Topic 3 MIS and MR Lect

Topic 3
Marketing Research
And
Market Information
System
Chapter Objectives
 In this chapter, we focus on the following questions:
1. What constitutes good marketing research?
2. How can marketing decision support systems help marketing managers
make better decisions?
3. Describe the development of the marketing research function and its
major activities.
4. Explain the steps in the marketing research process
5. Distinguish between primary and secondary data and identify the
sources of each type.
6. Explain the different sampling techniques used by marketing
researchers.
7. Identify the methods by which marketing researchers collect primary
data.
8. Explain the challenges of conducting marketing research in global
markets.
9. Outline the most important uses of computer technology in marketing
research.
10. What are the components of a modern marketing information
system?
07/02/11 Ms Seema Agarwal 2

Marketing Research
The process of planning,

collecting, and analyzing data
relevant to a marketing decision.

Defining Research
 Systematic : well organized and planned
 Objectivity : unbiased and unemotional
To investigate a specific problem that needs a solution.
To discover new facts to deal with the problem.
•Market Research links consumer, customer and the public to the

marketers through information

Different Types Of Research
••Gathers
Gatherspreliminary
preliminaryinformation
information
Exploratory that
that will help define theproblem
will help define the problem
Research and suggest hypotheses.
and suggest hypotheses.
••Describes
Describesthings
thingsas
asconsumers’
consumers’
Descriptive attitudes and demographics
attitudes and demographics
Research or
or marketpotential
market potentialfor
foraaproduct.
product.
••Test
Testhypotheses
hypothesesabout
aboutcause-
cause-
Causal and-effect
and-effectrelationships
relationships
Research
Roles of Marketing Research
Marketing
Marketing Research
Research
has
has three
three roles:
roles:
Descriptive
Descriptive Predictive
Predictive
Diagnostic
Diagnostic

Roles of Marketing Research 2

 Gathering and presenting
Descriptive factual statements
Diagnostic  Explaining data
 Attempting to estimate the

Predictive results of a planned
marketing decision

Application of MR
 Marketing research activities can be
divided into four main strategic categories:
 Market Analysis
 Identifying and evaluating opportunities
 Competitive Analysis
 Market Segmentation
 Analyzing market segments and selecting
target markets
 Marketing Strategy Design
 Planning and implementing a marketing mix
 Analyzing Marketing Performance
When Should Marketing
Research be Conducted?
 Where there is a high level of
uncertainty
 When value of research

information exceeds the cost
of generating the information

Characteristics of Good Marketing Research
1. Scientific Effective marketing research uses the principles of the

method scientific method: careful observation, formulation of
hypotheses, prediction, and testing.
2. Research At its best, marketing research develops innovative

creativity ways to solve a problem: a clothing company catering
to teenagers gave several young men video cameras,
then used the videos for focus groups held in
restaurants and other places teens frequent.
3. Multiple Marketing researchers shy away from overreliance on

methods any one method. They also recognize the value of using
two or three methods to increase confidence in the
results.

Characteristics of Good Marketing Research
4. Interdepence Good marketing researchers recognize that data are

of models & interpreted from underlying models that guide the type
data of information sought
5. Value & cost Cost are typically easy to determine but value of
of information research is harder to quantify.
6. Ethical Good marketing research benefits both the sponsoring

marketing company and its customers. The misuse of marketing
research can harm or annoy customers. Increasing
resentment at what consumers regard as an invasion
of their privacy or sales pitch has become major
problem.
How Companies Obtain
Marketing Research?
1. In-house marketing research department
 P&G ; J&J
1. Hire an outside agency that specializes in marketing research.
 Marketing research firms fall into three categories:

a. Syndicated-service research firms –
 Organizations that regularly provide a standardized set of data to all
customers. Example: Nielsen Media Research
a. Custom marketing research firms-
 Hired to carry out specific projects. They design the study and report the
findings.
a. Specialty line marketing research firms –
 A marketing research firm like field service firm that specializes in
selected activities like:
 Field or telephone interviews
 Data-processing
 Focus groups

Example- Fuji Photo Film
 Most companies such as Fuji Photo Film, use
a combination of marketing research
resources to study their industries,
competitors, audiences and channel
strategies.

Management Uses of
Marketing Research
 Improve the quality of decision making
 Trace problems
 Focus on keeping existing customers
 Understand the ever-changing

marketplace

Managerial Value of MR
 Value
 Relevance
 Quality
 Timeliness
 Completeness
 Data vs. Information vs. Knowledge

Decisions That Draw On MR
Segmentation Which segment should be What benefits are most Which geographic area should
Decisions target? important for each segment? be entered?
Product Decisions What product features should be How should the product be What type of package is
included? positioned? preferred by the customers?
Distribution Decisions What type of retailer should be What should be the markup Should a few outlets be
used? policy? employed or many?
Advertising and What appeals should be used in In which vehicles should the What should the budget be?
Promotion Decisions advertising? advertising be placed?
Personal Selling What customer types have the How many salespeople are
Decisions most potential? needed?
Price Decisions What price level should be What sales should be offered What response should be
charged? during the year? made to a competitor’s price?
Branding Decisions What should be the name, What is the position that the How can brand loyalty be
symbol, logo and slogan that will brand should adopt vis-à-vis increased?
be associated with the product? competition?
Customer Satisfaction How should customer How often should it be How should customer
Decisions satisfaction be measured? measured? complaints be handled?
Barriers Limiting the Use of
Marketing Research
A narrow conception of the research
 Uneven caliber of researchers
 Poor framing of the problem
 Late and occasionally erroneous findings
 Personality and presentational differences

The Marketing Research Process
Define the problem
Develop research plan
Collect information Make

decision
Analyze information
Present findings

Step 1: Define the Problem
“A problem well defined is half solved”.
 Define the problem
 Specify decision alternatives
 State research objectives
Specify clearly :
•What is to be researched (the content, the scope)?
•Why is to be researched (the decisions that are to be made)?.
For instance, the problem may be the failure to meet sales objectives or
of falling sales. This may be due to the poor quality product or poor
advertising or lack of motivation of sales force and so on. The job of the
research people is to identify and define the problem. There should be a
proper diagnosis which will lead to an effective solutions.
Example:
 Background : American Airlines (AA) is constantly looking for new ways to
serve its passengers.
 Now it is reviewing many ideas like:
 To supply an internet connection with limited access to web pages and
email messaging;
 To offer 24 channels of satellite cable TV…..
 The marketing research manager is assigned to investigate how passengers
would rate these services and how much extra they would be willing to pay if a
charge was made.
 Research Problem – “will offering an in-flight Internet services create enough
incremental preferences and profits for AA to justify its cost against other
possible investments Americans might make?”.
 Research Objectives:-
 What type of passengers would respond to using an in-flight Internet service?
 How many passengers are likely to use an in-flight Internet service at different
price levels ?
 How many new passengers would choose AA?
 How important is Internet service to passengers relative to other services?

Objective setting example 1
 Management Problem:
Should a new product be launched?
 Research Objective:
Determine consumer preference and purchase
intentions for the proposed new product.

Should the ad campaign be changed?
To determine effectiveness of the current
campaign.

Should the price of the brand be increased?
To determine the price elasticity of demand and the
impact on sales and profits of various levels of price
changes.

Step 2: Develop research plan
A. B.
Data Research
Sources Approach
C. D.
Research Sampling
Instruments Plan
E.
Contact
Methods
A. Data
Sources
 The researcher can gather information from :
 Secondary data
 Data previously collected for any purpose other than the one at hand.
 Primary data
 Are freshly gathered data for a specific purpose or for a
specific research project.
Researchers usually start their investigation by examining secondary data to

see whether problem can be partly or wholly solved without collecting costly
primary data.

II Ai. Sources of Secondary
Data
Internal Corporate Information •Search Engines
and Professional
Directories
Government Agencies
•Sites of Interest to
Trade and Industry Associations Marketing Researchers
•Discussion Groups
Marketing Research Firms
Commercial Publications
News Media
II Ai.
Advantages of Secondary Data
 Saves time and money if on target
 Aids in determining direction for primary data

collection
 Pinpoints the kinds of people to approach
 Serves as a basis of comparison for other data

II Ai.
Disadvantages of Secondary Data
 May not be on target with the research problem
 Quality and accuracy of data may pose a problem

II Aii.
Advantages of Primary Data
 Answers a specific research question
 Data are current
 Source of data is known
 Secrecy can be maintained

II Aii.
Disadvantages of Primary Data
 Expensive
 Quality declines if interviews are lengthy
 Reluctance to participate in lengthy interviews
Disadvantages
Disadvantages are are
usually
usually offset
offset by
by the
the
advantages
advantages
of
of primary
primary data!
data!
II B. Research Approaches
Observation
Observation
Ethnographic
Ethnographic
Focus
Focus Group
Group
Survey
Survey
Behavioral
Behavioral Data
Data
Experimentation
Experimentation
II Bi. Observation Research
A research method that relies

on three types of observation:
 people watching people
 people watching an activity
 machines watching people

II Bi a. Mystery Shoppers
Researchers posing as
customers who gather
observational data about
a store and collect data about
customer/employee interactions.

II Bii. Ethnographic Research
 It is a particular observational approach that uses
concepts and tools from anthropology and other
social science disciplines to provide deep
understanding of how people live and work.
 Observes a customer or group of customers in their
natural settings and then interprets their behavior
based on an understanding of social and cultural
characteristics of that setting.
 Focuses on understanding the meaning of a product
or the consumption experience in a consumer’s life
 Takes time and is expensive
II Biii. Survey Research
The most popular technique for

gathering primary data in which
a researcher interacts with
people to obtain facts, opinions,
and attitudes.

II Biii. Research Instruments
For Survey Research
In-Home
In-Home Interviews
Interviews Mail
Mail Surveys
Surveys
Mall
Mall Intercept
Intercept Interviews
Interviews Executive
Executive Interviews
Interviews
Telephone
Telephone Interviews
Interviews Focus
(Home
(Home and
and Central
Central Location)
Location)
Focus Groups
Groups

Mall Intercept Interview
Survey research method that

involves interviewing people in
the common areas of shopping
malls.

Executive Interviews
A type of survey that involves

interviewing businesspeople at
their offices concerning
industrial products
or services.

Focus Group
Seven to ten people who
participate in a group discussion
led by a moderator.

Advantages of
On-Line Focus Groups
 Speed
 Cost-effectiveness
 Broad geographic scope

 Accessibility
 Honesty

II Bv.
Scanner-Based Research
A system for gathering

information from a single group
of respondents by continuously
monitoring the advertising,
promotion, and pricing they are
exposed to and the things they
buy.

II Bvi. Experiment
A method a researcher uses to

gather primary data.
The purpose of this type of
research is to develop cause-and-
effect relationships by eliminating
competing explanations of the
observed findings.
It requires formulation of
hypotheses.
IIC.
Planning the Research Design
Which
Which research
research How
How and
and when
when
questions
questions will
will data
data be
be
must
must be
be answered?
answered? gathered?
gathered?
?
How
How will
will
the
the data
data
be
be analyzed?
analyzed?

II D. Research Instruments
Questionnaires
Qualitative Measures
Technological Devices

IIDi.Questionnaire Design
Open-Ended
Open-Ended An
An interview
interview question
question that
that
Question
Question encourages
encourages anan answer
answer phrased
phrased in
in
Does
Does not
not specify respondent’s
possible
specify
possible answers
answers
respondent’s own
own words.
words.
Closed-Ended
Closed-Ended An
An interview
interview question
question that
that asks
asks
Question
Question the
the respondent
respondent toto make
make aa selection
selection
Specifies
Specifies possible from
possible
answers
answers
from aa limited
limited list
list of
of responses.
responses.
Scaled-
Scaled- A
A closed-ended
closed-ended question
question
Response
Response designed
designed to to measure
measure the
the intensity
intensity
Question
Question of
of aa respondent’s
respondent’s answer.
answer.
Question Types—Dichotomous
In arranging this trip, did you contact
American Airlines?
 Yes  No

Question Types—Multiple
Choice
With whom are you traveling on this trip?
 No one
 Spouse
 Spouse and children
 Children only
 Business associates/friends/relatives
 An organized tour group
Question Types—Likert Scale
Indicate your level of agreement / disagreement with
the following statement:
Small airlines generally give better service than large
ones.
 Strongly disagree
 Disagree
 Neither agree nor disagree
 Agree
 Strongly agree
Question Types—Semantic Differential
A scale connecting two bipolar words. The

respondent selects the point that represents his
or her opinion.
American Airlines
Large ………………………………...…….Small
Experienced………………….….Inexperienced
Modern……………………….…..Old-fashioned

Question Types—Importance Scale
A scale that rates the importance pf some attribute.

Airline food service is _____ to me.
 Extremely important
 Very important
 Somewhat important
 Not very important
 Not at all important

Question Types—Rating Scale
A scale that rates the importance of some attribute from
“poor” to “excellent”.
American Airlines’ food service is _____.
 Excellent
 Very good
 Good
 Fair
 Poor

Question Types—
Intention to Buy Scale
A scale that describes the respondent’s intention to buy.
How likely are you to purchase tickets on American
Airlines if in-flight Internet access were available?
 Definitely buy
 Probably buy
 Not sure
 Probably not buy
 Definitely not buy

Question Types—Completely
Unstructured
A question that respondents can answer in an almost

unlimited number of ways.
What is your opinion of American Airlines?

Question Types—Word Association
What is the first word that comes to your mind

when you hear the following?
Airline ________________________
American _____________________
Travel ________________________

Question Types—
Sentence Completion
When I choose an airline, the most important

consideration in my decision is:
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
__________________.

Question Types—Story Completion
“I flew American a few days ago. I noticed that

the exterior and interior of the plane had very
bright colors. This aroused in me the following
thoughts and feelings.” Now complete the story.
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
Question Types—Picture
(Empty Balloons)
A picture of two characters is presented, with one making a

statement. Respondents are asked to identify with the other and fill in
the empty balloon.

Question Types—Thematic
Apperception Test
Make up a story that reflects what you think is

happening in this picture.

Questionnaire Design
Clear
Clear and
and Concise
Concise
No
No Ambiguous
Ambiguous Language
Language
Qualities
Qualities Unbiased
Unbiased
of
of
Good
Good
Questionnaires
Questionnaires Reasonable
Reasonable Terminology
Terminology

Questionnaire Do’s and Don’ts
 Ensure questions are free  Avoid negatives
of bias  Avoid hypotheticals
 Make questions simple  Avoid words that could be
 Make questions specific misheard
 Avoid jargon  Use response bands
 Avoid sophisticated words  Use mutually exclusive
 Avoid ambiguous words categories
 Allow for “other” in fixed
response questions

II D ii. Qualitative Measures
Word
Word Association
Association
Projective
Projective Techniques
Techniques –– present
present an
an incomplete
incomplete
stimulus
stimulus and
and asked
asked to
to complete
complete it.
it.
respondents are asked to create a collage

of images from their own sources that
Visualization
Visualization
represents their thoughts feelings about
the research topic
Brand
Brand Personification-
Personification-
what
what kind
kind of
of person
person they
they think
think of
of when
when the
the
brand
brand is
is mentioned
mentioned
Laddering
Laddering –– asking
asking series
series of
of “why”
“why”
questions
questions
II D iii. Technological Devices
Galvanometers –measures the interests
or emotions aroused by exposure to a specific picture
or ad.
Tachistoscope – flashes an ad to a subject
with an exposure interval and asked them to describe
everything that he can recall
Eye cameras
Audiometers – attached to TV sets in

participating homes to record when the set is on and
to which channel is tuned.
GPS
IIE. Sampling Procedure
Sample
Sample A
A subset
subset from
from aa large
large population.
population.
The
The population
population from
from which
which
Universe
Universe aa sample
sample will
will be
be drawn.
drawn.

Sampling Plan
 Sampling unit: Who is to be surveyed?

 Sample size: How many people should be
surveyed?
 Sampling procedure: How should the
respondents be chosen?

Sampling Procedure
Universe Sample
Probability
Probability
Samples
Samples
Non-Probability
Non-Probability
Samples
Samples

Probability And Non-
Probability Samples
A
A sample
sample inin which
which every
every element
element inin
Probability
Probability the
the population
population has
has aa known
known statistical
statistical
Sample
Sample likelihood
likelihood of
of being
being selected.
selected.
Non-
Non- Any
Any sample
sample in
in which
which little
little or
or no
no
Probability
Probability attempt
attempt is
is made
made to
to get
get aa representative
representative
Sample
Sample cross-section
cross-section ofof the
the population
population

Table Probability and Nonprobability Samples
Probability Sample
Simple random sample Every member of the population has an

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 city blocks), and
the researcher draws a sample of the
groups to interview
07/02/11 Ms Seema Agarwal

Continued on next slide . .67.
Probability and Nonprobability Samples (Continued)
B. Nonprobability Sample
Convenience sample The researcher selects the most accessible

population members
Judgment sample The researcher selects 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

Types of Errors
Measurement
Measurement Error
Error
Sampling
Sampling Error
Error
Frame
Frame Error
Error
Errors
Errors
Associated
Associated
with
with Sampling
Sampling Random
Random Error
Error

Types of Errors
Error
Error when
when there
there is
is aa difference
difference
Measurement
Measurement between
between the
the information
information desired
desired and
and the
the
Error
Error information
information provided
provided by by research
research
Sampling
Sampling Error
Error when
when aa sample
sample somehow
somehow does
does not
not
Error
Error represent
represent the
the target
target population.
population.
Error
Error when
when aa sample
sample drawn
drawn from
from aa
Frame
Frame population
population differs
differs from
from the
the
Error
Error target
target population.
population.
Error
Error because
because thethe selected
selected sample
sample is
is
Random
Random an
an imperfect
imperfect representation
representation of
of
Error
Error the
the overall
overall population.
population.
II F. Contact Methods
Mail Questionnaire
Telephone
Interview
Personal
Interview
Online
Interview
Impact of the Internet
 Allows better and faster decision making
 Improves ability to respond quickly to customer
needs and market shifts
 Makes follow-up studies and research easier
 Slashes labor-and time-intensive research
activities

Advantages of internet
Surveys
Rapid
Rapid development,
development,
Real-time
Real-time reporting
reporting
Reduced
Reduced costs
costs
Advantages
Advantages ofof Personalized
Personalized questions
questions
Internet
Internet Surveys
Surveys and
and data
data
Improved
Improved respondent
respondent
participation
participation
Contact
Contact with
with the
the
hard-to-reach
hard-to-reach
Internet Samples
Unrestricted
Unrestricted AA survey
survey in
in which
which anyone
anyone with
with
Internet
Internet aa computer
computer andand modem
modem can
can fill
fill out
out
Sample
Sample the
the questionnaire.
questionnaire.
Screened
Screened An
An Internet
Internet sample
sample with
with quotas
quotas
Internet
Internet based
based onon desired
desired sample
sample
Sample
Sample characteristics.
characteristics.
Recruited
Recruited A
A sample
sample inin which
which respondents
respondents
Internet
Internet are
are prerecruited
prerecruited and
and must
must
Sample
Sample qualify
qualify to
to participate.
participate.
Other Uses of the Internet
Distribution
Distribution ofof requests
requests
for
for proposals
proposals
Collaboration
Collaboration inin the
the
management
management of
of aa research
research project
project
Other
Other Internet
Internet
Uses
Uses Data
Data management
management and and
by
by Marketing
Marketing on-line
on-line analysis
analysis
Researchers
Researchers
Publication
Publication and
and distribution
distribution
of
of reports
reports
Viewing
Viewing of
of presentations
presentations of
of
marketing
marketing research
research surveys
surveys
Marketing Research System
 Step 3: Collect the Information
 Step 4: Analyze the Information
 Step 5: Present the Findings
 Step 6: Make the Decision

Step 3: Collect the Information
3
Field Service Firm
A firm that specializes in

interviewing respondents on a
subcontracted basis.

Step 4: Analyze the Information
Cross-Tabulation
A method of analyzing data that

lets the analyst look at the
responses to one question in
relation to the responses to one
or more other questions.

Step 5: Present the Findings
Preparing and Presenting

the Report
 Concise statement of the research objectives
 Explanation of research design
 Summary of major findings
 Conclusion with recommendations

Following Up
 Were the recommendations followed?
 Was sufficient decision-making information included

in the report?
 What could have been done to make

the report more useful?

Step 6: Make the Decision
MARKETING INFORMATION
SYSTEM (MIS)
Consists of people, equipment &

procedures to gather, sort, analyze,
evaluate distribute needed timely &
accurate info to marketing decision
makers.

The
The Importance
Importance of
of
Information
Information
Marketing
Environment
Why
Information Competition
Customer Is
Needs Needed
Strategic
Planning

What
What is
is aa Marketing
Marketing
Information
Information System
System (MIS)?
(MIS)?
 Consists of people, equipment, and procedures to

gather, sort, analyze, evaluate and distribute needed,
timely, and accurate information to marketing
decision makers.
 Function: Assess, Develop and Distribute

Information.

The
The Marketing
Marketing Information
Information System
System
Marketing Managers
Marketing Information System
Distributing Assessing Information

Information Needs
Developing Information
Marketing Decisions and
Information Internal
Analysis Data
Communications
Marketing Marketing
Research Intelligence
Marketing
MarketingEnvironment
Environment
Functions
Functions of
of aa MIS:
MIS:
Assessing
Assessing Information
Information Needs
Needs
Conduct Interviews and Determine

What Information is
Desired, Needed, and Feasible to Obtain.
Monitors
Monitors Environment
Environment for
for Examine
Examine Cost/
Cost/ Benefit
Benefit of
of
Information
Information Managers
Managers Desired
Desired
Should
Should Have
Have Information
Information

Functions
Functions of
of aa MIS:
MIS: Developing
Developing Information
Information
Obtains
Obtains Needed
Needed Information
Information for
for Marketing
Marketing Managers
Managers
From
From the
the Following
Following Sources
Sources
Internal
InternalData
Data
Collection
Collectionof
ofInformation
Informationfrom
fromData
DataSources
SourcesWithin
Withinthe
theCompany
Company
From:
From:Accounting,
Accounting,Sales
SalesForce,
Force,Marketing,
Marketing,Manufacturing,
Manufacturing,Sales
Sales
Marketing
MarketingIntelligence
Intelligence
Collection
Collectionand
andAnalysis
Analysisof
ofPublicly
PubliclyAvailable
AvailableInformation
Informationabout
about
Competitors and the Marketing Environment
Competitors and the Marketing Environment
From:
From:Employees,
Employees,Suppliers,
Suppliers,Customers,
Customers,
Competitors,
Competitors, Marketing ResearchCompanies
Marketing Research Companies
Marketing
MarketingResearch
Research
Design,
Design,Collection,
07/02/11 Collection,Analysis,
Analysis,and
and
Ms Reporting
Reporting
Seema Agarwal of
ofData
Dataabout
aboutaa Situation
Situation 86
Functions
Functions of
of aa MIS:
MIS: Distributing
Distributing Information
Information
Information Must be Distributed

to the Right Managers at the Right Time.
Distributes
Distributes Routine
Routine Distributes
Distributes Nonroutine
Nonroutine
Information
Information for
for Information
Information for
for Special
Special
Decision
Decision Making
Making Situations
Situations

MIS – AN INTRODUCTION
 MIS begins and ends with marketing managers.
 It requires:
1. Assessment of Information Needs –
 interacts with the information users (marketing managers, internal
&external partners , & others who needs marketing information) to
assess information needs.
1. Development of Needed Information –
 from internal company databases, marketing intelligence activities &
market research
1. Distribution of Information-
 to managers in the right form at the right time to help them make
better marketing decisions.

MIS – Assessing Information
Needs
 A good marketing information system balances the
information users would like to have against what
they really need & what is feasible to offer.
 Too much information can be as harmful as too
little.
 The MIS must monitor the marketing environment in
order to provide decision makers with information
they should have to make key marketing decisions.

10 useful questions for determining
the information needs of marketing
managers.
1. What decisions do you regularly make?
2. What information do you need to make these decisions?
3. What information do you regularly get?
4. What special studies do you periodically request?
5. What information would you want that you are not getting
now?
6. What information would you want daily? Weekly?
Monthly? Yearly?
7. What magazines and trade reports would you like to see
on a regular basis?
8. What topics would you like to be kept informed of?
9. What data analysis programs would you want?
10. What are the four most helpful improvements that could be
made in the present marketing information system?
MIS - Developing Marketing
Information
Marketers can obtain the needed information from:
 Internal data,
 Marketing intelligence ,
 Marketing research

Internal Data
 Information in database can come from many sources.
 The accounting department prepares financial statements & keep detailed
records of sales, costs, & cash flows.
 Operations reports on production schedules , shipments,& inventories.
 The marketing department furnishes information on customer transactions
, demographics, psychographics, & buying behaviour.
 The customer service department keeps records of customer satisfaction
or service problems.
 The sales force reports on reseller reactions & competitor activities &
marketing channel partner provides data on point of sales transactions.
Frito-Lay uses its sophisticated internal information system to analyze daily sales
performance.
Each day Frito-Lay’s salespeople report their day’s efforts via a handheld computers
into Frito-Lay HQs in Dallas.
24 hours later, their marketing managers have a complete report analyzing the
previous day’s sales of Fritos, Doritos and other brands.
The system helps marketing managers make better decisions and makes the
salespeople more effective.
It07/02/11
greatly reduces the number of hours spent filling out reports, giving salespeople
Ms Seema Agarwal 92
extra time for selling.
The Marketing Intelligence System
A Marketing Intelligence System is a set of
procedures and sources used by managers
to obtain everyday information about
developments in the marketing environment.
The goal of marketing intelligence is to :

•improve strategic decisions making ,
•Assess & track competitors actions &
•provide early warning of opportunities &threats.
The company can also obtain important intelligence information from:

•suppliers,
•resellers, &
•key customers.
It can get information by observing competitors & monitoring their published
information.
Steps to Improve Marketing
Intelligence
Train
Train sales
sales force
force to
to scan
scan for
for new
new developments
developments
Motivate
Motivate channel
channel members
members to
to share
share intelligence
intelligence
Network
Network externally
externally
Utilize
Utilize aa customer
customer advisory
advisory panel
panel
Utilize
Utilize government
government data
data resources
resources
Purchase
Purchase information
information
Collect
Collect customer
customer feedback
feedback online
online
 Business Intelligence
 Process of gathering information and
analyzing it to improve business strategies,
tactics, and daily operations
 Competitive Intelligence
 Form of business intelligence that focuses on
finding information about competitors using
published sources, interviews, observations by
salespeople and suppliers in the industry,
government agencies, public filings and other
secondary sources including the Internet

Competitive
Intelligence
An intelligence system that
helps managers assess their
competition and vendors in
order to
become more efficient and
effective competitors.

Competitive Intelligence
 Can help identify a competitor’s

advantage
 Can help determine how

the competitor’s advantage
was achieved
Advantages of
Competitive
Intelligence
 Predict changes in business relationships
 Guard against threats
 Forecast a competitor’s strategy
 Develop a successful marketing plan
Sources of
Competitive Intelligence
Internet
Internet UCC
UCC Filings
Filings
Company
Company Personnel
Personnel Suppliers
Suppliers
Experts
Experts Newspapers/Periodicals
Newspapers/Periodicals
CI
CI Consultants
Consultants Yellow
Yellow Pages
Pages
Government
Government Agencies
Agencies Trade
Trade Shows
Shows
What is a Marketing Decision
Support System (MDSS)?
A marketing decision support system is a coordinated collection

of data, systems, tools, and techniques with supporting hardware
and software by which an organization gathers and interprets
relevant information from business and environment and turns it into
a basis for marketing action.
 An MDSS can create simulations or models to illustrate the likely
results of changes in marketing strategies or marketing
conditions

 Data Mining
 The process of searching through computer files
to detect patterns
 Focuses on identifying relationships that are not
obvious to marketers
 The data is stored in a huge database called a
data warehouse
 Can be an efficient way to make sense of huge
amounts of data
 Can help create customer profiles, pinpoint
reasons for customer loyalty or the lack thereof,
analyze the potential returns on changes in
pricing or promotion, and sales forecasts

Kotler on
Marketing
Marketing is
becoming a battle
based more on
information than on
sales power.

Topic 3 MIS and MR Lect

Загружено:

Сведения о документе

Исходное описание:

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Topic 3 MIS and MR Lect

Загружено:

Авторское право:

Доступные форматы

Topic 3

07/02/11 Ms Seema Agarwal 2

The process of planning,

07/02/11 Ms Seema Agarwal 3

To investigate a specific problem that needs a solution.

To discover new facts to deal with the problem.

•Market Research links consumer, customer and the public to the

07/02/11 Ms Seema Agarwal 4

07/02/11 Ms Seema Agarwal 6

Diagnostic  Explaining data

 Attempting to estimate the

07/02/11 Ms Seema Agarwal 7

 When value of research

07/02/11 Ms Seema Agarwal 9

1. Scientific Effective marketing research uses the principles of the

2. Research At its best, marketing research develops innovative

3. Multiple Marketing researchers shy away from overreliance on

07/02/11 Ms Seema Agarwal 10

4. Interdepence Good marketing researchers recognize that data are

6. Ethical Good marketing research benefits both the sponsoring

 Marketing research firms fall into three categories:

07/02/11 Ms Seema Agarwal 12

07/02/11 Ms Seema Agarwal 13

 Focus on keeping existing customers

 Understand the ever-changing

07/02/11 Ms Seema Agarwal 14

 Data vs. Information vs. Knowledge

07/02/11 Ms Seema Agarwal 15

 Poor framing of the problem

 Late and occasionally erroneous findings

 Personality and presentational differences

07/02/11 Ms Seema Agarwal 17

Develop research plan

Collect information Make

07/02/11 Ms Seema Agarwal 18

07/02/11 Ms Seema Agarwal 20

07/02/11 Ms Seema Agarwal 21

07/02/11 Ms Seema Agarwal 22

07/02/11 Ms Seema Agarwal 23

specific research project.

Researchers usually start their investigation by examining secondary data to

07/02/11 Ms Seema Agarwal 25

 Saves time and money if on target

 Aids in determining direction for primary data

 Pinpoints the kinds of people to approach

 Serves as a basis of comparison for other data

07/02/11 Ms Seema Agarwal 27

 May not be on target with the research problem

 Quality and accuracy of data may pose a problem

07/02/11 Ms Seema Agarwal 28

 Answers a specific research question

 Data are current

 Source of data is known

 Secrecy can be maintained

07/02/11 Ms Seema Agarwal 29

 Quality declines if interviews are lengthy

 Reluctance to participate in lengthy interviews

A research method that relies

07/02/11 Ms Seema Agarwal 32

07/02/11 Ms Seema Agarwal 33

The most popular technique for

07/02/11 Ms Seema Agarwal 35