• Companies with superior information enjoy a
• The company can :
1)choose its markets better,
2)develop better offerings, and
3)execute better marketing planning
Marketing information system
• A marketing information system is a
management information system designed to
support marketing decision making.
• PHILIP KOTLER:
• "A marketing information system is a
continuing and interacting structure of people,
equipment and procedures to gather, sort,
analyze, evaluate, and distribute pertinent,
timely and accurate information for use by
marketing decision makers to improve their
marketing planning, implementation, and
• A marketing information system (MIS) is
a set of procedures and methods
designed to generate, analyze,
disseminate, and store anticipated
marketing decision information on a
regular, continuous basis. An information
system can be used operationally,
managerially, and strategically for several
aspects of marketing.
Internal reporting systems
• Supplies results data.
• The internal records of
production, warehousing, distribution , direct
selling, cash flow , creditors are in internal
reporting department system.
• E.g. sales, orders, customer
profiles, stocks, customer service reports etc
Internal reporting system has focus on
four marketing activities
• The order to payment cycle
• Sales information system
• Data base , data warehousing and
1.Customers and sales representatives fax or e-mail
2.Computerized warehouses quickly fill these
3.The billing department sends out invoices as
quickly as possible.
using the Internet and extranets to improve the
speed, accuracy, and efficiency of the order-to-
Sales Information System
Marketing managers need timely and
accurate reports on current sales.
Databases, Data Warehousing, and
companies organize their information in
Organizations combine data from the
Marketing intelligence systems:
• Supplies happenings data
• A set of procedures and data sources used by
marketing managers used to obtain every day
information from the marketing environment that
they can use in their decision making.
Steps to Improve Marketing Intelligence
• Train and motivate sales force
• Motivate channel members to share intelligence
• Network externally
• Utilize customer advisory panel
• Utilize government data resources
• Purchase information
• Collect customer feedback online
Marketing Decision Support System
• A set of statistical tools and techniques
models with hardware and software support
that helps the manger in analysing the
information properly and using it in making
better and effective marketing decisions
Marketing research systems
• Marketing research:
• Systematic gathering recording and analysing
of data about problems relating to the
marketing of goods and services
• According to American
“Marketing Research is the
function that links the consumer,
customer and public to the
marketer through information-
information used to identify and
define marketing opportunities
and problems, generate, refine
and evaluate marketing actions;
monitor marketing performance;
and improve understanding of
marketing as a process.”
• PHILIP KOTLER
• It is the systematic design , collection and analysis
and reporting of data analysis and findings relevant
to specific marketing situation facing the company.
Marketing research characteristics
Who Is Responsible for Marketing Research
Most large companies have their own marketing
At much smaller companies, marketing research is
often carried out by everyone in the company
Business Organizations normally budget marketing
research at 1 to 2 percent of company sales
Marketing research & firms
Syndicated-service research firms Gather & sell
Custom marketing research firms hired to carry out
Specialty-line marketing research
(specialized in services) sells
field interviewing services to
The Marketing Research Process
six steps as
Step 1) Defining the Problem
• Should not be defined too broadly or too
narrowly . Clarity on the following:
a. What is to be researched? (the content , the
b. Why it is to be researched? (the decision that
are to be made)
Step 2) Developing Research Plan
Designing a research plan calls for decisions on
the data sources, research approaches,
research instruments, sampling plan, and
• A research design encompasses the
methodology and procedure employed to
Primary data can be collected in five ways:
• Gather fresh data by
observing the relevant
actors and settings
Gathering of six to ten people who are carefully
selected based on certain
demographic, psychographic, or other
considerations and brought together to
discuss at length various topics of interest.
Customers leave traces of their
purchasing behavior in store
scanning data, catalog purchases,
and customer databases.
Companies undertake surveys to learn
about people's knowledge, beliefs,
preferences, and satisfaction, and to
measure these magnitudes in the general
Requires development of a survey
The most scientifically valid. The purpose of
experimental research is to capture cause-
and-effect relationships by eliminating
competing explanations of the observed
• Experiments call for selecting matched groups
of subjects, subjecting them to different
treatments, controlling extraneous variables,
and checking whether observed response
differences are statistically significant.
Three main research instruments in collecting
2) qualitative measures,
3) Technological devices.
• Consist of a set of questions presented to
• To collect primary data.
QR techniques are relatively unstructured
measurement approaches that permit a
range of possible responses, and they are
a creative means of ascertaining
consumer perceptions that may
otherwise be difficult to uncover.
• Mechanical devices are occasionally used in marketing
• Eye cameras study respondents' eye movements to see
where their eyes land first, how long they linger on a given
item, and so on.
• Audiometers can be attached to television sets in
participating homes to record when the set is on and to
which channel it is tuned.
SAMPLING PLAN After deciding on the research
approach and instruments, the marketing
researcher must design a sampling plan.
1. Sampling unit: Who is to be surveyed?
2. Sample size: How many people should be surveyed?
3. Sampling procedure: How should the respondents
• Simple random sample: Every member of
the population has an equal chance of selection.
• Stratified random sample: The population
is divided into mutually exclusive groups (such as
age groups), and random samples are drawn from
• Cluster (area) sample: The population is
divided into mutually exclusive groups (such as city
blocks), and the researcher draws a sample of the
groups to interview.
A. Probability Sample
B. Non-probability Sample
• Convenience sample: The researcher selects
the most accessible population members.
• Judgment sample: The researcher selects
population members who are good prospects for
• Quota sample: The researcher finds and
interviews a prescribed number of people in each
of several categories.
Once the sampling plan has been determined, the marketing
researcher must decide how the subject should be
Step 3: Collect the Information
• Getting the right respondents is critical.
• In the case of surveys, four major problems
1) Some respondents will not be at home and
must be contacted again or replaced.
2) respondents will refuse to cooperate.
3) some will give biased or dishonest answers.
4) some interviewers will be biased or dishonest.
Step 4: Analyze the Information
The next-to-last step in the process is to extract
findings from the collected data.
The researcher tabulates the data and develops
Averages and measures of dispersion are computed for
the major variables.
The researcher will also apply some advanced statistical
techniques and decision models in the hope of
discovering additional findings.
Step 5: Present the Findings
The researcher should present findings that are
relevant to the major marketing decisions
Step 6: Make the Decision
• The last step is decision-making process.
Evaluating the decision made. Managers decide:
• To use
• To discard
• To carry more research
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