Chapter Four

Managing Marketing Information to

Gain Customer Insights
 Learning Objectives
Topic Outline
• Marketing Information and Customer Insights
• 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 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
 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
Marketing Information System
In a marketing information system, the first step is
________.
1. distributing data to managers
2. forming focus groups
3. determining the marketing mix
4. assessing information needs
In a marketing information system, the first step is
________.
1. distributing data to managers
2. forming focus groups
3. determining the marketing mix
4. assessing information needs
A marketing information system begins and ends
with information from ________.
1. customers
2. databases
3. administrators
4. users
A marketing information system begins and ends
with information from ________.
1. customers
2. databases
3. administrators
4. users
 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
 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
Developing Marketing Information
Marketers obtain information from
 Developing Marketing Information
Internal Data

Internal databases are

electronic collections of
consumer and market
information obtained
from data sources
within the company
network
Marketing managers can access and work with
information in the _______ database to
identify opportunities and threats and to
evaluate performance.
1. internal
2. external
3. cost
4. profit
Marketing managers can access and work with
information in the _______ database to
identify opportunities and threats and to
evaluate performance.
1. internal
2. external
3. cost
4. profit
Which of the following is a problem with using
internal databases?
1. The information was collected for another reason.
2. The information is in the wrong format.
3. The information may be incomplete.
4. All of the above
Which of the following is a problem with using
internal databases?
1. The information was collected for another reason.
2. The information is in the wrong format.
3. The information may be incomplete.
4. All of the above
 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
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
The systematic collection and analysis of publicly
available information about your competitors
is referred to as ________.
1. marketing concept
2. marketing strategy
3. marketing intelligence
4. focus groups
The systematic collection and analysis of publicly
available information about your competitors
is referred to as ________.
1. marketing concept
2. marketing strategy
3. marketing intelligence
4. focus groups
Developing Marketing Information
Steps in the Marketing Research Process
The marketing research process includes four
steps. The final step of this process is
________.
1. defining your problem
2. developing a plan to collect data
3. collecting and analyzing data
4. interpreting and reporting your findings
The marketing research process includes four
steps. The final step of this process is
________.
1. defining your problem
2. developing a plan to collect data
3. collecting and analyzing data
4. interpreting and reporting your findings
What is often the hardest step in the marketing
research process?
1. Defining the problem
2. Developing the research plan
3. Implementing the research plan
4. Reporting the findings
What is often the hardest step in the marketing
research process?
1. Defining the problem
2. Developing the research plan
3. Implementing the research plan
4. Reporting the findings
Developing Marketing Information
Marketing Research
Defining the Problem and Research Objectives
________ research is marketing research to test
hypotheses about cause-and-effect
relationships.
1. Causal
2. Exploratory
3. Descriptive
4. Written
________ research is marketing research to test
hypotheses about cause-and-effect
relationships.
1. Causal
2. Exploratory
3. Descriptive
4. Written
The objective of _____ is to gather preliminary
information that will help define the problem
and suggest reasons.
1. causal research
2. competitive research
3. descriptive research
4. exploratory research
The objective of _____ is to gather preliminary
information that will help define the problem
and suggest reasons.
1. causal research
2. competitive research
3. descriptive research
4. exploratory research
 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
Developing Marketing Information
Marketing Research
Written Research Plan Includes:
Developing Marketing Information
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
________ consist(s) of information that already
exists, having been collected prior to the
research plan.
1. Primary data
2. Secondary data
3. Exploratory data
4. Focus groups
________ consist(s) of information that already
exists, having been collected prior to the
research plan.
1. Primary data
2. Secondary data
3. Exploratory data
4. Focus groups
Research approaches, contact methods, sampling
plans, and research instruments are decisions
that need to be made in the ______ data
collection process.
1. secondary
2. primary
3. external
4. internal
Research approaches, contact methods, sampling
plans, and research instruments are decisions
that need to be made in the ______ data
collection process.
1. secondary
2. primary
3. external
4. internal
Developing Marketing Information
Developing Marketing Information
Marketing Research
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
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
 Developing Marketing Information
Market Research
Research Approaches

Experimental research is best for gathering

causal information—cause-and-effect
relationships
Experiments involving matched groups of subjects
—giving them different treatments, controlling
unrelated factors, and checking for different
responses—is a type of __________.
1. causal information
2. descriptive information
3. secondary data
4. ethnographic research
Experiments involving matched groups of subjects
—giving them different treatments, controlling
unrelated factors, and checking for different
responses—is a type of __________.
1. causal information
2. descriptive information
3. secondary data
4. ethnographic research
The three types of research approaches a
marketer may use are ________, ________,
and ________.
1. surveys; observations; historic reviews
2. observations; surveys; databases
3. observations; experiments; surveys
4. experiments; databases; surveys
The three types of research approaches a
marketer may use are ________, ________,
and ________.
1. surveys; observations; historic reviews
2. observations; surveys; databases
3. observations; experiments; surveys
4. experiments; databases; surveys
 Developing Marketing Information
Marketing Research Strengths and
Weakness of Contact Methods
Mail Telephone Personal Online
Flexibility Poor Good Excellent Good
Quantity of data Good Fair Excellent Good
collected
Control of Excellent Fair Poor Fair
interviewer effects
Control of sample Fair Excellent Good Excellent

Speed of data Poor Excellent Good Excellent

collection
Response rate Poor Poor Good Good

Cost Good Fair Poor Excellent

 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
Developing Marketing Information
Marketing Research
Contact Methods
Developing Marketing Information
Marketing Research
Online Research
 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?
Which of the following is not one of the decisions
a marketer must make when designing a
sample?
1. Who should be sampled
2. How many people should be sampled
3. How the people in the sample should be chosen
4. What type of research method should be utilized
Which of the following is not one of the decisions
a marketer must make when designing a
sample?
1. Who should be sampled
2. How many people should be sampled
3. How the people in the sample should be chosen
4. What type of research method should be utilized
 Developing Marketing Information
Marketing Research
Sampling Plan – Types of Samples
Probability Sample
Simple random sample Every member of the population has a known and equal
chance of selection
Stratified random The population is divided into mutually exclusive groups
sample and random samples are drawn from each group
Cluster (area) sample The population is divided into mutually exclusive groups
and the researcher draws a sample
Nonprobability Sample
Convenience sample The research selects the easiest population members
Judgment sample The researcher uses their judgment to select population
members
Quota sample The researcher finds and interviews a prescribed number
of people in each of several categories
Developing Marketing Information
Marketing Research
Research Instruments
 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
If a marketer wanted to collect large amounts of
information at a low cost per respondent, she
could use ________.
1. personal interviews
2. mail questionnaires
3. focus groups
4. approach interviews
If a marketer wanted to collect large amounts of
information at a low cost per respondent, she
could use ________.
1. personal interviews
2. mail questionnaires
3. focus groups
4. approach interviews
If a marketer wanted to collect information quickly
and allow for flexible answers, he should use
________.
1. telephone interviews
2. mail questionnaires
3. focus groups
4. approach interviews
If a marketer wanted to collect information quickly
and allow for flexible answers, he should use
________.
1. telephone interviews
2. mail questionnaires
3. focus groups
4. approach interviews
Interviewer bias is often greater with ________.
1. telephone interviews
2. mail questionnaires
3. focus groups
4. online surveys
Interviewer bias is often greater with ________.
1. telephone interviews
2. mail questionnaires
3. focus groups
4. online surveys
If an interviewer wanted to reach the teen market,
a fast and low-cost method would be to use
________.
1. telephone interviews
2. mail questionnaires
3. focus groups
4. online surveys
If an interviewer wanted to reach the teen market,
a fast and low-cost method would be to use
________.
1. telephone interviews
2. mail questionnaires
3. focus groups
4. online surveys
Developing Marketing Information
Marketing Research
Research Instruments
Developing Marketing Information
Marketing Research
Implementing the Research Plan
 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
Analyzing Marketing Information
Customer Relationship Management
Touchpoints
 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
Other Marketing Information
Considerations
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright © 2010 Pearson Education, Inc.

Publishing as Prentice Hall