Marketing Information Marketing Information SystemsSystems

& & Marketing ResearchMarketing Research

Learning outcomes Understand the importance of accurate and

timely information to any organisation Explore the differences between marketing

and market research Understand the importance of Marketing

Information System and its parts Explain the marketing research process

IntroductionIntroduction

Marketing was the first functional area to exhibit an interest in MIS

The marketing information system has three subsystems; (1)Accounting Information System,(2) Marketing Research, and (3) Marketing Intelligence

Functional information systems: the conceptual systems should be "mirror images" of the physical systems

Marketing Information SystemMarketing Information System An organised way of continually gathering and

analysing information from every source relevant to the organisation

MIS consist of people, equipment, and procedures to gather, sort, analyse, evaluate and distribute needed information to the marketing decision makers

A MIS incorporates & combine the main aspects of marketing research into a centralised management function which will maintain a tight control on research procedures & ensure an accurate data bank of information about customers, products etc.

A MIS which can link external data with internal sources, such as sales record, customer records & competitor information will provide a strong basis for informed marketing decisions

Marketing Information System 2Marketing Information System 2

Developing Information -Involves obtaining the needed information for managers from different sources

Internal data is secondary research already available within the organisation.

This can come from -Accounting

-Sales force -Marketing -Manufacturing

Functional information systemsFunctional information systems

Marketinginformation

system

Manufacturinginformation

system

Financeinformation

system

Human resourceinformation

system

Marketingfunction

Manufacturingfunction

Financefunction

Humanresourcesfunction

Physical system of the firmPhysical system of the firm

Functional Information Systems Functional Information Systems RepresentRepresent

Functional Physical SystemsFunctional Physical Systems

Information resource

informationsystem

Information Servicesfunction

The Marketing Information The Marketing Information System (MKIS)System (MKIS)

Kotler's marketing nerve center 3 information flows

– Internal– Intelligence (from environment)– Communications (to environment)

FirmEnviron-ment

Marketing intelligence

Marketing communications

Internalmarketinginformation

Kotler’s Information FlowsKotler’s Information Flows

Marketing Information Marketing Information System (MKIS) -DefinitionSystem (MKIS) -Definition

A computer-based system that works in conjunction with other functional information systems to support the firm's management in solving problems that relate to marketing the firm's products.

An MKIS ModelAn MKIS Model Output– product– place– promotion– price– integrated mix

Database Input– AIS– marketing research– marketing intelligence

Input subsystems

Output subsystems

DD

AA

TT

AA

BB

AA

SS

EE

Accounting information

system

Marketing research

subsystem

Marketing intelligence subsystem

Internal sources

Environmental sources

Product subsystem

Place subsystem

Promotion subsystem

Price subsystem

Integrated-mix

subsystem

Users

DataData InformationInformationMarketing Information System ModelMarketing Information System Model

Accounting Information SystemAccounting Information System

Sales order data is input. AIS provides data for

– Periodic reports– Special reports– Mathematical models and knowledge-based

models

Marketing ResearchMarketing Research

Marketing research is the systematic and objective identification, collection, analysis, dissemination, and use of information for the purpose of assisting management in decision making related to the identification and solutions of problems and opportunities in marketing

Application of MRApplication of MR

Marketing research activities can be divided into four main strategic categories:– Market Analysis

» Identifying and evaluating opportunities

» Competitive Analysis

– Market Segmentation» Analyzing market segments and selecting target markets

– Marketing Strategy Design» Planning and implementing a marketing mix

– Analyzing Marketing Performance

Purposes of Marketing ResearchPurposes of Marketing Research

Identify changes in the existing market Build up a knowledge bank Improve market awareness & opportunities Reduce risk and uncertainty Support marketing mix decisions Support marketing planning and controls Improve understanding of marketing Solve ad hoc problems

Marketing and Market ResearchMarketing and Market Research

Marketing research - is the gathering of information on all activities of marketing

Market research - is the gathering of information on a particular market for a product or service

Marketing research has a wider scope than market research

Types of research informationTypes of research information

Market research - information about the market for a given product/service - likely demand

-market characteristics & trends -market share

Promotion research -effects of advertising on sales -effectiveness of promotion methods/media; sales areas

Types of research information….cont’d

Product research covers information about the proposed/improved product: -competing products -customer acceptance -test marketing of potential new users

Price research - customer perception of price/quality/value -profit margin

Distribution research -location & design of distribution centre -costs of transportation/storage

Types of researchTypes of research

Exploratory research Problem solving research Qualitative research -seeks in-depth,

open-ended and unquantifiable information describing opinions, values etc, rather than sizes and amounts in numerical form

Quantitative research -seeks structured responses that can be quantified in numerical form rather than general, open-ended information

The Research ProcessThe Research Process

1. Define the Research Problem

2. Determine Research Design and Data Sources

3. Develop Sample Design and Sample Size

4. Develop Measurement Instruments

5. Collect and Prepare Data

6. Analyze and Interpret Data

7. Communicate Results

Step 1: Identifying and Formulating Step 1: Identifying and Formulating the Research Problem/Opportunitythe Research Problem/Opportunity

Process begins with the recognition of a marketing problem or opportunity:– Marketing Problem: Set of circumstances in a market

and/or in the company that requires modified or new marketing strategy to respond in a way that will maintain or improve performance.

– Market Opportunity: Set of circumstances in a market that defines a situation in which a company can improve performance by creating modified or new marketing strategy.

Step 2: Determine the Research Step 2: Determine the Research Design and Data SourcesDesign and Data Sources

Exploratory, Descriptive, Causal Secondary vs. Primary Data Survey research Observation research Focus Groups Experiments

(explanation follows…)

Two Research MethodsTwo Research Methods

Secondary: use of existing research already done– Government– Consulting firms– Newspaper and magazine articles

Primary: creation of specific studies to answer specific questions

Primary Research MethodsPrimary Research Methods

Surveys Experimentation Observation Focus groups In-depth interviews Projective techniques Physiological

Measures

SurveysSurveys

Planned questions– Open-ended

– Closed-ended

Need large sample sizes for precise conclusions

Forms– Mail

– Telephone

– Mall Intercept

– Computer/Internet

Problem questions– Leading

– Ambiguous

– Unanswerable

– Two questions in one

– Non-exhaustive question

– Non-mutually exclusive answers

ExperimentationExperimentation

Subjects in different groups treated differently– E.g., for some, “target”

product is given better shelf space

– E.g., some get coupon Can help isolate causes Subject is biased by

questions—does not know how others are treated

ObservationObservation

Looking at consumes in the field—e.g.,– Searching for product category area– Number of products inspected and

time spent on each– Involvement of others– Behavior under limiting

circumstances (e.g., time constraints)

Focus GroupsFocus Groups

Groups of 8-12 consumers assembled

Start out talking generally about context of product

Gradually focus in on actual product

In-depth interviewsIn-depth interviews

Structured vs. unstructured interviews

Generalizing to other consumers

Biases

Projective TechniquesProjective Techniques

Measurement of attitudes consumers are unwilling to express

Consumer discusses what other consumer might think, feel, or do

Step 3: Design SampleStep 3: Design Sample

Sample: a subset from a larger population Probability vs. no probability sample Number of respondents Method of contact Management of non-response Detailed field instructions Handling of data

Step 4: Develop Measurement Step 4: Develop Measurement InstrumentsInstruments

What observation form or questionnaire will be best suit the needs of the project?

Anonymous? Confidential? Structured vs. open-ended What types of rating scales? What is the layout going to look like?

Step 5: Collect and Prepare Step 5: Collect and Prepare DataData

Editing and Coding Data Entry Data Cleansing Summarization Error Assessment Reliability/Validity

Types of dataTypes of data

Primary data -information or statistics observed and recorded or collected directly from respondents for the first time during a marketing research study

Primary information

– provides information of current needs

– but is expensive and time consuming

Types of dataTypes of data

Secondary data Information already collected or published and compiled inside or outside the organisation

Secondary information

– quick, relatively inexpensive

– check that the information is Relevant, Accurate, Current & Impartial

Using secondary data

As a backdrop to primary research eg when doing basis research in unfamiliar territory

As a substitute for research - information already available or in cases where it is not worth doing primary research

As a technique in itself - eg for collecting historic data on market trends

Step 6: Analyzing the DataStep 6: Analyzing the Data

Purpose of the analysis is to interpret and draw conclusions from the mass of collected data

Must select appropriate analytic tools to match data, research objectives, and information needs

Step 7: Communicating ResultsStep 7: Communicating Results

Researchers must remember to speak in managerial terms rather than in the terminology understood only by research specialists

Reports should outline technical details of the research project and methods in an appendix, if at all

Researchers should spell out their conclusions in clear, concise, and actionable termsBe open-minded to findings, be willing to refute

expectations, and acknowledge limitations.

Marketing Intelligence Marketing Intelligence Subsystem Subsystem

A relatively unstructured approach to gathering information about the marketing environment

Sources: -regularly scanning newspapers

-using specialised media cutting service -listening to employees -listening to intermediaries -employing a consultant.

Key concept in assessing the quality Key concept in assessing the quality of research.of research.

Validity: refers to how well a research design (and the research method and the measures or questions used) measure what it claims to measure.

Reliability : refers to the consistency of research results. In other words, if we repeat the research, or if a different interviewer undertake the fieldwork, will we get the same result

Representative ness: