Download What is Marketing?

Marketing: An Introduction
Second Canadian Edition
Armstrong, Kotler, Cunningham, Mitchell and Buchwitz
Chapter Five
Managing Marketing Information
5-1
Copyright © 2007 Pearson Education Canada
Looking Ahead
• Explain the importance of information and the
to understanding of the marketplace.
• Define the marketing information system and
discuss its parts.
• Outline the steps in the marketing research
process.
• Explain how companies analyze and
distribute marketing information.
• Discuss the issues marketing researchers
face, including public policy and ethics
issues.
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The Importance of Information
• Companies need information about their:
– Customer needs.
– Marketing environment.
– Competition.
• Marketing managers do not need more
information, they need better information.
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Marketing Information System
• A company’s skills, processes and tools
for gathering, analyzing and using
environmental information.
• Information critical to react the marketing
environment.
• Challenge is to get better, actionable
information.
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Assessing Information Needs
• A good MIS balances the information
users would like against what they really
need and what is feasible to offer.
• Sometimes the company cannot provide
the needed information because it is not
available or due to MIS limitations.
• Have to decide whether the benefits of
more information are worth the costs.
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Data Gathering Techniques
• Internal data.
– Internal information that the various
departments already have.
• Marketing intelligence.
– Information that can be gathered from
public or legally available sources.
• Marketing research.
– Specific information gathered to answer a
specific question.
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Market Research Process
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Define the problem.
Set the research objectives.
Develop a research plan.
Implement the marketing research plan.
Analyze and interpret the data.
Report the findings.
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Types of Marketing Research
• Exploratory research.
– To gather preliminary information.
– Primary or secondary data.
• Descriptive research.
– To describe marketing situations or markets.
– Surveys, observational studies.
• Causal research.
– To experiment with cause-and-effect
relationships.
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Develop the Research Plan
• Includes:
– Determining the exact information needed.
– Developing a plan for gathering it efficiently.
– Presenting the written plan to management.
• Outlines:
– Sources of existing data.
– Specific research approaches.
– Contact methods.
– Sampling plans.
– Instruments for data collection.
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Types of Data
• Secondary.
– Data or information that has been gathered
and published by other parties.
– Publications, websites, directories.
• Primary.
– Data or information that is gathered directly
from the subjects of the research.
– Interviews, focus groups, observation,
surveys, experiments.
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Gather Secondary Data
• Information that already exists
somewhere.
– Internal databases.
– Commercial data services.
– Government sources.
• Available more quickly and at a lower
cost than primary data.
• Must be relevant, accurate, current and
impartial.
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Sources of Secondary Data
• Government publications.
– Statistics Canada, Strategis.
• Periodicals and books.
– Trade directories, indexes and industry surveys.
• Commercial data services.
– Collections of business research articles.
– Industry and scanner data.
• International data.
– Euromonitor, United Nations Statistical Yearbook
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Sources of Secondary Data
• Internet data sources
– Huge amount of data available online, not
all of it trustworthy.
– Search engines.
– Industry websites.
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www.environics.ca
www.census.gov
www.demographics.com
www.canoe.ca
www.ecola.com/news
www.strategymag.com
www.brint.com
Copyright © 2007 Pearson Education Canada
Primary Data Collection
• Consists of information collected for the
specific purpose at hand.
• Must be relevant, accurate, current and
unbiased.
• Must determine:
– Research approach.
– Contact methods.
– Sampling plan.
– Research instruments.
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Observational Research
• The gathering of primary data by
observing relevant people, actions and
situations.
• Ethnographic research.
– Observation in “natural environment.”
• Mechanical observation.
– People meters.
– Checkout scanners.
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Survey Research
• Most widely used method for primary
data collection.
• Approach best suited for gathering
descriptive information.
• Can gather information about people’s
knowledge, attitudes, preferences or
buying behaviour.
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Experimental Research
• Tries to explain cause-and-effect
relationships.
• Involves:
– Selecting matched groups of subjects.
– Giving different treatments.
– Controlling unrelated factors.
– Checking differences in group responses.
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Sampling
• Sample.
– a segment of the population selected to
represent the population as a whole.
• Sample unit.
– Who is to be surveyed?
• Sample size.
– How many people should be surveyed?
• Sampling procedure.
– How should those surveyed be chosen?
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Primary Research Instruments
• Mechanical.
– People meters.
– Supermarket
scanners.
– Galvanometer.
– Eye cameras.
– Computers.
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• Questionnaires.
– What questions to ask.
– Form of each question.
• Closed-ended.
• Open-ended.
– Wording.
– Ordering.
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Implement the Plan
• Collecting the data.
– Data collection most expensive and prone
to error
• Processing the data.
• Analyzing the data.
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Interpret and Report Findings
• Managers and researchers must work
together when interpreting research
results.
• Step One: Interpret the finding.
• Step Two: Draw conclusions.
• Step Three: Report to management.
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CRM Systems
• Customer Relationship Management.
– Software that gathers, stores and analyzes
individual customer information.
– All departments view the customer through
a single “window.”
– Correlates disparate information to find
marketing opportunities.
– Provides an integrated view of the company
to the customer.
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CRM Systems
• Many companies utilize CRM.
– Capture customer information from all
sources
– Analyze it in depth
– Apply the results to build stronger
relationships.
• Companies look for customer touch
points.
• Data warehouses/data mining to find
information out about customers.
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Using Marketing Information
• Information must be distributed to the
right people at the right time.
– Routine information for decision making.
– Non-routine information for special
situations.
– Intranets – protected information websites
for internal people.
– Extranets – protected information websites
for partners and external stakeholders.
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Research Issues
• Small businesses and non-profit
organizations lack research resources.
• International marketing information can
be difficult and costly to obtain.
• Competitive information often difficult to
obtain ethically.
• Public policy issues.
– Intrusions on consumer privacy.
– Misuse of research findings.
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Looking Back
• Explain the importance of information and the
to understanding of the marketplace.
• Define the marketing information system and
discuss its parts.
• Outline the steps in the marketing research
process.
• Explain how companies analyze and
distribute marketing information.
• Discuss the issues marketing researchers
face, including public policy and ethics
issues.
5-26
Copyright © 2007 Pearson Education Canada