Part 2 Understanding the Marketplace and Consumers
MANAGING MARKETING INFORMATION TO GAIN CUSTOMER INSIGHTS
PREVIEWING THE CONCEPTS – CHAPTER OBJECTIVES
1. explain the importance of information in gaining insights about the marketplace and customers
2. define the marketing information system and discuss its parts
3. outline the steps in the marketing research process
4. explain how companies analyze and use marketing information
5. discuss the special issues some marketing researchers face, including public policy and ethics
JUST THE BASICS
This chapter is an examination of marketing information systems designed to assess the firm’s
marketing information needs, develop the needed information, and help managers to use the
information to gain actionable customer and market insights.
ANNOTATED CHAPTER NOTES/OUTLINE
More than 60 years ago, P&G’s Tide revolutionized the industry as the first detergent to use
synthetic compounds rather than soap chemicals for cleaning clothes. Tide really does get clothes
For decades, Tide has been positioned on superior performance. But, as it turns out, to consumers,
Tide means a lot more than just getting clothes clean. So, Tide has been on a mission to unearth and
cultivate the deep connections customers have with it.
The marketing research impacted everything the brand did moving forward. Tide, the marketers
decided, can do more than solve women’s laundryproblems. It can make a difference in something
they truly care about – the fabrics that touch their lives.
answer is ―yes.‖
But, marketers must use the information to gain powerful customer and market insights. Chapter 5 Managing Marketing Information to Gain Customer Insights
MARKETING INFORMATION AND CUSTOMER INSIGHTS
Companies use such customer insights to develop competitive advantage.
To gain good customer insights, marketers must effectively manage marketing information from a
wide range of sources.
The real value of marketing research and marketing information lies in how it is used and the
customer insights that it provides.
Customer insights group collect customer and market information from a wide variety of sources.
A 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. (Figure 5.1)
ASSESSING MARKETING INFORMATION NEEDS
they really need and what is feasible to offer.
because of MIS limitations.
By itself, information has no worth; its value comes from its use.
DEVELOPING MARKETING INFORMATION
Marketers can obtain the needed information from internal data, marketing intelligence, and
Internal databases are electronic collections of consumer and market information obtained from
data sources within the company network.
Information in the database can come from many sources.
Problems with internal data:
It may be incomplete or in the wrong form for making marketing decisions.
Keeping the database current requires a major effort, because data ages quickly. Part 2 Understanding the Marketplace and Consumers
All the data must be well integrated and readily accessible.
Competitive Marketing Intelligence
Competitive marketing intelligence is thesystematiccollectionandanalysis ofpubliclyavailable
information about consumers, competitors, and developments in the marketplace.
Marketing intelligence gathering has grown dramatically.
Firms use competitive intelligence to gain early warnings of competitor moves and strategies.
can also examine thousands of online databases like SEDAR and Hoover’s.
trade show exhibits, press releases, advertisements, and Web pages.
Most companies are now taking steps to protect their own information. The growing use of
marketing intelligence raises a number of ethical issues.
specific marketing situation facing an organization.
The marketing research process has four steps (see Figure 5.2):
1. Defining the Problem and Research Objectives
Defining the problem and research objectives is often the hardest step in the research process.
A marketing research project might have one of three types of objectives.
1. Exploratory research: to gather preliminaryinformation that will help define the problem
and suggest hypotheses.
2. Descriptive research: to describe things, such as the market potential for a product.
3. Causal research: to test hypotheses about cause-and-effect relationships.
Start with exploratory research and later follow with descriptive or causal research.
2. Developing the Research Plan Chapter 5 Managing Marketing Information to Gain Customer Insights
The research plan outlines sources of existing data and spells out the specific research approaches,
contact methods, sampling plans, and instruments that researchers will use to gather new data.
Research objectives must be translated into specific information needs.
The research plan should be presented in a written proposal.
Secondary data consist of information that already exists somewhere, having been collected for
Primary data consist of information collected for the specific purpose at hand.
Gathering Secondary Data
Researchers usually start by gathering secondary data.
Using commercial online databases, marketing researchers can conduct their own searches of
secondary data sources.
Web search engines can also be a big help in locating relevant secondary information sources.
Secondary data can usually be obtained more quickly and at a lower cost than primary data.
Its use can provide data an individual company cannot collect on its own.
Secondary data can present problems.
The needed information may not exist.
The data might not be very usable.
o relevant (fits research project needs), accurate (reliably collected and reported),
o current (up-to-date enough for current decisions), and
o impartial (objectively collected and reported).
Primary Data Collection
In most cases, a company must also collect primary data. Care must be given to ensuring that
primary data is relevant, accurate, current, and unbiased.
situations. Part 2 Understanding the Marketplace and Consumers
Observational research can obtain information that people are unwilling or unable to provide.
Some things cannot be observed.
Long-term or infrequent behaviour is also difficult to observe.
Observations can be very difficult to interpret.