Notes

In this chapter, we continue our exploration of how marketers
gain insights into consumers and the marketplace. We look

at how companies develop and manage information about important
marketplace elements: customers, competitors, products,
and marketing programs.
To succeed in today’s marketplace, companies must know how to turn mountains of

marketing information into fresh customer insights that will help them deliver greater
value to customers.
1
The marketing process starts with a complete understanding
of the marketplace and consumer needs and wants. Thus, the
company needs sound information to produce superior value and
satisfaction for its customers.
The company also requires information on competitors, resellers, and other actors and forces in the
marketplace. Increasingly, marketers are viewing information not only as an input for making better
decisions but also as an important strategic asset and marketing tool.
2
The MIS first assesses information needs. It primarily
serves the company’s marketing and other managers, but it may
also provide information to external partners.
Then the MIS develops information from internal databases, marketing intelligence
activities, and marketing research. Internal databases provide information on the
company’s own operations and departments.
Such data can be obtained quickly and cheaply but often need
to be adapted for marketing decisions. Marketing intelligence activities supply
everyday information about developments in the
external marketing environment. Market research consists of collecting information
relevant to a specific marketing problem faced
by the company.
Last, the MIS helps users analyze and use the information to develop customer
insights, make marketing decisions, and manage customer relationships.
3
The first step in the marketing research process involves defining the problem and
setting the research objectives, which may
be exploratory, descriptive, or causal research. The second step
consists of developing a research plan for collecting data from
primary and secondary sources.
The third step calls for implementing the marketing research plan by gathering,
processing, and analyzing the information. The fourth step consists of interpreting
and reporting the findings. Additional information analysis helps marketing managers
apply the information and provides them with sophisticated statistical procedures
and models from which to develop more rigorous findings.
Both internal and external secondary data sources often provide information more
quickly and at a lower cost than primary
data sources, and they can sometimes yield information that
a company cannot collect by itself. However, needed information might not exist in
secondary sources. Researchers must also evaluate secondary information to ensure
that it is relevant,
accurate, current, and impartial.
Primary research must also be evaluated for these features.

Each primary data collection method—observational, survey, and
4
experimental—has its own advantages and disadvantages. Similarly,
each of the various research contact methods—mail, telephone, personal interview,
and online—has its own advantages and drawbacks.
4
Information gathered in internal databases and through marketing
intelligence and marketing research usually requires more analysis.
To analyze individual customer data, many companies have now
acquired or developed special software and analysis techniques—
called customer relationship management (CRM)—that integrate,
analyze, and apply the mountains of individual customer data contained in their
databases.
Marketing information has no value until it is used to make

better marketing decisions. Thus, the MIS must make the information available to
managers and others who make marketing
decisions or deal with customers. In some cases, this means
providing regular reports and updates; in other cases, it means
making non-routine information available for special situations and on-the-spot
decisions.
Many firms use company extranets to facilitate this process. Thanks to modern
technology, today’s marketing managers can gain direct access to marketing
information at any time and from virtually any location.

Notes

Uploaded by

Copyright:

Available Formats

Notes

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Notes

Uploaded by

Copyright:

Available Formats

In this chapter, we continue our exploration of how marketers

gain insights into consumers and the marketplace. We look

To succeed in today’s marketplace, companies must know how to turn mountains of

Primary research must also be evaluated for these features.

Marketing information has no value until it is used to make

You might also like