Chapter 4 Managing Marketing Information to Gain Customer Insights Customer Insights Fresh understandings of customers and the marketplace derived from marketing information that becomes the basis for creating customer value and relationships Marketing Information Systems People and procedures dedicated to assessing information needs developing the needed information and helping decision makers to use the information to generate and validate actionable customer and insights market Developing Marketing Information Internal databases Electronic collections of consumer and market information obtained from ata sources within the company network Competitive Market Intelligence The systematic collection and analysis of publicly available information about consumers competitors and developments in the marketing environment Marketing concept A management orientation that focuses on identifying and satisfying c onsumer needs to ensure the organization s long term profitability Market research The systematic design collection analysis and reporting of data relevant to a specific marketing situation facing an organization Exploratory research Marketing research used to gather preliminary information that will help define problems and suggest hypotheses Descriptive research Marketing research used to better describe marketing problems situations or markets Casual research Marketing research used to test hypotheses about cause and effect relationships Secondary data Information that already exists somewhere having been collected for another purpose Primary data Information collected for the specific purpose at hand Primary Data Collection Research Approaches Contact Method Sampling Plan Research Instruments 1 Chapter 4 Managing Marketing Information to Gain Customer Insights Observation Survey Experiment Mail Online Telephone Personal Sampling unit Sampling size Sampling procedure Questionnaire Mechanical instruments Observational research Gathering primary data by observing relevant people actions and situations Ethnographic research with consumers in their natural environments A form of observational research that involves sending trained observers to watch and interact Netnography research observing consumers in a natural context on the Internet Flexibility Quantity of data that can be collected Control of interviewer effects Control of sample Speed of Data Collection Response Cost Mail Telephone Personal Online Poor Good Good Good Fair Good Excellent Excellent Excellent Fair Poor Fair Poor Fair Excellent Excellent Good Good Excellent Excellent Rate Poor Poor Good Good Good Fair Poor Excellent Survey research Gathering primary data by asking people questions about their knowledge attitudes preferences and buying behavior Experimental Research treatments controlling related factors and checking for differences in group resources Strengths and Weakness of Contact Methods Gathering primary data by selecting matched groups of subjects giving them different Involves talking with people in their homes or offices on the street or in shopping malls Individual interviewing Focus Group Interviewing Personal interviewing that involves inviting six to ten people to gather for a few hours with a trained interviewer to talk about a product service or organization The interviewer focuses the group discussion on important issues Online Market Research Collecting primary data online through Internet surveys online focus groups web based experiments or tracking consumer s online behavior Online focus groups Gathering a small group of people online with a trained moderator to chat about a product service or organization and gain qualitative insights about consumer attitudes and behavior Sample A segment of the population selected for market research to represent the population as a whole Research Instruments Questionnaires by far the most common instrument whether administered in person by phone by e mail or online Questionnaires are very flexible there are many ways to ask questions Closed end questions include all the possible answers and subjects make choices among them Examples include multiple choice questions and scale questions Mechanical devices measure subjects physical responses Nielsen Media Research attaches people meters to television sets cable boxes and satellite systems in selected homes to record who watches which programs Checkout scanners to record shoppers purchases Probability Sample Simple random sample Every member of the population has a known and equal chance of selection Stratified random sample The population is divided into mutually exclusive groups such as age groups and random samples are drawn from each group Cluster area sample The population is divided into mutually exclusive groups such as blocks and the researcher draws a sample of the groups to interview Nonprobability Sample 2 Chapter 4 Managing Marketing Information to Gain Customer Insights Convenience sample The researcher selects the easiest population members from which to obtain information Judgment sample The researcher uses his or her judgment to select population members who are good prospects for accurate information Quota sample The researcher finds and interviews a prescribed number of people in each of several categories Mechanical Instruments Although questionnaires are the most common research instrument researchers also use mechanical instruments to monitor consumer behavior Nielsen Media Research attaches people meters to television sets cable boxes and satellite systems in selected homes to record who watches which programs Retailers likewise use checkout scanners to record shoppers purchases Customer relationship management CRM Managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty Objectives Review To create value for customers and build meaningful relationships with them marketers must first gain fresh deep insights into what customers need and want Such insights come from good marketing information As a result of the recent explosion of marketing technology companies can now obtain great quantities of information sometimes even too much The challenge is to transform today s vast volume of consumer information into actionable customer and market insights Explain the importance of information in gaining insights about the marketplace and customers pp 99 100 The marketing process starts with a complete understanding of the