Marketing Information

System
Marketing Information System (MIS)?
A marketing information system consists of
people, equipment, and procedures to gather, sort,
analyze, evaluate, and distribute needed, timely, and
accurate information to marketing decision makers.
Information Needs Probes
What decisions do you regularly make?
What information do you need to make these
decisions?
What information do you regularly get?
What special studies do you periodically
request?
What information would you want that you are
not getting now?
Internal Records and Marketing Intelligence

Sales
Order-to-Payment
Information
Cycle
System

Databases, Marketing
Warehousing, Intelligence
Data Mining System
Marketing Intelligence System?
A marketing intelligence system is a set
of procedures and sources that managers
use to obtain everyday information about
developments in the marketing
environment.
 A Basic Marketing Information System

Environment Company Objectives

Marketing Plans

Marketing Intelligence
Network
•Marketing Research
•Continuous Monitoring
•Data Warehouse

Implementation
Implementing
Marketing Plans
Feedback
 Tracking
Targeting Profiling
Activities
Customers and Sorting

Customer Data
Base
Flexible
Reports

Mass Mail

Remote
Access Follow-up
Letters

Global E-mail Auto Dialing

Interactive
Tech Documents
 Fully Integrated Data-Base Marketing
Marketing
Marketing and Sales
Data Base
Systems Company
• Campaign Planning Customers Planning
• Market/competitor analysis Prospects • Strategic planning
• Field sales support Suspects • Research and
• Telemarketing development
• Direct Mail • Product planning
• Sales force management Financial and
Operational
Systems
• Order entry
• Inventory control
• Billing
• Collections/accounts
receivables, etc.
Data Mining in Market Research
Process of semi-automatically analyzing large
databases to find patterns that are:
valid: hold on new data with some certainity
novel: non-obvious to the system
useful: should be possible to act on the item
understandable: humans should be able to interpret the
pattern
Also known as Knowledge Discovery in Databases
(KDD)
Why

Data Mining
Credit ratings/targeted marketing :
 Given a database of 100,000 names, which persons are the least likely to
default on their credit cards?
 Identify likely responders to sales promotions

 Fraud detection
 Which types of transactions are likely to be fraudulent, given the
demographics and transactional history of a particular customer?
 Customer relationship management:
 Which of my customers are likely to be the most loyal, and which are most
likely to leave for a competitor? :
Applications
 Banking: loan/credit card approval
 predict good customers based on old customers
 Customer relationship management:
 identify those who are likely to leave for a competitor.
 Targeted marketing:
 identify likely responders to promotions
 Fraud detection: telecommunications, financial transactions
 from an online stream of event identify fraudulent events
 Manufacturing and production:
 automatically adjust knobs when process parameter changes
Marketing Research
Involves collecting,
tabulating, and
analyzing data about
specific issues related
to the marketing of
goods, services,
organizations,
people, places, and
ideas.
 Marketing Research is not needed when the:
 requiredEstablish
information
the Needis
foralready
Marketingavailable
Research
 decisions need to be made now
 organization can’t afford the research
 costs outweigh the value of the research
 The Marketing Research Process
3.
2.
Generation of
Examination
Primary Data
of Secondary
Data
1.
4. Analysis
Issue (Problem)
Definition of Data

6. 5.
Implementatio Recommendations
n of Findings
1. Identify Problem/Issue
Single greatest challenge
Involves developing a
focused statement
Often requires
exploratory research to
gain ideas and insights
 Issue (Problem) Definition
Develop statement Refine statement regarding
regarding issue to be issue to be investigated.
investigated. Once the issue is clarified,
Conduct exploratory conclusive research, also
research, also called called ‘quantitative’
‘qualitative’ research. research, is used.
 Basic Definition Steps Include:
Statement of Objectives
Identify Core Component
of Needs

 R.O.I.?
 Or Increase Market Share?
 2. Examination of Secondary Data

Secondary data have been previously gathered for purposes other than current research.

Secondary data:

 are existing data

 have been previously generated for other reasons
 should always be reviewed before any new data are generated
 Accounts Receivables/
Payables
Internal
Secondary P & L Statements
Data
Government Publications,
such as Census Figures
External
Nongovernment
Publications
Internal Secondary Sources
Budgets
Sales figures
P & L statements
Accounts receivable and
payable
Old Stuff
All prior research
Secondary Data: External
Outside Company:
Government: Census
Data, Department of
Labor
Nongovernment:
Commercial research
organizations,
publications such as
magazines and books
 Advantages of Secondary Data
Inexpensive
Available
Speedy
Inside, "confidential"
information
Credible sources
Aids exploratory research
Disadvantages of Secondary Data
May be obsolete
May lack suitability
Questionable
methodologies
Undisclosed findings
Conflicting results
Reliability may not be
proven
 3. Primary Data
Primary data relate to a specific marketing issue. Primary
data are:
 collected to solve specific problem at hand
 necessary when available secondary data may be insufficient
 usually required for conclusive research
Primary Data
Advantages Disadvantages
Precise High costs
Current Time consuming
Known methodology Perspective may be limited
Secret Corporate limitations
Reliability
 Survey In person

Telephone
Primary Observation
Data Mail
Experiment Internet
Human
Simulation
Mechanical
 Types of Primary Data Collection
Survey: Communicates in Experiment: One or more
person, by phone, by mail, or factors manipulated under
by Internet, and gathers controlled conditions.
information from Simulation: A computer
respondents. based method to test
Observation: Views and variables replicating real-
notes consumer behavior. world applications.
Survey Instrument
Questionnaires Could describe
Sampling Plan  company
 person
Contact method
 products
 idea
 The Questionnaire
The instrument: A collection of questions used to
gather information from respondents
Used extensively in survey research
 Can be used in experiment
 Formal definition
A data collection method where the person answering
the question actually records their own answers.
 Broad view
Include all techniques of data collection in which each
person is asked to respond to the same set of questions
in a predetermined order.
 Open vs. Closed
Open-ended question
 Great freedom for respondent to answer
 Responses may be ambiguous
 Coding is time-consuming and costly which usually
results in some degree of error
 Entail more work from respondents
 Closed-ended question
 Require less effort and less facility with words
 Difficult to develop good closed questions
 Recommendation for designing closed-end question:
use open questions in preliminary interviews or pretests
 Open-ended question
Completely unstructured
Eg. What is your opinion about PMT bus service.
Word Association
Eg. What is first word comes to your mind when you
have to travel by PMT
Sentence completion
Eg. When I choose PMT the most important
consideration in my decision is _________________
Picture Completion
Story Completion
 Closed question style
List
 The respondent is given a list of choices, any of which
may be selected
Eg. Please choose all communication tools you ever
used.
1) Internet Phone 2) Landline 3) E-mail 4)Mobile 5) Other
 Category
 Only one response can be selected
Eg. How often do you visit this shopping center
1) Once a week 2) Twice a week or more 3)Less than once
a week
Rank
 Respondent is asked to place something in order
 Eg. Rank-order the three most important things you want in the
job you make your life’s work? (1 indicates the most important
one 4 the least important one)
 __Making lots of money
 __ Having opportunities for advancement
 __ Being free from supervision
 __ Being creative
Rating or Scale (Likert style)
 A rating device is used to record response
For the following statement please circle the number that
matches your view most closely I feel that employee’s views
have influenced the decisions taken by management.
1) Strongly Disagree 2) Disagree
3) Neutral 3)Agree 5)Strongly Agree
Quantity
 Response is a number giving the amount
Eg.When did you start writing blog? ________
Research Design Outline
Who collects data? Other considerations:
What information: Cost Factors?
exploratory/conclusive? Methodology?
Who or what to be Time Frame?
studied? When & Where?
Technique to be used?
(survey/observation
experiment/simulation)
4. Data Analysis
Questionnaire Analysis is the evaluation
information is coded and of responses, usually by
numbered. statistical techniques,
Response categories are pertaining to the
labeled. question under
Tabulations calculate investigation.
summary data for each
response category.
5. Recommendations
Firm's future actions are
based on research findings.
The report is written in
language for the intended
audience.
They incorporate a
rationale and findings.
Research reports should be
kept in the data warehouse
of a firm’s marketing
intelligence network for
future reference.
6. Implementation of Findings

Research reports Implementation works

represent feedback to
marketing managers.
These managers are
responsible for utilizing
findings to achieve short-
term and long-term
goals.
best when marketing
managers take part in
research design, have
broad control over
marketing decisions, and
have confidence that
results are accurate.