© south-western publishing using marketing research 5.1 5.1 understanding the need for market...

© South-Western Publishing

USING MARKETING USING MARKETING RESEARCHRESEARCH

5.15.1 Understanding the Need for Market Information

5.25.2 Finding and Managing Marketing Information5.35.3 Using Marketing Research5.45.4 Collecting Primary Data


UNDERSTANDING THE NEED FOR UNDERSTANDING THE NEED FOR MARKETING INFORMATIONMARKETING INFORMATION

GOALSGOALS for Lesson 5.1Explain the importance of information in

targeting market segments.Describe the categories of information

marketers need.


Marketing to SegmentsMarketing to Segments

Marketing Segments – a group of similar consumers within a larger market

“Here’s what I think our customers will buy”

“What can we provide that will meet your needs as our customer”



The Global MarketCompetitionChanging Markets



Global MarketDevelop an international focusNumber of marketing segments become

even greaterGathering information about the country

and it people is highly important



CompetitionCompetition is becoming more intense for

most businessesTougher to ensure customers will prefer

your productGathering information about competitors’

products and marketing activities is important in analyzing strengths and weaknesses



Changing MarketsBasic needs vs. satisfying discretionary

desiresMore information available, more informed

decisionsBasic products vs. Advanced products

product development and technology


Categories of InformationCategories of Information

What types of information are needed?Every business needs specific information in

order to run a successful business

1. Consumers

2. Marketing mix

3. Business environment


Types of Information Needed for Types of Information Needed for Effective Marketing DecisionsEffective Marketing DecisionsConsumersConsumersagegenderincomeeducationfamily sizehome ownershipaddressoccupationhow money is spent

attitudesprimary needsproduct purchasespurchase frequencybrand preferencesinformation needsmedia preferencesshopping behavior


Types of Information Needed for Types of Information Needed for Effective Marketing DecisionsEffective Marketing DecisionsMarketing MixMarketing Mixbasic productsproduct featuresservicesproduct packagingguaranteesrepairsproduct pricecredit choicesdiscounts

location of saletype of store useddisplay proceduresuse of salespeoplepromotion methodspromotional

messagepromotional media


Types of Information Needed for Types of Information Needed for Effective Marketing DecisionsEffective Marketing Decisions

Business Environment Business Environment type of competitioncompetitors’ strengthscompetitors’ strategieseconomic conditionsgovernment regulationsnew technology

consumer protectionethical issuestax policiesproposed lawsinternational markets


Journal Entry #8Journal Entry #8

List 5 to 8 items (fast food, clothes, magazines) that you buy periodically to satisfy some need or want. Then note how your preferences have changed over the past years, and how those preferences have affected what you buy.


FINDING AND MANAGING FINDING AND MANAGING MARKETING INFORMATIONMARKETING INFORMATION

GOALSGOALS for Lesson 5.2Describe common sources of internal

and external market information.Explain the five critical elements of an

effective marketing information system.


Sources of InformationSources of Information

Steps of the ProcessSteps of the Process Identify the types of information needed.Determine the available sources of each type of

information.Evaluate each source to determine if it meets the

organization’s needs in term of accuracy, time, detail, and cost.

Select the sources that best meet the identified needs.Enter the information into a marketing information

system.


Internal Information Internal Information Sources – from within Sources – from within the org.the org.Internal Information - is information

developed from activities that occur within the organization. A great deal of information flows through a business on a daily basis.

Customer records and sales information

Production and operations reportsPerformance information


Customer Records / Sales Customer Records / Sales informationinformationhighly important for effective planningpurchase records (dates, quantities,

related purchases, accessories, payment types)

demographic information and customer needs

customer profiles and customer clubsRalph’s Club Card, Blockbuster Card


Production and Operations Production and Operations ReportsReportsproducts and services must be

availablequality standards must be metexpenses must be controlledchannel members must sharemarketing plan, balance sheets,

customer data sheets


Performance information Performance information

Performance information Sales, costs, quality, and customer satisfaction…

Measured 1 of 3 ways…

1. Past records (compare current to past)

2. Compare performance to similar businesses (external)

3. Compare actual perf. w/ expected perf.


External Information External Information Sources – Sources – understanding of understanding of factors OUTSIDE the factors OUTSIDE the organization.organization.

External Information - provides an understanding of factors outside the organization


External Information External Information Sources – Sources – understanding understanding of factors OUTSIDE the of factors OUTSIDE the organization.organization.

Government reportsCensus (U.S. Bureau of the Census)

5 or 10 years plus yearly updates (sometimes)

Trade and professional associationsJournals, newsletters, research reports, etc.


External Information SourcesExternal Information Sources – – understanding of factors OUTSIDE the understanding of factors OUTSIDE the organization. (continued)organization. (continued)

Business publicationsWSJ, Forbes, Business Week

Commercial data and information servicesNielsen (ratings), Dun & Bradstreet


Marketing Information Marketing Information SystemsSystems definition - an organized method of

collecting, sorting, analyzing, and retrieving information to improve the effectiveness and efficiency of marketing decisions


Marketing Information Marketing Information SystemsSystemsInput – the information that goes into the

system that is needed for decision makingRoutine information about customers, competitors

and business operation is used for marketing decisions.

Storage – is the resources used to maintain information, including equipment and procedures, so that it can be used when needed.Must protect the information or be organized so the

information can be located when needed.


Marketing Information Marketing Information SystemsSystemsAnalysis – is the process of summarizing,

combining, or comparing information so that decisions can be madeSummarizing, combining or comparing information

or data

Output – results of analysis given to decisions makersUsually written or graphical form


Marketing Information Marketing Information SystemsSystemsDecision Making – marketing

information system is used to improve decision making Some decisions are routine and some are

unique


Designing an MkIS Designing an MkIS – groups– groups

Input: What information is needed to develop and implement the marketing strategy?

Storage: How should the information be maintained so it is in a usable form and is easy to access when needed?

Analysis: What methods should be used to organize and study the information in order to make effective marketing decisions?

Output: How and when should the information be made available for most effective use?

Decision-Making: What ways should the information be used to improve marketing?


USING MARKETING USING MARKETING RESEARCHRESEARCHGOALSGOALS for Lesson 5.3Describe how to define and develop an

understanding of a problem as the first steps toward solving it.

Identify the steps needed to gather and study data relevant to a problem.

Explain how to prepare reports and present proposed solutions.


Implementing a Marketing Implementing a Marketing Research StudyResearch Study

1. Seeing the Problem Clearly

2.2. Gathering Information

3.3. Proposing a Solution


Seeing the Problem Seeing the Problem ClearlyClearlyMarketing research – a procedure designed to

identify solutions to a specific marketing problem through the use of scientific problem-solving

Define the problemAnalyze the situationDevelop a data-collection procedure

Secondary dataPrimary data


Gathering InformationGathering Information

Selecting the participantsPopulationRandom sampling

Collecting the dataAnalyzing the data

Numerical dataNon-numerical data


Visual Summaries of Visual Summaries of Marketing InformationMarketing Information

0

25

50

75

100 Bar Graph



0

2

4

6

8

10

1 2 3 4 5 6 7 8 9 10

Line Graph



Pie Chart


Proposing a SolutionProposing a Solution

Preparing reportsWho is the report being prepared for?Must clearly describe the purpose of the

study and the research procedures used

Presentation of resultsWritten with graphs and charts or oral

presentations with visual aids


Sections of a Research Sections of a Research ReportReportStatement of the problemReview of secondary dataResearch proceduresResults of the researchSummary and recommendations


COLLECTING PRIMARY COLLECTING PRIMARY DATADATAGOALSGOALS for Lesson 5.4Describe the purpose of marketing

research surveys.Explain the reasons for and limitations

of using observation.Define various types of marketing

research experiments.


Conducting SurveysConducting Surveys

Closed-ended questions – offers two or more choices (yes-no, agree-disagree, a-b-c-d)

Open-ended questions – develop their own answers (How was your shopping experience?)


Focusing on the IssuesFocusing on the Issues

Focus group – a small number of people brought together to discuss identified elements of an issue or problem

Questioning with clarityUnderstands what is being askedEncouraged to answer honestlyIs not directed toward one answer


Making ObservationsMaking Observations

Observation - collects information by recording actions without interacting or communication with the participant.Greater accuracy and objectivity More money and time Purchasing behavior


Making ObservationsMaking Observations

Recording devices includeTelevision camerasAudio recordersBar code scannersEye-tracking photography


Performing ExperimentsPerforming Experiments

Experiment – tightly controlled situations in which all important factors are the same except the one being studied.Hard to control many activitiesMust operate long enough to see any

significant results

Ex. – price effect on sales volume


Performing ExperimentsPerforming Experiments

Test marketing – specific cities or geographic areas in which marketing experiments are conducted (ex. – McDonalds)

Simulations – experiments where researchers create the situation to be studied (ex. – toys and play centers)


Group ActivityGroup Activity

At your table, create a survey, for one of the products below, that could be used to find out more about consumer’s acceptance and views of the product. The survey should be conducted on prospective consumers.

1. peanut butter and jelly potato chips,

2. electric powered scooter, 3. athletic shoes with attached in-line skates

© south-western publishing using marketing research 5.1 5.1 understanding the need for market...

Documents

segments marketing segments

market information

marketing research

marketing mix

marketing activities

information available

importance of information

specific information