1 seminar 03 importance of marketing information
TRANSCRIPT
1
SEMINAR 03
Importance of Marketing Information
2
OBJECTIVES1. To know the concept of (MIS)2. To know the 4 components of MIS3. To know the definition of marketing research4. To know the 11 processes of marketing research5. To know the 2 types of research objectives6. To know the 3 types of research7. To know the importance of research plan8. To know the 3 approaches of research9. To know the 2 types of data to be collected10. To know the advantages and disadvantages of secondary data11. To discuss the 5 types of data collection methods12. To discuss the strengths and weaknesses of 5 data collection
methods13. To know the 5 types of sampling
3
INTRODUCTION If a company calls itself a marketing-oriented
company, it has to invest money, people, facilities and time in collecting information on its proposed target market.
Information on customers is not the only type of information a company needs.
A company also needs information on what is going on inside the company, suppliers, wholesalers, retailers, competitors and the PEST factors
4
MARKETING INFORMATION SYSTEM (MIS) It consist of people, equipment and
procedures to gather, sort, analyze, evaluate and distribute needed, timely and accurate information to marketing information decision makers.
This system of information gathering cannot be done on ad hoc basis. It has to be dome on an on-going basis
5
4 COMPONENTS OF MIS
1. Assessing marketing information needs
2. Gathering marketing information
3. Analyzing marketing information
4. Sharing marketing information
6
ASSESSING MARKETING INFORMATION NEEDS The MIS would want to know what exactly is the
type of information that the marketing manager and the marketing department looking for.
The marketing manager should identify the types of information available.
The information must be correct and important to have correct and quick decision simultaneously additional cost of finding new info.
7
GATHERING MARKETING INFORMATION
Data can be gathered through Internal data, marketing intelligence and marketing research.
Internal data is data that is available inside a company.
For example:1. The accounting department may have information
pertaining to sales, costs and cash flow2. The operations department may have information
pertaining to production schedules, shipments and inventories
8
GATHERING MARKETING INFORMATION
Marketing Intelligent is data that is not available inside a company but it is from other competitors and in the market.
Data could be gathered from suppliers, resellers, customers, competitors’ annual reports, business magazines, trade exhibitions, press conferences, advertisements and competitors’ websites.
9
GATHERING MARKETING INFORMATION
Data from Marketing Research is data that is not available inside a company and not available from the marketing intelligent.
Marketers need to conduct primary research (or appoint outsiders) to investigate the real cause of any specific scenarios in the market which is related to the products.
Data collected from the research can be useful for further marketing decision making and this ways is costly and may take longer time.
10
ANALYSING INFORMATION
This refers to the process of using, analyzing and interpreting the collected data into a very meaningful ways.
Data will be analyze using specific tools such as statistical analysis (SPSS, AMOS)
The outcome from the analysis will be presented in the form of reports, charts, diagrams and many other forms to assist the managers in making marketing decisions.
11
SHARING MARKETING INFORMATION
This is the final steps.
The analyzed data can be shared to other marketing practitioners for future decision making.
Most of the time, data will be published secretly in the company’s database and managers will be able to access these data when needed.
12
MARKETING RESEARCH It is the systemic design, collection , analysis and
reporting of data relevant to a specific marketing situation facing an organization.
Companies use marketing research in a wide variety of situations.
For example, marketing research can help a company assess the market potential of a market, understand customers’ needs and purchase behavior and measure the effectiveness of its 4P plans
13
THE 11 MARKETING RESEARCH PROCESS1. Defining the problem2. Developing Research Objectives 3. Choosing Research Types 4. Developing the Research Plan 5. Choosing Research Approaches6. Identifying Types of Data7. Identifying Data Collection Methods8. Identifying Types of Sampling9. Handling Research Instruments10. Implementing the research plan11. Interpreting and reporting the findings
14
DEFINING THE PROBLEM It is important for a company to know exactly what is the problem the
company is facing and its cause.
Sometimes a company may know may think it knows the cause of a problem and do research and find that the cause is something totally different.
For example, a company which sees falling sales may conclude right way that the cause is poor advertising.
It may then do research to assess the effectiveness of it advertising and then find out that the reason for the falling sales has nothing to do with poor advertising but instead to do with the poor quality of its product.
Valuable money and time has thus been wasted to do research on the wrong area.
This problem would not have arisen if the company had form the start made the right determination on the problem the company was facing
15
DEVELOPING RESEARCH OBJECTIVES
Research Objectives
Tell about the purpose of conducting the research It is also can be the justifications of carrying the
research
There are two types of objectives
1. General objectives2. Specific objectives
The research objectives must tally and based on the research problem
16
CHOOSING THE RESEARCH TYPE Based on the type of research objective a company, it will then be
able to decide the type of information it is looking for
There are three types of research plan a company can choose:
1. Exploratory research this calls for a researcher to gather preliminary information that will
help define the problem and suggest hypothesis
2. Descriptive research this calls for a researcher to describe things such as the market
potential for a new product or the demographics of consumers who buy the product
3. Causal research this type of research objective calls for a researcher to gather data to
test hypotheses about cause-and –effect relationships
17
DEVELOPING THE RESEARCH PLAN Once the research problems and objectives
have been defined, the researcher must determine the exact information needed, develop a plan for gathering it efficiently and present the plan to the management
The research plan outlines sources of existing data, spells out the specific research approaches, contact methods, sampling plans and any instruments that the researchers will use in gathering the data
18
CHOOSING RESEARCH APPROACHES Three research approaches are available to a researcher:
1. Observation research the researcher gathers data by watching people, actions or
situations
2. Survey research the researcher uses this approach to gather descriptive data. A
company for example would use this approach in order to gather data on peoples’ knowledge, attitudes, preferences or buying behavior
3. Experimental research it is best used when a researcher wants to gather data to prove a
relationship between two or more variables.
19
IDENTIFYING TYPES OF DATA
Primary Data
if the researcher has decided to carry out primary research, among the issues the researcher needs to address are the research approaches, contact methods, sampling plan and research instruments
20
IDENTIFYING TYPES OF DATA Secondary data
This is data that already exists. A researcher only needs to know where the data is kept and access it form there
Sources of secondary data are online database, government agencies, business publications and public libraries
Advantages of secondary data can be obtained quickly, it is relatively cheap to obtain and it is quite
convenient for the researcher to obtain it
Disadvantages the data may be outdated, the original researcher may have
collected the data in order to prove a certain point and the data may be kept in the wrong form and thus be of little use to a researcher
21
IDENTIFYING DATA COLLECTION METHODS
There are a wide variety of methods available to a researcher to reach the members of the population he is interested in studying. Following are some of them:
1. Personal or Face to face interview
2. Telephone interview
3. Personally administered questionnaire
4. Mail questionnaire
5. Electronic questionnaire
22
IDENTIFYING DATA COLLECTION METHODS
1. Personal or Face to face interview It is a technique of data collection in which the marketer
gathered the information about the issues studied by meeting and facing the respondents in person.
2. Telephone interview It is a technique of data collection in which the marketer
gathered the information about the issues studied by asking the respondents over the telephone.
3. Personally administered questionnaire It is a technique of data collection in which the marketer
gathered the information about the issues studied by distributing and handing the questionnaire direct to the identified respondents.
23
IDENTIFYING DATA COLLECTION METHODS Mail questionnaire
It is a technique of data collection in which the marketer gathered the information about the issues studied by distributing the questionnaire direct to the identified respondents through post and mail based on the respondents’ address and usually enclosed the postage paid envelope so that the respondents could return the completed questionnaire.
Electronic questionnaire It is a technique of data collection in which the marketer
gathered the information about the issues studied through the online questionnaire filled by respondents and it is administered when the microcomputer is hooked up to computer networks.
24
ADVANTAGES AND DISADVANTAGES OF EACH AND EVERY TYPES OF DATA COLLECTION
METHODS Personal/ face to face interview
Advantages Able to establish rapport and motivate respondents Able to clarify the questions, clear doubts, add new questions Able to read the non-verbal cues Rich data can be obtained
Disadvantages May take longer personal time Costly when a wide geographic region is covered Respondents may be concerned about confidentiality of information
given Interviewers need to be trained Interviewer biases
25
ADVANTAGES AND DISADVANTAGES OF EACH AND EVERY TYPES OF DATA COLLECTION
METHODS
Telephone interview
Advantages Less costly and speedier than personal interview Able to reach a wide geographic area Greater anonymity than personal interviews Greater flexibility Interviewer can explain difficult questions Must be correct at the first time
Disadvantages Respondents may terminate interview at anytime Non-verbal cues cannot be read Interviews have to be kept short Obsolete telephone numbers could not be contacted Costs per respondents can be higher People may not want to discuss personal questions Interviewer may introduce biasness Under time pressure, interviewer may record answers without actually interviewing
26
ADVANTAGES AND DISADVANTAGES OF EACH AND EVERY TYPES OF DATA COLLECTION
METHODS
Personally administered questionnaire
Advantages Able to establish rapport and motivate respondents Doubts can be clarified Less expensive when administered to groups of respondents Almost 100% response rate assures Anonymity of respondent is high Token gifts can be enclosed to seek compliance
Disadvantages Organization may be reluctant to give up the company time for survey with groups
of employees assembled for the purpose Need high psychological skills to attract and influence respondents to participate High cost if administered to individual respondents and need to prepare the token
of appreciation to attract them to participate.
27
ADVANTAGES AND DISADVANTAGES OF EACH AND EVERY TYPES OF DATA COLLECTION
METHODS
Mail questionnaire
Advantages Anonymity of respondent is high Wide geographic regions can be reached Token gifts can be enclosed to seek compliance Respondent can take more time to respond at convenience Can be administered electronically if desired
Disadvantages Response rate is always low Unable to clarify the ambiguous questions May be costly if respondents located far away from the researcher No guarantee of return of the questionnaire Useless if the address of respondents is invalid Need to do follow up
28
ADVANTAGES AND DISADVANTAGES OF EACH AND EVERY TYPES OF DATA COLLECTION
METHODS
Electronic questionnaire
Advantages Easy to administer Can reach out globally Very cheap Fast delivery Respondents can answer at their convenience
Disadvantages Computer literacy is essential Respondents must have access to the facility Respondents must be willing to complete the survey Problem if network down
29
SAMPLING It is a statistical method of obtaining representative data or
observations from a group (lot, batch, population, or universe).
Sampling involves the process of finding the subset of a population. Typically, the population is very large, making a census or a complete enumeration of all the values in the population impractical or impossible.
The sampling will help researchers in identifying the represents a subset of manageable size.
In sampling, sample is collected and statistics are calculated from the samples so that one can make inferences or extrapolations from the sample to the population.
This process of collecting information from a sample is referred to as sampling
30
IDENTIFYING TYPES OF SAMPLING
Probability sampling:
Simple random sampling Stratified random sample Cluster sample
Non-probability sampling: Convenience sampling Judgment sample
31
Probability Sampling
32
Probability Sampling
Simple random sampleStratified random sampleCluster sample
33
Simple Random Sample In this technique, every member of the population
has a known and equal chance of being selected to be a part of the sample.
In this technique also, each individual is chosen randomly and entirely by chance, such that each individual has the same probability of being chosen at any stage during the sampling process.
Each subset of k individuals has the same probability of being chosen for the sample as any other subset of k individuals
34
Stratified Random Sample
It is also sometimes called proportional or quota random sampling.
It involves dividing your population into homogeneous subgroups and then taking a simple random sample in each subgroup.
The population is divided into mutually exclusive groups e.g. age and random samples are drawn form each group.
35
Cluster Sample It is a sampling technique used when "natural" groupings are evident in
a statistical population.
In this technique, the total population is divided into these groups (or clusters) and a sample of the groups is selected.
Then the required information is collected from the elements within each selected group.
This may be done for every element in these groups or a sub-sample of elements may be selected within each of these groups.
The population is divided into mutually exclusive groups e.g. blocks and the researcher draws a sample of the groups to interview
36
Probability Sampling
37
Non-probability sampling
Convenience sample
Judgment sample
38
Convenience Sampling
It is a sampling technique where the sample is selected, in part or in whole, at the convenience of the researcher.
The researcher makes no attempt, or only a limited attempt, to insure that this sample is an accurate representation of some larger group or population.
The researcher selects the easiest population members from which to obtain information
39
Judgmental Sample In this technique, the researcher or some other "expert" uses
his/her judgment in selecting the units from the population for study based on the population’s parameters.
This type of sampling technique might be the most appropriate if the population to be studied is difficult to locate or if some members are thought to be better (more knowledgeable, more willing, etc.) than others to interview.
This determination is often made on the advice and with the assistance of the client.
The researcher uses his own judgment to select the sample of the population from whom he will obtain information.
40
HANDLING RESEARCH INSTRUMENTS The questionnaire
it can be administered in person, by phone or through the mail
Galvanometer it can detect the degree of sweating of a subject when he or she is
exposed to an advertisement or a picture. It can also measure a person’s strength of interest or emotions when
a subject is exposed to an advertisement or a picture
Eye camera they study a subject’s eye movement when he or she is exposed to
an advertisement or a picture
Tachistoscope it flashes an advertisement or picture on to a screen in front of a
subject and then the subject is queried by the researcher as to what he or she saw
41
IMPLEMENTING THE RESEARCH PLAN
The researcher puts the research plan into action. This involves collecting, processing and analyzing
the information. Data collection can be carried out by the company’s
marketing research staff or by an outside research agency.
This is possibly the most expensive stage in the marketing research process.
It is important for the researcher to ensure that the research plan is implemented properly
42
INTERPRETING AND REPORTING THE FINDINGS The researcher has to interpret the findings, draw
conclusions and report them to the management. The researcher should not try to overwhelm the
managers with too many numbers and fancy statistical tools.
It is far more important for the researcher to present findings which a manager can use in making the major marketing decisions.
It would be ideal if the researcher and the marketing manager could work together to interpret the findings of the research
43
CONCLUSIONS1. There a there 4 components of MIS
2. There are 11 processes of marketing research
3. There are 2 types of research objectives
4. There are 3 types of research
5. There are 3 approaches of research
6. There are 2 types of data to be collected
7. There are 5 types of data collection methods
8. There are 5 types of sampling
44
THANK YOUPlease do the tutorial questions as
they are very important to you. Best wishes and happy weekend.
45
TUTORIAL1. Define the MIS.
2. List the FOUR (4) components of MIS.
3. Outline and arrange the ELEVEN (11) processes of marketing research.
4. identify the TWO (2) types of research objectives.
46
TUTORIAL6. List the THREE (3) types of research.
7. Suggest the THREE (3) approaches of research.
8. Provide the TWO (2) types of data to be collected.
9. List and explain the FIVE (5) types of data collection methods.
10. Discuss the advantages and disadvantage of each types of data collection methods.
11. Provide the FIVE (5) types of sampling.