Learning Objectives

Explain the importance of

information in gaining insights about
the marketplace and customers.
Define the marketing information
system and discuss its parts.
Outline the steps in the marketing
research process.

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 Learning Objectives
Explain how companies analyze and
use marketing information.
Discuss the special issues some
marketing researchers face,
including public policy and ethics
issues.

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 Marketing Information
Consumer needs and motives for
buying are difficult to determine.
Required by companies to obtain
customer and market insights
Generated in great quantities with
the help of information technology
and online sources

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 Customer Insight
Fresh understanding of customers and
the market derived from marketing
information
Becomes the basis for creating customer
value and relationship
Used to develop a competitive advantage
Customer insights teamsFormed to
obtain real value of marketing research
and marketing information

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 Marketing Information
System (MIS)
Consists of people and procedures
to:
Assess information needs
Develop the needed information
Help decision makers to use the
information to generate and validate
actionable customer and market
insights

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Figure 4.1 - The Marketing
Information System

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 Assessing Marketing
Information Needs
A good MIS balances the information
users would like to have against:
What they really need
What is feasible to offer
Obtaining, analyzing, storing, and
delivering information using an MIS is
expensive.
Firms must decide whether the value of the
insights gained from more information is
worth the cost.
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 Developing Marketing
Information
Information needed can be obtained
from:
Internal databases
Competitive marketing intelligence
Marketing research

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 Internal Databases
Electronic collections of consumer and
market information within a companys
network
Advantage: Information can be
accessed quickly and economically.
Disadvantages:
Data ages rapidly and may be incomplete.
Maintenance and storage of data is
expensive.

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Competitive Marketing
Intelligence

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 Competitive Marketing
Intelligence
Advantages:
Gain insights about consumer opinions and
their association with the brand
Gain early warnings of competitor
strategies, new product launches or
changing markets, and potential
competitive strengths and weaknesses
Help firms to protect their own information
Disadvantage:
May involve ethical issues
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 Marketing Research
Systematic design, collection,
analysis, and reporting of data
Relevant to a specific marketing
situation facing an organization
Approaches followed by firms:
Use own research departments
Hire outside research specialists
Purchase data collected by outside firms

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Figure 4.2 - The Marketing
Research Process

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Defining the Problem and
Research Objectives

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 Research Plan
Outlines sources of existing data
Spells out:
Specific research approaches
Contact methods
Sampling plans
Instruments that researchers will use to
gather new data

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 Research Plan
Should be presented in a written proposal
Topics covered in a research plan:
Management problems and research
objectives
Information to be obtained
How the results will help managements
decision making
Estimated research costs
Type of data required

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 Secondary Data
Information that already exists
Collected for another purpose
Sources:
Companys internal database
Purchased from outside suppliers
Commercial online databases
Internet search engines

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Secondary Data

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 Primary Data
Information collected for the specific
purpose at hand

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Table 4.1 - Planning Primary
Data Collection

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Research Approaches

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 Mail, Telephone, and
Personal Interviewing
Mail questionnaires are used to collect
large amounts of information at a low
cost per respondent.
Telephone interviewing gathers
information quickly, while providing
flexibility.
Personal interviewing methods:
Individual interviewing
Group interviewing
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Table 4.2 - Strengths and
Weaknesses of Contact
Methods

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 Online Marketing Research
Data is collected through:
Internet surveys
Online focus groups: Focus group
interviewing conducted online
Web-based experiments
Tracking consumers online behavior

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Online Behavioral & Social
Tracking
and Targeting

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 Sampling Plan
Sample: Segment of the population
selected to represent the population as
a whole
Decisions required for sampling design:
Sampling unit - People to be studied
Sample size - Number of people to be
studied
Sampling procedure - Method of choosing
the people to be studied

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 Types of Samples
Probability samples:
Simple random sample
Stratified random sample
Cluster (area) sample
Nonprobability samples:
Convenience sample
Judgment sample
Quota sample

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 Research Instruments
Questionnaires can be administered
in person, by phone, by e-mail, or
online.
Closed-end questions
Open-end questions
Mechanical instruments include:
People meters
Checkout scanners
Neuromarketing
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Implementing the Research
Plan

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 Interpreting and Reporting
Findings
Responsibilities of the market researcher:
Interpret the findings
Draw conclusions
Report findings to management
Responsibilities of managers and
researchers:
Work together closely when interpreting
research results
Share responsibility for the research process
and resulting decisions
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 Customer Relationship
Management (CRM)
Managing detailed information about
individual customers
Carefully managing customer touch points
to maximize customer loyalty
Consists of software and analytical tools
that:
Integrate customer information from all
sources
Analyze data in depth
Apply the results

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 Distributing and Using
Marketing Information
MIS must make information readily
available for decision-making.
Routine information for decision making
Non-routine information for special
situations
Intranets and extranets facilitate the
information sharing process.

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Marketing Research in Small
Businesses and Nonprofit
Organizations

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 International Marketing
Research
The problems faced include:
Dealing with diverse markets
Finding good secondary data in foreign
markets
Developing good samples
Reaching respondents
Handling differences in culture, language,
and attitudes toward marketing research
The cost of research is high but the cost
of not doing it is higher.
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 Intrusions on Consumer
Privacy
Failure to address privacy issues results
in:
Angry, less cooperative consumers
Increased government intervention
Best approach for researchers:
Asking only for the information they need
Using the information responsibly to provide
customer value
Avoiding sharing the information without the
customers permission
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Misuse of Research Findings
Few advertisers rig their research
designs or deliberately misrepresent
the findings.
Solutions:
Development of codes of research
ethics and standards of conduct
Companies must accept responsibility
to protect consumers best interests
and their own.
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