marketing research

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Marketing Information Systemsand

Market Research


Why is information needed?

• To evaluate performance

• To make timely decisions

• To make future plans and strategies


What is a Marketing Information System (MIS)?

A marketing information system consists of people, equipment, and procedures to gather, sort, analyze,

evaluate, and distribute needed, timely, and accurate information to

marketing decision makers.


Information Needs Probes

• What decisions do you regularly make?• What information do you need to make these

decisions?• What information do you regularly get?• What special studies do you periodically

request?• What information would you want that you

are not getting now?


Internal Records

• Order-to-payment cycle

• Sales information system

• Databases, warehousing, data mining

• Development of a ‘Marketing intelligence system’


Steps to Improve Marketing Intelligence

• Train sales force to scan for new developments

• Motivate channel members to share intelligence

• Networking

• Utilize government data sources

• Collect customer feedback online

• Purchase information


Secondary Commercial Data Sources

• From syndicated research companies and government sources


Sources of Competitive Information

• Independent customer goods and service review forums

• Distributor or sales agent feedback sites• Combination sites offering customer reviews and

expert opinions• Customer complaint sites• Public blogs• Social networks


Environmental Forces contributing to MIS

• Demographic

• Economic

• Socio-cultural

• Natural

• Technological

• Political-legal


Population and Demographics

• Population growth• Population age mix• Ethnic markets

• Educational groups• Household patterns• Geographical shifts


Economic Environment

• Income Distribution• Savings, Debt, and Credit


Social-Cultural Environment

• Views of themselves

• Views of others

• Views of organizations

• Views of society

• Views of nature

• Views of the universe


Natural Environment

• Shortage of raw materials

• Increased energy costs

• Anti-pollution pressures

• Governmental protections


Technological Environment

• Pace of change

• Opportunities for innovation

• Varying R&D budgets

• Increased regulation of change


Marketing Research


Why do we need to do marketing research?

• Marketers want insights to help them interpret past performance as well as plan future activities.

• They need: timely, accurate and actionable information about consumers and competition for launch and/or growth.


Market Research is all about:


Definition

• Systematic design, collection, analysis and reporting of data and findings

relevant to a specific marketing situation facing the company


Good Market Research can result in Good Business !


But Marketing Research

Jargon can be

confusing..


Let’s make it simpler..

Marketing research is the function that links, the consumer, customer, and public to the marketer

Research comprises defining problems, Formulating hypothesis or suggested solutions Collecting, organizing, and evaluating data Making deductions and reaching conclusions And at last carefully testing the conclusion to determine whether

they fit the formulation


Sources of Information

• Secondary Data

• Primary Data


Basic types of data:

• Quantitative: Census, housing, social security as well as electoral statistics and other related databases.

• Qualitative: Semi-structured and structured interviews, focus groups, field notes, observation records and other personal, research-related documents.


Classification of research

1. Basic research

2. Applied research

• a) Problem solving research

• b) Problem identification research.


Problem Solving Research

• Segmentation research

• Product research

• Pricing research

• Promotion research

• Distribution research


Problem Identification Research

• Market potential research

• Market share research

• Image research

• Forecasting research

• Business trend research


Why marketing research has evolved and grown ?


Answer:-

• Managers are separated from their final consumers

• Managers needs information from their final consumers


Managers are separated from their final consumers

Manufacturer

Retailer Services Org.

Final Consumer

Mkt. Manager


Managers needs information from their final consumers

ManufacturersRetailersSuppliers

CustomersNeeds

And Wants


Customer groupConsumer

EmployeesShareholdersSuppliers

MARKETING RESEARCH

Controllable Marketing Variables_______

ProductPricingPromotionDistribution

Uncontrollable Environmental Factors

EconomyTechnologyCompetitionLaw and RegulationsSocial and culture FactorsPolitical Factors

AssessingInformationNeeds

Providing Information

Marketing DecisionMaking

Marketing ManagersMarket Segmentation

Target Market SelectionMarketing ProgramsPerformance and Control


The role of marketing research in managerial decision making is explained further using the framework of the DECIDE model:

_________________________________________________D — Define the marketing problemE — Enumerate the controllable and uncontrollable decision factorsC — Collect relevant informationI — Identify the best alternativeD — Develop and implement a marketing planE — Evaluate the decision and the decision process


Applications of Marketing Research

Pricing Research Product Research Concept Testing Positioning Research Customer Satisfaction Research Branding Research Advertising Research Market Segmentation Sales Analysis


Types Of Research

• Descriptive vs. Analytical

• Applied vs. Fundamental

• Quantitative vs. Qualitative

• Conceptual vs. Empirical


Descriptive :-• Also known Statistical Research• Includes survey & facts• What age group buying a particular brand

Analytical :-• Use facts or information already available to

analyze the cause of problem


Applied Research

Designed to solve practical problem of the modern world


Fundamental Research

• Driven by a scientists in a scientific question• The main motivation is to expand Man’s knowledge,

not to create or invent something


Quantitative:-• Used to measure how many people feel, think or act in a

particular way

Qualitative :-• Used to help us understand how people feel and why they

feel as they do


Conceptual :-

• Related to some abstract ideas or theory

• It is generally used by philosopher and thinkers to develop new concepts or to reinterpret existing ones

Empirical :-

• Relies on experience or observation alone, often without due regard for system & theory


Characteristics of a good marketing research:

• Use of more scientific methods

• Cost and benefits

• Use of the Statistical method

• Alternative course of action


Research Instruments

• Questionnaires

• Qualitative Measures

• Technological Devices


Questionnaire Do’s and Don’ts

• Ensure questions are free of bias

• Make questions simple• Make questions specific• Avoid jargon• Avoid sophisticated

words• Avoid ambiguous words

• Avoid negatives• Avoid words that could be

misheard• Use response bands• Use mutually exclusive

categories• Allow for “other” in fixed

response questions


Question Types - Dichotomous

In arranging this trip, did you contact American Airlines?

Yes No


Question Types – Multiple Choice

With whom are you traveling on this trip?

No one

Spouse

Spouse and children

Children only

Business associates/friends/relatives

An organized tour group


Question Types – Likert Scale

Indicate your level of agreement with the following statement: Small airlines generally give better service than large ones.

Strongly disagree

Disagree

Neither agree nor disagree

Agree

Strongly agree


Question Types – Semantic DifferentialAmerican Airlines

Large ………………………………...…….Small

Experienced………………….….Inexperienced

Modern……………………….…..Old-fashioned


Question Types – Importance Scale

Airline food service is _____ to me.

Extremely important

Very important

Somewhat important

Not very important

Not at all important


Question Types – Rating Scale

American Airlines’ food service is _____.

Excellent

Very good

Good

Fair

Poor


Question Types –Intention to Buy Scale

How likely are you to purchase tickets on American Airlines if in-flight Internet access were available?

Definitely buy

Probably buy

Not sure

Probably not buy

Definitely not buy


Question Types –Completely Unstructured

What is your opinion of American Airlines?


Question Types –Word Association

What is the first word that comes to your mind when you hear the following?

Airline ________________________

American _____________________

Travel ________________________


Question Types –Sentence Completion

When I choose an airline, the most important consideration in my decision is: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________.


Question Types –Story Completion

“I flew American a few days ago. I noticed that the exterior and interior of the plane had very bright colors. This aroused in me the following thoughts and feelings.” Now complete the story. __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


Question Types –Picture (Empty Balloons)


Qualitative Measures

• Word association

• In-depth interviews

• Brand personification

• Story completion

• Thematic Apperception Test (TAT)


Sampling Plan

• Sampling unit: Who is to be surveyed?

• Sample size: How many people should be surveyed?

• Sampling procedure: How should the respondents be chosen?


Contact Methods

• Mail questionnaire

• Telephone interview

• Personal interview

• Online interview


Pros and Cons of Online Research

Advantages• Inexpensive• Fast• Accuracy of data,

even for sensitive questions

Disadvantages• Low response rate• Technological

problems • Inconsistencies


Barriers Limiting the Use of Marketing Research

• A narrow conception of the research

• Poor framing of the problem

• Late and occasionally erroneous findings

• Personality differences


What are Marketing Metrics?

Marketing metrics are the set of measures that helps marketers quantify,

compare, and interpret marketing performance.


Marketing MetricsExternal• Awareness• Market share• Relative price• Number of complaints• Customer satisfaction• Distribution• Total number of

customers• Loyalty

Internal• Awareness of goals• Commitment to goals• Active support• Resource adequacy• Staffing levels• Desire to learn• Willingness to change• Freedom to fail• Autonomy


What is Marketing-Mix Modeling?

Marketing-mix models analyze data from a variety of sources, such as retailer

scanner data, company shipment data, pricing, media, and promotion spending data, to understand more precisely the effects of specific marketing activities.


The Measures of Market Demand

• Potential market

• Available market

• Target market

• Penetrated market


Estimating Future Demand

• Survey of Buyers’ Intentions• Composite of Sales Force Opinions• Expert Opinion• Past-Sales Analysis• Market-Test Method

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