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Chapter 8. Improving Decisions with Marketing Information. Marketing Information Inputs to Marketing Strategy Planning Decisions (Exhibit 8-1). Marketing Information Inputs to Marketing Strategy Planning Decisions ( Exhibit 8-1). Information for marketing decisions.

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Chapter 8

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Chapter 8

Chapter 8

Improving Decisions with Marketing Information

Marketing information inputs to marketing strategy planning decisions exhibit 8 1

Marketing Information Inputs to Marketing Strategy Planning Decisions(Exhibit 8-1)

Marketing information inputs to marketing strategy planning decisions exhibit 8 11

Marketing Information Inputs to Marketing Strategy Planning Decisions (Exhibit 8-1)


for marketing


  • Marketing information systems

  • Accessing multimedia data

  • Data warehouse

  • Decision support systems

  • Marketing models

  • Marketing Research

  • Role of research specialist

  • Scientific method

  • Steps in marketing research

    • Define problem

    • Analyze situation

    • Gather problem specific data

    • Interpret the data

    • Solve the problem

Who does the work

Who Does the Work?

Effective research requires cooperation

That marketing research geek doesn’t understand my business – she doesn’t even know my competitors!

That overpaid Gen Y is clueless – she doesn’t even know how a chi-square is computed!

Effective Research Requires Cooperation

Collaboration Is Absolutely Necessary!

Changes are under way in marketing information systems

Changes Are Under Way in Marketing Information Systems

MIS Makes Information Available and Accessible

Get More Information Faster and Easier

Marketing Managers Must Help Develop an MIS

An Intranet Is Easy to Update

Elements of a complete marketing information system exhibit 8 2

Elements of a Complete Marketing Information System(Exhibit 8-2)

The impact of an mis

The Impact of an MIS

Information for implementation, planning and control

Many Firms Are Not There Yet

Scientific method

Scientific method

The process by which scientists, collectively and over time, endeavor to construct an accurate (that is, reliable, consistent and non-arbitrary)representation of the world.

The scientific method has four steps

The scientific method has four steps

  • Observation and description of a phenomenon or group of phenomena.

  • Formulation of an hypothesis to explain the phenomena

  • Use of the hypothesis to predict the existence of other phenomena, or to predict quantitatively the results of the new observations.

  • Performance of experimental tests of the predictions by several independent experimenters and properly performed experiments.

The scientific method and marketing research exhibit 8 3

The Scientific Method and Marketing Research(Exhibit 8-3)

Defining the problem

Analyzing the situation

Early identification of solution

Feedback to previous steps

Getting problem-specific data

Interpreting the data

Solving the problem

Chapter 8

Explain the differences between

data and information

Changing View of the Marketing Research Process

  • Five Situations When Marketing Research Not Needed

    • Information already available

    • Insufficient time frame

    • Inadequate resources

    • Costs outweigh the value of the research

    • Strategic importance of the problem

Defining the problem step 1

Defining the Problem – Step 1

Finding the Right Problem Level

Problems vs. Symptoms

Setting Research Objectives

Analyzing the situation step 2

Analyzing the Situation – Step 2

What Information Do We Already Have?

Situation Analysis Helps Educate a Researcher

Checking your knowledge

Checking Your Knowledge

  • Edna Bates, a marketing researcher who is an expert in

  • customer satisfaction research, is asked by a client to

  • conduct a study dealing with a completely unfamiliar

  • research topic. Edna consults secondary data to gain more

  • insight about this unfamiliar area. Edna is engaged in the

  • _________ stage of the marketing research process.

  • problem definition

  • situation analysis

  • gathering problem-specific data

  • data interpretation

  • solving the problem

Secondary and primary data exhibit 8 4

Company files, intranet, reports, marketing information system, people, sales, cost data

Inside company

Equipment (video, scanner, etc.); website analysis; personal approaches


Internet, libraries, governments, trade associations, universities, private research organizations

Outside company

In-depth and focus group interviews; online, mail, phone, personal surveys; panels


Secondary and Primary Data (Exhibit 8-4)

Secondary data sources

All data sources

Primary data sources

Private sources are useful too

Private Sources Are Useful Too

The bottom line on secondary data

The Bottom Line on Secondary Data


Research Proposal

Situation Analysis – A Lot For a Little

What Else Is Needed?

Getting problem specific data step 3



  • Asking people

  • Formal or informal

  • Qualitative questioning is open-ended

  • Monitoring behaviors

  • Human or machine

  • Costs coming down

Getting Problem-Specific Data – Step 3


Focus groups stimulate discussion

Focus Groups Stimulate Discussion

Focus group interviews

A popular type of qualitative research

Involves a small group (usually 6 to 10 people) in a discussion—usually for about 1 hour

A group leader ("interviewer") unobtrusively guides the discussion

Designed to get in-depth, open-ended responses, not intended to be "representative" of larger market

Group interaction stimulates thinking and reactions

Analysis of results is subjective

May involve videotaping and or “on-line sessions” and other technologies

Focus Group Interviews

Structured questioning gives more objective results

Structured Questioning Gives More Objective Results

Can be summarized in numbers

Seeks structured responses


Faster response & analysis

Surveys come in many forms







Surveys Come in Many Forms

Mail and Online


Personal Interview

Checking your knowledge1

Checking Your Knowledge

  • A researcher wants to study 1,000 consumers and

  • needs information about a lot of personal and

  • sensitive issues. Which of the following would be

  • the best way to gather this information?

  • Mail survey

  • Focus group

  • Telephone survey

  • Face-to-face interview

  • Experiment

Observing what you see is what you get

Observing – What You See Is What You Get

Observation In Common in Advertising Research

Website Analysis

Checkout Scanners “See” A Lot

Consumer Panels

Experimental method controls conditions exhibit 8 5

Difference in response between two groups

Average for group who saw Ad #1 = 3.2

Average for group

who saw Ad #2 = 4.6






Experimental Method Controls Conditions (Exhibit 8-5)

Half of the people see Ad #1

Representative group of customers

Half of the people see Ad #2

What conclusion can you draw from this research?

Interactive exercise types of data

Interactive Exercise: Types of Data

Interpreting the data step 4 exhibit 8 6

Interpreting the Data – Step 4 (Exhibit 8-6)

Key concerns in data interpretation

Key Concerns in Data Interpretation





Confidence Intervals

Ethical issues in marketing research

Withholding Information

Unauthorized Disclosure of Personalized Information

Disguised Sales Pitches

Lying with Statistics

Ethical Issues in Marketing Research

Checking your knowledge2

Checking Your Knowledge

  • A sales training firm wants feedback on the quality of its

  • classes and training services. The firm planned to send

  • mail surveys to CEOs of its client companies to get the

  • needed information. However, one executive objected to

  • the survey plan, saying, “CEOs don’t attend our classes.

  • How will they know if the classes are any good?” Another

  • executive added, “If the survey isn’t relevant to the CEOs, it

  • will be thrown away and we’ll get no data.” It appears that

  • the research design presents problems with:

  • response rate.

  • relevance of population.

  • validity.

  • improper statistical analysis.

  • both A and B.

Interactive exercise confidence interval

Interactive Exercise: Confidence Interval

Solving the problem step 5

Solving the Problem – Step 5

Actionable Results

Lack of Impact?

Managers Need to Know About Research

Quality of Suppliers Is Variable

Needed: Time, Forethought, Money

Checking your knowledge3

Checking Your Knowledge

  • A marketing research firm conducted a telephone survey

  • for a consumer products company. It provided new and

  • interesting information about brand image, the competition,

  • and other topics. At the end of the research company’s

  • results presentation, the sales manager commented, “This

  • is all interesting information, but it doesn’t tell me why our

  • market share is declining among 18 to 34 year old women,

  • nor does it offer me any suggestions about actions I can

  • take to deal with the situation.” The sales manager’s

  • complaint suggests that the research suffers from problems

  • with:

  • a lack of action implications for management.

  • poor planning by the researcher and managers at the outset of the project.

  • poor sampling.

  • a low response rate.

  • both A and B.

International marketing research

International Marketing Research

Research Contributes to Success

Accurate Data—Hard To Find?

Coordinate and Standardize

Use Local Researcher

You should now be able to

You should now be able to:

  • Know about marketing information systems.

  • Understand the scientific approach to marketing research.

  • Know about methods for collecting secondary and primary data.

  • Understand the role of observing, questioning, and using experimental methods in marketing research.

Key terms

Key Terms

  • Marketing research

  • Marketing information system (MIS)

  • Intranet

  • Data warehouse

  • Decision support system (DSS)

  • Search engine

  • Marketing dashboard

  • Marketing model

  • Scientific method

  • Hypotheses

  • Marketing research process

  • Situation analysis

  • Secondary data

  • Primary data

  • Research proposal

  • Qualitative research

  • Focus group interview

  • Quantitative research

  • Response rate

  • Consumer panel

Key terms1

Key Terms

  • Experimental method

  • Statistical packages

  • Population

  • Sample

  • Confidence interval

  • Validity

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