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  1. 1. Marketing Information Systems & Marketing Research
  2. 2. <ul><li>Learning outcomes </li></ul><ul><li>Understand the importance of accurate and timely information to any organisation </li></ul><ul><li>Explore the differences between marketing and market research </li></ul><ul><li>Understand the importance of Marketing Information System and its parts </li></ul><ul><li>Explain the marketing research process </li></ul>
  3. 3. Introduction <ul><li>Marketing was the first functional area to exhibit an interest in MIS </li></ul><ul><li>The marketing information system has three subsystems; (1)Accounting Information System,(2) Marketing Research, and (3) Marketing Intelligence </li></ul><ul><li>Functional information systems: the conceptual systems should be &quot;mirror images&quot; of the physical systems </li></ul>
  4. 4. Marketing Information System <ul><li>An organised way of continually gathering and analysing information from every source relevant to the organisation </li></ul><ul><li>MIS consist of people, equipment, and procedures to gather, sort, analyse, evaluate and distribute needed information to the marketing decision makers </li></ul><ul><li>A MIS incorporates & combine the main aspects of marketing research into a centralised management function which will maintain a tight control on research procedures & ensure an accurate data bank of information about customers, products etc. </li></ul><ul><li>A MIS which can link external data with internal sources, such as sales record, customer records & competitor information will provide a strong basis for informed marketing decisions </li></ul>
  5. 5. Marketing Information System 2 <ul><li>Developing Information -Involves obtaining the needed information for managers from different sources </li></ul><ul><li>Internal data is secondary research already available within the organisation. </li></ul><ul><li>This can come from </li></ul><ul><li>-Accounting -Sales force -Marketing -Manufacturing </li></ul>
  6. 6. Functional information systems Marketing information system Manufacturing information system Finance information system Human resource information system Marketing function Manufacturing function Finance function Human resources function Physical system of the firm Functional Information Systems Represent Functional Physical Systems Information resource information system Information Services function
  7. 7. The Marketing Information System (MKIS) <ul><li>Kotler's marketing nerve center </li></ul><ul><li>3 information flows </li></ul><ul><ul><li>Internal </li></ul></ul><ul><ul><li>Intelligence (from environment) </li></ul></ul><ul><ul><li>Communications (to environment) </li></ul></ul>
  8. 8. Firm Environ- ment Marketing intelligence Marketing communications Internal marketing information Kotler’s Information Flows
  9. 9. Marketing Information System (MKIS) -Definition <ul><li>A computer-based system that works in conjunction with other functional information systems to support the firm's management in solving problems that relate to marketing the firm's products. </li></ul>
  10. 10. An MKIS Model <ul><li>Outpu t </li></ul><ul><ul><li>product </li></ul></ul><ul><ul><li>place </li></ul></ul><ul><ul><li>promotion </li></ul></ul><ul><ul><li>price </li></ul></ul><ul><ul><li>integrated mix </li></ul></ul><ul><li>Database </li></ul><ul><li>Input </li></ul><ul><ul><li>AIS </li></ul></ul><ul><ul><li>marketing research </li></ul></ul><ul><ul><li>marketing intelligence </li></ul></ul>
  11. 11. Input subsystems Output subsystems D A T A B A S E Accounting informationsystem Marketing research subsystem Marketing intelligence subsystem Internal sources Environmental sources Product subsystem Place subsystem Promotion subsystem Price subsystem Integrated-mix subsystem Users Data Information Marketing Information System Model
  12. 12. Accounting Information System <ul><li>Sales order data is input. </li></ul><ul><li>AIS provides data for </li></ul><ul><ul><li>Periodic reports </li></ul></ul><ul><ul><li>Special reports </li></ul></ul><ul><ul><li>Mathematical models and knowledge-based models </li></ul></ul>
  13. 13. Marketing Research <ul><li>Marketing research is the systematic and objective identification, collection, analysis, dissemination, and use of information for the purpose of assisting management in decision making related to the identification and solutions of problems and opportunities in marketing </li></ul>
  14. 14. Application of MR <ul><li>Marketing research activities can be divided into four main strategic categories: </li></ul><ul><ul><li>Market Analysis </li></ul></ul><ul><ul><ul><li>Identifying and evaluating opportunities </li></ul></ul></ul><ul><ul><ul><li>Competitive Analysis </li></ul></ul></ul><ul><ul><li>Market Segmentation </li></ul></ul><ul><ul><ul><li>Analyzing market segments and selecting target markets </li></ul></ul></ul><ul><ul><li>Marketing Strategy Design </li></ul></ul><ul><ul><ul><li>Planning and implementing a marketing mix </li></ul></ul></ul><ul><ul><li>Analyzing Marketing Performance </li></ul></ul>
  15. 15. Purposes of Marketing Research <ul><li>Identify changes in the existing market </li></ul><ul><li>Build up a knowledge bank </li></ul><ul><li>Improve market awareness & opportunities </li></ul><ul><li>Reduce risk and uncertainty </li></ul><ul><li>Support marketing mix decisions </li></ul><ul><li>Support marketing planning and controls </li></ul><ul><li>Improve understanding of marketing </li></ul><ul><li>Solve ad hoc problems </li></ul>
  16. 16. Marketing and Market Research <ul><li>Marketing research - is the gathering of information on all activities of marketing </li></ul><ul><li>Market research - is the gathering of information on a particular market for a product or service </li></ul><ul><li>Marketing research has a wider scope than market research </li></ul>
  17. 17. Types of research information <ul><li>Market research - information about the market for a given product/service - likely demand -market characteristics & trends -market share </li></ul><ul><li>Promotion research -effects of advertising on sales -effectiveness of promotion methods/media; sales areas </li></ul>
  18. 18. <ul><li>Types of research information….cont’d </li></ul><ul><li>Product research covers information about the proposed/improved product: -competing products -customer acceptance -test marketing of potential new users </li></ul><ul><li>Price research - customer perception of price/quality/value -profit margin </li></ul><ul><li>Distribution research -location & design of distribution centre -costs of transportation/storage </li></ul>
  19. 19. Types of research <ul><li>Exploratory research </li></ul><ul><li>Problem solving research </li></ul><ul><li>Qualitative research - seeks in-depth, open-ended and unquantifiable information describing opinions, values etc, rather than sizes and amounts in numerical form </li></ul><ul><li>Quantitative research -seeks structured responses that can be quantified in numerical form rather than general, open-ended information </li></ul>
  20. 20. The Research Process <ul><li>Define the Research Problem </li></ul><ul><li>Determine Research Design and Data Sources </li></ul><ul><li>Develop Sample Design and Sample Size </li></ul><ul><li>Develop Measurement Instruments </li></ul><ul><li>Collect and Prepare Data </li></ul><ul><li>Analyze and Interpret Data </li></ul><ul><li>Communicate Results </li></ul>
  21. 21. Step 1: Identifying and Formulating the Research Problem/Opportunity <ul><li>Process begins with the recognition of a marketing problem or opportunity: </li></ul><ul><ul><li>Marketing Problem : Set of circumstances in a market and/or in the company that requires modified or new marketing strategy to respond in a way that will maintain or improve performance. </li></ul></ul><ul><ul><li>Market Opportunity : Set of circumstances in a market that defines a situation in which a company can improve performance by creating modified or new marketing strategy. </li></ul></ul>
  22. 22. Step 2: Determine the Research Design and Data Sources <ul><li>Exploratory, Descriptive, Causal </li></ul><ul><li>Secondary vs. Primary Data </li></ul><ul><li>Survey research </li></ul><ul><li>Observation research </li></ul><ul><li>Focus Groups </li></ul><ul><li>Experiments </li></ul><ul><li>(explanation follows…) </li></ul>
  23. 23. Two Research Methods <ul><li>Secondary : use of existing research already done </li></ul><ul><ul><li>Government </li></ul></ul><ul><ul><li>Consulting firms </li></ul></ul><ul><ul><li>Newspaper and magazine articles </li></ul></ul><ul><li>Primary : creation of specific studies to answer specific questions </li></ul>
  24. 24. Primary Research Methods <ul><li>Surveys </li></ul><ul><li>Experimentation </li></ul><ul><li>Observation </li></ul><ul><li>Focus groups </li></ul><ul><li>In-depth interviews </li></ul><ul><li>Projective techniques </li></ul><ul><li>Physiological Measures </li></ul>
  25. 25. Surveys <ul><li>Planned questions </li></ul><ul><ul><li>Open-ended </li></ul></ul><ul><ul><li>Closed-ended </li></ul></ul><ul><li>Need large sample sizes for precise conclusions </li></ul><ul><li>Forms </li></ul><ul><ul><li>Mail </li></ul></ul><ul><ul><li>Telephone </li></ul></ul><ul><ul><li>Mall Intercept </li></ul></ul><ul><ul><li>Computer/Internet </li></ul></ul><ul><li>Problem questions </li></ul><ul><ul><li>Leading </li></ul></ul><ul><ul><li>Ambiguous </li></ul></ul><ul><ul><li>Unanswerable </li></ul></ul><ul><ul><li>Two questions in one </li></ul></ul><ul><ul><li>Non-exhaustive question </li></ul></ul><ul><ul><li>Non-mutually exclusive answers </li></ul></ul>
  26. 26. Experimentation <ul><li>Subjects in different groups treated differently </li></ul><ul><ul><li>E.g., for some, “target” product is given better shelf space </li></ul></ul><ul><ul><li>E.g., some get coupon </li></ul></ul><ul><li>Can help isolate causes </li></ul><ul><li>Subject is biased by questions—does not know how others are treated </li></ul>
  27. 27. Observation <ul><li>Looking at consumes in the field—e.g., </li></ul><ul><ul><li>Searching for product category area </li></ul></ul><ul><ul><li>Number of products inspected and time spent on each </li></ul></ul><ul><ul><li>Involvement of others </li></ul></ul><ul><ul><li>Behavior under limiting circumstances (e.g., time constraints) </li></ul></ul>
  28. 28. Focus Groups <ul><li>Groups of 8-12 consumers assembled </li></ul><ul><li>Start out talking generally about context of product </li></ul><ul><li>Gradually focus in on actual product </li></ul>
  29. 29. In-depth interviews <ul><li>Structured vs. unstructured interviews </li></ul><ul><li>Generalizing to other consumers </li></ul><ul><li>Biases </li></ul>
  30. 30. Projective Techniques <ul><li>Measurement of attitudes consumers are unwilling to express </li></ul><ul><li>Consumer discusses what other consumer might think, feel, or do </li></ul>
  31. 31. Step 3: Design Sample <ul><li>Sample: a subset from a larger population </li></ul><ul><li>Probability vs. no probability sample </li></ul><ul><li>Number of respondents </li></ul><ul><li>Method of contact </li></ul><ul><li>Management of non-response </li></ul><ul><li>Detailed field instructions </li></ul><ul><li>Handling of data </li></ul>
  32. 32. Step 4: Develop Measurement Instruments <ul><li>What observation form or questionnaire will be best suit the needs of the project? </li></ul><ul><li>Anonymous? Confidential? </li></ul><ul><li>Structured vs. open-ended </li></ul><ul><li>What types of rating scales? </li></ul><ul><li>What is the layout going to look like? </li></ul>
  33. 33. Step 5: Collect and Prepare Data <ul><li>Editing and Coding </li></ul><ul><li>Data Entry </li></ul><ul><li>Data Cleansing </li></ul><ul><li>Summarization </li></ul><ul><li>Error Assessment </li></ul><ul><li>Reliability/Validity </li></ul>
  34. 34. Types of data <ul><li>Primary data -information or statistics observed and recorded or collected directly from respondents for the first time during a marketing research study </li></ul><ul><li>Primary information </li></ul><ul><ul><li>provides information of current needs </li></ul></ul><ul><ul><li>but is expensive and time consuming </li></ul></ul>
  35. 35. Types of data <ul><li>Secondary data Information already collected or published and compiled inside or outside the organisation </li></ul><ul><li>Secondary information </li></ul><ul><ul><li>quick, relatively inexpensive </li></ul></ul><ul><ul><li>check that the information is Relevant, Accurate, Current & Impartial </li></ul></ul>
  36. 36. <ul><li>Using secondary data </li></ul><ul><li>As a backdrop to primary research eg when doing basis research in unfamiliar territory </li></ul><ul><li>As a substitute for research - information already available or in cases where it is not worth doing primary research </li></ul><ul><li>As a technique in itself - eg for collecting historic data on market trends </li></ul>
  37. 37. Step 6: Analyzing the Data <ul><li>Purpose of the analysis is to interpret and draw conclusions from the mass of collected data </li></ul><ul><li>Must select appropriate analytic tools to match data, research objectives, and information needs </li></ul>
  38. 38. Step 7: Communicating Results <ul><li>Researchers must remember to speak in managerial terms rather than in the terminology understood only by research specialists </li></ul><ul><li>Reports should outline technical details of the research project and methods in an appendix, if at all </li></ul><ul><li>Researchers should spell out their conclusions in clear, concise, and actionable terms </li></ul><ul><ul><li>Be open-minded to findings, be willing to refute expectations, and acknowledge limitations. </li></ul></ul>
  39. 39. Marketing Intelligence Subsystem <ul><li>A relatively unstructured approach to gathering information about the marketing environment </li></ul><ul><li>Sources: -regularly scanning newspapers -using specialised media cutting service -listening to employees -listening to intermediaries -employing a consultant. </li></ul>
  40. 40. Key concept in assessing the quality of research. <ul><li>Validity: refers to how well a research design (and the research method and the measures or questions used) measure what it claims to measure. </li></ul><ul><li>Reliability : refers to the consistency of research results. In other words, if we repeat the research, or if a different interviewer undertake the fieldwork, will we get the same result </li></ul><ul><li>Representative ness : </li></ul>