Chapter 4: Managing Marketing Information — to Gain Customer Insights

Question 1

Explain the importance of gaining insights about the marketplace and customers.

Answer 1

By having insights, marketers will be able to make better decisions that will better create customer satisfaction, and in the end build sustainable customer relationships.

Question 2

More or better information?

Answer 2

Marketers want better informations.

Question 3

What should marketing managers always have in mind when considering research.

Answer 3

It’s validity, reliability and representativeness.

Also, they need to weigh the cost and the benefits from it.

Question 4

Elaborate on customer insights.

Answer 4

Customer insights is the fresh understandings of customers and the marketplace derived from marketing information. It is the basis for creating customer value & relationships.

Question 5

What are the three things that MIS helps managers do?

Answer 5

1) Assess the information needs
2) Develop needed information
3) Analyze and use information

Question 6

What are the three main parts in developing needed information (MIS)?

Answer 6

Internal databases, marketing intelligence and marketing research.

Question 7

Elaborate on internal databases.

Answer 7

Internal databases are electronic collections of consumer and market information from data sources within the company network. It is accessed more quickly and cheaply, but it ages rapidly and may be incomplete.

Question 8

Elaborate on marketing intelligence.

Answer 8

Marketing intelligence is the systematic collection and analysis of publicly available information. For example, annual reports from the competition, consumer blogs.

KEY WORD : PUBLICLY AVAILABLE

Question 9

Discuss dumpster driving.

Answer 9

Dumpster diving is the act of going through discarded sensitive information providing insights. It is legal, but considered to be unethical; classified as marketing intelligence

Question 10

Elaborate on marketing research.

Answer 10

Marketing research is the systematic design, collection, analysis and reporting of data relevant to a specific marketing situation. It involves four steps:
1) defining the problem and research objectives
2) developing the research plan for collecting information
3) implementing the research plan and - collecting and analyzing the data
4) interpreting and reporting the findings

Question 11

Discuss the three types of research objectives.

Answer 11

The three types of research are
1) exploratory research = to gather preliminary information to help define the problem and suggest hypotheses; discovery of ideas and insights; ambiguous problem; e.g. expert surveys, case studies

2) descriptive research = to generate information to describe market characteristics or functions; to explain an individual, group or situation; somewhat defined problem; e.g. surveys, panels

3) causal research = to test hypotheses about cause-and-effect relationships

Question 12

Outline the research plan for a marketing research.

Answer 12

The research plan outlines 1) sources of existing data 2) specific research approaches 3) contact methods 4) sampling plans 5) instruments for data collection

Question 13

Elaborate on sources of existing data (research plan).

Answer 13

Sources of existing data is classified into 2 types:
1) primary data - information collected for the specific purpose at hand
2) secondary data - existing data having been collected for another purpose; quicker and lower cost/desired information may not exist e.g. internal databases, government sources

Question 14

Elaborate on research approach (research plan).

Answer 14

Research approach can be classified mainly into 3 types:
1) Observational research - get information people are unwilling or unable to provide/observing feelings, attitudes can be hard; ethnographic -> become the people
2) Survey research - most widely used; best for descriptive information
3) Experimental research -> best for causal relationships

Question 15

Elaborate on contact methods (research plan).

Answer 15

Contact methods include mail surveys, telephone surveys, interviews (personal + group) and online.

Mail surveys -> lots of info, more truthful, better validity/not flexible, low response rate (offer incentives), little control over sample

Telephone surveys -> gather fast, can skip or explain Qs, strong sample control/higher cost, interviewer bias, limited quantity of data, low response rate

Interview -> highly flexible, lots of info, good control of sample, speed, response/high costs, lots of interviewer bias

Online -> fastest, lowest cost, good flexibility + response rate/somewhat interviewer bias, lack the real world dynamic

Question 16

Elaborate on sampling plan (research plan).

Answer 16

Sampling plan requires 3 questions: Who? How many? How should they be chosen?

Probability samples:
1) Simple random sample
2) Stratified random sample
3) Cluster (area) sample

Non-probability samples
1) Convenience sample
2) Judgement sample
3) Quota sample

Question 16

Elaborate on sampling plan (research plan).

Answer 16

Sampling plan requires 3 questions: Who? How many? How should they be chosen?

Probability samples:
1) Simple random sample
2) Stratified random sample
3) Cluster (area) sample

Non-probability samples
1) Convenience sample
2) Judgement sample
3) Quota sample

Question 17

Elaborate on research instruments (research plan).

Answer 17

Research instruments involve questionnaire decisions and mechanical devices.

Question 18

Elaborate on implementing the research plan and interpreting and reporting findings.

Answer 18

In implementing, marketers will collect the data, process the data and then analyze the data. In interpreting, marketers will interpret and draw conclusions, then report it to management.

Question 19

Explain how companies analyze and use marketing information (MIS).

Answer 19

Companies capture customer information from the developed information (internal databases, marketing intelligence and marketing research), then utilize CRM to find touch points to maximize customer loyalty.

CRM analysts develop data warehouses and use data mining techniques to extract customer insights.

Question 20

Discuss how companies distribute and use marketing information.

Answer 20

Companies make information readily available for decision-making. They share information within the intranet and extranets.

Question 21

Explain the importance of information in gaining insights about the marketplace and customers.

Answer 21

By having customer insights, companies are able to connect better to customer’s, in turn, able to create more satisfaction and building sustainable relationships. In general, it is useful for management decision making.

Question 22

Define the marketing information system and discuss its parts.

Answer 22

MIS is the people and procedures that allows marketers to know, get, and use needed information. It involves three parts:
1) Assessing information needs: “is it worth it?”
2) Developing needed information: primary (marketing research), secondary (internal databases, marketing intelligence)
3) Analyzing and using information: for management decision-making

Question 23

Outline the steps in the marketing research process.

Answer 23

There are four steps in the marketing research process:
1) Define problem + research objectives: explanatory, descriptive, causal research
2) Develop the research plan: sources of existing data, research approach, contact methods, sampling plans, instruments
3) Implementing the research plan: collect -> process -> analyze
4) Interpret and report findings

Question 24

Discuss the special issues some marketing researchers face, including public policy and ethics issue.

Answer 24

Sometimes conducting market research can be an intrusion on consumer privacy; consumers need to consent for companies to be able to share information; sometimes research findings are misused or misrepresented e.g. graph not starting at 0, autism a birth month