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Topic 3
Marketing Research
And
Market Information System
11/04/23 Ms Seema Agarwal 2
Chapter Objectives
In this chapter, we focus on the following questions: 1. What constitutes good marketing research?2. How can marketing decision support systems help marketing
managers make better decisions?3. Describe the development of the marketing research function and its
major activities.4. Explain the steps in the marketing research process5. Distinguish between primary and secondary data and identify the
sources of each type.6. Explain the different sampling techniques used by marketing
researchers.7. Identify the methods by which marketing researchers collect primary
data. 8. Explain the challenges of conducting marketing research in global
markets.9. Outline the most important uses of computer technology in marketing
research.10. What are the components of a modern marketing information
system?
11/04/23 Ms Seema Agarwal 3
Marketing Research
The process of planning,
collecting, and analyzing data
relevant to a marketing decision.
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Defining Research
Systematic : well organized and planned
Objectivity : unbiased and unemotional
To investigate a specific problem that needs a solution.
To discover new facts to deal with the problem.
•Market Research links consumer, customer and the public to the marketers through information
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Roles of Marketing Research
DescriptiveDescriptive
DiagnosticDiagnostic
PredictivePredictive
Marketing Research Marketing Research
has three roles:has three roles:
Marketing Research Marketing Research
has three roles:has three roles:
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DiagnosticDiagnostic
PredictivePredictive
DescriptiveDescriptive
Gathering and presenting factual statements
Explaining data
Attempting to estimate the results of a planned marketing decision
Roles of Marketing Research 22
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Application 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
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When Should Marketing Research be Conducted?
Where there is a high level of uncertainty
When value of research information exceeds the cost of generating the information
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Characteristics of Good Marketing Research
1. Scientific method
Effective marketing research uses the principles of the scientific method: careful observation, formulation of hypotheses, prediction, and testing.
2. Research creativity
At its best, marketing research develops innovative ways to solve a problem: a clothing company catering to teenagers gave several young men video cameras, then used the videos for focus groups held in restaurants and other places teens frequent.
3. Multiple methods
Marketing researchers shy away from overreliance on any one method. They also recognize the value of using two or three methods to increase confidence in the results.
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4. Interdepence of models & data
Good marketing researchers recognize that data are interpreted from underlying models that guide the type of information sought
5. Value & cost of information
Cost are typically easy to determine but value of research is harder to quantify.
6. Ethical marketing
Good marketing research benefits both the sponsoring company and its customers. The misuse of marketing research can harm or annoy customers. Increasing resentment at what consumers regard as an invasion of their privacy or sales pitch has become major problem.
Characteristics of Good Marketing Research
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How Companies Obtain Marketing Research?
1. In-house marketing research department P&G ; J&J
2. Hire an outside agency that specializes in marketing research.
Marketing research firms fall into three categories:a. Syndicated-service research firms –
Organizations that regularly provide a standardized set of data to all customers. Example: Nielsen Media Research
b. Custom marketing research firms- Hired to carry out specific projects. They design the study and report
the findings.c. Specialty line marketing research firms –
A marketing research firm like field service firm that specializes in selected activities like:
Field or telephone interviews Data-processing Focus groups
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Example- Fuji Photo Film
Most companies such as Fuji Photo Film, use a combination of marketing research resources to study their industries, competitors, audiences and channel strategies.
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Management Uses of Marketing Research
Improve the quality of decision making
Trace problems
Focus on keeping existing customers
Understand the ever-changing marketplace
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Managerial Value of MR Value
Relevance Quality Timeliness Completeness
Data vs. Information vs. Knowledge
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Decisions That Draw On MRSegmentation Decisions
Which segment should be target?
What benefits are most important for each segment?
Which geographic area should be entered?
Product Decisions What product features should be included?
How should the product be positioned?
What type of package is preferred by the customers?
Distribution Decisions
What type of retailer should be used?
What should be the markup policy?
Should a few outlets be employed or many?
Advertising and Promotion Decisions
What appeals should be used in advertising?
In which vehicles should the advertising be placed?
What should the budget be?
Personal Selling Decisions
What customer types have the most potential?
How many salespeople are needed?
Price Decisions What price level should be charged?
What sales should be offered during the year?
What response should be made to a competitor’s price?
Branding Decisions What should be the name, symbol, logo and slogan that will be associated with the product?
What is the position that the brand should adopt vis-à-vis competition?
How can brand loyalty be increased?
Customer Satisfaction Decisions
How should customer satisfaction be measured?
How often should it be measured?
How should customer complaints be handled?
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Barriers Limiting the Use of Marketing Research
A narrow conception of the research Uneven caliber of researchers Poor framing of the problem Late and occasionally erroneous findings Personality and presentational differences
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The Marketing Research Process
Define the problem
Develop research plan
Collect information
Analyze information
Present findings
Makedecision
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Step 1: Define the Problem
Define the problem Specify decision alternatives State research objectives
Specify clearly :•What is to be researched (the content, the scope)?
•Why is to be researched (the decisions that are to be made)?.
“A problem well defined is half solved”.
For instance, the problem may be the failure to meet sales objectives or of falling sales. This may be due to the poor quality product or poor advertising or lack of motivation of sales force and so on. The job of the research people is to identify and define the problem. There should be a proper diagnosis which will lead to an effective solutions.
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Example: Background : American Airlines (AA) is constantly looking for new ways to
serve its passengers. Now it is reviewing many ideas like:
To supply an internet connection with limited access to web pages and email messaging;
To offer 24 channels of satellite cable TV….. The marketing research manager is assigned to investigate how passengers
would rate these services and how much extra they would be willing to pay if a charge was made.
Research Problem – “will offering an in-flight Internet services create enough incremental preferences and profits for AA to justify its cost against other possible investments Americans might make?”.
Research Objectives:- What type of passengers would respond to using an in-flight Internet service? How many passengers are likely to use an in-flight Internet service at different
price levels ? How many new passengers would choose AA? How important is Internet service to passengers relative to other services?
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Objective setting example 1
Management Problem:
Should a new product be launched?
Research Objective:
Determine consumer preference and purchase intentions for the proposed new product.
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Objective setting example 2
Management Problem:
Should the ad campaign be changed?
Research Objective:
To determine effectiveness of the current campaign.
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Objective setting example 3
Management Problem:Should the price of the brand be increased?
Research Objective:To determine the price elasticity of demand and the impact on sales and profits of various levels of price changes.
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Step 2:
A.Data
Sources
E.ContactMethods
C.Research
Instruments
D.Sampling
Plan
B.Research Approach
Develop research plan
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A.
The researcher can gather information from : Secondary data
Data previously collected for any purpose other than the one at hand.
Primary data Are freshly gathered data for a specific purpose or for a
specific research project.
Researchers usually start their investigation by examining secondary data to see whether problem can be partly or wholly solved without collecting costly
primary data.
Data Sources
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II Ai. Sources of Secondary Data
Government Agencies
Trade and Industry Associations
Marketing Research Firms
Commercial Publications
News Media
Internal Corporate Information •Search Enginesand Professional Directories
•Sites of Interest toMarketing Researchers
•Discussion Groups
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II Ai. Advantages of Secondary Data
Saves time and money if on target
Aids in determining direction for primary data collection
Pinpoints the kinds of people to approach
Serves as a basis of comparison for other data
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II Ai. Disadvantages of Secondary Data
May not be on target with the research problem
Quality and accuracy of data may pose a problem
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II Aii. Advantages of Primary Data
Answers a specific research question
Data are current
Source of data is known
Secrecy can be maintained
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II Aii. Disadvantages of Primary Data
Expensive
Quality declines if interviews are lengthy
Reluctance to participate in lengthy interviews
Disadvantages are usually offset by the
advantages of primary data!
Disadvantages are usually offset by the
advantages of primary data!
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II B. Research Approaches
ObservationObservation
Focus GroupFocus Group
SurveySurvey
Behavioral DataBehavioral Data
ExperimentationExperimentation
EthnographicEthnographic
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II Bi. Observation Research
A research method that relies
on three types of observation: people watching people
people watching an activity
machines watching people
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II Bi a. Mystery Shoppers
Researchers posing as
customers who gather
observational data about
a store and collect data about
customer/employee interactions.
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II Bii. Ethnographic Research
It is a particular observational approach that uses concepts and tools from anthropology and other social science disciplines to provide deep understanding of how people live and work.
Observes a customer or group of customers in their natural settings and then interprets their behavior based on an understanding of social and cultural characteristics of that setting.
Focuses on understanding the meaning of a product or the consumption experience in a consumer’s life
Takes time and is expensive
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II Biii. Survey Research
The most popular technique for
gathering primary data in which
a researcher interacts with
people to obtain facts, opinions,
and attitudes.
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II Biii. Research Instruments For Survey Research
Focus GroupsFocus Groups
Executive InterviewsExecutive Interviews
Mail SurveysMail Surveys
Telephone Interviews(Home and Central Location)
Telephone Interviews(Home and Central Location)
Mall Intercept InterviewsMall Intercept Interviews
In-Home InterviewsIn-Home Interviews
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Mall Intercept Interview
Survey research method that
involves interviewing people in
the common areas of shopping
malls.
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Executive Interviews
A type of survey that involves
interviewing businesspeople at
their offices concerning
industrial products
or services.
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Focus Group
Seven to ten people who
participate in a group discussion
led by a moderator.
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Advantages of On-Line Focus Groups
Speed
Cost-effectiveness
Broad geographic scope
Accessibility
Honesty
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II Bv.Scanner-Based Research
A system for gathering
information from a single group
of respondents by continuously
monitoring the advertising,
promotion, and pricing they are
exposed to and the things they
buy.
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II Bvi. Experiment
A method a researcher uses to
gather primary data. The purpose of this type of research is to develop cause-and-effect relationships by eliminating competing explanations of the observed findings.It requires formulation of hypotheses.
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IIC.Planning the Research Design
Which research Which research questions questions
must be answered?must be answered?
Which research Which research questions questions
must be answered?must be answered?
How and whenHow and whenwill data be will data be gathered?gathered?
How and whenHow and whenwill data be will data be gathered?gathered?
How willHow willthe datathe data
be analyzed?be analyzed?
How willHow willthe datathe data
be analyzed?be analyzed?
??
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II D. Research Instruments
QuestionnairesQualitative MeasuresTechnological Devices
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IIDi.Questionnaire Design
Open-EndedQuestion
Does not specify possible answers
Open-EndedQuestion
Does not specify possible answers
Closed-EndedQuestion
Specifies possible answers
Closed-EndedQuestion
Specifies possible answers
Scaled-Response Question
Scaled-Response Question
An interview question that encourages an answer phrased in
respondent’s own words.
An interview question that encourages an answer phrased in
respondent’s own words.
An interview question that asks the respondent to make a selection
from a limited list of responses.
An interview question that asks the respondent to make a selection
from a limited list of responses.
A closed-ended question designed to measure the intensity
of a respondent’s answer.
A closed-ended question designed to measure the intensity
of a respondent’s answer.
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Question Types—Dichotomous
In arranging this trip, did you contact American Airlines?
Yes No
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Question Types—Multiple Choice
With whom are you traveling on this trip?
No one
Spouse
Spouse and children
Children only
Business associates/friends/relatives
An organized tour group
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Question Types—Likert Scale
Indicate your level of agreement / disagreement with the following statement:
Small airlines generally give better service than large ones.
Strongly disagree
Disagree
Neither agree nor disagree
Agree
Strongly agree
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Question Types—Semantic Differential
A scale connecting two bipolar words. The respondent selects the point that represents his
or her opinion.
American Airlines
Large ………………………………...…….Small
Experienced………………….….Inexperienced
Modern……………………….…..Old-fashioned
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Question Types—Importance Scale
A scale that rates the importance pf some attribute.
Airline food service is _____ to me.
Extremely important
Very important
Somewhat important
Not very important
Not at all important
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Question Types—Rating Scale
A scale that rates the importance of some attribute from “poor” to “excellent”.
American Airlines’ food service is _____.
Excellent
Very good
Good
Fair
Poor
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Question Types—Intention to Buy Scale
A scale that describes the respondent’s intention to buy.
How likely are you to purchase tickets on American Airlines if in-flight Internet access were available?
Definitely buy
Probably buy
Not sure
Probably not buy
Definitely not buy
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Question Types—Completely Unstructured
A question that respondents can answer in an almost unlimited number of ways.
What is your opinion of American Airlines?
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Question Types—Word Association
What is the first word that comes to your mind when you hear the following?
Airline ________________________
American _____________________
Travel ________________________
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Question Types—Sentence Completion
When I choose an airline, the most important consideration in my decision is: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________.
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Question Types—Story Completion
“I flew American a few days ago. I noticed that the exterior and interior of the plane had very bright colors. This aroused in me the following thoughts and feelings.” Now complete the story. __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
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Question Types—Picture (Empty Balloons)
A picture of two characters is presented, with one making a statement. Respondents are asked to identify with the other and fill in the empty balloon.
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Question Types—Thematic Apperception Test
Make up a story that reflects what you think is happening in this picture.
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Questionnaire Design
Qualities Qualities of of
Good Good QuestionnairesQuestionnaires
Qualities Qualities of of
Good Good QuestionnairesQuestionnaires
Clear and ConciseClear and Concise
No Ambiguous LanguageNo Ambiguous Language
UnbiasedUnbiased
Reasonable TerminologyReasonable Terminology
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Questionnaire Do’s and Don’ts
Ensure questions are free of bias
Make questions simple Make questions specific Avoid jargon Avoid sophisticated words Avoid ambiguous words
Avoid negatives Avoid hypotheticals Avoid words that could be
misheard Use response bands Use mutually exclusive
categories Allow for “other” in fixed
response questions
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II D ii. Qualitative Measures
Word AssociationWord Association
Projective Techniques – present an incomplete stimulus and asked to complete it.
Projective Techniques – present an incomplete stimulus and asked to complete it.
VisualizationVisualization
Brand Personification- what kind of person they think of when the
brand is mentioned
Brand Personification- what kind of person they think of when the
brand is mentioned
Laddering – asking series of “why” questions
Laddering – asking series of “why” questions
respondents are asked to create a collage of images from their own sources that
represents their thoughts feelings about the research topic
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II D iii. Technological Devices
Galvanometers –measures the interests or emotions aroused by exposure to a specific picture
or ad.
Tachistoscope – flashes an ad to a subject
with an exposure interval and asked them to describe everything that he can recall
Eye cameras
Audiometers – attached to TV sets in participating homes to record when the set is on and
to which channel is tuned.
GPS
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IIE. Sampling Procedure
SampleSample
UniverseUniverse
A subset from a large population.A subset from a large population.
The population from which a sample will be drawn.
The population from which a sample will be drawn.
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Sampling Plan
Sampling unit: Who is to be surveyed? Sample size: How many people should be
surveyed? Sampling procedure: How should the
respondents be chosen?
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Sampling Procedure
UniverseUniverse SampleSample
Probability Samples
Probability Samples
Non-Probability Samples
Non-Probability Samples
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Probability And Non-Probability Samples
ProbabilitySample
ProbabilitySample
A sample in which every element in the population has a known statistical
likelihood of being selected.
A sample in which every element in the population has a known statistical
likelihood of being selected.
Non-Probability
Sample
Non-Probability
Sample
Any sample in which little or no attempt is made to get a representative
cross-section of the population
Any sample in which little or no attempt is made to get a representative
cross-section of the population
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Probability Sample
Simple random sample Every member of the population has an equal chance of selection
Stratified random sample The population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group
Cluster (area) sample The population is divided into mutually exclusive groups (such as city blocks), and the researcher draws a sample of the groups to interview
Table Probability and Nonprobability Samples
Continued on next slide . . .
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B. Nonprobability Sample
Convenience sample The researcher selects the most accessible population members
Judgment sample The researcher selects population members who are good prospects for accurate information
Quota sample The researcher finds and interviews a prescribed number of people in each of several categories
Probability and Nonprobability Samples (Continued)
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Types of Errors
Errors Errors AssociatedAssociated
with Samplingwith Sampling
Errors Errors AssociatedAssociated
with Samplingwith Sampling
Measurement ErrorMeasurement Error
Sampling ErrorSampling Error
Frame ErrorFrame Error
Random ErrorRandom Error
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Types of Errors
Measurement Error
Measurement Error
Sampling Error
Sampling Error
Frame Error
Frame Error
Random Error
Random Error
Error when there is a difference between the information desired and the
information provided by research
Error when there is a difference between the information desired and the
information provided by research
Error when a sample somehow does not represent the target population.
Error when a sample somehow does not represent the target population.
Error when a sample drawn from a population differs from the
target population.
Error when a sample drawn from a population differs from the
target population.
Error because the selected sample is an imperfect representation of
the overall population.
Error because the selected sample is an imperfect representation of
the overall population.
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II F.Contact Methods
Mail Questionnaire
TelephoneInterview
PersonalInterview
OnlineInterview
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Impact of the Internet
Allows better and faster decision making
Improves ability to respond quickly to customer needs and market shifts
Makes follow-up studies and research easier
Slashes labor-and time-intensive research activities
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Advantages of internet Surveys
Contact with the hard-to-reach
Contact with the hard-to-reach
Improved respondent participation
Improved respondent participation
Personalized questions and data
Personalized questions and data
Reduced costsReduced costs
Rapid development,Real-time reporting
Rapid development,Real-time reporting
Advantages ofAdvantages ofInternet SurveysInternet SurveysAdvantages ofAdvantages of
Internet SurveysInternet Surveys
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Internet Samples
UnrestrictedInternet Sample
UnrestrictedInternet Sample
ScreenedInternet Sample
ScreenedInternet Sample
RecruitedInternet Sample
RecruitedInternet Sample
A survey in which anyone with a computer and modem can fill out
the questionnaire.
A survey in which anyone with a computer and modem can fill out
the questionnaire.
An Internet sample with quotas based on desired sample
characteristics.
An Internet sample with quotas based on desired sample
characteristics.
A sample in which respondents are prerecruited and must
qualify to participate.
A sample in which respondents are prerecruited and must
qualify to participate.
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Other Uses of the Internet
Other Internet Other Internet Uses Uses
by Marketing by Marketing ResearchersResearchers
Other Internet Other Internet Uses Uses
by Marketing by Marketing ResearchersResearchers
Viewing of presentations of marketing research surveysViewing of presentations of marketing research surveys
Publication and distributionof reports
Publication and distributionof reports
Data management and on-line analysis
Data management and on-line analysis
Collaboration in the management of a research project
Collaboration in the management of a research project
Distribution of requests for proposals
Distribution of requests for proposals
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Marketing Research System
Step 3: Collect the Information Step 4: Analyze the Information Step 5: Present the Findings Step 6: Make the Decision
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Field Service Firm33
A firm that specializes in
interviewing respondents on a
subcontracted basis.
Step 3: Collect the Information
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Cross-Tabulation
A method of analyzing data that
lets the analyst look at the
responses to one question in
relation to the responses to one
or more other questions.
Step 4: Analyze the Information
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Preparing and Presenting the Report
Concise statement of the research objectives
Explanation of research design
Summary of major findings
Conclusion with recommendations
Step 5: Present the Findings
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Following Up
Were the recommendations followed?
Was sufficient decision-making information included in the report?
What could have been done to make the report more useful?
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MARKETING INFORMATION SYSTEM (MIS)
Consists of people, equipment & procedures to gather, sort, analyze, evaluate distribute needed timely & accurate info to marketing decision
makers.
Step 6: Make the Decision
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The Importance of InformationThe Importance of Information
WhyInformation
IsNeeded
MarketingEnvironment
StrategicPlanning
Customer Needs
Competition
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What is a Marketing Information System (MIS)?What is a Marketing Information System (MIS)?
Consists of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers.
Function: Assess, Develop and Distribute Assess, Develop and Distribute Information.Information.
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Marketing Information System
Developing Information
The Marketing Information SystemThe Marketing Information System
InformationAnalysis
InternalData
MarketingResearch
MarketingIntelligence
DistributingInformation
Assessing InformationNeeds
Marketing Managers
Marketing EnvironmentMarketing Environment
Mar
keti
ng
Dec
isio
ns
and
C
om
mu
nic
atio
ns
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Functions of a MIS:Assessing Information NeedsFunctions of a MIS:Assessing Information Needs
Examine Cost/ Benefit of Desired
Information
Examine Cost/ Benefit of Desired
Information
Monitors Environment for Information Managers
Should Have
Monitors Environment for Information Managers
Should Have
Conduct Interviews and Determine
What Information is
Desired, Needed, and Feasible to Obtain.
Conduct Interviews and Determine
What Information is
Desired, Needed, and Feasible to Obtain.
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Functions of a MIS: Developing InformationFunctions of a MIS: Developing Information
Obtains Needed Information for Marketing Managers From the Following Sources
Obtains Needed Information for Marketing Managers From the Following Sources
Internal DataCollection of Information from Data Sources Within the Company
Internal DataCollection of Information from Data Sources Within the Company
Marketing IntelligenceCollection and Analysis of Publicly Available Information about
Competitors and the Marketing Environment
Marketing IntelligenceCollection and Analysis of Publicly Available Information about
Competitors and the Marketing Environment
From: Accounting, Sales Force, Marketing, Manufacturing, Sales From: Accounting, Sales Force, Marketing, Manufacturing, Sales
From: Employees, Suppliers, Customers, Competitors, Marketing Research Companies
From: Employees, Suppliers, Customers, Competitors, Marketing Research Companies
Marketing ResearchDesign, Collection, Analysis, and Reporting of Data about a Situation
Marketing ResearchDesign, Collection, Analysis, and Reporting of Data about a Situation
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Functions of a MIS: Distributing InformationFunctions of a MIS: Distributing Information
Information Must be Distributed
to the Right Managers at the Right Time.
Information Must be Distributed
to the Right Managers at the Right Time.
Distributes NonroutineInformation for Special
Situations
Distributes NonroutineInformation for Special
Situations
Distributes Routine Information for Decision Making
Distributes Routine Information for Decision Making
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MIS – AN INTRODUCTION
MIS begins and ends with marketing managers. It requires:
1. Assessment of Information Needs – interacts with the information users (marketing managers, internal
&external partners , & others who needs marketing information) to assess information needs.
2. Development of Needed Information – from internal company databases, marketing intelligence activities &
market research
3. Distribution of Information- to managers in the right form at the right time to help them make
better marketing decisions.
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MIS – Assessing Information Needs
A good marketing information system balances the information users would like to have against what they really need & what is feasible to offer.
Too much information can be as harmful as too little.
The MIS must monitor the marketing environment in order to provide decision makers with information they should have to make key marketing decisions.
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10 useful questions for determining the information needs of marketing managers.
1. What decisions do you regularly make?2. What information do you need to make these decisions?3. What information do you regularly get?4. What special studies do you periodically request?5. What information would you want that you are not
getting now?6. What information would you want daily? Weekly?
Monthly? Yearly?7. What magazines and trade reports would you like to see
on a regular basis? 8. What topics would you like to be kept informed of?9. What data analysis programs would you want?10. What are the four most helpful improvements that could
be made in the present marketing information system?
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MIS - Developing Marketing Information
Marketers can obtain the needed information from: Internal data, Marketing intelligence , Marketing research
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Internal Data Information in database can come from many sources.
The accounting department prepares financial statements & keep detailed records of sales, costs, & cash flows.
Operations reports on production schedules , shipments,& inventories. The marketing department furnishes information on customer
transactions , demographics, psychographics, & buying behaviour. The customer service department keeps records of customer
satisfaction or service problems. The sales force reports on reseller reactions & competitor activities &
marketing channel partner provides data on point of sales transactions.
Frito-Lay uses its sophisticated internal information system to analyze daily sales performance.
Each day Frito-Lay’s salespeople report their day’s efforts via a handheld computers into Frito-Lay HQs in Dallas.
24 hours later, their marketing managers have a complete report analyzing the previous day’s sales of Fritos, Doritos and other brands.
The system helps marketing managers make better decisions and makes the salespeople more effective.
It greatly reduces the number of hours spent filling out reports, giving salespeople extra time for selling.
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The Marketing Intelligence System
A Marketing Intelligence System is a set of procedures and sources used by managers
to obtain everyday information about developments in the marketing environment.
The goal of marketing intelligence is to :•improve strategic decisions making , •Assess & track competitors actions & •provide early warning of opportunities &threats.
The company can also obtain important intelligence information from:•suppliers, •resellers, &•key customers.
It can get information by observing competitors & monitoring their published information.
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Steps to Improve Marketing Intelligence
Train sales force to scan for new developmentsTrain sales force to scan for new developments
Motivate channel members to share intelligenceMotivate channel members to share intelligence
Network externallyNetwork externally
Utilize a customer advisory panelUtilize a customer advisory panel
Utilize government data resourcesUtilize government data resources
Purchase informationPurchase information
Collect customer feedback onlineCollect customer feedback online
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Business IntelligenceBusiness Intelligence Process of gathering information and
analyzing it to improve business strategies, tactics, and daily operations
Competitive IntelligenceCompetitive Intelligence Form of business intelligence that focuses on
finding information about competitors using published sources, interviews, observations by salespeople and suppliers in the industry, government agencies, public filings and other secondary sources including the Internet
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Competitive Intelligence
An intelligence system that
helps managers assess their
competition and vendors in
order to
become more efficient and
effective competitors.
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Competitive Intelligence
Can help identify a competitor’s advantage
Can help determine how the competitor’s advantagewas achieved
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Advantages of Competitive Intelligence
Predict changes in business relationships Guard against threats Forecast a competitor’s strategy Develop a successful marketing plan
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Sources of Competitive Intelligence
InternetInternet
Company PersonnelCompany Personnel
ExpertsExperts
CI ConsultantsCI Consultants
Government AgenciesGovernment Agencies
UCC FilingsUCC Filings
SuppliersSuppliers
Newspapers/PeriodicalsNewspapers/Periodicals
Yellow PagesYellow Pages
Trade ShowsTrade Shows
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What is a Marketing Decision Support System (MDSS)?
A marketing decision support system is a coordinated collection of data, systems, tools, and techniques with supporting hardware and software by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action. An MDSS can create simulations or models to illustrate the likely
results of changes in marketing strategies or marketing conditions
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Data MiningData Mining The process of searching through computer files
to detect patterns Focuses on identifying relationships that are not
obvious to marketers The data is stored in a huge database called a
data warehouse Can be an efficient way to make sense of huge
amounts of data Can help create customer profiles, pinpoint
reasons for customer loyalty or the lack thereof, analyze the potential returns on changes in pricing or promotion, and sales forecasts
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Kotler on Marketing
Marketing is becoming a battle based more on information than on sales power.