Chapter Four

Managing Marketing
Information to Gain
Customer Insights

Copyright © 2009 Pearson Education, Inc.  

Chapter 4- slide 1
Publishing as Prentice Hall
Learning Objectives

Topic Outline

 Assessing Marketing Information Needs

 Developing Marketing Information
 Marketing Research
 Analyzing Marketing Information
 Distributing and Using Marketing
Information
 Other Marketing Information
Considerations

Chapter 4- slide 2
 Marketing Information and Customer
Insights
Customer Insights are:

 Fresh and deep insights into customers needs

and wants
 Difficult to obtain
 Not obvious
 Customer’s unsure of their behavior
 Not derived from more information but better
information and more effective use of existing
information
Chapter 4- slide 3
 Marketing Information and Customer
Insights
Customer Insights

 Companies are forming customer insights teams

 Include all company functional areas
 Use insights to create more value for their customers
 Customer controlled could be a problem

Chapter 4- slide 4
 Marketing Information and Customer
Insights
Marketing Information Systems (MIS)

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

Chapter 4- slide 5
6

Chapter 4- slide 6
1. 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

Chapter 4- slide 7
 1. Assessing Marketing
Information Needs
Characteristics of a Good MIS
 Balancing what the information users would like to
have against what they need and what is feasible to
offer

User’s
Needs

MIS
Offerings

Chapter 4- slide 8
2. Developing Marketing Information

Marketers obtain information from

Marketing
Marketing
research
intelligence

Internal data
Developing
marketing
information

Chapter 4- slide 9
2. Developing Marketing Information

1. Internal Data

Internal databases are electronic collections of

consumer and market information obtained from
data sources within the company network
f
Sources o
on
informati
ting
Marke nt Consumer Sales
ep a r tme characteristics transactions Web s
d
es ite
furnish n visits
atio
inform

Chapter 4- slide 10
2. Developing Marketing Information

2. Marketing Intelligence

Marketing intelligence is the systematic

collection and analysis of publicly
available information about consumers,
competitors, and developments in the
marketplace

Chapter 4- slide 11
12

Chapter 4- slide 12
2. Developing Marketing Information

3. Marketing Research

 Marketing research is the systematic

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

Chapter 4- slide 13
14
McDonald’s
McDonald’s is one of the largest fast food chains in the world. In order
to continue this trend, McDonald’s uses ongoing market research.

In their market research, they have narrowed their focus onto four
different questions. 1.) Which products are well received? 2.) What
prices are consumers willing to pay? 3.) What TV programs,
newspapers and advertising consumers read and view? 4.) Which
restaurants are most visited?

By answering these questions, McDonald’s is able to determine

whether the pool of their target customers is growing or not.

One of the problems addressed by this research was if McDonald’s

was serving healthy or organic food. As a result, the company has
launched a campaign to prove that their meat is real. They also have
changed part of their menu to include healthier alternatives, such as
apple slices Chapter 4- slide 14
2. Developing Marketing Information

Marketing Research
1. Defining the Problem and Research Objectives

Exploratory research

Descriptive research

Causal research
Chapter 4- slide 15
 Marketing Research
1. Defining the Problem and Research Objectives

Exploratory research

Exploratory research is a type of research conducted for a

problem that has not been clearly defined.

• It is used to gather preliminary information that will define

problems more accurately.

• Examples:
• Declining of sales
• High employees turnover
• Lack of support from
external partners
• High failure rate at Sukkur IBA etc Chapter 4- slide 16
 Marketing Research
1. Defining the Problem and Research Objectives

Descriptive research
• Descriptive research refers to research which better
describe marketing problems, situations or markets.
Descriptive research, also known as statistical research.

• Example:
• Lifestyle characteristics of your product users
• Demographics of any region
• Usage pattern and expectation of target market from
your product.
• Sales potential of any area or target market. etc

Chapter 4- slide 17
 Marketing Research
1. Defining the Problem and Research Objectives

Causal research

 Causal / Experimental research Marketing

research to test hypothesis about cause and effect
relationships.
Example:
• Effect of increase or decrease in price on
product’s sales.
• Impact of giving incentives to resellers on
the shelf space.
• Effect of new packaging on consumer
behaviour. etc

Chapter 4- slide 18
2. Developing Marketing Information

Marketing Research
2. Developing the Research Plan

 Outlines sources of existing data

Primary Secondary

 Spells out the specific research approaches,

contact methods, sampling plans, and
instruments to gather data
Chapter 4- slide 19
2. Developing Marketing Information
Marketing Research
Data Collection Modes:
Secondary data consist of MARKETING RESEA
RCH AGENCIES
information that already
 FORESIGHT
exists somewhere, having RESEARCH (PVT.) L
TD
been collected for another . KARACHI
purpose  AFTAB ASSOCIATES
LAHORE
 IPSOS PAKISTAN
Primary data consist of ISLAMABAD
information gathered for  INTERNATIONAL FIE
LD &
the special research plan TAB LAHORE

Chapter 4- slide 20
2. Developing Marketing Information
Marketing Research
Secondary Data

Advantages Disadvantages

Cost Current

Speed Relevant

Could not get data

Accuracy
otherwise

Impartial
Chapter 4- slide 21
2. Developing Marketing Information
Marketing Research

Planning Primary Data Collection

Research approaches

Contact methods

Sampling plan

Research instruments
Chapter 4- slide 22
23

Chapter 4- slide 23
2. Developing Marketing Information
Market Research
Research Approaches
Observational research involves
gathering primary data by observing
relevant people, actions, and
situations

Ethnographic research involves

sending trained observers to watch
and interact with consumers in their
natural environment
Chapter 4- slide 24
2. Developing Marketing Information
Market Research
Research Approaches

Survey research is the most widely used

method and is best for descriptive
information—knowledge, attitudes,
preferences, and buying behavior
 Flexible
 People can be unable or
unwilling to answer
 Gives misleading or pleasing
answers
 Privacy concerns

Chapter 4- slide 25
2. Developing Marketing Information

Market Research
Research Approaches

 Experimental research It gathers primary

data by selecting matched groups of subjects,
giving them different treatments, controlling
related factors, and checking for differences in
group responses.

Chapter 4- slide 26
Developing Marketing Information

Marketing Research
Contact Methods

Chapter 4- slide 27
 Developing Marketing Information

Marketing Research
Contact Methods

 Focus Groups
 Six to 10 people with a
trained moderator
 Challenges
 Expensive
 Difficult to generalize
from small group

Chapter 4- slide 28
Developing Marketing Information
Marketing Research
Contact Methods

Online Marketing Research

• The growth of the Internet has had a dramatic impact
on how marketing research is conducted.
• Increasingly, researchers are collecting primary data
through online marketing research: Internet surveys,
online panels, experiments, and online focus groups
and brand communities.
• The Internet is especially well suited to quantitative
research—for example, conducting marketing surveys
and collecting data.

Chapter 4- slide 29
Developing Marketing Information
Marketing Research
Online Research

Advantages Disadvantages
• Low cost • Restricted
• Speed internet access
• Higher response • Not sure who is
rates answering
• Good for hard to
reach groups

Chapter 4- slide 30
 Developing Marketing Information
Marketing Research
Sampling Plan

Sample is a segment of Three decisions of

designing sample:
the population selected
for marketing research who is to be studied
(what sampling unit)?
to represent the
population as a whole. how many people
should be included
(what sample size)?

how should the people in

the sample be chosen
(what sampling
Chapter 4- slide 31
procedure)?
Developing Marketing Information
Marketing Research
Research Instruments

Questionnaires
• Most common
• Administered in person, by phone, or
online
• Flexible
• Watch working and ordering of
questions
Chapter 4- slide 32
 Developing Marketing Information
Marketing Research
Research Instruments - Questionnaires

 Closed-end questions include all possible answers, and

subjects make choices among them
 Provide answers that are easier to interpret and tabulate
 Open-end questions allow respondents to answer in
their own words
 Useful in exploratory research

Chapter 4- slide 33
Developing Marketing Information
Marketing Research
Research Instruments

Checkout
scanners

Neuro-
People meters
marketing

Mechanical
devices

Chapter 4- slide 34
Developing Marketing Information
Marketing Research
Implementing the Research Plan

Collecting the information

Processing the information
Analyzing the information
Interpret findings
Draw conclusions
Report to management
Chapter 4- slide 35
 3. Analyzing Marketing Information
Customer Relationship Management (CRM)

 CRM consists of sophisticated software and

analytical tools that integrate customer information
from all sources, analyze it in depth, and apply the
results to build stronger customer relationships

Chapter 4- slide 36
Analyzing Marketing Information
Customer Relationship Management
Touchpoints

Customer Sales force Service and

Web site visits
purchases contacts support calls

Credit and
Satisfaction Research
payment
surveys studies
interactions

Chapter 4- slide 37
 Distributing and Using Marketing
Information

Information distribution involves entering information

into databases and making it available in a time-
useable manner
 Intranet provides information to employees and other
stakeholders
 Extranet provides information to key customers and
suppliers

Chapter 4- slide 38
 Other Marketing Information
Considerations

Marketing Research in Small Businesses and

Nonprofit Organizations

International Market Research

Public Policy and Ethics

• Customer privacy
• Misuse of research findings

Chapter 4- slide 39
Thanks
Chapter 4- slide 40