Chapter 6 Improving Decisions with Marketing Information

What is MIS?
MIS marketing information system) is a set of procedures and methods for the regular, planned collection, analysis and presentation of information for use in marketing decisions

The components of a computerised MIS

Databases (data warehouse) - raw data e.g historical sales data, secondary data Statistical bank - programmes to carry-out sales forecasts, relevance analysis A model bank - stores marketing models e.g Ansoffs matrix, Boston Matrix

Marketing research
The process of systematically gathering, recording, and analysing data concerning a particular marketing problem

The Marketing Research Process

1 Defining the problem 2 Analyzing the situation 3 Getting problem-specific data 4 Interpreting the data 5 solving the problem

1.Defining the problem First, a marketing manager should understand the target market and what needs the firm can satisfy. Then, the manager can focus on lower level problems how sensitive the target market is to a change in one or more of the marketing mix ingredients.

 Its easy to confuse symptoms with the problem.

2 Analyzing the situation

A situation analysis is an informal study of what information is already available in the problem area. It can help define the problem and specify what additional information, if any, is needed.

 Pick the brains around you. Situation analysis helps educate a researcher. Secondary data may provide the answer or some background.
Secondary data sources Inside company Outside company

3 Getting problem-specific data

This step is to plan a formal research project to gather primary data. Research approaches: primary data can be collected in four ways: observation, focus group, survey, and experiments.

 Qualitative research - subjective and personal Quantitative research - statistical basis

Population and Sample

Sampling plan probability sample : simple random sample stratified random sample cluster (area) sample nonprobability sample : convenience sample judgment sample quota sample

 Research instruments: questionnaires mechanical devices

Questionnaire
Types of questions: Closed-end questions Open-end questions

Closed-end questions
Dichotomous : yes no Multiple choice: with three or more answers Likert scale: strongly disagree; disagree; neither agree nor disagree; agree; strongly agree. Importance scale: extremely important; very important; somewhat important; not very important; not at all important. Rating scale: excellent; very good; good; fair; poor.

Open-end questions
Completely unstructured Word association Sentence completion

Surveys come in many forms Mail and online surveys Telephone surveys Personal interview

4 Interpreting the data

After someone collects the data, it has to be analyzed to decide what it all means. This step usually involves statistics. (eg. Cross-tabulation) P163

5 solving the problem

The marketing manager should be able to apply the findings in marketing strategy planning the choice of target market or the mix of the four Ps.