Chapter 2 Foundations of Marketing

Chapter 2: Marketing Research and Information Systems Ms.. Marketing Information and Customer Insights Customer Insights are: • Fresh and deep insights into customers needs and wants •

Chapter 2: Marketing Research and

Information Systems

Ms DANG THI MAI HUONG (SARAH) Faculty of Economics and Management International School of Thai Nguyen University

Email: sarahhuong11@gmail.com

Topic Outline

• Assessing Marketing Information Needs

• Developing Marketing Information

• Marketing Research

• Analyzing Marketing Information

• Distributing and Using Marketing Information

• Other Marketing Information Considerations

Marketing Information and Customer

Insights

Customer Insights are:

• Fresh and deep insights into customers needs and wants

• Difficult to obtain

– Not obvious

– Customer’s unsure of their behavior

• Not derived from more information but better information and more effective use of existing information

Marketing Information Systems (MIS)

Marketing information system (MIS) is a framework

for the day-to-day management and structuring

of information gathered regularly from sources both inside and outside an organization

Assessing Marketing Information Needs

MIS provides information to the company ’ s marketing and other managers and external partners such as suppliers, resellers, and marketing service agencies

• FedEx, for example, has developed interactive marketing systems to provide instantaneous communication between the company and its customers Through use of the telephone and Internet, customers can track their packages and receive immediate feedback concerning delivery

The company’s website provides valuable information about customer usage, and it allows customers to express directly what they think about

telecommunications and computer technology is allowing marketing information systems to cultivate one-to-one relationships with customers

Assessing Marketing Information

Needs

Characteristics of a Good MIS

• Balancing what the information users would like to have against what they need and what is feasible

to offer

User’s Needs

MIS Offerings

Developing Marketing Information

Marketers obtain information from

Internal data

Marketing intelligence

Marketing research

Developing Marketing Information

Internal Data Internal databases are electronic collections of

consumer and market information obtained from data sources within the company network

Marketing Intelligence Marketing intelligence is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketplace

Marketing on the Internet

• Electronic commerce (or e-commerce) business

exchanges conducted over the Internet using telecommunications tools such as web pages,e-mail, and instant/text messaging

• Electronic marketing (or e-marketing) The

strategic process of creating, distributing, promoting, and pricing products for targeted customers in the virtual environment of the Internet

• Blogs Web-based journals in which people can editorialize and interact with other Internet users

• Wikis Software that create an interface that enables users to add or edit the content of some types of websites (also called wikis or wikipages)

Marketing Research

• Marketing research is the systematic design,

collection, interpretation, and reporting of information to help marketers solve specific marketing problem or take advantage of marketing opportunities

• The purpose of marketing research is to inform

an organization about customers’ needs and desires, marketing opportunities for particular goods and services, and changing attitudes and purchase patterns of customers Market information increases marketers’ ability to respond to customer needs, which leads to improved organizational performance

The Marketing Research Process

Locating and Defining Research

Issues or Problems

• The first step in launching a research study is issue or problem definition, which focuses on uncovering the nature and boundaries of a situation or question related to marketing strategy

or implementation

Designing the Research Project

Research design, an overall plan for obtaining the information needed to address it

This step requires formulating a hypothesis and determining what type of research is most appropriate for testing the hypothesis to ensure that the results are reliable and valid

Types of Research

+) Exploratory Research: When marketers need

more information about a problem or want to make

a tentative hypothesis more specific, they may conduct exploratory research

The main purpose of exploratory research is to better understand a problem or situation and/or to help identify additional data needs or decision alternatives

• If marketers need to understand the characteristics of certain phenomena to solve a

particular problem, descriptive research can aid

them Such studies may range from general surveys of customers’ education, occupation, or age to specific surveys on how often teenagers eat at fast-food restaurants after school or how often customers buy new pairs of athletic shoes

• For example, if Nike and Reebok want to target more young women, they might ask 15- to 35-year-old females how often they work out, how frequently they wear athletic shoes for casual use, and how many pairs of athletic shoes they buy in a year

• Experimental research allows marketers to

make causal deductions about relationships Such experimentation requires that an independent variable (one not influenced by or dependent on other variables) be manipulated and the resulting changes in a dependent variable (one contingent

on, or restricted to, one value or set of values assumed by the independent variable) be measured

Marketing Research Defining the Problem and Research Objectives

Exploratory research Descriptive research Causal research

Marketing Research Developing the Research Plan

• Outlines sources of existing data

• Spells out the specific research approaches, contact methods, sampling plans, and

instruments to gather data

Marketing Research Written Research Plan Includes:

Secondary data consist of information that already

exists somewhere, having been collected for another purpose

Primary data consist of information gathered for

the special research plan

• Methods of collecting primary data:

• Sampling procedures

• Survey methods

• Observation

• Sampling: the process of selecting representative units from a total population

• There are two basic types of sampling: probability sampling and nonprobability sampling

• Probability sampling: A sampling technique in

which every element in the population being studied has a known chance of being selected for study

• Random sampling: A type of probability sampling

in which all units in a population have an equal chance of appearing in a sample

• Stratified sampling: A type of probability sampling

in which the population is divided into groups according to a common attribute, and a random sample is then chosen within each group

• Nonprobability sampling: A sampling technique

in which there is no way to calculate the likelihood that a specific element of the population being studied will be chosen

• Survey Methods: Marketing researchers often

employ sampling to collect primary data through mail, telephone, online, or personal-interview surveys The results of such surveys are used to describe and analyze buying behavior

• Mail survey: A research method in which respondents answer a questionnaire sent through the mail

• Telephone survey: A research method in which respondents’ answers to a questionnaire are recorded by interviewers on the phone

• Online survey: A research method in which respondents answer a questionnaire via e-mail

or on a website

• Personal-interview survey: A research method in which participants respond to survey questions face to face

• In-home (door-to-door) interview: A personal interview that takes place in the respondent’s home

• Focus-group interview: A research method involving observation of group interaction when members are exposed to an idea or a concept

Questionnaire Construction

• Questions must be clear, easy to understand, and directed toward a specific objective; that is, they must be designed to elicit information that meets the study’s data requirements

• The questions are usually of three kinds: ended, dichotomous, and multiple choice

Market Research 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

Marketing Research Implementing the Research Plan

Collecting the information

Processing the information

Analyzing the information

Interpret findings

Draw conclusions

Report to management