Chapter Four

1. i t ’s good and good for you Chapter Four Managing Marketing Information to Gain Customer Insights

2. Market research, the need and the forms Information systems increase the usefulness of data Growing role of technology in marketing research Conducting a market research project Gathering and using information aboutcompetitors Ethics enters into the performance of marketing research Chapter Goals

3. Expectations Satisfaction Competition Uses of Marketing Research Markets Market Segments Marketing Mix

4. Marketing Research The development, interpretation, and communication of decision-oriented information to be used in all phases of the marketing process.

5. Marketing Research • Marketing research—the development, interpretation, and communication of decision-oriented information to be used in all phases of the marketing process. • It influences planning, implementation, and evaluation. • It focuses not only on information gathering, but on analysis and implications as well.

6. Syndicated Services Marketing Information System Decision Support System Marketing Research Project Scope of Marketing ResearchActivities Marketing Research Activities

7. Marketing Information Systems On-going, organized procedure to generate, analyze, disseminate, store, and retrieve information for use in making marketing decisions.

8. Marketing Information Systems

9. Characteristics of an ideal MkIS. • 1. Includes real-time data. • 2. Generates regular reports and recurring studies as needed. • 3. Integrates old and new data to provide updates and identify trends. • 4. Analyse data using statistical and mathematical models that represent the real world.

10. Benefits of a MkIS • a. Provides a fast and more complete information flow for decision making. • b. Allows a wider variety of data to be collected and used. • c. Allows continual monitoring of marketing mix performance. • d. Provides benefits to firms of all sizes.

11. Factors affecting how well an MkIS functions • a. The nature and quality of the available data. • b. How the data are processed and presented to provide useful information. • c. The working relationship between MkIS operators and decision makers.

12. MKIS Limitations • Managers might not define exactly what information they need on regular basis. • Cost of operating and up dating a MKIS is expensive. • MKIS is vot suited to the solution of unanticipated problems. • Need for highly trained programmers anfd computer systems to produce information that managers requested.

13. Decision Support Systems Computer-based Allows Interaction with Data Uses various methods of analysis Integrates, analyzes interprets information

14. Decision support systems • Decision support systems (DSS)—a computer-based procedure allowing managers to interact directly with data using a variety of methods to integrate, analyze, and interpret information. • A. MkIS and DSS both rely on a wide variety of data. • B. They are both able to analyze data. • C. Unlike a MkIS, a manager using DSS can interact directly with data to produce customized reports. • D. A DSS complements instead of replaces an MkIS by adding speed and flexibility to the research process. • E. DSS has cost as a major drawback, which currently limits its use to large firms.

15. Decision Support Systems

16. Data Assembled data pertinent to a particular topic DATABASE Enormous collection of data from external or internal sources compiled by a firm DATA WAREHOUSE Sophisticated techniques capable of identifying patterns and relationships in masses of data DATA MINING

17. Major data sources • 1. Internal vs. external—sales force, sales records, manufacturing, etc. vs. research suppliers, in-house proprietary collection. • 2. Continuous flow vs. occasional or periodic suppliers. • 3. Retail scanners—electronic devices at retail checkouts that read bar codes and provide relevant information with regard to individual and combined purchases. • 4. Single-source data—data which can be traced to individual households or purchasing units.

18. Marketing Research Projects

19. Marketing Research Procedure

20. Step four: plan and conduct the formal investigation. • Sources of information. • a. Primary data—new data gathered specifically for the purposes at hand. • b. Secondary data—data already gathered for some other purpose and available for present use. • Sources of secondary data. • a. Records and reports from within the firm. • b. Libraries. • c. All three levels of government. • d. Trade, professional, and business associations. • e. Private research firms. • f. Advertising media. • g. University research programs

21. Inside the company Sources of Information SECONDARY DATA Outside the company

22. Sources of primary data • a. Firm’s sales force. • b. Firm’s suppliers. • c. Current or potential customers

23. Sources of Information Cookies PRIMARY DATA Scanner Observation Personal Observation Laboratory Experimental Field Test Market Mail Telephone Survey Face to Face Internet

24. Select a primary data-gathering method • Observation method—collecting data by observing a person’s actions or market events. • Survey method—data gathered through face-to-face, telephone interviews, or mail surveys. • Experimental method—using data gathered to determine the results of changing one variable in a situation while holding all others constant. These include laboratory experiments, field experiments, and test marketing.

25. Characteristics of survey methods in general • a. The information is first-hand. • b. Error bias may originate in survey construction and the interview process. • c. Surveys may be expensive, time consuming, and involve problems with respondents (non-response, inability to respond, misleading responses, etc.). • i.Characteristics of personal interviews. • a. Provide the most in-depth information and flexibility. • b. Surrounding context adds information and a basis for interpretation. • c. Respondents may not always be typical of the population of focus. • d. Shopping mall intercept and focus groups are types of personal interviews

26. ii.Characteristics of telephone surveys. • a. Save time. • b. Are relatively low cost and easy to administer. • c. Require survey instrument to be short. • İii.Characteristics of mail surveys. • a. Very economical and allows wide geographic spread. • b. Lack of interviewer bias. • c. Good mailing lists may be hard to obtain. • d. Low response rates and low level of control. • e. A similar but alternate medium is the Internet; its use in research data collection is increasing.

27. Characteristics of observation methods. • a. May be collected personally or mechanically. • b. Data collected is highly accurate. • c. Data interpretation can be highly subjective and/or biased.

28. Characteristics of experimental methods • a. May be done in the lab or the field. • b. Levels of environmental control vary. • Test marketing duplicates real world market conditions to measure consumer responses to variations in marketing tactics; however they are expensive and public. • Simulated test markets have lower costs, higher control, and are more proprietary; limits inclusion of some real world variables and responses.

29. Data-gathering form Survey Question wording Response format Questionnaire layout Pretesting Representative Sample Random samples Convenience samples

30. Marketing Research Procedure • Analyse the Data and Present a Report. • Conduct a Follow-up.