CHAPTER 3

Managing Marketing Information

to Gain Customer Insights
 THE MARKETING PROCESS

Understand Design a Construct an Building

the Customer - Integrated profitable Capture
marketplace driven marketing relationships value from
and marketing program that and customers
Customer strategy delivers create to create
needs & superior value customer profits and
wants delight customer
equity
 CUSTOMER INSIGHTS

Why did Apple succeed?

“Consumers are idiots”

CUSTOMER INSIGHTS

→ The ratio to young to adult

consumption of Coca-Cola was up by 7%.

What are the customer

insights of this
campaign?
 CUSTOMER INSIGHTS

“In today hypercompetitive world, the race for

competitive advantage is really a race for customer and
market insights”
There is no successful marketing campaign without finding the
customer insights

What is the customer insights?

 CUSTOMER INSIGHTS

Fresh understandings of customers and the

marketplace derived from marketing information
that become the basis for creating customer value
and relationships.
CUSTOMER
INSIGHTS
 CUSTOMER INSIGHTS

• Difficult to obtain
– Not obvious
– Customer is unsure of their behavior

• Marketers don’t need more information but better

information and more effective use of existing
information
→ Primary data and secondary data
 Secondary data and Primary data

Secondary data: consist of information that already

exists somewhere, having been collected for another
purpose

Primary data: consist of information gathered for the

special research plan
Managing Marketing Information to Gain Customer Insights
 Marketing Information Systems (MIS)

Marketing information system (MIS) consists of

people and procedures for:
– Assessing the information needs
– Developing needed information
– Helping decision makers use the information to
generate and validate actionable customer and
market insights
The marketing information system begins and ends with users

When launching a new product, what does a marketing manager

need to do?
Assessing their information needs and then delivering information
and insights that meet those needs
Lâm:
I think we all know why we’re here. Our last advertising campaign, which cost over 100m VND, has not had any
real impact on our sales levels. We need to find out what went wrong and fast.
Minh:
Well to do that we will need to conduct some market researchs; I’ll brief the research agency straight after this
meeting
Thắng:
But what are they going to research? This situation could have been caused by a number of factors. For instance,
it could have been the media buy, or the ads themselves, or the fact that we just used television ads without any
other support
Linh:
Maybe it wasn’t the ads at all. It could have been more aggressive competitor activities over the past few months
Ngọc:
Or maybe it was something that we did. Did we change our pricing during the period? Did we reduce sales
promotions because the money was going into heavy advertising instead?
Sơn:
I’ll have to check those details, but it’s a possibility. If we did reduce our sales promotions, then maybe we don’t
have a problem at all. Perhaps our advertising has increased the value of the brand and we are now selling the
same as before without the need to offer discounts and incentives
Lâm:
OK, there are a number of possibilities. Let’s start by making a list of all of the possibilities. Then we’ll review
the list and identify the most likely problem areas for further research
QUESTIONS:
1. What is the problem of the company?
2. What is the information needs that the firm should be
investigating?

→ Factors affecting advertising effectiveness

→ The ads/media buy

→ Competitor activities
→ Changing price
→ Reduce sales promotion
Interacting Developing needed information
Collections of consumer and market information obtained
from data sources within the company’s network
(Marketing, sales, customer service, accounting, operation …)
Interacting Developing needed information
 ➢ Understanding the
The systematic monitoring, collection, and
consumer environment
analysis of publicly available information
➢ Assessing and tracking
about consumers, competitors, and
competitors’ actions
developments in the marketing
➢ Providing early warnings of
environment
opportunities and threats
Providing secondary data – Doing Desk research
Interacting Developing needed information
 Marketing research is the systematic
design, collection, analysis, and reporting
of data relevant to a specific marketing
situation facing an organization

Secondary data + Primary data

 The Marketing Research process

Defining the
problem
 QUESTIONS:

→ The ads/media buy

→ Competitor activities
→ Changing price
→ Reduce sales promotion

→ Define the research problem?

 The Marketing Research process

To gather preliminary information

exploratory
that will help define problems and
research suggest hypotheses

To better describe marketing

Defining the Defining the problems, situations, or markets,
problem research descriptive
such as the market potential for a
objectives research product or the demographics and
attitudes of consumers.

causal To test hypotheses about cause

research and effect relationships
The Marketing Research process

Secondary data

Primary data
 Gathering Secondary data

➢ Start the research by gathering secondary data

➢ From internal database
➢ External sources (MI)
Primary
data
collection
Primary data collection
 Research Approaches

Observational research: involves gathering primary

data by observing relevant people, actions, and
situations

Ethnographic research involves sending trained

observers to watch and interact with consumers in
their natural environment
 Research Approaches

Survey research is the most widely used method and

is best for descriptive information—knowledge,
attitudes, preferences, and buying behavior
➢ Flexible
➢ People can be unable or unwilling to answer
➢ Gives misleading or pleasing answers
➢ Privacy concerns
 Research Approaches

Experimental research is best for gathering causal

information—cause-and-effect relationships
Primary data collection
 Contact Methods
Mail, Telephone, and Personal Interviewing:
➢ Mail questionnaires can be used to collect large amounts of information at a
low cost per respondent
➢ Telephone interviewing is one of the best methods for gathering information
quickly, and it provides greater flexibility than mail questionnaires
➢ Personal interviewing takes two forms:
+ individual interviewing: talking with people in their homes or offices, on
the street, or in shopping malls
+ group interviewing: consists of inviting small groups of people to meet
with a trained moderator to talk about a product, service, or organization
 Contact Methods

Online marketing research: Collecting primary data through

internet and mobile surveys, online focus groups, consumer
tracking, experiments and online panels and brand communities.
 Internet and mobile surveys

Include a questionnaire on its web or social media sites or

use email or mobile devices to invite people to answer
questions

➢ Quantitative research
 Online focus groups

Gathering a small group of people online with a trained

moderator to chat about a product, service, or organization
and gain qualitative insights about consumer attitudes and
behavior

➢ Qualitative research
 Contact Methods

Online marketing research: Advantages and disadvantages

Primary data collection
 Sampling plan

Sample: A segment of the population selected for marketing

research to represent the population as a whole.

Designing the sample requires three decisions

➢ Who is to be studied (what sampling unit)?
➢ How many people should be included (what sample size)?
➢ How should the people in the sample be chosen (what
sampling procedure)?
 Types of sample
Probability Sample:
➢ Simple random sample: Every member of the population has a known
and equal chance of selection.
➢ Stratified random sample: The population is divided into mutually
exclusive groups (such as age groups), and random samples are drawn
from each group
➢ Cluster (area) sample: The population is divided into mutually
exclusive groups (such as blocks), and the researcher draws a sample of
the groups to interview.
Cluster sample
 Types of sample

Nonprobability Sample:
➢ Convenience sample: The researcher selects the easiest population
members from which to obtain information.
➢ Judgment sample: The researcher uses his or her judgment to select
population members who are good prospects for accurate information
➢ Quota sample: The researcher finds and interviews a prescribed number
of people in each of several categories.
Primary data collection
The Marketing Research process

To isolate important information and insights

The Marketing Research process

Present important findings and insights that are

useful in the major decisions faced by
management
 Analyzing and Using Marketing Information

• Customer Relationship Management (CRM): Managing detailed information

about individual customers and carefully managing customer touch points to
maximize customer loyalty
• Marketing Analytics: The analysis tools, technologies, and processes by
which marketers dig out meaningful patterns in big data to gain customer
insights and gauge marketing performance
• Distributing and Using Marketing Information: the marketing information
system must make information readily available to managers and others who
need it, when they need it
 USERS
exploratory research

Defining the Research descriptive research

research objectives
problem causal research
Assesing
information Approaches Observation
Developing
needs
research Survey
plan
Interacting Developing Experiment

Internal Marketing Marketing Mail

Implementi Contact
database intelligence Research
ng research methods Telephone
plan
Personal

Providing Interpreting Sampling Online

Providing plan
Secondary data and
Secondary data
+ Primary data reporting
Instrument

Analyzing
and using
 Roles of Marketing Research

➢ Research Can do ➢ Research can not do:

+ Define research problem
+ Devise best way to obtain
meaningful information
+ Provide such information
+ Support management
decisions
+ Define marketing problem
+ Determine information
required
+ Totally remove uncertainty
+ Replace management
decisions