marketing information and research. importance of effective marketing information and research...

Marketing information and research

Importance of effective marketing information and research

Effective penetration of markets requires specialised and sophisticated approaches to identify, assess and satisfy market demands.

Effective marketing information and research enables an organisation to make better decisions on the most appropriate market entry and competitive strategies.

Defining market research

Marketing research is the function which links the consumer, customer, and public to the marketer through information - information used to identify and define marketing opportunities and problems; generate, refine and evaluate marketing actions, monitor marketing performances, and improve understanding of marketing as a process.

Marketing research specifies the information required to address those issues; designs the method of collecting information; manages and implements the data collection process; analyses the results; and communicates the findings and their implications.

McDonald and Gates, 1990

The role of marketing research

• Consumer markets - In EU important to manufacturers as retailers act as buffer between manufacturers and end consumer. Provides accurate and reliable flow of information to the marketing decision makers.

• B2B markets - Helps organisations understand the marketing environment and make better informed decisions about marketing strategies.

Types of marketing research

• Exploratory.

• Descriptive.

• Causal or predictive.

Origins of research data

• Qualitative research - the collection of data that are open to interpretation, e.g. peoples’ opinions.

• Quantitative research - the collection of data that is quantifiable and is not open to the same level of interpretation as qualitative research, e.g. sales figures, market share data, etc.

Continuous research

On going research usually undertaken by market research agencies and offered to organisations for a subscription or agreement to purchase the updated findings.

Approaches include:

• Consumer panels.

• Home audits.

• Omnibus surveys.

• Retail audits.

Marketing information systems

(MIS)

Effective systems of organising, structuring and managing the storage, access and dissemination of market research data.

The marketing information system

Figure 6.1

Defining information requirements

Table 6.1

Sources of marketing information

• External sources - ad hoc studies using secondary or primary research or continuous data which contains views from customers, suppliers, channels of distribution, strategic alliance partners, independent third parties, etc.

• Internal sources - information obtained from internal record keeping systems, sales reps, call details, customer enquiries, etc.

The marketing research process

Figure 6.2

Secondary research (1 of 2)

• Sometimes referred to as desk research.

• Consists of data and information that is already in existence and which can be accessed by the organisation.

• Can be cheaper and quicker to access than primary research.

• May provide an organisation with information that it would not otherwise have time to gather.

• Secondary data may not always be up to date, be applicable to an organisation, or give the full picture.

Secondary research (2 of 2)

Secondary data sources include:

• Government - e.g. Central Statistical Office.

• Chambers of commerce.

• Trade associations.

• Commercial publications - e.g. Dun & Bradstreet, Mintel, etc.

• Internet - e.g. country reports and news, etc.

Primary research

• Sometimes called field research.

• Is undertaken or commissioned by an organisation for a specific purpose.

• The required information does not already exist.

• It is exactly tailored to a problem.

• Can be expensive and time consuming.

Online market research

The website provides several novel methods for the collection of primary data for example:

• Server based log file analysis of site activity.

• Browser based site activity data.

• Panel activity.

• Online focus groups.

• Online questionnaires.

• Mystery shoppers.

Advantages and disadvantagesof internet research

Table 6.5(a)Source: Alex Johnston, Technology and Communications Director for New Media Research International, as reported by Gray (2000b).

Advantages and disadvantagesof internet research

Table 6.5(b)Source: Alex Johnston, Technology and Communications Director for New Media Research International, as reported by Gray (2000b).

Sampling

Figure 6.3Source: Adapted from Tull and Hawkins (1990).