CHAPTER 4

Managing marketing
information to gain
customer insights
 How?

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 OUTLINE
01 Customer insights

02 The marketing information system

03 The marketing research process

04 How companies use MIS

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Customer Insights

•Fresh and deep understanding about customers

needs and wants
•Difficult to obtain?
• Not obvious
• Customers are unsure about their behavior
Principle of Marketing_ Ms. Dang Thi Uyen Thao
 Example from The first Apple iMac

Principle of Marketing_ Ms. Dang Thi Uyen Thao

Principle of Marketing_ Ms. Dang Thi Uyen Thao
Principle of Marketing_ Ms. Dang Thi Uyen Thao
Principle of Marketing_ Ms. Dang Thi Uyen Thao
 “Behind looks better than other PCs in front”

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Since Bondi blue wasn't good enough, we have Candy Colors

The original "Bondi blue" iMac Candy Colors

Principle of Marketing_ Ms. Dang Thi Uyen Thao
 Customer Insights
• Try to understand customers’ underlying mindsets
Þ How customers buy the product?
• Far from lacking information, managers are overloaded with data- the
results of big data.
• Big data- The huge and complex data sets generated by today’s
sophisticated information generation, collection, storage, and analysis
technologies.
=> Need better information and get better use of existing information
Principle of Marketing_ Ms. Dang Thi Uyen Thao
 “I don’t serve markets. I create them”
Sony Founder Akio Morita
Principle of Marketing_ Ms. Dang Thi Uyen Thao
 Marketing information system (MIS)

Consists of people and procedures for:

• Assessing the information needs
• Developing needed information
• Helping decision makers use the information for
customer

Principle of Marketing_ Ms. Dang Thi Uyen Thao

Principle of Marketing_ Ms. Dang Thi Uyen Thao
Principle of Marketing_ Ms. Dang Thi Uyen Thao
 Assessing Marketing Information Needs

MIS provides information to the company’s marketing

and other managers and external partners such as
suppliers, resellers, and marketing service agencies

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Developing Marketing Information

Internal data
Where could marketers
Marketing intelligence
collect information from?

Marketing research
Principle of Marketing_ Ms. Dang Thi Uyen Thao
 Internal data
Electronic collections of
consumer and market
information obtained from
data sources within the
company network

(from Sales, Finance, Marketing,

Human resource, etc.)
Principle of Marketing_ Ms. Dang Thi Uyen Thao
 Example: How could we use internal data?

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Marketing Intelligence
The systematic collection and
analysis of publicly
available information about
consumers, competitors and
developments in the
marketplace

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Competitor Intelligence

Social media monitoring

Principle of Marketing_ Ms. Dang Thi Uyen Thao From external data
 Competitor Intelligence

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Competitor Intelligence

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Publicly available Market Research report

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Marketing Research
The systematic design,
collection, analysis, and
reporting of data relevant
to a specific marketing
situation facing an
organization

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Huhmmm?

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Internal data: data sources
within the company network
SUMMARY
Marketing Intelligence:
publicly available
information

Marketing research: data

from marketing research
studies
Principle of Marketing_ Ms. Dang Thi Uyen Thao
 Steps in the Marketing Research Process

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 1. Defining the Problem and Research Objectives

Exploratory research

Descriptive research

Causal research

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Management problem

2. Developing the Research Plan Research objectives

Information needed
Written Research Plan includes

Management decisions

Budget
Principle of Marketing_ Ms. Dang Thi Uyen Thao
 Information needed
• Secondary data consists of information
that already exists somewhere, having
been collected for another purpose
• Primary data consists of information
gathered for the special research plan

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Advantages
• Cost
• Speed
• Could not get data
Secondary otherwise

Data Disadvantages
• Current
• Relevant
• Accuracy
• Impartial
Principle of Marketing_ Ms. Dang Thi Uyen Thao
 Secondary Data

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Advantages

• Answer specific questions

• Current
Primary •
•
Known source
Solve problems of secondary

Data
Disadvantages

• Costly
• Piggybacking
Principle of Marketing_ Ms. Dang Thi Uyen Thao
 Research approaches

PRIMARY Contact methods

DATA
Sampling plan
COLLECTION
Research instruments

Principle of Marketing_ Ms. Dang Thi Uyen Thao

Research Contact Sampling
Instruments
approach method plan

Observational
research Mail Probability Questionnaires

Ethnographic Non-
research Telephone probability

Experimental
research Personal

Survey
research Online
Principle of Marketing_ Ms. Dang Thi Uyen Thao
 Research Approaches

• Observational research involves gathering primary

data by observing relevant people, actions, and
situations
• Observational research can obtain information that
people are unwilling or unable to provide
• Observations can be very difficult to interpret

Principle of Marketing_ Ms. Dang Thi Uyen Thao

Principle of Marketing_ Ms. Dang Thi Uyen Thao
 Research Approaches
• Ethnographic research involves sending trained
observers to watch and interact with consumers in their
natural environment

• Experimental research is best for gathering causal

information—cause-and-effect relationships

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Ethnographic research
Involves sending trained observers to watch and interact with
consumers in their natural environment

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Experimental research

Conclusion?

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Research Approaches
Survey research- gathering primary data by asking people
questions about their attitudes, preferences, and buying
behavior.
• the most widely used method and is best for descriptive
information
• Flexible
• People can be unable or unwilling to answer
• Gives misleading or pleasing answers
• Privacy concerns
Principle of Marketing_ Ms. Dang Thi Uyen Thao
Principle of Marketing_ Ms. Dang Thi Uyen Thao
Principle of Marketing_ Ms. Dang Thi Uyen Thao
 Contact methods
Mail Telephone Personal Online
Flexibility Poor Good Excellent Good
Quantity of data collected Good Fair Excellent Good

Control of interviewer effects Excellent Fair Poor Fair

Control of sample Fair Excellent Good Excellent

Speed of data collection Poor Excellent Good Excellent

Response rate Poor Poor Good Good

Cost Good Fair Poor Excellent

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Sampling plan
Sample is a segment of the population selected for
marketing research to represent the population as a
whole

• Who is to be studied?
• How many people should be studied?
• How should the people be chosen?
Principle of Marketing_ Ms. Dang Thi Uyen Thao
 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 research 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

Principle of Marketing_ Ms. Dang Thi Uyen Thao

Principle of Marketing_ Ms. Dang Thi Uyen Thao
 Questionnaires
• Most common
• Administered in person, by phone, or online
• Flexible
• Research must be careful with wording and ordering of
questions
• Closed-end questions or open-end questions allow
respondents to answer in their own words (Useful in
exploratory research)
Principle of Marketing_ Ms. Dang Thi Uyen Thao
 Implementing the research plan

Collecting the information

Processing the information

Analyzing the information

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Interpreting and reporting the findings

Interpret findings

Draw conclusions

Report to management

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Analyzing and using information
Customer relationship management (CRM): Managing
detailed information about individual customers and carefully
managing customer touch points to maximize customer loyalty.

** Customer touch point: every contact between a customer

and a company
Principle of Marketing_ Ms. Dang Thi Uyen Thao
 Customer touch point
** Customer touch point: every contact between a customer and
a company

Principle of Marketing_ Ms. Dang Thi Uyen Thao