market information management (mim)
DESCRIPTION
4.06 Acquire foundational knowledge of marketing-information management to understand its nature and scope. Market information management (MIM). The process of gathering, sorting, analyzing and disseminating marketing information for businesses to make daily business decisions. - PowerPoint PPT PresentationTRANSCRIPT
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4.06 Acquire foundational knowledge of marketing-
information management tounderstand its nature and scope
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Market information management (MIM)•The process of gathering, sorting, analyzing and disseminating marketing information for businesses to make daily business decisions
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Describe the need of marketing information.•Marketing research is important to
businesses because it contributes to business success because the marketing environment is constantly changing. .
•By surveying customers, a business could determine the location of the company’s market.
•The benefits of using the information should be greater than the expense of gathering the data used to generate this information
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Classify types of marketing information as primary or secondary.
– Primary is information the company collects directly from its own surveys – first time collected; expensive
– Secondary is information the company collects from other sources. (libraries, online, Federal publications, etc.) – desk research – already exists. An advantage of secondary data is it is less expensive to collect than primary data.
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Primary Research
• First hand information
• Expensive to collect, analyse and evaluate
• Can be highly focussed and relevant
• Care needs to be taken with the approach and methodology to ensure accuracy
• Types of question – closed – limited information gained; open – useful information but difficult to analyse
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Sources of primary research:
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Internal Sources
• Internal Reports – sales reports– Inventory records
• Retail data– daily sales – loyalty cards
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External Sources
• Government Statistics– census data
• Trade publications• Commercial Data• Magazine surveys• Other firms’ research
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Who uses marketing research?
• Marketing research may be formal or informal
• Marketing research may be internal or external
• Depending on the size of the business it may be done in house (internal department) or outsourced (hire an expert)
• Government, opinion polls, associations and businesses use marketing research
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4.06 Acquire foundational knowledge of marketing-
information management tounderstand its nature and scope
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Technology
• Identify ways that the use of technology impacts the marketing-information management function.– Makes it easier to collect and store certain
information– Information can be analyzed using
specialized software– Many more details can be tracked
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MIMS and CRMS
•Marketing-information management system
•an organized way of continuously gathering, sorting, analyzing, evaluating, and distributing marketing information.
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MIMS and CRMS
•Customer Relationship Management (CRM)
•using computerized databases to sort and organize information about customers’ purchases & brand preferences.
•tracks the amount spent in order to determine the number of times the users buys a product.
• CRM also helps a business build strong, loyal customer relationships by rewarding repeat business.
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Database• Database: Different database softwares
are available so that businesses can retrieve current customer and internal mktg information from a central location.
• Data analysis software: Specialized software allows data to be analyzed properly– Can be set up to give the information in a
specified format– Software that decision makers can use
with minimum training
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Types of marketing research objectives.• Quantitative – based on numbers
(surveys – tracking, experiments)– 56% of 18 year olds drink alcohol at least
four times a week – doesn’t tell you why, when, how
• Qualitative – more detail. Is intended to obtain detailed data about customers’ opinions and experiences. (personal interviews, focus groups, observational research)– tells you why, when and how!
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Options for selecting sample groups to participate in a survey:
•Random Sampling: occurs when a random group of participants is selected. Ex: selecting a sample group of any high schooler to participate in the survey.
•Simple sampling: is used when you limit the sample to getting feedback from a select group of people only. Ex: Only senior business students may participate in the survey.
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▫Stratified Random Sampling - dividing the population into subgroups based on variables known about those subgroups, and then taking a simple random sample of each subgroup
▫Cluster Sampling -useful for those who know little about the population they’re studying. First, the researcher would divide the population into clusters (usually geographic boundaries). Then, the researcher randomly samples the clusters
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Sampling errors include:
▫Non-response: not enough surveys are returned
▫Interviewer bias: the interviewer interjects his/her opinions into the survey
▫Chance: when every result is the same
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4.12 & 4.13 - Understand data-collection methods to evaluate their appropriateness for the
research problem/issue.
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Types of surveys
•A balanced survey: survey in which respondents are provided the same number of favorable and unfavorable rating options.
•Survey with a semantic differential scale: When using a scale such as a seven-point rating system with opposite adjectives on each end of the scale.
EX: On the scale of 1-7 rate factor X, with 1 being poor and 7 being excellent.
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Types of surveys….continuedMail surveys : use questionnaires as a
common method of collecting research data. Potentially sensitive questions should be asked toward the end of an interview.Adv: Cheap, cover lots of customers, can be
thoroughDisadv:1. Poor return rate, customer can’t ask
for clarification2. Ill-designed questionnaires can decrease the response rate.
Point-of-purchase displays :The scanners used in the checkout of a store. When the bar code labels are scanned data is automatically collected. This method of data collection is volume-tracking scanner.
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Discussion groups
– Adv: Multiple opinions can be collected at once, simultaneously test individual thoughts and group opinions
– Disad: The group can influence the opinions and answers of individuals
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Personal interviews– Allow to get customer opinion with high
flexibility
– Can clarify questions, read body language
– Interviewers must be open, friendly, and non-judgmental.
– Interviews must ask sensitive questions towards the end of the interview
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•Observation is the most appropriate data-collection method to use when a business wants to record variety of behavior . Ex: to determine how its employees interact with customers. Advantages (A): Limits introduction of bias,
customer isn’t being interfered with by the observer, unstructured allows for recording of variety of behaviors.
Disadvantages (D): The observer doesn’t know why the customer has made the choice, no option for clarification.
Telephone data-collection surveys: Adv: Cheap, can ask for clarification to an
answerDisad: People often won’t participate, can’t read
body language
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• Distinguish between continuous and itemized rating scales.
– Continuous: Respondent makes a mark at the appropriate position on a line, no comparison standard it given
– Itemized: scale has a number or brief description associated with each category. Categories are ordered and respondent is required to select the category that best describes the object being ranked
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Discuss types of itemized rating scales
• Likert– A rating scale that allows marketing
researchers to determine respondent's feelings. numerical values associated with each possible answer
• Semantic Differential Scale – Uses a scale such as a seven-point rating
system with opposite adjectives on each end of the scale.
– The respondent marks a category along the rating continuum (usually 1 to 7)
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CONT.• Stapel Scale– differs from semantic by using just one
term and then sets a scale for rating the appropriateness of that term (usually -5 to +5 with no zero)
• Multi-Dimensional– used when difficult to measure attitude
based on only one attribute. Used when it is impossible to capture the complete picture with one overall question.