8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
1/42
Marketing ManagementBBUS 320
Spring, 2014Ceri M. Nishihara
HH 1312
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
2/42
Managing MarketingInformation To Gain
Customer Insights
Chapter 4
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
3/42
Rest Stop: Previewing the Concepts
Explain the importance of information in
gaining insights about the marketplace and
customers
Define the marketing information system and
discuss its parts
Outline the steps in the marketing research
process
4 - 3
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
4/42
Rest Stop: Previewing the Concepts
Explain how companies analyze and use
marketing information
Discuss the special issues some marketing
researchers face, including public policy and
ethics issues
4 - 4
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
5/42
First Stop: DominosPizza
Declining revenues prompt Dominos to ask
customers for honest feedback
Gains insights from social media and focus
groups
Discovers that main problem is taste
Reinvents its product, launches PizzaTurnaround campaign
ResultIncreased sales and profits
4 - 5
http://www.youtube.com/watch?v=AH5R56jILaghttp://www.youtube.com/watch?v=AH5R56jILag8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
6/42
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
7/42
Marketing Information and CustomerInsights
Consumer needs and motives for buying are
difficult to determine
Online sources give marketers abundant data
about consumer behavior
Challenge for companies is to make better use
of information to gain customer insights
Firms use customer insights to develop a
competitive advantage
4 - 7
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
8/42
4 - 8
Fresh understandings of
customers and the marketplace
derived from marketing
information that becomes the
basis for creating customer value
and relationships
Customer insights
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
9/42
4 - 9
People and procedures dedicated
to assessing information needs,
developing the needed
information, and helping decision
makers to use the information to
generate and validate actionable
customer and market insights
Marketing informationsystem
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
10/42
Assessing Information Needs
A good MIS balances the information users
would like against what they really need
Collecting and storing information using a MIS
is expensive
Firms must decide whether the value of the
insights gained from more information is
worth the cost
4 - 10
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
11/42
Electronic collections of consumer and market
information obtained from data sources
within the company network
Internal databases
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
12/42
Internal Data
Can be accessedmore quickly andcheaply than other
information sources Ages rapidly and may
be incomplete
Maintenance andstorage of data isexpensive
, 4 - 12
Financial services provider USAA uses its
extensive database to tailor its services
to the specific needs of individual
customers, creating incredible loyalty
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
13/42
The systematic collection and analysis of
publicly available information about
consumers, competitors, and developments
in the marketing environment
Competitive marketing
intelligence
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
14/42
Competitive Marketing Intelligence
Techniques include:
Observing consumers
Quizzing the companys own employees
Benchmarking competitors products
Monitoring Internet buzz
Actively monitoring competitors activities
Companies also take steps to protect their
own information
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
15/42
4 - 15
The systematic design, collection,analysis, and reporting of data
relevant to a specific marketing
situation facing an organization
Marketing research
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
16/42
Figure 4.2 - The Marketing ResearchProcess
4 - 16
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
17/42
Defining the Problem and Research
Objectives
Exploratoryresearch
Gatheringpreliminary
informationthat will help
define the
problem andsuggest
hypotheses
Descriptiveresearch
Generatinginformation to
betterdescribe
marketing
problems,situations, or
markets
Causal research
Testinghypotheses
about cause-and-effect
relationships
4 - 17
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
18/42
The Research Plan
Should be presented as a written proposal
Should cover:
The management problems addressed
Research objectives
Information to be obtained
How results will help decision-making
Estimated research costs
Type of data required (Primary or secondary)
4 - 18
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
19/42
, 4 - 19
Information that already exists
somewhere, having been collected for
another purpose
Secondary data
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
20/42
Secondary Data
Common sources of secondary data:
Internal company databases
Commercial online databases
Internet search engines
Cheaper to obtain than primary data
Can be collected faster than primary data
, 4 - 20
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
21/42
Information collected for the
specific purpose at hand
Primary data
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
22/42
Primary Data
Designing a primary data collection plan
involves making decisions about:
The research approach
Observation, survey, or experiment
Contact methods
Mail, telephone, personal, or online
The sampling plan Sampling unit, sample size, and sampling procedure
Research instruments
, 4 - 22
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
23/42
Gathering primary data by observing relevant
people, actions, and situations
Observational research
A form of observational research that involvessending trained observers to watch and interact
with consumers in their natural environments
Ethnographic research
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
24/42
Observational Research
Can obtain information that people are
unwilling or unable to provide
Cannot be used to observe feelings, attitudes,
and motives, and long-term or infrequent
behaviors
, 4 - 24
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
25/42
Marketing at Work
By entering the
customers world,
ethnographers can
scrutinize howcustomers think and
feel as it relates to
their products
To better understand the challenges
faced by elderly shoppers, thisKimberly-Clark executive tries to
shop while wearing vision-
impairment glasses and bulky gloves
that simulate arthritis
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
26/42
Gathering primary data by askingpeople questions about their
knowledge, attitudes, preferences,
and buying behavior
Survey research
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
27/42
, 4 - 27
Gathering primary data by
selecting matched groups ofsubjects, giving them different
treatments, controlling related
factors, and checking for
differences in group responses
Experimental research
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
28/42
Contact MethodsMail Questionnaires
Pros
Large amounts of information at a relatively low
cost per respondent
Enables more honest responses than interviews
Absence of interviewer bias
Cons
Inflexible, low response rate
Researcher has little control over sample
, 4 - 28
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
29/42
Contact Methods - Telephone Interviewing
Pros
Gathers information fast, high response rate
Allows greater flexibility than mail surveys
Strong sample control
Cons
Higher costs than mail questionnaires
Interviewer may bias results
Limited quantity of data can be collected
, 4 - 29
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
30/42
Contact MethodsPersonal Interviewing
Pros
Highly flexible method that can gather a great deal
of data from a respondent
Good control of sample, speed of data collection,
and response rate
Cons
High cost per respondent
Subject to interviewer bias
, 4 - 30
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
31/42
Focus Groups
Involve inviting six to
ten people to gather
for a few hours with
a trained interviewerto talk about a
product, service, or
organizationLexus general manager Mark
Templin hosts An Evening with
Lexus dinners with luxury car
buyers to figure out why they did
or didnt become Lexus owners
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
32/42
Collecting primary data online through
Internet surveys, online focus groups,
Web-based experiments, or tracking
consumers online behavior
Online marketing research
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
33/42
Contact MethodsOnline Marketing
Research
Pros
Speed and low costs
Lowest cost per respondent of all contact
methods; offers excellent sample control
Good flexibility and response rate due to
interactivity
Cons Difficulty in controlling sample
, 4 - 33
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
34/42
A segment of the population selected
for marketing research to represent the
population as a whole
Sample
, 4 - 34
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
35/42
Sampling Plan
Sampling requires three decisions:
Who is to be studied (sampling unit)
How many people should be included (sample
size)
How should the people in the sample be chosen
(sampling procedure)
, 4 - 35
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
36/42
Each population member has a known chanceof being included in the sampleProbabilitysample
Simple random sample
Stratified random sample
Cluster (area) sample
Sampling error cannot be measured
Nonprobability
sample
Convenience sample Judgment sample
Quota sample
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
37/42
Research Instruments
Questionnaires
Closed-end questions include all the possible
answers, and subjects make choices among them
Open-end questions allow respondents to answerin their own words
Mechanical devices
People meters, checkout scanners,neuromarketing
, 4 - 37
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
38/42
Implementing the Research Plan
Collecting the data Most expensive phase
Subject to error
Processing the data Check for accuracy
Code for analysis
Analyzing the data Tabulate results Compute statistical
measures
, 4 - 38
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
39/42
Interpreting and Reporting Findings
Interpret the findings
Draw conclusions
Report to management
Present findings and conclusions that will be most
helpful to decision making
, 4 - 39
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
40/42
Customer Relationship Management(CRM)
Managing detailed information about
individual customers and carefully managing
customer touch points to maximize customer
loyalty
Helps firms offer better customer service
Helps identify high-value customers
Enhances the firms ability to cross-sell productsand develop offers tailored to customers
, 4 - 40
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
41/42
Public Policy and Ethics in MarketingResearch
Intrusions on consumer privacy The Marketing Research Associations Your
Opinion Counts and Respondent Bill of Rights
initiatives Adopting standards that outline researchers
responsibilities to respondents
Misuse of research findings
Development of codes of research ethics and
standards of conduct
4 - 41
8/12/2019 BBUS 320 - Chapter 4 - Managing Marketing Information
42/42