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CH 5.docx

4 Pages

Management (MGM)
Course Code
Tarun Dewan

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CH 5: Managing Marketing Information to Gain Customer Insights  Customer Insights- Fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships. o Companies must be careful not to go too far and become customer controlled.  not give customers everything they request. But to understand customers to the core and give them what they need- to create value for customers as a means of capturing value for the firm in return  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. o Interacts with information users to assess information needs o Interact with marketing environment to develop needed information through internal company databases, marketing intelligence activities, and marketing research o Helps users analyze and use the information to develop customer insights, make marketing decisions and manage customer relationships. o MIS must monitor the marketing environment to provide decision markers with information they should have to better understand customers and make key marketing decisions o Weigh carefully the costs of getting more information against the benefits resulting from it.  Marketers can obtain information from: o Internal Data  Internal Databases- electronic collections of consumer and market information obtained from data sources within the company’s network.  To identify marketing opportunities and problems, plan programs, and evaluate performance  Pros: quick and cheap compared to other information sources  Cons: incomplete or in the wrong form for making marketing decision  Due to cost of updating and maintaining internal databases, many companies are buying services from other organizations o Marketing Intelligence- the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment  Goal: improve strategic environment, assessing and tracking competitors’ actions, and providing early warnings of opportunities and threats.  Internal: from executives, engineers and scientists, purchasing agents and sales force  External: suppliers, resellers, key customers  Companies have to protect their own intelligence o Marketing Research- The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.  Insight into customer motivations, purchase behaviour, and satisfaction  Help assess market potential and market share or measure the effectiveness of pricing, product, distribution and promotion activities  Conduct own research, hire others, or simply purchase data collected by outside firms to aid in their decision making.  Marketing managers and researchers must work closely together to define the problem and agree on research objectives.  Defining the problem and research objectives is often the hardest step in the research process  Exploratory Research- Marketing research to gather preliminary information that will help define problems and suggest hypothesis.  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.  Causal Research- Marketing research to test hypotheses about cause- and effect relationships.  Often start with exploratory research, then descriptive/ causal research.  Secondary Data- Information that already exists somewhere, having been collected for another purpose.  Obtained more quickly and a t a lower cost  Provide data an individual company cannot collect on its own- information that either is not directly available or would be too expensive to collect.  Cons: needed data may not exist, or not useable  Must evaluate secondary information carefully to make certain it is relevant, accurate, current, and impartial (objectively collected and reported)  Primary Data- Information collected for the specific purpose at hand.  Commercial Online Databases- Computerized collections of information collections of information available from online commercial sources or via the Internet.  Primary Data Collection:  Research Approaches: o Observational Research- Gathering primary data by observing relevant people, actions, and situations.  Pros: Observe consumer behaviour to glean customer insights they can’t obtain by simply asking customer questions. Obtain information that people are unwilling or unable to provide  Cons: can’t observed feelings, attitudes and motives, or private behaviour as well as long-term or infrequent behaviour. Difficult to interpret o Ethnographic Research- a form of observational research that involves sending trained observers to watch and interact with consumers in their “natural habitat”  Generate fresh customer and market insights. o Survey Research- Gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behaviour  Gathering descriptive information person’s knowledge, attitudes, preferences, or buying behaviour by asking them  Cons: people cannot remember or have never though about what they do and why, unwilling to respond (private), want to please the interviewer, may lie to appear smarter, or busy 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 Personal interviewing  individual and group interviewing. o Focus Group Interviewing- Personal interviewing that involves inviting six to ten people to gather for a few hours with a trained interviewer to talk about a product, service, and organization. The inte
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