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MARKETING MANAGEMENT
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Unit II: Marketing Information System: Internal record System, Marketing Research System

THE NEED FOR INFORMATION

The marketing environment is changing at an accelerating rate. many business firms lack information sophistication. Many lack a marketing research department. Others have departments that limit work to routine forecasting, sales analysis, and occasional surveys. managers complain about not knowing where critical information is located in the company; getting too much information that they cant use and too little that they really need; getting important information too late; and doubting the informations accuracy.

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ITC USED EXTENSIVE MARKET RESEARCH BEFORE LAUNCHING THE SUNFEAST RANGE OF BISCUITS

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MARKETING INFORMATION SYSTEM

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 The information is developed through
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2. 3. 4.

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Internal company records Marketing intelligence activities Marketing research Marketing decision support analysis

1.INTERNAL COMPANY RECORDS

Marketing managers rely on internal reports on orders, sales, prices, costs, inventory, receivables and payables and so on to analyze the information and spot out opportunities and problems Internal company records

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The Order-to- payment cycle Sales Information Systems

2. MARKETING INTELLIGENCE ACTIVITIES

It supplies happenings data A marketing intelligence system is a set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment How marketing managers collect this information?

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Reading books Newspapers Trade publications talking to the customers and the suppliers and distributors Meeting with other company managers

STEPS TO IMPROVE THE QUALITY OF THE COMPANYS MARKETING INTELLIGENCE

it can train and motivate the sales force to spot and report new developments it can motivate distributors, retailers and other intermediaries to pass along important intelligence, companies hire specialists, mystery shoppers it can learn about competitors by purchasing their products, attending open houses and trade shows, reading competitor's published reports etc., it can setup a customer advisory panel made up of representative customers. Ex: Hitachi Data Systems- 3 day meeting every 9 months it can purchase information from outside suppliers It can establish marketing information center to collect and circulate marketing Intelligence.

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3.MARKETING RESEARCH (DEFINED)

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Systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing a company.
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MARKETING RESEARCH: DEFINITION

Many definitions of Marketing Research:

Marketing research is the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company. (Philip Kotler)
the systematic gathering, recording and analyzing of all data about problems relating to the marketing of goods and services. [The American Marketing Association]

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TYPES OF MARKETING RESEARCH FIRMS

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Syndicatedservice

Custom

Specialtyline

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TYPES OF MARKETING RESEARCH FIRMS

Syndicated-Service

research firms
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these firms gather consumer and trade information, which they sell for a fee ( IMRB,NORMA in Kerala)

Custom

Marketing Research Firms

these firms are hired to carry out specific projects design the study and report the findings

Specialty-line

Marketing Research Firms specialized research services like field service interviewing
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THE MARKETING RESEARCH PROCESS

Define the problem
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Develop research plan

Collect information
Analyze information Present findings

Make decision

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MARKETING RESEARCH ...

Can help the marketing manager to:
(1) Identify and define marketing problems and opportunities accurately;

Is important because of

(2) Understand markets and customers and offer reliable prediction about them;
(3) Develop marketing strategies and actions to provide a competitive edge; and refine and evaluate them; (4) Facilitate efficient expenditure of funds; (5) Monitor marketing performance; and (6)Improve the understanding of marketing as a process.

Rapid changing marketing environment; Need for up-to-date information for strategically important areas;

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Importance of research as an integral part of better operation.

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THE MARKETING RESEARCH PROCESS

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Defining the problem and research objectives

Developing the research plan for collecting information

Implementing the research plan -- collecting and analyzing the data

Interpreting and reporting the findings

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STEP 1: DEFINE THE PROBLEM

Define the problem Specify decision alternatives State research objectives

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STEP 1: DEFINE THE RESEARCH PROBLEM I

The very first, and the most important step in research: A problem well-defined is half solved Nature of the problem determines the type of study to conduct. Symptoms, for example, declining sales, profit, market share, or customer loyalty are not problems. A research problem must be accurately and precisely defined, otherwise the task of designing a good research is difficult. Marketing problems may be difficulty-related or opportunityrelated. For both, the prerequisite of defining the problem is to identify and diagnose it.

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Conduct situation analysis. It provides the basic motivation and momentum for further research.
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STEP 1: DEFINE THE RESEARCH PROBLEM II

Get the right answer to the question: What exactly does the firm want (or need) to know? The basic question to address is: How to know that there is a problem? Problems may become apparent from:

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deviation from the business plan, company records and reports, customer complaints and grievances, conversations with company employees, and observation of inappropriate behavior or conditions in the firm; the success of the firms competitors, and published materials reporting issues such as, changes in market or environmental trends, new government regulations, anticipated changes in the economy, etc.

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STEP 1: DEFINE THE RESEARCH PROBLEM III

Once the symptoms of a problem are detected..

Conduct some initial fact finding to determine the nature of the true problem. Talk to others about the problem and conducting a preliminary literature search on the topic.

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In the initial stage, a problem may be recognized in a very broad and general form only. This may restrict the research program from being comprehensively designed.

Both the researcher and the marketing manager (or the research client ) need to work together to formulate the problem into a precise and definite statement.
This fact-finding exercise helps the researcher to refine his educated guess to a more accurate problem statement.

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MARKETING RESEARCH PROCESS

STEP 1. DEFINING THE PROBLEM & RESEARCH OBJECTIVES
Exploratory Research Descriptive Research Causal Research
Gathers preliminary information that will help define the problem and suggest hypotheses. Describes things as market potential for a product or the demographics and consumers attitudes.
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Test hypotheses about causeand-effect relationships.

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STEP 2: DEVELOP THE RESEARCH PLAN

Data Sources Research Instruments Contact Methods
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Research Approach Sampling Plan

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STEP 2. DEVELOP THE RESEARCH PLAN

1.DATA SOURCES
Both Must Be: Information That Already Exists Somewhere. + Obtained More Quickly, Lower Cost. Relevant Accurate Current Impartial
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Information Collected for the Specific Purpose at Hand.

- Might Not be Usable Data.

STEP 2. DEVELOP THE RESEARCH PLAN

2. Research Approaches primary data can be collected in 5 ways

Observational research: researchers can gather fresh data by observing the relevant actors and settings, as they shop or consume products. Equip pagers Informal interview sessions Photographs Ethnographic Research: it's a type of observational research approach that uses concepts and tools from anthropology and other social science disciplines to provide deep understanding of how people live and work Immerse the researcher into the consumers lives to uncover unarticulated desires that might not surface in any other form of research Focus group research Behavioral research Survey research Experimental research

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STEP 2. DEVELOP THE RESEARCH PLAN

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PLANNING PRIMARY DATA COLLECTION

Observational Research
Gathering data by observing people, actions and situations (Exploratory)

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

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

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RESEARCH APPROACHES
Observation

Ethnographic
Focus Group Survey

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Behavioral Data
Experimentation
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3.RESEARCH INSTRUMENTS
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Questionnaires Qualitative Measures Technological Devices

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QUESTIONNAIRE DOS AND DONTS

Ensure questions are free of bias Make questions simple Make questions specific Avoid jargon Avoid sophisticated words Avoid ambiguous words

Avoid negatives Avoid hypotheticals Avoid words that could be misheard Use response bands Use mutually exclusive categories Allow for other in fixed response questions

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QUESTION TYPESDICHOTOMOUS
In arranging this trip, did you contact American Airlines?
Yes No
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QUESTION TYPESMULTIPLE CHOICE

With whom are you traveling on this trip?

No one
Spouse Spouse and children Children only Business associates/friends/relatives An organized tour group

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QUESTION TYPESLIKERT SCALE

Indicate your level of agreement with the following statement: Small airlines generally give better service than large ones. Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree
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QUESTION TYPESSEMANTIC DIFFERENTIAL

American Airlines Large ....Small Experienced..Inexperienced
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Modern...Old-fashioned

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QUESTION TYPESIMPORTANCE SCALE

Airline food service is _____ to me. Extremely important Very important Somewhat important Not very important Not at all important
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QUESTION TYPESRATING SCALE

American Airlines food service is _____. Excellent Very good Good Fair Poor
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QUESTION TYPES INTENTION TO BUY SCALE

How likely are you to purchase tickets on American Airlines if in-flight Internet access were available? Definitely buy

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Probably buy
Not sure

Probably not buy

Definitely not buy
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QUESTION TYPESCOMPLETELY UNSTRUCTURED

What is your opinion of American Airlines?
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QUESTION TYPESWORD ASSOCIATION

What is the first word that comes to your mind when you hear the following? Airline ________________________ American _____________________

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Travel ________________________

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QUESTION TYPES SENTENCE COMPLETION

When I choose an airline, the most important consideration in my decision is: _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ __________________.

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QUESTION TYPESSTORY COMPLETION

I flew American a few days ago. I noticed that the exterior and interior of the plane had very bright colors. This aroused in me the following thoughts and feelings. Now complete the story. _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________

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QUESTION TYPESPICTURE (EMPTY BALLOONS)

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QUESTION TYPESTHEMATIC APPERCEPTION TEST

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Make up a story that reflects what you think is happening in this picture.

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QUALITATIVE MEASURES
Word Association
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Projective Techniques

Visualization
Brand Personification

Laddering
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TECHNOLOGICAL DEVICES
Galvanometers
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Tachistoscope Eye cameras Audiometers GPS

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NIELSEN OUTDOOR LEVERAGES GPS TO TRACK BILLBOARD REACH

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4. SAMPLING PLAN

Sampling unit: Who is to be surveyed? Sample size: How many people should be surveyed? Sampling procedure: How should the respondents be chosen?

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TABLE 4.2 TYPES OF SAMPLES

Probability Samples Simple random Stratified random Cluster Nonprobability Samples Convenience Judgment Quota

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4. CONTACT METHODS
Mail Questionnaire
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Telephone Interview Personal Interview Online Interview

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PROS AND CONS OF ONLINE RESEARCH

Advantages Inexpensive Fast Accuracy of data, even for sensitive questions Versatility Disadvantages Small samples Skewed samples Technological problems Inconsistencies

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STEP 2. DEVELOP THE RESEARCH PLAN

3. Research Instruments
Questionnaires Close- end Questions Open- end Questions Mechanical devices Galvanometers Tachistoscope Eye cameras Audio meter

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STEP 2. DEVELOP THE RESEARCH PLAN

4. SAMPLING PLAN
Probability or Non-probability sampling?

Sampling Plans
Sample representative segment of the population

Who is to be surveyed? (What Sampling Unit?)

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How should the sample be chosen?( Sampling Procedure)

How many should be surveyed? (Sample Size)

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STEP 2. DEVELOP THE RESEARCH PLAN 5. CONTACT METHODS

Mail Flexibility Quantity of Data Collected Control of Interviewer Control of Sample Speed of Data Collection Response Rate Cost Poor Good Telephone Good Fair Personal Excellent Excellent Poor Fair Good Good Poor Online
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Good Good Fair Poor

Excellent Fair Fair Poor Fair Good Excellent Excellent Good Fair

Excellent Good Excellent

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STEP 3. COLLECT THE INFORMATION

Most expensive and most prone to error 4 major problems arise

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Will not be at home Refuse to cooperate Biased or dishonest Interviews will be biased and dishonest

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STEP 4 ANALYSE THE INFORMATION

The raw research data needs to be edited, tabulated and analyzed to find the results and to interpret them.

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the method used may be manual or computer based. The analysis plan follows from the research objective of the study. Association and relationships of variables are identified and discussed in the light of the specific marketing problem.

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STEP 5 PRESENT THE FINDINGS

Researcher Should Present Important Findings that are Useful in the Major Decisions Faced by Management.

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Step 1. Interpret the Findings

Step 2. Draw Conclusions Step 3. Report to Management

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CHARACTERISTICS OF GOOD MARKETING RESEARCH

Scientific method

Research creativity Multiple methods Interdependence Value and cost of information Healthy skepticism Ethical marketing