MARKETING INFORMATION

SYSTEM

Session 7
 Marketing Research

The systematic and objective process

of generating information for aid in
making marketing decisions
 Process of Marketing Research
• Define the Problem
• Develop an Approach to the Problem
– Type of Study? Exploratory, Descriptive, Causal?
– Research Questions, Hypotheses
• Formulate a Research Design
– Methodology
– Questionnaire Design
• Fieldwork
• Prepare & Analyze the Data
• Prepare & Present the Report
Marketing Research Types

Basic research

Applied research
 Basic Research
• Attempts to expand the limits of
knowledge
• Not directly involved in the solution to a
pragmatic problem
 Basic Research Example
• Do consumers experience cognitive
dissonance in low-involvement
situations?
 Applied Research
• Conducted when a decision must be made
about a specific real-life problem
 Applied Research Example
• Should McDonalds add Italian pasta
dinners to its menu?
– Marketing research told McDonald’s it
should not
• Should Procter & Gamble add a high-
priced home teeth bleaching kit to its
product line?
– Research showed Crest Whitestrips would
sell well at a retail price of $44
 Scientific Method
• The analysis and interpretation of empirical
evidence (facts from observation or
experimentation) to confirm or disprove prior
conceptions
 Use of Marketing Research

– Identify & Evaluate Opportunities

– Analyze Market Segments
– Select Target Markets
– Plan & Implement Marketing Mixes
– Analyze Marketing Performance
• Performance Monitoring Research
 Identifying and Evaluating
Opportunities
Examples
• Mattel Toys investigates desires for play
experiences
• Home cooking is on the decline.
Purchase of precooked home
replacement meals is on the rise.
• Number of investors trading stock on
the Internet is growing.
 Analyze Market Segments and
Select Target Markets
Examples
• Cadillac investigates buyers’ demographic
characteristics
• MTV, monitoring demographic trends, learns
the Hispanic audience is growing rapidly
• Sears learns women, age 25-54 with average
household income of $38,000, are core
customers. Targets this market with "The Good
Life at a Great Price. Guaranteed. Sears."
 Plan and Implement
a Marketing Mix
• Price: Airtel does a competitive pricing analysis
• Distribution: Bajaj Auto. investigates dealer service
program.
• Product: Oreo conducts taste test, Oreo cookie vs.
Biskfarm cookie
• Promotion: How many consumers recall the “Life
Tastes Good. Coca Cola!” slogan?
Analyze Marketing Performance

• This year’s market share is

compared to last year’s.
• Did brand image change after
new advertising?
Performance-monitoring Research

• Research that regularly provides feedback for

evaluation and control
• Indicates things are or are not going as
planned
• Research may be required to explain why
something “went wrong”
Determining When to Conduct Marketing
Research

Time Constraints Availability of Data Nature of the Decision Benefits vs. Costs
Is the Does the
Information
Is sufficient Yes Yes decision of Yes information Yes Conduct
already on
time
hand
strategic value Marketing
available? or tactical exceed the Research
inadequate?
importance? research cost?

No No No No

Do Not Conduct Marketing Research

Potential Value of a Marketing Research
Effort Should Exceed Its Estimated Costs
Research expenditures
Decreased uncertainty Delay of marketing
Increased likelihood of decision and possible
correct decision disclosure of information
Improved marketing to rivals
performance and Possible erroneous
resulting higher profits research results

Costs
Value
 What is marketing information
system ?
System consisting of people, equipment
and procedures to gather, sort, analyze,
evaluate and distribute needed, timely and
accurate information to marketing decision
makers.
Marketing Information system supplies
three types of information.
• Recurrent Information
• Monitoring Information
• Requested Information
 •Recurrent Information
This is the data that an MIS supplies
periodically about the market share of a
specific product and customer’s awareness
of company’s brands. The data may be
supplied on weekly, monthly or yearly
basis.
 • Monitoring Information
This is the data obtained from the regular
scanning of certain sources. Marketing
managers may need data related to
competition or the industry. It is essential
so that marketing managers can be alert
and identify potential problems
 • Requested Information
This information is developed in response
to some specific request by the marketing
manager. Secondary data or primary data
through survey research are collected in
response to the specific request. The MIS
supplies the requested information for
decision making.
Marketing Information system

External data
Marketing Marketing Marketing
Research Information Managers
division system Division
Internal data

Requested
information
 Sources of Marketing Information .

The MIS information inputs come from different

sources, viz., both within and outside firms .
Some of the commonly used internal sources of
information are:
Sales Analysis- The marketing information
system retrieves sales information and put them
in usable and disaggregated form. It detects
various marketing strengths and weaknesses.
Computer assisted sales analysis uncovers
significant details for management needs.
Cost Analysis-The cost analysis is
possible with the effective accounting
system. The classification and analysis of
the cost of production, cost of distribution
and selling may provide adequate
information for the management purposes .
Financial Records- The financial records &
publications may provide adequate
opportunities for management of sales &
marketing activities .Many companies
prepare periodical final statement to
observe the balance of each item of
financial records.
Use of Marketing Information Systems
• Anticipation Of Customer Demand-
Every marketer needs up-to-date
knowledge about consumer needs and
wants.
• Systematic Approach-Expanding markets
and competitive marketing environment
require adequate market intelligence
system.
• Economic indicator-Marketers must have
latest information on the changing trends
of supply, demand and prices
• Significance of Analysing Competition-
Marketer cannot survive without having
information regarding nature , character and size
of competition to be met.
• Development of Technology-Marketers must
have latest information regarding technological
development.
• Understanding the Consumer-Information
system can establish proper two way flow of
information and understanding between
marketers and consumer.
• Marketing Planning-Marketing plans and
programmes are based upon information supplied
by economic forecasts and market research.
Ethics in Marketing Research
 Honesty / Integrity
• Falsifying data
– curbstoning (or rocking-chair) interviewing
• interviewers or observers complete interviews
themselves or make up “observed” respondents’
behaviors
– not follow sampling procedure
• ask friends and relatives fill out survey
– conveniently available to complete the survey
– no need to follow up on the established call-back
procedures
 Responsibility
• Selling of unnecessary or unwarranted
research services
– convincing that two or three forms of data
collection methods, but only one method is
appropriate
– perform costly data analysis that is not
consistent with the initial research design
 Fairness
• Consciously manipulating data structures
inappropriately
– data analysis procedures for the purpose of
reporting a biased picture to the decision
maker
– do not report selected findings at all
• research conducted by tobacco companies for 40
years suggested that cigarette smoking was not a
direct link to certain types of cancer
 Respect
• Create respondent abuse
– selling the respondents’ names and
demographic data without their approval
– using infrared dye on questionnaires for the
purpose of making a sales call
– using hidden tape recorders without
permission
 Benevolence
• Create respondent abuse
– state that interviews are very short (in reality,
last up to one hour)