Marketing Information Systems & Market Research

Marketing Environment

Customer  Needs

Why Information Is Needed Strategic Planning

Competition

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Many definitions of Marketing Research: › “Marketing research is the systematic design,

collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company.” [Philip Kotler › “the systematic gathering, recording and analyzing of all data about problems relating to the marketing of goods and services.” [The American Marketing Association] 

Basic Purpose of Marketing Research › Marketing research reduces uncertainty or error

in decision-making. The information collected by conducting marketing research is used for problem solving and decision making in various areas of marketing.

Can help the marketing manager to:

Is important because of

(1) Identify and define marketing problems and opportunities

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marketing

accurately; (2) Understand markets and customers

environment; 

and offer reliable prediction about

for strategically important areas;

(3) Develop marketing strategies and

and refine and evaluate them; (4) Facilitate efficient expenditure of funds;

Need for up-todate information

them;

actions to provide a competitive edge;

Rapid changing

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Importance of research as an integral part of better operation.

 Consists

of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers.

 Function:

Assess, Develop and Distribute Information.

Marketing Managers

Marketing Information System

Distributing Information

Assessing Information Needs

Marketing Decisions and Communications

Developing Information

Information Analysis

Internal Data

Marketing Research

Marketing Intelligence

Marketing Environment

Obtains Needed Information for Marketing Managers From the Following Sources Internal Data Collection of Information from Data Sources Within the Company From: Accounting, Sales Force, Marketing, Manufacturing, Sales Marketing Intelligence Collection and Analysis of Publicly Available Information about Competitors and the Marketing Environment From: Employees, Suppliers, Customers, Competitors, Marketing Research Companies Marketing Research Design, Collection, Analysis, and Reporting of Data about a Situation

Exploratory Research

•Gathers preliminary information that will help define the problem and suggest hypotheses.

Descriptive Research

•Describes things as consumers’ attitudes and demographics or market potential for a product.

Causal Research

•Test hypotheses about causeand-effect relationships.

Determine the Specific Information Needed Secondary

Primary Information collected for the specific purpose at hand.

Information that has been previously collected.

Both Must Be: Relevant Accurate Current Impartial

Observational Research Gathering data by observing people, actions and situations (Exploratory)

Survey Research Asking individuals about attitudes, preferences or buying behaviors (Descriptive) Experimental Research Using groups of people to determine cause-and-effect relationships (Causal)

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Qualitative research involves collecting, analyzing, and interpreting data by observing what people say or do. › Uses a smaller number of individuals and ‘observes’ them for

a time span of between 1 and 2 hours. -----“soft approach” 

Quantitative research is the traditional mainstream of marketing research. › It is also called “survey research”. Involves the use of

questions and large number of respondents within a brief span of time, say 15 to 45 minutes. › Its purpose is very specific-- e.g. a nationwide survey on the

Road Pricing System for cars. The ‘hard approach’ to marketing research.

1. Define the Problem 2. Establish Research Objective 3. Determine Research Design 4. Identify Information Needs and Sources 5. Determine Methods of Data Collection 6. Design Instrument for Data Collection 7. Determine Sample Plan and Sample Size 8. Collect Data 9. Analyze Data 10. Prepare and Present Final Report

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Once the symptoms of a problem are detected.. › Conduct some initial fact finding to determine the nature of the true problem. › Talk to others about the problem and conducting a preliminary literature search on the topic.

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In the initial stage, a problem may be recognized in a very broad and general form only. This may restrict the research program from being comprehensively designed. Both the researcher and the marketing manager (or the research client ) need to work together to formulate the problem into a precise and definite statement. This fact-finding exercise helps the researcher to refine his educated guess to a more accurate problem statement.

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“If you do not know what you are looking for, you won’t find it”

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Research objectives are related to and determined by the problem definition. In establishing research objectives, the researcher must answer the following questions: i)

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What specific information should the project provide? ii) If more than one type of information will be developed from the study, which is the most important? and finally, iii) What are the priorities? When specifying research objectives, development of hypotheses, might be very helpful.

When achieved, objectives provide the necessary

3. Research Design step involves the development of a research plan for carrying out the study. › There are a number of alternative research designs. The choice will largely depend on the research purpose. M A R K E T I N G R E S E A R C H Q U A L IT A T IV E R E S E A R C H E X P LO R A TO R Y F o c u s G ro u p ; O b s e r v a t io n ; O th e rs .

Q U A N T IT A T IV E R E S E A R C H D E S C R IP T IV E S u rv e y re s e a rc h

C A U S A L L a b o r a t o r y E x p e r im e n t F ie ld E x p e r im e n t

4. After defining the problem the researcher must determine what kind of information will best meet the research objectives. › Secondary information › Primary information

5. Marketing research information may be collected in many ways: › via mail, telephone, fax, Internet, or personal interview. › using consumer panels, consisting of individuals who have agreed to provide purchasing and media viewing behavior.

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A primary responsibilities of a marketing researcher is to design the data collection instrument or questionnaire in a manner so that it is easily understood by the respondent and administered to them.

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The researcher must determine the criteria that would enable a respondent to take part in a study. › The sampling design must result in the proper

sample of respondents being selected. Different sampling designs are available to researchers.

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The researcher must properly manage and oversee the data collection process. › If interview method is used, the researcher must

train interviewers and develop procedures for controlling the quality of the interviewing. › [This is not necessary if survey methodology is used, where the research instruments are completed by the respondents. ]

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The ‘raw’ research data needs to be edited, tabulated and analyzed to find the results and to interpret them. › the method used may be manual or computer based. › The analysis plan follows from the research objective of the study. › Association and relationships of variables are identified and discussed in the light of the specific marketing problem.

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The researcher has to submit a written report and often make an oral presentation to management or the client. › In conducting all the marketing research activities; the marketing researchers must adhere to ethical standards.

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Marketing Constructs

Operational definitions

Attitudes towards brands Number of people with positive, negative or neutral feeling Brand Awareness Percent of respondents that have heard of the brand Brand familiarity Consumers that have tried or seen the brand Brand loyalty How many times the respondent bought (used) the product Comprehension of product benefits Respondents opinion as to what the product does to them Demographics Respondents’ age, sex, marital status etc. Past purchase or use Percent of respondents that bought(used) the product/service Psychographics How consumers think and behave Purchase intention Number (%) of respondents planning to buy a product Reach The number (%) of households exposed to an advertisement schedule during a given period of time. Satisfaction How the respondents evaluate the performance