i t ’s good and good for you Chapter Four Managing Marketing Information to Gain Customer Insights Copyright © 2012 Pearson Education Chapter 4- slide 1 Chapter Goals 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 about competitors Ethics enters into the performance of marketing research Uses of Marketing Research Markets Market Segments Marketing Mix Expectations Satisfaction Competition Marketing Research The development, interpretation, and communication of decision-oriented information to be used in all phases of the marketing process. Marketing Research Marketing research—the development, interpretation, and communication of decision-oriented information to be used in all phases of the marketing process. It It influences planning, implementation, and evaluation. focuses not only on information gathering, but on analysis and implications as well. Scope of Marketing Research Activities Syndicated Services Decision Support System Marketing Information System Marketing Research Activities Marketing Research Project Marketing Information Systems On-going, organized procedure to generate, analyze, disseminate, store, and retrieve information for use in making marketing decisions. Marketing Information Systems 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. 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. 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. 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 Need is vot suited to the solution of unanticipated problems. for highly trained programmers anfd computer systems to produce information that managers requested. Decision Support Systems Computer-based Allows Interaction with Data Uses various methods of analysis Integrates, analyzes interprets information 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. Decision Support Systems Data DATABASE DATA WAREHOUSE DATA MINING Assembled data pertinent to a particular topic Enormous collection of data from external or internal sources compiled by a firm Sophisticated techniques capable of identifying patterns and relationships in masses of data 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. Marketing Research Projects Marketing Research Procedure Step four: plan and conduct the formal investigation. Sources a. b. Primary data—new data gathered specifically for the purposes at hand. Secondary data—data already gathered for some other purpose and available for present use. Sources a. b. c. d. e. f. g. of information. of secondary data. Records and reports from within the firm. Libraries. All three levels of government. Trade, professional, and business associations. Private research firms. Advertising media. University research programs Sources of Information Inside the company SECONDARY DATA Outside the company Sources of primary data a. Firm’s sales force. b. Firm’s suppliers. c. Current or potential customers Sources of Information Cookies PRIMARY DATA Scanner Observation Personal Observation Laboratory Experimental Field Test Market Mail Survey Telephone Face to Face Internet Select a primary data-gathering method method—collecting data by observing a person’s actions or market events. Observation 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. Characteristics of survey methods in general a. b. c. The information is first-hand. Error bias may originate in survey construction and the interview process. 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 ii.Characteristics of a. b. c. Save time. Are relatively low cost and easy to administer. Require survey instrument to be short. İii.Characteristics a. b. c. d. e. telephone surveys. of mail surveys. Very economical and allows wide geographic spread. Lack of interviewer bias. Good mailing lists may be hard to obtain. Low response rates and low level of control. A similar but alternate medium is the Internet; its use in research data collection is increasing. 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. Characteristics of experimental methods a. b. May be done in the lab or the field. 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. Survey Data-gathering form Question wording Response format Questionnaire layout Pretesting Representative Sample Random samples Convenience samples Marketing Research Procedure Analyse the Data and Present a Report. Conduct a Follow-up.