11) Market Research and Information Systems

The need for marketing information:
– Today’s organisations need timely access to accurate information for many reasons:
– Competitive pressure
– Expanding markets
– Cost of mistakes
– Increasing customer expectations
What is market research?
Marketing research is the development, interpretation and communication of decision-oriented information, which is used in all phases of the marketing process.
What you need to consider:
– Recency
– Relevance
– Accuracy
– Value versus cost
What are the 4 main information sources?
1) Syndicated services – regularly scheduled reports produced and sold by research firms
2) Marketing information systems – firm’s internal system for providing continuous, scheduled standardized marketing information.
3) Decision support systems – computer based system that enables marketers to quickly answer specific research questions.
4) Databases – contain separate sectors of information on customers products, competitors, industry trends etc
Marketing Information System:
People, equipment and procedures to gather, sort, analyse, evaluate and distribute needed, timely and accurate information to marketing decision makers.
Marketing Information Systems Allows Managers to:
– Improve the quality of decision making
– Find out what went wrong
– understand the marketplace
– Help ensure that goals and satisfactory profits are achieved
Assessing information needs:
A good marketing information system balances the information that managers would LIKE to have against what they really NEED and what is FEASIBLE to offer:
– What type of decisions are you regularly called upon to make?
– What types of information do you need to make these decisions?
– What types of information do you regularly get?
– What types of special studies do you periodically request?
– What types of information would you like to get?
etc
Developing information – Internal Records information:
Information gathered from sources within the company to evaluate marketing performance and to detect marketing problems and opportunities.
Marketing Intelligence:
Everyday information about developments in the marketing environment that helps managers prepare and adjust marketing plans.
Marketing Research:
The function that links the consumer, customer and public to the marketer through information. Information used to identify and define marketing opportunities and problems ; to generate, refine and evaluate marketing actions; to monitor marketing performance; and to improve understanding of the marketing process.
– The systematic collection, recording and analysis of information to support marketing decision making
– The communication of this analysis to management
The marketing research process:
–>Defining the problem and Research objectives
–>Developing the research plan for collecting information
–>Implementing the research plan – collecting and analyzing the data
–> Interpreting and reporting the findings
Defining the Objective:
– Goal usually to solve a problem
– Can also be to define a problem to to
– Determine if there is a problem
Conducting a situational Analysis:
– Obtaining information about the company and its business environment
– One effective tool is the SWOT
Conducting and Informational investigation:
– Gathering information from people outside the company
– Can determine as to whether further study is necessary
Planning and conducting a formal investigation:
– Selecting sources of information
– Secondary data sources
– Gathering primary data
The Marketing Research Process; Questions that might be asked:
– What kind of people are buying the product/service?
– Why are these people buying our product/service while others are not?
– Will sales increase if we hire another sales person?
– Which advertising campaign will yield the best returns?
Defining the Problem and research objectives; Three types of objectives:
1) Exploratory Research – Marketing research to gather preliminary information that will help to better define problems and suggest hypotheses
2) Descriptive Research – Marketing research to better describe marketing problems, situations or markets such as the market potential for a product or the demographics and attitudes of consumers.
3) Causal Research – Marketing research to test hypotheses about cause and effect relationships
Developing the research Plan:
– Determining specific information needs
– Gathering secondary information
– Secondary data – information that already exists somewhere having been collected for another purpose
– Primary data – information collected for the specific purpose at hand
Interviews:
Gathering data by interviewing people.
Advantage – First hand
Disadvantage:
– Opportunities for error in the construction of the survey and the interviewing process
– Can be expensive and time consuming
– Potential respondents can refuse to participate, ones that do may not give truthful answers
Types if Interviews:
– Personal
– Focus groups
– Telephone
– Mail interviews
– Internet
Research Methods:
Quantitative interviews – are usually to collect relatively straightforward information from a relatively large group of people while..
Qualitative Interviews – are usually used to collect more insightful or complex information – usually because of cost, from a smaller group of people .
Research Approaches:
– Observational research
– Survey research
– Experimental research
Overall Goal:
– Understanding the information and interpreting the data
Other Market Research Considerations:
Marketing research in small businesses and not for profit organisations.
– There are ways that these organisations can carry out marketing research by with small budgets including:
–secondary data
–Observation
–Surveys
Care should be taken to ensure focus on the objective of research, formulate questions in advance, recognise biases of small samples and also less skilled researchers.
International Marketing Research:
Faces different problems:
– differences in economic development, cultures, customs and buying patterns.