MKTG1025 Lecture Notes - Lecture 2: Customer Insight, Customer Relationship Management, Sample Size Determination
Marketing Principles
Week 2
Marketing Analytics: Gaining Customer Insights
Marketing Information & Customer Insight
- When creating value for customers, marketers must obtain fresh and deep insights
into their needs and wants
- Marketing information as big data
- Marketing managers are overloaded with data and often overwhelmed by it
- Marketers need better information
- They need to make better use of the information they already have
- Big data – large & complex data sets generated by sophisticated information
generation, collection, storage and analysis technologies
- Big data presents companies &marketers with both big opportunities and challenges
- Opportunities: Customer insights, better understanding of the customers buying
needs
- Challenges: Accessing and sifting through data is time consuming, more information
than a manager can digest
Marketing Analytics
- Involves tools and technologies used in making marketing decisions
- Lead to effective outcomes and return on marketing investment
- Requires data collection and analysis from all channels, physically & digitally
- Sources of data: own database, research, web, customer transactions
Managing Marketing Information
- Real value of marketing research: the customer insights it provides
- Customer insight teams collect information
- Sources: research studies, interact with consumers, monitoring consumer online
conversations
Marketing information & Customer Insights
- Challenge: A customer needs & motives aren’t obvious
- Companies must design effective marketing information systems (MIS)
- MIS gives managers the right information, in the right form at the right time
Marketing Information System (MIS)
- Assessing information needs
- Developing the needed information: Internal databases, marketing intelligence &
marketing research
- Helping decision makers use the information to generate market insights
- Analyzing and using information
- Validate actionable customer and market insights
- Marketing environment: target markets, marketing channels, competitors, public,
macro environment forces
Assessing Marketing Information Needs
- MIS also provide information to external partners, suppliers, resellers & marketing
services agencies
- Good MIS: balances the information users would like to have against what they
really need and what is feasible to offer
Developing Marketing Information
- Marketers obtain the needed information from:
- Internal databases: electronic collections of consumer and market information
obtained from data sources within the company’s network
- Marketing department: customer characteristics, sales transactions, website visits
- Customer service department: customer satisfaction, service problems
- Accounting department: detailed record of sales, costs, cash flows
- Operation Reports: production, shipments, inventories
- Salesforce: reseller reactions, competitor activities, point-of-sale transactions
- Competitive marketing databases: Systematic collection and analysis of publicly
available information about consumers, competitors and developments in the
marketing environment
- Methods of collection: observation, monitoring online activities, sentiment analysis,
trend analysis
Marketing research
- Systematic design, collection, analysis and reporting of data relevant to a specific
marketing situation facing an organization
- Gives insight in customer motivations, purchase behaviors and satisfaction
- Helps assess: market potential, market share, effectiveness of marketing mix
activities
- Qualitative research: involves a small number of individuals in focus groups or in-
depth one to one interviews
- Quantitative research: Involves a large number of individuals, above 100 people
using statistical application
- Process: 1) Defining the problem & research objectives
2) Developing the research plan for collecting information
3) Implementing the research plan, collecting & analyzing the data
4) Interpreting and reporting the findings
Defining the problem & Objectives
- Hardest step in the process
- Don’t know the specific cause
- Problem too broad: too much information may be collected, actual issue is not
uncovered
- Problem too narrow: too little information is gathered, cause not being addressed
Research Objectives
- The statement of the problem and the research objectives, guide the entire research
process
1) Exploratory research: Gathers preliminary information to help define the problem,
suggest hypotheses
2) Descriptive research: Describes marketing problems, situations or markets
3) Casual research: Test hypotheses about cause-and-effect relationships
Developing the research plan
- Objectives must be translated into specific information needs
- Eg: Demographic, forecasts, impact of customer experience
- Presented as a written proposal
Document Summary
When creating value for customers, marketers must obtain fresh and deep insights into their needs and wants. Marketing managers are overloaded with data and often overwhelmed by it. They need to make better use of the information they already have. Big data large & complex data sets generated by sophisticated information generation, collection, storage and analysis technologies. Big data presents companies &marketers with both big opportunities and challenges. Opportunities: customer insights, better understanding of the customers buying needs. Challenges: accessing and sifting through data is time consuming, more information than a manager can digest. Involves tools and technologies used in making marketing decisions. Lead to effective outcomes and return on marketing investment. Requires data collection and analysis from all channels, physically & digitally. Sources of data: own database, research, web, customer transactions. Real value of marketing research: the customer insights it provides. Sources: research studies, interact with consumers, monitoring consumer online conversations. Challenge: a customer needs & motives aren"t obvious.
