CHAPTER 2

Managing Marketing Information

to Gain Customer Insights
 THE MARKETING PROCESS

Understand Design a Construct an Building

the Customer - Integrated profitable Capture
marketplace driven marketing relationships value from
and marketing program that and customers
Customer strategy delivers create to create
needs & superior value customer profits and
wants delight customer
equity
 CUSTOMER INSIGHTS

“In today hypercompetitive world, the race for

competitive advantage is really a race for customer and
market insights”
There is no successful marketing campaign without finding the
customer insights

What is the customer insights?

 CUSTOMER INSIGHTS

Fresh understandings of customers and the

marketplace derived from marketing information
that become the basis for creating customer value
and relationships.
CUSTOMER
INSIGHTS
 CUSTOMER INSIGHTS

• Difficult to obtain
– Not obvious
– Customer is unsure of their behavior
• Marketers don’t need more information but better
information and more effective use of existing
information
 Marketing Information Systems (MIS)

Marketing information system (MIS) consists of

people and procedures for:
– Assessing the information needs
– Developing needed information
– Helping decision makers use the information to
generate and validate actionable customer and
market insights
The marketing information system begins and ends with users

A good marketing information system balances

the information users would like to have against
what they really need and what is feasible to offer
Interacting Developing needed information
Collections of consumer and market information obtained
from data sources within the company’s network
(Marketing, customer database, sales, customer service,
accounting, operation …)
Interacting Developing needed information
  Understanding the
The systematic monitoring, collection, and
consumer environment
analysis of publicly available information
 Assessing and tracking
about consumers, competitors, and
competitors’ actions
developments in the marketing
 Providing early warnings of
environment
opportunities and threats
Interacting Developing needed information
 Marketing research is the systematic
design, collection, analysis, and reporting
of data relevant to a specific marketing
situation facing an organization
 The Marketing Research process

Defining the
problem
 The Marketing Research process

To gather preliminary information

exploratory that will help define problems and
research suggest hypotheses

To better describe marketing

Defining the Defining the problems, situations, or markets,
problem research descriptive such as the market potential for a
objectives research product or the demographics and
attitudes of consumers.

causal To test hypotheses about cause

research and effect relationships
The Marketing Research process

Secondary data

Primary data
 Secondary data and Primary data

Secondary data: consist of information that already

exists somewhere, having been collected for another
purpose

Primary data: Information collected for the specific

purpose at hand
 Gathering Secondary data

 Start the research by gathering secondary data

 From internal database
 External sources
Primary
data
collection
Primary data collection
 Research Approaches

Observational research: involves gathering primary

data by observing relevant people, actions, and
situations

Ethnographic research involves sending trained

observers to watch and interact with consumers in
their natural environment
 Research Approaches

Survey research is the most widely used method and

is best for descriptive information—knowledge,
attitudes, preferences, and buying behavior
 Flexible
 People can be unable or unwilling to answer
 Gives misleading or pleasing answers
 Privacy concerns
 Research Approaches

Experiments involve selecting matched groups of

subjects, giving them different treatments,
controlling unrelated factors, and checking for
differences in group responses.
Experimental research is best for gathering causal
information—cause-and-effect relationships
Primary data collection
 Contact Methods
Mail, Telephone, and Personal Interviewing:
 Mail questionnaires can be used to collect large amounts of information at a
low cost per respondent
 Telephone interviewing is one of the best methods for gathering information
quickly, and it provides greater flexibility than mail questionnaires
 Personal interviewing takes two forms:
+ individual interviewing: talking with people in their homes or offices, on
the street, or in shopping malls
+ group interviewing: consists of inviting small groups of people to meet with
a trained moderator to talk about a product, service, or organization
 Contact Methods

Online marketing research: Collecting primary data through

internet and mobile surveys, online focus groups, consumer
tracking, experiments and online panels and brand communities.
 Internet and mobile surveys

Include a questionnaire on its web or social media sites or

use email or mobile devices to invite people to answer
questions

 Quantitative research
Primary data collection
 Sampling plan

Sample: A segment of the population selected for marketing

research to represent the population as a whole.

Designing the sample requires three decisions

 Who is to be studied (what sampling unit)?
 How many people should be included (what sample size)?
 How should the people in the sample be chosen (what
sampling procedure)?
 Types of sample

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 researcher draws a sample of the
groups to interview.
Cluster sample
 Types of sample

Nonprobability 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 for accurate information
 Quota sample: The researcher finds and interviews a prescribed number
of people in each of several categories.
Primary data collection
The Marketing Research process

To isolate important information and insights

The Marketing Research process

Present important findings and insights that are

useful in the major decisions faced by
management
 Analyzing and Using Marketing Information

• Customer Relationship Management (CRM): Managing detailed information

about individual customers and carefully managing customer touch points to
maximize customer loyalty
• Marketing Analytics: The analysis tools, technologies, and processes by
which marketers dig out meaningful patterns in big data to gain customer
insights and gauge marketing performance
• Distributing and Using Marketing Information: the marketing information
system must make information readily available to managers and others who
need it, when they need it
 USERS
exploratory research

Defining the Research descriptive research

research objectives
problem causal research
Assesing
information Approaches Observation
Developing
needs
research
Survey
plan
Interacting Developing Experiment

Internal Marketing Marketing Mail

database intelligence Research Contact
methods Telephone

Implementing Personal
research plan
Sampling Online
plan

Interpreting Instrument
and reporting
Analyzing
and using