Chapter 2

Managing Marketing Information

to Gain Customer Insights

Copyright © 2009 Pearson Education, Inc.

Chapter 4- slide 1
Publishing as Prentice Hall
 Learning Objectives
Topic Outline

• Assessing Marketing Information Needs

• Developing Marketing Information
• Marketing Research
• Analyzing Marketing Information
• Distributing and Using Marketing
Information
• Other Marketing Information
Considerations

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 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
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 Marketing Information and
Customer Insights
Customer Insights

• Companies are forming customer

insights teams
– Include all company functional areas
– Use insights to create more value for their
customers
– Customer controlled could be a problem

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 Marketing Information and
Customer Insights
Marketing Information Systems (MIS)

Marketing information system (MIS)

consists of people and procedures for:
– Assessing the information needs
– Developing needed information
– Helping decision makers use the
information for customer

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 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

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 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

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Developing Marketing Information
Marketers obtain information from

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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

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Developing Marketing Information
Marketing Intelligence

Marketing intelligence is the systematic

collection and analysis of publicly available
information about consumers, competitors,
and developments in the marketplace

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Developing Marketing Information
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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Developing Marketing Information
Marketing Research
Defining the Problem and Research Objectives

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 Marketing Research
Defining the Problem and Research Objectives

Exploratory Marketing research that gathers preliminary information

research to help identify problems and generate hypotheses

Is marketing research to better describe problems about

Descriptive situations, or markets. For example. Market potential of a
research product, population statistics or consumer behavior of the
product

Causal Marketing research that tests hypotheses about cause-

research effect relationships

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 Marketing Research
Defining the Problem and Research Objectives

For example:
Company X is facing a situation of falling sales
-> Exploratory research -> clarify the problem: what is the cause:
- The country's economy is in difficulty, the market's purchasing power is decreasing?
- Is your company's product outdated?
- Are competitors increasing their competitive activities?
Investigation results: hypothesis: due to competitors!
-> Descriptive Research: to describe competitors' capabilities and competitive activities
Identify:
- Competitors have increased their marketing budget quite a bit with many effective
competitive activities
- However, their price is quite high
Recommendation: Respond in the form of a price reduction
-> Causual research; effect relationships for discount campaigns
To determine:
- Does discounting increase revenue?
- Does a discount change the product's image?

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 Defining the Problem and
Research Objectives
• Identify the problem:
• Characteristics of each step in the product consumer
buying process…
• Research scope
• Place:
• Time:
• Research object:
• Population: target customers: young (16 - 45) - students,
office workers - average income - 2 million
• Level/classification of research: descriptive research

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Developing Marketing Information
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

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Developing Marketing Information
Marketing Research
Written Research Plan Includes:

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Developing Marketing Information
Marketing Research
Developing the Research Plan – Data resources

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

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Developing Marketing Information

Chapter 2- slide 19
Developing Marketing Information
Marketing Research

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Developing Marketing Information
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
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Developing Marketing Information
Market Research
Research Approaches

Survey research is the most widely used

method and is best for descriptive
information—knowledge, 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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Developing Marketing Information
Market Research
Research Approaches

Experimental research is best for

gathering causal information—
cause-and-effect relationships

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Developing Marketing Information
Marketing Research
Contact Methods

• Focus Groups
– Six to 10 people with a trained moderator
– Challenges
• Expensive
• Difficult to generalize from small group
• Consumers not always open and honest

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Developing Marketing Information
Marketing Research
Contact Methods

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Developing Marketing Information
Marketing Research
Online Research

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 Developing Marketing Information
Marketing Research
Sampling Plan

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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Developing Marketing Information
Marketing Research
Research Instruments

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 Developing Marketing Information
Marketing Research
Research Instruments - Questionnaires

• Closed-end questions include all possible

answers, and subjects make choices
among them
– Provide answers that are easier to interpret
and tabulate
• Open-end questions allow respondents to
answer in their own words
– Useful in exploratory research
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Developing Marketing Information
Marketing Research
Research Instruments

Chapter 2- slide 30
 2. Research design
• Data resource: Primary
• Researcher: outsource/DIY
• Research method: Survey research
• Research instrument: questionnaire
• Sampling:
• Sample: 200 target customer (sample size) –
random sampling/ convenience sampling (friends,
relatives…)
• Contact method: Internet/Door to door

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Developing Marketing Information
Marketing Research
Implementing the Research Plan

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 Analyzing Marketing Information
Customer Relationship Management (CRM)

• CRM consists of sophisticated software

and analytical tools that integrate
customer information from all sources,
analyze it in depth, and apply the results
to build stronger customer relationships

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Analyzing Marketing Information
Customer Relationship Management
Touchpoints

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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

Chapter 2- slide 35
Other Marketing Information
Considerations

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