Managing Marketing Information to Gain Customer Insights

Managing Marketing Information to Gain Customer Insights.

Chapter Four Outline. Marketing Information and Customer Insights Marketing Information Systems (MIS) 1. Assessing Marketing Information Needs 2. Developing Marketing Information A. Internal Databases B. Marketing Intelligence C. Marketing Research Steps in the Marketing Research Process.

Marketing Information and Customer Insights. To create value for customers and build meaningful relationships with them, marketers must gain fresh, deep insights into what customers need and want. Customer insights- Fresh understandings of customers and the marketplace which is obtained from marketing information that become the basis for creating customer value and relationships. Customer insight is about a customer need that is not being met as well as it could be. Customer insights comes from good marketing information. Companies use customer insights to develop a competitive advantage..

Marketing Information Systems (MIS). Marketing information system (MIS) consists of people and procedures for: Assessing the marketing information needs Developing needed information Helping decision makers use the information for the benefit of the customers.

Marketing Information System.

1. 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..

1. Assessing Marketing Information Needs. Balancing what the information users would like to have against what they need and what is feasible to offer. Too much information can be as harmful as too little information. The MIS must monitor the marketing environment to provide decision makers with information they should have to better understand customers and make key marketing decisions..

2. Developing Marketing Information. Marketers can obtain the needed information from: A. Internal data B. Marketing intelligence C. Marketing research.

A. Internal Databases. Internal databases are electronic collections of consumer and market information obtained from data sources within the company network. Problems with internal databases: 1. Information may have been collected for other purposes and could be incomplete or wrong. 2. Data ages quickly 3. Managing the large amount of information that a company produces is a challenge..

B. Marketing Intelligence. Competitive Marketing Intelligence-The systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketplace. Marketing intelligence techniques: 1. Observing consumers 2. Asking employees of the company for information 3. Benchmarking competitors products 4. Researching the Internet.

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

Steps in the Marketing Research Process.

1. Define the Problem and Research Objectives. The statement of the problem and research objectives guides the entire research process. Marketing managers must not define the problem too broadly or too narrowly for the marketing researcher..

1. Define the Problem and Research Objectives. Example of a research study: An airline company would like to add an in-flight Internet service for its first-class passengers on its flight. Defining the problem too broadly: A marketing manager asks marketing researchers to find out everything about the needs of first-class passengers. This approach will result in the collection of a lot of unnecessary information. Defining the problem too narrowly: A marketing manager asks marketing researchers to find out whether passengers on flights from Amman to Dubai would be willing to pay 25JD for an Internet connection. This approach will result in limited information. Define the problem as follows: Will offering an in-flight Internet service create enough profits for the airline company to justify its cost against other possible investments in service improvements that the company can make?.

1. Define the Problem and Research Objectives. Three types of research: Exploratory research: The objective is to gather preliminary information that will help define the problem and suggest hypotheses. Descriptive research—Describes marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers.. Causal research—Tests hypothesis about cause and effect relationships..

2. Developing the Research Plan for Collecting Information.

2. Developing the Research Plan for Collecting Information.

Secondary Data. Secondary data consists of information that already exists somewhere, having been collected for another purpose. Examples: commercial online databases and Internet search engines. Advantages of secondary data: Low cost Information can be obtained quickly Some data can not be obtained by the company in any other way..

Secondary Data. Disadvantages of secondary data: Companies can not get all the data that they need Information may not be very usable for current research project The researcher must evaluate the secondary data to make sure that the information: Is relevant (fits the research projects needs) Is accurate ( reliably collected and reported) Is current (up to date enough for current decisions).

Primary Data Collection. Primary data consists of information gathered for the special research plan. Planning primary data collection involves making decisions on: A) The research approach B) The contact methods C) The sampling plan D) The research instrument.

A) The Research Approaches. Observational research involves gathering primary data by observing relevant people, actions, and situations. Ethnographic research involves sending trained observers to watch and interact with consumers in their natural environment..

A) The Research Approaches. Survey research is the most widely used method and is best for descriptive information—knowledge, attitudes, preferences, and buying behavior. Advantage Flexible Disadvantages People may be unable or unwilling to answer People may give misleading or pleasing answers Privacy concerns Experimental research is best for gathering causal information—cause-and-effect relationships..

B) The Contact Methods. 1. Mail Questionnaires- Used to collect large amount of information. 2. Telephone inteviewing- Provides greater flexibility than mail questionnaires but is more expensive. 3. Personal interviewing A) Individual interviewing.

B) The Contact Methods. B) Group interviewing- Focus Groups Six to 10 people Trained moderator Challenges Expensive Difficult to generalize from small group Consumers not always open and honest.

Focus Group. [image].

B. The Contact Methods. 4. Online marketing research Advantages: Low cost Speed Higher response rates Good for hard to reach groups.

C) The Sampling Plan. Sample is a segment of the population selected for marketing research to represent the population as a whole. Designing the sample requires three decisions: Who is to be studied? How many people should be studied? How should the people be chosen?.

C) The Sampling Plan. Probability Sample Simple random sample Every member of the population has a known and equal chance of selection Stratified random sample The population is divided into mutually exclusive groups and random samples are drawn from each group Cluster (area) sample The population is divided into mutually exclusive groups and the researcher draws a sample Nonprobability Sample Convenience sample The research selects the easiest population members Judgment sample The researcher uses their judgment to select population members Quota sample The researcher finds and interviews a prescribed number of people in each of several categories.

D) The Research instrument. Questionnaires: Most common research instrument Administered in person, by phone, or online Flexible Research must be careful with wording and ordering of questions.

D) The Research instrument. Closed-end questions include all possible answers, and subjects make choices among them. Provide answers that are easier to interpret and tabulate Open-end questions allow respondents to answer in their own words Useful in exploratory research.

3) Implementing the Research Plan. 3) Implementing the Research Plan Collecting the information Processing the information Analyzing the information.

4) Interpreting and Reporting the Findings. 4) Interpreting and Reporting the Findings The researcher must interpret the findings, draw conclusions, and report them to management. . The researcher should only present the important findings and insight that are useful in the major decisions faced by management..

Reference. Kotler, Philip and Gary Armstrong, Principles of Marketing, 15th edition, Pearson Education Limited, 2014..