Part 1: Knowledge is the Power
To understand consumer’s needs, marketers need to conduct marketing research.
Marketing research ethics = Taking an ethical and above-board approach to conduct marketing research that
does no harm to the participant in the process of conducting the research.
Marketing Information System(MIS)
It is a process that determines what information marketing managers need and then gathers sorts, analyzes stores and
distributes relevant and timely marketing information to system users.
Marketing Information System (analyzes data from variety of sources and turns data into useful marketing decision
Internal Company Marketing Marketing Acquired
Data Intelligence Research Databases
Computer Hardware and Software
Information for Marketing Decisions
1. Internal Company Data = uses inf. from within the org. to produce reports on the results of sales and
marketing activities. (how much buy, who buy, how items left)
Sales people and managers can access internal records by using intranet = internal corporate communication
network that uses Internet technology to link company departments, employees, databases. (Helps them better
serve, useful for upper management too)
2. Marketing Intelligence system = method by which marketers get info about everyday happenings in
the marketing environment. They are also useful to predict future trends. Staycation = people do not go
3. Marketing Research = process of collecting, analyzing, interpreting data about customers, competitors,
and business environment in order to improve marketing effectiveness.
Syndicated research = research by special firms the collect data on regular basis and sell the reports to multiple
firms. (not very specific, good for general trends).
Custom research = research conducted for a single firm to provide specific information its managers need.
(specific). Some org. do research themselves.
4. Acquired Databases = large amount of info is available in the form of external databases for fee or free.
Government, provincial and others. If you do not want to receive any calls from companies (TELUS promotions)
you can “opt out”, so they cannot call you. It is illegal. The Marketing Decision Support System (MDSS ) = the data, analysis software, and interactive
software that allow managers to conduct analyses and find information they need. It is enhancement to MIS as it
easier to access and find answers.
MIS Data Decision Maker
data Interactive Software
●Marketing Research Statistical and Modeling Information Needed for
●Acquired Databases Software Decision Making
It uses sophisticated statistical and modeling software tools. It allows to examine possible ideas using “what if” tool.
Part 2: Data Mining
Data Mining = sophisticated analysis technique to take advantage of the massive amount of transaction information
now available. Data warehouse = stores all data.
Market Basket Analysis Uses of Data Mining Customer Retention and Loyalty
Customer Acquisition : Many firms include demographic and other information about customers in their
Customer Retention and Loyalty = Firm identifies big spending customers and then targets them for special
offers and inducements other customers won’t receive.
Customer abandonment : Sometimes firm wants customers to take their business elsewhere, because servicing
them actually costs the firm too much. (Get rid of them).
Market basket Analysis : Focused promotional strategies are developed based on the records of which customers
have bought certain products.
Conclusion: Both MIS and MDSS provide information for marketers. Part 3: Steps in Marketing Research Process
Step 1: Define the Research Problem
Specify the research objectives: What questions will the research attempt to answer
Indentify the consumer population of interest: What are the characteristics of the consumer group of interest.
Place the problem in an environmental context: What factors in the firm’s internal and external business environmental
might influence the situation?
Step 2: Determine the Research Design
There are two broad categories. Check page 98 for the table.
1. Secondary research : Data has been collected fo