principles of marketing ch 4

7/17/2019 Principles of Marketing Ch 4

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Chapter 4: Managing Marketing Information toGain Customer Insights


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Keywords: Data & InformationData consists of RAW FACTS and FIGURES. Data is a

building block. When that data is organied or

inter!reted into sets according to conte"t# it

!ro$ides infor%ation. For e"a%!le# recording the

te%!erature of 'our classroo% continuousl' o$er a

set !eriod is data collection. Fro% that data

infor%ation %a' be deri$ed# such as the highest#lo(est# and a$erage te%!eratures o$er that !eriod.

Both data and information are used to attain

knowledge and then take deisions!


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Keywords: Customer Insights

Fresh understandings of custo%ers and the

%arket!lace deri$ed fro% %arketing

infor%ation that beco%e the basis for

creating custo%er $alue and

relationshi!s.


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I n t r o d u c t i o n

To create $alue for custo%ers and build %eaningful

relationshi!s (ith the%# marketers must %rst gainfresh deep insights into what ustomers need

and want! Co%!anies use such custo%er insights to

de$elo! co%!etiti$e ad$antage.

In this hapter we e'plore how marketers gain

insights into onsumers and the marketplae.

We look at ho( co%!anies de$elo! and %anage

infor%ation about i%!ortant %arket!lace ele%ents,

custo%ers# co%!etitors# !roducts# and %arketing

!rogra%s.


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I n t ro d u c t i o n - c o n

Custo%er insights grou!s collect custo%er and%arket infor%ation fro% a (ide $ariet' of sources#

ranging fro% traditional %arketing research studiesto socialiing (ith and obser$ing consu%ers to%onitoring consu%er online con$ersations aboutthe co%!an' and its !roducts. (hen they use

this information to develop importantcustomer insights from whih the ompanyan reate more )alue for its ustomers!

Thus# co%!anies %ust design e/ecti$e MarketingInformation Systems (MIS) that gi$e %anagersthe right infor%ation# in the right for%# at the rightti%e and hel! the% to use this infor%ation tocreate custo%er $alue and stronger custo%errelationshi!s.


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(he Marketing Information "ystem #MkI"$

0arketers usuall' use a Marketing

Information "ystem#MkI"$ (hich is a

0anage%ent Infor%ation S'ste% -0IS

designed to su!!ort %arketing decision

%aking.


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*ssessing Marketing Information +eeds

MkI" !ro$ides infor%ation to the co%!an'1s %arketing

and other %anagers and e"ternal !artners such as

su!!liers# resellers# and %arketing ser$ice agencies. For

e"a%!le# Wal%art1s Retail2ink S'ste% gi$es ke'

su!!liers access to infor%ation on e$er'thing fro%

custo%ers1 bu'ing !atterns and store in$entor' le$els

to ho( %an' ite%s the'1$e sold in (hich stores in the

!ast 34 hours


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*ssessing Marketing Information +eeds

Characteristics of a good 0IS balances the infor%ation users

(ould like to ha$e against (hat the' need and (hat is

feasible to o/er. The co%!an' begins b'

inter$ie(ing %anagers to 5nd out (hat infor%ation

the' (ould like. So%e %anagers (ill ask for

(hate$er infor%ation the' can get (ithout thinking

carefull' about (hat the' reall' need. Too %uch

infor%ation can be as har%ful as too little.


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T66 0UC7 I8F6R0ATI68 99


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Information

Marketers an o,tain information from:

I. Internal Data

II. 0arketing Intelligence

III. 0arketing research


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REA2)S:ACE DATA C622ECTI68 ; ST6RAGEE


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De)eloping Marketing InformationII. Marketing Intelligence

Marketing intelligene is the s'ste%atic collection andanal'sis of !ublicl' a$ailable infor%ation about

co%!etitors and de$elo!%ents in the %arket!lace.

The goal of %arketing intelligence is to i%!ro$e strategicdecision %aking# assess and track co%!etitors1 actions#

and !ro$ide earl' (arning of o!!ortunities and threats.

0an' co%!anies send out tea%s of trained obser$ers to %i"

and %ingle (ith custo%ers as the' use and talk about theco%!an'1s !roducts. 6ther co%!anies routinel' %onitorconsu%ers1 online chatter (ith the hel! of %onitoringser$ices such as 8ielsen 6nline or Radian=. For e"a%!le#Radian= hel!s co%!anies to kee! track of al%ost an'rele$ant online con$ersation.


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III. Marketing Research

Marketing researh is the s'ste%aticdesign# collection# anal'sis# and re!orting

of data rele$ant to a s!eci5c %arketing

situation facing an organiation.

De)eloping Marketing Information


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Marketing -esearh

"teps in the marketing researhproess:

> De5ning the !roble% and research ob+ecti$es

3 De$elo!ing the Research :lan

? I%!le%enting the Research :lan

4 Inter!reting and re!orting the 5ndings


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M k i - h .


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Marketing -esearh .roess

Step 1- Defining the Problem and Research Objectives

0arketing %anagers and researchers %ust (ork

closel' together to de5ne the !roble% and agree onresearch ob+ecti$es. The %anager best understandsthe decision for (hich infor%ation is needed@ theresearcher best understands %arketing research

and ho( to obtain the infor%ation.After the !roble% has been de5ned carefull'# the

%anager and the researcher %ust set the researchob+ecti$es. A %arketing research !ro+ect %ight ha$e

one of three t'!es of ob+ecti$es -!ur!oses,a E"!lorator' research

b Descri!ti$e research

c Causal research

( f - h /,0 ti


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(ypes of -esearh /,0eti)esa$ 1'ploratory researh is the gathering of !reli%inar'

infor%ation that (ill hel! to de5ne the !roble% and

suggest h'!otheses. For e"a%!le, the o!en ended

uestion ) BWhat (ould 'ou like to see i%!ro$ed %ost on

our (ebsite1

,$ Desripti)e researhis to describe things such as %arket

!otential for a !roduct or the de%ogra!hics and attitudes

of consu%ers (ho bu' the !roduct. For e"a%!le, What are

the de%ogra!hics of custo%ers (ho bu' :la'station.

$ Causal researh is to test h'!otheses about cause)and)

e/ect relationshi!s. For e"a%!le, Cri%e causes :o$ert'

-causal order is rime 223 po)erty.


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Marketing -esearh .roessStep - Developing the Research Plan

6nce the research !roble% and ob+ecti$es ha$e been

de5ned# researchers %ust deter%ine the e"act

infor%ation needed# de$elo! a !lan for gathering it

e*cientl'# and !resent the !lan to %anage%ent.

The research !lan outlines sources of e"isting data

and s!ells out the s!eci5c research a!!roaches#

contact %ethods# sa%!ling !lans# and instru%ents

that researchers (ill use to gather ne( data.


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e e u ro!ose ar e ng esearc


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e e u ro!ose ar e ng esearc0ight

Call For The Follo(ing S!eci5c Infor%ation, (he demographi eonomi and lifestyle

harateristis of urrent -ed Bull ustomers: -Docurrent custo%ers also consu%e enhanced)(ater !roductsAre such !roducts consistent (ith their lifest'les 6r (ouldRed ull need to target a ne( seg%ent of consu%ers.

(he harateristis and usage patterns of the ,roaderpopulation of enhanedwater users: What do the' needand e"!ect fro% such !roducts# (here do the' bu' the%#(hen and ho( do the' use the%# and (hat e"isting brandsand !rice !oints are %ost !o!ular -The ne( Red ull

!roduct (ould need strong# rele$ant !ositioning in thecro(ded enhanced)(ater %arket.

-etailer reations to the proposed new produt line,Would the' stock and su!!ort it Where (ould the' dis!la'it -Failure to get retailer su!!ort (ould hurt sales of the ne(

drink.

M k ti - h .


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Developing the Research Plan

The research !lan should be !resented in a writtenproposal. A written proposal is especially i%!ortant (hen

the research !ro+ect is large and co%!le" or (hen an

outside 5r% carries it out. The !ro!osal should include,

The %anage%ent !roble%s addressed

The research ob+ecti$es

The infor%ation to be obtained

7o( the results (ill hel! %anage%ent decision %aking

The esti%ated research costs



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Developing the Research Plan

To %eet the %anager1s infor%ation needs# theresearch !lan can call for gathering secondar'data# !ri%ar' data# or both.

"eondary data consists of infor%ation thatalread' e"ists so%e(here# ha$ing been

collected for another !ur!ose.

.rimary data consists of infor%ation gatheredfor the s!ecial research !lan.


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Primar! Data "ollection

Secondar' data !ro$ide a good starting !oint for

research and often hel! to de5ne research !roble%s

and ob+ecti$es. In %ost cases# ho(e$er# the co%!an'%ust also collect !ri%ar' data. ust as researchers

%ust carefull' e$aluate the ualit' of secondar'

infor%ation# the' also %ust take great care (hen

collecting !ri%ar' data.The' need to %ake sure that

it (ill be rele$ant# accurate# current# and unbiased.

M k i - h .


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Designing a plan for primary data

olletion alls for a num,er of

deisions on:

Research A!!roaches

Contact 0ethods

Sa%!ling :lan

Research Instru%ents


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M k t i - h .


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M a r k e t i n g - e s e a r h . r o e s s

Pr imar! Data "ol lec t ion

Research #pproaches

/,ser)ational researh in$ol$es gathering

!ri%ar' data b' obser$ing rele$ant !eo!le#

actions# and situations.

1thnographi researhin$ol$es sending trainedobser$ers -!s'chologists or co%!an' researchers

and %anagers to (atch and interact (ith

consu%ers in their Bnatural en$iron%ent1.


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Research #pproaches

"ur)ey researh is the %ost (idel' used %ethod

and is best for descri!ti$e infor%ationkno(ledge#

attitudes# !references# and bu'ing beha$ior

Fle"ible

:eo!le can be unable or un(illing to ans(er

Gi$es %isleading or !leasing ans(ers

:ri$ac' concerns


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Research #pproaches

1'perimental researhis best for gathering

causal infor%ationcause)and)e/ect

relationshi!s


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Sampling Plan

"ample is a seg%ent of the !o!ulation selected

for %arketing research to re!resent the

!o!ulation as a (hole

Who is to be sur$e'ed

7o( %an' !eo!le should be sur$e'ed

7o( should the !eo!le be chosen


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Sampling Plan

.ro,a,ility samples, Each !o!ulation

%e%ber has a kno(n chance of being

included in the sa%!le.

+onpro,a,ility samples, Used (hen

!robabilit' sa%!ling costs too %uch or


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Research Instr$ments

Huestionnaires

0echanical de$ices


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Research Instr$ments - %$estionnaires

Closedend 6uestions include all !ossible ans(ers# and

sub+ects %ake choices a%ong the%. Closedend 6uestions

!ro$ide ans(ers that are easier to inter!ret and tabulate.

/penend 6uestions allo( res!ondents to ans(er in their

o(n (ords. /penend 6uestions are useful in e"!lorator'

research.


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Step &- Implementing the Research Plan

The researcher ne"t !uts the %arketing research !lan intoaction. (his in)ol)es olleting proessing andanaly7ing the information! Data collection can be carriedout b' the co%!an'1s %arketing research sta/ or outside

5r%s. Researchers %ust guard against !roble%s (ithinteracting (ith res!ondents# (ith the ualit' of!artici!ants1 res!onse# and (ith inter$ie(ers (ho %ake%istakes or take shortcuts.

Researchers %ust also !rocess and anal'e the collected datato isolate i%!ortant infor%ation and insight. The' need tocheck data for accurac' and co%!leteness and code it foranal'sis.

The researchers then tabulate the results and co%!utestatistical %easures



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The %arket researcher %ust no( inter!ret the

5ndings# dra( conclusions# and re!ort the% to

%anage%ent. The researcher should not tr' to

o$er(hel% %anagers (ith nu%bers and fanc'

statistical techniues. Rather# the researcher

should !resent i%!ortant 5ndings and insights

that are useful in the %a+or decisions faced b'

%anage%ent.

Step '- Interpreting and Reporting the (indings


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RE0ARFindings inter!retation should not be left onl'

to researchers. The' are often e"!erts in

research design and statistics# but the

%arketing %anager kno(s %ore about the

!roble% and the decisions that %ust be

%ade.

*naly7ing and 8sing Marketing Information


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The uestion of ho( best to anal'e and use indi$idual

custo%er data !resents s!ecial !roble%s. 0ost co%!aniesare a(ash in infor%ation about their custo%ers.

Unfortunatel'# this infor%ation is usuall' scattered (idel'

across the organiation. It is buried dee! in the se!aratedatabases and records of di/erent co%!an' de!art%ents.

To o$erco%e such !roble%s# %an' co%!anies are no(

turning to ustomer relationship management #C-M$to manage detailed information a,out indi)idual

ustomers and carefull' %anage custo%er touch !oints

to %a"i%ie custo%er lo'alt'.


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"$stomer Relationship Management )"RM*

Data warehouses are co%!rehensi$e co%!an'(ide

electronic databases of 5nel' tuned detailed custo%er

infor%ation

Uses

To understand custo%ers better

To !ro$ide higher le$els of custo%er ser$ice

To de$elo! dee!er custo%er relationshi!s

To identif' high)$alue custo%ers

* l i d 8 i M k i


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*naly7ing and 8sing MarketingInformation

"$stomer Relationship Management

(ouh points, E$er' contact bet(een the custo%erand co%!an'

Custo%er !urchases Sales force contacts Ser$ice and su!!ort calls Web site $isits Satisfaction sur$e's Credit and !a'%ent interactions Research studies


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Distri,uting and 8sing Marketing Information

Information distri,ution in$ol$es entering

infor%ation into databases and %aking it a$ailable

in a ti%e) useable %anner

Intranet !ro$ides infor%ation to e%!lo'ees and other

stakeholders E"tranet !ro$ides infor%ation to ke' custo%ers and

su!!liers


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/ther Marketing InformationConsiderations

International Marketing Research

Additional and di/erent challenges 2e$el of econo%ic de$elo!%ent Culture Custo%s u'ing !atterns

Di*cult' in collecting secondar' data 7ard)to)reach res!ondents


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/ther Marketing InformationConsiderations

Intrusions on consu%er !ri$ac' Consu%er resent%ent 0isuse of research 5ndings

P$blic Polic! and +thics in Marketing Research

principles of marketing ch 4

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