Chapter Four
Roadmap:
Previewing the Concepts
1. Explain the importance of information to the company and its understanding of the marketplace.
2. Define the marketing information system and discuss its parts.
3. Outline the steps in the marketing research process.
4. Explain how companies analyze and distribute marketing information.
The Situation
Firm began by offering
classically styled, high-quality leather handbags.
Women needed only two
purses in brown or black.
Mid-1990s: sales slowed. Consumer preferences
changed as more women entered the workforce.
Designer bags made
Coach’s look plain.
Coach – Research Revamps
Coach – Research Revamps
Strategy
Strategy
Case Study
Case Study
Research’s Role
Method: Interviews 14,000
women annually. Watches trends for “market voids.”
Key research findings:
1) desire for “fashion pizzazz” in handbags. 2) “Usage voids.”
New products are created
to fill voids (wristlets, fabric bags, Signature line, etc.).
The Importance of Marketing
Information
Companies need information about
their:
– Customers’ needs
– Marketing environment
– Competition
Marketing managers do not need more
Marketing Information System
An MIS consists of people, equipment,
and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.
The MIS helps managers to:
Assessing Information Needs
A good MIS balances the information
users would like against what they
really need and what is feasible to offer.
Sometimes the company cannot
provide the needed information
because it is not available or due to MIS limitations.
Have to decide whether the benefits of
Developing Marketing
Information
Internal Databases: Electronic collections of
information obtained from data sources within the company.
Marketing Intelligence: Systematic collection
and analysis of publicly available information about competitors and developments in the marketing environment.
Marketing Research: Systematic design,
Defining Problem & Objectives
Exploratory Research:
– Gathers preliminary information that will help define the problem and suggest hypotheses.
Descriptive Research:
– Describes things (e.g., market potential for a product, demographics and attitudes).
Causal Research:
The Marketing Research Process
Defining the problem and research
objectives
Developing the research plan
Implementing the research plan
Developing the Research Plan
Includes:
– Determining the exact information needed.
– Developing a plan for gathering it efficiently.
– Presenting the written plan to management.
Outlines:
– Sources of existing data
– Specific research approaches
– Contact methods
– Sampling plans
Gathering Secondary Data
Information that already exists
somewhere:
– Internal databases
– Commercial data services
– Government sources
Available more quickly and at a lower
cost than primary data.
Must be relevant, accurate, current, and
Primary Data Collection
Consists of information collected for
the specific purpose at hand.
Must be relevant, accurate, current, and
unbiased.
Must determine:
– Research approach
– Contact methods
– Sampling plan
Observational Research
The gathering of primary data by
observing relevant people, actions, and situations.
Ethnographic research:
– Observation in “natural environment”
Mechanical observation:
– People meters
Survey Research
Most widely used method for primary
data collection.
Approach best suited for gathering
descriptive information.
Can gather information about people’s
Experimental Research
Tries to explain cause-and-effect
relationships.
Involves:
– selecting matched groups of subjects – giving different treatments
– controlling unrelated factors
Contact Methods
Mail surveys
Telephone surveys Personal interviews
– Individual interviewing
– Focus group interviewing
Online marketing research – Surveys
Sampling Plan
Sample: segment of the population selected to represent the population as a whole.
Sampling requires three decisions: – Who is to be surveyed?
• Sampling unit
– How many people should be surveyed? • Sample size
– How should the people in the sample be chosen? • Sampling procedure
Primary Data Collection
Questionnaires:
– What questions to ask?
– Form of each question?
• Closed-ended • Open-ended
– Wording?
Primary Data Collection
Mechanical Devices:
– People meters
– Supermarket scanners
– Galvanometer
Implementing the Research Plan
Collecting the data
– Most expensive phase
– Subject to error
Processing the data
– Check for accuracy
– Code for analysis
Analyzing the data
Interpreting and Reporting
Findings
Interpret the findings Draw conclusions
Report to management
– Present findings and conclusions that will
Customer Relationship
Management (CRM)
Many companies utilize CRM.
– Capture customer information from all sources.
– Analyze it in depth.
– Apply the results to build stronger relationships.
Companies look for customer touch points. CRM analysts develop data warehouses and
Customer Relationship
Management (CRM)
Benefits of CRM:
– Offer better customer service and develop deeper customer relationships.
– Pinpoint and target high-value customers
more effectively.
Distributing and Using
Marketing Information
Routine information for decision
making
Nonroutine information for special
situations
Other Marketing Research
Considerations
Marketing research in small businesses
and nonprofit organizations
International marketing research
Public policy and ethics in marketing
research
– Consumer privacy
Rest Stop:
Reviewing the Concepts
1. Explain the importance of information to the company and its understanding of the marketplace.
2. Define the marketing information system and discuss its parts.
3. Outline the steps in the marketing research process.
4. Explain how companies analyze and distribute marketing information.
5. Discuss the special issues some
