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The Marketing Information SystemMarketing Marketingmanagers Marketing Information System environment Developing information TestAnalysis markets Assessing Internal MarketingPlanning information Marketing needs records intelligence channelsImplemen- tation Competitors Control Marketing Publics Distributing decision Marketing information support research Macro- analysis environment forces Marketing decisions and communication
Marketing Intelligence System A marketing intelligence system is a set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment. Marketing managers collect marketing intelligence by reading books, newspapers, and trade publications; talking to customers, suppliers, and distributors; checking Internet sources; and meeting with other company managers.
Marketing Intelligence System Train and motivate the sales force to spot and report new developments. Motivate distributors, retailers, and other intermediaries to pass along important intelligence. Learn about competitors by purchasing their products; attending trade shows; scanning Web sites; attending stockholders’ meetings; talking to employees, dealers, suppliers, and shippers; collecting rivals’ ads; and reading business and trade publications. Set up a customer advisory panel. Purchase information from outside suppliers Set up marketing information center to collect and circulate marketing intelligence throughout the organization.
MDSSMarketing decision support system (MDSS) is a coordinated collection of data, systems, tools, and techniques with supporting software and hardware by which an organization gathers and interprets information from business and the environment and turns it into a basis for marketing action
Marketing Research Marketing research as the systematic design, collection, analysis, and reporting of data and findings that are relevant to a specific marketing situation facing the company.
Differences between MR in B2B and B2C Respondent differences; Sample and sample size differences; Content differences
Database Marketing What to get? How to get? How to maintain and update? How to use?
Database Marketing What to get Transaction history Demographic: job position, job responsibilities, job relationships, and contact addresses, decision maker, purchaser, influencers, gate keeper, initiators Psychographic information: attitude, belief, opinion
How to get Sales forces Distributors Trade shows Customer database, software Accounting information
Internal Sources Company Accounts Internal Reports and Analysis Stock Analysis Retail data - loyalty cards, till data, etc.
External Sources Government Statistics (ONS) EU - Euro Stat Trade publications Commercial Data - Gallup, Mintel, etc. Household Expenditure Survey Magazine surveys Other firms’ research Research documents – publications, journals, etc.
Market Research Sampling Methods: Random Samples – equal chance of anyone being picked May select those not in the target group – indiscriminate Sample sizes may need to be large to be representative Can be very expensive
Market Research Stratified or Segment Random Sampling Samples on the basis of a representative strata or segment Still random but more focussed May give more relevant information May be more cost effective
Market Research Quota Sampling Again – by segment Not randomly selected Specific number on each segment are interviewed, etc. May not be fully representative Cheaper method
Market Research Cluster Sampling Primarily based on geographical areas or ‘clusters’ that can be seen as being representative of the whole population Multi-Stage Sampling Sample selected from multi-stage sub-groups Snowball Sampling Samples developed from contacts of existing customers – ‘word of mouth’ type approach!
Market Research Primary Research Firsthand information Expensive to collect, analyse and evaluate Can be highly focussed and relevant Care needs to be taken with the approach and methodology to ensure accuracy Types of question – closed – limited information gained; open – useful information but difficult to analyse
Market Research Quantitative and Qualitative Information: Quantitative – based on numbers – 56% of 18 year olds drink alcohol at least four times a week - doesn’t tell you why, when, how Qualitative – more detail – tells you why, when and how!
Market Research Advantages of Market Research Helps focus attention on objectives Aids forecasting, planning and strategic development May help to reduce risk of new product development Communicates image, vision, etc. Globalisation makes market information valuable (HSBC adverts!!)
Market Research Disadvantages of Market Research Information only as good as the methodology used Can be inaccurate or unreliable Results may not be what the business wants to hear! May stifle initiative and ‘gut feeling’ Always a problem that we may never know enough to be sure!