mis
DESCRIPTION
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Marketing Information Marketing Information SystemsSystems
& & Marketing ResearchMarketing Research
Learning outcomes Understand the importance of accurate and
timely information to any organisation Explore the differences between marketing
and market research Understand the importance of Marketing
Information System and its parts Explain the marketing research process
IntroductionIntroduction
Marketing was the first functional area to exhibit an interest in MIS
The marketing information system has three subsystems; (1)Accounting Information System,(2) Marketing Research, and (3) Marketing Intelligence
Functional information systems: the conceptual systems should be "mirror images" of the physical systems
Marketing Information SystemMarketing Information System An organised way of continually gathering and
analysing information from every source relevant to the organisation
MIS consist of people, equipment, and procedures to gather, sort, analyse, evaluate and distribute needed information to the marketing decision makers
A MIS incorporates & combine the main aspects of marketing research into a centralised management function which will maintain a tight control on research procedures & ensure an accurate data bank of information about customers, products etc.
A MIS which can link external data with internal sources, such as sales record, customer records & competitor information will provide a strong basis for informed marketing decisions
Marketing Information System 2Marketing Information System 2
Developing Information -Involves obtaining the needed information for managers from different sources
Internal data is secondary research already available within the organisation.
This can come from -Accounting
-Sales force -Marketing -Manufacturing
Functional information systemsFunctional information systems
Marketinginformation
system
Manufacturinginformation
system
Financeinformation
system
Human resourceinformation
system
Marketingfunction
Manufacturingfunction
Financefunction
Humanresourcesfunction
Physical system of the firmPhysical system of the firm
Functional Information Systems Functional Information Systems RepresentRepresent
Functional Physical SystemsFunctional Physical Systems
Information resource
informationsystem
Information Servicesfunction
The Marketing Information The Marketing Information System (MKIS)System (MKIS)
Kotler's marketing nerve center 3 information flows
– Internal– Intelligence (from environment)– Communications (to environment)
FirmEnviron-ment
Marketing intelligence
Marketing communications
Internalmarketinginformation
Kotler’s Information FlowsKotler’s Information Flows
Marketing Information Marketing Information System (MKIS) -DefinitionSystem (MKIS) -Definition
A computer-based system that works in conjunction with other functional information systems to support the firm's management in solving problems that relate to marketing the firm's products.
An MKIS ModelAn MKIS Model Output– product– place– promotion– price– integrated mix
Database Input– AIS– marketing research– marketing intelligence
Input subsystems
Output subsystems
DD
AA
TT
AA
BB
AA
SS
EE
Accounting information
system
Marketing research
subsystem
Marketing intelligence subsystem
Internal sources
Environmental sources
Product subsystem
Place subsystem
Promotion subsystem
Price subsystem
Integrated-mix
subsystem
Users
DataData InformationInformationMarketing Information System ModelMarketing Information System Model
Accounting Information SystemAccounting Information System
Sales order data is input. AIS provides data for
– Periodic reports– Special reports– Mathematical models and knowledge-based
models
Marketing ResearchMarketing Research
Marketing research is the systematic and objective identification, collection, analysis, dissemination, and use of information for the purpose of assisting management in decision making related to the identification and solutions of problems and opportunities in marketing
Application of MRApplication of MR
Marketing research activities can be divided into four main strategic categories:– Market Analysis
» Identifying and evaluating opportunities
» Competitive Analysis
– Market Segmentation» Analyzing market segments and selecting target markets
– Marketing Strategy Design» Planning and implementing a marketing mix
– Analyzing Marketing Performance
Purposes of Marketing ResearchPurposes of Marketing Research
Identify changes in the existing market Build up a knowledge bank Improve market awareness & opportunities Reduce risk and uncertainty Support marketing mix decisions Support marketing planning and controls Improve understanding of marketing Solve ad hoc problems
Marketing and Market ResearchMarketing and Market Research
Marketing research - is the gathering of information on all activities of marketing
Market research - is the gathering of information on a particular market for a product or service
Marketing research has a wider scope than market research
Types of research informationTypes of research information
Market research - information about the market for a given product/service - likely demand
-market characteristics & trends -market share
Promotion research -effects of advertising on sales -effectiveness of promotion methods/media; sales areas
Types of research information….cont’d
Product research covers information about the proposed/improved product: -competing products -customer acceptance -test marketing of potential new users
Price research - customer perception of price/quality/value -profit margin
Distribution research -location & design of distribution centre -costs of transportation/storage
Types of researchTypes of research
Exploratory research Problem solving research Qualitative research -seeks in-depth,
open-ended and unquantifiable information describing opinions, values etc, rather than sizes and amounts in numerical form
Quantitative research -seeks structured responses that can be quantified in numerical form rather than general, open-ended information
The Research ProcessThe Research Process
1. Define the Research Problem
2. Determine Research Design and Data Sources
3. Develop Sample Design and Sample Size
4. Develop Measurement Instruments
5. Collect and Prepare Data
6. Analyze and Interpret Data
7. Communicate Results
Step 1: Identifying and Formulating Step 1: Identifying and Formulating the Research Problem/Opportunitythe Research Problem/Opportunity
Process begins with the recognition of a marketing problem or opportunity:– Marketing Problem: Set of circumstances in a market
and/or in the company that requires modified or new marketing strategy to respond in a way that will maintain or improve performance.
– Market Opportunity: Set of circumstances in a market that defines a situation in which a company can improve performance by creating modified or new marketing strategy.
Step 2: Determine the Research Step 2: Determine the Research Design and Data SourcesDesign and Data Sources
Exploratory, Descriptive, Causal Secondary vs. Primary Data Survey research Observation research Focus Groups Experiments
(explanation follows…)
Two Research MethodsTwo Research Methods
Secondary: use of existing research already done– Government– Consulting firms– Newspaper and magazine articles
Primary: creation of specific studies to answer specific questions
Primary Research MethodsPrimary Research Methods
Surveys Experimentation Observation Focus groups In-depth interviews Projective techniques Physiological
Measures
SurveysSurveys
Planned questions– Open-ended
– Closed-ended
Need large sample sizes for precise conclusions
Forms– Mail
– Telephone
– Mall Intercept
– Computer/Internet
Problem questions– Leading
– Ambiguous
– Unanswerable
– Two questions in one
– Non-exhaustive question
– Non-mutually exclusive answers
ExperimentationExperimentation
Subjects in different groups treated differently– E.g., for some, “target”
product is given better shelf space
– E.g., some get coupon Can help isolate causes Subject is biased by
questions—does not know how others are treated
ObservationObservation
Looking at consumes in the field—e.g.,– Searching for product category area– Number of products inspected and
time spent on each– Involvement of others– Behavior under limiting
circumstances (e.g., time constraints)
Focus GroupsFocus Groups
Groups of 8-12 consumers assembled
Start out talking generally about context of product
Gradually focus in on actual product
In-depth interviewsIn-depth interviews
Structured vs. unstructured interviews
Generalizing to other consumers
Biases
Projective TechniquesProjective Techniques
Measurement of attitudes consumers are unwilling to express
Consumer discusses what other consumer might think, feel, or do
Step 3: Design SampleStep 3: Design Sample
Sample: a subset from a larger population Probability vs. no probability sample Number of respondents Method of contact Management of non-response Detailed field instructions Handling of data
Step 4: Develop Measurement Step 4: Develop Measurement InstrumentsInstruments
What observation form or questionnaire will be best suit the needs of the project?
Anonymous? Confidential? Structured vs. open-ended What types of rating scales? What is the layout going to look like?
Step 5: Collect and Prepare Step 5: Collect and Prepare DataData
Editing and Coding Data Entry Data Cleansing Summarization Error Assessment Reliability/Validity
Types of dataTypes of data
Primary data -information or statistics observed and recorded or collected directly from respondents for the first time during a marketing research study
Primary information
– provides information of current needs
– but is expensive and time consuming
Types of dataTypes of data
Secondary data Information already collected or published and compiled inside or outside the organisation
Secondary information
– quick, relatively inexpensive
– check that the information is Relevant, Accurate, Current & Impartial
Using secondary data
As a backdrop to primary research eg when doing basis research in unfamiliar territory
As a substitute for research - information already available or in cases where it is not worth doing primary research
As a technique in itself - eg for collecting historic data on market trends
Step 6: Analyzing the DataStep 6: Analyzing the Data
Purpose of the analysis is to interpret and draw conclusions from the mass of collected data
Must select appropriate analytic tools to match data, research objectives, and information needs
Step 7: Communicating ResultsStep 7: Communicating Results
Researchers must remember to speak in managerial terms rather than in the terminology understood only by research specialists
Reports should outline technical details of the research project and methods in an appendix, if at all
Researchers should spell out their conclusions in clear, concise, and actionable termsBe open-minded to findings, be willing to refute
expectations, and acknowledge limitations.
Marketing Intelligence Marketing Intelligence Subsystem Subsystem
A relatively unstructured approach to gathering information about the marketing environment
Sources: -regularly scanning newspapers
-using specialised media cutting service -listening to employees -listening to intermediaries -employing a consultant.
Key concept in assessing the quality Key concept in assessing the quality of research.of research.
Validity: refers to how well a research design (and the research method and the measures or questions used) measure what it claims to measure.
Reliability : refers to the consistency of research results. In other words, if we repeat the research, or if a different interviewer undertake the fieldwork, will we get the same result
Representative ness: