Principles of Marketing- Session 4 Marketing Research and Information Systems

By: Dr.R.Satish Kumar

Session Objectives

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Explain the importance of information Understand marketing information systems Outline the marketing research process Discuss data collection techniques Discuss special issues in market research

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Marketing Information Systems: System Functions

Assess information needs Develops needed information Information analysis Distributes information

4-3

The Marketing Information System

Marketing Managers Marketing Information System Distributing Information Assessing Needs

Developing needed information Information Internal Analysis Databases

Marketing Research

Marketing Intelligence

Marketing Environment 4-4

Marketing Information System: Assessing Information Needs

Balances:
What would be liked? What is needed? What is feasible?

Irrelevant information Information limitations Costs of gathering, processing, storing, and delivering?
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Marketing Information System: Developing Information

Internal Data
Accounting Manufacturing Sales and marketing Customer service Research studies

Quick access, less expensive Data warehouses and data mining

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Marketing Information System: Developing Information

Marketing Intelligence
Company personnel Key customers Suppliers and resellers Government agencies Competitive analysis Trade associations Internet search engines Information companies

4-7

Marketing Information System: Developing Information

Market Research
Systematic design, collection and analysis Reporting data and findings Relevant to a specific marketing situation

Can be done internally or externally

4-8

Marketing Information System: Developing Information

Information Analysis
Information must be analyzed before use in decision making

Advanced statistical analysis Analytical models

4-9

Marketing Information System: Distributing Information

Right people at right time Regular management decisions Special situations Fast availability

4-10

Market Research Process

Define problem and research objectives

Develop plan to collect data

Implement, collect and analyze data

Interpret and report findings

4-11

Market Research Process: Defining Problem and Objectives

Exploratory research
Preliminary information Problem definition and hypothesis suggestion

Descriptive research
Better describe marketing problems, situations, or markets

Causal research
Test hypothesis of cause and effect relationships
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Market Research Process: Develop the Research Plan

Determine Specific Information Needs

Target customer characteristics Patterns of product usage Demand factors Response of marketing channels Customer reactions Projected sales
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Market Research Process: Develop the Research Plan

Gather Secondary Information

Internal database sources Company, public, and university libraries Government and business publications Commercial data services On-line databases Internet data sources International data
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Market Research Process: Develop the Research Plan

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Advantages of Secondary Data Less time to obtain Lower cost than primary research Alternate means of access to information Benefit from resources of others

Potential Problems With Secondary Data Information may not exist May not be:
Relevant Accurate Current Impartial

Market Research Process: Plan Primary Data Collection

Research Approaches
Observation Survey Experiment

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Market Research Process: Plan Primary Data Collection

Observational Research
Observing relevant people, actions, situations Mechanical observation, people meters, checkout scanners Single-source data systems Overcomes unwilling or unable problem Some things not readily observed Difficult to monitor long-term or infrequent behaviour
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Market Research Process: Plan Primary Data Collection

Survey Research
Questions about knowledge, attitudes preferences or buying behaviour Most widely used source of primary data due to flexibility, information type collection, and sometimes quicker than other two methods Very difficult to construct properly; Unwilling/ unable respondents; answer questions which they have no knowledge; pleasing answers
4-18

Market Research Process: Plan Primary Data Collection

Experimental Research
Best suited for gathering causal information Selecting matched groups of subjects Given different experimental treatments Variables controlled Responses measured and recorded

4-19

Contact Methods: Strengths and Weaknesses

Mail Phone Personal Flexibility Poor Good Excellent Quantity of data collected Good Fair Excellent Control interviewer effects Excellent Fair Poor Control of sample Fair Excellent Fair Speed of data collection Poor Excellent Good Response rate Poor Good Good Cost Good Fair Poor
Source: Adapted with permission of Macmillan Publishing Company from Donald S. Tull and Del I. Hawkins, Marketing Research: Measurement and Method, 6th ed., Macmillan Publishing Company, 1993.
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Personal Interviewing
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Individual
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Group
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Talking with people in homes, offices, on the street, or in shopping malls ONE ON ONE Computer interviewing or computer-assisted

Focus group
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Online Electronic

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Market Research Process: Plan Primary Data Collection

Sampling Plans - three issues

What is the sampling unit? What is the sample size? What is the sampling procedure?

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Market Research Process: Types of Samples

Probability Samples Non-probability Samples Simple random sample Known chance Convenience sample
Equal probability Select easiest population

Stratified random sample

Mutually exclusive groups Random sample drawn

Judgement sample
Select for accurate response Interviewer sets number

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Market Research Process: Research Instruments

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Questionnaire
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Mechanical
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Question contribution Question form

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Closed-end Open-end

People meters Checkout scanners Galvanometer Eye cameras

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Wording Ordering

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Market Research Process: Present the Research Plan

Written Research Proposal

Management problems addressed by research Research objectives Information sought Sources of secondary information Methods of obtaining primary data Benefits and costs
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Market Research Process: Implement the Research

Collect Data
Company research staff Outside services Most costly and error prone process

Analyze Data
Isolate important information and findings Check accuracy and completeness Tabulate results
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Market Research Process: Interpret and Report Findings

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Focus on useful decision support Clear and open Discuss interpretation Team approach Ultimate decision with management

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Market Research Process: Other Considerations

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Small Business and Non-Profit Organizations

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Obtain good information through observation Informal surveys with convenience samples Informal focus groups Conduct simple experiments Secondary data is widely available

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Market Research Process: Other Considerations

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International Marketing Research

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Growing due to multinationals Partnerships and alliances Difficulty in developing good samples Difficulty in reaching respondents Language translation Consumer behaviour differences

4-29

Market Research Process: Other Considerations

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Public Policy and Ethics

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Increasing consumer resentment Industry codes of ethics Intrusions on consumer privacy Misuse of research findings

4-30

Session Review
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Why is information important? What is a marketing information system? What are the four steps of the marketing research process? Evaluate the various data collection techniques What are the special issues affecting market research?

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