PRINCIPLES OF MARKETING

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Chapter Chapter 4 4 Marketing Research and Information Systems

The Importance of Information The Importance of Information

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Marketing Environment

Customer Needs

Why Information Is Needed
Strategic Planning

Competition

What is a Marketing What is a Marketing Information System (MIS)? Information System (MIS)?
• Consists of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers. • Function: Assess, Develop and Distribute Information.

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The Marketing Information System The Marketing Information System
Marketing Decisions and Communications
Marketing Information System

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Marketing Managers

Distributing Information

Assessing Information Needs
Developing Information

Information Analysis

Internal Data Marketing Intelligence

Marketing Research

Marketing Environment Marketing Environment

Functions of a MIS: Functions of a MIS: Assessing Information Needs Assessing Information Needs

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Conduct Interviews and Determine What Information is Desired, Needed, and Feasible to Obtain.

Monitors Environment for Monitors Environment for Information Managers Information Managers Should Have Should Have

Examine Cost/ Benefit of Examine Cost/ Benefit of Desired Desired Information Information

Functions of a MIS: Functions of a MIS: Developing Information Developing Information

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Obtains Needed Information for Marketing Managers Obtains Needed Information for Marketing Managers From the Following Sources From the Following Sources
Internal Data Internal Data

Collection of Information from Data Sources Within the Company Collection of Information from Data Sources Within the Company From: Accounting, Sales Force, Marketing, Manufacturing, Sales From: Accounting, Sales Force, Marketing, Manufacturing, Sales

Collection and Analysis of Publicly Available Information about Collection and Analysis of Publicly Available Information about Competitors and the Marketing Environment Competitors and the Marketing Environment From: Employees, Suppliers, Customers, From: Employees, Suppliers, Customers, Competitors, Marketing Research Companies Competitors, Marketing Research Companies

Marketing Intelligence Marketing Intelligence

Design, Collection, Analysis, and Reporting of Data about a Situation Design, Collection, Analysis, and Reporting of Data about a Situation

Marketing Research Marketing Research

Functions of a MIS: Functions of a MIS: Distributing Information Distributing Information

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Information Must be Distributed to the Right Managers at the Right Time.

Distributes Routine Distributes Routine Information for Information for Decision Making Decision Making

Distributes Nonroutine Distributes Nonroutine Information for Special Information for Special Situations Situations

The Marketing Research The Marketing Research Process Process
Defining the Problem and the Research Objectives Defining the Problem and the Research Objectives Developing the Research Plan Developing the Research Plan Implementing the Research Plan Implementing the Research Plan Interpreting and Reporting the Findings Interpreting and Reporting the Findings

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Marketing Research Process Marketing Research Process
Step 1. Defining the Problem & Step 1. Defining the Problem & Research Objectives Research Objectives

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Exploratory Research

••Gatherspreliminary information Gathers preliminary information that will help define the problem that will help define the problem and suggest hypotheses. and suggest hypotheses. ••Describesthings such as consumers’ Describes things such as consumers’ attitudes and demographics attitudes and demographics or market potential for a product. or market potential for a product.

Descriptive Research

Causal Research

••Testhypotheses about causeTest hypotheses about causeand-effect relationships. and-effect relationships.

Marketing Research Process Marketing Research Process

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Step 2. Develop the Research Plan Step 2. Develop the Research Plan
Determine the Specific Information Needed Determine the Specific Information Needed Secondary
Information that has Information that has been previously been previously collected. collected.

Primary
Information collected Information collected for the specific purpose for the specific purpose at hand. at hand.

Both Must Be: Both Must Be: Relevant Relevant Accurate Accurate Current Current Impartial Impartial

Primary Data Collection Process Primary Data Collection Process
Step 1. Research Approaches Step 1. Research Approaches
Observational Research Observational Research
Gathering data by observing people, Gathering data by observing people, actions and situations actions and situations (Exploratory) (Exploratory)

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Survey Research Survey Research
Asking individuals about Asking individuals about attitudes, preferences or attitudes, preferences or buying behaviors buying behaviors (Descriptive) (Descriptive)

Experimental Research Experimental Research
Using groups of people to Using groups of people to determine cause-and-effect determine cause-and-effect relationships relationships (Causal) (Causal)

Primary Data Collection Process Primary Data Collection Process
Step 2. Contact Methods Step 2. Contact Methods

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Contact Methods
Mail Flexibility Quantity of Data Collected Control of Interviewer Control of Sam ple Speed of Data Collection Response Rate Cost Poor Good Excellent Fair Poor Fair Good Telephone Good Fair Fair Excellent Excellent Good Fair Personal Excellent Excellent Poor Fair Good Good Poor Online Good Good Fair Poor Excellent Good Excellent

Primary Data Collection Process Primary Data Collection Process
Step 3. Developing a Sampling Plan Step 3. Developing a Sampling Plan

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Probability or Probability or Non-probability Non-probability sampling? sampling? Sample representative segment of the population How should the How should the sample be sample be chosen? chosen?

Who is to be Who is to be surveyed? surveyed?

How many How many should be should be surveyed? surveyed?

Primary Data Collection Process Primary Data Collection Process
Step 4. Research Instruments Step 4. Research Instruments

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Research Instruments Research Instruments Questionnaire Questionnaire
••What to ask? What to ask?

Mechanical Devices Mechanical Devices
••People Meters People Meters

•• Form of each Form of each question? question? •• Wording? Wording? •• Ordering? Ordering?

•• Grocery Scanners Grocery Scanners

Marketing Research Process Marketing Research Process
Collection Collection of of Data Data Processing Processing of of Data Data Analyzing Analyzing the the Data Data

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Step 3. Implementing the Research Plan Step 3. Implementing the Research Plan

Research Research Plan Plan

Marketing Research Process Marketing Research Process

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Step 4. Interpreting and Reporting Step 4. Interpreting and Reporting Findings Findings
Interpret the Findings Interpret the Findings Draw Conclusions Draw Conclusions Report to Management Report to Management