33:630:301 Chapter Notes - Chapter 4: Customer Insight, Marketing Intelligence, Online Advertising

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Chapter 4 Managing Market Information
I. Marketing Information and Customer Insights
Marketers must first gain fresh deep insights into what customers need
and want in order to create value for customers and build meaningful
relationships with them
These insights can be difficult to understand
A. Marketing Information and Today’s “Big Data”
Companies can generate and find marketing info in great quantities
Consumers generate tons of marketing information through technologies,
social media, and geolocation data
Consumers give up much information to companies and to each other
Big data the huge and complex data sets generated by today’s
sophisticated info generation, collection, storage, and analysis
technologies
People and systems in the world generate about a trillion gb of info
Companies need to make better use of the information they have
B. Managing Marketing Info
Customer insight groups are headed by a senior marketing executive and
comprised of representatives from all the firm’s functional areas
They collect customer and market info from many sources, ranging from
traditional marketing research studies mingling with and observing
consumers to monitoring social media conversations about the company
and its products
Big data is mined from sources far and wide
This information is used to develop important customer insights from
which the company can create more value for customers
Marketing information system consists of people and procedures
dedicated to assessing info needs, developing the needed info, and
helping decision-makers use the info to generate and validate actionable
customer and market insights
II. Assessing Marketing Information Needs
Marketing information systems may also provide info to external partners
like suppliers, resellers, or marketing services agencies
Good marketing information system balances the info users would like to
have against what they really need and what is feasible to offer
Too much info can be as harmful as too little
MIS must monitor the marketing environment to provide decision makers
w/ info they should have to make key marketing decisions
The costs of obtaining, analyzing, storing, and delivering info can mount
quickly. Company must decide whether the value of insights gained from
additional info is worth the costs providing it
Value and cost are hard to assess
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III. Developing Marketing Information
Marketers can obtain the needed info from internal data, marketing
intelligence, and marketing research
A. Internal Data
Internal data collections of consumer and market information obtained
from data sources w/in the company’s network built by companies
Marketing department furnishes info on customer characteristics, in-store
and online sales transactions, and Web and social media site visits
Customer service department keeps records of customer satisfaction or
service problems
Accounting department keeps records of sales, costs, and cash flows
Operations reports on production, shipments, and inventories
Sales force reports on reseller reactions and competitor activities and
marketing channel partners provide data on sales transactions
Such information can provide powerful customer insights and competitive
advantage
Internal databases can be accessed more quickly and cheaply than other
info sources, but it presents problem
Internal info maybe incomplete or in the wrong form for making marketing
decisions
Data also ages quickly
Mining mountains of information requires highly sophisticated equipment
and techniques
B. Competitive Marketing Intelligence
Competitive marketing advantage the systematic monitoring, collection,
and analysis of publicly available info about consumers, competitors, and
developments in the marketplace
Goal is to improve strategic decision-making by understanding the
consumer environment, assessing and tracking competitors’’ actions, and
providing early warnings of opportunities and threats
Techniques range from watching consumers firsthand, quizzing the
company’s own employees, benchmarking competitor’s products, online
research, and monitoring social media buzz
Good marketing intelligence can help marketers gain insights into how
consumers talk about and engage w/ their brands
Companies send out teams of trained observers to mix and mingle w/
customers as they use and talk about other company’s products
Other companies set up sophisticated digital command centers that
routinely monitor brand-related online consumer and marketplace activity
Companies monitor competitor’s activities through their websites and
social media accounts and what consumers say about competing brands
Firms use it to gain early insights into competitor moves and strategies to
prepare quick responses
Marketing intelligence may have questionable ethics but they should not
stoop to snoop
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IV. Marketing Research
Marketers need formal studies that provide customer and market insights
for specific marketing situations and decisions
Marketing research the systematic design, collection, analysis, and
reporting of data relevant to a specific marketing situation facing an
organization
Companies use marketing research to gain insights into customer
motivation, purchase behavior, and satisfaction
Can help them assess market potential and market share or measure
effectiveness of pricing, product, distribution, and promotion activities
Some firms have their own research department that works w/ marketing
managers.
Other times, they hire outside research specialists to consult w/
management to conduct marketing research studies
Sometimes firms simply purchase data collected by outside firms to aid in
their decision-making
A. Defining the Problem and Research Objectives
Marketing managers & researchers must work together to closely define
the problem and agree on research objectives
Manager best understands the decision for which info is needed
Researcher best understands marketing research and how to obtain info
Marketing research project might have 1 of 3 types of objectives
- Exploratory research gather prelim info that will help define
the problem and suggest hypotheses
- Descriptive research describe things such as the market
potential for a product or the demographics and attitudes of
consumers who buy the product
- Casual research to test hypotheses about cause-and-effect
relationships
Statement of problem & research objective guides the entire research
problem. Managers and researcher should put into writing to be certain that
both agree on the purpose and expected results of the research
B. Developing the Research Plan
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 info needs
Research plan should be presented in a written proposal, which is
important when the research project is large and complex when an outside
firm carries it out
Proposal cover management problems addressed, research objectives,
the info to be obtained, and how the results will help mgmt’s decision
making and estimated costs
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