CH04 - Managing Marketing Information

8/12/2019 CH04 - Managing Marketing Information

1/53

Managing MarketingInformation

Chapter 4


2/53

2

Learning Goals

1. Explain the importance of information tothe company

2. Define the marketing information system

3. Outline the steps in the market researchprocess

4. Explain how companies analyze anddistribute information

5. Discuss special issues facing marketresearchers


3/53

3

Learning Goals

1. Explain the importance of information tothe company

2. Define the marketing information system

3. Outline the steps in the market researchprocess


5. Discuss special issues facing marketresearchers


4/53

Case StudyNew Coke

New Coke productfailure

Poor sales

Over 1,500 phone callsa day from angrycustomers

Old coke returns in only3 months

Due largely to research

failure

Tested on taste onlynotintangibles

Decisions based on 60%ratings

All for $4 million!

4 - 4


5/53

5

Learning Goals

1. Explain the importance of information to thecompany

2. Define the marketing information system3. Outline the steps in the market research

process

4. Explain how companies analyze and distribute

information5. Discuss special issues facing market

researchers


6/53

6

Marketing Information System

Marketing Information System (MIS)

Consists of people, equipment, and

procedures to gather, sort, analyze, evaluate,and distribute needed, timely, and accurateinformation to marketing decision makers.


7/53



8/53

8


Interacts with information users to assessinformation

Develops needed information from internal andexternal sources

Helps users analyze information for marketingdecisions

Distributes the marketing information and helpsmanagers use it for decision making


9/53

PeopleSoft marketsdatabases to

optimizecustomer

relationship

management


10/53

10

Assessing Marketing Information

Needs The MIS serves company managers as

well as external partners

The MIS must balance needs againstfeasibility:

Not all information can be obtained

Obtaining, processing, sorting, and deliveringinformation is costly


11/53

11

Developing Marketing Information

Internal data is gathered viacustomer databases,financial records, and

operations reports

Advantages includequick/easy access toinformation

Disadvantages stem from theincompleteness orinappropriateness of data toa particular situation

Internal data

Marketing

intelligence

Marketing research

Sources of Info


12/53

This ad istargeted tobusinesses toreinforce theimportance of agood internaldata for an MIS

system


13/53

13


Marketing intelligenceisthe systematic collectionand analysis of publiclyavailable information about

competitors and trends inthe marketingenvironment.

Competitive intelligencegathering activities have

grown dramatically. Many sources of

competitive informationexist.

Internal data

Marketing

intelligence

Marketing research

Sources of Info


14/53

14

Sources of Competitive

Intelligence Company employees

Internet

Garbage Published information

Competitors

employees

Trade shows Benchmarking

Channel membersand key customers


15/53

15


Marketing researchis thesystematic design,collection, analysis, and

reporting of data relevantto a specific marketingsituation facing anorganization.

Internal data

Marketing

intelligence

Marketing research

Sources of Info


16/53

GreenfieldOnline runs

a teenpanel for

feedback toclients on

this

importantmarket
http://www.whaddyaknow.com/


17/53

17

Learning Goals

Explain the importance of information to thecompany

Define the marketing information system Outline the steps in the market research process

Explain how companies analyze and distributeinformation

Discuss special issues facing marketresearchers


18/53

Steps in the MarketingResearch Process


19/53

19

Step 1: Defining the problem

and research objectives The manager and the researcher must

work together. These objectives guide the entire

process.

Exploratory, descriptive, and causalresearch each fulfill differentobjectives.


20/53

20

Step 1: Defining the Problem &

Research ObjectivesExample: American Airlines Case:

American Airlines is constantly looking for new ways

to serve the needs of air travelers. One manager came up with the idea of offering phone

service to passengers.

The other managers got excited about this idea andagreed that it should be researched further.

The marketing managervolunteered to do somepreliminary research


21/53

21

Defining the Problem & Research ObjectivesExample: American Airlines Case

The marketing manager contacted a majortelecommunications company to find out the cost ofproviding this service on B-747 coast-to-coast flights.

The telecommunications company said that the device wouldcost the airline $1.000 a flight.

The airline could breakeven if it charged $25 a phone call and atleast 40 passengers made calls during the flight.

The marketing manager then asked the companysresearch managerto find out how air travelers wouldrespond to this new service.


22/53

22

Defining the Problem & Research ObjectivesExample: American Airlines Case (cont.)

American Airlines looking for new ways to serve the

needs of air travelers the idea of offering phone

service to passengers

Research Problem? to find out everything about air travelers need too b road!

to find out if enough passengers aboard a B-747 flyingbetween East Cost and West Coast would be willing to pay $25 to make a phone call so that the company would break

even on the cost of offering this service too n arrow!

Research Problemis finally defined as: Will offering an in-flight phone service create enough incremental preferenceand profit for American Airlines to justify its cost against other

possible investments that the company might make?


23/53

23

Defining the Problem & Research ObjectivesExample: American Airlines Case (cont.)

Research Object ives:

What are the main reasons that airline passengers might place phonecalls while flying?

What kinds of passengers would be the most likely to make phonecalls?

How many passengers are likely to make phone calls, given differentprice levels?

How many extra passengers might choose American because of thisnew service?

How much long-term support will this service add to AmericanAirlines image?

How important will phone service be relative to other factors? (suchas flight schedules, food quality, baggage handling, etc.)


24/53

24

Step 1: Defining the Problem &Research Objectives

ExploratoryResearch

DescriptiveResearch

CausalResearch

Test cause- and-effectrelationships.

Tests hypotheses about cause-and-effect relationships.

Sheds light on problem - suggestsolutions or new ideas.

Gathers preliminary informationthat will help define the problem

and suggest hypotheses

Ascertain magnitudesDescribes things as market

potential for a product or thedemographics and consumers

attitudes.


25/53

25

Step 2: Developing the Research

Plan Research plan is a written document which

outlines the type of problem, objectives, data

needed, and the usefulness of the results.Includes:

Secondary data: Information collected for anotherpurpose which already exists

Primary data: Information collected for the specificpurpose at hand


26/53

26

Secondary Data

Secondary data sources:Government information

Internal, commercial, and online databases

Publications

Advantages:Obtained quickly

Less expensive than primary data Disadvantages:

Information may not exist or may not be usable


27/53

27

Data that were

collected for anotherpurpose, and alreadyexist somewhere

(+)Obtained more quikcly

/ at lower cost

(-)Might not be

usable data.

Developing the Research Plan:Data Sources

both must be:

Relevant

Accurate

Current

Impartial

Data gathered fora specific purposeor for a specificresearch project


28/53

Secondary dataon female

spending haspromptedmarketingchanges atretailers

Source: Business Week


29/53

29

Evaluate the Following

when Judging Data Quality Relevance

Accuracy

Currency

Impartiality


30/53

30

Primary Data

Primary research decisions:

Research approaches

Contact methodsSampling plan

Research instruments


31/53

31

Primary Data

Observation researchusing people or machines

Discovers behavior butnot motivations Survey research

Effective for descriptiveinformation

Experimental research investigates cause and

effect relationships

Research Approach

Contact Method

Sampling Plan

Research Instrument

Decisions


32/53

32

Research Approaches

SurveyAsking individuals about attitudes,

preferences or buying behaviors

(Descript ive)

ExperimentalUsing groups of people to determinecause-and-effect relationships

(Causal)

ObservationalGathering data by observing people, actions

and situations (Exploratory)


33/53

33

Primary Data

Key Contact Methodsinclude:

Mail surveysTelephone surveysPersonal interviewing:

Individual or focusgroup

Online research

Research Approach

Contact Method

Sampling Plan

Research Instrument

Decisions


34/53

34

Strengths and Weaknesses ofContact Methods Relate to:

Flexibility

Sample control

Data quantity Cost

Interviewer effects

Speed of datacollection

Response rate


35/53

35

Strengths and Weaknesses ofContact Methods

Mail Telephone Personal Online

Flexibility Poor Good Excellent Good

Quantity of

Data Collected

Good Fair Excel lent Good

Control ofInterviewer

Excel lent Fair Poor Fair

Control ofSample

Fair Excel lent Fair Poor

Speed of DataCollection

Poor Excel lent Good Excel lent

Response Rate Fair Good Good Good

Cost Good Fair Poor Excel lent


36/53

36

Primary Data

Sample: subgroup ofpopulation from whominformation will be collected

Sampling Plan Decisions: Sampling unit Sample size Sampling procedure:

Probability samples Non-probability

samples

Research Approach

Contact Method

Sampling Plan

Research Instrument

Decisions


37/53

37

Sampling Plan

Who is to besurveyed?(Sampling

Unit)

How manyshould besurveyed?

(Sample size)

How should thesample bechosen?

(Sampl.procedure)

Probability orNon-probability

sampling?Samp le -

representativesegment of the

population


38/53

38

Sampling Plan

Probabi l ity Sampl ing Simple random sampleevery member of the population has

an equal chance of selection

Stratified random samplethe population is divided intogroups, random samples are drawn from each group

Cluster (area) samplee.g. groups such as blocks

Nonp robabi l i ty Sampl ing

Convenience sampleThe most accessible population

members are selected to obtain information Judgement sampleThe researcher uses judgement to select

population members who are good prospects for accurateinformation

Quota samplefinds and interviews a prescribed number of

people in each of several categories


39/53

39

Primary Data

Questionnaires

Include open-endedand closed-ended

questions Phrasing and question

order are key

Mechanical instruments

Nielsens people metersCheckout scanners

Eye cameras

Research Approach

Contact Method

Sampling Plan

Research Instrument

Decisions


40/53

Eye Cameras

Eye cameras track theconsumers eyes as they look at

marketing materials Applications

print adswhere do people lookfirst?

Web pagesdo people viewbanner ads?

Other web applications?

4 - 40


41/53

Discussion Question

A digital camera manufacturerwants to determine what ismost important to older (50+)camera buyers

Suggest a research approach,contact methods, samplingplan, research instruments


42/53

42

Step 3: Implementing the ResearchPlan

Data is collected by the company or anoutside firm

The data is then processed and checkedfor accuracy and completeness and codedfor analysis

Finally the data is analyzed by a variety ofstatistical methods


43/53

43

Step 4: Interpreting and Reportingthe Findings

The research interprets the finding, drawsconclusions and reports to management

Managers and researchers must worktogether to interpret results for usefuldecision making


44/53

44

American Airlines Case:Main Survey Findings

The chief reasons for using in-flight phone service are: emergencies,

urgent business deals,

mix-ups in flight times, and so on.

Making phone calls to pass the time would be rare. Mostof the phone calls would be made by businesspeople onexpense accounts.

About 5 passengers out of every 200 would make in-flight

phone calls at a price $25 a call; 12 would make calls at$15. Thus a charge of $15 would produce more revenue

(12x$15=$180) than $25 a call (5x$25=$125).

(Still, this is far below the in-flight breakeven cost of $1000)


45/53

45

American Airlines Case:Main Survey Findings (cont.)

The promotion of in-flight phone service would winAmerican about two extra passengers on each flight.

The net revenue from these two extra passengers would beabout $ 620, but this still would not help meet the breakevencost.

Offering in-flight phone service would strengthen the

publics imageof American Airlines as an innovative andprogressive airline.

However, it would cost American about $200 per flight to createthis extra goodwill.


46/53

47

Marketing Research Industry

$ 9 Billion a year is spent on marketing/advertising/publicopinion research services around the world

US spending on MR is $ 4.6 billion

About 39% of the world's spending for researchservices goes to the 10 largest MR organizations.

About 51% is held by the 25 largest worldwideorganizations

Approximately 31% of all research budget (cost) arespent on

syndicated research. 19% is spent on custom qualitative studies The remainder is spent on custom quantitative studies


47/53

48

Marketing Research Industryin Turkey

Syndicated Services(MR data gathering and reporting)AC Nielsen:Retail Measurement Services - Scan Track -

Brand Track- CATI and CAPI

AGB:Daily, weekly and monthly reports on the figures/

statistics of reseach, share, rating figures, distribution ofratings on different target groups

Biliim International Research Org.:Monthly AdvertisingExpenditure Surveys

HTP Research and Consulting Services:Household

consumption panel (weekly visits, monthly report, 12 majorcities, 300 households)

Information Resources Inc/Panel:Retail audit (Electronicdata collection) -Retail information (Supermarketinformation, Infoscan)


48/53

49

Analyzing Marketing Information

Information gathered in internal databases andthrough marketing intelligence and marketingresearch may require more analysis Statistical analysis and analytical models are often used

Managers may need help in applying the info. totheir mktg problems and decisions Market ing decis ion support sys ytems (MDSS)

coordinated collection of data, systems, tools andtechniques with supporting software and hardware, by which

an organization gathers and interprets relevant informationfrom business and environment and turns it into a basis formarketing action marketing and sales software programs decision models


49/53

50

Customer Relationship Management

Customer relationship management (CRM) softwarehelps manage information by integrating customer datafrom all sources within a company, analyzing in depth,and applying the results to build stronger relationships

Customer touch points are analyzed in order to maximizecustomer loyalty. Data warehouses Data mining techniques

...CRM is not a technology solution....is justone part of an effect ive overal l cus tom errelationship strategy...

CRM software offers many benefits and can help a firmgain a competitive advantage when used as part of a totalCRM strategy


50/53

51

Distributing and Using MarketingInformation

Information Must be Distributed

to the Right Managersat the Right Time.

Distributes NonroutineInformation for Special

Situations

Distributes RoutineInformation for

Decision MakingIntranets&extranets


51/53

Market Research Companies ACNielsen

AC Nielsen helps define the problem bypackaging data around common problems,

including customer satisfaction and newproduct sales

It develops the sampling plans, collects and

analyzes the data Firms purchase these reports as secondary

data.


52/53

Market Research Companies ACNielsen
http://www.acnielsen.com/


53/53

Learning Goals1. Explain the importance of information

to the company

2. Define the marketing information

system3. Outline the steps in the market

research process


5. Discuss special issues facing market

Date post:	03-Jun-2018
Category:	Documents
Upload:	kattyperrysherry
View:	225 times
Download:	0 times

CH04 - Managing Marketing Information

Documents