Principles of Marketing

Punjab Colleges Shahdara

Assignment No.2

Managing marketing information to gain customer insights.I. Assessing marketing information needs.

II. Marketing Research.

III. Analyzing & using market information.

Topic

Instructed By: Prof. Niaz Ahmed

Prepared By

Ayesha Iram (L5F14MCOM0007)

Tayyab Hussain (L5F14MCOM0009)

Syed Mudassir Hussain Shah (L5F14MCOM0017)

I. Marketing Information and Customer Insights

II. Assessing Marketing Information NeedsIII. Developing Marketing InformationIV. Marketing ResearchV. Analyzing Marketing InformationVI. Distributing and Using Marketing

InformationVII. Other Marketing Information Considerations

Context

Marketing Information and Customer Insights

(MIS)It as a "system in which marketing data is formally gathered, stored, analyzed and distributed to managers in accordance with their informational needs on a regular basis."

Customer InsightIt is the intersection betweeninterests of the consumer and

features of the brand. Its mainpurpose is to understand why theconsumer cares for the brand.

(a) information managers would like to have and

(b) what is feasible to offer

The MIS must watch the marketing environment and provide relevant

information to decision makers

It may not be possible to provide all data, e.g. how a competitor will

respond to a price change

Marketing information system (MIS)consists of people and procedures for

• Assessing the information needs• Developing needed information• Helping decision makers use the

information for customer.

MIS provides information to the company’s marketing and other managers and external

partners such as suppliers, resellers, and marketing service agencies

Assessing Marketing Information Needs

Needs Assessment Analysis is used to

compare wants, needs, and expectations

to your brand’s or category’s perceived

delivery or performance.

General steps taken in a needs assessment.

Exploration and identification: During the first phase of the needs assessment, you need to determine what you already know about your organization's needs

Data gathering and analysis: At this stage you are collecting the information you need to better understand the gaps (needs) between where you are and where you want to be.

Utilization: This is where the data you analyzed is used to create a plan of action and implement it.

Evaluation: Evaluation can help you determine what made an action plan successful or find the errors in your needs assessment

User’s Needs

MIS Offerings

Balancing what the information users would like

to have against what they need and what is

feasible to offer.

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Characteristics of a Good MIS

Marketing research is "the process or set of processes that links the consumers, customers, and end users to the marketer

through information.

Marketing Research

It is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing

situation facing an organizationTypes of Marketing

Research

Observational research

Ethnographic research

Observational research

Involves gathering primary data by observing

relevant people, actions, and situations.

Ethnographic research

Involves sending trained observers to watch and

interact with consumers in their natural environment.

Marketing Research

It is the most widely used method and is best for descriptive information—knowledge, attitudes, preferences, and buying behavior.• Flexible• People can be unable or unwilling

to answer.• Gives misleading or pleasing

answers.• Privacy concerns.

Marketing Research

It is best for gathering causalinformation—cause-and-effectrelationships.

• Focus Groups• Six to 10 people with a trainedmoderator• Challenge• Expensive• Difficult to generalize from small group• Consumers not always open and honest

Defining the Problem and Research Objectives

Exploratory research

Descriptive research

Causal research

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Marketing Research

Planning Primary Data Collection

Research approaches

Contact methods

Sampling plan

Research instruments

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Marketing Research

Collecting the information

Processing the information

Analyzing the information

Interpret findings

Draw conclusions

Report to management

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Marketing Research

Analyzing Marketing Information

Marketing information has no value until it is used tomake better marketing decisions Many companies havenow acquired or developed special software andanalysis techniques -- called customer relationshipmanagement (CRM) -- that integrate, analyze, and applythe mountains of individual customer data contained intheir databases.

Customer Relationship Management

(CRM)

CRM consists of sophisticated software and analytical tools that integratecustomer information from all sources, analyze it in depth, and applythe results to build stronger customer relationships

In the market research process, the fourth step is: Analyze the Data or Information. The following

section provides a brief description of several commonly used statistical tools,decision support models, and

optimization routines

• Multiple Regression• Discriminant Analysis• Factor Analysis• Cluster Analysis• Conjoint Analysis• Multidimensional Scaling

The amount of data that can be collected and assembled in a market research study can be astronomical. Data organization

and data reduction are two very important aspects of data analysis that is seldom highlighted

Multiple Regression

A simple market research example is the estimation of the best fit for advertising by looking at how sales revenue (the dependent variable) changes in relation to

expenditures on advertising, placement of ads, and timing of ads.

Discriminant Analysis

Market research can make use of discriminant analyses in a number of ways. One simple example is to distinguish what advertising channels are most effective for

different types of products.

Factor Analysis

This statistical method is used to determine which are the strongest underlying dimensions of a larger set of variables that are inter-correlated. Where many

variables are correlated, factor analysis identifies which relations are strongest

Cluster Analysis

This statistical procedure is used to separate objects into a specific number of groups that are mutually exclusive but that are also relatively homogeneous in

constitution.

Conjoint Analysis

This statistical method is used to unpack the preferences of consumers with regard to different marketing offers. Two dimensions are of interest to the market

researcher in conjoint analysis: (1) The inferred utility functions of each attribute, and (2) the relative importance of the preferred attributes to the consumers.

Multidimensional Scaling

This category represents a constellation of techniques used to produce perceptual maps of competing brands or products.

Distributing and Using Marketing

Information

Information distribution involves entering information into databases and making it available in a time-useable manner

Intranet provides information to employees and other stakeholders

Extranet provides information to key customers and suppliers

Other Marketing Information Considerations

Marketing Research in Small Businesses and Nonprofit Organizations

International Market Research

Public Policy and Ethics

• Customer privacy

• Misuse of research findings

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Marketing Research in Small Businesses and Nonprofit Organizations

Need information about their industry, competitors, potential customers, andreactions to new offers. Must track changes in customer needs andwants, reactions to new products, and changes in the competitiveenvironment

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Sources of marketing information:• Observing their environment• Monitoring competitor advertising• Evaluating customer mix• Visiting competitors• Conducting informal surveys• Conducting simple experiments

Secondary data• Trade associations• Chambers of Commerce• Government agencies• Media

International Marketing Research

Additional and different challenges• Level of economic development• Culture• Customs• Buying patterns• Difficulty in collecting secondary data• Hard-to-reach respondents

Public Policy and Ethics in Marketing Research

• Intrusions on consumer privacy

• Consumer resentment• Misuse of research findings