A Global

Perspective
Philip Kotler
Gary Armstrong
Swee Hoon Ang
4 Siew Meng Leong
Chin Tiong Tan
Oliver Yau Hon-
Ming
Managing Marketing
Information

4-1
Learning Objectives
After studying this chapter, you should be able
to:
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 marketing
researchers face, including public policy and ethics

4-2
Chapter Outline
1. Assessing Marketing Information Needs
2. Developing Marketing Information
3. Marketing Research
4. Analyzing Marketing Information
5. Distributing and Using Marketing Information
6. Other Marketing Information Considerations

4-3
Assessing Marketing
Information Needs
A marketing information system
(MIS) consists of people, equipment,
and procedures to gather, sort, analyze,
evaluate, and distribute needed, timely,
and accurate information to marketing
decision makers.
Assess the information needs
Develop needed information
Analyze information
Distribute information

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Assessing Marketing
Information Needs

The marketing information system

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Assessing Marketing
Information Needs
MIS provides information to the companys marketing
and other managers and external partners such as
suppliers, resellers, and marketing service agencies

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Assessing Marketing
Information Needs
A good MIS balances the information
users would like to have against what
they need and what is feasible to offer.
Issues to consider:
Amount of information
Availability of information
Costs

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Developing Marketing
Information
Marketers can obtain information from:
Internal data
Marketing intelligence
Marketing research

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Developing Marketing
Information
Internal Data

Internal databases are electronic

collections of consumer and market
information obtained from data
sources within the company network,
including accounting, marketing,
customer service, and sales
departments.

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Developing Marketing
Information
Advantages and Disadvantage of
Internal Databases

Advantages: Disadvantages:
Can be accessed Incomplete information
more quickly Wrong form for
Less expensive decision making
Timeliness of
information
Amount of information
Need for sophisticated
equipment and
techniques

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Developing Marketing
Information
Marketing Intelligence

Marketing intelligence is the systematic

collection and analysis of publicly available
information about competitors and
developments in the marketplace.
The goal of marketing intelligence is to:
Improve strategic decision making,
Assess and track competitors actions, and
Provide early warning of opportunities and
threats.

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Marketing Research
Marketing research is
the systematic design,
collection, analysis, and
reporting of data
relevant to a specific
marketing situation
facing an organization.

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Marketing Research
Steps in the marketing research process

1. Defining the problem and research objectives

2. Developing the research plan
3. Implementing the plan
4. Interpreting and reporting the findings

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Marketing Research
Defining the Problem and Research
Objectives

Types of objectives:
Exploratory research
Descriptive research
Causal research

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Marketing Research
Defining the Problem and Research
Objectives
Exploratory research is the gathering of
preliminary information that will help to define
the problem and suggest hypotheses.
Descriptive research is to describe things
such as market potential for a product or the
demographics and attitudes of consumers
who buy the product.
Causal research is to test hypotheses about
cause-and-effect relationships.

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Marketing Research
Developing the Research Plan

The research plan

Outlines sources of existing data
Spells out the specific research
approaches, contact methods, sampling
plans, and instruments that researchers
will use to gather data

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Marketing Research
Developing the Research Plan

The research plan is a written proposal that

includes:
Management problem
Research objectives
Information needed
How the results will help management
decisions
Budget

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Marketing Research
Developing the Research Plan

Secondary data consists of

information that already exists
somewhere, having been collected for
another purpose
Primary data consists of information
gathered for the special research plan

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Marketing Research
Gathering Secondary
Data
+ Advantages: Disadvantages:
Speed Availability
Cost Relevance
Provides data that Accuracy
a company cannot Impartial
collect on its own

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Marketing Research
Primary Data Collection

Research approaches
Contact methods
Sampling plan
Research instruments

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Marketing 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.

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Marketing Research
Research Approaches

Survey research is the most widely used

method and is best for descriptive
informationknowledge, attitudes,
preferences, and buying behavior.
Flexible
People can be unable or unwilling to answer
Gives misleading or pleasing answers
Privacy concerns

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Marketing Research
Research Approaches

Experimental research is best for

gathering causal information
Tries to explain cause-and-effect
relationships.

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Marketing Research
Contact Methods
Mail questionnaires
Collect large amounts of information
Low cost
Less bias with no interviewer present
Lack of flexibility
Low response rate
Lack of control of sample

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Marketing Research
Contact Methods

Telephone interviewing
Collects information quickly
More flexible than mail questionnaires
Interviewers can explain difficult questions
Higher response rates than mail questionnaires
Interviewers communicate directly with respondents
Higher cost than mail questionnaires
Potential interviewer bias

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Marketing Research
Contact Methods

Mail, telephone, and personal interviewing

Personal interviewing
Individual interviewing
Group interviewing

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Marketing Research
Contact Methods
Personal interviewing
Individual interviewing
Involves talking with people at home or the
office, on the street, or in shopping malls
Flexible
More expensive than telephone interviews
Group interviewing or focus group
interviewing
Involves inviting 6 to 10 people to talk with
a trained moderator

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Marketing Research
Contact Methods

Online marketing research

Internet surveys
Online panels
Online experiments
Online focus groups

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Marketing Research
Contact Methods
Online marketing research
Low cost
Speed to administer
Fast results
Good for hard-to-reach groups
Hard to control whos in the sample
Lack of interaction
Privacy concerns

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Marketing Research
Sampling Plan
A sample is a segment of the population
selected for marketing research to represent
the population as a whole.
Who is to be surveyed?
How many people should be surveyed?
How should the people be chosen?

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Marketing Research
Sampling Plan
Probability samples: Each population
member has a known chance of being
included in the sample.
Non-probability samples: Used when
probability sampling costs too much or takes
too much time.

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Marketing Research
Research Instruments
Questionnaires
Mechanical devices

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Marketing Research
Research Instruments
Questionnaires
Most common
Administered in person, by phone, or online
Flexible
Open-end questions
Closed-end questions

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Marketing Research
Research Instruments
Closed-end questions include all the
possible answers, and subjects are to make
choices among them.
Provides answers that are easier to interpret
and tabulate
Open-end questions allows respondents to
answer in their own words.
Useful in exploratory research

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Marketing Research
Implementing the Research Plan
Collecting data
Processing the information
Analyzing the information

Issues to consider:
What if respondents refuse to cooperate?
What if respondents give biased answers?
What if interviewer makes mistakes or takes shortcuts?

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Analyzing Marketing
Information
Customer Relationship Management
(CRM)
Consists of sophisticated software and
analytical tools
Integrates customer information from
all sources
Analyzes it in depth
Applies the results to build stronger
customer relationships

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Analyzing Marketing
Information
Customer Relationship Management
(CRM)
Data warehouses are comprehensive
companywide electronic databases of finely-tuned,
detailed customer information.
Uses:
To understand customers better
To provided higher levels of customer service
To develop deeper customer relationships
To identify high-value customers

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4-38
Analyzing Marketing
Information
Customer Relationship Management (CRM)
Touch points: Every contact between the
customer and company
Customer purchases
Sales force contacts
Service and support calls
Web site visits
Satisfaction surveys
Credit and payment interactions
Research studies

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Distributing and Using
Marketing Information
Information distribution involves
entering information into databases and
making it available in a time-useable
manner.
Intranet provides information to employees
and other stakeholders.
Extranet provides information to key
customers and suppliers

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Other Marketing Information
Considerations
Marketing Research in Small
Businesses and Nonprofit
Organizations
Need information about their industry,
competitors, potential customers, and
reactions to new offers
Must track changes in customer needs and
wants, reactions to new products, and changes
in the competitive environment

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Other Marketing Information
Considerations
Marketing Research in Small Businesses
and Nonprofit Organizations
Sources of marketing information:
Observing their environment
Monitoring competitor advertising
Evaluating customer mix
Visiting competitors
Conducting informal surveys
Conducting simple experiments

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Other Marketing Information
Considerations
Marketing Research in Small
Businesses and Nonprofit
Organizations
Sources of marketing information:
Secondary data
Trade associations
Chambers of commerce
Government agencies
Media

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Other Marketing Information
Considerations
International Marketing Research
Additional and different challenges:
Level of economic development
Culture
Customs
Buying patterns
Difficulty in collecting secondary data
Hard-to-reach respondents

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Other Marketing Information
Considerations
Public Policy and Ethics in Marketing
Research
Intrusions on consumer privacy
Consumer resentment
Misuse of research findings

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