysis • Interpret analysis

25. Step 7: Prepare Research Report Who will be receiving the Report? • Executive summary • A description of research methods • Discussion of results • Limitations of study • Conclusions and recommendations

26. Online Research • Online Tracking • Cookies • Testing, Questionnaires, and Focus Groups

27. Online Tracking • The Internet offers the ability to track and monitor consumers while they surf • Several behaviors can be monitored • What sites are visited? • How long did the visitor stay? • What types of information did they collect at the site? • Where did they go after they left?

28. Cookies • text files inserted on a user’s hard drive by an Internet site • allow for details of a web visit to be stored and tracked with future visits • provide a way of observing behavior and customizing web sites and offerings to specific users • For consumers, cookies represent a trade-off between privacy and customization