Information System & Marketing Research

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Chapter

Information System & Marketing Research

Information System & Marketing Research

Marketing Information Systems (MIS)

The term Marketing Information Systems refers to a programme for managing and organising information gathered by an organisation from various internal and external sources. Information sources for MIS include a companys internal records, marketing

databases, marketing intelligence systems, marketing research, and

information supplied by independent information suppliers.

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Internal Sources Marketing Database External Sources Evaluation of Information Needs Data Retrieval System

Information for Marketing Decisions

Elements of MIS

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Databases
A database refers to the collection of comprehensive information about customers and prospects such as demographic and psychographic profiles, products and services they buy, and purchase volumes, etc., arranged in a manner that is available for easy access and retrieval.

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Internal Records
Internal database is the most basic starting point in developing a strong MIS. Internal record systems help in tracking what is selling, how fast, in which locations, to which customers, etc.

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External Sources
Census Bureau is one key source of information regarding various demographic variables. Besides Census Bureau of India, other sources include Newspapers, Trade Publications, Technical Journals, Magazines, Directories, Balance Sheets of companies, Syndicated and published research reports.

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Computer Networks and Internet

Present day computer networks enable marketers to access data sources and customers with immediate information about products and performance.

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Data Mining and Data Warehousing

The term data mining refers to automated data analysis of large amount of data stored in a data warehouse. Data mining creates customer database, which is extremely important for all narrowly defined target-marketing efforts. Data mining also leads to build database on resellers, distribution channels, media, etc. Data warehousing refers to storing subject-based, integrated, nonvolatile, time variant data in support of managerial decisions.

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Marketing Intelligence Systems

Marketing intelligence system refers to systematic and ethical approach, procedures, and sources that marketing managers use to gather and analyse everyday information about various developments with regard to competitors and other business trends in the marketing environment.

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Marketing Research Process

It helps in identifying consumer needs and market segments, furnishes information necessary for developing new products and formulating marketing strategies, enables managers to measure the effectiveness of marketing programmes and promotional activities, develops economic forecasting, helps in financial planning, and quality control. For conducting marketing research, companies develop systematic procedures for collecting, recording, and analysing data from secondary and primary sources to help managers in making decisions.

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Defining Marketing Research

Marketing Research is the function which links the consumer, customer, and public to the marketer through information information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance, and improve understanding of marketing as a process.

(Definition by American Marketing Association, according to Tull and Hawkins, 6th Ed.)

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Define Problem & Set Objectives

Define Problem & Set Objectives

Define Problem & Set Objectives

Define Problem & Set Objectives

Define Problem & Set Objectives

Define Problem & Set Objectives

Steps in Marketing Research Process

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Define the Marketing Problem and Set Objectives

Problem Definition Research Objectives: The research objective defines what information is needed to solve the problem

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Design Research Project

Marketing research design refers to the specification of methods for gathering and analysing the data necessary to facilitate identifying or reacting to a problem or opportunity. To achieve accuracy and gain useful information through marketing research, the research design should be developed carefully and strict standards should be applied for collecting and tabulating the data.

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Many researchers have found it useful to consider three categories of research based on the type of information required. These are briefly discussed below:

Exploratory Research: This category of research aims at discovering the general nature of the problem and to correctly understand the involved variables.
Descriptive Studies: In such studies, information is collected from a representative of respondents and the information collected is analysed by using statistical methods. Causal Research (Experimental Research): Such research studies are conducted to establish cause and effect relationship between different variables.

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Data Collection Approach

There are four basic methods for collecting data in marketing research. These include secondary data, observation data, survey data, and experimental data. The nature of collected data can be put under either secondary or primary category.
Data Alternatives

Secondary Data

Use Research Services

Primary Data

Internal Records

Published Reports

Subscription to Service

One-Time Purchase

Exploratory Research

Primary Study

Data Collection Alternatives

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Secondary Data
Secondary data is any information originally generated for some other purposes rather than the current problem under consideration and can be either internal or external to the organisation.

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Primary Data
In case the needed data are not available from secondary sources, it is dated, accuracy is doubtful, or unreliable, it becomes necessary for the researcher to obtain primary data through full-scale research. To collect primary data, the researcher undertakes either qualitative research or quantitative research.

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Qualitative Research
Data collection techniques for qualitative studies include focus group, depth interviews and projective techniques. Four popular methods of data collection include: Depth interviews Focus group Projective techniques Laddering

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Depth Interviews
Depth interviews are designed to determine deep seated or repressed motives.

Focus Groups
Focus group is a popular technique for exploratory research and brings together about eight to ten people with similar backgrounds to meet with a moderator /analyst for a group discussion. The discussion is focused on a product, service or any other subject for which the research is conducted. Focus groups can be helpful in:
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Generating hypotheses about consumers and market conditions. Suggesting refreshing new ideas. Checking an advertisement, product package, or product concept to determine any flaws. Understanding consumers motivations, lifestyles and personalities. Doing a post-mortem on failed products.
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Information System & Marketing Research

Projective Techniques
These techniques explore the underlying motives of individuals who consciously or unconsciously get involved in rationalisations and concealment because they may be reluctant to admit certain weaknesses or desires. Some examples of projective techniques are: Thematic Apperception Techniques (TAT) Word Association Test Sentence Completion Test The Third-Person Technique Laddering (Means-End Chain Model): The assumption here is that very specific product attributes are linked at levels of increasing abstraction to terminal values.

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Quantitative Research
There are three basic approaches to collecting data in quantitative study: Observation: One important approach to gain an in-depth understanding of consumers is to observe their behaviour in the process of buying and using products. Experimentation: In experimental studies, the researcher can test the relative sales appeals for package designs, prices, promotional offers and copy themes, etc., by designing suitable experiments to identify cause and effect. Survey: In a survey for data collection, consumers are aware of the fact that they are being studied and participate actively. A survey can be conducted by personal interview, by mail, or by telephone.

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Personal interview survey Costs of data collection Time required to collect data Sample size for a given budget Data quantity per contact Can reach widely dispersed sample Reach to special locations Level of interaction with respondents Degree of interview bias Presentation of visual stimuli Response rate High Medium Small High No Yes High High Yes High

Telephone survey

Mail survey

Medium Low Medium Medium Maybe Maybe Medium Medium No Medium

Low High Large Low Yes No None None Maybe Low

Advantages and Limitations of Data Collection Methods

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Data Collection Instruments:

The method of data collection depends on the type of research. The primary method of data collection for quantitative study is the questionnaire. A questionnaire consists of a set of questions presented to respondents for their responses. Instead of using a questionnaire, sometimes researchers use a list of statements and ask respondents to indicate their degree of agreement or disagreement (called inventories).

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Researchers also use attitude scales to collect this type of evaluative data. Attitude scales include Likert scales, Semantic differential scales, and Rankorder scales.

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Sampling Plan
A sample design addresses three questions: who is to be surveyed (sampling unit), how many to survey (sample size), and how should the respondents be chosen (the sampling procedure).

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Random Probability Sampling

The greatest accuracy is obtained from random probability samples because all units in a population have a known and equal chance of being selected. Non-probability sampling: This method involves the researchers personal judgement and elements of the population do not have a known chance of being

selected, so there is no guarantee the sample is representative and the

researchers cannot be as confident in the validity of the responses.

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Analyse the Information

It is important to appreciate that raw data by itself does not serve the purpose of marketing research. After the research data has been collected, it is time to gain valuable insight from the findings. The researcher tabulates the data for analysis.

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Present the Findings

Report writing requires taking an objective look at the findings to see how

well the collected facts suit the research objectives to solve a stated marketing problem.

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