LEARNING UNIT 1

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1 Introduction

In this Learning Unit, you will be introduced to the concept of market research. It is
crucial for you to realise the importance of research and to start becoming curious
about the brands in your life and how they are operating to grab your attention. This will
be an exploration of what research consists of and how companies compile it.

Through engagement with the prescribed material for this learning unit, you will begin
to understand how consumer and market insights are used to craft meaningful brand
engagement and brand building strategies, and how they inform many other aspects of
the brand.

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SLIDES CREATED FOR LECTURE BY KATHY MARE
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https://www.youtube.com/watch?
v=mhe5kX10CR4 SLIDES CREATED FOR LECTURE BY KATHY MARE
3 Recommended Digital Engagement and Activities

Gfk (2015) A life without market research #LifeWithoutMarketResearch (Online)

Available at: https://www.youtube.com/watch?v=NpvOe7Foc8U [Accessed: January
2016].

Rickyxjtu (2015) Malcolm Gladwell on the Pitfalls of Market Research (Online). Available
at: https://www.youtube.com/watch?v=964va3YwPms [Accessed: January 2016].

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MARKETING INFORMATION AND CUSTOMER INSIGHTS

To create value for customers and build meaningful relationships with them, marketers

must first gain fresh, deep insights into what customers need and want.

Companies use such customer insights to develop competitive advantage. “In today’s

hypercompetitive world,” states a marketing expert, “the race for competitive

advantage is really a race for customer and market insights.” Such insights come from

good marketing information

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 MARKETING INFORMATION AND CUSTOMER INSIGHTS

Customer insight

has been defined as “a

deep truth about the
customer, based on
their behaviour,
experiences, beliefs,
needs or desires that is
relevant to the tasks
or issue and rings bells
with target people

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 MARKETING INFORMATION AND CUSTOMER INSIGHTS
Although customer and market insights are
important for building
customer value and relationships, these insights can
be very difficult
to obtain.

Customer needs and buying motives are often

anything but obvious—consumers themselves
usually can’t tell you exactly what they need and
why they buy.

To gain good customer insights, marketers must

effectively manage marketing information from a
wide range of sources.

Today’s marketers have ready access to plenty of

marketing information.

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 MARKETING INFORMATION AND CUSTOMER INSIGHTS

Far from lacking information, most marketing managers are overloaded with data and often
overwhelmed by it.

For example, when a company such as Pepsi monitors online discussions

about its brands by searching key words in tweets, blogs, posts, and other sources,
its servers take in a stunning six million public conversations a day, more than two billion a
year.

That’s far more information than any manager can digest

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MARKETING INFORMATION AND CUSTOMER INSIGHTS
The real value of marketing research and marketing information lies in how it is used
— in the customer insights that it provides.

Based on such thinking, many companies are now restructuring their marketing
research and information functions. They are creating
“customer insights teams,”

Customer insights
Fresh understandings of
customers and the marketplace
derived from marketing
information that become the
basis for
creating customer value and
relationships.

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MARKETING INFORMATION AND CUSTOMER INSIGHTS

Customer insights groups collect

customer and market information
from a wide variety of sources,
ranging from traditional
marketing research studies to
mingling with and observing
consumers to monitoring
consumer online conversations
about the company and its
products.

Then they use this information to

develop important customer
insights from
which the company can create
more value for its customers.

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MARKETING INFORMATION AND CUSTOMER INSIGHTS
Marketing information system (MIS)

People and procedures for assessing information needs, developing the

needed information, and helping decision makers to use the information to

generate and validate actionable customer and market insights.

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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

• A good MIS balances the information users would

like to have against what they need and what is
feasible to offer.
• Issues to consider:
• Amount of information
• Availability of information
• Costs

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Developing Marketing Information
Marketers can obtain information from:

1. Internal data
2. Competitive Marketing intelligence
3. Marketing research

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 Developing Marketing Information

1. Internal Data
• Internal databases are electronic
collections of consumer and
market information obtained
from data sources within the
company network, including
accounting, marketing, customer
service, and sales departments.
• Accessed more quickly and
cheaper than other information
sources

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Internal data:

Barneys has found a wealth of

actionable customer insights by analyzing
online customers’ browsing and buying
behavior at its Web site.

How does Barneys know? It sorts

through the data left by millions of anonymous
people clicking
around its site and predicts who’s likely to buy
which products, when, and at what price.

Digging deep into such data provides a wealth

of actionable insights
into customer buying patterns. Barney’s can
target customers based on their overall habits,
such as “fashionistas” who buy risky new
designer products, “bottom feeders” who
always buy sale items, or cosmetics zealots.

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 Developing Marketing Information
2. Competitive Marketing Intelligence
• Marketing intelligence is the systematic collection
and analysis of publicly available information about
competitors and developments in the marketplace.
• The goal of marketing intelligence is to:
• Improve strategic decision making,
• Assess and track competitors’ actions, and
• Provide early warning of opportunities and threats.

Good marketing intelligence can help

marketers gain insights into how consumers
talk
about and connect with their brands.
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 Developing Marketing Information

3. Marketing research
is the systematic design,
collection, analysis, and
reporting of data
relevant to a specific
marketing situation
facing an organization.

Know this definition often asked in tests and exams

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 Video

http://adland.tv/commercials/pepsi-max-
live-now-2013-250-uk

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ICE TASK 1
Pepsi just unveiled its first global campaign that was created as a result of Pepsi’s new
global positioning as well as its extensive global research that indicates that Pepsi fans like
to capture the excitement of now and live to the fullest. Hence, the name of the campaign
– “Live for Now“.

In groups read the case study at the beginning of chapter 4 of your prescribed textbook
and online. Pepsi’s Marketing Insight: Pepsi Drinkers “Live for Now”. Once you have read
the case study, document how the brand benefitted from consumer insights.
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