Marketing Information

1. Marketing Research

2. Exam Type Questions
1. Explain the importance of
information to the company
and its understanding of the
marketplace.
2. Outline the steps in the
marketing research process.
3. What is meant by primary and
secondary data?

3. Managing Marketing
Information
 Information needs of organization:
customer value & satisfaction
 Competitors, resellers, and other forces
in the marketplace
 Wal-Mart daily data equivalent to 96000
DVDs
 Marketers need better information
 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.

4. Developing Information
 Internal databases: electronic collection of
consumer and market information obtained from
data sources within the company network.
 Accounting department keeps detailed records
of sales, costs, and cash flows.
 Operations department reports on production
schedules, shipments, and inventories.
 Marketing department furnishes information on
customer transactions, demographics,
psychographics, and buying behavior.
 Pizza Hut database: 40 million US households
gleaned from 7,500 restaurants. Coupon offers
on the basis of data.

5. Quickly and easily
developed
May be incomplete and
not serve specific purpose

6. Marketing Intelligence
The systematic collection
and analysis of publicly
available information about
consumers, competitors
and developments in the
marketing environment

7. Marketing Intelligence
 Quizzing employees
 Benchmarking products
 Researching the internet
 Trade shows and exhibitions
 Annual reports
 Business publications and ads
 Trash bins routing
 Microsoft vs Google example

8. Marketing Research
 Formal studies of specific situations
 Samsung Plasma, Pizza Hut sales
 Marketing research is the systematic
design, collection, analysis, and reporting
of data relevant to a specific marketing
situation facing an organization.
 Market potential, market share, formulate
marketing mix strategy
 Own research department, consultants,
research companies (ACNielson)

9. Marketing Research Process
Involves four steps: defining
the problem and research
objectives, developing the
research plan, implementing
the research plan, and
interpreting and reporting
the findings.

10. Defining the Problem and
Research Objectives
 A difficult ask: the manager may know that
something is wrong, without knowing the specific
causes.
 Once problem defined, research objectives must
be set.
 Exploratory research: to gather preliminary
information that will help define problems and
suggest hypotheses.
 Descriptive research: to better describe marketing
problems, situations, or markets, such as the
market potential for a product or the
demographics and attitudes of customers.
 Causal research: to test hypotheses about cause
and effect relationship. For example, would 10 %
decrease in tuition fee result in an enrollment
increase.

11. Defining the Research Plan
Specific information needs
Existing data and spells specific
research approaches, contact
methods, sampling plans and
instruments to gather data
Campbell soup example
Written proposal contains
research costs

12. Secondary Data
 Information that already exists
somewhere, having been collected
for other purpose.
 Internal data bases, buying
secondary reports, online data
bases (Dialog, ProQuest,
LexisNexis)
 Can be obtained more quickly at
lower cost
 Needed information may not exist

13. Primary Data
Information collected for the
specific purpose at hand.
Relevant, accurate, current and
unbiased
Collection of primary data may
involve research approaches,
contact methods, sampling
plan, and research instruments.

14. Research Approaches
Observational research: the
gathering of primary data by
observing relevant people,
actions, and situations.
Example bank
(neighborhood conditions,
location of competing
branches, traffic routes)

15. Ethnographic Research
A form of observational
research that involves
sending trained observers to
watch and interact with
consumers in their “natural
habitat” Example Marriot
hotel

16. Survey Research
Gathering primary data by
asking people questions
about their knowledge,
attitudes, preferences,
and buying behavior.

17. Experimental Research
Gathering primary data by
selecting matched groups of
subjects giving them
different treatments,
controlling related factors,
and checking differences in
groups.

18. Contact Methods
Mail
Telephone
Personal Interviewing
Focus groups interviewing
Online marketing research

19. Sampling Plan
Drawing conclusions about
large group of customers by
studying a small sample of
the total consumer
population.
Sampling decision for a car

20. Probability Sample
 Simple random sample: every member of
the population has a known and 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 blocks), and the researchers
draws a sample of the groups to
interview

21. Non Probability Sample
 Convenience sample: the researcher
selects the easiest population
members from which to obtain
information
 Judgment sample: the researcher uses
his or her judgment to select
population members who are good
prospects of accurate information.
 Quota sample: the researcher finds
and interviews a prescribed number of
people in each of several categories

22. Research Instrument
Questionnaire
Mechanical devices

23. Implementing the Research
Collecting, processing
and analyzing information
Isolate important
information
Tabulate results

24. Interpreting and Reporting the
Findings
Interpret findings, draw
conclusion and report
them to management.
Mangers too have to
interpret information
Both share responsibility