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Principles of Marketing

Dr. Do Khac Xuan Diem

Email: diem.dkx@ou.edu.vn

Chapter 4

Marketing Information

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Learning objectives

• Objective 1: Explain the importance of information in gaining insights

about the marketplace and customers.
• Objective 2: Define the marketing information system and discuss its
parts.
• Objective 3: Outline the steps in the marketing research process.

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Learning objective 1:
Explain the importance of information in
gaining insights about the marketplace and
customers.

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Marketing information and customer insights

Customer insights
• Fresh and deep insights into customer needs and wants
• Important but difficult to obtain
 Needs and buying motives not obvious
 Customers usually can’t tell you what they need and why they buy

Customer value
Marketing Customer
Engagement
information insights
Relationship

Marketing information and today’s ‘big data’

The huge and complex data sets Managers do not need more
generated by today’s sophisticated information but better
information generation, collection, information and more effective
storage and analysis technologies. use of existing information.

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Marketing analytics and artificial intelligence

Marketing analytics
Involves tools and technologies used in making sound marketing decisions that lead
to effective outcomes and return on marketing investment. This process requires
data collection and analysis from all channels in the physical and digital arenas,
including big data, over a time span.

Artificial Intelligence (AI)

Technology by which machines think and
learn in a way that looks and feels human
but with a lot more analytical capacity.

Artificial intelligence and personalized marketing

To recommend programs to To create personalized customer

subscribers or develop its own
exclusive content in the quest to
serve its customers better.
experiences and manage real-time
customer interactions, based on everything
from customers’ past transactions and
preferences to local traffic and weather
conditions. 8

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Thinking
A modern technology
enables firms to build
Can AI replace relationships with
marketing managers? customers. What do
you think?

1. What are other examples of how artificial intelligence can be used to manage real-
time customer interactions?
2. What are examples of how AI-powered robots can provide customer assistance?
3. What benefits does a company such as Starbucks gain from marketing analytics and
artificial intelligence? How might this translate into increased customer lifetime
value?
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Using and managing marketing information

Marketing research
Marketing
information

Fresh understandings of customers

and the marketplace derived from
Companies are forming customer insights teams
marketing information that become
Include all company functional areas.
the basis for creating customer
Collect information from a wide variety of
value and relationships.
sources.
Use insights to create more value for their
customers.
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Learning objective 2:

Define the marketing information system and discuss

its parts.

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Using and managing marketing information

Marketing information system (MKIS) refers to the people and procedures
dedicated to assessing information needs, developing the needed information, and
helping decision makers to use the information to generate and validate actionable
customer and market insights.

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Assessing marketing information needs

A marketing information system (MKIS) provides information to the

company’s marketing and other managers and external partners such as
suppliers, resellers, and marketing service agencies.
Characteristic of a good marketing information system:
Balancing the information users would like to have against what they
need and what is feasible to offer

User’s Benefits of
Needs information

MKIS Costs of obtaining

Offerings information
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Assessing marketing information needs

1. What types of decisions are you regularly called upon to make?
2. What types of information do you need in order to make these decisions?
3. What types of information do you regularly get?
4. What types of special studies do you periodically request?
5. What types of information would you like to get that you are not now getting?
6. What information would you want daily, weekly, monthly, yearly?
7. What magazine and trade reports would you like to see on a regular basis?
8. What specific topics would you like to be kept informed of?
9. What types of data analysis programs would you like to see made available?
10. What do you think would be the five most helpful improvements that could be
made in the present marketing information system?

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Developing marketing information

Marketers obtain information from

Internal data

Marketing intelligence

Marketing research

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Internal data
Internal databases
Electronic collections of consumer and market information
obtained from data sources within the company’s own network.

Marketing Accounting Operations

Salesforce
department department department

Customer Reseller reactions Records of sales Production

characteristics Competitor Costs Shipments
Sales transactions activities Cashflows Inventories
Website visits
Customer
satisfaction What are advantages and disadvantages of internal data?
Service problems

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Competitive marketing intelligence

Competitive marketing intelligence is the systematic monitoring, collection
and analysis of publicly available information about consumers, competitors, and
developments in the marketing environment.

Marketing intelligence techniques range from

• observing consumers firsthand
• quizzing the company’s own employees

• benchmarking competitors’ products

• conducting online research

• monitoring social media networks

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Competitive marketing intelligence

Competitor intelligence can be collected from
• annual reports, business publications, trade show exhibits, press releases
• social media sites, competitor’s websites
• people inside the company
• suppliers, resellers, and key customers
• Internet searches of specific competitor names, events, or trends
• tracking consumer conversations about competing brands and the company’s
own brands
• thousands of online databases

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Learning objective 3:

Outline the steps in the marketing research process

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Marketing research
Marketing research is the systematic design, collection, analysis, and
reporting of data relevant to a specific marketing situation facing an
organization.
Marketing research enables marketers to
• gain insights into customer motivations, purchase behavior, and satisfaction
• assess market potential and market share
• measure the effectiveness of pricing, product, distribution, and promotion
activities

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Marketing research

Qualitative research
Studies involves a small number of individuals, such as focus group or
in-depth one-to-one interviews, using open-ended questions.

Quantitative research
Research that places heavy emphasis on using formalised, standard
questions and pre-determined response options in questionnaires
administered to large numbers of respondents

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Marketing research

The marketing research process

Implementing
Developing
Defining the the research
the research Interpreting
problem and plan –
plan for and reporting
research collecting and
collecting the findings
objective analysing the
information
data

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Defining the problem and research objectives

• Exploratory research
Marketing research used to gather preliminary information that will help to define
problems or to suggest hypotheses.
• Descriptive research
Marketing research used to better describe marketing problems, situations or
markets.
• Causal research
Market research used to test hypotheses about cause-and-effect relationship.

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Developing the research plan

Management problem

Research objectives

Information needed

How the results will help

management decisions

Budget

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Define information needed

A problem Research Information
decision objectives needed
• What are existing
• To decide • To understand brands of cordyceps
whether to the existing in the market?
launch cordyceps market of • Who are these
to HCMC market, cordyceps. brands’ customers?
if so, the best • To gain insights • What are these
way to do it. brands’ marketing
of consumers’
mix strategies?
motivation,
• Why do customers
needs and wants buy cordyceps?
of cordyceps.
• What are customers’
needs and wants?
• How do they use
cordyceps?

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Sources of data

Secondary data is information that already exists somewhere, having been

collected for another purpose.

Primary data is information collected for the specific purpose at hand.

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Gathering secondary data

• Sources of secondary data
 Internal sources
 Government publication
 Periodicals and books (Journal of Marketing, Journal of Marketing Research,
Journal of Consumer Research, Journal of Consumer Behaviour, ….)
 Commercial data (Nielsen)
 Commercial online databases (ProQuest, LexisNexis)
 Internet search engines

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Gathering secondary data

Advantages and disadvantages of secondary data

Disadvantages
Advantages
- data may not be

Lower cost Relevant

Obtained quickly Accurate

Cannot collect Current

otherwise
Impartial
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Primary data collection

Research Approaches

Contact Methods

Sampling Plan

Research Instruments

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Research approaches

Observational research involves gathering primary data by observing relevant

people, actions, and situations.
Ethnographic research a form of observational research that involves sending
trained observers to watch and interact with consumers in their ‘natural
habitats’.
Netnographic research draws on ethnographic research which observes
people in natural settings, netnographic research involves monitoring online
communities of interest to gain customer insights from posts to online forums,
blogs, and social media generally.

What are advantages and disadvantages of observational research?

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Research approaches

Survey research involves gathering primary data by asking people questions about
their knowledge, attitudes, preferences, and buying behaviour.
Advantages
- Flexibility (different kinds of information in many different situations)

Disadvantages
- Cannot answer the survey questions
- Unwilling to respond to unknown interviewers or private things
- Unengaged respondents

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Research approaches
Experimental research involves gathering primary data by selecting matched
groups of subjects, giving them different treatments, controlling related factors, and
checking for differences in group responses.

What price will be charged?

Group 1: Price A Group 2: Price B

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Contact methods
Mail Telephone Personal Online
Flexibility Poor Good Excellent Good
Quantity of Good Fair Excellent Good
data that can
be collected
Control of Excellent Fair Poor Fair
interviewer
effects
Control of Fair Excellent Good Excellent
sample
Speed of data Poor Excellent Good Excellent
collection
Response rate Poor Poor Good Fair

Cost Good Fair Poor Excellent

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Personal interviewing
• Individual interviewing
Homes, offices, streets, shopping malls
• Focus group interviewing
Involves inviting small groups of people to gather for a few hours with a
trained interviewer to talk about a product, service or organization. The
interviewer ‘focuses’ the group discussion on important issues.
- 6 – 10 people
- Trained moderator
- To gain fresh insights into consumer thoughts and feelings
- Difficult to generalize the results
- Consumers not always honest and open
• Individual and focus group interviews provide rich insights into customers’ thoughts,
feelings, motivations, needs and wants.
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Online marketing research

Online marketing research
Collecting primary data online through internet surveys, online panels,
experiments, content analysis, online focus groups and brand communities.
- Websites, social media sites, emails or mobile devices
- Speed
- Low costs
- Sample size or location has little impact on costs
- Respondents can be reached regardless of their location

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Sampling plan

A sample is a segment of the population selected for marketing research to

represent the population as a whole.
• Who is to be studied? (What sampling units?)
• How many people should be studied? (What sample size?)
• How should the people be chosen? (What sampling procedure?)

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Sampling plan
Probability Sample
Simple random sample Every member of the population has a known and equal
chance of selection.
Stratified random sample The population is divided into mutually exclusive groups
and random samples are drawn from each group.
Cluster (area) sample The population is divided into mutually exclusive groups
and the researcher draws a sample.
Nonprobability Sample
Convenience sample The researcher selects the easiest population members.
Judgment sample The researcher uses their judgment to select population
members.
Quota sample The researcher finds and interviews a prescribed number
of people in each of several categories.
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Research instruments
• Questionnaires
 Most common
 In person, by phone, or online
 Flexible
 Closed-ended questions
 Open-ended questions
 Researchers must be careful with wording and ordering of questions
• Mechanical instruments
 People meters attached to TV to record who watch which programs
 Checkout scanners to record shoppers’ purchases
 Neuromarketing (MRI scans) measures brain activity to learn how consumers
feel and respond.

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Implementing the research plan

Collecting the information

Processing the information

Analysing the information

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Interpreting and reporting the findings

Interpret findings

Draw conclusions

Report to management

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Reflect yourself

Could you use the marketing research process to analyse your career
opportunities and job possibilities? (Think of yourself as a ‘product’ and
employers as potential ‘customers’. If so, what would your research plan
look like?

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References

Kotler, P., & Amstrong, G., & Opresnik, M.O., (2017). Principles of marketing.
Global edition UK: Pearson Education limited.
Perreault William D., Cannon Joseph P., McCarthy - Essentials of Marketing -
McGraw-Hill 2012.
Amstrong et al. (2020). Principles of Marketing Ebook, Pearson Education
Australia.

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