Understanding the Importance of Marketing Information for Effective Decision Making
This article discusses the significance of gathering marketing information, the negative impact of information overload, and the benefits of introducing a Marketing Information System (MIS) for effective decision making.
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About Understanding the Importance of Marketing Information for Effective Decision Making
PowerPoint presentation about 'Understanding the Importance of Marketing Information for Effective Decision Making'. This presentation describes the topic on This article discusses the significance of gathering marketing information, the negative impact of information overload, and the benefits of introducing a Marketing Information System (MIS) for effective decision making.. The key topics included in this slideshow are Marketing Information, MIS, Decision Making, Information Overload, Marketing Environment,. Download this presentation absolutely free.
1. Marketing Information
2. Why gather information? Companies need information about their: Customers needs Marketing environment Service processes Pricing Advertising and Promotion Competition
3. Information Overload Marketing managers do not need more information, they need better information. Need to weigh benefits of information against costs of information.
4. Marketing Information System An MIS consists of people, equipment, and procedures to gather, sort, analyze, and distribute needed, timely, and accurate information to marketing decision makers. An MIS consists of people, equipment, and procedures to gather, sort, analyze, and distribute needed, timely, and accurate information to marketing decision makers.
5. Internal Databases: Electronic collections of information obtained from data sources within the company. Marketing Intelligence: Systematic collection and analysis of publicly available information about competitors and developments in the marketing environment. Marketing Research: Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. Sources of Marketing Information
6. Primary vs. Secondary Data Do we collect our own data or acquire someone elses? Pros and Cons of Primary vs. Secondary Data Relevance Timeliness Cost Availability
7. Secondary Data Information that already exists somewhere: Internal databases Commercial or syndicated data services Government sources Published sources (newspapers, magazines, etc.) Key sources of secondary data found on the Web: Media data: Arbitron, Nielson, ABC Government data: Census, FTC, SBA Consumer data: SMRB, ComScore
8. Census Data Census.gov
9. Consists of information collected for the specific purpose at hand. Determine: Research approach Contact methods Sampling plan Research instruments Primary Data
10. Primary Data - The Marketing Research Process
11. Exploratory Research : Gathers preliminary information to help define the problem, suggest hypotheses and guide future research. Descriptive Research : Describes things (e.g., market potential for a product, demographics of our customers and consumer attitudes). Experimental Research : Tests hypotheses about cause-and-effect relationships. Types of Marketing Research
12. Research Modalities Observational Survey Causal Experiments Tests
13. Gathering data by observing people, actions, and situations. Ethnographic research: Observation in a natural environment Spy or Mystery Shoppers Shopping your own organization (Movie: The Doctor) Mechanical observation Observational Research
14. Mystery Shopper Survey for Restaurants
15. Mechanical Observation Devices People meters Scanners Galvanometers Eye Cameras FMRI
16. Most popular method for primary data collection. Best suited for gathering descriptive information. Can gather information about almost anything. Several formats available Paper, Mail, Phone, Online Survey Research
17. Pros: Can collect large amounts of information at a relatively low cost per respondent. Generates more truthful responses than phone interviews. Improved validity (no interviewer bias). Cons: Not flexible once printed. Longer time horizon. Low response rate. Diminished control over sample. Mail Surveys
18. Phone Surveys Pros: Faster time horizon Greater flexibility than mail Better response rates than mail Cons: Higher costs than mail Interviewer bias Limited quantity of data can be collected
19. Pros: Highest flexibility Most extensive data-gathering potential Highest speed of data collection Best response rates Cons: Highest cost per respondent Worst interviewer bias potential Not scalable can only target so many people In-Person Interviews (Individual & Group)
20. Focus Groups
21. Pros: Least expensive Quickest way to gather information Offers excellent control over sample. Decent flexibility Good response rates Major Con Limited sample demographics (but getting better!) Online Surveys
22. Sample: segment of the population selected to represent the entire population of interest. Three decisions: Who to survey? Sampling unit How many people should be surveyed? Sample size How to survey the sample? Sampling procedure Random vs. convenience samples Will your sample generalize to the market? Sampling Plan
23. Characteristics of Good Marketing Research Scientific method Research creativity Multiple methods Balances benefits & costs of information Healthy skepticism Good research questions
24. Survey Writing Workshop Writing Good Survey Questions and Good Surveys Question Types
25. Writing Good Surveys Ensure questions are unbiased . BAD How much better do you like John McCain than Barack Obama? BETTER Which candidate do you prefer - John McCain or Barack Obama?
26. Writing Good Surveys Keep questions simple . BAD Considering the candidates running for office this election, who is your preferred candidate? BETTER Which candidate do you prefer?
27. Writing Good Surveys Make questions specific . BAD Please tell us what you think of this restaurant. BETTER What did you think of our restaurants service, food, atmosphere, host, etc.
28. Writing Good Surveys Avoid jargon and sophisticated words. BAD Do you consider yourself a metrosexual ? BETTER Would you describe yourself as someone who enjoys cooking, nail treatments, etc.?
29. Writing Good Surveys Avoid ambiguity unless its called for. BAD OR OK What do you think of Apples products ? BETTER What do you think of Apples I-Phone ?
30. Writing Good Surveys Avoid negatives . BAD Which of the following would you prefer not to sample? BETTER Which of the following would you prefer to sample?
31. Writing Good Surveys Avoid hypotheticals . BAD Imagine you were driving a car that handles and rides smoothly BETTER Consumer actually test-drives car that handles and rides smoothly.
32. Writing Good Surveys Use mutually exclusive categories. BAD What is your age? 18-24 ___ 24-30 ___ 30-35 ___ BETTER What is your age? 18-24 ___ 25-30 ___ 31-35 ___
33. Writing Good Surveys Allow for Other in fixed response questions. BAD Which brands of Cola do you consume? Coke ____ Pepsi ____ RC ____ BETTER Which brands of Cola do you consume? Coke ____ Pepsi ____ RC ____ Other ____
34. Writing Good Surveys Avoid double-barreled questions. BAD Would you describe yourself as someone who enjoys cooking, nail treatments, and/or fashion? BETTER Would you describe yourself as someone who enjoys cooking? (then ask about nail treatments and fashion in two separate questions)
35. Effective Survey Tactics Beware the order in which questions are asked. Avoid mis-cues. Keep your surveys as short as possible without sacrificing the quantity or quality of information obtained. Provide explicit answering instructions (i.e. Check All that Apply or Check One) for every question. Dont assume the subject knows what to do Know how youre going to analyze the data before designing your survey.
36. Question Types - Dichotomous In arranging this trip, did you contact American Airlines? Yes No
37. Question Types Multiple Choice With whom are you traveling on this trip? No one Spouse Spouse and children Children only Business associates/friends/relatives An organized tour group
38. Question Types Likert Scale Indicate your level of agreement with the following statement: Small airlines generally give better service than large ones. Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree
39. Question Types Semantic Differential American Airlines Large ....Small Experienced..Inexperienced Modern...Old-fashioned
40. 4-40 Question Types Importance Scale Airline food service is _____ to me. Extremely important Very important Somewhat important Not very important Not at all important
41. Question Types Rating Scale American Airlines food service is _____. Excellent Very good Good Fair Poor
42. Question Types Intention to Buy Scale How likely are you to purchase tickets on American Airlines if in-flight Internet access were available? Definitely buy Probably buy Not sure Probably not buy Definitely not buy
43. Question Types Completely Unstructured What is your opinion of American Airlines?
44. Question Types Word Association What is the first word that comes to your mind when you hear the following? Airline ________________________ American _____________________ Travel ________________________
45. Question Types Sentence Completion When I choose an airline, the most important consideration in my decision is: _______________________________________________________________.
46. Question Types Story Completion I flew American a few days ago. I noticed that the exterior and interior of the plane had very bright colors. This made me think and feel... Now complete the story. _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ ___________________________________________________
47. Question Types Picture (Empty Balloons)
48. Question Types Thematic Apperception Test Make up a story that reflects what you think is happening in this picture.
49. Questions du Jour Should Marketing Research findings ever be ignored? Is Marketing Research always necessary or beneficial?