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MIS is a planned system of collecting, processing,

storing and disseminating data in the form of information needed to carry out the functions of management. According to Phillip KotlerA marketing

information system consists of people, equipment and

procedures to gather, sort, analyse, evaluate and distribute information to marketer

Kotlers Information Flows

Marketing intelligence Internal marketing information

Firm Environment

Marketing communications

Marketing Information System Marketing Managers


Developing Information
Assessing information needs
Internal records Marketing intelligence

Marketing Environment
Target markets Marketing channels



Distributing information

Marketing decision support analysis

Competitors Marketing research Publics Macroenvironment forces


Marketing decisions and communication

Begins and Ends with Information Users: Interacts with information users to assess information
Develops needed information from internal and external sources Helps users analyze information for marketing decisions Distributes the marketing information and helps managers use it for decision making






Internal report system- Internal database is gathered by customer databases, financial records and operations reports.

Marketing intelligence system- is the systematic collection and analysis of publicly available information about competitors and trends in the marketing environment. Marketing decision support system- coordinated collection of data, systems, tools and techniques with supporting software and hardware.
Marketing research system- is a systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization.

Anticipation of consumer demand- marketing managers have to keep updated info. about his or her consumers need and wants and for this mkis is helpful Complexity of marketing- marketing activity is becoming more complex and broader in scope. To cope up with it we require current information and the future information. To determine the economic indicators i.e demand & supply- marketing managers should have adequate info about the latest trends in market supply and price change. Moreover in order to forecast about future a marketing manager is always dependent on economic indicators. To determine the current development in technology- managers require adequate info. for determining current development in technology and this is possible through mkis. Understanding the consumer- fill he gap between marketer and customer. Marketing planning- effective marketing planning is required in terms of product planning, pricing, promotion and distribution. such planning will be possible only if the company is possessing adequate and relevant information. this is also possible through MIS.

Functional Information Systems Represent Functional Physical Systems

Functional information systems
Marketing information system Manufacturing information system Finance information system Human resource information system Information resource information system

Marketing function

Manufacturing function

Finance function

Human resources function

Information Services function

Physical system of the firm

An MIS Model

product place promotion price integrated mix

u u

Database Input
AIS marketing research marketing intelligence

Marketing Information System Model

Input subsystems
Accounting information system



Output subsystems D A T
Place subsystem Product subsystem

Internal sources
Marketing research subsystem

Promotion subsystem


Environmental sources
Marketing intelligence subsystem

Price subsystem

Integratedmix subsystem

Accounting Information System

u u

Sales order data is input. AIS provides data for

Periodic reports Special reports Mathematical models and knowledge-based models


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R E S E A R C H Recognition of information needs Effective decision making Systematic and objective Exude or disseminate information Analysis of information Recommendation for action Collection of information Helpful to managers

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Marketing Research
The American Marketing Association

(AMA) defined Marketing Research as:

The function that links the consumer, the customer, and public to the marketer through INFORMATION

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Definition of Marketing Research

"Marketing Research is the systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services." ---AMA
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Defining Marketing Research

Identification of Information Needed

Collection of Data

Identifying and Solving Marketing Problems

Analysis of Data Dissemination of Information Use of Information

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Marketing 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.

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Factors affecting marketing research


Method Used Resources Managerial influence.

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Features of marketing research

1. 2.

Wide and Comprehensive Scope

Systematic and Scientific


Collects and Analyses Data

Tool for Decision-Making

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Application 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

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Purposes 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 Identify market opportunities Understand the competition Benchmark effectiveness

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Marketing 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
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Need For Marketing Research

Why do businesses need accurate and up-to-date information? To undertake marketing effectively Changes in technology Changes in consumer tastes

Market demand
Changes in the product ranges of competitors Changes in economic conditions Distribution channels
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A Classification of Marketing Research

Marketing Research

Problem Identification Research Market Potential Research Market Share Research Market Characteristics Research Sales Analysis Research Forecasting Research Business Trends Research
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Problem-Solving Research

Segmentation Research

Product Research Pricing Research Promotion Research Distribution Research


A Classification of Marketing Research

Problem-Identification Research Research undertaken to help identify problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research. Problem-Solving Research Research undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.

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Problem-Solving Research
Determine the basis of segmentation Establish market potential and responsiveness for various segments Select target markets Create lifestyle profiles: demography, media, and product image characteristics PRODUCT RESEARCH Test concept Determine optimal product design Package tests Product modification Brand positioning and repositioning

Test marketing
Control store tests
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Problem-Solving Research



Optimal promotional budget

Sales promotion relationship

Optimal promotional mix Copy decisions Media decisions Creative advertising testing Evaluation of advertising effectiveness

Pricing policies

Importance of price in brand selection Product line pricing Price elasticity of demand Initiating and responding to price changes
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Problem-Solving Research

Types of distribution Attitudes of channel members

Intensity of wholesale & retail coverage

Channel margins Location of retail and wholesale outlets

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Marketing Research Process

2. 3.

5. 6. 7. 8. 9. 10.

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Define the Problem Establish the Research Objectives Determine Research Design Identify Information Types and Sources. Determine Methods of Accessing Data Design Data Collection Forms Determine Sample Plan and Size Collect the Data Analyze the Data Prepare and Present the Final Research Report


Define the Problem

Defining the problem is the single most important step in the marketing research process. Often studies are commissioned without a clear

understanding of the addressed.

problem that needs to be

Exploratory research is needed to define the problem so research may be conducted. Problem definition involves:
1. 2. 3.

Specifying the symptoms Itemizing the possible causes of the symptoms Listing the reasonable alternative courses of action that the marketing manager can undertake to solve the problem.

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Establish the Research Objectives

Research objectives identify what specific pieces

of information are necessary to solve the problem

at hand.

Research objectives step is the specification of the specific types of information useful to the managers as they grapple for a solution to the marketing problem at hand.

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Determine Research Design

There are three types of research design:
Exploratory Research Design- is defined as collecting information in an unstructured and informal manner. Examples: Reading periodicals, visiting competitors premises, examine company sales and profits vs. industry sales and profit, clipping service. 2. Descriptive Research Design- refers to a set of methods and procedure that describe marketing variables. Portray these variables by answering who, what, why and how questions. example: consumer attitude survey to your companies services. 3. Casual Research Design designs allow us to isolate causes and their effects. Casual research is conducted by controlling various factors to determine which factor is causing the problem. By changing one factor, say price, we can monitor its effect on a key consequence, such as sales. In other words, casual design allows us to determine causality, or which variable is causing another variable to change.
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Identify Information Types and Sources

Basically two types of data information available to a marketing researcher: I. Secondary data: Readily available / accessible Free of charge or Relatively Inexpensive II. Primary data: Problem focused Unbiased Up-to-date Proprietary
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Determine Methods of Accessing Data

Once the researcher has determined which type or types of information are needed, he or she must determine methods of accessing data. Methods of accessing external secondary data have improved over the last five years: Information processing technology. Easy and Quick retrieval. Internal data- company reports, salespersons, executives, MIS and other information sources. There are several different methods of collecting primary data including: Telephone surveys Mail surveys Door-to-door interviews Mall-intercept studies New data collection methods are emerging. 2007 Prentice Hall 1-36

Design Data Collection Forms

Questionnaires and observation forms must be designed with great care.

Questionnaires which record the information communicated by respondents or the respondents behavior as observed by the researcher

Structured Questionnaires - list questions that have

pre-specified answer choices. Unstructured questionnaires have open ended questions and/or questions that are asked based on a response.

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Determine Sample Plan and Size

A sample plan identifies who is to be sampled and how to select them for study. A sample element refers to a unit of the entity being


A sample Frame is a list from which the sample elements are drawn for the sample. Methods are available to help the researcher determine the sample size required for the research study.

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Collect the Data

Data collection is usually done by trained interviewers who are employed by field data collection companies to collect primary data. Being aware of errors that may occur is important. Non-sampling Errors are attributable to factors other than sampling errors.

Wrong sample elements to interview Securing participants who refuse to participate Not a home Interviewing subjects who give the wrong information. Hiring interviewers who cheat and fill out fictitious survey questionnaires.

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Analyze Data

Data analysis involves entering data into computer files,

inspecting it for errors and running tabulations and various

statistical tests.

Data cleaning process by which the raw data are checked to

verify that the data has been correctly inputted from the data
collection form to the computer software program. Use SPSS

Coding is the process of assigning all response categories a numerical value males=1, females=2. Tabulation which refers to the actual counting of the number of observations that fall into each possible response category.

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Prepare and Present the Final Research Report

Preparing the marketing research report involves describing the process used, building meaningful tables, and using presentation graphics for clarity.

Preparing the SPSS software allows you to prepare graphics to enhance your written or oral presentation.

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Role of MR
Situation Analysis Environment & Mkt SWOT

Strategy Development Mkt Program Development

Business scope Competitive advantage Set performance objectives


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Performance monitoring Refining strategies & program


The Role of Marketing Research

Customer Groups Consumers Employees Shareholders Suppliers Controllable Marketing Variables Product Pricing Promotion Distribution
Assessing Information Needs

Uncontrollable Environmental Factors Economy Technology Laws & Regulations Social & Cultural Factors Political Factors

Marketing Research

Providing Information

Marketing Decision Making

Marketing Managers Market Segmentation Target Market Selection Marketing Programs Performance & Control
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Product Research

Component of market research
whereby the characteristic of a good or

service, that will satisfy a recognized

need or want, are identified.

Qualitative Explorations

The target audience is identified (even if not totally precise), and some notion of the product category (or human need) is established, then qualitative research is the first step

The purpose is to develop in-depth understanding of the target consumertheir motivations, perceptions, fears, and preferences.

Perceptions of competitive products can be explored.

Unmet needs can be identified. New product ideas can be sought.

Qualitative Explorations contd

The qualitative

exploration serves to identify new

product possibilities as well as refine the targetmarket definition for those possibilities.
Qualitative research is also useful in determining

the starting points for ideation.

Concept Testing

testing identifies potentially successful

new products early on, so that you can focus limited research and development resources (and limited marketing resources) on the new product concepts with the greatest probability of consumer acceptance.

Analyst provides a suite of concept testing

systems and services.

Product Testing

products must be optimal to have a reasonable

chance for success.


testing is an essential step (or series of

steps) in the development of a new product.


Analyst offers a range of product-testing

services to help ensure that the new product will be


Steps involved in Product Research

Opportunity Identification Concept Screening Concept Testing Marketing Strategy Development Product Development Market Testing Product Introduction

Advertising/Promotion Research


Advertising and Promotion Research

Used to assist in determining market segments Plays a key role in helping creatives understand the audience

Used to make go/no go ad decisions and when to pull ads

Used to evaluate agency performance

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research is a specialized form of

marketing research conducted to improve the

efficiency of advertising.

research is the systematic gathering and

analysis of information to help develop or evaluate advertising strategies, ads and commercials, and media campaigns.
A subset of marketing research.

Types of Advertising Research

Customized Customized

research is conducted for a specific

client to address that clients needs. Only that

client has access to the results of the research.
Syndicated Syndicated

research is a single research study

conducted by a research company with its results

available, for sale, to multiple companies.

Methods of Advertising Research

Pre-market research

can be conducted to optimize ads for any medium optimize advertisement for any medium: radio, television, print (magazine, newspaper or direct mail), outdoor billboard (highway, bus, or train), or Internet. conducted after the advertising, either a single ad or an entire multimedia campaign has been run in-market. The focus is on what the advertising has done for the brand, for example increasing brand awareness, trial, frequency of purchasing.

Post-market research

Pre-Market Research
Consumer Jury. Rating Scales. Portfolio Tests.



Physiological Tests. Sales Tests. Day-after recall Tests.

Consumer Jury

Personal interview may be used or a group may be assembled & asked to vote on an alternative based on their preferences, interests, or influences to buy the product .

Provides a rating given by a group of consumers who

may represent potential buyers of the product.

Assumption: The respondent must like at least one advertisement.

Rating Scales:
Requires the establishment of standards for effective copy and numerical weights for each standard.

Ads are then rated in accordance with the scale values and a numerical score is obtained.

Advantage: Provides a list against which to check an ad & helps to single out the elements that are good or bad. Disadvantages: Different judges will rate the ad differently.

Portfolio Tests

Sometimes the ad is placed in dummy copies

of newspapers or magazines.
A group of ads, usually a mixture of test ads and

control ads, is placed in a portfolio.

Physiological Tests

are obtained using special laboratory equipments which record an individuals physiological responses to ads. A list of reactions like self pity, security, fear or nostalgia is set up. Alternative ads are then rated on how readers respond w.r.t. those reactions. A no. of techniques including word association, sentence completion, depth interview & story telling are adopted. Difficult to implement, since skilled interviewers are required

Sales tests

Sales tests are a useful measure of advertising

effectiveness when advertising is the dominant

element, or the only variable, in the company's marketing plan. Sales response may not be immediate and sales tests, particularly field studies, are often costly and time-consuming.

Day-after recall Tests

Research method that tests consumers memories the day after they have seen an ad, to assess the ad's effectiveness.

Post-Market Research

either periodic or continuous in-market research monitoring a brands performance. Including brand awareness, brand preference, product usage and attitudes. Some post-testing approaches simply track changes over time, while others use various methods to quantify the specific changes produced by advertising - either the campaign as a whole or by the different media utilized. Overall, advertisers use post-testing to plan future advertising campaigns, so the approaches that provide the most detailed information on the accomplishments of the campaign are most valued.

Problems in media selection


not sufficient to select the major media, you selections within

also need to make specific these general types of media.


of media has to be considered before

selecting it as it has great influence on effectiveness of the advertisement.

Problem of audience measurement

Variation in composition and sizes of audience of

given media vehicle.

Variation due to geography. Variation due to rate at which different vehicles

accumulate audiences.
Difficulty of estimating value of different sizes of

message units within and between media.

Estimating actual geographical area covered.

Key Issues in Advertising and Promotion Research

Reliability: The research method produces consistent findings over time.

Validity: The information generated is relevant to

the research questions being investigated. Trustworthiness: Usually applied to qualitative data; does the data seem to make sense? Meaningfulness: An assessment of limitations of

the data.
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