CH4 LOs - Marketing Analytics: Gaining customer insights

Question 1

[LO1] explain the importance of information in gaining insights about the marketplace and customers.

Answer 1

> marketing process starts with a complete understanding of the marketplace and consumer needs and wants.
marketers need quality information in order to produce superior value and satisfaction.
company also requires info on actors and forces in the marketplace.
information is an input for making better decisions, an important strategic asset and a marketing tool.

Question 2

[LO2] define the Marketing Information System (MIS)

Answer 2

> the (MIS) consists of people and procedures for assessing info needs, developing the needed info and helping decision makers to use the info to generate and validate actionable customer and market insights.

Question 3

[LO2] how many parts does the MIS consist of?

Answer 3

> 3

Question 4

[LO2] discuss the 1st of 3 MIS parts.

Answer 4

1. MIS assess information needs which serve marketers and managers, and also external partners.

Question 5

[LO2] discuss the 2nd of 3 MIS parts.

Answer 5

2. MIS develops information from internal databases, marketing intelligence activities and marketing research.

Question 6

[LO2] discuss the 3rd and final MIS part.

Answer 6

3. MIS helps marketing analytics whereby marketers analyse and use info to develop customer insights, make marketing decisions and manage customer relationships.

Question 7

[LO2] define and discuss ‘Internal Database’

Answer 7

> provides info on company’s own operations and departments.

> Obtained quickly and cheaply, needs t be adapted for marketing decisions.

Question 8

[LO2] briefly explain the role of ‘Marketing Intelligence Activities’

Answer 8

> supply everyday info about developments in external marketing environment.

Question 9

[LO2] briefly define ‘Marketing research’

Answer 9

> collecting info relevant to specific marketing problems faced by the company.

Question 10

[LO3] how many steps are in the marketing research process?

Answer 10

> 4

Question 11

[LO3] briefly explain the 1st of the 4 processes in marketing research.

Answer 11

1. Defining the problem and setting the research objective, which may be exploratory, descriptive or causal research.

Question 12

[LO3] briefly explain the 2nd of the 4 processes in marketing research.

Answer 12

2. Developing a research plan for collecting date from primary and secondary resources.

Question 13

[LO3] briefly explain the 3rd of the 4 processes in marketing research.

Answer 13

3. Implementing the market research plan - gathering, processing and analysing the information.

Question 14

[LO3] briefly explain the 4th of the 4 processes in marketing research.

Answer 14

4. Interpreting and reporting the findings - only presenting important findings and insights and allowing all parties to interpret the parties.

Question 15

[LO3] define ‘Exploratory research’

Answer 15

> explores / gathers preliminary info to help define the problem.
suggests a hypothesis

Question 16

[LO3] define ‘Descriptive research’

Answer 16

> describes marketing problems, situations, or markets.

> gathers extra data on topics that have been researched previously.

Question 17

[LO3] define ‘Causal research’

Answer 17

> tests the hypothesis about the cause-and-effect relationships.

Question 18

[LO3] briefly explain and discuss ‘Secondary resources’

Answer 18

> (internal/external) provides info quicker and cheaper, and can yield info that a company cannot collect itself.
(CON) needed info may not exist.
must be: relevant, accurate, current and impartial (unbiased)

Question 19

[LO3] briefly explain and discuss ‘Primary research’

Answer 19

> research done by the entity.
must evaluate the pros and cons of each of the primary data collection methods, and the pros and cons associated with each method’s contact method.

Question 20

[LO4] Explain how companies analyse and use marketing information.

Answer 20

> MIS data requires extensive analysis. (advanced statistical analysis / application of analytical models)
Marketing information has no value until its used to make better marketing decisions.

Question 21

[LO4] briefly explain and discuss ‘Customer relationship management’

Answer 21

> CRM: special software and analysis techniques used to analyse individual customer data.
Integrates, analyses and applies the individual data contained in the entities databases.

Question 22

[LO5] to whom / where do special market research situations apply to?

Answer 22

WHOM:
> Small businesses
> Not-for-profits
WHERE
> International research
> Public policy and ethics

Question 23

[LO5] briefly discuss the special marketing research situation(s) that small business / not-for-profits face.

Answer 23

> these entities have limited budgets that prevent them from using extensive market research methods, but research can still be conducted effectively using less expensive methods.

Question 24

[LO5] briefly discuss the special marketing research situations that international research faces.

Answer 24

> follows the same steps as domestic research, but faces problems such as:
> different buying patterns
> Scarcity of secondary data
> Variety in consumer attitude
> Willingness to respond

Question 25

[LO5] discuss special marketing circumstance faced via ‘Public policy and ethics’

Answer 25

> All organisations need to act responsibly in terms of public policy and ethical issues surrounding market research, including issues of:
intrusion on consumer privacy
misuse of research findings
codes of practice