MKTG 2100 Principles of Marketing

Lecture 3 Information Management & Marketing Research

Lecturer: Dr Doreen Kum

MKTG 2100: page 1

The Main Role
The main role of market research is to provide information

INFO


This allows better decisions to be made

Lecturer: Dr Doreen Kum

MKTG 2100: page 2

The Importance of Information
Identify opportunities & problems

Marketing Environment Why Information is Needed

Customer Needs

Competition

Strategic Planning

Generate & evaluate marketing Lecturer: Dr Doreen Kum actions

Helps VALUE CREATION!
MKTG 2100: page 3

Marketing Research’s Central Role

0

Lecturer: Dr Doreen Kum

(Malhotra et al, 2006,

MR links the consumer, customer & public to the marketer through informatio 4 MKTG 2100: page

Uses of MR        New product development Consumer trends Testing of advertising messages Choice of brand names Price setting To forecast sales … = a marketer’s eyes & ears MKTG 2100: page 5 Lecturer: Dr Doreen Kum .

TEST SCREENINGS: LISTENING TO CONSUMERS TO REDUCE MOVIE RISKS   Test screenings Tracking studies Lecturer: Dr Doreen Kum MKTG 2100: page 6 .

Marketing research questions asked in test screenings of movies. and how they are used Lecturer: Dr Doreen Kum MKTG 2100: page 7 .

evaluate and distribute…  …needed. MIS distributes information to managers…  in the right form and  at the right time  to help them make better marketing decisions  Begins and ends with Marketing Managers  Is not the same as Marketing Research  Lecturer: Dr Doreen Kum MKTG 2100: page 8 . analyse. and procedures…  …to gather.The Marketing Information System (MIS)  A marketing information system (MIS) consists of  people. equipment. timely and accurate information to marketing decision makers. sort.

The Marketing Information System Developing Information Marketin Marketin g g Manager Manager ss Analysis Analysis Planning Planning Implemen Implemen -tation -tation Organisat Organisat ion ion Control Control Marketing Marketing Environm Environm ent ent Target Target markets markets Marketing Marketing channels channels Competitor Competitor ss Assessing Assessing information information needs needs Internal Internal reports reports Marketing Marketing intelligence intelligence Distributing Distributing information information Marketing Marketing decision decision support support analysis analysis Marketing Marketing research research Publics Publics MacroMacroenvironme environme nt nt forces forces Marketing Decisions and Communications MKTG 2100: page 9 Lecturer: Dr Doreen Kum .

Distributing Lecturer: Dr Doreen Kum MKTG 2100: page . Assessing Information Needs Information Analysis Information 2.Marketing Information System 1. Information 4. Developing 3.

MKTG 2100: page Lecturer: Dr Doreen Kum . Assessing Information Needs Info needs differ according to current problems (Kotler et al.2.1. Fig 4. 2006.

3. 2.2. between the three sources of information Internal Records Marketing Intelligence Marketing Research (see notes on “The Marketing Research Process”) Lecturer: Dr Doreen Kum MKTG 2100: page . Developing Information  Differentiate 1.

 Lecturer: Dr Doreen Kum MKTG 2100: page .i.  Internal records can be obtained more quickly and cheaply than other information but may be incomplete or in the wrong form for making marketing decisions. Internal Records Information gathered from sources within the company to evaluated marketing performance and detect marketing problems and opportunities.

resellers and customers.ii. The organisation needs important intelligence from suppliers. MKTG 2100: page Lecturer: Dr Doreen Kum . Marketing Intelligence (MI)     Everyday information about developments in the marketing environment that helps managers prepare and adjust marketing plans. Personnel are often busy and fail to pass on important information unless there is a formal process for doing so. MI is important and can be gathered from many sources including the organisation’s own personnel.

refine and evaluate marketing actions  monitor marketing performance  improve understanding of the marketing process Lecturer: Dr Doreen Kum MKTG 2100: page .iii. Marketing Research  The function that links the consumer. customer and public to the marketer through information used to:  identify and define marketing opportunities and problems  generate.

3. and how many segments exist? What are the best predictors of which consumers are likely to buy my brand vs my competitor’s? If I raised my price 10% and increased advertising expenditures 20%. what would happen to sales?   Lecturer: Dr Doreen Kum MKTG 2100: page . Information Analysis Examples of questions :  What are the major variables affecting my sales and how important is each one?  What are the best variables for segmenting my market.

4. and study reports to managers  Developments in technology have caused a revolution in information distribution  MKTG 2100: page Lecturer: Dr Doreen Kum . intelligence updates. Distributing information Information must be distributed to the right managers at the right time  Centralised marketing information systems (MIS) often provide regular performance reports.

Fig 4.The Marketing Research This process includes: Process  1. Interpreting and Reporting the Findings Specifying what information is required Designing methods for collecting information Managing & implementing data collection Analysing the results Communicating findings & their implications     Lecturer: Dr Doreen Kum (Kotler et al. Developing the Research Plan 3. Implementing the Research Plan 4. MKTG 2100: page . Defining the Problem & Research Objectives 2.3. 2006.

Lecturer: Dr Doreen Kum MKTG 2100: page . G. W. Exploring Marketing Research 7th edition.Stages of the Research Process Problem Discovery and Definition Conclusions and Report Discovery and Development of an Approach to the Problem Definition Data Processing and Analysis and so on Research Design Sampling Data Gathering Zikmund. 2000.

money & effort will be wasted The challenge: may be difficult  Manager may know there is a problem without knowing or understanding the cause Lecturer: Dr Doreen Kum MKTG 2100: page .1. Defining the Problem  0  Accurately and adequately defining the management problem is the single most important task in the MR process It is the problem confronting management   Asks what the decision maker needs to do Also called research purpose or aim   Without this.

.g. secondary data) and narrow in  What else is needed? Lecturer: Dr Doreen Kum MKTG 2100: page ..Issues in Defining the Problem    Identify the real problem Identify what information is needed  E. analyze situation (e. talk to informed people.g. Fab One Shot Decline in sales? Lead to asking wrong questions Don’t confuse the symptoms with problems    Develop a list of possible problem areas.

development of the research plan survey of stakeholders to determine if problems exist decision regarding the research tools and target group collection of the available sources for needed information definition of the problem and research objectives MKTG 2100: page Lecturer: Dr Doreen Kum . E. D. B. C.The first step in the marketing research process is the: A.

Developing the research plan.2. How would consumers react to Oats in microwaveable bowl?  What questions do we need to ask to determine this?  Lecturer: Dr Doreen Kum MKTG 2100: page .g.. the research design Determining specific information needs – what do we need to know?  Breaking the problem down into specific questions.  E.

Developing the Research Plan     First we look at information readily available (secondary data):  Internal sources  Government publications  Periodicals and books  Commercial data This may be for the purpose of further refinement of the research problem. If we then require new information. Or to access information relevant to the solution to the problem. then we collect primary data Lecturer: Dr Doreen Kum MKTG 2100: page .

Decide When MR is Warranted   Research is a cost and a budget is a must Value of MR: does the MR contribute towards a better decision? Is it really needed? MR may not be needed:  Information already available  Not enough time  Resources inadequate  Costs outweigh value MR may be needed:  Results directly affect your product/service  Identifies correct alternative  Gives you competitive advantage  Keeps you abreast of the market MKTG 2100: page Lecturer: Dr Doreen Kum .

Secondary vs Primary Data  Primary data consist of information collected for the specific purpose at hand  It costs time and money to collect  You only do if secondary research has no answers For Secondary Data  Relevant?  Accurate?  Current?  Impartial? For Primary Data Research Approach  Research Instruments  Sampling Plan  Contact Methods  (garbage in. garbage out)  Lecturer: Dr Doreen Kum MKTG 2100: page .

2006. Table MKTG 2100: page .Comparing Primary & Secondary Data Collection purpose Collection process Primary Data Secondary Data For the problem For other at hand problems Very involved Rapid and easy Collection cost High Collection time Long Relatively low Short Lecturer: Dr Doreen Kum (Malhotra et al.

A Classification of Marketing Research Designs Research Designs Exploratory Conclusive Descriptive Causal Lecturer: Dr Doreen Kum MKTG 2100: page .

develop hypotheses…why?  e...g. interviews.?  e.g.Three Types of Research Designs  Exploratory Research  to understand. What is the cause of customer dissatisfaction?  observation. establishing cause & effect experiments Lecturer: Dr Doreen Kum MKTG 2100: page ... describe market characteristics or functions  surveys. focus groups  Descriptive Research  to measure the state…what is.g. observation  Causal Research   to test hypotheses  e.

Table 4. 2006. p. 115) MKTG 2100: page Characteristics: Methods: Lecturer: Dr Doreen Kum Discovery of Describe market ideas and insights characteristics or functions Flexible.A Comparison of Basic Research Designs Exploratory Objective: Descriptive Causal Determine cause and effect relationships Manipulation of one or more independent variables Control of other mediating variables Experiments (Malhotra et al. versatile Marked by the prior formulation of specific Often the front hypotheses end of total research design Preplanned and structured design Expert surveys Pilot surveys Secondary data Secondary data Qualitative Surveys research Panels Observation and other data .6.

Data Collection Methods  Observational research   Survey research   Mechanical   Structured Unstructured   People metres Checkout scanners  Indirect approach Direct approach Closed-ended Open-ended Single-source data systems  Question type     Eye cameras Video Mystery shoppers   Personal  Experimental research Lecturer: Dr Doreen Kum MKTG 2100: page .

Research Instruments Research Instruments  Questionnaire  Closed-end questions  Open-end questions Mechanical devices Galvanometer  Tachistoscope  Eye cameras   Lecturer: Dr Doreen Kum MKTG 2100: page .

Mechanical research instruments Lecturer: Dr Doreen Kum MKTG 2100: page .

Fig MKTG 2100: page Lecturer: Dr Doreen Kum . 2006.Survey Types The main ways of administering surveys: (Malhotra et al.

Table MKTG 2100: page .Advantages & Disadvantages Lecturer: Dr Doreen Kum (Kotler et al. 2006.

Universities in Australia  Lecturer: Dr Doreen Kum MKTG 2100: page .Sampling: Definitions   Sample  Subset or some part of a larger group of objects Population Any complete group that share some common set of characteristics  e. restaurants in Singapore.g.

Sampling Techniques  Probability Samples    Simple Random Sample Stratified Random Sample Cluster Sample Convenience Sample Judgment Sample Quota Sample  Non-Probability Samples     See Table 4.5 for a summary Lecturer: Dr Doreen Kum MKTG 2100: page .

Presenting the Research Plan Summarise the plan in a written proposal: Management Research Sources Methods How Information problems addressed objectives to be obtained of secondary data for collecting primary data the results will help management decision making Research costs Lecturer: Dr Doreen Kum MKTG 2100: page .

Implementing the Research Plan  Putting the plan into action involves    collecting processing & analysing the information Lecturer: Dr Doreen Kum MKTG 2100: page .

Interpreting & Reporting Findings Results without interpretation are meaningless! Both researchers and managers are responsible for interpretations Insignificant or unexpected findings are just as important as those supporting expectations guard against biased interpretations  do not reject findings that are not as hoped  Lecturer: Dr Doreen Kum MKTG 2100: page .

Market Research in Small Businesses (SMEs). not just large firms MR is also   MR can also be done on a small budget SMEs often use less formal approaches  Managers can conduct informal surveys using small convenience samples  Can obtain good marketing information simply by observing things around them  Common technique for SME retailers    Employees a good source of customer info Can also conduct their own simple experiments Small organisations can obtain most of the secondary data available to large businesses Lecturer: Dr Doreen Kum MKTG 2100: page . & Non-Profit Organisations  (NPOs) for SMEs & NPOs.

equipment. 2. evaluate. businesses. sort. analyse. Steps in MR process are:  problem definition. 3. timely and accurate information to marketing decision makers. research plan. implementation. interpretation MKTG 2100: page Lecturer: Dr Doreen Kum . competitors. Marketing research provides information about consumers. and distribute needed. and procedures to gather. A marketing information system (MIS) consists of people. and other aspects of the firm’s external environment. changes and trends in the marketplace.Summary 1.

where. Types of research designs may be classified as  exploratory . when. 5. observations and experiments are the main data collection techniques used in MR. Key issues in a research plan:  Research objectives. and way of the research  causal .Summary 4.  descriptive .describes market characteristics and requires specification of who. 6. primary data collection methods. Surveys (structured and unstructured).determines cause and effect. 4. Sampling methods include probability and non-probability techniques which are directly related to the type of research.provides insights into problems. and costs Lecturer: Dr Doreen Kum MKTG 2100: page . why. what. secondary information.

emphasising:  ways of assessing information needs.Lecture 3 Objectives 1. 1.  the sources used for developing information and ways of distributing information. including  defining the problem and research objectives and  developing the research plan. 1.  implementing the research plan and interpreting and  reporting the findings. Explain the concept of the marketing information system. Lecturer: Dr Doreen Kum MKTG 2100: page . Outline the marketing research process. Discuss the key issues of:  planning primary data collection.

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