Armstrong Mai08 Basic Ppt 04

7/30/2019 Armstrong Mai08 Basic Ppt 04

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Chapter FourManaging Marketing

Information


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Roadmap: Previewing the Concepts

Copyright 2007, Prentice Hall, Inc. 4-2

1. Explain the importance of information tothe company and its understanding of themarketplace.

2. Define the marketing information systemand discuss its parts.

3. Outline the steps in the marketing researchprocess.

4. Explain how companies analyze anddistribute marketing information.

5. Discuss the special issues some marketingresearchers face, including public policy

and ethics issues.


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The Situation Firm began by offering

classically styled, high-

quality leather handbags. Women needed only two

purses in brown or black.

Mid-1990s: sales slowed.

Consumer preferenceschanged as more womenentered the workforce.

Designer bags madeCoachs look plain.

Coach

Research Revamps Strategy

Case Study

Researchs Role Method: Interviews 14,000

women annually. Watches

trends for market voids. Key research findings:

1) desire for fashionpizzazz in handbags.2) Usage voids.

New products are createdto fill voids (wristlets, fabricbags, Signature line, etc.).

Sales and earnings grow.


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The Importance of MarketingInformation

Companies need information about

their:

Customers needs Marketing environment

Competition

Marketing managers do not need moreinformation, they need better

information.


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Marketing Information System

An MIS consists of people, equipment,and procedures to gather, sort, analyze,

evaluate, and distribute needed, timely,and accurate information to marketingdecision makers.

The MIS helps managers to:

1. Assess information needs

2. Develop needed information

3. Distribute information


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Assessing Information Needs

A good MIS balances the informationusers would like against what they

really need and what is feasible to offer. Sometimes the company cannot

provide the needed informationbecause it is not available or due to MIS

limitations. Have to decide whether the benefits of

more information are worth the costs.


7/26Copyright 2007, Prentice Hall, Inc. 4-7

Developing MarketingInformation

Internal Databases: Electronic collections ofinformation obtained from data sourceswithin the company.

Marketing Intelligence: Systematic collectionand analysis of publicly available informationabout competitors and developments in themarketing environment.

Marketing Research: Systematic design,collection, analysis, and reporting of datarelevant to a specific marketing situationfacing an organization.



Defining Problem & Objectives

Exploratory Research:

Gathers preliminary information that will helpdefine the problem and suggest hypotheses.

Descriptive Research:

Describes things (e.g., market potential for aproduct, demographics and attitudes).

Causal Research:Tests hypotheses about cause-and-effect

relationships.



The Marketing Research Process

Defining the problem and research

objectives

Developing the research plan

Implementing the research plan

Interpreting and reporting the findings



Developing 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



Gathering Secondary Data

Information that already existssomewhere:

Internal databases Commercial data services

Government sources

Available more quickly and at a lowercost than primary data.

Must be relevant, accurate, current, andimpartial.



Primary Data Collection

Consists of information collected forthe specific purpose at hand.

Must be relevant, accurate, current, andunbiased.

Must determine:

Research approach

Contact methods

Sampling plan

Research instruments



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



Survey Research

Most widely used method for primary

data collection.

Approach best suited for gatheringdescriptive information.

Can gather information about peoples

knowledge, attitudes, preferences, orbuying behavior.



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



Contact Methods

Mail surveys

Telephone surveys

Personal interviews Individual interviewing

Focus group interviewing

Online marketing research Surveys

Experiments

Focus groups



Sampling Plan

Sample: segment of the population selectedto represent the population as a whole.

Sampling requires three decisions: Who is to be surveyed?

Sampling unit

How many people should be surveyed?

Sample size

How should the people in the sample be chosen?

Sampling procedure

Probability vs. nonproability samples




Questionnaires:

What questions to ask?

Form of each question? Closed-ended

Open-ended

Wording? Ordering?




Mechanical Devices:

People meters

Supermarket scanners Galvanometer

Eye cameras



Implementing the Research Plan

Collecting the data

Most expensive phase

Subject to error

Processing the data

Check for accuracy

Code for analysis

Analyzing the data

Tabulate results



Interpreting and ReportingFindings

Interpret the findings

Draw conclusions

Report to management

Present findings and conclusions that willbe most helpful to decision making.



Customer RelationshipManagement (CRM)

Many companies utilize CRM.

Capture customer information from all sources.

Analyze it in depth.

Apply the results to build stronger relationships.

Companies look for customertouch points.

CRM analysts develop data warehouses and

use data mining techniques to findinformation out about customers.



Customer RelationshipManagement (CRM)

Benefits of CRM:

Offer better customer service and develop

deeper customer relationships. Pinpoint and target high-value customers

more effectively.

Better able to cross-sell products anddevelop offers tailored to customers.


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Distributing and UsingMarketing Information

Routine information for decision

making

Nonroutine information for specialsituations

Intranets

Extranets


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Other Marketing ResearchConsiderations

Marketing research in small businesses

and nonprofit organizations

International marketing research Public policy and ethics in marketing

research

Consumer privacy Misuse of research findings


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Rest Stop:Reviewing the Concepts

1. Explain the importance of information tothe company and its understanding of themarketplace.

2. Define the marketing information systemand discuss its parts.

3. Outline the steps in the marketingresearch process.

4. Explain how companies analyze anddistribute marketing information.

5. Discuss the special issues somemarketing researchers face, including

public policy and ethics issues

Armstrong Mai08 Basic Ppt 04

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