MIS and Marketing Research

8/12/2019 MIS and Marketing Research

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MISis a planned system of collecting, processing,

storing and disseminating data in the form of

information needed to carry out the functions of

management.

According to Phillip KotlerA marketing

information system consists of people, equipment and

procedures to gather, sort, analyse, evaluate and

distribute information to marketer


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FirmEnviron-

ment

Marketing intelligence

Marketing communications

Internal

marketing

information

Kotlers Information Flows


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Internal

records

Marketing

decision

support

analysis

Distributing

information

MarketingEnvironment

Target markets

Marketingchannels

Competitors

Publics

Macroenviron-ment forces

Assessinginformation

needs

MarketingManagers

Analysis

Planning

Implemen-tation

Control

Developing Information

Marketing decisions and

communication

Marketing Information System

Marketing

intelligence

Marketing

research


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Begins and Ends with Information Users:

Interacts with information users to assess information

Develops needed information from internal and external

sources

Helps users analyze information for marketing decisions

Distributes the marketing information and helps

managers use it for decision making


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COMPONENTS

INTERNAL REPORT

SYSTEM

MARKETING

INTELLIGENCE SYSTEM

MARKETING DECISION

SUPPORT SYSTEM

MARKETING RESEARCH

SYSTEM


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Internal report system- Internal database is gathered by

customer databases, financial records and operations reports.

Marketing intelligence system- is the systematic collection and

analysis of publicly available information about competitors and

trends in the marketing environment.

Marketing decision support system- coordinated collection of

data, systems, tools and techniques with supporting software

and hardware.

Marketing research system- is a systematic design, collection,

analysis and reporting of data relevant to a specific marketing

situation facing an organization.


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Anticipation of consumer demand- marketing managers have to keep

updated info. about his or her consumersneed and wants and for this mkis is

helpful

Complexity of marketing- marketing activity is becoming more complex and

broader in scope. To cope up with it we require current information and the

future information.

To determine the economic indicators i.e demand & supply- marketing

managers should have adequate info about the latest trends in market supply

and price change. Moreover in order to forecast about future a marketing

manager is always dependent on economic indicators.

To determine the current development in technology- managers require

adequate info. for determining current development in technology and this is

possible through mkis.

Understanding the consumer- fill he gap between marketer and customer.

Marketing planning- effective marketing planning is required in terms of

product planning, pricing, promotion and distribution. such planning will be

possible only if the company is possessing adequate and relevant information.

this is also possible through MIS.


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Functional information systemsMarketing

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


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An MIS Model

u Output product

place

promotion price

integrated mix

u Database

u Input

AIS

marketing research

marketing intelligence


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Input

subsystemsOutput subsystems

D

A

T

A

B

A

SE

Accounting

information

system

Marketing

research

subsystem

Marketing

intelligence

subsystem

Internal sources

Environmental sources

Productsubsystem

Place

subsystem

Promotion

subsystem

Pricesubsystem

Integrated-

mix

subsystem

Users

Data InformationMarketing Information System Model


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Accounting Information System

u Sales order data is input.

u AIS provides data for

Periodic reports

Special reports

Mathematical models and knowledge-based

models


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MARKET RESEARCH



RESEARCH

E Effective decision making

S Systematic and objective

E Exude or disseminate information

A Analysis of information

R Recommendation for action

C Collection of information

H Helpful to managers

R Recognition of information needs



Marketing Research

The American Marketing Association

(AMA) defined Marketing Research as:

The function that links the consumer, the

customer, and public to the marketer through

INFORMATION



Definition of Marketing Research

"Marketing Research is the systematic

gathering, recording and analyzingof data about problems relating to the

marketing of goods and services."

----

AMA



Identification ofInformation

Needed

Collection ofData

Analysis ofData

Dissemination ofInformation

Identifying andSolving Marketing

Problems

Defining Marketing Research

Use ofInformation



Marketing Research

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.



Factors affecting marketing research

Time

Language

Method Used

Resources

Managerial influence.



Features of marketing research

1. Wide and Comprehensive Scope

2. Systematic and Scientific

3. Collects and Analyses Data

4. Tool for Decision-Making



Application of MR

Marketing research activities can be divided into

four main strategic categories:

Market Analysis

Identifying and evaluating opportunities

Competitive Analysis

Market Segmentation

Analyzing market segments and selecting target

markets

Marketing Strategy Design

Planning and implementing a marketing mix

Analyzing Marketing Performance


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1-23 2007 Prentice Hall

Purposes of Marketing Research Identify changes in the existing market

Build up a knowledge bank Improve market awareness & opportunities

Reduce risk and uncertainty

Support marketing mix decisions Support marketing planning and controls

Improve understanding of marketing

Solve ad hoc problems

Identify market opportunities

Understand the competition

Benchmark effectiveness


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Marketing and Market Research

Marketing research - is the gathering of

information on all activities of marketing

Market research - is the gathering of

information on a particular market for a

product or service.Marketing research has a wider scope than

market research


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Need For Marketing Research

Why do businesses need accurate and up-to-date

information?

To undertake marketing effectively

Changes in technology

Changes in consumer tastes

Market demand

Changes in the product ranges of competitors

Changes in economic conditions

Distribution channels

A Cl ifi ti f M k ti R h


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A Classification of Marketing Research

Marketing Research

Problem

Identification Research

Problem-SolvingResearch

Market Potential ResearchMarket Share Research

Market Characteristics ResearchSales Analysis ResearchForecasting ResearchBusiness Trends Research

Segmentation Research

Product ResearchPricing Research

Promotion Research

Distribution Research


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Problem-Solving Research

Determine the basis of segmentation

Establish market potential andresponsiveness for various

segments

Select target markets

Create lifestyle profiles:demography, media, and

product image characteristics

SEGMENTATION RESEARCH

Test concept

Determine optimal product design

Package tests

Product modification

Brand positioning and repositioning

Test marketing

Control store tests

PRODUCT RESEARCH


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PRICING RESEARCH

Pricing policies

Importance of price in brand selection

Product line pricing

Price elasticity of demand

Initiating and responding to price changes

$ALE

PROMOTIONAL RESEARCH

Optimal promotional budget

Sales promotion relationship

Optimal promotional mix

Copy decisions

Media decisions Creative advertising testing

Evaluation of advertising effectiveness

0.00% APR


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DISTRIBUTION RESEARCH

Determine

Types of distribution

Attitudes of channel members

Intensity of wholesale & retail coverage

Channel margins

Location of retail and wholesale outlets


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Marketing Research Process1. Define the Problem

2. Establish the Research Objectives

3. Determine Research Design

4. Identify Information Types and Sources.

5. Determine Methods of Accessing Data

6. Design Data Collection Forms

7. Determine Sample Plan and Size

8. Collect the Data

9. Analyze the Data

10. Prepare and Present the Final Research

Report

D fi th P bl


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Define the Problem Defining the problem is the single most important step in

the marketing research process. Often studies are commissioned without a clear

understanding of the problem that needs to be

addressed.

Exploratory research is needed to define the problem so

research may be conducted.

Problem definition involves:

1. Specifying the symptoms

2. Itemizing the possible causes of the symptoms

3. Listing the reasonable alternative courses of action that the

marketing manager can undertake to solve the problem.


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Establish the Research Objectives

Research objectives identify what specific pieces

of information are necessary to solve the problem

at hand.

Research objectives step is the specification of the

specific types of information useful to the

managers as they grapple for a solution to themarketing problem at hand.

i h i


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Determine Research DesignThere are three types of research design:

1. Exploratory Research Design- is defined as collecting information in

an unstructured and informal manner. Examples: Reading periodicals,visiting competitors premises, examine company sales and profits vs.industry sales and profit, clipping service.

2. Descriptive Research Design- refers to a set of methods andprocedure that describe marketing variables. Portray these variables

by answering who, what, why and how questions. example: consumerattitude survey to your companies services.

3. Casual Research Designdesigns allow us to isolate causes and theireffects.

Casual research is conducted by controlling various factors to

determine which factor is causing the problem. By changing one factor, say price, we can monitor its effect on a keyconsequence, such as sales. In other words, casual design allows usto determine causality, or which variable is causing another variableto change.


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Identify Information Types and Sources

Basically two types of data information

available to a marketing researcher:I. Secondary data:

Readily available / accessible

Free of charge or Relatively Inexpensive

II. Primary data:

Problem focused

Unbiased

Up-to-date

Proprietary

D i M h d f A i D


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Determine Methods of Accessing DataOnce the researcher has determined which type or types of

information are needed, he or she must determine methods of

accessing data.Methods of accessing external secondary data have

improved over the last five years:

Information processing technology.

Easy and Quick retrieval.

Internal data- company reports, salespersons, executives,MIS and other information sources.

There are several different methods of collecting primarydata including:

Telephone surveys

Mail surveys

Door-to-door interviews

Mall-intercept studies

New data collection methods are emerging.

Design Data Collection Forms


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Design Data Collection Forms

Questionnaires and observation forms must be designed

with great care.

Questionnaires which record the information

communicated by respondents or the respondents

behavior as observed by the researcher

Structured Questionnaires - list questions that have

pre-specified answer choices. Unstructured questionnaires have open ended

questions and/or questions that are asked based on a

response.

D t i S l Pl d Si


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Determine Sample Plan and Size

A sample plan identifies who is to be sampled and

how to select them for study.

A sample element refers to a unit of the entity being

studied.

A sample Frame is a list from which the sample

elements are drawn for the sample.

Methods are available to help the researcher

determine the sample size required for the research

study.

Collect the Data


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Collect the Data Data collection is usually done by trained interviewers who are

employed by field data collection companies to collect primary

data.

Being aware of errors that may occur is important.

Non-sampling Errors are attributable to factors other than

sampling errors.

Wrong sample elements to interview

Securing participants who refuse to participate

Not a home Interviewing subjects who give the wrong information.

Hiring interviewers who cheat and fill out fictitious

survey questionnaires.

A l D t


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Analyze Data Data analysis involves entering data into computer files,

inspecting it for errors and running tabulations and various

statistical tests.

Data cleaning process by which the raw data are checked to

verify that the data has been correctly inputted from the data

collection form to the computer software program. Use SPSS

Coding is the process of assigning all response categories a

numerical value males=1, females=2.

Tabulation which refers to the actual counting of the

number of observations that fall into each possible response

category.

Prepare and Present the Final


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Prepare and Present the Final

Research Report

Preparing the marketing research report involves

describing the process used, building meaningful

tables, and using presentation graphics for clarity.

Preparing the SPSS software allows you to prepare

graphics to enhance your written or oral

presentation.


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Role of MR

SituationAnalysis

StrategyDevelopment

MktProgram

Development

Implementation

Environment & MktSWOT

Business scope

Competitive advantageSet performance objectives

4Ps

Performance monitoringRefining strategies & program

The Role of Marketing Research


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The Role of Marketing Research

ControllableMarketing

Product

PricingPromotion

Distribution

Variables

MarketingResearch

MarketingDecision

Making

ProvidingInformation

AssessingInformation

Needs

Marketing Managers

Market Segmentation

Performance & Control

Target Market Selection

Marketing Programs

Uncontrollable

Environmental

Factors

Economy

Technology

Laws &Regulations

Social & CulturalFactors

Political Factors

Consumers Employees

Shareholders Suppliers

Customer Groups


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Product Research


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Definition

Component of market research

whereby the characteristic of a good or

service, that will satisfy a recognized

need or want, are identified.


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Qualitative Explorations

The target audience is identified (even if not totally precise),

and some notion of the product category (or human need) is

established, then qualitative research is the first step

The purpose is to develop in-depth understanding of the

target consumertheir motivations, perceptions, fears, and

preferences.

Perceptions of competitive products can be explored.

Unmet needs can be identified.

New product ideas can be sought.


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Qualitative Explorations contd

The qualitative exploration serves to identify new

product possibilities as well as refine the target-

market definition for those possibilities.

Qualitative research is also useful in determining

the starting points for ideation.


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Concept Testing

Concept testing identifies potentially successful

new products early on, so that you can focus limited

research and development resources (and limited

marketing resources) on the new product concepts

with the greatest probability of consumer

acceptance.

Decision Analyst provides a suite of concept testing

systems and services.


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Product Testing

New products must be optimal to have a reasonable

chance for success.

Product testing is an essential step (or series ofsteps) in the development of a new product.

Decision Analyst offers a range of product-testing

services to help ensure that the new product will be

successful.


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Steps involved in Product Research

Opportunity Identification

Concept Screening

Concept Testing

Marketing Strategy Development

Product Development

Market Testing

Product Introduction


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Advertising/Promotion

Research

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PPT 7-3

Advertising and Promotion

Research

Used to assist in determining market segments

Plays a key role in helping creatives understand

the audience

Used to make go/no go ad decisions and when to

pull ads

Used to evaluate agency performance


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Definition

Advertising research is a specialized form of

marketing research conducted to improve the

efficiency of advertising.

Advertising research is the systematic gathering and

analysis of information to help develop or evaluate

advertising strategies, ads and commercials, and

media campaigns.

A subset of marketing research.


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Types of Advertising Research

Customized

Customized research is conducted for a specific

client to address that clients needs. Only that

client has access to the results of the research.

Syndicated

Syndicated research is a single research studyconducted by a research company with its results

available, for sale, to multiple companies.


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Methods of Advertising Research

Pre-market research

can be conducted to optimize ads for any medium

optimize advertisement for any medium: radio,

television, print (magazine, newspaper or direct mail),

outdoor billboard (highway, bus, or train), or Internet.

Post-market research

conducted after the advertising, either a single ad or an

entire multimedia campaign has been run in-market. Thefocus is on what the advertising has done for the brand,

for example increasing brand awareness, trial, frequency

of purchasing.


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Pre-Market Research

Consumer Jury.

Rating Scales.

Portfolio Tests.Psychological Tests.

Physiological Tests.

Sales Tests.

Day-after recall Tests.


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Rating Scales:

Requires the establishment of standards for effectivecopy and numerical weights for each standard.

Ads are then rated in accordance with the scale

values and a numerical score is obtained.

Advantage:

Provides a list against which to check an ad &

helps to single out the elements that are good or bad.

Disadvantages:

Different judges will rate the ad differently.


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Portfolio Tests

Sometimes the ad is placed in dummy copies

of newspapers or magazines.

A group of ads, usually a mixture of test ads and

control ads, is placed in a portfolio.


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Physiological Tests Tests are obtained using special laboratory equipments

which record an individuals physiological responses toads.

A list of reactions like self pity, security, fear or

nostalgia is set up.

Alternative ads are then rated on how readers respond

w.r.t. those reactions.

A no. of techniques including word association,

sentence completion, depth interview & story tellingare adopted.

Difficult to implement, since skilled interviewers are

required

S l


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Sales tests

Sales tests are a useful measure of advertising effectiveness when advertising is the dominant

element, or the only variable, in the company's

marketing plan. Sales response may not be immediate and sales

tests, particularly field studies, are often costly

and time-consuming.


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Day-after recall Tests

Research method that tests

consumers memories the day after they

have seen an ad, to assess the ad's

effectiveness.


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Post-Market Research Provide either periodic or continuous in-market research

monitoring a brandsperformance.

Including brand awareness, brand preference, product

usage and attitudes. Some post-testing approaches

simply track changes over time, while others use various

methods to quantify the specific changes produced byadvertising - either the campaign as a whole or by the

different media utilized.

Overall, advertisers use post-testing to plan future

advertising campaigns, so the approaches that providethe most detailed information on the accomplishments of

the campaign are most valued.


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Problems in media selection

Itsnot sufficient to select the major media, you

also need to make specific selections within

these general types of media.

Character of media has to be considered before

selecting it as it has great influence on

effectiveness of the advertisement.


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Problem of audience measurement

Variation in composition and sizes of audience of

given media vehicle.

Variation due to geography.

Variation due to rate at which different vehicles

accumulate audiences.

Difficulty of estimating value of different sizes ofmessage units within and between media.

Estimating actual geographical area covered.

Key Issues in Advertising and


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PPT 7-4

Key Issues in Advertising and

Promotion Research

Reliability: The research method produces

consistent findings over time.

Validity: The information generated is relevant tothe research questions being investigated.

Trustworthiness: Usually applied to qualitative

data; does the data seem to make sense?

Meaningfulness: An assessment of limitations of

the data.


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Documents

MIS and Marketing Research