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Chapter 8: Improving Decisions with Marketing Information

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Marketing Information System (MIS)

Organized for a continuous flow of information Gathering information Accessing information Analyzing information

Development of intranets is speeding the adoption Multimedia information, not just numerical data Search engines make information easier to find

Design of the MIS requires data processing expertise and marketing expertise

Use of MIS is focused on making better marketing decisions Strategy planning Details of implementation Timely control procedures

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Decision Support System (DSS)

A computer program—an interface—between the manager and the MIS

Makes it easy to get needed informationSearch engines are a powerful tool for finding

what’s neededEasy access to databases in a data warehouse

Makes it easy to analyze the informationMay involve marketing models—to show the

relationships among different marketing variablesIs used as the manager is making decisions

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Examples of Uses of a Decision Support System

Selecting target markets Competitive evaluation, such as changes in

market shareCustomer analysisSales analysisCost analysisAnalysis of responses to elements of

marketing mix Forecasting

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Marketing Research

Procedures to gather and analyze information for marketing decision making

Focus is on new information not already available in the MIS or other secondary data sources

May be handled inside the firm or by outside specialistsCooperation is needed between technical

specialists and manager/decision makers

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Definingthe

Problem

Analyzingthe

Situation

GettingProblem-Specific

Data

Inter-preting

Data

Solvingthe

Problem

EarlyIdentification

ofSolution

Feedback to Previous Steps

8-4

Exhibit 8-2

Marketing Research Process

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Primary and Secondary DataPRIMARY DATA: Information specifically collected to

solve a current problem. Examples:surveysexperimentsobservational studies

SECONDARY DATA: Information that has previously been collected or published. Some examples:information from the Internet or a firm’s intranetdata from Bureau of the Censuscomputer databasesinternal reportsindustry trade associations

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SecondaryData

Sources

Inside Company

Outside Company

Observation

Questioning

PrimaryData

Sources

AllData

Sources

8-5

Exhibit 8-3

Sources of Data

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Before Gathering Primary Data

A manager should determine:

1] Is is possible to reduce the uncertainty of this decision?

2] How much is that reduction of uncertainty worth? Is the value > cost?

3] Can I get information from the research fast enough to be useful?

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Five Situations When Marketing Research Not Needed

1. Information already available2. Insufficient time frame3. Inadequate resources4. Costs outweigh the value of the research5. Strategic importance of the problem

Explain the differences between data and informationChanging View of the

Marketing Research Process

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Focus Group Interviews

A popular type of qualitative research Involves a small group (usually 6 to 10 people) in a

discussion—usually for about 1 hourA group leader ("interviewer") unobtrusively guides the

discussionDesigned to get in-depth, open-ended responses, not

intended to be "representative" of larger marketGroup interaction stimulates thinking and reactionsAnalysis of results is subjectiveMay involve videotaping and or “on-line sessions” and

other technologies

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Collecting Data

8-6

PrimaryMethods

forCollecting

SurveyData

Mail

Telephone

PersonalInterview

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Key Issuesin Data

Interpretation

Population

ConfidenceIntervals

Validity

Sample

Interpreting Data

8-7