Course Structure

Pricing
Marketing
Segmentation
Research

Distribution
Channels
Defining Strategic
Targeting NPD
Marketing Planning
Product
Strategies

Positioning
Marketing
Communications
Marketing Strategic Planning and the
Marketing Information System
Marketing information system
¨ A marketing information system (MKIS) is a
management information system (MIS) designed to
support marketing decision making.
¨ It as a "system in which marketing data is formally
gathered, stored, analyzed and distributed to
managers in accordance with their informational
needs on a regular basis."
The Components of a Modern
Marketing Information System
¨ A marketing information system has
four components:
1. The marketing intelligence system
2. The marketing research systems,
3. The internal reporting system. Internal reports include
orders received, inventory records and sales invoices
4. Marketing models or marketing decision support
systems.
The Components of a Modern
Marketing Information System
Developing Marketing Information
¨ Marketing Research is the systematic design,
collection, analysis and reporting of Data and
findings relevant to a specific marketing situation
facing the company.
¨ Types of research agencies:
¤ Syndicated research firm
¤ Specialty line research firm
¤ Custom research firm
¨ American Airlines Case
¤ AA wants to find out if offering an in-flight Internet service
create enough incremental preference and profit for AA to
justify its cost against other possible investments in service
enhancements.
¤ To help in designing the research, management should first
spell out the decisions it might face and then work
backward. Suppose management outlines these decisions:
1. Should AA offer an Internet connection?
2. If so, should AA offer the service to first-class only, or include
business class, and possibly economy class?
3. What price(s) should AA charge?
4. On what types of planes and lengths of trips should AA offer
the service?
¨ Now management and marketing researchers are
ready to set specific research objectives:
1. What types of passengers would respond most to using an
in-flight Internet service?
2. How many passengers are likely to use the Internet service
at different price levels?
3. How many extra passengers, in different classes, might
choose American because of this new service?
4. How much long-term goodwill will this service add to
American Airlines image?
5. How important is Internet service to passengers, in
different classes, relative to other services, such as a
power plug or enhanced entertainment?
¨ Secondary data is information that already exists
somewhere having been collected for another
purpose. It provides the starting point at low cost
and ready availability
¨ Primary data when the needed data do not exist,
dated, inaccurate, incomplete, or unreliable the
company has to collect information for the specific
purpose at hand
¨ Quantitative Research is primarily descriptive
research that seeks to ascertain magnitudes such as
the market size, market growth rate, or market
potential. Its methods emphasize objective
measurements and the statistical, mathematical, or
numerical analysis of data.
¨ Qualitative Research is primarily
exploratory research. It provides insights into the
problem or helps to develop ideas or hypotheses
for potential quantitative research.
Quantitative Research
¨ Research Approach: Survey Research involves
gathering primary data by asking people
questions about their knowledge, attitudes,
preference, and buying behaviors.
¨ Research Instrument: Questionnaires
¨ Questionnaire type: Close-ended questions
measure how many people think in a certain
way.
¨ Research Approach: Causal Research, which
tests hypotheses about cause-and-effect
relationships.
¨ The most scientifically valid research is

Experimental Research, which is the gathering of

primary data by selecting selective group of
subjects, giving them different treatments,
controlling related factors, and checking for
differences in group responses
¨ Research Approach:
Behavioral Research
Customers leave traces
of their purchasing
behavior in store
scanning data, catalog
purchases, and
customer databases.
Marketers can learn
much by analyzing
these data.
Qualitative Research
¨ Research Approach: Survey Research involves
gathering primary data by asking people
questions about their knowledge, attitudes,
preference, and buying behaviors.
¨ Research Instrument: Questionnaires
¨ Questionnaire type: Open-ended questions
measure how people think about a certain topic.
¨ Research Approach:
Observational
Research Researchers
can gather fresh data
by observing as
customers shop or
consume products.
¨ Focus Group Research
is a gathering of 6 to 10
people selected for
demographic, psychographic,
or other considerations and
convened to discuss various
topics at length.
¨ A moderator asks questions and
probes based on the marketing
managers’ agenda; the goal is
to uncover consumers’ real
motivations to say and do
certain things
¨ Sampling unit: Whom should we survey? In
the American Airlines survey, should the sampling
unit consist of only first-class business travelers, only
first-class vacation travelers, or both? Should it
include travelers under age 18? Both traveler and
spouse?
¨ Sample size: How many people should we
survey? Large samples give more reliable results,
but it’s not necessary to sample the entire target
population to achieve reliable results. Samples of
less than 1 percent of a population can often
provide good reliability, with a credible sampling
procedure.
¨ Sampling procedure: How should we
choose the respondents? Probability sampling
allows marketers to calculate confidence limits for
sampling error and makes the sample more
representative.
¨ Probability (random) sample:
¤ Random sampling is a part of the sampling technique in
which each sample has an equal probability of being
chosen.
¤ A sample chosen randomly is meant to be an unbiased
representation of the total population.
¤ In the case of random samples, mathematical theory is
available to assess confidence limits of sampling error
may be calculated
¨ Types of probability (random) sample:
1. A simple random sample is selected so that all samples
have an equal chance of being selected from the entire
population.
2. Stratified sampling The population is divided into mutually
exclusive groups (such as age groups), and random
samples are drawn from each group
3. Cluster sampling The population is divided into mutually
exclusive groups (such as city blocks), and the researcher
draws a sample of the groups to interview
¨ Non-probability sample:
¤ Non-probability sampling is defined as a sampling
technique in which the researcher selects samples based
on the subjective judgment of the researcher rather
than random selection.
¤ Non-probability sampling is a sampling method in
which not all members of the population have an equal
chance of participating in the study, unlike probability
sampling
¨ Non-probability sample:
¤ Non-probability sampling techniques cannot be used to
infer from the sample to the general population.
¤ Performing non-probability sampling is considerably
less expensive than doing probability sampling, but the
results are of limited value.
¤ Should be used when the cost and time involved in
probability sample is too high
¤ Non-probability sampling is most useful for exploratory
studies
¨ Types of non-probability sample:
¤ Convenience sampling. members of the population
are chosen based on their relative ease of access. To
sample friends, co-workers, or shoppers at a single
mall, are all examples.
¤ Case study - The research is limited to one group, often
with a similar characteristic or of small size.
¤ Snowball sampling - The first respondent refers a
friend. The friend also refers a friend, etc.
¨ Mail questionnaire
¤ Response rate is low and/or slow
¤ Respondents tend to give more
honest responses to personal
questions
¤ No interviewers involved to bias
the respondent’s answer
¨ Telephone interviewing
¤ Higher and quicker response
rate.
¤ Inconvenient to some people
¤ Unavailability of respondents
¨ Personal interviewing
¤ Intercept interviews

¤ Arranged interviews

¨ Online Marketing
Research
n Surveys
n Online focus groups
The Marketing Research Process