ADMS 2200 Chapter Notes - Chapter 5: Global Marketing, Sample Size Determination, Marketing Intelligence

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Part 2 Understanding the Marketplace and Consumers
CHAPTER 5
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
issues
JUST THE BASICS
CHAPTER OVERVIEW
This chapter looks at how companies develop and manage information about important marketplace
elements.
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
INTRODUCTION
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
clean.
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 laundry problems. It can make a difference in something
they truly care about the fabrics that touch their lives.
So, can you develop a relationship with a laundry detergent brand? According to Tide’s research, the
answer is ―yes.‖
But, marketers must use the information to gain powerful customer and market insights.
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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
A good marketing information system balances the information users would like to have against what
they really need and what is feasible to offer.
Sometimes the company cannot provide the needed information, either because it is not available or
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
marketing research.
Internal Data
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.
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Part 2 Understanding the Marketplace and Consumers
All the data must be well integrated and readily accessible.
Competitive Marketing Intelligence
Competitive marketing intelligence is the systematic collection and analysis of publicly available
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.
Much competitor intelligence can be collected from people inside the company. Intelligence seekers
can also examine thousands of online databases like SEDAR and Hoover’s.
Competitors often reveal intelligence information through their annual reports, business publications,
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.
MARKETING RESEARCH
Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a
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 preliminary information 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
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