Marketing Management

BBUS 320
Spring, 2014
Ceri M. Nishihara
cnishihara@uwb.edu
HH 1312
Managing Marketing
Information To Gain
Customer Insights
Chapter 4
Rest Stop: Previewing the Concepts
Explain the importance of information in
gaining insights about the marketplace and
customers
Define the marketing information system and
discuss its parts
Outline the steps in the marketing research
process
4 - 3
Rest Stop: Previewing the Concepts
Explain how companies analyze and use
marketing information
Discuss the special issues some marketing
researchers face, including public policy and
ethics issues
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First Stop: Dominos Pizza
Declining revenues prompt Dominos to ask
customers for honest feedback
Gains insights from social media and focus
groups
Discovers that main problem is taste
Reinvents its product, launches Pizza
Turnaround campaign
Result Increased sales and profits
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Marketing Information and Customer
Insights
Consumer needs and motives for buying are
difficult to determine
Online sources give marketers abundant data
about consumer behavior
Challenge for companies is to make better use
of information to gain customer insights
Firms use customer insights to develop a
competitive advantage

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Fresh understandings of
customers and the marketplace
derived from marketing
information that becomes the
basis for creating customer value
and relationships
Customer insights
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People and procedures dedicated
to assessing information needs,
developing the needed
information, and helping decision
makers to use the information to
generate and validate actionable
customer and market insights
Marketing information
system
Assessing Information Needs
A good MIS balances the information users
would like against what they really need
Collecting and storing information using a MIS
is expensive
Firms must decide whether the value of the
insights gained from more information is
worth the cost
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Electronic collections of consumer and market
information obtained from data sources
within the company network
Internal databases
Internal Data
Can be accessed
more quickly and
cheaply than other
information sources
Ages rapidly and may
be incomplete
Maintenance and
storage of data is
expensive

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Financial services provider USAA uses its
extensive database to tailor its services
to the specific needs of individual
customers, creating incredible loyalty
The systematic collection and analysis of
publicly available information about
consumers, competitors, and developments
in the marketing environment
Competitive marketing
intelligence
Competitive Marketing Intelligence
Techniques include:
Observing consumers
Quizzing the companys own employees
Benchmarking competitors products
Monitoring Internet buzz
Actively monitoring competitors activities
Companies also take steps to protect their
own information
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The systematic design, collection,
analysis, and reporting of data
relevant to a specific marketing
situation facing an organization
Marketing research
Figure 4.2 - The Marketing Research
Process
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Defining the Problem and Research
Objectives
Exploratory
research
Gathering
preliminary
information
that will help
define the
problem and
suggest
hypotheses
Descriptive
research
Generating
information to
better
describe
marketing
problems,
situations, or
markets
Causal research
Testing
hypotheses
about cause-
and-effect
relationships
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The Research Plan
Should be presented as a written proposal
Should cover:
The management problems addressed
Research objectives
Information to be obtained
How results will help decision-making
Estimated research costs
Type of data required (Primary or secondary)

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,
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Information that already exists
somewhere, having been collected for
another purpose
Secondary data
Secondary Data
Common sources of secondary data:
Internal company databases
Commercial online databases
Internet search engines
Cheaper to obtain than primary data
Can be collected faster than primary data

,
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Information collected for the
specific purpose at hand
Primary data
Primary Data
Designing a primary data collection plan
involves making decisions about:
The research approach
Observation, survey, or experiment
Contact methods
Mail, telephone, personal, or online
The sampling plan
Sampling unit, sample size, and sampling procedure
Research instruments

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Gathering primary data by observing relevant
people, actions, and situations
Observational research
A form of observational research that involves
sending trained observers to watch and interact
with consumers in their natural environments
Ethnographic research
Observational Research
Can obtain information that people are
unwilling or unable to provide
Cannot be used to observe feelings, attitudes,
and motives, and long-term or infrequent
behaviors

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Marketing at Work
By entering the
customers world,
ethnographers can
scrutinize how
customers think and
feel as it relates to
their products
To better understand the challenges
faced by elderly shoppers, this
Kimberly-Clark executive tries to
shop while wearing vision-
impairment glasses and bulky gloves
that simulate arthritis
Gathering primary data by asking
people questions about their
knowledge, attitudes, preferences,
and buying behavior
Survey research
,
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Gathering primary data by
selecting matched groups of
subjects, giving them different
treatments, controlling related
factors, and checking for
differences in group responses
Experimental research
Contact Methods Mail Questionnaires
Pros
Large amounts of information at a relatively low
cost per respondent
Enables more honest responses than interviews
Absence of interviewer bias
Cons
Inflexible, low response rate
Researcher has little control over sample
,
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Contact Methods - Telephone Interviewing
Pros
Gathers information fast, high response rate
Allows greater flexibility than mail surveys
Strong sample control
Cons
Higher costs than mail questionnaires
Interviewer may bias results
Limited quantity of data can be collected
,
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Contact Methods Personal Interviewing
Pros
Highly flexible method that can gather a great deal
of data from a respondent
Good control of sample, speed of data collection,
and response rate
Cons
High cost per respondent
Subject to interviewer bias
,
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Focus Groups
Involve inviting six to
ten people to gather
for a few hours with
a trained interviewer
to talk about a
product, service, or
organization
Lexus general manager Mark
Templin hosts An Evening with
Lexus dinners with luxury car
buyers to figure out why they did
or didnt become Lexus owners
Collecting primary data online through
Internet surveys, online focus groups,
Web-based experiments, or tracking
consumers online behavior
Online marketing research
Contact Methods Online Marketing
Research
Pros
Speed and low costs
Lowest cost per respondent of all contact
methods; offers excellent sample control
Good flexibility and response rate due to
interactivity
Cons
Difficulty in controlling sample
,
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A segment of the population selected
for marketing research to represent the
population as a whole
Sample
,
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Sampling Plan
Sampling requires three decisions:
Who is to be studied (sampling unit)
How many people should be included (sample
size)
How should the people in the sample be chosen
(sampling procedure)
,
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Each population member has a known chance
of being included in the sample
Probability
sample
Simple random sample
Stratified random sample
Cluster (area) sample
Sampling error cannot be measured
Nonprobability
sample
Convenience sample
Judgment sample
Quota sample
Research Instruments
Questionnaires
Closed-end questions include all the possible
answers, and subjects make choices among them
Open-end questions allow respondents to answer
in their own words
Mechanical devices
People meters, checkout scanners,
neuromarketing

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Implementing the Research Plan
Collecting the data
Most expensive phase
Subject to error
Processing the data
Check for accuracy
Code for analysis
Analyzing the data
Tabulate results
Compute statistical
measures
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Interpreting and Reporting Findings
Interpret the findings
Draw conclusions
Report to management
Present findings and conclusions that will be most
helpful to decision making

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Customer Relationship Management
(CRM)
Managing detailed information about
individual customers and carefully managing
customer touch points to maximize customer
loyalty
Helps firms offer better customer service
Helps identify high-value customers
Enhances the firms ability to cross-sell products
and develop offers tailored to customers
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Public Policy and Ethics in Marketing
Research
Intrusions on consumer privacy
The Marketing Research Associations Your
Opinion Counts and Respondent Bill of Rights
initiatives
Adopting standards that outline researchers
responsibilities to respondents
Misuse of research findings
Development of codes of research ethics and
standards of conduct
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Rest Stop: Reviewing the Concepts
Explain the importance of information in
gaining insights about the marketplace and
customers
Outline the steps in the marketing research
process
Explain how companies analyze and use
marketing information
Discuss the special issues some marketing
researchers face, including public policy and
ethics issues


4 - 42