CHAPTER 4CHAPTER 4MARKETING INFORMATIONMARKETING INFORMATION

MARKETING INFORMATION

• Definition and Use of Information

• Databases in Marketing

• Types of Data

• Marketing Research Process

DEFINITION OF INFORMATION

Data that is judged useful by a decision maker

• Buyer

• Seller

• Influencer

USE OF INFORMATION

• The “me” information age

• Information is power

• Information is not neutral

• Information can be used strategically

THE “ME” INFORMATION AGE

“I can now work and communicate from anywhere to anywhere, with anything at anytime, and with anybody.”

•Cell Phones

•E-mails

•Internet

STRATEGIC INFORMATION

Far better an approximate answer to the

right question, which is often vague, than

an exact answer to the wrong question

STRATEGIC INFORMATION

Are we going in the right direction?

DATABASES IN MARKETING

• Scanning Data

• Customer Data

• Big Data

SCANNING DATA EXAMPLES

• Walmart

• Randalls

• Catalina

CUSTOMER DATABASE EXAMPLES

• Health Valley Foods

• Barchetti Retail Shop

• Bella Wedding Pictures

BIG DATA

Sellers searching for useful information contained in large data bases

BIG DATA EXAMPLES

• Ceasars Entertainment

• Zynga

• United Parcel Service

• Richmond Police

TYPES OF DATA

• Secondary Internal Data

• Secondary External Data

• Primary Observation Data

• Primary Questioning Data

SECONDARY INTERNAL DATA

• Accounting Data

• Financial Data

• Sales Data

• Supply Chain Data

SECONDARY EXTERNAL DATA

• Census Data

• Web

• Courthouse

• Hoovers

PRIMARY OBSERVATION

Observing something without any questioning or interviewing behavior

PRIMARY OBSERVATION EXAMPLES

• Retail price shopping

• Satellite images

• Observing kids play with toys

• Traffic counters

PRIMARY QUESTIONING DATA

Gathering data through a variety of interviews and questions

PRIMARY QUESTIONING EXAMPLES

• Personal interviews

• Telephone interviews

• Self-questionnaires

• Focus group Interviews

FOCUS GROUP INTERVIEWS

• Advantages:– Inexpensive– Fast to collect data

• Disadvantages:– May not represent target market– Cannot measure sampling error

FOCUS GROUP EXAMPLES

• Interview focus groups in person

• Interview focus groups online

• Interview focus groups in a teleconference

MARKETING RESEARCH PROCESS

WHAT INFORMATION IS NEEDED?

DATA COLLECTION

DATA ANALYSIS

MAJOR SAMPLE CHOICES

• Random sample

• Stratified sample

• Quota sample

• Convenient sample

RANDOM SAMPLE EXAMPLE

All 3,000 Bauer students have an equal chance if being picked in a sample of 200 Bauer students

STRATIFIED EXAMPLE

All 3,000 Bauer students are divided into subgroups like:• Undergraduate vs. graduate• Different majors

All 3,000 students have an equal chance of being picked from the subgroups, which add up to 200 students.

QUOTA SAMPLE EXAMPLE

All 3,000 Bauer students are divided into subgroups like:• Undergraduate vs. graduate• Different majors

The 200 students picked in the sample are not randomly picked from the subgroups but by quotas.

CONVENIENT SAMPLE EXAMPLE

All 3,000 Bauer students are eligible to be picked in the sample of 200 students.

The 200 students picked in the sample are not randomly picked from the 3,000 Bauer students.

SAMPLING BIASES

• Collection Bias

• Response Bias

• Question Wording Bias

COLLECTION BIAS

• Frame error

• Non-contact

• Interviewer Error

RESPONSE BIAS

• Refusal to answer questions

• Respondent bias

QUESTION WORDING BIAS

• Ability to answer question

• Willingness to answer question

• Loaded question