Class 3 | Chap 5&6 | Marketing research Flashcards
Why do managers need a MIS?
They need a Marketing Information System to carry out their analysis, planning, implementation and control responsibilities.
What are the 3 components from a MIS
1) Internal records system: information on the order-to-payment cycle and sales information system
2) marketing intelligence system: set of procedures and sources used by managers to obtain everyday information about pertinent developments in de marketing environment
3) Marketing research system: allows for the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation
What steps can a company take to improve the quality of its marketing intelligence?
- Train and motivate sales force to spot and report new developments
- Motivate distributors, retailers and other intermediaries to pass along important intelligence
- Network externally
- Set up a customer advisory panel
- Take advantage of government data resources
- Purchase information from outside suppliers
- Use online customer feedback system to collect competitive intelligence
What types of databases are there? 4
- Customer databases
- Product databases
- Salesperson databases
- and combining other databases
Why is a customer database used?
It is an organised collection of comprehensive information about individual customers or prospects that is current, accessible and actionable for lead generation, lead qualification, sale of a product or service or maintenance of customer relationships
What is database marketing
The process of building, maintaining and using customer and other databases to contact, transact and build customer relationships
How can you use data mining
extract useful information about individuals, trends and segments from the mass of data.
What is a standard data-mining process? 6
- Business understanding
- Data understanding
- Data preparation
- Modelling
- Evaluation
- Deployment
How can companies use their database? 5
1) To identify prospects
2) To decide which customers should receive a particular offer
3) To deepen customer loyalty
4) To reactivate the customer’s purchases
5) To avoid serious customer mistakes
CRM =
Customer relationship management
In what cases would it not be worth it to build a customers database?
1) Once in a lifetime purchase (piano)
2) Customers show little loyalty (lot of brand switching)
3) Unit sale is too small (chocolate bar)
4) Cost of gathering info is too high
What is considered to be at the ‘heart’ of the Internal Records System?
Order-to-payment cycle
A database can be used to rank customers according to:
RFM
Recent purchase, frequency of purchase and monetary value
What is a touchpoint
Companies can capture information every time a customer comes into contact with any of their departments eg a purchase, phone call, an online query, letter
Marketing Research can be defined as
“the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company”
