Textbook Notes (368,552)
Canada (161,962)
RSM250H1 (18)
Chapter 5&10

RSM250H1 Chapter 5 & 10 (Pages 144-167 and 328-330) Notes

9 Pages
Unlock Document

Rotman Commerce
Mengze Shi

RSM250H1 Textbook Notes Chapter 5 Pages 144-167  “Bottom-up” information (i.e. blogs and video reviews) is low cost and can provide valuable information to organizations about customer needs/wants.  Managers complain or needing better information rather than needing more information itself. o Also need to make better use of the information that they already have.  Customer insights: fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value an relationships.  Customer insight groups collect customer and market information from a wide variety of sources and then use this information to develop important customer insights from which the company can create more value for its customers.  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 Steps it goes through:  Interacts with information users to assess information needs.  Interacts with the marketing environment to develop needed information through internal company databases, marketing intelligence activities, and marketing research.  Helps users to analyze and use information to develop customer insights, make marketing decisions, and manage customer relationships. o A good MIS will balance the information users would like to have against what they really need and what is feasible to offer.  A manager may not know about information available that would be useful and the MIS should monitor the marketing environment.  An MIS will have its limitations and may not be able to find out ALL information wanted/needed.  Companies need to determine is the benefit of added information is worth the cost of having it (i.e. storage, analyzing, obtaining).  Needed information can be obtained from: o Internal data  Internal databases: electronic collections of consumer and market information obtained from data sources within the company’s network.  All departments of a company contribute to this database. o I.e. customer service keeps records of customer satisfaction or service problems; accounting department prepares financial statements etc.  If this information is harnessed, it can provide powerful customer insights and competitive advantage.  Highly sophisticated systems are required in order to store the vast amounts of data that a company can produce.  Data can age quickly, needs to be kept up-to-date. o Marketing intelligence  Competitive marketing intelligence: the systematic collection and analysis of publicly available information about consumers, competitors, and developments.  Helps to improve decision making by understanding:  The consumer environment  Assessing and tracking competitors’ actions  Providing early earnings of opportunities and threats  How consumers talk about and connect with their brands  System for Electronic Document Analysis (SEDAR): a database of the documents and information filed by public companies and investment funds with the Canadian Securities Administrators.  Competitor information can be obtained through:  Competitor websites  Consumers’ conversations  Competitor financial statements  A company should not “stoop to snoop” (don’t break the law for information or accepted codes of ethics to get information). o Marketing research  Marketing research: the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.  Gives insight into:  Customer motivations  Purchase behaviour  Satisfaction  The effectiveness of pricing, product, distribution, and promotion activities  Market share/potential  Four steps:  Defining the problem and research objectives o Manager knows the problem best; marketer knows how to obtain the information. o Exploratory research: marketing research to gather preliminary information that will help define problems and suggest hypotheses. o 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. o Casual research: marketing research to test hypotheses about cause-and-effect relationships.  Developing the research plan o Outlines sources of existing data and spells out the specific research approaches, contact methods, sampling plans, and instruments that researchers use to gather data. o A research plan should be presented in a written proposal which should cover:  Management problems addressed  Research objectives  Information to be obtained  How results will help management decision making  Estimated research costs o Secondary data: information that already exists somewhere, having been collected for another purpose. o Primary data: information collected for the specific purpose at hand.  Implementing the research plan  Interpreting and reporting the findings  Secondary data can be collected from within a company (internal database) or from other company’s (i.e. information sold by marketing companies). o Commercial online databases: collections of information available from online commercial sources or accessible via the Internet.  Internet search engines make finding sites easier. o Secondary data is usually cheaper to obtain than primary data. o Secondary sources may even provide data an individual company cannot collect on its own. o The researcher must make certain that the secondary information is relevant, accurate, current, and impartial (objectively collected/reported).  Designing a plan for primary data collection calls for a number of decisions on: o Research approaches  Observational research: gathering primary data by observing relevant people, actions, and situations.  Not only actions but also what people are saying (i.e. social networking conversations).  Can help collect information that people are unwilling or unable to provide.  Things that can’t be observed: o Feelings o Attitudes o Motives o Private behaviour o Long-term or infrequent behaviour  Observations can be very difficult to interpret.  Ethnographic research: a form of observational research that involves sending trained observes (i.e. psychologist/anthropologists) to watch and interact with consumers in their “natural environments”.  Netnography research: observing consumers in a natural context on the Internet. o Can provide insights into both online and offline buying motives and behaviour.  Survey research: gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behaviour.  Best suited for gathering descriptive information.  Problems with surveys: o Inability of people to answer questions due to lack of knowledge or never having thought about it o Unwillingness of people to respond o People not responding truthfully (i.e. trying to sound smart) o Busy people resenting the intrusion into their privacy  Experimental research: gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.  Best suited for gathering casual information.  Tries to explain cause-and-effect relationships. o I.e. McDonald’s introduction of new item and testing different prices. o Contact methods Mail Telephone Personal Online Flexibility Poor Good Excellent Good Quantity of data that can Good Fair Excellent Good be collected Control of interviewer Excellent Fair Poor Fair effects Control of sample Fair Excellent Good Excellent Speed of data collection Poor Excellent Good Excellent Response rate Poor Poor Good Good Cost Good Fair Poor Excellent  Personal interviewing takes two forms:  Individual interviewing o Talking with people in their homes or offices, on the street, or in shopping malls. o Products can be shown and questions tailored to each individual situation.  Group interviewing o Focus group interviewing: personal interviewing that involves inviting 6 to 10 people to gather for
More Less

Related notes for RSM250H1

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.