Pom Chapter 4

Chapter 4: Managing Marketing Information to Gain Customer Insights

PRESENTED BY:-1. MAS RAIHANA AHMAD NASSIR2. FILZAH HUSNA BINTI RIZAL

Marketing Infromation and Customer Insights

Customer Insights

its to understand customers to the core and give them what they need.

Marketing Infromation System(MIS)

consists of people and procedures for assessing

informational needs, developing the needed

information and helping decision makers to use the

information to generate and validate actionable customer and market

insights.

The Marketing Information System

Assessing Marketing Information Needs

• MIS primarily serves the company's marketing and other managers but it may also provide information to external partners (Suppliers, reseller or marketing service agencies)

• Good MIS balances the information users would like to have againts what they really need and what is feasible to offer

Developing Marketing Infromation

Marketers can obtain

information from:

Internal data

Marketing Intelligence

Marketing research


1) Internal Data

Internal databases - electronic collections of consumer and market information obtained from data sources within the company network.

Advantages Disadvantages

• can be accessed more quickly.• Low cost

• Incomplete or in wrong form• Data aged quickly• require highly sophisticated equipment and techniques.


• 2) Marketing Intelligence

• Marketing Intelligence is the systrmatic collection and analysis of publicly available information about consumers, competitiors and developments in the marketplace.

• Goal : to improve strategic decison making by understanding the consumer environment, assessing and tracking competitor's actions and providing early warnings of opportunities and threats.

• 2) Marketing Intelligence

• Techniques :- Sent out teams of trained observers to mix and mingle

with customers. Routinely monitor consumers' online chatter Actively monitor competitors' activities- early warning

i. collect it from people inside, suppliers, resellers and key customers

ii.through intelligence information (annual report, web pages, show exhibit)

iii.Online database (European Patent Office)


3. Marketing Research

Marketing research is a systematic design, collection, analysis and reporting of data relevant to a spesific market situationfacing an organization.

*give marketers insights into customer motivations, purchase behavior and satisfaction.

Marketing Research

Steps in Marketing Research

Marketing Research

Defining the

problem and

reseach objectives

Developing the

research plan for

collecting informatio

n

Implementing the

research plan-

collecting and

analyzing data

Interpreting and

reporting the

findings

1) Defining the problem and research abjectives

Types of Objectives:-•exploratory research•descriptive research•causal research

Marketing Research

2) Developing the research plan for collecting information

Research plan outlines sources of existing data and spells out the specific research approaches, contact methods, sampling plans and instruments that researchers will use to gather new data.

*to meet the manager's information needs, the research plan can call for gathering secondary data, primary data or both.

Marketing Research

Marketing Research

Secondary Data consist of

information that already exists

somewhere, having been collected for another purposes.

Primary Data consists of information

collected for the spesific purpose at

hand.

Gathering Secondary Data• Usually start with company's internal database• companies can buy secondary data reports from

outside suppliers• use commercial online databases• web search engines

Advantages Disadvantages

•can be obtained more quickly•lower cost•Provide data that an individual company cannot collect on its own- too expensive

•the needed information may not exist•it must be relevant, accurate, current and impartial

Marketing Research

Primary Data

Collection

Research approache

s

Contact methods

Sampling plan

Research instrument

s

Marketing Research

Marketing Research ;Research Approaches

Observational research

• Involves 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 habitat.

Survey research

• The most widely used method for primary data collection, is the approach best suited for gathering descriptive information – for recognizing people’s knowledge, attitudes, preferences or buying behaviour.

• Flexible – many different kinds of information in many different situations

• People can be unable to answer or unwilling to respond• Gives misleading or pleasing answers

• Privacy concerns Experimental research

• Best suited for gathering causal information.• Involves selecting matched groups of subjects, giving them different

treatments, controlling related factors and checking for differences in group responses [cause-and-effect relationships]

Marketing Research ;Contact Methods

• Mail questionnaires

• Telephone interviewing

• Personal interviewing

• Group interviewing

Mail, telephone

and personal

interviewing

Focus group

interviewing

Online marketing research

Online focus

groups


• Personal interviewing that involves inviting 6 to 10 people to gather for a few hours with a trained interviewer to talk about a product, service or organization.

• The interviewer focuses the discussion

Mail, telephone

and personal

interviewing

Focus group

interviewing


Online focus

groups


• Collecting primary data online through internet surveys, online focus groups, web-based experiments, or tracking consumers’ online behaviour.

Mail, telephone

and personal

interviewing

Focus group

interviewing


Online focus

groups


Mail, telephone

and personal

interviewing

Focus group

interviewing


Online focus

groups

Marketing Research ;Sampling Plan

Sample is a segment of the population selected for marketing

research to represent the population as a whole

How should the people be chosen?

(what sampling

procedure)

Who is to be

surveyed? (what

sampling unit)

How many people

should be surveyed?

(what sample size)

Marketing Research ;Sampling Plan

Each population member has a known chance of being included in the sample

1) Simple random sample2) Stratified random sample3) Cluster (area) sample

Probability

sample

Used when probability sampling costs too much or takes too much time

1) Convenience sample2) Judgement sample3) Quota sample Non-

probability

sample

Marketing Research ;Research Instruments

Questionnaires – * The most common instrument, whether

administered in person, by phone, or online

* Flexible - many ways to ask questions

• Close-end questions : include all the possible answers and subjects make choices among them [eg: MCQs and scale questions], easier to interpret & tabulate.

• Open-end questions : allow respondents to answer in their own words. Useful in exploratory research.

Mechanical

instruments

• To monitor consumer behaviour• Eg :

• Nielsen Media Research attaches people meters to TV sets – to record who watch which programs

• Retailers use checkout scanners – to record shoppers’ purchases

Marketing Research ;Implementing the Research Plan

Collecting the information

Processing the information

Analyzing the information

Marketing Research ;Interpreting and Reporting the Findings

Interpret the findings, draw conclusions and report them to management.

Present important findings and insights for decision making.

Researchers need to work closely with marketers in interpreting the findings.

Analyzing Marketing Information;Customer Relationship Management

(CRM)

•CRM consists of sophisticated software and analytical tools that integrate customer information from all sources, analyze it in depth, and apply the results to build stronger customer relationships

•To manage detailed information about individual customers and carefully manage customer touch points in order to maximize customer loyalty.

Analyzing Marketing Information;Customer Relationship Management

(CRM)Data warehouses

– comprehensi

ve companywide

electronic databases of finely turned

detailed customer

information

Uses :1) To understand customers better

2) To provide higher levels of

customer service3) To develop

deeper customer relationships4) To identify

high-value customers

Touch points : every

contact between the

customer and company

1) Customer purchases

2) Sales force contacts

3) Service and support calls4) Web site

visits5) Satisfaction

surveys6) Credit and

payment interactions7) Research

studies

Distributing and Using Marketing Information

•Information distribution involves entering information into databases and making it available in a time – useable manner

•Intranet provides information to employees and other stakeholders

•Extranet provides information to key customers and suppliers

Other Marketing Information Considerations

•Marketing Research in Small Business and Nonprofit Organizations

Need information about their industry, competitors, potential customers and

reactions to new offersMust track changes in customer needs and wants, reactions to new products and changes in the competitive environment


• Marketing Research in Small Business and Nonprofit Organizations

Sources of marketing information:

Observing their environment Monitoring competitor advertising

Evaluating customer mix Visiting competitors

Conducting informal surveys Conducting simple experiments


• Marketing Research in Small Business and Nonprofit Organizations

Sources of marketing information:

Secondary data Trade associations

Chambers of Commerce Government agencies

Media


• International marketing research

• Additional and different challenges:

o Level of economic developmento Cultureo Customs

o Buying patternso Difficulty in collecting secondary data

o Hard-to-reach respondents


Public policy and ethics in marketing research

Intrusions on consumer privacyConsumer resentment

Misuse of research findings

Documents

Pom Chapter 4