Chp 4 managing information to gain customer insights

Copyright © 2015 Pearson Education, Inc.

Learning Objectives

• Explain the importance of information in gaining insights about the marketplace and customers.

• Define the marketing information system and discuss its parts.

• Outline the steps in the marketing research process.

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Learning Objectives

• Explain how companies analyze and use marketing information.

• Discuss the special issues some marketing researchers face, including public policy and ethics issues.

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First Stop: Pepsi’s Marketing Insight

• Problem–The brand positioning of PepsiCo’s flagship cola brand needed to change.

• Approach–Global consumer research effort• Interpretations –PepsiCo lost sight of what it

stands for and its role in customers’ lives.• Solution–New global marketing campaign• Result–A worldwide appeal brought back the

roots of what Pepsi is all about.

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Marketing Information

• Consumer needs and motives for buying are difficult to determine.• Required by companies to obtain customer and

market insights

• Generated in great quantities with the help of information technology and online sources

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Customer Insight

• Fresh understanding of customers and the market derived from marketing information• Becomes the basis for creating customer value

and relationship

• Used to develop a competitive advantage• Customer insights teams–Formed to obtain

real value of marketing research and marketing information

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Marketing Information System (MIS)

• Consists of people and procedures to:• Assess information needs• Develop the needed information• Help decision makers to use the information to

generate and validate actionable customer and market insights

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Figure 4.1 - The Marketing Information System

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Assessing Marketing Information Needs

• A good MIS balances the information users would like to have against:• What they really need• What is feasible to offer

• Obtaining, analyzing, storing, and delivering information using an MIS is expensive.• Firms must decide whether the value of the

insights gained from more information is worth the cost.

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Developing Marketing Information

• Information needed can be obtained from:• Internal databases• Competitive marketing intelligence• Marketing research

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Internal Databases

• Electronic collections of consumer and market information within a company’s network

• Advantage: Information can be accessed quickly and economically.

• Disadvantages:• Data ages rapidly and may be incomplete.• Maintenance and storage of data is expensive.

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Competitive Marketing Intelligence

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Competitive Marketing Intelligence

• Advantages: • Gain insights about consumer opinions and their

association with the brand• Gain early warnings of competitor strategies,

new product launches or changing markets, and potential competitive strengths and weaknesses

• Help firms to protect their own information

• Disadvantage:• May involve ethical issues

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Marketing Research

• Systematic design, collection, analysis, and reporting of data• Relevant to a specific marketing situation facing

an organization

• Approaches followed by firms:• Use own research departments• Hire outside research specialists• Purchase data collected by outside firms

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Figure 4.2 - The Marketing Research Process

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Defining the Problem and Research Objectives

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Research Plan

• Outlines sources of existing data • Spells out:

• Specific research approaches• Contact methods• Sampling plans• Instruments that researchers will use to gather

new data

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Research Plan

• Should be presented in a written proposal• Topics covered in a research plan:

• Management problems and research objectives• Information to be obtained• How the results will help management’s decision

making• Estimated research costs• Type of data required

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Secondary Data

• Information that already exists• Collected for another purpose

• Sources:• Company’s internal database• Purchased from outside suppliers• Commercial online databases• Internet search engines

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Secondary Data

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Primary Data

• Information collected for the specific purpose at hand

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Table 4.1 - Planning Primary Data Collection

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Research Approaches

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Mail, Telephone, and Personal Interviewing

• Mail questionnaires are used to collect large amounts of information at a low cost per respondent.

• Telephone interviewing gathers information quickly, while providing flexibility.

• Personal interviewing methods:• Individual interviewing• Group interviewing

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Table 4.2 - Strengths and Weaknesses of Contact Methods

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Online Marketing Research

• Data is collected through:• Internet surveys• Online focus groups: Focus group interviewing

conducted online• Web-based experiments• Tracking consumers’ online behavior

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Online Behavioral & Social Tracking and Targeting

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Sampling Plan

• Sample: Segment of the population selected to represent the population as a whole

• Decisions required for sampling design:• Sampling unit - People to be studied• Sample size - Number of people to be studied• Sampling procedure - Method of choosing the

people to be studied

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Types of Samples

• Probability samples:• Simple random sample• Stratified random sample• Cluster (area) sample

• Nonprobability samples:• Convenience sample• Judgment sample• Quota sample

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Research Instruments

• Questionnaires can be administered in person, by phone, by e-mail, or online.• Closed-end questions• Open-end questions

• Mechanical instruments include:• People meters• Checkout scanners• Neuromarketing

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Implementing the Research Plan

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Interpreting and Reporting Findings

• Responsibilities of the market researcher: • Interpret the findings• Draw conclusions• Report findings to management

• Responsibilities of managers and researchers:• Work together closely when interpreting

research results• Share responsibility for the research process and

resulting decisions

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Customer Relationship Management (CRM)

• Managing detailed information about individual customers

• Carefully managing customer touch points to maximize customer loyalty

• Consists of software and analytical tools that:• Integrate customer information from all sources• Analyze data in depth• Apply the results

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Distributing and Using Marketing Information

• MIS must make information readily available for decision-making.• Routine information for decision making• Non-routine information for special situations

• Intranets and extranets facilitate the information sharing process.

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Marketing Research in Small Businesses and Nonprofit Organizations

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International Marketing Research

• The problems faced include:• Dealing with diverse markets• Finding good secondary data in foreign markets• Developing good samples • Reaching respondents • Handling differences in culture, language, and

attitudes toward marketing research

• The cost of research is high but the cost of not doing it is higher.

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Intrusions on Consumer Privacy

• Failure to address privacy issues results in:• Angry, less cooperative consumers • Increased government intervention

• Best approach for researchers:• Asking only for the information they need• Using the information responsibly to provide

customer value• Avoiding sharing the information without the

customer’s permission

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Misuse of Research Findings

• Few advertisers rig their research designs or deliberately misrepresent the findings.

• Solutions:• Development of codes of research ethics and

standards of conduct• Companies must accept responsibility to protect

consumers’ best interests and their own.

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Learning Objectives

• Explain the importance of information in gaining insights about the marketplace and customers.

• Define the marketing information system and discuss its parts.

• Outline the steps in the marketing research process.

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Learning Objectives

• Explain how companies analyze and use marketing information.

• Discuss the special issues some marketing researchers face, including public policy and ethics issues.

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Copyright © 2015 Pearson Education, Inc.Copyright © 2015 Pearson Education, Inc.

Chp 4 managing information to gain customer insights

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