MK CH 7: Improving decisions with marketing information

marketing analysis

- analysis changes data (information, knowledge, wisdom) - decision support analysis

gather external data on a routine basis

- competitors' new product announcements or pricing changes and articles about customers

Changes Are Under Way in Marketing Information Systems

- many managers make decisions based on own judgement

marketing strategy decisions

- marketing dashboard - predictive analytics - ai and ml

results

- marketing metrics (profits, market share, customer lifetime value, etc.)

analysis changes data to information, knowledge, and wisdom

- mis includes software programs that analyze raw data and convert them to something managers can use to make marketing strategy decisions - data becomes information when they provide answers to questions of who, what, when, where, how much - data becomes knowledge when it helps marketing managers answer "how" and "why" questions. managers combine experience with information to generate knowledge. - wisdom involves an ability to accurately predict the future. Gain wisdom through learned experiences

the four Vs dimensions of big data

- volume (so much data) - variety (so many formats) - velocity (need to process quickly) - veracity (not always accurate)

Marketing Research Process

1. Defining the problem and research objectives 2. Developing the research plan for collecting information 3. Implementing the research plan - collecting and analyzing the data 4. Interpreting and reporting the findings

Descision support system

a computer program that makes it easy for a marketing manager to obtain and use information help managers convert data into information and knowledge that allow them to make informed choices about marketing strategy

Scientific Method

a decision-making approach that focuses on being objective and orderly in testing ideas before accepting them managers can't just assume that their intuition is correct

Sample

a part of the relevant population

data warehouse

a place where databases are stored so that they are available when needed electronic libraries where all of the information can be searches with some sort of search engine

research proposal

a plan that specifies what information will be obtained and how

Marketing model

a statement of relationships among marketing variables enables manager to look at sales and costs expected with different types of promotion and select the marketing mix that is best for a particular target market

sentiment analysis

an automated process of analyzing and categorizing social media to determine the amount of positive, negative, and neutral online comments a brand receives

analyzing the situation

an informal study of what information is already available in the problem area. can define the problem and specify what additional info is needed may begin with quick research

focus group interview

an interview of 6 to 10 people in an informal group setting open-ended questions that seeks group interaction- to stimulate thinking and get immediate reactions online focus groups feel freer to express their honest thoughts

market information systems (MIS)

an organized way of continually gathering, accessing, and analyzing information that marketing managers need to make ongoing decisions

data storage access and security

big data, data warehouse, security and protection

Validity

concerns the extent to which data measure what they are intended to measure

Big Data

data sets too large and complex to work with typical database management tools - orgs have various places to store data such as internal, external, and marketing research studies

marketing dashboard

displays up-to-the-minute marketing data in an easy-to-read format- much like a car's dashboard shows the speedometer and fuel gauge. customized to manager's area of responsibility

statistical packages

easy-to-use computer programs that analyze data

Hypothesis

educated guesses about the relationships between things or about what will happen in the future

consumer panels

group of consumers who provide information on a continuing basis

SA helps educate a researcher

important if manager is dealing with unfamiliar areas or if the researcher is a specialist who doesn't know much

velocity

important in seeking predictive analytics to anticipate what customers might be interest in buying when using real-time data

elements of marketing information system

information sources, data storage and access, marketing analysis, marketing strategy planning process and strategy decisions, results

primary data

information specifically collected to solve a current problem

secondary data

information that has been collected or published already inside and outside of the company often readily available and may also include routinely collected external data available from libraries, trade associations, gov agencies, and private research organizations

Information Sources

internal data, individual customer data, external data, marketing research studies

solving the problem

managers use the research results to makes marketing decisions the research has to apply yo either the target market or the four p's, if not then resources and efforts have been wasted.

defining the problem / reason for research

often most difficult - don't confuse problems with symptoms - manager must narrow research objectives, a good way is to develop a list of research questions that includes all possible problem areas

Marketing Research

procedures that develop and analyze new information about a market

Gathering Primary Data

questioning and observing - questioning can be qualitative or quantitative

telephone surveys

quick answers but many don't answer unknown numbers or refuse to participate, and in many cultures, people refuse to give away info

experimental method

researchers compare the responses of two or more groups that are similar except on the characteristic being tested

Mail and online surveys are common and convenient

respondents may be more willing to provide personal information- because a questionnaire can be completed anonymously but questions must be simple and easy to follow

qualitative research

seeks in-depth, open-ended responses, not yes or no answers researcher wants to get people to share their thoughts on a topic without giving them directions or guidelines DEPTH

Quantitative Research

seeks structured responses that can be summarized in numbers, like percentages, averages, or other statistics

ethnographic research

studies different cultures by observing participants in natural habitat

response rate

the percentage of people contacted in a research sample who completed the questionaire

confidence intervals

the range on either side of an estimate that is likely to contain the true value for the whole population

Population

total group they are interested in