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Marketing:AnIntroductionThirteenthEditionChapter4ManagingMarketingInformationtoGainCustomerInsightsCopyright©2017,2015,2013PearsonEducation,Inc.AllRightsReservedLearningObjectives(1of4)4-1.Explaintheimportanceofinformationingaininginsightsaboutthemarketplaceandcustomers.4-2.Definethemarketinginformationsystemanddiscussitsparts.4-3.Outlinethestepsinthemarketingresearchprocess.LearningObjectives(2of4)4-4.Explainhowcompaniesanalyzeandusemarketinginformation.4-5.Discussthespecialissuessomemarketingresearchersface,includingpublicpolicyandethicsissues.FirstStop:TheLEGOGroupDiggingOutFreshCustomerInsightsTheLEGOGroup’smarketingresearchhelpedthebrandtorecastitsclassic,colorfulbricksintomodern,tech-richplayexperiences.LearningObjective4-1Explaintheimportanceofinformationingaininginsightsaboutthemarketplaceandcustomers.MarketingInformationCustomerneedsandmotivesforbuyingaredifficulttodetermine.RequiredbycompaniestoobtaincustomerandmarketinsightsGeneratedingreatquantitieswiththehelpofinformationtechnologyandonlinesourcesToday’s“BigData”Bigdatareferstothehugeandcomplexdatasetsgeneratedbytoday’ssophisticatedinformationgeneration,collection,storage,andanalysistechnologies.CustomerInsights
(1of2)Freshmarketinginformation-basedunderstandingsofcustomersandthemarketplaceBecomethebasisforcreatingcustomervalue,engagement,andrelationshipsCustomerinsightsteamscollectcustomerandmarketinformationfromawidevarietyofsources.CustomerInsights
(2of2)Keycustomerinsightshavehelpedmakesocialscrapbookingsite,Pinterest,wildlysuccessfulwithits70millionusers.MarketingInformationSystem(MIS)ConsistsofpeopleandprocedurestoAssessinformationneedsDeveloptheneededinformationHelpdecisionmakersusetheinformationtogenerateandvalidateactionablecustomerandmarketinsightsLearningObjective4-1SummaryMarketingprocessstartswithacompleteunderstandingofthemarketplaceandconsumerneedsandwantsTurnconsumerinformationintocustomerinsightsMarketingInformationSystemBigDataLearningObjective4-2Definethemarketinginformationsystemanddiscussitsparts.Figure4.1-TheMarketingInformationSystemAssessingMarketingInformationNeedsAgoodMISbalancestheinformationuserswouldliketohaveagainstWhattheyreallyneedWhatisfeasibletoofferObtaining,analyzing,storing,anddeliveringinformationiscostly.Firmsmustdecidewhetherthevalueoftheinsightisworththecost.DevelopingMarketingInformationInformationneededcanbeobtainedfromInternaldatabasesCompetitivemarketingintelligenceMarketingresearchInternalDatabases(1of2)Macy’scustomerdatabaseprovidesinsightstopersonalizeitscustomers’shoppingexperiences.InternalDatabases(2of2)Internaldatabasesarecollectionsofconsumerandmarketinformationobtainedfromdatasourceswithinthecompanynetwork.CompetitiveMarketingIntelligence(1of2)Systematicmonitoring,collection,andanalysisofinformationAboutconsumers,competitors,anddevelopmentsinthemarketingenvironmentTechniquesObservingconsumersfirsthandQuizzingthecompany’sownemployeesBenchmarkingcompetitors’productsConductingonlineresearchMonitoringsocialmediabuzzCompetitiveMarketingIntelligence(2of2)OffersinsightsaboutconsumeropinionsandtheirassociationwiththebrandProvidesearlywarningsofcompetitorstrategiesandpotentialcompetitivestrengthsandweaknessesHelpsfirmstoprotecttheirowninformationRaisesethicalissuesLearningObjective4-2SummaryMarketinginformationsystem(MIS)AssessinformationneedsDevelopinformationInternaldatabases,marketingintelligence,andmarketresearchAnalyzeandusetheinformationLearningObjective4-3Outlinethestepsinthemarketingresearchprocess.MarketingResearchSystematicdesign,collection,analysis,andreportingofdatarelevanttoaspecificmarketingsituationfacinganorganizationApproachesfollowedbyfirms:UseownresearchdepartmentsHireoutsideresearchspecialistsPurchasedatacollectedbyoutsidefirmsFigure4.2-TheMarketingResearchProcessDefiningtheProblemandResearchObjectivesExploratoryresearchUsedtogatherpreliminaryinformationHelpstodefineproblemsandsuggesthypothesesDescriptiveresearchUsedtobetterdescribethemarketpotentialforaproductorthedemographicsandattitudesofconsumersCausalresearchUsedtotesthypothesesaboutcause-and-effectrelationshipsResearchPlan(1of2)OutlinessourcesofexistingdataSpellsoutSpecificresearchapproachesContactmethodsSamplingplansInstrumentsthatresearcherswillusetogathernewdataResearchPlan(2of2)ShouldbepresentedinawrittenproposalTopicscoveredinaresearchplan:ProblemsandresearchobjectivesInformationtobeobtainedHowresultswillhelpdecisionmakingEstimatedresearchcostsTypeofdatarequiredSecondaryData
(1of2)InformationthatalreadyexistsCollectedforanotherpurposeSources:Company’sinternaldatabasePurchasedfromoutsidesuppliersCommercialonlinedatabasesInternetsearchenginesSecondaryData
(2of2)AdvantagesLowcostObtainedquicklyCannotcollectotherwiseDisadvantagesPotentiallyIrrelevantInaccurateDatedBiasedTable4.1-PlanningPrimaryDataCollectionResearchApproachesContactMethodsSamplingPlanResearchInstrumentsObservationMailSamplingunitQuestionnaireSurveyTelephoneSamplesizeMechanicalinstrumentsExperimentPersonalSamplingprocedureBlankBlankOnlineBlankBlankResearchApproachesObservationalresearchGatheringprimarydatabyobservingrelevantpeople,actions,andsituationsEthnographicresearch:SendingtrainedobserverstowatchandinteractwithconsumersintheirnaturalenvironmentsSurveyresearchAskingpeoplequestionsabouttheirknowledge,attitudes,preferences,andbuyingbehaviorExperimentalresearchSelectingmatchedgroupsofsubjects,givingthemdifferenttreatments,controllingrelatedfactors,andcheckingfordifferencesingroupresponsesPrimaryDataLandorresearchersvisitfamilies,peekingintotheirrefrigeratorsanddivingdeeplyintotheirfoodshoppingbehaviorsandopinions.Mail,Telephone,andPersonalInterviewingMailquestionnairesareusedtocollectlargeamountsofinformationatalowcostperrespondent.Telephoneinterviewinggathersinformationquickly,whileprovidingflexibility.PersonalinterviewingmethodsincludeIndividualinterviewingGroupinterviewingTable4.2-StrengthsandWeaknessesofContactMethodsBlankMailTelephonePersonalOnlineFlexibilityPoorGoodExcellentGoodQuantityofdatathatcanbecollectedGoodFairExcellentGoodControlofinterviewereffectsExcellentFairPoorFairControlofsampleFairExcellentGoodExcellentSpeedofdatacollectionPoorExcellentGoodExcellentResponseratePoorPoorGoodblankCostGoodFairPoorExcellentSource:BasedonDonaldS.TullandDelI.Hawkins,MarketingResearch:MeasurementandMethod,7thed.(NewYork:MacmillanPublishingCompany,1993).Adaptedwithpermissionoftheauthors.OnlineMarketingResearchDataiscollectedthroughInternetsurveysOnlinefocusgroupsWeb-basedexperimentsTrackingconsumers’onlinebehaviorOnlineBehavioralandSocialTrackingandTargetingOnlinelisteningProvidesvaluableinsightsintowhatconsumersaresayingorfeelingaboutabrandBehavioraltargetingUsesonlineconsumertrackingdatatotargetadvertisementsandmarketingofferstospecificconsumersSocialtargetingMinesindividualonlinesocialconnectionsandconversationsfromsocialnetworkingsitesSamplingPlanAsampleisa
segmentofthepopulationselectedtorepresentthepopulationasawhole.Decisionsrequiredforsamplingdesign:Samplingunit-PeopletobestudiedSamplesize-NumberofpeopletobestudiedSamplingprocedure-MethodofchoosingthepeopletobestudiedTypesofSamplesProbabilitysamples:SimplerandomsampleStratifiedrandomsampleCluster(area)sampleNonprobabilitysamples:ConveniencesampleJudgmentsampleQuotasampleResearchInstruments(1of2)Questionnairescanbeadministeredinperson,byphone,bye-mail,oronline.Closed-endedquestionsOpen-endedquestionsMechanicalinstrumentsincludePeoplemetersCheckoutscannersNeuromarketingResearchInstruments(2of2)Supermarket“smartshelves”trackshopperdemographicsandpurchases.ImplementingtheResearchPlanDatacollectionResearchersshouldguardagainstvariousproblems.TechniquesandtechnologiesDataqualityTimelinessProcessingthedataCheckforaccuracyCodeforanalysisAnalyzingthedataTabulateresultsComputestatisticalmeasuresInterpretingandReportingFindingsResponsibilitiesofthemarketresearcher:InterpretthefindingsDrawconclusionsReportfindingstomanagementResponsibilitiesofmanagersandresearchers:WorktogethercloselywheninterpretingresearchresultsShareresponsibilityfortheresearchprocessandresultingdecisionsLearningObjective4-3SummaryMarketingresearchprocessDefineproblemSetobjectivesDevelopandimplementaresearchplanInterpretandreportfindingsSecondarydata–internalandexternalPrimarydatacollectionObservationalSurveyExperimentalLearningObjective4-4Explainhowcompaniesanalyzeandusemarketinginformation.CustomerRelationshipManagement(CRM)(1of2)ManagingdetailedinformationaboutindividualcustomersCarefullymanagingcustomertouchpointstomaximizecustomerloyaltyConsistsofsoftwareandanalysistoolsthatIntegratecustomerinformationfromallsourcesAnalyzedataindepthApplytheresultsBigDataandMarketingAnalyticsMarketinganalyticsconsistsoftheanalysistools,technologies,andprocessesbywhichmarketersdigoutmeaningfulpatternsinbigdatatogaincustomerinsightsandgaugemarketingperformance.CustomerRelationshipManagement(CRM)(2of2)Kraftcollectsdatafromcustomers,thenapplieshigh-levelmarketinganalytics.DistributingandUsingMarketingInformationMISmustmakeinformationreadilyavailablefordecisionmaking.RoutineinformationfordecisionmakingNon-routineinformationforspecialsituationsIntranetsandextranetsfacilitatetheinformation-sharingprocess.LearningObjective4-4SummaryCustomerrelationshipmanagementIntegrate,analyze,andapplyindividualcustomerdatatobuildstrongerrelationshipsMarketinganalyticsAnalysis,tools,technologies,andprocessestogaincustomerinsightsLearningObjective4-5(1of2)Discussthespecialissuessomemarketingresearchersface,includingpublicpolicyandethicsissues.MarketingResearchinSmallBusinessesandNonprofitOrganizationsObtaininggoodmarketinginsightsSecondarydatacollectionObservationSurveysExperimentsResponsibilityofmanagersThinkcarefullyabouttheresearchobjectivesFormulatequestionsinadvanceRecognizethebiasesintroducedbysmallersamplesandlessskilledresearchersConducttheresearchsystematicallyInternationalMarketingResearchTheproblemsfacedincludeDealingwithdiversemarketsFindinggoodsecondarydatainforeignmarketsDevelopinggoodsamplesReachingrespondentsHandlingdifferencesinculture,language,andattitudestowardmarketingresearchThecostofresearchishigh,butthecostofnotdoingitishigher.IntrusionsonConsumerPrivacy(1of2)FailuretoaddressprivacyissuesresultsinAngry,lesscooperativeconsumersIncreasedgovernmen
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