Chapter 7 IMPROVING DECISIONS WITH MARKETING INFORMATION
MARKETING INFORMATION SYSTEM (MIS)--an organized
way of continually gathering, accessing, and analyzing information
that marketing managers need to make decisions.
? Get more information--faster and easier
INTRANET--a system for linking computers within a company.
? Marketing managers must help develop an MIS
DATA WAREHOUSE--a place where databases are stored so that they are available when needed.
DECISION SUPPORT SYSTEM (DSS)--a computer program that
makes it easy for a marketing manager to instantly access and use
SEARCH ENGINE--a computer program that helps a marketing manager find information that is needed.
MARKETING MODEL--a statement of relationships among marketing variables. 4Ps, external environment, mission
? Information for planning, implementation, and control
? New questions require new answers
MARKETING RESEARCH--procedures to develop and analyze information to help marketing managers make decisions. A bridge
to the consumer.
SCIENTIFIC METHOD--a decision-making approach that focuses on being objective and orderly in testing ideas before accepting
them. NOT THE EXPERIMENTAL METHOD
HYPOTHESES--educated guesses about the relationships between
things or about what will happen in the future.
FIVE-STEP APPROACH TO MARKETING RESEARCH
Defining the problem, analyzing the situation, getting problem-
specific data, interpreting the data, and solving the problem.
DEFINING THE PROBLEM--STEP 1
? Finding the right problem level – where doe problem lie?
? Don't confuse problems with symptoms
ANALYZING THE SITUATION--STEP 2
SITUATION ANALYSIS--an informal study of what information
is already available in the problem area. Often solves the problem.
SECONDARY DATA--information that has been collected or
PRIMARY DATA--information created to solve current problem.
? Search engines find information on the Internet
? Government data is inexpensive or free (Census)
? Situation analysis yields a lot--for very little
RESEARCH PROPOSAL—where problem solving data is not available from another source, the plan that specifies what
marketing research information will be obtained and how.
GETTING PROBLEM-SPECIFIC DATA--STEP 3
SURVEYS, OBSERVATIONS AND EXPERIMENTS
? Gathering primary data
QUALITATIVE RESEARCH--seeks in-depth, open-ended responses, not yes or no answers.
-Focus groups stimulate discussion, depth interviews ―drill
down‖ to the root of the problem.
FOCUS GROUP INTERVIEW--an interview of 6 to 10 people in an informal group setting.
QUANTITATIVE RESEARCH-- structured responses that can be summarized in numbers--like percentages, averages, or statistics.
? Fixed responses speed answering and analysis
? Surveys come in many forms
-Phone and online surveys are common and convenient
RESPONSE RATE--the percent of people contacted and qualified
who complete the questionnaire.
? Observing--what you see is what you get
? Checkout scanners ―see‖ a lot
CONSUMER PANELS--a group of consumers who provide information on a continuing basis.
EXPERIMENTAL METHOD--a research approach in which researchers compare the responses of two or more groups that are
similar except on the characteristic being tested.
? Syndicated research shares data collection costs
INTERPRETING THE DATA--STEP 4
STATISTICAL PACKAGES--easy-to-use computer programs that analyze data. SPSS
? Is the sample really representative of the population of interest?
POPULATION--in marketing research, the total group you are
SAMPLE--a part of the relevant population.
? Research results are not exact
VALIDITY--the extent to which data measures what it is intended
RELIABILITY—the extent to which multiple measures produce
the same results. MAY NOT BE VALID
? Marketing manager and researcher must work together
SOLVING THE PROBLEM--STEP 5
? The last step is solving the problem
HOW MUCH INFORMATION DO YOU NEED?
? What is the value of information? More specifically, what is the
cost of a mistake?