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Chapter 5

Week 2 - Chapter 5

8 Pages
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Department
Management (MGM)
Course Code
MGMA01H3
Professor
Alison Jing Xu

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1 | Page/MGTB0 4 We e k 2
- Dove gathered good customer information and used this information to gain powerful
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Marketing Information and Customer Insights
- In order to create value for customers, marketers must gain fresh, deep insights into what
customers need and want
- ,QWRGD\VK\SHUFRPSHWLWLYHZRUOGWKHUDFHIRUFRPSHWLWLYHDGYDQWDJHLVUHDOO\DUDFHfor
customer and market insights which comes from good marketing information
Other Marketing Information Considerations
- Customer and market insights are important for building customer value and relationships but
is difficult to obtain (even consumers can¶WWHOO\RXH[DFWO\ZKDWRUZK\WKH\QHHGWREX\
- To gain good customer insights, marketers must effectively manage marketing information
from a wide range of sources
- 7RGD\VPDUNHWHUVKDYHUHDG\DFFHVVWRSOHQW\RIPDUNHWLQJLQIRUPDWLRQEXWWKH\GRQ¶WQHed
more information, they need better information that they can use and put into action
- Real value and information lies in how it is used and the customer insights it provides
- Customer insights are the fresh understandings of customers and the marketplace derived
from marketing information that become the basis for creating customer value & relationships
- Customer insight groups collect customer and market information from a wide variety of
sources ± traditional marketing research studies, mingling with and observing consumers
- Companies must be careful not to go too far and become customer controlled where they give
customers everything they request, should only give them what they need
- Marketing information system (MIS) consists of 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
- MIS begins and ends with information users who assess information needs followed by
interacting with the marketing environment to develop needed information through internal
company databases, marketing intelligence activities, and marketing research. Finally the MIS
helps users analyze and use the information to develop customer insights, make marketing
decisions, and manage customer relationships
Chapter 5 ± Managing Marketing Information to Gain Customer Insights (pg. 140 ± 171)
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2 | Page/MGTB0 4 We e k 2
Assessing Marketing Information Needs
- 7KH0,6SULPDULO\VHUYHVWKHFRPSDQ\¶VPDUNHWLQJDQGRWKHUPDQDJHUV as well as providing
information to external partners (e.g. suppliers, resellers, or marketing service agencies)
- A good marketing information system balances the information users would like to have
against what they really need and what is feasible to offer
- They begin by interviewing managers and find out what information they would like
- Sometimes the company cannot provide the needed information either due to limitations of
MIS or because the information is not available (eg. competitors advertising budget next year)
- The costs of obtaining, analyzing, storing, and delivering information can mount quickly so
the company must decide whether the value of insights gained from additional information is
worth the costs of providing it
Developing Marketing Information
- Marketers can obtain the needed information from internal data, marketing intelligence, and
marketing research
Internal Data
- Internal databases are electronic collections of consumer and market information obtained
from data sources within the comSDQ\¶VQHWZRUNWRLGHQWLI\PDUNHWLQJRSSRUWXQLWLHVDQG
problems, plan programs, and evaluate performance
- Information from this database can come from many sources (e.g. marketing department
furnishes information on customer transactions, demographics, psychographics, and buying
behaviour; customer service department keeps records of customer satisfaction or problems;
and operations reports on production schedules, shipments, and inventories...)
- Harnessing all such information from different sources provides powerful customer insights
- Internal databases usually can be accessed more quickly and cheaply than other information
sources but also present some problems: since internal databases were collected for other
purposes, it may be incomplete or in the wrong form, data also ages quickly, managing
mountains of information requires highly sophisticated equipment and techniques
- Due to the costs of updating and maintaining internal databases, many companies are buying
services from other organizations
Marketing Intelligence
- Marketing intelligence is the systematic collection and analysis of publicly available
information about consumers, competitors, and developments in the marketing environment
- Marketing intelligence gathering has grown dramatically as more companies are
eavesdropping on the marketplace and snooping on their competitors
- Good marketing intelligence can help marketers gain insights into how consumers talk about
and connect with their brands (companies send out trained observers to monitor consumers)
- &RPSDQLHVDOVRQHHGWRDFWLYHO\PRQLWRUFRPSHWLWRUV¶DFWLYLWLHVWRJDLQHDUO\ZDUQLQJVRI
competitor moves and strategies, new-product launches, new or changing markets, and
potential competitive strengths and weaknesses
- Much competitor intelligence can be collected from people inside the company (executives,
engineers, sales force), outside the company (suppliers, key customers), and by observing
competitors and monitoring their published information
- Intelligence seekers can pore thorough any of thousands of online databases that contain a
wealth of useful information about competitors strategies, markets, new products, facilities ...
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3 | Page/MGTB0 4 We e k 2
- The intelligence game goes both ways where employees are taught not just how to collect
intelligence information but also how to protect company information from competitors
- The growing use of marketing intelligence raises a number of ethical issues where some
people resort to illegal activities and snooping in competitors garbage bins
Marketing Research
- Marketing research is the systematic design, collection, analysis, and reporting of data
relevant to a specific marketing situation facing an organization
- E.g. marketing intelligence will not tell Budweiser what appeals will be most effective in its
Super Bowl advertising, marketing research is needed
- Marketing research gives marketers insights into customer motivations, purchase behaviour,
and satisfaction. As well, measure the effectiveness of pricing, product, distribution, and
promotion activities
- The marketing research process has four steps: defining the problem and research objectives,
developing the research plan, implementing the research plan, and interpreting and reporting
the findings:
Defining the Problem and Research Objectives
- Marketing managers and researches must work closely together to define the problem and
agree on research objectives
- Marketing managers best understands the decision for which information is needed
- Researches best understands marketing research and how to obtain information
- After the problem has been defined clearly, the manager and research musts set the research
objectives where a marketing research project might have one of three types:
o Exploratory research is to gather preliminary information that will help define the
problem and suggest hypotheses
o Descriptive research is done to better describe marketing problems, situations, or
markets, such as the market potential for a product or the demographics and attitudes
of consumers
o Causal research is to test hypotheses about cause-and-effect relationships (e.g. would
a 10% decrease in tuition result in an increase in enrolment)
- The statement of the problem and research objectives guides the entire research process and
managers often start with exploratory research followed by the other two
Developing the Research Plan
- After the research problem and objectives have been defined, researchers must determine the
exact information needed, develop a plan for gathering it efficiently, and present the plan to
management
- The research plan outlines sources of existing data and spells out the specific research
approaches, contact methods, sampling plans, and instruments used to gather new data
- Research objectives must be translated into specific information such as the: demographic,
economic, and lifestyles of consumers, their characteristics and usage patterns, retailer
reactions, and forecasts of sales of the new product
- Should also include how the results will help management decision making and costs
- 7RPHHWWKHPDQDJHVLQIRUPDWion needs, the research plan should gather secondary data
which consists of information that already exists somewhere and has been collected for
another purpose, and primary data which consists of information collected for the specific
purpose at hand
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Description
1 P a g e M G T B 0 4 W e e k 2 Chapter 5 Managing Marketing Information to Gain Customer Insights (pg. 140 171) - Dove gathered good customer information and used this information to gain powerful .:894207,32,7N09L38LJK98 708:O90L3K:J08:..088419K0.,25,LJ314770,O-0,:9 Marketing Information and Customer Insights - In order to create value for customers, marketers must gain fresh, deep insights into what customers need and want - ,394,8K507.42509L9L;0Z47O9K07,.0147.42509L9L;0,;,39,J0L870,OO,7,.0for customer and market insights which comes from good marketing information Other Marketing Information Considerations - Customer and market insights are important for building customer value and relationships but is difficult to obtain (even consumers can990OO4:0[,.9OZK,947ZK9K030094-: - To gain good customer insights, marketers must effectively manage marketing information from a wide range of sources - %4,82,7N09078K,;070,,..088945O039412,7N09L3JL31472,9L43-:99K043930ed more information, they need better information that they can use and put into action - Real value and information lies in how it is used and the customer insights it provides - Customer insights are the fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value & relationships - Customer insight groups collect customer and market information from a wide variety of sources traditional marketing research studies, mingling with and observing consumers - Companies must be careful not to go too far and become customer controlled where they give customers everything they request, should only give them what they need - Marketing information system (MIS) consists of 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 - MIS begins and ends with information users who assess information needs followed by interacting with the marketing environment to develop needed information through internal company databases, marketing intelligence activities, and marketing research. Finally the MIS helps users analyze and use the information to develop customer insights, make marketing decisions, and manage customer relationships www.notesolution.com
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