topic 3 mis and mr lect ppt

Topic 3

Marketing Research

And

Market Information System

11/04/23 Ms Seema Agarwal 2

Chapter Objectives

In this chapter, we focus on the following questions: 1. What constitutes good marketing research?2. How can marketing decision support systems help marketing

managers make better decisions?3. Describe the development of the marketing research function and its

major activities.4. Explain the steps in the marketing research process5. Distinguish between primary and secondary data and identify the

sources of each type.6. Explain the different sampling techniques used by marketing

researchers.7. Identify the methods by which marketing researchers collect primary

data. 8. Explain the challenges of conducting marketing research in global

markets.9. Outline the most important uses of computer technology in marketing

research.10. What are the components of a modern marketing information

system?


Marketing Research

The process of planning,

collecting, and analyzing data

relevant to a marketing decision.


Defining Research

Systematic : well organized and planned

Objectivity : unbiased and unemotional

To investigate a specific problem that needs a solution.

To discover new facts to deal with the problem.

•Market Research links consumer, customer and the public to the marketers through information


Roles of Marketing Research

DescriptiveDescriptive

DiagnosticDiagnostic

PredictivePredictive

Marketing Research Marketing Research

has three roles:has three roles:

Marketing Research Marketing Research

has three roles:has three roles:


DiagnosticDiagnostic

PredictivePredictive

DescriptiveDescriptive

Gathering and presenting factual statements

Explaining data

Attempting to estimate the results of a planned marketing decision

Roles of Marketing Research 22


Application of MR

Marketing research activities can be divided into four main strategic categories: Market Analysis

Identifying and evaluating opportunities Competitive Analysis

Market Segmentation Analyzing market segments and selecting

target markets Marketing Strategy Design

Planning and implementing a marketing mix Analyzing Marketing Performance


When Should Marketing Research be Conducted?

Where there is a high level of uncertainty

When value of research information exceeds the cost of generating the information


Characteristics of Good Marketing Research

1. Scientific method

Effective marketing research uses the principles of the scientific method: careful observation, formulation of hypotheses, prediction, and testing.

2. Research creativity

At its best, marketing research develops innovative ways to solve a problem: a clothing company catering to teenagers gave several young men video cameras, then used the videos for focus groups held in restaurants and other places teens frequent.

3. Multiple methods

Marketing researchers shy away from overreliance on any one method. They also recognize the value of using two or three methods to increase confidence in the results.


4. Interdepence of models & data

Good marketing researchers recognize that data are interpreted from underlying models that guide the type of information sought

5. Value & cost of information

Cost are typically easy to determine but value of research is harder to quantify.

6. Ethical marketing

Good marketing research benefits both the sponsoring company and its customers. The misuse of marketing research can harm or annoy customers. Increasing resentment at what consumers regard as an invasion of their privacy or sales pitch has become major problem.

Characteristics of Good Marketing Research


How Companies Obtain Marketing Research?

1. In-house marketing research department P&G ; J&J

2. Hire an outside agency that specializes in marketing research.

Marketing research firms fall into three categories:a. Syndicated-service research firms –

Organizations that regularly provide a standardized set of data to all customers. Example: Nielsen Media Research

b. Custom marketing research firms- Hired to carry out specific projects. They design the study and report

the findings.c. Specialty line marketing research firms –

A marketing research firm like field service firm that specializes in selected activities like:

Field or telephone interviews Data-processing Focus groups


Example- Fuji Photo Film

Most companies such as Fuji Photo Film, use a combination of marketing research resources to study their industries, competitors, audiences and channel strategies.


Management Uses of Marketing Research

Improve the quality of decision making

Trace problems

Focus on keeping existing customers

Understand the ever-changing marketplace


Managerial Value of MR Value

Relevance Quality Timeliness Completeness

Data vs. Information vs. Knowledge


Decisions That Draw On MRSegmentation Decisions

Which segment should be target?

What benefits are most important for each segment?

Which geographic area should be entered?

Product Decisions What product features should be included?

How should the product be positioned?

What type of package is preferred by the customers?

Distribution Decisions

What type of retailer should be used?

What should be the markup policy?

Should a few outlets be employed or many?

Advertising and Promotion Decisions

What appeals should be used in advertising?

In which vehicles should the advertising be placed?

What should the budget be?

Personal Selling Decisions

What customer types have the most potential?

How many salespeople are needed?

Price Decisions What price level should be charged?

What sales should be offered during the year?

What response should be made to a competitor’s price?

Branding Decisions What should be the name, symbol, logo and slogan that will be associated with the product?

What is the position that the brand should adopt vis-à-vis competition?

How can brand loyalty be increased?

Customer Satisfaction Decisions

How should customer satisfaction be measured?

How often should it be measured?

How should customer complaints be handled?


Barriers Limiting the Use of Marketing Research

A narrow conception of the research Uneven caliber of researchers Poor framing of the problem Late and occasionally erroneous findings Personality and presentational differences


The Marketing Research Process

Define the problem

Develop research plan

Collect information

Analyze information

Present findings

Makedecision


Step 1: Define the Problem

Define the problem Specify decision alternatives State research objectives

Specify clearly :•What is to be researched (the content, the scope)?

•Why is to be researched (the decisions that are to be made)?.

“A problem well defined is half solved”.

For instance, the problem may be the failure to meet sales objectives or of falling sales. This may be due to the poor quality product or poor advertising or lack of motivation of sales force and so on. The job of the research people is to identify and define the problem. There should be a proper diagnosis which will lead to an effective solutions.


Example: Background : American Airlines (AA) is constantly looking for new ways to

serve its passengers. Now it is reviewing many ideas like:

To supply an internet connection with limited access to web pages and email messaging;

To offer 24 channels of satellite cable TV….. The marketing research manager is assigned to investigate how passengers

would rate these services and how much extra they would be willing to pay if a charge was made.

Research Problem – “will offering an in-flight Internet services create enough incremental preferences and profits for AA to justify its cost against other possible investments Americans might make?”.

Research Objectives:- What type of passengers would respond to using an in-flight Internet service? How many passengers are likely to use an in-flight Internet service at different

price levels ? How many new passengers would choose AA? How important is Internet service to passengers relative to other services?


Objective setting example 1

Management Problem:

Should a new product be launched?

Research Objective:

Determine consumer preference and purchase intentions for the proposed new product.



Management Problem:

Should the ad campaign be changed?

Research Objective:

To determine effectiveness of the current campaign.



Management Problem:Should the price of the brand be increased?

Research Objective:To determine the price elasticity of demand and the impact on sales and profits of various levels of price changes.


Step 2:

A.Data

Sources

E.ContactMethods

C.Research

Instruments

D.Sampling

Plan

B.Research Approach

Develop research plan


A.

The researcher can gather information from : Secondary data

Data previously collected for any purpose other than the one at hand.

Primary data Are freshly gathered data for a specific purpose or for a

specific research project.

Researchers usually start their investigation by examining secondary data to see whether problem can be partly or wholly solved without collecting costly

primary data.

Data Sources


II Ai. Sources of Secondary Data

Government Agencies

Trade and Industry Associations

Marketing Research Firms

Commercial Publications

News Media

Internal Corporate Information •Search Enginesand Professional Directories

•Sites of Interest toMarketing Researchers

•Discussion Groups


II Ai. Advantages of Secondary Data

Saves time and money if on target

Aids in determining direction for primary data collection

Pinpoints the kinds of people to approach

Serves as a basis of comparison for other data


II Ai. Disadvantages of Secondary Data

May not be on target with the research problem

Quality and accuracy of data may pose a problem


II Aii. Advantages of Primary Data

Answers a specific research question

Data are current

Source of data is known

Secrecy can be maintained


II Aii. Disadvantages of Primary Data

Expensive

Quality declines if interviews are lengthy

Reluctance to participate in lengthy interviews

Disadvantages are usually offset by the

advantages of primary data!

Disadvantages are usually offset by the

advantages of primary data!


II B. Research Approaches

ObservationObservation

Focus GroupFocus Group

SurveySurvey

Behavioral DataBehavioral Data

ExperimentationExperimentation

EthnographicEthnographic


II Bi. Observation Research

A research method that relies

on three types of observation: people watching people

people watching an activity

machines watching people


II Bi a. Mystery Shoppers

Researchers posing as

customers who gather

observational data about

a store and collect data about

customer/employee interactions.


II Bii. Ethnographic Research

It is a particular observational approach that uses concepts and tools from anthropology and other social science disciplines to provide deep understanding of how people live and work.

Observes a customer or group of customers in their natural settings and then interprets their behavior based on an understanding of social and cultural characteristics of that setting.

Focuses on understanding the meaning of a product or the consumption experience in a consumer’s life

Takes time and is expensive


II Biii. Survey Research

The most popular technique for

gathering primary data in which

a researcher interacts with

people to obtain facts, opinions,

and attitudes.


II Biii. Research Instruments For Survey Research

Focus GroupsFocus Groups

Executive InterviewsExecutive Interviews

Mail SurveysMail Surveys

Telephone Interviews(Home and Central Location)

Telephone Interviews(Home and Central Location)

Mall Intercept InterviewsMall Intercept Interviews

In-Home InterviewsIn-Home Interviews


Mall Intercept Interview

Survey research method that

involves interviewing people in

the common areas of shopping

malls.


Executive Interviews

A type of survey that involves

interviewing businesspeople at

their offices concerning

industrial products

or services.


Focus Group

Seven to ten people who

participate in a group discussion

led by a moderator.


Advantages of On-Line Focus Groups

Speed

Cost-effectiveness

Broad geographic scope

Accessibility

Honesty


II Bv.Scanner-Based Research

A system for gathering

information from a single group

of respondents by continuously

monitoring the advertising,

promotion, and pricing they are

exposed to and the things they

buy.


II Bvi. Experiment

A method a researcher uses to

gather primary data. The purpose of this type of research is to develop cause-and-effect relationships by eliminating competing explanations of the observed findings.It requires formulation of hypotheses.


IIC.Planning the Research Design

Which research Which research questions questions

must be answered?must be answered?

Which research Which research questions questions

must be answered?must be answered?

How and whenHow and whenwill data be will data be gathered?gathered?

How and whenHow and whenwill data be will data be gathered?gathered?

How willHow willthe datathe data

be analyzed?be analyzed?

How willHow willthe datathe data

be analyzed?be analyzed?

??


II D. Research Instruments

QuestionnairesQualitative MeasuresTechnological Devices


IIDi.Questionnaire Design

Open-EndedQuestion

Does not specify possible answers

Open-EndedQuestion

Does not specify possible answers

Closed-EndedQuestion

Specifies possible answers

Closed-EndedQuestion

Specifies possible answers

Scaled-Response Question

Scaled-Response Question

An interview question that encourages an answer phrased in

respondent’s own words.

An interview question that encourages an answer phrased in

respondent’s own words.

An interview question that asks the respondent to make a selection

from a limited list of responses.

An interview question that asks the respondent to make a selection

from a limited list of responses.

A closed-ended question designed to measure the intensity

of a respondent’s answer.

A closed-ended question designed to measure the intensity

of a respondent’s answer.


Question Types—Dichotomous

In arranging this trip, did you contact American Airlines?

Yes No


Question Types—Multiple Choice

With whom are you traveling on this trip?

No one

Spouse

Spouse and children

Children only

Business associates/friends/relatives

An organized tour group


Question Types—Likert Scale

Indicate your level of agreement / disagreement with the following statement:

Small airlines generally give better service than large ones.

Strongly disagree

Disagree

Neither agree nor disagree

Agree

Strongly agree


Question Types—Semantic Differential

A scale connecting two bipolar words. The respondent selects the point that represents his

or her opinion.

American Airlines

Large ………………………………...…….Small

Experienced………………….….Inexperienced

Modern……………………….…..Old-fashioned


Question Types—Importance Scale

A scale that rates the importance pf some attribute.

Airline food service is _____ to me.

Extremely important

Very important

Somewhat important

Not very important

Not at all important


Question Types—Rating Scale

A scale that rates the importance of some attribute from “poor” to “excellent”.

American Airlines’ food service is _____.

Excellent

Very good

Good

Fair

Poor


Question Types—Intention to Buy Scale

A scale that describes the respondent’s intention to buy.

How likely are you to purchase tickets on American Airlines if in-flight Internet access were available?

Definitely buy

Probably buy

Not sure

Probably not buy

Definitely not buy


Question Types—Completely Unstructured

A question that respondents can answer in an almost unlimited number of ways.

What is your opinion of American Airlines?


Question Types—Word Association

What is the first word that comes to your mind when you hear the following?

Airline ________________________

American _____________________

Travel ________________________


Question Types—Sentence Completion

When I choose an airline, the most important consideration in my decision is: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________.


Question Types—Story Completion

“I flew American a few days ago. I noticed that the exterior and interior of the plane had very bright colors. This aroused in me the following thoughts and feelings.” Now complete the story. __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


Question Types—Picture (Empty Balloons)

A picture of two characters is presented, with one making a statement. Respondents are asked to identify with the other and fill in the empty balloon.


Question Types—Thematic Apperception Test

Make up a story that reflects what you think is happening in this picture.


Questionnaire Design

Qualities Qualities of of

Good Good QuestionnairesQuestionnaires

Qualities Qualities of of

Good Good QuestionnairesQuestionnaires

Clear and ConciseClear and Concise

No Ambiguous LanguageNo Ambiguous Language

UnbiasedUnbiased

Reasonable TerminologyReasonable Terminology


Questionnaire Do’s and Don’ts

Ensure questions are free of bias

Make questions simple Make questions specific Avoid jargon Avoid sophisticated words Avoid ambiguous words

Avoid negatives Avoid hypotheticals Avoid words that could be

misheard Use response bands Use mutually exclusive

categories Allow for “other” in fixed

response questions


II D ii. Qualitative Measures

Word AssociationWord Association

Projective Techniques – present an incomplete stimulus and asked to complete it.

Projective Techniques – present an incomplete stimulus and asked to complete it.

VisualizationVisualization

Brand Personification- what kind of person they think of when the

brand is mentioned

Brand Personification- what kind of person they think of when the

brand is mentioned

Laddering – asking series of “why” questions

Laddering – asking series of “why” questions

respondents are asked to create a collage of images from their own sources that

represents their thoughts feelings about the research topic


II D iii. Technological Devices

Galvanometers –measures the interests or emotions aroused by exposure to a specific picture

or ad.

Tachistoscope – flashes an ad to a subject

with an exposure interval and asked them to describe everything that he can recall

Eye cameras

Audiometers – attached to TV sets in participating homes to record when the set is on and

to which channel is tuned.

GPS


IIE. Sampling Procedure

SampleSample

UniverseUniverse

A subset from a large population.A subset from a large population.

The population from which a sample will be drawn.

The population from which a sample will be drawn.


Sampling Plan

Sampling unit: Who is to be surveyed? Sample size: How many people should be

surveyed? Sampling procedure: How should the

respondents be chosen?


Sampling Procedure

UniverseUniverse SampleSample

Probability Samples

Probability Samples

Non-Probability Samples

Non-Probability Samples


Probability And Non-Probability Samples

ProbabilitySample

ProbabilitySample

A sample in which every element in the population has a known statistical

likelihood of being selected.

A sample in which every element in the population has a known statistical

likelihood of being selected.

Non-Probability

Sample

Non-Probability

Sample

Any sample in which little or no attempt is made to get a representative

cross-section of the population

Any sample in which little or no attempt is made to get a representative

cross-section of the population


Probability Sample

Simple random sample Every member of the population has an equal chance of selection

Stratified random sample The population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group

Cluster (area) sample The population is divided into mutually exclusive groups (such as city blocks), and the researcher draws a sample of the groups to interview

Table Probability and Nonprobability Samples

Continued on next slide . . .


B. Nonprobability Sample

Convenience sample The researcher selects the most accessible population members

Judgment sample The researcher selects population members who are good prospects for accurate information

Quota sample The researcher finds and interviews a prescribed number of people in each of several categories

Probability and Nonprobability Samples (Continued)


Types of Errors

Errors Errors AssociatedAssociated

with Samplingwith Sampling

Errors Errors AssociatedAssociated

with Samplingwith Sampling

Measurement ErrorMeasurement Error

Sampling ErrorSampling Error

Frame ErrorFrame Error

Random ErrorRandom Error


Types of Errors

Measurement Error

Measurement Error

Sampling Error

Sampling Error

Frame Error

Frame Error

Random Error

Random Error

Error when there is a difference between the information desired and the

information provided by research

Error when there is a difference between the information desired and the

information provided by research

Error when a sample somehow does not represent the target population.

Error when a sample somehow does not represent the target population.

Error when a sample drawn from a population differs from the

target population.

Error when a sample drawn from a population differs from the

target population.

Error because the selected sample is an imperfect representation of

the overall population.

Error because the selected sample is an imperfect representation of

the overall population.


II F.Contact Methods

Mail Questionnaire

TelephoneInterview

PersonalInterview

OnlineInterview


Impact of the Internet

Allows better and faster decision making

Improves ability to respond quickly to customer needs and market shifts

Makes follow-up studies and research easier

Slashes labor-and time-intensive research activities


Advantages of internet Surveys

Contact with the hard-to-reach

Contact with the hard-to-reach

Improved respondent participation

Improved respondent participation

Personalized questions and data

Personalized questions and data

Reduced costsReduced costs

Rapid development,Real-time reporting

Rapid development,Real-time reporting

Advantages ofAdvantages ofInternet SurveysInternet SurveysAdvantages ofAdvantages of

Internet SurveysInternet Surveys


Internet Samples

UnrestrictedInternet Sample

UnrestrictedInternet Sample

ScreenedInternet Sample

ScreenedInternet Sample

RecruitedInternet Sample

RecruitedInternet Sample

A survey in which anyone with a computer and modem can fill out

the questionnaire.

A survey in which anyone with a computer and modem can fill out

the questionnaire.

An Internet sample with quotas based on desired sample

characteristics.

An Internet sample with quotas based on desired sample

characteristics.

A sample in which respondents are prerecruited and must

qualify to participate.

A sample in which respondents are prerecruited and must

qualify to participate.


Other Uses of the Internet

Other Internet Other Internet Uses Uses

by Marketing by Marketing ResearchersResearchers

Other Internet Other Internet Uses Uses

by Marketing by Marketing ResearchersResearchers

Viewing of presentations of marketing research surveysViewing of presentations of marketing research surveys

Publication and distributionof reports

Publication and distributionof reports

Data management and on-line analysis

Data management and on-line analysis

Collaboration in the management of a research project

Collaboration in the management of a research project

Distribution of requests for proposals

Distribution of requests for proposals


Marketing Research System

Step 3: Collect the Information Step 4: Analyze the Information Step 5: Present the Findings Step 6: Make the Decision


Field Service Firm33

A firm that specializes in

interviewing respondents on a

subcontracted basis.

Step 3: Collect the Information


Cross-Tabulation

A method of analyzing data that

lets the analyst look at the

responses to one question in

relation to the responses to one

or more other questions.

Step 4: Analyze the Information


Preparing and Presenting the Report

Concise statement of the research objectives

Explanation of research design

Summary of major findings

Conclusion with recommendations

Step 5: Present the Findings


Following Up

Were the recommendations followed?

Was sufficient decision-making information included in the report?

What could have been done to make the report more useful?


MARKETING INFORMATION SYSTEM (MIS)

Consists of people, equipment & procedures to gather, sort, analyze, evaluate distribute needed timely & accurate info to marketing decision

makers.

Step 6: Make the Decision


The Importance of InformationThe Importance of Information

WhyInformation

IsNeeded

MarketingEnvironment

StrategicPlanning

Customer Needs

Competition


What is a Marketing Information System (MIS)?What is a Marketing Information System (MIS)?

Consists of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers.

Function: Assess, Develop and Distribute Assess, Develop and Distribute Information.Information.


Marketing Information System

Developing Information

The Marketing Information SystemThe Marketing Information System

InformationAnalysis

InternalData

MarketingResearch

MarketingIntelligence

DistributingInformation

Assessing InformationNeeds

Marketing Managers

Marketing EnvironmentMarketing Environment

Mar

keti

ng

Dec

isio

ns

and

C

om

mu

nic

atio

ns


Functions of a MIS:Assessing Information NeedsFunctions of a MIS:Assessing Information Needs

Examine Cost/ Benefit of Desired

Information

Examine Cost/ Benefit of Desired

Information

Monitors Environment for Information Managers

Should Have

Monitors Environment for Information Managers

Should Have

Conduct Interviews and Determine

What Information is

Desired, Needed, and Feasible to Obtain.

Conduct Interviews and Determine

What Information is

Desired, Needed, and Feasible to Obtain.


Functions of a MIS: Developing InformationFunctions of a MIS: Developing Information

Obtains Needed Information for Marketing Managers From the Following Sources

Obtains Needed Information for Marketing Managers From the Following Sources

Internal DataCollection of Information from Data Sources Within the Company

Internal DataCollection of Information from Data Sources Within the Company

Marketing IntelligenceCollection and Analysis of Publicly Available Information about

Competitors and the Marketing Environment

Marketing IntelligenceCollection and Analysis of Publicly Available Information about

Competitors and the Marketing Environment

From: Accounting, Sales Force, Marketing, Manufacturing, Sales From: Accounting, Sales Force, Marketing, Manufacturing, Sales

From: Employees, Suppliers, Customers, Competitors, Marketing Research Companies

From: Employees, Suppliers, Customers, Competitors, Marketing Research Companies

Marketing ResearchDesign, Collection, Analysis, and Reporting of Data about a Situation

Marketing ResearchDesign, Collection, Analysis, and Reporting of Data about a Situation


Functions of a MIS: Distributing InformationFunctions of a MIS: Distributing Information

Information Must be Distributed

to the Right Managers at the Right Time.

Information Must be Distributed

to the Right Managers at the Right Time.

Distributes NonroutineInformation for Special

Situations

Distributes NonroutineInformation for Special

Situations

Distributes Routine Information for Decision Making

Distributes Routine Information for Decision Making


MIS – AN INTRODUCTION

MIS begins and ends with marketing managers. It requires:

1. Assessment of Information Needs – interacts with the information users (marketing managers, internal

&external partners , & others who needs marketing information) to assess information needs.

2. Development of Needed Information – from internal company databases, marketing intelligence activities &

market research

3. Distribution of Information- to managers in the right form at the right time to help them make

better marketing decisions.


MIS – Assessing Information Needs

A good marketing information system balances the information users would like to have against what they really need & what is feasible to offer.

Too much information can be as harmful as too little.

The MIS must monitor the marketing environment in order to provide decision makers with information they should have to make key marketing decisions.


10 useful questions for determining the information needs of marketing managers.

1. What decisions do you regularly make?2. What information do you need to make these decisions?3. What information do you regularly get?4. What special studies do you periodically request?5. What information would you want that you are not

getting now?6. What information would you want daily? Weekly?

Monthly? Yearly?7. What magazines and trade reports would you like to see

on a regular basis? 8. What topics would you like to be kept informed of?9. What data analysis programs would you want?10. What are the four most helpful improvements that could

be made in the present marketing information system?


MIS - Developing Marketing Information

Marketers can obtain the needed information from: Internal data, Marketing intelligence , Marketing research


Internal Data Information in database can come from many sources.

The accounting department prepares financial statements & keep detailed records of sales, costs, & cash flows.

Operations reports on production schedules , shipments,& inventories. The marketing department furnishes information on customer

transactions , demographics, psychographics, & buying behaviour. The customer service department keeps records of customer

satisfaction or service problems. The sales force reports on reseller reactions & competitor activities &

marketing channel partner provides data on point of sales transactions.

Frito-Lay uses its sophisticated internal information system to analyze daily sales performance.

Each day Frito-Lay’s salespeople report their day’s efforts via a handheld computers into Frito-Lay HQs in Dallas.

24 hours later, their marketing managers have a complete report analyzing the previous day’s sales of Fritos, Doritos and other brands.

The system helps marketing managers make better decisions and makes the salespeople more effective.

It greatly reduces the number of hours spent filling out reports, giving salespeople extra time for selling.


The Marketing Intelligence System

A Marketing Intelligence System is a set of procedures and sources used by managers

to obtain everyday information about developments in the marketing environment.

The goal of marketing intelligence is to :•improve strategic decisions making , •Assess & track competitors actions & •provide early warning of opportunities &threats.

The company can also obtain important intelligence information from:•suppliers, •resellers, &•key customers.

It can get information by observing competitors & monitoring their published information.


Steps to Improve Marketing Intelligence

Train sales force to scan for new developmentsTrain sales force to scan for new developments

Motivate channel members to share intelligenceMotivate channel members to share intelligence

Network externallyNetwork externally

Utilize a customer advisory panelUtilize a customer advisory panel

Utilize government data resourcesUtilize government data resources

Purchase informationPurchase information

Collect customer feedback onlineCollect customer feedback online


Business IntelligenceBusiness Intelligence Process of gathering information and

analyzing it to improve business strategies, tactics, and daily operations

Competitive IntelligenceCompetitive Intelligence Form of business intelligence that focuses on

finding information about competitors using published sources, interviews, observations by salespeople and suppliers in the industry, government agencies, public filings and other secondary sources including the Internet


Competitive Intelligence

An intelligence system that

helps managers assess their

competition and vendors in

order to

become more efficient and

effective competitors.


Competitive Intelligence

Can help identify a competitor’s advantage

Can help determine how the competitor’s advantagewas achieved


Advantages of Competitive Intelligence

Predict changes in business relationships Guard against threats Forecast a competitor’s strategy Develop a successful marketing plan


Sources of Competitive Intelligence

InternetInternet

Company PersonnelCompany Personnel

ExpertsExperts

CI ConsultantsCI Consultants

Government AgenciesGovernment Agencies

UCC FilingsUCC Filings

SuppliersSuppliers

Newspapers/PeriodicalsNewspapers/Periodicals

Yellow PagesYellow Pages

Trade ShowsTrade Shows


What is a Marketing Decision Support System (MDSS)?

A marketing decision support system is a coordinated collection of data, systems, tools, and techniques with supporting hardware and software by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action. An MDSS can create simulations or models to illustrate the likely

results of changes in marketing strategies or marketing conditions


Data MiningData Mining The process of searching through computer files

to detect patterns Focuses on identifying relationships that are not

obvious to marketers The data is stored in a huge database called a

data warehouse Can be an efficient way to make sense of huge

amounts of data Can help create customer profiles, pinpoint

reasons for customer loyalty or the lack thereof, analyze the potential returns on changes in pricing or promotion, and sales forecasts


Kotler on Marketing

Marketing is becoming a battle based more on information than on sales power.

topic 3 mis and mr lect ppt

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