Marketing: An Introduction Armstrong, Kotler

1
Marketing An Introduction Armstrong, Kotler

• Chapter Four
• Managing Marketing information

2
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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Managing Marketing information

• 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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Managing Marketing information

• Marketing Information System
• A companys 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. Figure 1

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The Marketing Information System
Figure 6.1
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The Marketing Information System

• Data Gathering Techniques
• Internal data
• Marketing intelligence
• Marketing research

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Developing Information

• Internal data
• Information collected, stored within the
  organization as database. Accounting department
  prepare financial statements, costs, sales, and
  cash flows.

• Marketing intelligence
• Systematic collection and analysis Publicly
  available information About competitors and
  market developments. To improve strategic
  decision making, assess and track competitors
  actions, and provide early warning.

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The Marketing Research Process

• Marketing research
• Systematic design, collection, analysis, and
  reporting Data relevant to a specific marketing
  situation Facing the organization

• Multi-step process Can be done by company
  personnel or contracted to outside companies

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Market Research Process - 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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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.
Types of Marketing Research
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• Developing the research plan
• Secondary data Internet database, government
• Primary data data collection resources are
• 1- research approaches
• 2- contact methods
• 3- sampling plan
• 4- research instruments.

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Research approaches

• 1 - Observational research gathering primary
  data by observing relevant people, actions, and
  situations.
• 2- Survey (descriptive) research gathering
  data by asking people questions, about their
  knowledge, attitude, preferences, and buying
  behavior. Single-Source data systems Starts with
  survey, then select group of customers who agree
  to participate in ongoing research.
• 3- Experimental research gathering primary
  data by selecting matched groups of subjects,
  giving them different treatments, then checking
  the groups responses.

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Contact methods

• Data collected by mail, telephone, personal
  interview or online. One of the interview
  technique called
• Focus group interviewing that invite 6 to
  10 customers, with trained interviewer and talk
  openly about products, services. Now marketing
  researcher are collecting primary data through
  the Internet. .etc. Table 1

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Contact MethodsTable 1
Mail Telephone Personal Online
Flexibility Poor Good Excellent Good
Quantity of data collected Good Fair Excellent Good
Control of interviewer effect Excellent Fair Poor Fair
Control of sample Fair Excellent Fair Poor
Speed of data collection Poor Excellent Good Excellent
Response rate Poor Good Good Good
Cost Good Fair Poor Excellent
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Sampling Plan

• Segment of the population selected for marketing
  research represent the population (of interest)
  as a whole
• Types of Samples
• Probability sample
• Simple random sample equal chance of selection
• Stratified random sample people divided into
  groups, age, gender
• Cluster (area) sample groups divided in groups,
  such as blocks, and draw samples for those
  blocks.

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Sampling Plan

• Non-probability sample
• Convenience sample The researcher selects the
  easiest population member to obtain samples.
• Judgment sample the researcher uses hi/her
  judgment to select population members.
• Quota sample The researcher finds and interviews
  a number of people in each category.

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Research Instruments

• Questionnaire collecting primary data through
  asking people by phone, interview, online
  questions, closed end questions, open-end
  questions.
• Mechanical Supermarket scanners, Eye cameras.

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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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Customer Relationship Management

• Customer relationship management (CRM)
• Software that gathers, stores and analyzes
  individual customer information.
• All departments view the customer through a
  single window.

• Purpose is to make better use of the information
  the company already has
• Goal is to provide higher levels of customer
  service

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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.