Managing Marketing Information to Gain Customer Insights Principles of marketing_chapter_4

1. Chapter 4- slide 1Copyright © 2009 Pearson Education, Inc.
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Chapter Four
Managing Marketing Information
to Gain Customer Insights
Instructor: Mashnun Hassan

2. Learning Objectives
• Assessing Marketing Information Needs
• Developing Marketing Information
• Marketing Research
• Analyzing Marketing Information
Topic Outline
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• Analyzing Marketing Information
• Distributing and Using Marketing
Information
• Other Marketing Information
Considerations

3. Marketing Information and
Customer Insights
• Fresh and deep insights into
customers needs and wants
• Difficult to obtain
Customer Insights are:
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• Difficult to obtain
– Not obvious
– Customer’s unsure of their behavior
• Not derived from more information but
better information and more effective
use of existing information

4. Marketing Information and
Customer Insights
• Companies are forming customer
insights teams
– Include all company functional areas
Customer Insights
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– Include all company functional areas
– Use insights to create more value for their
customers
– Customer controlled could be a problem

5. Marketing Information and
Customer Insights
Marketing information system (MIS)
consists of people and procedures for:
– Assessing the information needs
Marketing Information Systems (MIS)
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– Assessing the information needs
– Developing needed information
– Helping decision makers use the
information for customer

6. Assessing Marketing Information
Needs
MIS provides information to the
company’s marketing and other
managers and external partners such
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managers and external partners such
as suppliers, resellers, and marketing
service agencies

7. Assessing Marketing
Information Needs
• Balancing what the information users
would like to have against what they
need and what is feasible to offer
Characteristics of a Good MIS
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need and what is feasible to offer
User’s
Needs
MIS
Offerings

8. Developing Marketing Information
Internal data
Marketers obtain information from
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Marketing intelligence
Marketing research

9. Developing Marketing Information
Internal databases are electronic
collections of consumer and market
information obtained from data sources
Internal Data
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information obtained from data sources
within the company network

10. Developing Marketing Information
Marketing intelligence is the systematic
collection and analysis of publicly available
information about consumers, competitors,
Marketing Intelligence
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information about consumers, competitors,
and developments in the marketplace

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

12. Developing Marketing Information
Marketing Research
Defining the Problem and Research Objectives
Exploratory research
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Exploratory research
Descriptive research
Causal research

13. Developing Marketing Information
• Outlines sources of existing data
• Spells out the specific research
Marketing Research
Developing the Research Plan
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• Spells out the specific research
approaches, contact methods, sampling
plans, and instruments to gather data

14. Developing Marketing Information
Management problem
Research objectives
Marketing Research
Written Research Plan Includes:
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Research objectives
Information needed
How the results will help
management decisions
Budget

15. Developing Marketing Information
Secondary data consist of information
that already exists somewhere, having
Marketing Research
Developing the Research Plan
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that already exists somewhere, having
been collected for another purpose
Primary data consist of information
gathered for the special research plan

16. Developing Marketing Information
Advantages
Cost
Disadvantages
Current
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Speed
Could not get
data otherwise
Relevant
Accuracy
Impartial

17. Developing Marketing Information
Planning Primary Data
Collection
Research
approaches
Marketing Research
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approaches
Contact methods
Sampling plan
Research
instruments

18. Developing Marketing Information
Observational research involves
gathering primary data by observing
Market Research
Research Approaches
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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

19. Developing Marketing Information
Survey research is the most widely used
method and is best for descriptive
Market Research
Research Approaches
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method and is best for descriptive
information—knowledge, attitudes,
preferences, and buying behavior
• Flexible
• People can be unable or unwilling to answer
• Gives misleading or pleasing answers
• Privacy concerns

20. Developing Marketing Information
Experimental research is best for
gathering causal information—
Market Research
Research Approaches
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gathering causal information—
cause-and-effect relationships

21. Developing Marketing Information
• Focus Groups
– Six to 10 people with a trained moderator
Marketing Research
Contact Methods
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– Challenges
• Expensive
• Difficult to generalize from small group
• Consumers not always open and honest

22. Developing Marketing Information
Online
Internet Online
Marketing Research
Contact Methods
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Online
marketing
research
Internet
surveys
Online
panels
Online
experiments
Click-
stream data
Online
focus
groups

23. Developing Marketing Information
Advantages
• Low cost
Disadvantages
• Restricted
Marketing Research
Online Research
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• Low cost
• Speed
• Higher
response rates
• Good for hard
to reach
groups
• Restricted
internet
access
• Not sure who
is answering

24. Developing Marketing Information
Sample is a segment of the population
selected for marketing research to
Marketing Research
Sampling Plan
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selected for marketing research to
represent the population as a whole
– Who is to be surveyed?
– How many people should be surveyed?
– How should the people be chosen?

25. Developing Marketing Information
Marketing Research
Research Instruments
Questionnaires
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• Most common
• Administered in person, by phone,
or online
• Flexible
• Watch working and ordering of
questions

26. Developing Marketing Information
• Closed-end questions include all possible
answers, and subjects make choices
among them
Marketing Research
Research Instruments - Questionnaires
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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

27. Developing Marketing Information
Checkout
scanners
Marketing Research
Research Instruments
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Mechanical
devices
People meters
Neuro-
marketing

28. Developing Marketing Information
Collecting the information
Marketing Research
Implementing the Research Plan
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Processing the information
Analyzing the information
Interpret findings
Draw conclusions
Report to management

29. Analyzing Marketing Information
• CRM consists of sophisticated software
and analytical tools that integrate
Customer Relationship Management
(CRM)
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and analytical tools that integrate
customer information from all sources,
analyze it in depth, and apply the results
to build stronger customer relationships

30. Analyzing Marketing Information
Service and
Customer Relationship Management
Touchpoints
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Customer
purchases
Sales force
contacts
Service and
support
calls
Web site
visits
Satisfaction
surveys
Credit and
payment
interactions
Research
studies

31. Distributing and Using Marketing
Information
Information distribution involves
entering information into databases
and making it available in a time-
useable manner
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useable manner
• Intranet provides information to
employees and other stakeholders
• Extranet provides information to key
customers and suppliers

32. Other Marketing Information
Considerations
Marketing Research in Small Businesses
and Nonprofit Organizations
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International Market Research
Public Policy and Ethics
• Customer privacy
• Misuse of research findings