Chapter 5: Marketing Information Systems & Marketing Research

There are two kinds of knowledge: knowledge in your mind & knowledge of where you can find the information you need.

Outline
The marketing information system (MIS) Assessing information needs Developing information Marketing research processing Information analysis Distributing information

Chapter Objectives
Explain the concept of the marketing information system Identify the different kinds of information the company might use Outline the marketing research process, including defining the problem and research objectives, developing the research plan, implementing the research plan, and interpreting and reporting the findings.

Marketing Information System

Consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. 1. Assessing information needs: a good MIS system balances information that we would like to have against that which is really needed and feasible to obtain.
1. 2. 3. 4. Internal Records Information Marketing Intelligence Marketing Research Information Analysis

2. Developing information: four main sources/types.

3. Distributing information to decision makers.

The Marketing Information System

Assessing Information Needs

Pizza Hut wants to launch a new pizza but needs feedback from the customers. Treasure Island wants to evaluate its market position.

Burger King develops two TV commercials and wonder which one would be more effective.
You are going to start your own business in a particular city and you have to make concept and location decisions.

Developing Information
Main Sources and Types 1. Internal records information 2. Marketing intelligence 3. Marketing research

Information analysis

Developing Information
Internal Records
Information gathered from sources within the company to evaluate marketing performance and to identify marketing problems and opportunities

Internal database (Financial and nonfinancial data

from PMS)

Data warehouses (Customer data in the corporate

office Ex. Wyndham Hotels)

Guest history information (information gathered from guest records)

Developing Information
Internal Records
Guest information trends (booking patterns, cancellations, occupancy patterns)
Guest information management (e.g., guest

comment cards, listening to and speaking with

guests, mystery shoppers, P.O.S. information Example: Las Vegas Hilton)

Corporate customer and marketing intermediary

information (e.g., customer and prospective customer
databases)

Developing Information
Marketing Intelligence
Everyday information from internal and external sources about developments in the marketing environment that helps managers to prepare and adjust marketing plans and short-run tactics.

Internal sources of marketing intelligence

- Gathered by company executives, and other employees

External sources of marketing intelligence - Macromarket information, competitive, new innovation and trends Sources of competitive information
- Annual reports, trade magazines, press releases, and advertisements

Commercial sources of marketing information

- On-line databases of information services, electronic yellow pages

Developing Information
Marketing Research
A process used to identify and define marketing opportunities and problems, to monitor and evaluate marketing actions and performance, and to communicate research findings to management.
Example: When McDonalds decided to add salads to its menu, its planners needed to research customers preferences for types of vegetables and dressings.

Most common activities: market share analysis, market potentials sales analysis, business trends, short-range forecasting, competitive Product studies, long-range forecasting, testing of existing products.
1. Own researchers 2. Outside researchers

Marketing Research Process

Steps in the Marketing Research Process:
Defining the problem and research objectives Developing the research plan for collecting information
Implementing the research plan -- collecting and analyzing the data Interpreting and reporting the findings

Objectives: Exploratory Descriptive Causal

Secondary data vs. primary data Sample vs. population Research Approaches

Put the plan into action collect and analyze the data

Interpret the findings-draw conclusions and report to management

Marketing Research Process

Defining the Problem and Research Objectives

Exploratory Research (Unaware of Problem) Our sales are declining and we dont know why. Would people be interested in our new product idea?

Descriptive Research (Aware of Problem)

Causal Research (Problem Clearly Defined)

What kind of people are buying Will buyers purchase more of our product? Who buys our our products in a new package? competitors product? Which of two advertising What features do buyers prefer campaigns is more effective? in our product?

Marketing Research Process

Develop Research Plan
Secondary vs Primary Data Research Approaches

Observation Method Survey Method Experimental Method

Contact Methods (Mail, telephone, personal, internet) Sampling Plan Research Instruments Presenting the Research Plan

Develop the Research Plan

Secondary vs. Primary Data
Both Must Be: Information That Already Exists Somewhere. + Obtained More Quickly, Lower Cost. Relevant Accurate Current Impartial Information Collected for the Specific Purpose at Hand.

- Might Not be Usable Data.

Marketing Research Process

Develop the Research Plan

Research Approaches

Observational Research
Gathering data by observing people, actions and situations (Exploratory)

Survey Research
Asking individuals about attitudes, preferences or buying behaviors (Descriptive)

Experimental Research
Using groups of people to determine cause-and-effect relationships (Causal)

Develop the Research Plan

Contact Methods
Mail
Flexibility Poor Good

Telephone Personal
Excellent

Internet
Good

Quantity of Data Collected

Control of Interviewer Control of Sample Speed of Data Collection Response Rate Cost

Good
Excellent Fair Poor Fair Good

Fair
Fair Excellent Excellent Good Fair

Excellent
Poor Fair Good Good Poor

Good
Fair Poor Excellent Good Excellent

Develop the Research Plan

Sampling Plan
Probability or Non-probability sampling? Sample representative segment of the population How should the sample be chosen? How many should be surveyed? Who is to be surveyed? (What Sampling Unit?)

Marketing Research Process

Research Instruments
Structured or Unstructured
Interview (structured or unstructured) Mechanical Devices (Tape record, video)

Structured (Questionnaire)

Presenting the Research Plan

Summarize the plan in a written proposal

Marketing Research Process

Implement the Research Plan
Putting plan into action
Collecting the data Process the data

Analyzing the Data

Interpret and Report the Findings

Turn data into information

Interpret the findings

Draw conclusions Report findings and conclusions

Information Analysis
This involves further and more detailed analysis of marketing intelligence and marketing research data (sometimes this is called secondary analysis of primary data) through:

1. Advanced statistical analysis 2. Mathematical models

Distributing Information
Information has no value until managers use it to
make better decisions. It must reach the appropriate managers at the right time. Often information arrives too late to be useful.

Next
Chapter Six Consumer Markets and Consumer Buying Behavior