Managing Marketing Information Chapter 4 Part 1 & 2 PDF

Managing Chapter 4 Marketing Information to Gain Customer Insights – Part I & II  Marketing Information and Big Data To create value for customers and build meaningful relationships, marketers must first gain fresh, deep insights into what customers need and want....

Managing Chapter 4 Marketing Information to Gain Customer Insights – Part I & II  Marketing Information and Big Data To create value for customers and build meaningful relationships, marketers must first gain fresh, deep insights into what customers need and want. Such customer insights come from good marketing information. Big data is the huge and complex data sets generated by today’s sophisticated Information generation, collection, storage, and analysis technologies. What are the opportunities and challenges presented by big data? Companies can gain rich, timely customer insights. 2 Presentation title 20XX  Managing Marketing Information The real value of marketing information lies in how it is used and the customer insights it provides. Customer insights means fresh marketing information- based understanding of customers and the marketplace that become the basis for creating customer value, engagement, and relationships. Marketing information system (MIS) consists of people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers use the information. 3 Presentation title 20XX  Managing Marketing Information 4 Presentation title 20XX  Assessing Information Needs The marketing information system primarily serves the company’s marketing managers, other managers, and external partners such as suppliers, resellers, or marketing services agencies. A good marketing information system balances the information users would like to have against what they really need and what is feasible to offer. Finally, the costs of obtaining, analyzing, storing, and delivering information can mount quickly. 5 Presentation title 20XX  Developing Marketing Information Internal Databases Internal databases are collections of consumer and market information obtained from data sources within the company’s network. Information in an internal database can come from many sources. What are the advantages and disadvantages of internal databases? Internal databases usually can be accessed more quickly and cheaply than other information sources. Problems; internal information is often collected for other 6purposes, it may be in complete or in the wrong form for Presentation title 20XX  Developing Marketing Information Marketing Intelligence Competitive marketing intelligence is the systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the marketplace. 7 Presentation title 20XX  Developing Marketing Information Marketing Research Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. Companies use marketing research in a wide variety of situations. Some large companies have their own marketing research departments and small counterparts hire outside research specialists. 8 Presentation title 20XX  Marketing Research Process 9 Presentation title 20XX  Defining Problem and Objectives Marketing managers and researchers must work together closely to define the problem and agree on research objectives. Exploratory research is to gather preliminary information that will help define the problem and suggest hypotheses. Descriptive research is to describe things such as the market potential for a product or the demographics and attitudes of consumers who buy the product. Causal research is to test hypotheses about cause-and- effect relationships. 10 Presentation title 20XX Example 11 Presentation title 20XX  Developing the Research Plan Research plan aims to outline sources of existing data and spell out the specific research approaches, contact methods, sampling plans, and instruments that researchers will use to gather new data. The research plan should be presented in a written proposal. The research plan can call for gathering secondary data, primary data, or both. 12 Presentation title 20XX  Gathering Secondary Data Secondary data consists of information that already exists somewhere and have been collected for another purpose. Marketing researchers can conduct their own search using commercial online databases and internet search engines. Companies can also buy secondary data from outside suppliers. What are the advantages and disadvantages of secondary data? 13 Presentation title 20XX  Secondary data can usually be obtained more quickly and at a lower cost than primary data. Also, secondary sources can sometimes provide data an individual company cannot collect on its own— information that either is not directly available. Secondary data can also present problems. Researchers can rarely obtain all the data they need from secondary sources. Even when data can be found, the information might not be very usable. The researcher must evaluate secondary information carefully to make certain it is relevant (fits the research project’s needs), accurate (reliably collected and reported), current (up-to-date enough for current decisions), and impartial (objectively collected and reported). 14 Presentation title 20XX  Primary Data Collection Research Approaches Research approaches for gathering primary data include: Observation, surveys, and experiments. We discuss each one in turn. 1- Observation Observational research: involves gathering primary data by observing relevant people, actions, and situations. For example, food retailer Trader Joe’s might evaluate possible new store locations by checking traffic patterns, neighborhood conditions, and the locations of competing Whole Foods, Fresh Market, and other retail chains. 15 Presentation title 20XX  Primary Data Collection A wide range of companies now use ethnographic research. Ethnographic Research: form of observational research that involves sending trained observers to watch and interact with consumers in their “natural environments.” The observers might be trained anthropologists and psychologists or company researchers and managers. 16 Presentation title 20XX For Instance: 17 20XX  Primary Data Collection Research Approaches 2- Survey Research Survey research: Gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior. It is the most widely used method for primary data collection and the approach best suited for gathering descriptive information. A company that wants to know about people’s knowledge, attitudes, preferences, or buying behavior can often find out by asking them directly. 18 Presentation title 20XX  Cont., What are the advantages and disadvantages of survey research? Advantages: The major advantage is Flexibility; it can be used to obtain many kinds of information in many different situations which can be conducted by phone or mail, online, or in person. Disadvantages: - Sometimes people are unable to answer survey questions because they cannot remember or have never thought about what they do and why they do it. - People may be unwilling to respond to unknown interviewers or about things they consider private. - Respondents may answer survey questions even when they do not know 19 the answer just to appearPresentation smarter title or more informed. 20XX  Primary Data Collection Research Approaches 3- Experimental research: Experimental research involves gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses. Note that; Experimental research is best suited for gathering causal information. Whereas, Observation is best suited for Exploratory research and Surveys for Descriptive research. 20 Presentation title 20XX  Primary Data Collection Contact Methods Mail, telephone, and personal interviewing Mail questionnaires can be used to collect large amounts of information at a low cost per respondent. Pros and Cons: - Respondents may give more honest answers on a mail questionnaire. - Also, no interviewer is involved to bias respondents’ answers. - However, mail questionnaires are not very flexible; all respondents answer the same questions in a fixed order. And mail surveys usually take longer to complete and response rates are often low. 21 Presentation title 20XX  Contact Methods..Cont., Telephone interviewing is one of the best methods for gathering information quickly, and it provides greater flexibility than mail questionnaires. Pros and Cons: - Interviewers can explain difficult questions and, depending on the answers they receive, skip some questions or probe on others. - Response rates tend to be higher than with mail questionnaires - However, the cost per respondent is higher than with mail, online questionnaires. - Also, people may not want to discuss personal questions with an interviewer. - The method introduces interviewer bias. - Finally, 22 in this age of do-not-callPresentation lists title and promotion-harassed 20XX consumers, potential survey respondents are increasingly hanging up  Contact Methods..Cont., Personal interviewing: takes two forms: individual interviewing and group interviewing. Individual interviewing involves talking with people in their homes or offices, on the street, or in shopping malls. Such interviewing is flexible. However, individual personal interviews may cost three to four times as much as telephone interviews. Focus group interviewing, Group interviewing, consists of inviting small groups of people to meet with a trained moderator to talk about a product, service, or organization. - A moderator encourages free and easy discussion hoping that group interactions will bring out deeper feelings and thoughts. - However, focus group studies present some challenges. They usually employ small samples to keep time and costs down, and it may be hard 23 to generalize from the results. Moreover, consumers in focus 20XX Presentation title groups are not always open and honest about their real feelings, Contact Methods..Cont., Online marketing research Online marketing research involves collecting primary data through internet and mobile surveys, online focus groups, consumer tracking, experiments, and online panels and brand communities. - The most obvious advantages are speed and low costs. 24 Presentation title 20XX Contact Methods..Cont., Online behavioral and social targeting: Behavioral targeting involves using online consumer tracking data to target advertisements and marketing offers to specific consumers. Social targeting mines individual online social connections and conversations from social networking sites. - From behavioral targeting to social targeting. Whereas behavioral targeting tracks consumer movements across online sites, social targeting also mines individual online social connections and conversations from social networking sites. Why consumers are worried? 25 Presentation title 20XX Online listening, behavioral targeting, and social targeting can help marketers to harness the massive amounts of consumer information swirling around the internet. However, as marketers get more adept at trolling blogs, social networks, and other internet and mobile domains, many critics worry about consumer privacy. At what point does sophisticate online research cross the line into consumer stalking? Proponents claim that behavioral and social targeting benefit more than abuse consumers by feeding back ads and products that are more relevant to their interests. Federal 26 Trade Commission (FTC) hasPresentation title 20XX recommended the creation of a “Do  Primary Data Collection Sampling Plan A sample: is a segment of the population selected for marketing research to represent the total population as a whole. The sample should be representative so that the researcher can make accurate estimates of the thoughts and behaviors of the larger population. Designing the sample requires deciding on the sampling unit, sample size, and sampling procedures. Sampling Unit: who is to be studied ? the people that have been sampled. Sample size: how many people should be included ? Sampling procedures: how should the people in the sample be chosen 27 ? Presentation title 20XX  Primary Data Collection Research Instruments In collecting primary data, marketers have a choice of two main research instruments: Questionnaires and Mechanical devices 1- Questionnaires Questionnaire: is by far the most common instrument whether administered in person, by phone, by email, or online. - Closed-ended questions include all the possible answers and respondents make choices among them. - Open-ended questions allow respondents to answer in their own words. Ex. What is your opinion of Southwest Airlines? 28 Presentation title 20XX 29 Presentation title 20XX 2- Mechanical instruments Researchers use mechanical instruments to monitor consumer behavior. Still other researchers apply neuromarketing to track brain electrical activity to learn how consumers feel and respond. 30 Presentation title 20XX  Implementing the Research Plan The researchers next put the marketing research plan into action by collecting, processing, and analyzing the information. They also must isolate important information and insights. The data collection process can be carried out by the company’s marketing research staff or outside firms. 31 Presentation title 20XX  Interpreting the Findings The marketing researcher must now interpret the findings, draw conclusions, and report them to management. Managers and researchers must work together closely when interpreting the research results and both must share responsibility for the research process and the resulting decisions. 32 Presentation title 20XX Thank you