CHAPTER EIGHT

Improving Decisions with Marketing Information

For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. 2008 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin

www.mhhe.com/fourps

When we finish this lecture you should

1. 2. 3. 4.

Know about marketing information systems. Understand the scientific approach to marketing research. Know about methods for collecting secondary and primary data. Understand the role of observing, questioning, and using experimental methods in marketing research.

Marketing Information Inputs to Marketing Strategy Planning Decisions (Exhibit 8-1)

Marketing information is needed to inform managers about all decisions made in the development of marketing strategy.

Marketing Information Inputs to Marketing Strategy Planning Decisions (Exhibit 8-1)

Information for marketing decisions
(My experience as a MR Consultant)

Marketing information systems Accessing multimedia data Data warehouse Decision support systems Marketing models

Marketing research Role of research specialist Scientific method Steps in marketing research 1.Define problem 2.Analyze situation 3.Gather problem-specific data 4.Interpret the data 5.Solve the problem

Changes Are Underway in Marketing Information Systems

e.g. Walmarts MIS is well known

MIS Makes Information Available and Accessible

Get More Information Faster and Easier

Marketing Managers Must Help Develop an MIS

An Intranet Is Easy to Update

Elements of a Complete Marketing Information System (Exhibit 8-2)

The Impact of an MIS

Information for Information for implementation, planning implementation, planning control and control

Why?
Many Firms Are Not There Yet

New Questions Require New Answers

Who Does the Work?

Effective Research Requires Cooperation

That marketing research geek doesnt understand my business she doesnt even know my competitors!

That overpaid Gen Y is clueless she doesnt even know how a chi-square is computed!

Collaboration Is Absolutely Necessary!

The Scientific Method and Marketing Research

(Exhibit 8-3)
Marketing Research process is Objective, Systematic, & can be tested

Defining the Problem Step 1

Most difficult to do but most important
Perform Situation audit

Finding the Right Problem Level

Problems vs. Symptoms

AIG example

Setting Research Objectives

Analyzing the Situation Step 2

What Information Do We Already Have?

Pick the Brains of People Around You

Situation Analysis Helps Educate a Researcher

Secondary and Primary Data (Exhibit 8-4)

The Bottom Line on Secondary Data

Key Issues

e.g. US Census Bureau

Situation Analysis A Lot For a Little

What Else Is Needed?

Research Proposal

Getting Problem-Specific Data Step 3

Observing

Questioning Asking people

Primary Data

Monitoring behaviors
Human or machine Costs coming down

Formal or informal Qualitative questioning is open-ended

Focus Groups Stimulate Discussion

Yellow Pages example

A Focus Group example

Click here
and theres on-line focus groups as well.

Structured Questioning Gives More Objective Results

Seeks structured responses
Can be summarized in numbers

Quantitative Research

Faster response & analysis

Surveys Come in Many Forms

Del Taco on-line survey Panda Express on-line survey

Mail and Online

Primary Methods for Collecting Survey Data

Personal Interview

Telephone

Observing What You See Is What You Get

Observation Is Common in Advertising Research

Checkout Scanners See a Lot

Consumer Panels

Experimental Method Controls Conditions

(Exhibit 8-5)

YouTube: Lipbalm

Mean (average) product rating by group

Interpreting the Data Step 4 (Exhibit 8-6)

Data analysis and interpretation follow data collection, and it answers the question, What does it really mean?

Key Concerns in Data Interpretation

Population

Sample

Key Issues

Validity

Confidence Intervals

Ethical Issues in Marketing Research

Withholding Information

Unauthorized Disclosure of Personalized Information

Disguised Sales Pitches

Lying with Statistics

Solving the Problem Step 5

In this last step of the research process, managers use the research results to make marketing decisions

Actionable Results

Lack of Impact?

Managers Need to Know About Research

Quality of Suppliers Is Variable Needed: Time, Forethought, Money

International Marketing Research

Research Contributes to Success

Use Local Researchers

Coordinate and Standardize

You now

1. 2. 3. 4.

Know about marketing information systems. Understand the scientific approach to marketing research. Know about methods for collecting secondary and primary data. Understand the role of observing, questioning, and using experimental methods in marketing research.

Key Terms

Marketing research Marketing information system (MIS) Intranet Data warehouse Decision support system (DSS) Search engine Marketing model Scientific method Hypotheses

Marketing research process Situation analysis Secondary data Primary data Research proposal Qualitative research Focus group interview Quantitative research Response rate Consumer panel

Key Terms

Experimental method Statistical packages Population Sample Confidence interval Validity