1. 05 Managing Marketing Information Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin

2. LEARNING OBJECTIVES Describe the difference between market information systems and market research systems Identify how critical internal (inside the firm) information is collected and used in making marketing decisions Explain essential external (outside the firm) information collection methods Recognize the value of market research and its role in marketing Define the market research process Illustrate current research technologies and how they are used in market research 5-2

3. MAKING GOOD MARKETING DECISIONS – THE NEED TO KNOW Information is power! The right information at the right time and in the right format is essential for decision makers. A significant problem for most managers today is not having too little information, but having too much. 5-3

4. MAKING GOOD MARKETING DECISIONS – THE NEED TO KNOW Marketing managers need a system to design and execute research that generates precise information. Two fundamental types of market information needed today are: Related to broad areas of interest. Addresses a specific question. 5-4

5. The Nature of a Market Information System A Market Information System (MIS) is not a software package but a continuing process of identifying, collecting, analyzing, accumulating and dispensing critical information to marketing decision makers. 5-5

6. The Nature of a Market Information System What information should be collected by the system? What are the information needs of each decision maker? How does the system maintain the privacy and confidentiality of sensitive information? 5-6

7. Internal Sources Collecting Information Inside the Company Information is used to identify the problem. Information is used to proactively address issues before they become a problem. 5-7

8. Internal Information Sources Exhibit 5.2 CRM - Operations Documents Customer orders Marketing Documents and databases Customer inquiries Financial documents and databases Customer payments Internal Information Sources Salesperson generated data Salesperson information systems Management Documents Marketing Plans 5-8

9. From the Customer’s Order to Order Fulfillment Identify the frequency and size of customer orders Determine the actual cost of a customer order Rank customers based on established criteria like profitability Calculate the efficiency of the company’s production, and distribution system 5-9

10. Heard on the Street – Sales Information System Formal systems for collecting data (getting the data) Interpretation of data (analysis) Distribution of data (getting the analysis to decision makers and back into the field) 5-10

11. External Sources Collecting Information Outside the Company Most companies engage in collecting, analyzing, and storing data from the macro environment on a continuous basis known as marketing intelligence. 5-11

12. External Forces Affect Marketing Decisions Exhibit 5.3 External Forces Political/ Legal Environment Economic Conditions Technology Transformations Natural World Demographic Competition Population of Interest Ethnic Groups Geographic Changes 5-12

13. External Sources 5-13

14. External Sources 5-14

15. MARKETING RESEARCH SYSTEMS The Importance of Market Research to Managers Good Marketing Research… Follows a well defined set of activities and does not happen by accident. Enhances the validity of the information. Is impartial and objective. 5-15

16. The Marketing Research Process Exhibit 5.7 Define the Research Problem Establish Research Design Search Secondary Sources Collect the Data Analyze the Data Report the Findings 5-16

17. The MARKETING RESEARCH Process Management Research Deliverable Define the Research Problem 5-17

18. Research Design Activities EXHIBIT 5.8 5-18

19. Establish the Research Design 5-19

20. Establish the Research Design Exploratory research Clarify the research problem. Develop hypotheses for testing in descriptive or causal research. Gain additional insight to help in survey development or to identify other research variables for study. Answers the research question. 5-20

21. Establish the Research Design Descriptive research Identify the characteristics of our target market. Assess competitor actions in the marketplace. Determine how customers use our products. Discover differences across demographic characteristics (age, education, income) with respect to the use of our products or our competitors. 5-21

22. Establish the Research Design Benefit vs. Cost Time Until Decision Nature of the Decision Availability of Data 5-22

23. Nature of Data – What kind of data do we need? Primary Data Qualitative research Quantitative research Secondary Data 5-23

24. Nature of Data Collection – How Should the Data be Collected? Exploratory Research Techniques Focus group In-depth interview 5-24

25. Nature of Data Collection – How Should the Data be Collected? Descriptive Research Techniques Surveys Behavioral data Observational data Mechanical observation 5-25

26. Information Content – What Do We Need to Know? A critical part of research design involves determining exactly what information is needed and how to frame the questions to get that information. 5-26

27. Search Secondary Sources Government Sources Market Research Organizations The Internet 5-27

28. MARKETING RESEARCH Process Collect the Data Analyze the Data Report the Findings 5-28

29. MARKETING RESEARCH Process Market Research Technology Online Research Tools Online Databases Online Focus Groups Online Sampling 5-29

30. Market Research Challenges in Global Markets 5-30

31. Market Research Challenges in Global Markets 5-31

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