Managing Marketing

Information to Gain
Chapter Four Customer Insights

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 Learning Objectives
Topic Outline

• Marketing Information and Customer Insights

• Assessing Marketing Information Needs
• Developing Marketing Information
• Marketing Research
• Analyzing and Using Marketing Information
• Other Marketing Information Considerations

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 Marketing Information and
Customer Insights
Customer Insights
• Companies are forming
customer insights teams
– Include all company functional
areas
– Collect information from a
wide variety of sources
– Use insights to create more
value for their customers

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 Marketing Information and
Customer Insights
Marketing Information Systems (MIS)

Marketing information system (MIS)

consists of people, equipment,
software, and procedures for:
– Assessing the information needs
– Developing needed information
– Helping decision makers use the information
for customer

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 Assessing Marketing Information
Needs

MIS provides information to the company’s

marketing and other managers and external
partners such as suppliers, resellers, and
marketing service agencies

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 Assessing Marketing
Information Needs
Characteristics of a Good MIS
• Balancing the information users would like
to have against what they need and what is
feasible to offer
User’s
Needs

MIS
Offerings
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 Developing Marketing Information
Marketers obtain information from 3 main sources:

Internal data

Marketing intelligence

Marketing research

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 Developing Marketing Information

Info gathered includes:

Internal databases are • Sales
electronic collections of • websites visited
consumer and market • demographics
information obtained from • psychographics
data sources within the
• service and satisfaction
company network
measures

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 Developing Marketing Information
Competitive Marketing Intelligence

The systematic collection and analysis

of publicly available information
about consumers, competitors
and developments in the marketplace

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 Marketing Research

• Marketing research is the

function that links the
consumer, customer, and
public to the marketer
through information.
• Marketing research is the
systematic design,
collection, analysis, and
reporting of data relevant to
a specific marketing
situation facing an
organization
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 • The information is used to:
• identify and define
marketing opportunities
and problems

• generate, refine, and

Marketing evaluate marketing
actions
Research • monitor marketing
performance

• improve understanding of
marketing as a process.

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 Steps in the Marketing Research Process

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 • This first step is probably
the most difficult but also
the most important one.

Step 1: • It guides the entire

research process.
Defining • It is frustrating to reach the
the end of an expensive
research project only to
Problem learn that you’ve
addressed the

wrong problem!

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 • What is the level of brand
awareness for Brand X?
Examples of
Marketing • How sensitive are our target
customers to price changes?
Research • What are consumer
Problems preferences and purchase
intentions for our new product?

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 • Should we increase price?
Management
• Should we introduce a diet
Decision version of our product?

Problems • Should we bundle the cost of

e-books in tuition?

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 Marketing Research
Types of research:

Exploratory research Descriptive research Causal research

objective is to gather describes things. tests a hypothesis to
preliminary information that determine cause and effect
will help define the problem relationships.
and suggest hypotheses.

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 Step 2
Developing the Research Plan

• Outlines sources of existing

data
• Spells out the specific
research approaches,
contact methods, sampling
plans, and instruments to
gather data

– Photo by Alex Nemo Hanse on Unsplash

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 Developing the Research Plan

Secondary data consists of information that

already exists somewhere, having been
collected for another purpose

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 Secondary Data

Advantages Disadvantages

Cost Not Current

May not be
Speed relevant

Could not get May not be

data otherwise accurate

May not have

been impartial

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 Developing Marketing Information
Marketing Research
Developing the Research Plan

Primary data consists of information

gathered for the specific research plan

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 Developing Marketing Information
Marketing Research
Planning Primary Data
Collection
Research
approaches

Contact methods

Sampling plan

Research
instruments

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 Developing Marketing Information
Market Research
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
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 Developing Marketing Information
Market Research
Research Approaches

Survey research is the most widely used

method and is best for descriptive
information—knowledge, attitudes,
preferences, and buying behavior
• Flexible
• Persons may be unable or unwilling to answer
• May give misleading or “pleasing” answers
• Privacy concerns
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 Developing Marketing Information
Market Research
Research Approaches

Experimental research is best for gathering

CAUSAL information—cause-and-effect
relationships

• Discussion Question
• How may a catalogue marketer like Victoria’s Secret run
an experiment on a direct marketing / email offer?

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 Developing Marketing Information
Marketing Research
Contact Methods

• Focus Groups
– Six to 10 persons
– Trained moderator
– Challenges
Expensive
Difficult to generalize from small group
Consumers not always open and honest

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 Developing Marketing Information
Marketing Research
Online Research

Advantages
• Low cost
• Speed
• Higher response rates
• Flexibility
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 Developing Marketing Information
Marketing Research
Sampling Plan

A Sample is a segment of the population

selected for marketing research to
represent the population as a whole
– Who is to be studied?
– How many persons should be studied?
– How should they be chosen?

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 Probability Sample
Developing Simple random Every member of the population has
Marketing sample a known and equal chance of
selection
Information Stratified random The population is divided into
sample mutually exclusive groups and
random samples are drawn from each
group
• Marketing
Cluster (area) The population is divided into
Research sample mutually exclusive groups and the
• Sampling Plan – researcher draws a sample from the
Types of Samples selected clusters

Nonprobability Sample
Convenience The research selects the easiest
sample population members
Judgment The researcher uses their judgment
sample to select population members
Quota sample The researcher finds and interviews a
prescribed number of people in each
of several categories

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 Developing Marketing Information
Marketing Research
Research Instruments

Questionnaires
• Most common
• Administered in person, by phone,
or online
• Flexible
• Researcher must be careful with
wording and ordering of questions
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 Developing Marketing Information
Marketing Research
Research Instruments—Questionnaires

• Closed-end questions include all possible

answers, and subjects make choices among
them
– Provide answers that are easier to interpret and
tabulate
• Open-end questions allow respondents to
answer in their own words
– Useful in exploratory research
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 Developing Marketing Information
Marketing Research
Implementing the Research Plan

Collecting the information

Processing the information
Analyzing the information
Interpret findings
Draw conclusions
Report to management
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 Analyzing and Using Marketing
Information
Customer Relationship Management (CRM)

• We’ve talked generally about managing customer

relationships throughout the book. But here, “customer
relationship management” (CRM) has a much narrower
data-management meaning.
• It refers to capturing and using customer data
from all sources to manage customer
interactions and build customer relationships.

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 Analyzing and Using Marketing
Information
Customer Relationship Management
Touchpoints

Service and
Customer Sales force Web site
support
purchases contacts visits
calls

Credit and
Satisfaction Research
payment
surveys studies
interactions

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 Distributing and Using
Marketing Information
Information distribution involves entering
information into databases and making it
available in a time-useable manner

Intranet provides information to employees and

other internal stakeholders

Extranet provides information to key customers

and suppliers

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 Other Marketing Information
Considerations
Marketing Research in Small Businesses
and Nonprofit Organizations

International Market Research

Customer privacy
Public Policy and
Misuse of research
Ethics findings

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 All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

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