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Managing Marketing Information
Chapter 6
Powerpoint slides
Extendit! version


I nstructor name
Course name
School name
Date
Principles of Marketing: 6th Canadian Edition
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Principles of Marketing: 6th Canadian Edition
6.2
Learning Objectives
After studying this chapter, you should be able to:
Explain the importance of information to the company
Define the marketing information system and discuss its parts
Outline the four steps in the
marketing research process
Explain how companies analyze and
distribute marketing information
Discuss the special issues some
marketing researchers face,
including public policy and ethics
issues
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Principles of Marketing: 6th Canadian Edition
6.3
Opening Vignette: The New Coke Debacle
Coca-Cola began over 100 years, one of the worlds best known and
valuable brands
Dont mess with Mother Coke ignored in 1985, when the original
formulation was changed
Poor marketing research blamed
Two years, and $7.8 million spent on taste
testing proved that consumers like the taste
of new Coke better than Pepsi and
existing Coke
Research dealt only with taste, did not
explore consumers attachment to the
product, and all of its intangibles
Coke Classic quickly introduced, new
Coke quietly fades into the background
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Principles of Marketing: 6th Canadian Edition
6.4
Why Marketing Information?
The marketing concept:
Achieve organizational objectives by
Determining needs and wants of target consumers
Delivering satisfaction
Better than competitors
To successfully practice the
marketing concept, marketers
need information,
To properly determine:
Environmental changes
What customers want, and
What the competition is
doing
Figure 1.3
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Principles of Marketing: 6th Canadian Edition
6.5
The Marketing Information System
People, equipment,
and procedures
To gather, sort,
analyze, evaluate,
and distribute
Needed, timely, and
accurate
information to
marketing decision
makers
Figure 6.1
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Principles of Marketing: 6th Canadian Edition
6.6
The Marketing Information System
Assessing information needs:
Remember, the objective is to make better marketing decisions
Must consider needs of all users
Must balance information wants
with decision making needs and
feasibility (and costs) of offering it
The value of information comes
from its use, not its existence
Developing information:
Internal data
Marketing intelligence (on
competitors) (
Marketing research (design,
collection, analysis, reporting)
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Principles of Marketing: 6th Canadian Edition
6.7
Developing Information
Internal data:
Information collected from different sources within the company,
and stored within the organizations information system
Accounting system
Operations/production
Sales reporting system
Past research studies
Internal data is cheap, quick, and easy
May not be in a usable form for the
decision to be made
May be too much information to sort
through

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Principles of Marketing: 6th Canadian Edition
6.8
Developing Information
Marketing intelligence:
Systematic collection and analysis of publicly
available information about competitors and market
developments
Proactive approach to
keeping track of what is
going on within the
organizations marketing
environment
Sources: employees,
customers, trade shows,
websites, marketing
communications, suppliers,
resellers, professional
information services, and
dumpster diving


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Principles of Marketing: 6th Canadian Edition
6.9
The Marketing Research Process
Marketing research:
Systematic design, collection, analysis, and reporting data relevant
to a specific marketing situation facing the organization
A multi-step, purpose-driven process
Measure effectiveness of marketing actions, sales potential, try
to understand consumer behaviour, customer needs, distribution
systems
Can be done by company personnel or contracted out to outside
companies
Figure 6.2
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Principles of Marketing: 6th Canadian Edition
6.10
The Marketing Research Process (continued)
Defining the problem
Helps to know what you are looking for!
Can be the most difficult step in the process
Need to scope the project large enough in order to understand what
really causes the problem. It can be done through:


Figure 6.2
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Principles of Marketing: 6th Canadian Edition
6.11
The Marketing Research Process (continued)
Objectives of research
Exploratory research:
Research conducted to gather information to help better define problems and
opportunities
Secondary research, focus group discussions and depth interviews are
commonly used for this purpose

Descriptive research:
Research conducted to better describe marketing problems, situations, or
markets, such as
Demographic characteristics of markets, attitudes of consumers, and market
potential for a product
Surveys and personal interviews are commonly used
Causal research:
Research to test cause and effect relationships between variables of
interest, such as experiments
Figure 6.2
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Principles of Marketing: 6th Canadian Edition
6.12
The Marketing Research Process (continued)
Developing the research plan:
Translating the research objectives into specific information needs
Research plan presented in a written proposal for approval

Gathering data
Secondary data: information that already exists, having been
collected for another purpose
Internal data, academic, and commercial sources
Faster and cheaper than primary data collection, but may not
be in a suitable form for decision making
Helps to see what work has already been done in the area
Primary data collection:
Information collected for the specific purpose
Must look for relevance, accuracy, current, and unbiased

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Principles of Marketing: 6th Canadian Edition
6.13
Selected External Information Sources
Business data:
Scotts directories
Canadian trade index
AC Nielson
Information Resources Inc.
Dun & Bradstreet
Dialog
LEXIS-NEXIS
Dow Jones Interactive
Hoovers Online
CNN
Marketing journals
Trade publications
General business magazines
Government data:
Statistics Canada
Industry Canada Strategis
SEDAR
Securities and Exchange
Commission
Stat-USA
Internet data:
CyberAtlas
Internet Advertising Bureau
Jupiter Media Metrix
Source: Table 6.1
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Principles of Marketing: 6th Canadian Edition
6.14
The Marketing Research Process (continued)
Primary data collection methods
Observational research:
Gathering of primary data by strictly observing relevant
people, actions, and situations
Ethnographic research combines observation with
interviews to get a better insight
Mechanical observation: scanner data
Useful but difficult to ascertain feelings, attitudes, or
motives
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Principles of Marketing: 6th Canadian Edition
6.15
The Marketing Research Process (continued)
Survey research:
Gathering primary data by asking people questions
Good to know about peoples knowledge, attitudes, preferences,
and buying behaviour
Best suited for gathering descriptive information
Single-source data systems:
Electronic monitoring systems that link exposure to various marketing
activities through advertising (using meters) and what they buy in
stores (checkout scanners)
Survey research is flexible but may suffer bias due to self-reporting or
lack of understanding of what is being asked
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Principles of Marketing: 6th Canadian Edition
6.16
The Marketing Research Process (continued)
Experimental research:
Gathering primary data by selecting matched groups of subjects
Giving them different treatments
Controlling unrelated factors
Checking for differences in group responses
Experimental research is used when attempting to explain cause and
effect relationships
Difficult to control for all situations or variables that have an
influence on behaviour
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Principles of Marketing: 6th Canadian Edition
6.17
Contact Methods
Source: Adapted with permission from Marketing Research: Measurement and Method,
7th ed., by D.S. Tull and D.I. Hawkins, MacMillan Publishing Company, 1993
Table 6.3
Mail Telephone Personal Online
Flexibility Poor Good Excellent Good
Quantity of data collected Good Fair Excellent Good
Control of interviewer effect Excellent Fair Poor Fair
Control of sample Fair Excellent Fair Poor
Speed of data collection Poor Excellent Good Excellent
Response rate Poor Good Good Good
Cost Good Fair Poor Excellent
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Principles of Marketing: 6th Canadian Edition
6.18
The Marketing Research Process (continued)
Sample:
A segment of the population selected for marketing research
To represent the population as a whole
Who should be surveyed? Sampling unit
How many should be surveyed? Sample size
How should they be chosen? Sampling procedure
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Principles of Marketing: 6th Canadian Edition
6.19
The Marketing Research Process (continued)
Research instruments:
Questionnaires are the most commonly used
Mechanical devices are the other option
Questions asked can be open or closed
Writing good (valid) questions can be difficult
Wording and
order are
important
Pre-testing is
important to
ensure good
results
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Principles of Marketing: 6th Canadian Edition
6.20
The Marketing Research Process (continued)
Implementing the research plan:
Collecting, processing, and analyzing the information
Data collection is expensive and most subject to error
Field work needs to be supervised to ensure accuracy
Interpreting the results:
Attempting to find meaning to the data collected
Need to be careful to avoid bias in interpretation; getting the
answer that was favored in the beginning or that suits a particular
political agenda (Challenging a report made by a coworker)
Figure 6.2
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Principles of Marketing: 6th Canadian Edition
6.21
Customer Relationship Management
Customer relationship management (CRM):
Managing detailed information about individual
customers at all touch pointst to maximize customer
loyalty through a better servicing (Bell, Banks)

Use data warehouses and use
datamining techniques to dig out
relevant information
Purpose is to make better use of the
information the company already
has
The goal is to provide higher levels
of customer service
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Principles of Marketing: 6th Canadian Edition
6.22
Other Marketing Research Considerations
Research in small businesses and non-profit
organizations
International marketing research
Public policy and ethics in
marketing research:
Privacy of information
Selling under the guise of
conducting research activities
Misuse of research findings for
promotional purposes
Acceptable lies and non acceptable
ones
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Principles of Marketing: 6th Canadian Edition
6.23
In Conclusion
The learning objectives for this chapter were:
Explain the importance of information to the company
Define the marketing information system and discuss its parts
Outline the four steps in the
marketing research process
Explain how companies analyze and
distribute marketing information
Discuss the special issues some
marketing researchers face,
including public policy and ethics
issues