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4-1 PRINCIPLES OF MARKETING Eighth Edition Philip Kotler and Gary Armstrong Chapter 4 Marketing Research and Information Systems Copyright 1999 Prentice Hall The Importance of Information 4-2 Marketing Environment Customer Needs Why Information Is Needed Strategic Planning Copyright 1999 Prentice Hall Competition What is a Marketing Information System (MIS)? • Consists of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers. • Function: Assess, Develop and Distribute Information. Copyright 1999 Prentice Hall 4-3 The Marketing Information System Marketing Decisions and Communications Marketing Managers Marketing Information System Distributing Information Assessing Information Needs Developing Information Information Analysis Internal Data Marketing Research Marketing Intelligence Marketing Environment Copyright 1999 Prentice Hall 4-4 Functions of a MIS: Assessing Information Needs Conduct Interviews and Determine What Information is Desired, Needed, and Feasible to Obtain. Monitors Environment for Information Managers Should Have Examine Cost/ Benefit of Desired Information Copyright 1999 Prentice Hall 4-5 Functions of a MIS: Developing Information Obtains Needed Information for Marketing Managers From the Following Sources Internal Data Collection of Information from Data Sources Within the Company From: Accounting, Sales Force, Marketing, Manufacturing, Sales Marketing Intelligence Collection and Analysis of Publicly Available Information about Competitors and the Marketing Environment From: Employees, Suppliers, Customers, Competitors, Marketing Research Companies Marketing Research Design, Collection, Analysis, and Reporting of Data about a Situation Copyright 1999 Prentice Hall 4-6 Functions of a MIS: Distributing Information Information Must be Distributed to the Right Managers at the Right Time. Distributes Routine Information for Decision Making Distributes Nonroutine Information for Special Situations Copyright 1999 Prentice Hall 4-7 The Marketing Research Process Defining the Problem and the Research Objectives Developing the Research Plan Implementing the Research Plan Interpreting and Reporting the Findings Copyright 1999 Prentice Hall 4-8 Marketing Research Process 4-9 Step 1. Defining the Problem & Research Objectives Exploratory Research •Gathers preliminary information that will help define the problem and suggest hypotheses. Descriptive Research •Describes things as consumers’ attitudes and demographics or market potential for a product. Causal Research •Test hypotheses about causeand-effect relationships. Copyright 1999 Prentice Hall Marketing Research Process Step 2. Develop the Research Plan Determine the Specific Information Needed Primary Secondary Information collected for the specific purpose at hand. Information that has been previously collected. Both Must Be: Relevant Accurate Current Impartial Copyright 1999 Prentice Hall 4-10 Primary Data Collection Process 4-11 Step 1. Research Approaches Observational Research Gathering data by observing people, actions and situations (Exploratory) Survey Research Asking individuals about attitudes, preferences or buying behaviors (Descriptive) Experimental Research Using groups of people to determine cause-and-effect relationships (Causal) Copyright 1999 Prentice Hall Primary Data Collection Process Step 2. Contact Methods Contact Methods M a il T e le p h o n e P e rs o n a l O n lin e F le x ib ility Poor G ood E x c e lle n t G ood Q u a n tity o f D a ta C o lle c te d C o n tro l o f In te rv ie w e r C o n tro l o f S a m p le S p e e d o f D a ta C o lle c tio n R e s p o n s e R a te G ood F a ir E x c e lle n t G ood E x c e lle n t F a ir Poor F a ir F a ir E x c e lle n t F a ir Poor Poor E x c e lle n t G ood E x c e lle n t F a ir G ood G ood G ood Cost G ood F a ir Poor E x c e lle n t Copyright 1999 Prentice Hall 4-12 Primary Data Collection Process Step 3. Developing a Sampling Plan Who is to be surveyed? Probability or Non-probability sampling? Sample representative segment of the population How should the sample be chosen? Copyright 1999 Prentice Hall How many should be surveyed? 4-13 Primary Data Collection Process 4-14 Step 4. Research Instruments Research Instruments Questionnaire • What to ask? • Form of each question? • Wording? • Ordering? Mechanical Devices • People Meters • Grocery Scanners • Galvanometer • Tachistoscope Copyright 1999 Prentice Hall Marketing Research Process Step 3. Implementing the Research Plan Collection of Data Processing of Data Analyzing the Data Copyright 1999 Prentice Hall Research Plan 4-15 Marketing Research Process Step 4. Interpreting and Reporting Findings Interpret the Findings Draw Conclusions Report to Management Copyright 1999 Prentice Hall 4-16