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
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
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
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:
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
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.
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