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Chapter 5

Chapter 5-Managing Marketing Information

12 Pages
108 Views

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

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CHAPTER 5: MANAGING MARKETING INFORMATION TO GAIN CUSTOMER INSIGHTS
MARKETING INFORMATION AND CUSTOMER INSIGHTS
oTo create value for customers and to build meaningful relationships with them, marketers
must first gain fresh, deep insights into what customers need and want
Other Marketing Information Considerations (Please look at Diagram 5.1)
Insights are important building customer value and relationships, these
insights can be very difficult to obtain
Nowadays with the advanced technology there is no lack of information but
marketers often complain of a lack of the right information
CUSTOMER INSIGHTSFresh understandings of customers and the
marketplace derive from marketing information that become the basis for
creating customer value and relationships
Now companies are creating customer insights team
These groups collect customer and market information from a wide variety of
sources-ranging from traditional methods to monitoring online convos on the
company’s products
They then use marketing information to develop important customer insights
from which the company can create more value for its customers
It is noted to not go overboard and become customer controlled, the idea is to
give them what they need to create the value
MARKETING INFORMATION SYSTEMconsists of people and
procedures for assessing informational needs, developing the needed
information, and helping decision makers to use the information to generate
and validate actionable customer and market insights. It begins and ends with
the information users
Assessing Marketing Information Needs
A good marketing information system balances the information users would
like to have against what they really need and what is feasible to offer
Too much info can be just as harmful as too little information
Managers often omit information they ought to know and they dont ask for
information they should have
Some information may not be available and hard to obtain
Also costs of obtaining, analyzing, storing and delivering information can
mount quickly
www.notesolution.com
Therefore the costs of obtaining this information must be weighed against the
value of the insight gained
DEVELOPING MARKETING INFORMATION
Internal Data
INTERNAL DATABASES Electronic collections of consumers and market
information obtained from data sources within the company’s network
Marketing department furnishes information on customer transactions,
demographics, psychographics, and buying behaviour
oAll the departments hold information that impacts the marketing
process and harnessing this information will become a very powerful
tool for the marketing dept
Internal databases can be accessed with less costs and be more available
But the data has to be kept current and there might be problems with the
information not being made for marketing purposes
oThe marketing team must be able to interpret the information made for
the accounting department, the customer service department etc.
Marketing Intelligence
MARKETING INTELLIGENCE The systematic collection and analysis of
publicly available information about consumers, competitors, and
developments in the marketing environment
The goal of marketing intelligence is to improve strategic decision making by
understanding the consumer environment, assessing and tracking competitors’
actions, and providing early warnings of opportunities and threats
Marketing intelligence gathering has grown dramatically, now company’s put
extended effort in finding information about competitors
Good marketing intelligence can help marketers gain insights into how
consumers talk about and connect with their brands
Companies also need to actively monitor competitors’ activities to be able to
detect the early warnings of competitors’ moves and strategies, new-product
launches, new or changing markets, and potential competitive strengths and
weaknesses
An analysis from PwC indicated that companies that had competitive
intelligence as part of their strategic thinking grow 20 percent faster
www.notesolution.com
A lot of competitor intelligence can be collected from within the company itself,
through the suppliers, key customers and through monitoring the company’s
published work
oThey can also buy the competitors’ products and analyze them, analyze
their sales, check for new patents
Online databases are also great sources of information and they are often free
MARKETING RESEARCH (please look at figure 5.2)
oMARKETING RESEARCH The systematic design, collection, analysis, and reporting of
data relevant to a specific marketing situation facing an organization
oMarketing research gives marketers insights into customer motivations, purchase behaviour,
and satisfaction
oit can help them assess market potential and market share or measure the effectiveness of
pricing, product, distribution, and promotion activities
oFour steps: Defining the problem and research objectives Developing the research plan for
collecting information Implementing the research plan-collecting and analyzing the data
interpreting and reporting the findings
Defining the Problem and Research Objectives
In this step the manager may know that there is a problem without knowing
the specific causes
Defining the problem is the hardest step
After the problem has been identified research objectives have to be set
oEXPLORATORY RESEARCH Marketing research to gather
preliminary information that will help define problems and suggest
hypotheses
oDESCRIPTIVE 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
oCAUSAL RESEARCH Marketing research to test hypotheses about
cause-and-effect relationships
Managers often start with exploratory and then lead on to descriptive or
causal
Developing the Research Plan
After defining the problems and objectives, then the researchers must
determine the exact information needed, develop a plan for gathering it
efficiently, and present the plan to management
www.notesolution.com

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Description
CHAPTER 5: MANAGING MARKETING INFORMATION TO GAIN CUSTOMER INSIGHTS MARKETING INFORMATION AND CUSTOMER INSIGHTS o To create value for customers and to build meaningful relationships with them, marketers must first gain fresh, deep insights into what customers need and want Other Marketing Information Considerations (Please look at Diagram 5.1) Insights are important building customer value and relationships, these insights can be very difficult to obtain Nowadays with the advanced technology there is no lack of information but marketers often complain of a lack of the right information CUSTOMER INSIGHTSFresh understandings of customers and the marketplace derive from marketing information that become the basis for creating customer value and relationships Now companies are creating customer insights team These groups collect customer and market information from a wide variety of sources-ranging from traditional methods to monitoring online convos on the companys products They then use marketing information to develop important customer insights from which the company can create more value for its customers It is noted to not go overboard and become customer controlled, the idea is to give them what they need to create the value MARKETING INFORMATION SYSTEM consists of people and procedures for assessing informational needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights. It begins and ends with the information users Assessing Marketing Information Needs A good marketing information system balances the information users would like to have against what they really need and what is feasible to offer Too much info can be just as harmful as too little information Managers often omit information they ought to know and they dont ask for information they should have Some information may not be available and hard to obtain Also costs of obtaining, analyzing, storing and delivering information can mount quickly www.notesolution.com Therefore the costs of obtaining this information must be weighed against the value of the insight gained DEVELOPING MARKETING INFORMATION Internal Data INTERNAL DATABASES Electronic collections of consumers and market information obtained from data sources within the companys network Marketing department furnishes information on customer transactions, demographics, psychographics, and buying behaviour o All the departments hold information that impacts the marketing process and harnessing this information will become a very powerful tool for the marketing dept Internal databases can be accessed with less costs and be more available But the data has to be kept current and there might be problems with the information not being made for marketing purposes o The marketing team must be able to interpret the information made for the accounting department, the customer service department etc. Marketing Intelligence MARKETING INTELLIGENCE The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment The goal of marketing intelligence is to improve strategic decision making by understanding the consumer environment, assessing and tracking competitors actions, and providing early warnings of opportunities and threats Marketing intelligence gathering has grown dramatically, now companys put extended effort in finding information about competitors Good marketing intelligence can help marketers gain insights into how consumers talk about and connect with their brands Companies also need to actively monitor competitors activities to be able to detect the early warnings of competitors moves and strategies, new-product launches, new or changing markets, and potential competitive strengths and weaknesses An analysis from PwC indicated that companies that had competitive intelligence as part of their strategic thinking grow 20 percent faster www.notesolution.com
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