Textbook Notes (280,000)
CA (160,000)
McGill (5,000)
MGCR (200)
Chapter 5

MGCR 352 Chapter Notes - Chapter 5: Online Database, Marketing Intelligence, List Of Nokia Products

Management Core
Course Code
MGCR 352
Sameer Mathur

of 3
Chapter 5: Managing Marketing Information to
Gain Customer Insights
Marketing Information and Customer Insights
Marketing information considerations: picture of Apple iPod
o Key customer insights, plus a dash of Apple’s design and usability magic, have made the iPod a
blockbuster. It now captures more than 75% of market share
Customer insights: fresh understandings of customers and the marketplace derived from marketing information
that become the basis for creating customer value and relationships.
Marketing information system (MIS): people and procedures for assessing information needs, developing the
needed information and helping decision makers to use the information to generate and validate actionable
customer and market insights
Internal databases: electronic collections of consumer and market information obtained from data sources
within the company’s network
o Picture: HBC and Vancouver 2010
Internal databases: Hbc’s database of over 8.5 million Canadian consumers is one of the most
comprehensive customer databases in Canada
Marketing intelligence: systematic collection and analysis of publicly available information about consumers,
competitors and developments in the marketing environment
o Picture: printscreen of Nielson online (“bringing clarity to the online world)
Many companies routinely monitor consumers’ online chatter with the help of monitoring
services like Nielsen Online
o Picture: P&G, “dumpster diving”
Marketing intelligence: Proctor and Gamble admitted to “dumpster diving” at rival Unilever’s
Helene Curtis headquarters. When P&G’s top management learned of the questionable practice
it stopped the project, voluntarily informed Unilever, and set up talk to right whatever
competitive wrongs had been done
Marketing Research
Marketing research: systematic design, collection, analysis ,and reporting of data relevant to specific marketing
situation facing an organization
Marketing research process:
o Defining the problem and research objectives
Exploratory research: marketing research to gather preliminary information that will help define
problems and suggest hypotheses
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
Causal research: marketing research to test hypotheses about cause-and-effect relationships
o Developing the research plan for collecting information
Secondary data: information that already exists somewhere, having been collected for another
Primary data: information collected for specific purpose at hand
Commercial online databases: computerized collections of information available from online
commercial sources or via the Internet
o Implementing the research plan collecting and analyzing the data
o Interpreting and reporting the findings
Picture: Axe
o The decision by the Axe brand to offer a new cologne line that would give maturing customers a new
“edge in the dating game” might call for marketing research that provides lots of specific information
Picture: Dialog
o Online database services, such as Dialog, put an incredible wealth of information at the keyboards of
marketing decision makers. Dialog puts “information to change the world, or your corner of it” at your
Research approaches:
o Observational research: gathering primary data by observing relevant people, actions and situations
o Ethnographic research: a form of observational research that involves sending trained observers to
watch and interact with consumers in their “natural habitat”
Picture: Nokia
Teams of Nokia anthropologists “live with the locals” in emerging economies to glean
subtle insights into each local culture. Such insights results in the robust Nokia 1200
phone, which makes shared use a top priority
o Survey research: gathering primary data by asking people questions about their knowledge, attitudes,
preferences, and buying behavior
o Experimental research: gathering primary data by selecting matched groups of subjects giving them
different treatments, controlling other factors, and checking for differences in group responses
Contact methods:
o Mail, telephone and personal interviewing
o Focus group interviewing: personal interviewing that involves inviting 6-10 people to gather for a few
hours with a trained interviewer to talk about a product, service or organization. The interviewer
“focuses” the group discussion on important issues
Ex: Volvo calls in hypnotists to get past clichés (Volvo = safety)
Ex: Schick conducts focus groups in comfortable environments
o Online marketing research: collecting primary data online through Internet surveys, online focus
groups, web-based experiments, or tracking consumers’ online behavior
o Online focus groups: gathering a small group of people online with a trained moderator to chat about a
product, service, or organization and gain qualitative insights about consumer attitudes and behavior.
Picture: Channel M2
Some researchers have now added real-time audio and video to their online focus
groups. For example, Channel M2 “puts the human touch back into online research” by
assembling focus group participants in people-friendly “virtual interview rooms”
Sampling plan:
o Sample: segment of the population s elected for marketing research to represent the population as a
Research instruments:
o Questionnaires
o Mechanical instruments: checkout scanners, facial expression scanner
Picture: Neuromedia
Neuromarketing: when researchers strapped electrode-loaded caps on the noggins of
test subjects during the Super Bowl, they learned that brain activity soared from some
ads but lagged for others
Analyzing and Using Marketing Information
Customer relationship management (CRM): managing detailed information about individual customers and
carefully managing customer “touchpoints” to maximize customer loyalty
Picture: Harrah’s CRM
o Harrah’s CRM system helps the company focus its branding, marketing and service development
strategies on the needs of its most important customers. “We’re trying to figure out which products
sell, and we’re trying to increase our customer loyalty”
Other Marketing Considerations
Marketing research in small businesses and not-for-profit organizations
o Picture: Bibbentuckers dry cleaners
Before opening Bibbentuckers dry cleaner, owner Rober Byerley conducted research to gain
insights into what customers wanted. First on the list was quality
International marketing research
o Picture: Nielsen (again)
Some of the largest research services firms have large international organizations. Nielsen has
offices in more than 100 countries, including Germany and Japan
Public policy and ethics in marketing research
o Intrusions on consumer privacy
Picture: RBC’s Privacy Policy
RBC has a long history of respecting privacy and protecting financial information, which
it sees as fundamental to the way it does business, whether in person or online. It
played an active role in developing Canadian privacy standards. Its website lists its 10
Privacy Principles, which were designed to meet the needs and expectations of its
o Misuse of Research Findings