chapter 6 information system & marketing research-marketing management
TRANSCRIPT
Dr S.L Gupta6-1
Information System & Marketing Research
6-1
Information System & Marketing Research
6Chapter
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Information System & Marketing Research
Marketing Information Systems (MIS)
The term ‘Marketing Information Systems’ refers to a programme for managing
and organising information gathered by an organisation from various internal
and external sources.
Information sources for MIS include a company’s internal records, marketing
databases, marketing intelligence systems, marketing research, and
information supplied by independent information suppliers.
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InternalSources
Elements of MIS
ExternalSources
Marketing Database
Data RetrievalSystem
Information for
MarketingDecisions
Evaluation of Information Needs
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DatabasesA database refers to the collection of comprehensive information about
customers and prospects such as demographic and psychographic profiles,
products and services they buy, and purchase volumes, etc., arranged in a
manner that is available for easy access and retrieval.
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Internal RecordsInternal database is the most basic starting point in developing a strong MIS.
Internal record systems help in tracking what is selling, how fast, in which
locations, to which customers, etc.
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Information System & Marketing Research
External SourcesCensus Bureau is one key source of information regarding various demographic
variables. Besides Census Bureau of India, other sources include Newspapers,
Trade Publications, Technical Journals, Magazines, Directories, Balance Sheets
of companies, Syndicated and published research reports.
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Information System & Marketing Research
Computer Networks and Internet
Present day computer networks enable marketers to access data sources and
customers with immediate information about products and performance.
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Information System & Marketing Research
Data Mining and Data WarehousingThe term ‘data mining’ refers to automated data analysis of large amount of
data stored in a data warehouse. Data mining creates customer database,
which is extremely important for all narrowly defined target-marketing efforts.
Data mining also leads to build database on resellers, distribution channels,
media, etc. Data warehousing refers to storing subject-based, integrated, non-
volatile, time variant data in support of managerial decisions.
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Marketing Intelligence Systems
Marketing intelligence system refers to systematic and ethical approach,
procedures, and sources that marketing managers use to gather and analyse
everyday information about various developments with regard to competitors
and other business trends in the marketing environment.
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Information System & Marketing Research
Marketing Research Process
It helps in identifying consumer needs and market segments, furnishes
information necessary for developing new products and formulating marketing
strategies, enables managers to measure the effectiveness of marketing
programmes and promotional activities, develops economic forecasting, helps
in financial planning, and quality control.
For conducting marketing research, companies develop systematic
procedures for collecting, recording, and analysing data from secondary and
primary sources to help managers in making decisions.
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Defining Marketing Research“Marketing Research is the function which links the consumer, customer, and
public to the marketer through information – information used to identify and
define marketing opportunities and problems; generate, refine, and evaluate
marketing actions; monitor marketing performance, and improve
understanding of marketing as a process.”
(Definition by American Marketing Association, according to Tull and Hawkins,
6th Ed.)
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Steps in Marketing Research Process
Define Problem& Set Objectives
Define Problem& Set Objectives
Define Problem& Set Objectives
Define Problem& Set Objectives
Define Problem& Set Objectives
Define Problem& Set Objectives
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Define the Marketing Problem and Set Objectives Problem Definition
Research Objectives: The research objective defines what information is
needed to solve the problem
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Design Research ProjectMarketing research design refers to the specification of methods for gathering
and analysing the data necessary to facilitate identifying or reacting to a problem
or opportunity.
To achieve accuracy and gain useful information through marketing research,
the research design should be developed carefully and strict standards should
be applied for collecting and tabulating the data.
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Many researchers have found it useful to consider three categories of research
based on the type of information required. These are briefly discussed below:
Exploratory Research: This category of research aims at discovering the
general nature of the problem and to correctly understand the involved variables.
Descriptive Studies: In such studies, information is collected from a
representative of respondents and the information collected is analysed by using
statistical methods.
Causal Research (Experimental Research): Such research studies are
conducted to establish cause and effect relationship between different variables.
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Data Collection ApproachThere are four basic methods for collecting data in marketing research. These include secondary data, observation data, survey data, and experimental data. The nature of collected data can be put under either secondary or primary category.
Data Collection Alternatives
Data Alternatives
Secondary Data Use ResearchServices
Primary Data
InternalRecords
Published Reports
Subscriptionto Service
One-TimePurchase
Exploratory Research
PrimaryStudy
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Secondary DataSecondary data is any information originally generated for some other purposes
rather than the current problem under consideration and can be either internal or
external to the organisation.
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Primary Data
In case the needed data are not available from secondary sources, it is dated,
accuracy is doubtful, or unreliable, it becomes necessary for the researcher to
obtain primary data through full-scale research. To collect primary data, the
researcher undertakes either qualitative research or quantitative research.
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Qualitative Research
Data collection techniques for qualitative studies include focus group, depth
interviews and projective techniques.
Four popular methods of data collection include:
Depth interviews
Focus group
Projective techniques
Laddering
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Depth InterviewsDepth interviews are designed to determine deep seated or repressed motives.
Focus GroupsFocus group is a popular technique for exploratory research and brings together about eight to ten people with similar backgrounds to meet with a moderator /analyst for a group discussion. The discussion is “focused” on a product, service or any other subject for which the research is conducted.
Focus groups can be helpful in:
Generating hypotheses about consumers and market conditions.
Suggesting refreshing new ideas.
Checking an advertisement, product package, or product concept to determine any flaws.
Understanding consumers’ motivations, lifestyles and personalities.
Doing a post-mortem on failed products.
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Projective Techniques
These techniques explore the underlying motives of individuals who consciously or unconsciously get involved in rationalisations and concealment because they may be reluctant to admit certain weaknesses or desires.
Some examples of projective techniques are:
Thematic Apperception Techniques (TAT)
Word Association Test
Sentence Completion Test
The Third-Person Technique
Laddering (Means-End Chain Model): The assumption here is that very specific product attributes are linked at levels of increasing abstraction to terminal values.
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Quantitative Research
There are three basic approaches to collecting data in quantitative study:
Observation: One important approach to gain an in-depth understanding of
consumers is to observe their behaviour in the process of buying and using
products.
Experimentation: In experimental studies, the researcher can test the
relative sales appeals for package designs, prices, promotional offers and
copy themes, etc., by designing suitable experiments to identify cause and
effect.
Survey: In a survey for data collection, consumers are aware of the fact that
they are being studied and participate actively. A survey can be conducted
by personal interview, by mail, or by telephone.
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Advantages and Limitations of Data Collection Methods
Personal Telephone Mailinterview survey
survey survey
Costs of data collection High Medium Low
Time required to collect data Medium Low High
Sample size for a given budget Small Medium Large
Data quantity per contact High Medium Low
Can reach widely dispersed sample No Maybe Yes
Reach to special locations Yes Maybe No
Level of interaction with respondents High Medium None
Degree of interview bias High Medium None
Presentation of visual stimuli Yes No Maybe
Response rate High Medium Low
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Data Collection Instruments:The method of data collection depends on the type of research. The primary
method of data collection for quantitative study is the questionnaire.
A questionnaire consists of a set of questions presented to respondents for
their responses.
Instead of using a questionnaire, sometimes researchers use a list of
statements and ask respondents to indicate their degree of agreement or
disagreement (called inventories).
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Researchers also use attitude scales to collect this type of evaluative data.
Attitude scales include Likert scales, Semantic differential scales, and Rank-
order scales.
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Sampling PlanA sample design addresses three questions: who is to be surveyed (sampling
unit), how many to survey (sample size), and how should the respondents be
chosen (the sampling procedure).
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Random Probability SamplingThe greatest accuracy is obtained from random probability samples because all
units in a population have a known and equal chance of being selected.
Non-probability sampling: This method involves the researcher’s personal
judgement and elements of the population do not have a known chance of being
selected, so there is no guarantee the sample is representative and the
researchers cannot be as confident in the validity of the responses.
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Analyse the InformationIt is important to appreciate that raw data by itself does not serve the
purpose of marketing research. After the research data has been collected,
it is time to gain valuable insight from the findings. The researcher tabulates
the data for analysis.
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Present the FindingsReport writing requires taking an objective look at the findings to see how
well the collected facts suit the research objectives to solve a stated
marketing problem.