Managing Marketing
Information
Chapter 5
Objectives
• Understand the importance of
information to the company.
• Know the definition of a marketing
information system and be able to
discuss its subparts.
• Learn the steps in the marketing
research process.
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Objectives
• Learn how companies analyze and
distribute marketing information.
• Realize the special issues some
marketing researchers face,
including public policy and ethical
issues.
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Case Study
Coke
• “New Coke” was a • Key issue: the
fiasco; consumer research problem
complaints resulted was too narrowly
in the return of defined, and
“Coke Classic” after consumer feelings
only 3 months. were ignored.
• $4 million was spent • Poor judgment in
researching “New result interpretation
Coke”. was also a problem.
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Marketing Info. System
• Marketing Information System
(MIS)
Consists of people, equipment, and
procedures that gather, sort, analyze,
evaluate, and distribute needed,
timely, and accurate information to
marketing decision makers.
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Marketing Info. System
• Assessing Marketing Information
Needs
The MIS serves company managers as
well as external partners.
The MIS must balance needs against
feasibility:
Not all information can be obtained.
Obtaining, processing, sorting, and
delivering information is costly.
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Marketing Info. System
Developing • Internal data is gathered
via customer databases,
Information financial records, and
operations reports.
• Internal data • Advantages of internal
data include quick/easy
• Marketing access to information.
intelligence • Disadvantages stem from
the incompleteness or
• Marketing inappropriateness of data
to a particular situation.
research
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Marketing Info. System
Developing • Marketing intelligence is
the systematic collection
Information and analysis of publicly
available information
about competitors and
• Internal data trends in the marketing
environment.
• Marketing • Competitive intelligence
gathering activities have
intelligence grown dramatically.
• Marketing • Many sources of
competitive information
research exist.
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Marketing Info. System
Sources of
Competitive Intelligence
• Company • Competitor’s
employees employees
• Internet • Trade shows
• Garbage • Benchmarking
• Published • Channel members
information and key customers
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Marketing Info. System
• Marketing research is
Developing the systematic design,
Information collection, analysis,
and reporting of data
• Internal data relevant to a specific
marketing situation
• Marketing facing an organization.
intelligence • Steps in the marketing
• Marketing research process.
research
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Marketing Info. System
• 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.
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Marketing Info. System
• Step 1: Defining the problem and
research objectives
Don’t confuse the symptoms of the
problem with its cause when defining
the problem.
Exploratory, descriptive, and causal
research each fulfill different objectives.
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Marketing Info. System
• Step 2: Developing the Research Plan
Research objectives guide the determination
of specific information needs.
Research proposals outline the type of data
needed and the research plan.
Secondary data: Information collected for another
purpose which already exists.
Primary data: Information collected for the specific
purpose at hand
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Marketing Info. System
Types of Data • Secondary data sources:
Government information
Internal, commercial, and
online databases
• Secondary data Publications
• Advantages:
• Primary data Obtained quickly
Less expensive than primary
data
• Disadvantages:
Information may not exist
or may not be usable.
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Marketing Info. System
Evaluate the Following When
Judging Data Quality
• Relevance • Currency
• Accuracy • Impartiality
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Marketing Info. System
Types of Data • Planning primary research:
Research approaches:
Observation, survey,
experiment
• Secondary data Contact methods:
Mail, telephone, online,
• Primary data personal
Sampling plan:
Sampling unit, sample size,
sampling procedure
Research instruments:
Questionnaire, mechanical
instruments
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Marketing Info. System
• Research approaches:
Observation research using people or
machines
Mystery shoppers, traffic counters, web site
“cookies” are some examples.
Discovers behavior but not motivations.
Ethnographic research expands observation
research to include consumer interviews.
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Marketing Info. System
• Research approaches:
Survey research is widely used to gather
descriptive information.
Single source data systems gather
information from consumer panels
Survey research faces many problems
Experimental research investigates
cause and effect relationships.
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Marketing Info. System
• Key Contact Methods Include:
Mail surveys
Telephone surveys
Personal interviewing:
Individual or focus group
Online (Internet) research
• Each contact method has strengths and
weaknesses
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Marketing Info. System
Strengths and Weaknesses of
Contact Methods Relate to:
• Flexibility • Interviewer
effects
• Sample control
• Speed of data
• Data quantity collection
• Cost • Response rate
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Marketing Info. System
• Sample: subgroup of population from
whom information will be collected
• Sampling Plan Decisions:
Sampling unit
Sample size
Sampling procedure:
Probability samples
Non-probability samples
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Marketing Info. System
• Research Instruments:
Questionnaires
Include open-ended and closed-ended
questions
Phrasing and question order are key
Mechanical instruments
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Marketing Info. System
• Step 3 of the Research Process:
Implementing the Research Plan
Involves collecting, processing, and
analyzing information.
• Step 4 of the Research Process:
Interpreting and Reporting the
Findings
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Marketing Info. System
• Analyzing Marketing Information
Customer relationship management
(CRM) helps manage information.
CRM offers many benefits and can help
a firm gain a competitive advantage.
Technology alone cannot build
profitable customer relationships.
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Marketing Info. System
• Distributing and Using Marketing
Information
Routine reporting makes information
available in a timely manner.
User friendly databases allow for special
queries.
Intranets and extranets help distribute
information to company employees and
value-network members.
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Other Considerations
• Marketing research in small
businesses and not-for-profit
organizations
• International marketing research
• Public policy and ethics
Consumer privacy issues
• Misuse of research findings
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