chapter 6 information system & marketing research-marketing management

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Information System & Marketing Research

6-1


6Chapter

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Marketing Information Systems (MIS)

The term ‘Marketing Information Systems’ refers to a programme for managing

and organising information gathered by an organisation from various internal

and external sources.

Information sources for MIS include a company’s internal records, marketing

databases, marketing intelligence systems, marketing research, and

information supplied by independent information suppliers.

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InternalSources

Elements of MIS

ExternalSources

Marketing Database

Data RetrievalSystem

Information for

MarketingDecisions

Evaluation of Information Needs

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DatabasesA database refers to the collection of comprehensive information about

customers and prospects such as demographic and psychographic profiles,

products and services they buy, and purchase volumes, etc., arranged in a

manner that is available for easy access and retrieval.

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Internal RecordsInternal database is the most basic starting point in developing a strong MIS.

Internal record systems help in tracking what is selling, how fast, in which

locations, to which customers, etc.

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External SourcesCensus Bureau is one key source of information regarding various demographic

variables. Besides Census Bureau of India, other sources include Newspapers,

Trade Publications, Technical Journals, Magazines, Directories, Balance Sheets

of companies, Syndicated and published research reports.

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Computer Networks and Internet

Present day computer networks enable marketers to access data sources and

customers with immediate information about products and performance.

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Data Mining and Data WarehousingThe term ‘data mining’ refers to automated data analysis of large amount of

data stored in a data warehouse. Data mining creates customer database,

which is extremely important for all narrowly defined target-marketing efforts.

Data mining also leads to build database on resellers, distribution channels,

media, etc. Data warehousing refers to storing subject-based, integrated, non-

volatile, time variant data in support of managerial decisions.

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Marketing Intelligence Systems

Marketing intelligence system refers to systematic and ethical approach,

procedures, and sources that marketing managers use to gather and analyse

everyday information about various developments with regard to competitors

and other business trends in the marketing environment.

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Marketing Research Process

It helps in identifying consumer needs and market segments, furnishes

information necessary for developing new products and formulating marketing

strategies, enables managers to measure the effectiveness of marketing

programmes and promotional activities, develops economic forecasting, helps

in financial planning, and quality control.

For conducting marketing research, companies develop systematic

procedures for collecting, recording, and analysing data from secondary and

primary sources to help managers in making decisions.

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Defining Marketing Research“Marketing Research is the function which links the consumer, customer, and

public to the marketer through information – information used to identify and

define marketing opportunities and problems; generate, refine, and evaluate

marketing actions; monitor marketing performance, and improve

understanding of marketing as a process.”

(Definition by American Marketing Association, according to Tull and Hawkins,

6th Ed.)

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Steps in Marketing Research Process

Define Problem& Set Objectives






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Define the Marketing Problem and Set Objectives Problem Definition

Research Objectives: The research objective defines what information is

needed to solve the problem

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Design Research ProjectMarketing research design refers to the specification of methods for gathering

and analysing the data necessary to facilitate identifying or reacting to a problem

or opportunity.

To achieve accuracy and gain useful information through marketing research,

the research design should be developed carefully and strict standards should

be applied for collecting and tabulating the data.

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Many researchers have found it useful to consider three categories of research

based on the type of information required. These are briefly discussed below:

Exploratory Research: This category of research aims at discovering the

general nature of the problem and to correctly understand the involved variables.

Descriptive Studies: In such studies, information is collected from a

representative of respondents and the information collected is analysed by using

statistical methods.

Causal Research (Experimental Research): Such research studies are

conducted to establish cause and effect relationship between different variables.

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Data Collection ApproachThere are four basic methods for collecting data in marketing research. These include secondary data, observation data, survey data, and experimental data. The nature of collected data can be put under either secondary or primary category.

Data Collection Alternatives

Data Alternatives

Secondary Data Use ResearchServices

Primary Data

InternalRecords

Published Reports

Subscriptionto Service

One-TimePurchase

Exploratory Research

PrimaryStudy

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Secondary DataSecondary data is any information originally generated for some other purposes

rather than the current problem under consideration and can be either internal or

external to the organisation.

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Primary Data

In case the needed data are not available from secondary sources, it is dated,

accuracy is doubtful, or unreliable, it becomes necessary for the researcher to

obtain primary data through full-scale research. To collect primary data, the

researcher undertakes either qualitative research or quantitative research.

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Qualitative Research

Data collection techniques for qualitative studies include focus group, depth

interviews and projective techniques.

Four popular methods of data collection include:

Depth interviews

Focus group

Projective techniques

Laddering

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Depth InterviewsDepth interviews are designed to determine deep seated or repressed motives.

Focus GroupsFocus group is a popular technique for exploratory research and brings together about eight to ten people with similar backgrounds to meet with a moderator /analyst for a group discussion. The discussion is “focused” on a product, service or any other subject for which the research is conducted.

Focus groups can be helpful in:

Generating hypotheses about consumers and market conditions.

Suggesting refreshing new ideas.

Checking an advertisement, product package, or product concept to determine any flaws.

Understanding consumers’ motivations, lifestyles and personalities.

Doing a post-mortem on failed products.

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Projective Techniques

These techniques explore the underlying motives of individuals who consciously or unconsciously get involved in rationalisations and concealment because they may be reluctant to admit certain weaknesses or desires.

Some examples of projective techniques are:

Thematic Apperception Techniques (TAT)

Word Association Test

Sentence Completion Test

The Third-Person Technique

Laddering (Means-End Chain Model): The assumption here is that very specific product attributes are linked at levels of increasing abstraction to terminal values.

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Quantitative Research

There are three basic approaches to collecting data in quantitative study:

Observation: One important approach to gain an in-depth understanding of

consumers is to observe their behaviour in the process of buying and using

products.

Experimentation: In experimental studies, the researcher can test the

relative sales appeals for package designs, prices, promotional offers and

copy themes, etc., by designing suitable experiments to identify cause and

effect.

Survey: In a survey for data collection, consumers are aware of the fact that

they are being studied and participate actively. A survey can be conducted

by personal interview, by mail, or by telephone.

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Advantages and Limitations of Data Collection Methods

Personal Telephone Mailinterview survey

survey survey

Costs of data collection High Medium Low

Time required to collect data Medium Low High

Sample size for a given budget Small Medium Large

Data quantity per contact High Medium Low

Can reach widely dispersed sample No Maybe Yes

Reach to special locations Yes Maybe No

Level of interaction with respondents High Medium None

Degree of interview bias High Medium None

Presentation of visual stimuli Yes No Maybe

Response rate High Medium Low

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Data Collection Instruments:The method of data collection depends on the type of research. The primary

method of data collection for quantitative study is the questionnaire.

A questionnaire consists of a set of questions presented to respondents for

their responses.

Instead of using a questionnaire, sometimes researchers use a list of

statements and ask respondents to indicate their degree of agreement or

disagreement (called inventories).

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Researchers also use attitude scales to collect this type of evaluative data.

Attitude scales include Likert scales, Semantic differential scales, and Rank-

order scales.

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Sampling PlanA sample design addresses three questions: who is to be surveyed (sampling

unit), how many to survey (sample size), and how should the respondents be

chosen (the sampling procedure).

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Random Probability SamplingThe greatest accuracy is obtained from random probability samples because all

units in a population have a known and equal chance of being selected.

Non-probability sampling: This method involves the researcher’s personal

judgement and elements of the population do not have a known chance of being

selected, so there is no guarantee the sample is representative and the

researchers cannot be as confident in the validity of the responses.

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Analyse the InformationIt is important to appreciate that raw data by itself does not serve the

purpose of marketing research. After the research data has been collected,

it is time to gain valuable insight from the findings. The researcher tabulates

the data for analysis.

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Present the FindingsReport writing requires taking an objective look at the findings to see how

well the collected facts suit the research objectives to solve a stated

marketing problem.

chapter 6 information system & marketing research-marketing management

Documents

information

define problem

data collection

projective

data mining

marketing

exploratory

quantitative