CHAPTER 5:Marketing Information & Research

Mrs. Piotrowski

Principles of Marketing 1

UNDERSTANDING THE NEED FOR MARKET INFORMATION

SECTION 1:

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Identify 3 products you buy often.

Why do you buy each of these products?

What needs do they satisfy?

What factors are important in your purchasing decision?

How does your consumer behavior

compare to a classmate’s?

How could this information be useful to

marketers?

SOLVE.

Starting with Information

• Consumer Differences – Businesses must determine the similarities and differences among market segments and decide how to meet their unique needs.

• Expanding Choices – Customers are more informed and have more choices, so businesses need to have an understanding of this.

Most businesses today recognize that a consumer will not buy a product simply because they produce it.

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Starting with Information

• Competition – Gathering information about competitors’ products and marketing activities will help businesses be more competitive.

• The Global Marketplace – Businesses must gather information about all countries it serves and competes with.

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Types of Information Needed Many marketing decisions are made with too little information or the wrong types of information.

Consumers• Age• Gender• Income• Education• Family size• Occupation• Attitudes• Primary needs• Purchase frequency• Brand preferences• Information needs• Media preferences• Shopping behavior

Marketing Mix• Basic products• Product features• Services• Product planning • Guarantees• Customer service• Product price• Credit choices• Discounts• Location & method of sale• Distribution choice• Promotion & sales methods• Promotional message• Promotional media

Business Environment

• Type of competition• Competitor’s strengths• Competitor’s strategies• Economic conditions• Government regulations• New technology• Consumer protection• Ethical issues• Tax policies• Proposed laws• International markets

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FINDING AND MANAGING MARKETING INFORMATION

SECTION 2:

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Imagine you were running a concession stand at a school event.

What market information would you

need to start this business?

Identify 3 sources you could use to located needed

information.

SOLVE.

Sources of Market Information

• Business people follow a process when determining information needs:1. Identify the types of information needed.

2. Determine the available sources of each type of information.

3. Evaluate each source to determine if it meets the organization’s needs.

4. Select the sources that best meet the identified needs.

5. Enter the information into a marketing information system.

For most decisions, there is usually more than one information source.

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Sources of Market Information

• Internal information is information developed from activities that occur within the organization:– Customer records and sales information– Production and operations reports– Performance information

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Sources of Market Information

• External information provides an understanding of factors outside the organization:– Government reports– Trade and professional organizations– Business publications– Commercial data and information services

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Marketing Information Systems

A marketing information system (MkIS) is an organized method of collecting, storing,

analyzing, and retrieving information to improve effectiveness and efficiency of

marketing decisions.

With all of the information needed, businesses could spend most of their time gathering and studying information.

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Designing a MkISINPUT: The

information that goes into the system that is needed for decision making.

STORAGE: The

resources used to maintain

information so that it

can be used when

needed.

ANALYSIS:

The process

of

summarizing,

combining, or

comparing

information

to make

decisions.

OUTPUT:The result of analysis

given to decision makers.

DECISION

MAKING

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USING MARKETING RESEARCH

SECTION 3:

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Imagine the current facilities in our school are no longer adequate to serve the number of students we have.

Think of alternatives for handling more students in the building…how can the school accommodate this?

How could you use marketing research

to help gather information?

SOLVE.

Seeing the Problem ClearlyMarketing research is a procedure designed to identify

solutions to a specific marketing problem through the use of scientific problem solving.

1. Define the problem.

2. Analyze the situation.

3. Develop a data-collection procedure.

4. Gather & study information.

5. Propose a solution. 16

Types of Data

• Primary Data: Information collected for the first time to solve the problem being studied.

• Secondary Data: Information already collected for another purpose that can be used to solve the current problem.

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Gather Information

1. Select the participants:– All of the people in the group the company

wants to study are known as the population.– A smaller group selected from the population is

a sample.

2. Collect the data.

3. Analyze the data:– Numerical Data vs. Non-Numerical Data

4. Prepare results.

No matter what method is used to gather the information, procedures must be carefully developed and followed to ensure scientific results.

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Propose a Solution

• Research Reports:– The people preparing the report must know who will be

receiving and studying the report.– The report must clearly describe the purpose of the

study and procedures used.• Presenting Research Results:

– Can be written or oral, but usually includes visuals and recommendations for solutions.

• When to Use Marketing Research:– How much risk is the business facing from the problem

being studied?– How much time and money will be required to gather

the information?

The purpose of marketing research is to identify strategies for a company to follow in implementing and improving marketing activities.

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COLLECTING PRIMARY DATA

SECTION 4:

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Write down an example of a time when you participated in the collection of data.

How did you feel as a participant?

Do you wish they’d done something

differently?

What does this tell you about

appropriate data collection

procedures and accuracy?

SOLVE.

Conducting Surveys• A survey is a planned set of questions to

which individuals or groups of people respond.

• Most surveys use closed-ended questions:– Yes or no– Agree or disagree– Select a, b, c, or d– Rate on a scale of 1-10

• Some use open-ended questions:– What are the most important features of this product?– How does the durability of Brand A compare to Brand

B?22

Making Observations

• Observation collects information by recording actions without interacting or communicating with the participant.– Bar code scanners at checkout counters track

quantities purchased, timing of purchases, coupons used, type of payment used, and what items were purchased together.

– Eye-tracking photography examines the eye movement of customers as they look at store displays to see where they look first, how long they look at a particular section, and how they search the display. 23

Performing Experiments• Experiments are carefully designed and

controlled situations in which all important factors are the same except the one being studied.– These are not used as often as surveys or

observations in marketing research.– EX: changing one piece of the marketing mix to

see if it changes sales such as price or color.

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Performing Experiments• Test markets are specific cities or geographic

areas in which marketing experiments are conducted.• Big transient cities such as Atlanta is a test

market for many businesses.

• Simulations are experiments where researchers create the situation to be studied.• Ex. Fisher Price brings kids into their “play

room” and studies their actions.

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