marketing-information management lap 2 marketing- information management get the facts straight

Marketing-Information Marketing-Information Management LAP 2Management LAP 2

Marketing- Information Marketing- Information ManagementManagement

Get theGet theFacts StraightFacts Straight

ObjectivesObjectives

Discuss the nature of marketing-information Discuss the nature of marketing-information management systems.management systems.

Explain the role of marketing-information Explain the role of marketing-information management in marketing.management in marketing.

Discuss the nature ofDiscuss the nature ofmarketing-informationmarketing-informationmanagement systems.management systems.

ObjectiveObjective

• Marketers are required to Marketers are required to make many decisions.make many decisions.

Choosing target marketsChoosing target markets Selecting advertising mediaSelecting advertising media Specifying products to Specifying products to

discontinuediscontinue

• They use reliable, relevant They use reliable, relevant marketing information.marketing information.

• This information comes from This information comes from a marketing-information a marketing-information management system.management system.

Data and Information:Data and Information:What’s the Difference?What’s the Difference?

• Data:Data: Facts and figuresFacts and figures

• Information:Information: Facts and data presented Facts and data presented

in a useful formin a useful form

• For data to become information, For data to become information, they must be:they must be:

ProcessedProcessed OrganizedOrganized Presented in an understandable, Presented in an understandable,

meaningful mannermeaningful manner

What Is Marketing Information?What Is Marketing Information?

• Marketing data available Marketing data available from inside and outside a from inside and outside a business that have been business that have been processed and organized processed and organized in a useful wayin a useful way

The Importance of Marketing InformationThe Importance of Marketing Information

• Marketing information is Marketing information is essential for business survival.essential for business survival.

• Businesses need marketing Businesses need marketing information to:information to:

Make educated decisions Make educated decisions Solve problems efficientlySolve problems efficiently Plan for the futurePlan for the future

The Importance of Marketing InformationThe Importance of Marketing Information

• Marketing information helps Marketing information helps marketers to learn about:marketers to learn about:

The markets they serveThe markets they serve What products are workingWhat products are working How well they are workingHow well they are working Why they are workingWhy they are working

How much impact price has on How much impact price has on customers’ buying decisionscustomers’ buying decisions

What has happened in the pastWhat has happened in the past What is going on nowWhat is going on now What to expect in the futureWhat to expect in the future

• Marketing information can be Marketing information can be used to improve sales, reduce used to improve sales, reduce losses, and increase profits.losses, and increase profits.

What Marketing Information Is All AboutWhat Marketing Information Is All About

• ProductsProducts

• Vendors and suppliersVendors and suppliers

• PricingPricing

• Promotional effectivenessPromotional effectiveness

• CustomersCustomers

• CompetitorsCompetitors

• Economic trends and Economic trends and conditionsconditions

Primary InformationPrimary Information

• Developed from data that Developed from data that are collected in a systematic are collected in a systematic manner for use in one manner for use in one particular situationparticular situation

• Gathered in many waysGathered in many ways QuestionnairesQuestionnaires Focus groupsFocus groups Personal interviewsPersonal interviews Test marketsTest markets

Secondary InformationSecondary Information

• Comes from data that have already Comes from data that have already been collected for other purposesbeen collected for other purposes

• Is often cheaper and easier to Is often cheaper and easier to obtain than primary informationobtain than primary information

• Can help marketers better Can help marketers better understand a problem and ways understand a problem and ways to handle itto handle it

• May come from data in:May come from data in: Company reports and recordsCompany reports and records Reports prepared by government Reports prepared by government

agencies, trade associations, or agencies, trade associations, or research institutesresearch institutes

Forms of DataForms of Data

• Quantitative data:Quantitative data:

NumericalNumerical

• Qualitative data:Qualitative data:

Opinions and personal Opinions and personal interpretationsinterpretations

Characteristics of Marketing InformationCharacteristics of Marketing Information

• OrganizedOrganized Consists of precise, Consists of precise,

orderly dataorderly data

• AccurateAccurate Is error-free and reliableIs error-free and reliable Includes both positive Includes both positive

and negative dataand negative data


• SufficientSufficient Is enough to be truly helpfulIs enough to be truly helpful

• RelevantRelevant Closely relates to the situation Closely relates to the situation

at handat hand


• TimelyTimely Is up-to-dateIs up-to-date

• AccessibleAccessible Is readily availableIs readily available


• Cost-effectiveCost-effective Is worth more than the costs Is worth more than the costs

of gathering the data used to of gathering the data used to generate the informationgenerate the information

What Is a Marketing-Information Management What Is a Marketing-Information Management System (MkIS)?System (MkIS)?

• An organized way of continuously An organized way of continuously gathering, sorting, analyzing, gathering, sorting, analyzing, evaluating, and distributing evaluating, and distributing marketing informationmarketing information

• All of the people, policies, All of the people, policies, procedures, and equipment procedures, and equipment (including technology) involved in (including technology) involved in managing a business’s marketing managing a business’s marketing informationinformation

• Data gatheringData gathering An MkIS gathers internal and An MkIS gathers internal and

external data important to the external data important to the business on an ongoing basis.business on an ongoing basis.

Internal dataInternal data Easy and cheap to collectEasy and cheap to collect Found inside a business, often in Found inside a business, often in

an enterprise resource planning an enterprise resource planning (ERP) system(ERP) system

Common types:Common types: Operating dataOperating data Sales reportsSales reports Inventory dataInventory data

Functions of an MkISFunctions of an MkIS

• Data gatheringData gathering


External dataExternal data Come from outside sourcesCome from outside sources

Chamber of CommerceChamber of Commerce Federal and state planning Federal and state planning

agenciesagencies Trade journalsTrade journals On-line databasesOn-line databases Commercial, syndicated servicesCommercial, syndicated services

Can be obtained by conducting Can be obtained by conducting marketing researchmarketing research

Marketing research: The Marketing research: The systematic gathering, recording, systematic gathering, recording, and analyzing of data about a and analyzing of data about a specific marketing problem or specific marketing problem or situationsituation

• Data gatheringData gathering


Marketing intelligenceMarketing intelligence Comes from a marketing Comes from a marketing

intelligence system that intelligence system that informally gathers helpful data informally gathers helpful data from both internal and external from both internal and external sourcessources

May or may not relate to any May or may not relate to any current issue or projectcurrent issue or project

Can come from many different Can come from many different sourcessources

WebcastsWebcasts SuppliersSuppliers CustomersCustomers SalespeopleSalespeople DriversDrivers ReceptionistsReceptionists NewspapersNewspapers Competitors’ websitesCompetitors’ websites Mystery shoppersMystery shoppers

• Data processingData processing


Analyzing the data collected and Analyzing the data collected and putting them into formats useful to a putting them into formats useful to a businessbusiness

Transforming data into much more Transforming data into much more understandable, organized understandable, organized marketing informationmarketing information

• Information reportingInformation reporting


Handling the flow of information Handling the flow of information within a businesswithin a business

Distributing the necessary Distributing the necessary information to those who need itinformation to those who need it

Making it easy for marketers to locate Making it easy for marketers to locate and retrieve information at any timeand retrieve information at any time

Providing marketers with the right Providing marketers with the right information at the right time in the information at the right time in the right formright form

Requirements of an MkISRequirements of an MkIS

• Decides quickly what data Decides quickly what data and information are neededand information are needed

• Collects, processes, and Collects, processes, and stores data and information stores data and information effectivelyeffectively

• Handles whatever amount Handles whatever amount of data and information is of data and information is neededneeded

• Protects the data and Protects the data and informationinformation

• Operates continuouslyOperates continuously

Explain the nature ofExplain the nature ofmarketing-information marketing-information

management in marketing.management in marketing.

ObjectiveObjective

Benefits of an MkISBenefits of an MkIS

• Collects and presents marketing Collects and presents marketing information in an organized fashioninformation in an organized fashion

Combines and compares Combines and compares scattered datascattered data

Reduces the chance of data Reduces the chance of data getting lostgetting lost

Is often accessed via an intranetIs often accessed via an intranet


• Gives a broader perspective of Gives a broader perspective of the marketthe market

Marketers need a variety of Marketers need a variety of information to keep up with a information to keep up with a rapidly changing market.rapidly changing market.


• Provides information that may help Provides information that may help to prevent a business crisisto prevent a business crisis

Marketers can use information to:Marketers can use information to: Compare with objectives and plansCompare with objectives and plans Correct problems before any Correct problems before any

damage is donedamage is done


• Helps marketers to improve their Helps marketers to improve their planningplanning

Helps to ensure that all parts of the Helps to ensure that all parts of the marketing plan are well coordinatedmarketing plan are well coordinated

Can be used to determine if Can be used to determine if marketing activities are working marketing activities are working as they shouldas they should

Can provide a sound basis for Can provide a sound basis for making the best use of resourcesmaking the best use of resources

When Can an MkIS Be Used?When Can an MkIS Be Used?

• When making business decisionsWhen making business decisions The MkIS provides relevant, The MkIS provides relevant,

accurate information.accurate information. Marketers need information Marketers need information

when planning their marketing when planning their marketing activities and in making activities and in making marketing decisions.marketing decisions.


• When determining market When determining market opportunitiesopportunities

The MkIS can gather and The MkIS can gather and analyze data and information analyze data and information about:about: Market trendsMarket trends Target marketsTarget markets Changes in the environmentChanges in the environment Changing eventsChanging events Effects of these factors on Effects of these factors on

different marketsdifferent markets


• When developing sales forecastsWhen developing sales forecasts The MkIS can provide sales The MkIS can provide sales

information to develop a information to develop a prediction of future sales over a prediction of future sales over a specific period of time.specific period of time.

Marketing information used to Marketing information used to prepare sales forecasts must be prepare sales forecasts must be as accurate as possible.as accurate as possible.


• When evaluating promotional When evaluating promotional strategiesstrategies

An MkIS can be used to evaluate An MkIS can be used to evaluate the effectiveness of promotional the effectiveness of promotional strategies.strategies.

Gathering and analyzing data Gathering and analyzing data may indicate what changes need may indicate what changes need to be made.to be made.


• When conducting a situation When conducting a situation analysisanalysis

An MkIS can provide internal An MkIS can provide internal and external information for a and external information for a situation analysis.situation analysis.

A situation analysis is a A situation analysis is a determination of a firm’s current determination of a firm’s current business situation and the business situation and the direction in which the business direction in which the business is headed.is headed.


• When determining profitabilityWhen determining profitability An MkIS can compare financial An MkIS can compare financial

data from different time periods data from different time periods to provide a picture of the to provide a picture of the business’s profits.business’s profits.


• When attempting to reduce riskWhen attempting to reduce risk An MkIS can assist in An MkIS can assist in

controlling or reducing risk.controlling or reducing risk. The risk of new-product failure The risk of new-product failure

can be reduced by obtaining can be reduced by obtaining advance information about:advance information about: Possible demandPossible demand Target marketTarget market CompetitionCompetition


• When monitoring the competitionWhen monitoring the competition An MkIS can gather and analyze An MkIS can gather and analyze

competitor data such as:competitor data such as: Improvements planned for Improvements planned for

competitors’ productscompetitors’ products New products that are being New products that are being

introducedintroduced Competition’s market shareCompetition’s market share

MkIS: A Key to Reaching Business GoalsMkIS: A Key to Reaching Business Goals

• Business goals:Business goals:

To be profitable and/or meet objectivesTo be profitable and/or meet objectives

To develop a competitive advantage in the To develop a competitive advantage in the marketplacemarketplace

• Maintaining and utilizing an effective Maintaining and utilizing an effective marketing-information management system marketing-information management system can help organizations to reach their goals.can help organizations to reach their goals.

• Virtually all businesses have some type of marketing-information management system.

• Think about the business where you work. How would you describe its MkIS? What internal records does the system maintain? What external data does the business gather? Who or what is responsible for gathering,

analyzing, and distributing the information? How does the business use its information when

making marketing decisions?

• Consider how the business could improve its marketing-information management.

What other marketing data should the business collect?

How could the business more effectively manage information?

How could it make better use of marketing information?

• Yasmine, Inc. specializes in hair care items.

• Christina and her team are responsible for gathering and analyzing data about Yasmine’s competitors.

• Christina’s team recently obtained some marketing intelligence about Yasmine’s leading competitor.

This competitor is in the process of launching a product line targeted at young women.

Early feedback on the new products is very favorable.

• Timothy, a new member of Christina’s team, has suggested that the team go dumpster diving at the competitor’s headquarters.

“Who knows,” Timothy says, “Maybe we can find some good information about these products in the competitor’s trash.”

What do you think? Should Christina’s team rummage

through the competitor’s trash in search of information about the new products?

MBAResearchAcknowledgments

Original DevelopersChristopher C. Burke,

April J. Miller, MBAResearch

Version 1.0

Copyright © 2010MBA Research and Curriculum Center®

Copyright:

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marketing-information management lap 2 marketing- information management get the facts straight

Documents

relevant marketing information

future marketing information

secondary information

figures information

information management

nature of marketing

role of marketing

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