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Chapter 4

Marketing Research and Information Systems

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The Importance of Information

Companies need information about their: Marketing

environment Competition Customer needs

Managers don’t need more information, they need better information.

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What is a Marketing Information System (MIS)?

A MIS consists of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers.The MIS helps managers to:

1. Assess Information Needs,2. Develop Needed Information,3. Distribute Information.

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The Marketing Information System (Fig. 4.1)

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Information Managers

Would Like to Have

What They Really

Need & What is

Feasible to Offer

Functions of a MIS: Assessing Information Needs

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Internal DataInternal DataComputerized Collection of Information

from Data Sources (i.e. Accounting) Within the Company.

Computerized Collection of Information from Data Sources (i.e. Accounting)

Within the Company.

MarketingResearch

MarketingResearch

Design, Collection, Analysis, and Reporting of Data about a Specific

Marketing Situation Facing the Organization.

Design, Collection, Analysis, and Reporting of Data about a Specific

Marketing Situation Facing the Organization.

MarketingIntelligenceMarketing

Intelligence

Collection and Analysis of Publicly Available Information about

Competitors and the Marketing Environment (i.e.

Technological).

Collection and Analysis of Publicly Available Information about

Competitors and the Marketing Environment (i.e.

Technological).

Functions of a MIS: Developing Information

Information Needed by Managers Can be Obtained From:

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Functions of a MIS:Distributing Information

Information Must be Distributed to the Right Managers at the Right Time.

Distributes NonroutineInformation for

SpecialSituations

Distributes Routine Information for Decision Making

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Discussion Connections

What is the overall goal of a Marketing Information System (MIS)?How are individual components linked and what does each contribute? (See Figure 4.1, Slide #5)Apply the MIS framework to Coca-Cola. What does this company appear to be doing well?

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The Marketing Research Process (Fig. 4.2)

Defining the problem andresearch objectives

Developing theresearch planfor collectinginformation

Implementingthe research plan -- collecting and analyzing the data

Interpreting and reporting the findings

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Marketing Research ProcessStep 1. Defining the Problem & Research Objectives

ExploratoryResearch

DescriptiveResearch

CausalResearch

•Test hypotheses about cause- and-effect relationships.

•Tests hypotheses about cause- and-effect relationships.

•Gathers preliminary information that will help define the problem

and suggest hypotheses.

•Describes things as market potential for a product or the

demographics and consumers’ attitudes.

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Marketing Research ProcessStep 2. Develop the Research Plan

Research plan development follows these steps: Determining Specific Information Needs

Gathering Secondary information

Planning Primary Data Collection

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Information That Already Exists Somewhere.

+ Obtained More Quickly, Lower Cost.

- Might Not be Usable Data.

Develop the Research PlanGathering Secondary Information

Both Must Be:

Relevant

Accurate

Current

Impartial

Information Collected for the Specific Purpose at Hand.

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Online DatabasesOff er a weal th of i nformati onto market i ng deci si on makers.

Examples:

•Lexis Nexis

•Compuserve

•Dialog

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Observational Research

Gathering data by

observing people,

actions and situations

(Exploratory)

Experimental Research

Using groups of people to determine cause-and-

effectrelationships

(Causal)

Develop the Research Plan

Planning Primary Data Collection

Survey Research

Asking individuals

about attitudes,

preferences or buying

behaviors (Descriptive)

Research Approaches

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Develop the Research Plan Planning Primary Data Collection

Mail Telephone Personal Online

Flexibility Poor Good Excellent Good

Quantity of Data Collected

Good Fair Excellent Good

Control of Interviewer

Excellent Fair Poor Fair

Control of Sample

Fair Excellent Fair Poor

Speed of Data Collection

Poor Excellent Good Excellent

Response Rate Fair Good Good Good

Cost Good Fair Poor Excellent

Contact Methods (Table 4.3)

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Develop the Research Plan Planning Primary Data Collection

Who is to be surveyed?

(What Sampling Unit?)

How many should besurveyed?

How should thesample be

chosen?

Probability orNon-probability

sampling?Sample -

representative segment of the

population

Sampling Plans

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Develop the Research Plan

Planning Primary Data Collection

Mechanical Devices

• People Meters• Supermarket Scanners• Galvanometer• Tachistoscope• Eye Cameras

Questionnaire

• What questions to ask?• Form of each question?

•Closed-end•Open-end

• Wording?• Ordering?

Research Instruments

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Develop the Research Plan

Presenting the Research Plan

Summarize the plan in a written proposal and cover: Management problems addressed, Research objectives, Information to be obtained, Sources of secondary information, Methods for collecting primary data, Way the results will help management

decision making.

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Collecting the Data

Processing theData

Analyzing theData

Research Plan

Marketing Research ProcessStep 3. Implementing the Research Plan

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Marketing Research ProcessStep 4. Interpreting and ReportingFindingsResearcher Should Present Important Findings that are Useful in the Major

Decisions Faced by Management.

Step 1. Interpret the Findings

Step 2. Draw Conclusions

Step 3. Report to Management

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Other Marketing Research Considerations

MarketingResearch in

Small Businessesand

NonprofitOrganizations

MarketingResearch in

Small Businessesand

NonprofitOrganizations

InternationalMarketingResearch

InternationalMarketingResearch

Public Policyand

Ethics in

MarketingResearch

Public Policyand

Ethics in

MarketingResearch

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Review of Concept Connections

Explain the importance of information to the company.Define the marketing information system and discuss its parts.Outline the steps in the marketing research process.Compare the advantages and disadvantages of various methods of collecting information.Discuss the special issues some marketing researchers face, including public policy and ethics issues.