marketing management chapter 06

8/9/2019 Marketing Management Chapter 06

1/29

SHH Kazmi, 2007

Excel BooksMarketing Management Text and Cases,S H H Kazmi6-1

Information System & Marketing Research

Marketing Management Text and Cases

Excel Books6-1

Information System

& MarketingResearch

6Chapter


2/29

SHH Kazmi, 2007



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 companys internal records, marketing

databases, marketingintelligence systems, marketing research, and

information supplied by independent information suppliers.


3/29

SHH Kazmi, 2007



Internal

Sources

Elements of MIS

External

Sources

Marketing

Database

Data Retrieval

System

Information

for

MarketingDecisions

Evaluation of Information Needs


4/29

SHH Kazmi, 2007



Databases

A databaserefers to thecollection ofcomprehensive 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 foreasy access and retrieval.


5/29

SHH Kazmi, 2007



Internal Records

Internal 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 whichcustomers, etc.


6/29

SHH Kazmi, 2007



External SourcesCensus Bureau is onekey source of information regarding various demographic

variables. Besides Census Bureau of India, other sources include Newspapers,

Trade Publications, Technical Journals, Magazines, Directories, Balance Sheets

ofcompanies, Syndicated and published researchreports.


7/29

SHH Kazmi, 2007



Computer Networks and Internet

Present day computernetworks enable marketers to access data sources and

customers with immediate information about products and performance.


8/29

SHH Kazmi, 2007



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.


9/29

SHH Kazmi, 2007



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 withregard to competitors

and other business trends in the marketing environment.


10/29

SHH Kazmi, 2007



Marketing Research Process

It helps in identifying consumerneeds and market segments, furnishes

information necessary for developing new products and formulating marketing

strategies, enables managers to measure theeffectiveness of marketing

programmes and promotional activities, develops economic forecasting, helpsin financial planning, and quality control.

Forconducting marketing research, companies develop systematic

procedures forcollecting, recording, and analysing data from secondary and

primary sources to help managers in making decisions.


11/29

SHH Kazmi, 2007



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 improveunderstanding of marketing as a process.

(Definition byAmerican MarketingAssociation, according to Tull and Hawkins,

6th Ed.)


12/29

SHH Kazmi, 2007



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


13/29

SHH Kazmi, 2007



Define the Marketing Problem and

Set Objectives

Problem Definition

Research Objectives:The

re

sea

rchobj

ectiv

ed

efin

es w

hat info

rmation is

needed to solve the problem


14/29

SHH Kazmi, 2007



Design Research ProjectMarketing research design refers to the specification of methods for gathering

and analysing the data necessary to facilitate identifying orreacting to a

problem or opportunity.

To achieve accuracy and gain useful information through marketing research,

theresearch design should be developed carefully and strict standards should

be applied forcollecting and tabulating the data.


15/29

SHH Kazmi, 2007



Many researchers have found it useful to consider threecategories ofresearch

based on the type of information required. These are briefly discussed below:

Exploratory Research: This category ofresearch 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 ofrespondents and the information collected is analysed by using

statistical methods.

Causal Research (Experimental Research):Suchresearch studies are

conducted to establishcause and effect relationship between different variables.


16/29

SHH Kazmi, 2007



Data Collection ApproachThere are four basic methods forcollecting data in marketing research. These

includesecondary data, observation data, survey data, and experimental data.

The nature ofcollected data can be put undereithersecondary orprimary

category.

Data Collection Alternatives

Data Alternatives

Secondary Data Use Research

Services

Primary Data

Internal

Records

Published

Reports

Subscription

to Service

One-Time

Purchase

Exploratory

Research

Primary

Study


17/29

SHH Kazmi, 2007



Secondary DataSecondary data is any information originally generated for some other purposes

rather than thecurrent problem underconsideration and can beeither internal or

external to the organisation.


18/29

SHH Kazmi, 2007



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 theresearcherto

obtain primary data through full-scaleresearch. To collect primary data, the

researcherundertakes eitherqualitative research orquantitative research.


19/29

SHH Kazmi, 2007



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


20/29


21/29

SHH Kazmi, 2007



Projective Techniques

These techniques explore the underlying motives of individuals who consciously

or unconsciously get involved in rationalisations and concealment because they

may bereluctant to admit certain weaknesses or desires.

Someexamples 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.


22/29

SHH Kazmi, 2007



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.


23/29

SHH Kazmi, 2007



Advantages and Limitations of Data Collection Methods

Personal Telephone Mail

interview 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


24/29

SHH Kazmi, 2007



Data Collection Instruments:The method of data collection depends on the type ofresearch. The primary

method of data collection for quantitative study is thequestionnaire.

Aquestionnaire consists of a set of questions presented to respondents for

theirresponses.

Instead of using a questionnaire, sometimes researchers use a list of

statements and askrespondents to indicate their degree of agreement or

disagreement (called inventories).


25/29

SHH Kazmi, 2007



Researchers also useattitude scales to collect this type ofevaluative data.

Attitude scales include Likert scales, Semantic differential scales, and Rank-

order scales.


26/29

SHH Kazmi, 2007



Sampling PlanA sample design addresses three questions: who is to be surveyed (sampling

unit), how many to survey (samplesize), and how should therespondents be

chosen (the samplingprocedure).


27/29

SHH Kazmi, 2007



Random Probability Sampling

The 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 theresearchers 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 theresponses.


28/29

SHH Kazmi, 2007



Analyse the InformationIt is important to appreciate that raw data by itself does not serve the

purpose of marketing research.After theresearch data has been collected,

it is time to gain valuable insight from the findings. Theresearchertabulates

the data for analysis.


29/29

SHH Kazmi, 2007



Present the FindingsReport writing requires taking an objective look at the findings to seehow

well thecollected facts suit theresearch objectives to solve a stated

marketing problem.

marketing management chapter 06

Documents