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PRINCIPLES OF MARKETING
Eighth Edition

Philip Kotler and Gary Armstrong

Chapter 4 Marketing Research and Information Systems

The Importance of Information

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Marketing Environment

Customer Needs

Why Information Is Needed

Strategic Planning

Competition

What is a Marketing Information System (MIS)?

Consists of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers. Function: Assess, Develop and Distribute Information.

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The Marketing Information System

Marketing Managers
Marketing Decisions and Communications Marketing Information System

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Distributing Information

Assessing Information Needs

Developing Information

Information Analysis

Internal Data

Marketing Research

Marketing Intelligence

Marketing Environment

Functions of a MIS: Assessing Information Needs

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Conduct Interviews and Determine What Information is Desired, Needed, and Feasible to Obtain.

Monitors Environment for Information Managers Should Have

Examine Cost/ Benefit of Desired Information

Functions of a MIS: Developing Information

Obtains Needed Information for Marketing Managers From the Following Sources
Internal Data
Collection of Information from Data Sources Within the Company From: Accounting, Sales Force, Marketing, Manufacturing, Sales

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Marketing Intelligence
Collection and Analysis of Publicly Available Information about Competitors and the Marketing Environment From: Employees, Suppliers, Customers, Competitors, Marketing Research Companies

Marketing Research
Design, Collection, Analysis, and Reporting of Data about a Situation

Functions of a MIS: Distributing Information

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Information Must be Distributed to the Right Managers at the Right Time.

Distributes Routine Information for Decision Making

Distributes Nonroutine Information for Special Situations

The Marketing Research Process

Defining the Problem and the Research Objectives

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Developing the Research Plan

Implementing the Research Plan

Interpreting and Reporting the Findings

Marketing Research Process

Step 1. Defining the Problem & Research Objectives

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Exploratory Research

Gathers preliminary information that will help define the problem and suggest hypotheses.

Descriptive Research

Describes things such as consumers attitudes and demographics or market potential for a product.

Causal Research

Test hypotheses about causeand-effect relationships.

Marketing Research Process

Step 2. Develop the Research Plan
Determine the Specific Information Needed Secondary
Information that has been previously collected.

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Primary
Information collected for the specific purpose at hand.

Both Must Be: Relevant Accurate Current Impartial

Primary Data Collection Process

Step 1. Research Approaches
Observational Research
Gathering data by observing people, actions and situations (Exploratory)

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Survey Research
Asking individuals about attitudes, preferences or buying behaviors (Descriptive)

Experimental Research
Using groups of people to determine cause-and-effect relationships (Causal)

Primary Data Collection Process

Step 2. Contact Methods

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Contact Methods
M a il F le x ib ility Q u a n tity o f D a ta C o lle c te d C o n tro l o f In te rv ie w e r C o n tro l o f S a m p le S p e e d o f D a ta C o lle c tio n R e s p o n s e R a te Cost Poor G ood E x c e lle n t F a ir Poor F a ir G ood T e le p h o n e G ood F a ir F a ir E x c e lle n t E x c e lle n t G ood F a ir P e rs o n a l E x c e lle n t E x c e lle n t Poor F a ir G ood G ood Poor O n lin e G ood G ood F a ir Poor E x c e lle n t G ood E x c e lle n t

Primary Data Collection Process

Step 3. Developing a Sampling Plan

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Probability or Non-probability sampling?

Who is to be surveyed?

Sample representative segment of the population

How should the sample be chosen? How many should be surveyed?

Primary Data Collection Process

Step 4. Research Instruments

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Research Instruments
Questionnaire
What

Mechanical Devices
People

to ask? Form of each question? Wording? Ordering?

Meters Grocery Scanners Galvanometer Tachistoscope

Marketing Research Process

Step 3. Implementing the Research Plan
Collection of Data Processing of Data Analyzing the Data

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Research Plan

Marketing Research Process

Step 4. Interpreting and Reporting Findings
Interpret the Findings Draw Conclusions Report to Management

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