4.06 Acquire foundational knowledge of marketing-

information management tounderstand its nature and scope

Market information management (MIM)•The process of gathering, sorting, analyzing and disseminating marketing information for businesses to make daily business decisions

Describe the need of marketing information.•Marketing research is important to

businesses because it contributes to business success because the marketing environment is constantly changing. .

•By surveying customers, a business could determine the location of the company’s market.

•The benefits of using the information should be greater than the expense of gathering the data used to generate this information

Classify types of marketing information as primary or secondary.

– Primary is information the company collects directly from its own surveys – first time collected; expensive

– Secondary is information the company collects from other sources. (libraries, online, Federal publications, etc.) – desk research – already exists. An advantage of secondary data is it is less expensive to collect than primary data.

Primary Research

• First hand information

• Expensive to collect, analyse and evaluate

• Can be highly focussed and relevant

• Care needs to be taken with the approach and methodology to ensure accuracy

• Types of question – closed – limited information gained; open – useful information but difficult to analyse

Sources of primary research:

Internal Sources

• Internal Reports – sales reports– Inventory records

• Retail data– daily sales – loyalty cards

External Sources

• Government Statistics– census data

• Trade publications• Commercial Data• Magazine surveys• Other firms’ research

Who uses marketing research?

• Marketing research may be formal or informal

• Marketing research may be internal or external

• Depending on the size of the business it may be done in house (internal department) or outsourced (hire an expert)

• Government, opinion polls, associations and businesses use marketing research

http://www.hulu.com/watch/46559

4.06 Acquire foundational knowledge of marketing-

information management tounderstand its nature and scope

Technology

• Identify ways that the use of technology impacts the marketing-information management function.– Makes it easier to collect and store certain

information– Information can be analyzed using

specialized software– Many more details can be tracked

MIMS and CRMS

•Marketing-information management system

•an organized way of continuously gathering, sorting, analyzing, evaluating, and distributing marketing information.

MIMS and CRMS

•Customer Relationship Management (CRM)

•using computerized databases to sort and organize information about customers’ purchases & brand preferences.

•tracks the amount spent in order to determine the number of times the users buys a product.

• CRM also helps a business build strong, loyal customer relationships by rewarding repeat business.

Database• Database: Different database softwares

are available so that businesses can retrieve current customer and internal mktg information from a central location.

• Data analysis software: Specialized software allows data to be analyzed properly– Can be set up to give the information in a

specified format– Software that decision makers can use

with minimum training

Types of marketing research objectives.• Quantitative – based on numbers

(surveys – tracking, experiments)– 56% of 18 year olds drink alcohol at least

four times a week – doesn’t tell you why, when, how

• Qualitative – more detail. Is intended to obtain detailed data about customers’ opinions and experiences. (personal interviews, focus groups, observational research)– tells you why, when and how!

Options for selecting sample groups to participate in a survey:

•Random Sampling: occurs when a random group of participants is selected. Ex: selecting a sample group of any high schooler to participate in the survey.

•Simple sampling: is used when you limit the sample to getting feedback from a select group of people only. Ex: Only senior business students may participate in the survey.

▫Stratified Random Sampling - dividing the population into subgroups based on variables known about those subgroups, and then taking a simple random sample of each subgroup

▫Cluster Sampling -useful for those who know little about the population they’re studying. First, the researcher would divide the population into clusters (usually geographic boundaries). Then, the researcher randomly samples the clusters

Sampling errors include:

▫Non-response: not enough surveys are returned

▫Interviewer bias: the interviewer interjects his/her opinions into the survey

▫Chance: when every result is the same

http://www.hulu.com/watch/46559

4.12 & 4.13 - Understand data-collection methods to evaluate their appropriateness for the

research problem/issue.

Types of surveys

•A balanced survey: survey in which respondents are provided the same number of favorable and unfavorable rating options.

•Survey with a semantic differential scale: When using a scale such as a seven-point rating system with opposite adjectives on each end of the scale.

EX: On the scale of 1-7 rate factor X, with 1 being poor and 7 being excellent.

Types of surveys….continuedMail surveys : use questionnaires as a

common method of collecting research data. Potentially sensitive questions should be asked toward the end of an interview.Adv: Cheap, cover lots of customers, can be

thoroughDisadv:1. Poor return rate, customer can’t ask

for clarification2. Ill-designed questionnaires can decrease the response rate.

Point-of-purchase displays :The scanners used in the checkout of a store. When the bar code labels are scanned data is automatically collected. This method of data collection is volume-tracking scanner.

Discussion groups

– Adv: Multiple opinions can be collected at once, simultaneously test individual thoughts and group opinions

– Disad: The group can influence the opinions and answers of individuals

Personal interviews– Allow to get customer opinion with high

flexibility

– Can clarify questions, read body language

– Interviewers must be open, friendly, and non-judgmental.

– Interviews must ask sensitive questions towards the end of the interview

•Observation is the most appropriate data-collection method to use when a business wants to record variety of behavior . Ex: to determine how its employees interact with customers. Advantages (A): Limits introduction of bias,

customer isn’t being interfered with by the observer, unstructured allows for recording of variety of behaviors.

Disadvantages (D): The observer doesn’t know why the customer has made the choice, no option for clarification.

Telephone data-collection surveys: Adv: Cheap, can ask for clarification to an

answerDisad: People often won’t participate, can’t read

body language

• Distinguish between continuous and itemized rating scales.

– Continuous: Respondent makes a mark at the appropriate position on a line, no comparison standard it given

– Itemized: scale has a number or brief description associated with each category. Categories are ordered and respondent is required to select the category that best describes the object being ranked

Discuss types of itemized rating scales

• Likert– A rating scale that allows marketing

researchers to determine respondent's feelings. numerical values associated with each possible answer

• Semantic Differential Scale – Uses a scale such as a seven-point rating

system with opposite adjectives on each end of the scale.

– The respondent marks a category along the rating continuum (usually 1 to 7)

CONT.• Stapel Scale– differs from semantic by using just one

term and then sets a scale for rating the appropriateness of that term (usually -5 to +5 with no zero)

• Multi-Dimensional– used when difficult to measure attitude

based on only one attribute. Used when it is impossible to capture the complete picture with one overall question.

http://www.hulu.com/watch/46559