Marketing Information and customer insights Customer Insights- Fresh understanding of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationship Customer themselves usually can’t tell you exactly what they need and why they buy. They don’t need more information, they need better information. Customer controlled- the idea is not to give customers everything they request, Rather it’s to understand customers to the core and give them what they need- create value for customers as a means of capturing value for the firm in return.
Marketing Information system- 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 The companies must design effective marketing information systems that give managers the right information, in the right form, at the right time and help them to use this information to create customer value and stronger customer reel. Marketing Information system (5) 1 .
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Assessing marketing information needs -a good MIS balances the information users would like to have against what they ally need and what is feasible to offer. Not all information will benefit the company because of limited resources. You have to weigh. Information 2. Internal databases Developing marketing – Electronic collections of consumer and market information obtained from date sources within the company network. -Locked within your own records is a huge, largely untapped asset that no can hope to match. Companies are sitting on a gold mine of unrealized potential in their current customer base. Usually can be accessed more quickly and cheaply than other information sources, but they also present some problems. Incomplete, wrong form, ages quickly) 3. Competitive marketing Intelligence – systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment. Goal: improve strategic decision making by understanding the consumer environment, assessing and tracking competitors’ actions, and providing early warnings of opportunities and threats. Track competitors 1 . Ask consumers 2. Through annual reports 3. Sky their resellers and suppliers (buying behavior) 4. Marketing research- systematic design, collection analysis and reporting of data elevate to a specific marketing situation facing an organization. * gives insights into customer motivations, purchase behavior and satisfaction. * Helps assess market potential and market share or to measure the effectiveness of pricing, By autotransformer 4 process of MR.. 1. Defining the problem and research objectives Manager- best understands the decision for which information is needed. Researcher- best understands marketing research and how to obtain the information. This step-”hardest step in researching 3 types of objectives 1 . Exploratory research- gather preliminary information that will help define robbers and suggest hypothesis 2. Descriptive research- describe marketing problems, situations or markets, such as the market potential for a product or the demographics and attitudes of consumers 3. Causal research- test hypothesis about cause and effect reel. 2. Developing the research plan (must be in writing) * researchers must determine the exact information needed, develop a plan for gathering it efficiently and present the plan to management.
Written proposal- when large and complex or when an outside firm carriers it out. Should cover the management problems addressed and the research objectives, the information to be obtained and how the results will help management decision make. Should include research cost. Secondary data- information that already exists somewhere, having been collected for another purpose Primary data- information collected for the specific purpose at hand. Gathering secondary data Commercial online databases- computerized collections of information available from online commercial sources or via the internet. DIALOG, PROTEST, LEXIS’S, FICTIVE, CNN) * secondary data can usually be obtained more quickly and at a lower cost than primary data. Secondary sources can sometimes provide data an individual company cannot collect on its own information that either is not directly available or would be too expensive to collect. Can also present problems. The needed information may not exist-researches can rarely obtain all the data they need from secondary sources. * Must be relevant- fits research project needs. Accurate – reliably collected and reported * Current-up to date enough for current decisions * Impartial-objectively collected and reported Primary date collection * must be relevant, accurate, current and unbiased. Research approaches 1. Observational research- fathering primary data by observing relevant people, actions, and situations. Can obtain information that people are unwilling or unable to attitudes and motives or private behavior. Long term or infrequent behavior is also difficult to observe. 2.
Ethnographic research- involves sending trained observers to watch and interact with consumers in their natural habitat. 3. Survey research- gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior. Most widely used. Best suited for gathering descriptive info. Major advantage is its flexibility. (phone, mail, person or on web) 4. Experimental research- gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related facts, and checking for differences in group response. Best for causal info.
Contact methods I Mail I Tell I Personal I online I Flexibility I P I G I E Quantity of data that can be collected I G Control of interviewer effects I E Control of sample I FIE GIG I E Speed of date collection I P I E I G Response rate I P IP GIG GIG I cost GIG I PIP IEEE Mail, Telephone and personal interviewing FIFE GIG I Mail questionnaires- can be used to collect large amounts of information at a low cost per respondent. Respondents may give more honest answers to more personal questions. No interviewer is involved to bias the answers. NOT flexible. Take longer to complete and the response rate may be very low.
Researcher often has little control over the mail questionnaire sample. Temple interviewing- gets info quickly, provides greater flexibility. Can explain difficult questions, can skip some questions or probe on others. Response rates are higher. Cost per respondent is higher than with mail or online questionnaire. People may not want to discuss personal questions with an interview. Introduces bias. Personal interviewing ( has 2 forms) 1. Individual interviewing- talks to people in their homes or offices etc. Flexible. 2. Group interviewing- 6-1 People to meet w/ a trainee moderator to talk about a product, service or org.
Attendants may be paid a small sum. Moderator encourages free and easy discussion. Also called as Focus group interviewing- personal Online marketing research- collecting primary data online through internet surveys, online focus groups, web-based experiments or tracking consumers online behavior. Internet is well suited to QUANTITATIVE RESEARCH- conducting marketing surveys and collecting data. Web-based survey research- Speed and low cost and more interactive and engaging, easier to complete and less intrusive than traditional phone or mail surveys.
QUALITATIVE WEB-BASED RESEARCH APPROACHES- such as online depth interviewers, focus groups, blobs and social networks. Online focus group- gathering a small group of people online with a trained moderator to chat about a product, service or org and gain qualitative insights about consumer attitudes and behavior. -Is a primary qualitative web-based research approach is online focus groups. Low in cost and easy to administer, online focus groups can lack he real-world dynamics of more personal approaches SAMPLING PLAN population as a whole.
Designing a sample requires 3 decision ( WHO, HOW MANY and HOW) Types of samples 1 . Probability sample A. Simple random sample- every member of the population has a known and equal chance of selection B. Stratified random sample- population is divided into mutually exclusive groups( such as age groups) and random samples are drawn from each group. C. Cluster area sample- population is divided into mutually exclusive groups( such as blocks) and the researcher draws a sample of the groups to interview. . Inviolability sample A. Convenience sample- selects the easiest population B.
Judgment sample- uses his or her Judgment to select population members who are good prospects for accurate info. Quota sample- finds and interviews a prescribed number of people in each of several categories. RESEARCH INSTRUMENTS 1 . Questionnaire- most common instrument, whether administered in person, by phone or online. Very flexible. A. Closed-end questions- include all possible answers and subjects make choices among them. (Y or No. MAC) B. Open-end questions- you’re the one to supply answers. 2. Mechanical instruments A. People meters B. Checkout scanners C. Physical responses D.
Enumerating- measuring brain activity. Uses MR.. Scans. Provides you with more natural and unedited responses than you get when you force people through the cognitive loop of having to remember and tell you how they feel. It’s a great new tool Count. Of 4 processes of MR.. 3. Implementing the research plan- puts plan to action. Involves collecting, processing and analyzing the info. 4. Interpreting and reporting the findings Market researcher- not interpret the findings, draw conclusions and report them to management. Marketing manager- knows more about the problem and the decisions that must be made. – 5.
Analyzing and using marketing information Customer Relationship Management (CRM)- managing detailed info about individual customers and carefully imaging customer touch points in order to maximize customer loyalty. Touch points- contacts: purchases, sales force contacts, service and support calls ,web sites visits, satisfaction surveys, credit and payment interactions, market research studies-every contact between the customer and the company. CRM- develops data warehouses and use sophisticated data mining. Data warehouse- is a accompanied electronic databases of finely detailed customer information that needs to be sifted though for gems.
The purpose of a data warehouse is not Just to gather information, but to pull it together into a central, Company intranet- central depository unit. Provides ready access to research information, reports, shared work documents, contact information for imposes and other stakeholders and more. Extranets- others in the market like suppliers, customers, resellers and select other network members may access a company’s extranet to update their accounts, arrange purchases and check orders against inventories to improve customer service. Other marketing information considerations Marketing research in small businesses and nonprofit organizations Small organization, Start-up businesses, non profit organizations International Marketing research- global companies. Common problems and limitations 1. Language 2. Literacy 3. Vary in attitudes Public policy and ethic in marketing research. 1. Intrusion on consumer privacy 2. And the misuse of research findings. Behavioral targeting- tracking consumers online browsing behavior and using it to target ads to them.