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Chapter 5

MARKETING INFORMATIONMARKETING INFORMATIONAND RESEARCHAND RESEARCH

5-1 Understanding the Need for Market Information

5-2 Finding and Managing Marketing Information

5-3 Using Marketing Research

5-4 Collecting Primary Data

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UNDERSTANDING THE NEED FOR MARKETING INFORMATION

OBJECTIVESOBJECTIVESExplain the importance of information in

making marketing decisions.Describe the categories of information

needed by marketers.

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Starting with Information

Consumers wants & needs (similarities/differences of consumers)

Expanding choices Consumer needs change over time Discretionary Income – used to purchase things not essential

Competition Lower price, better product, new features, location of

The global marketplace Know your consumer groups in other countries

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Deciding on Information Needs

Approaches to planningCategories of information

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Types of Information Needed for Effective Marketing Decisions

Consumersprimary needspurchase frequencybrand preferencesinformation needsmedia preferencesshopping behavior

agegenderincomeeducationfamily sizeoccupationattitudes

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Types of Information Needed for Effective Marketing Decisions

Marketing Mix discounts location and method of sale type of distribution used display procedures promotion and sales

methods promotional message promotional media

basic products product features services product packaging guarantees after-sale customer

service product price credit choices

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Types of Information Needed for Effective Marketing Decisions

Business Environmentconsumer protectionethical issues tax policiesproposed laws international markets

type of competitioncompetitors’ strengthscompetitors’ strategieseconomic conditionsgovernment regulationsnew technology

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FINDING AND MANAGING MARKETING INFORMATION

OBJECTIVESOBJECTIVESDescribe common sources of internal

and external market information.Explain the five critical elements of an

effective marketing information system.

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Sources of Market Information

Steps of the Process Identify the types of information needed.Determine the available sources of each type of

information.Evaluate each source to determine if it meets the

organization’s needs in term of accuracy, time, detail, and cost.

Select the sources that best meet the identified needs.Enter the information into a marketing information

system.

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Internal Information Sources

Customer records and sales information

Production and operations reportsPerformance information

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External Information Sources

Government reportsTrade and professional associationsBusiness publicationsCommercial data and information

services

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Marketing Information Systems

InputStorageAnalysisOutputDecision making

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Designing an MkIS

QuestionMkIS

ElementWhat information is needed to develop and implement the marketing strategy?

Input

How should the information be maintained so it is in a usable form, secure, and easy to access when needed?

Storage

What methods should be used to organize and study the information decisions?

Analysis

How and when should the information be made available for most effective use?

Output

What ways should the information be used to improve marketing?

Decision Making

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USING MARKETING RESEARCH

OBJECTIVESOBJECTIVESDescribe how to define and develop an

understanding of a problem as the first steps toward solving it.

Identify the steps needed to gather and study data relevant to a problem.

Explain how to prepare reports and present proposed solutions.

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Seeing the Problem Clearly

Define the problemAnalyze the situationDevelop a data-collection procedure

Secondary dataPrimary data

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Implementing a Marketing Research Study

1. Define the problem

2. Analyze the situation

3. Develop a data-collection procedure

4. Gather and study information

5. Propose a solution

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Gather Information

Select the participantsPopulationRandom sampling

Collect the dataAnalyze the data

Numerical dataNon-numerical data

Prepare results

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Propose a Solution

Research reportsPresenting research resultsWhen to use marketing research

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Sections of a Research Report

Statement of the problemReview of secondary dataResearch proceduresResults of the researchSummary and recommendations

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COLLECTING PRIMARY DATA

OBJECTIVESOBJECTIVESDescribe the purpose of marketing

research surveys.Explain the reasons for and limitations

of using observation.Define various types of marketing

research experiments.

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Conducting Surveys

Closed-ended questionsOpen-ended questions

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Focusing on the Issues

Focus groupQuestioning with clarity

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Making Observations

Observation collects information by recording actions without interacting or communication with the participant.

Recording devices includeVideo camerasAudio recordersBar code scannersEye-tracking photography

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Performing Experiments

Test marketsSimulations