MARKETING INFORMATION

SYSTEM
By the completion of this module, you should be able to
1. Describe the development of the marketing research function and
its major activities.
2. Explain the steps in the marketing research process.
3. Distinguish between primary and secondary data and identify the
sources of each type.
4. Explain the different sampling techniques used by marketing
researchers.
5. Identify the methods by which marketing researchers collect
primary data.
6. Explain the role marketing research plays in developing marketing
strategies for hospitality organizations
7. Explain and evaluate different methods of gathering research
information n appreciate the ethical dimensions in carrying out
research
 Introduction to Marketing Information System

Normally marketing manager need information related to:-

• Understand Potential target market,
• know their responses to the marketing mix
• Competition and other marketing environments
Thus many managers nowadays develop continuous flow of
information system commonly known as marketing information
system in their companies for daily uses within their related
company.
A marketing information system (MIS) is a set of procedures and
methods designed to generate, analyze, disseminate, and store
anticipated marketing decision information on a regular, continuous
basis.
A marketing information system consists of people, equipment and
procedures to gather sort, analyze, evaluate & distribute needed tiny
and accurate information to marketing decision makers.
COMPONENTS OF MIS:
1. Marketing intelligence system
2. Internal record system
3. Marketing research system
4. Marketing decision support system [MDSS] (Analyzing Marketing
Information)
Internal records: It is the data collected as a database about
the daily processes of the hotels Examples are:
sales, costs, cash flows, production schedules, inventories,
competitor activities, customer demographics,
psychographics, buying behavior, customer satisfaction,
service problems.
Marketing intelligence is a set of procedures and sources,
marketing managers can use to obtain everyday information
about the developments in the marketing environment.
Marketing managers collect marketing intelligence by
• Reading books, newspapers and trade publications
• Talking to customers, suppliers and distributors
• Meeting with other company managers
• Purchasing information on consumers of various
products/services from independent research firms
• Obtaining customer feedback
Marketing research is the systematic design, collection, analysis,
and reporting of data relevant to a specific marketing situation
facing an organization.
Marketing decision support system (MDSS) consists of
software(set of computer tools) that helps users quickly obtain and
apply information in a way that supports marketing decisions.
It mainly helps in building models for better understanding of the
marketing process.
Note: Marketers can obtain the needed information from internal
data, marketing intelligence, and marketing research.
Quality of information for good decision making

1. Relevant
The information shall be relevant to the needs of managers
to assist in the decisions.
2. Timely
Late information is equivalent to no information.
3. Sufficient
Information should be adequate.
4. Easy to follow
The presentation of information should be easy for
managers to understand.
 IMPORTANCE OF MARKETING
INFORMATION SYSTEM
Marketing Strategy Development, It supports strategy
development for new products, product positioning, marketing
communications (advertising, public relations, and sales
promotion), pricing, personal selling, distribution.
Facilitates Marketing Planning and Control: Effective market
planning is required in terms of product planning, pricing,
promotion and distribution.
Quick supply of information
Due to timely supply of marketing information, the marketing
managers can make quick and effective decisions.
Quality of decision-making
it supplies reliable and relevant information. the marketing
managers can make the right decisions at the right time.
Tapping of business opportunities
It helps to tap business opportunities as it can supply required and
reliable data.
THE MARKETING
RESEARCH
Definition of key terms

Marketing research is “the process of designing, gathering,

analyzing, and reporting information that may be used to solve a
specific marketing problem”
Marketing research can be defined as the systematic gathering
and analysis of data to provide relevant information to aid
decision-making.
Marketing Research is a systematic method of collecting,
recording and analyzing of data, which is used to solve
marketing problems.”
 Market research and marketing research

‘Market’ research is the process of collecting, analyzing and

presenting useful information about consumers.
It is based on the characteristics of a market, its size, the style of
consumption patterns, the demographic profile of the consumers.
Marketing research has a much wider application including
research into all the marketing mix variables and the macro
(PESTE) and micro environments.
Marketing research is about researching the whole of a
company’s marketing process.
Objectives of marketing research
• To identify customer needs and then meet those needs
• To learn about customer attitudes and values
• To develop products and services that meet identified needs
• To discover sales trends
• To find out about competitors’ activities
• To measure the effectiveness of promotional activity
• To classify customers into groups or types
 Types of marketing research

Types of research that are carried out by marketers are as

follows:
1. Customer research.
2. Promotion research.
3. Product research.
4. Distribution research.
5. Research on pricing
6. Marketing environment research.
7. Research on competition
 The Process of marketing research
Effective marketing research follows a number of logical stages,
described below
1. Formulation of research problem
2. Developing the Research design/ Plan
3. Data Collection
4. Data Analysis
5. Presenting Research Results
Step 1: Identifying and Defining the Problem
Before beginning the task of gathering information, it is first
necessary to identify the problem for which research is required.
For example, if a hotel’s occupancy rate has suddenly fallen, “an
assessment of the causes for the decline of hotel’s occupancy
rate”
Assessing the market opportunity in Scandinavian country
Causes Responsible for Declining Interest of Students in Learning
beverage service at IOT.
This step also involves formulating an aim, specific research
questions (objectives).
These objectives will determine the type of information required.
Step 2: Developing The Research Plan
The second step in the marketing research process
involves planning the research design for obtaining the
desired information to address the research problem.
The research design is basically a master plan specifying
the methods and procedures for collecting and analyzing
the needed information.
the research designs can be classified into one of three
categories
1. Exploratory research
2. Descriptive research
3. Causal research
Exploratory research is often conducted because a problem has
not been clearly defined as yet, or its real scope is as yet unclear.
It allows the researcher to familiarize him/herself with the problem
or concept to be studied, and perhaps generate hypothesis to be
tested.
It expands knowledge. It is the initial research, before more
conclusive research is undertaken.
Common Methods For Conducting Exploratory Research
Secondary data analysis is the process of reviewing existing
information that is related to the research problem.
Experience surveys involves information is gathered from
individuals who are believed to be knowledgeable about the
research topic.
Focus groups consist of 8 to 12 people who represent the
population being studied and are brought together in an
informal setting to discuss the issues surrounding the
research problem.
A descriptive study is undertaken when the researcher wants to
know the characteristics of certain groups such as age, sex,
educational level, income, occupation, etc
It is concerned with answering the basic questions of who buys the
product, what customers do with the product, where they buy,
when they buy, why they buy, and how they buy.
There are two basic types of descriptive research:
1. Longitudinal Studies
2. Cross-sectional Studies
Cross-sectional Studies
A cross-sectional study measures the population at one point in
time; it provides a snapshot of the population. This type of study
is normally used to address a particular problem when it arises.
For example, one hotel surveyed customers in its atrium
restaurant over a one-week period to obtain information that
could be used to redesign the restaurant and its menu.
A longitudinal study
A longitudinal study is used to measure the same population
over an extended period. Generally,
Longitudinal data are useful in depicting trends and changes in
consumer needs and attitudes.
Causal Research Design.
The third category of research design focuses on cause-and-effect
relationships that are pertinent to a research problem.
For example, a hospitality firm may want to examine how a
particular change in the marketing mix affects sales, market share,
and/or customer satisfaction.
Stage 3: Sampling and Data Collection
The data collection phase of the marketing research process
is generally the most expensive and the one most frequently
subject to error.
Three major decisions must be made during this stage in the
marketing research process.
i. They involve choosing A data collection method,
ii. Deciding the main sources of information
iii. And determining the sampling plan.
Marketing researchers gather two kinds of data:
secondary data and primary data.
Secondary data is information from previously published or
compiled sources. Census data is an example.
Secondary data consists of two types
Internal data, includes sales records, product performance
reviews, sales force activity reports, and marketing cost
reports.
External data comes from a variety of sources, including
government records, syndicated research services, and
industry publications
Primary data refers to information collected for the first time
specifically for a marketing research study. methods by which
marketing researchers collect primary data.
For qualitative data
1. Observation
2. Focus group also known as group discussions
3. In-depth interviewing
For Quantitative data
4. Questionnaires
5. Structured Interview
Stage 4: Data Analysis and Interpretation
The collected data must be processed and analyzed to extract
important information and findings.
Quantitative data analysis uses statistical analysis packages
(such as SPSS)
Commonly used statistical packages among tourism researchers
are SPSS (Statistical Package for the Social Sciences),
MINITAB, and NCSS (Number Cruncher Statistical System).
Qualitative data analysis uses computer software applications
(for example, NVivo), content analysis or thematic analysis
Step 5: Report Preparation and Presentation.
Finally, the researcher has to present the findings.
This will almost certainly involve the presentation of a report that
summarizes the results of the research, which enables the
management of the organization to make decisions based on the
newly acquired information.
Marketing Research and Ethics
1. Ensure that participation in their activities is based on
voluntary informed consent.
2. Be straightforward and honest in all their professional and
business relationships.
3. Be transparent as to the subject and purpose of data
collection.
4. Respect the confidentiality of information collected in their
professional activities.
5. Ensure that their participants are not harmed or adversely
affected by their professional activities.
6. Ensure that their professional activities are conducted by
persons with appropriate training
ADVANTAGES OF MARKETING RESEARCH

It facilitates planned production

To forecast the demand
Acceptance of new products is judged
It helps to remove wasteful expenditure and cost
Marketing research helps to study the effectiveness of pricing
policies, channels of distribution, advertising, sales promotion
& other activities
To understand consumer behavior
Helpful in improving relations with dealers
Helpful in overcoming sales resistance
 Limitations of Marketing Research

• Marketing research uses huge amount of time & money.

• Small business firms cannot afford it.
• It is the study of human behavior. so., it cannot be 100%
accurate.
• It depends on the quality of research staff.
• Individual views of executives may give bias/ carelessness
• It is very difficult to measure the effectiveness of marketing
research.
Structure of marketing research report
The title page
Contents page
Executive Summary
oResearch Objectives
oSample and Methodology
oKey Findings
oRecommendations
Introduction
oIndustry background
oCompany Background
oProblem statement
oResearch Objectives
Research methodology
oResearch approach
oSampling procedure and size
oResearch methods
oBudget (Timings & Fees)
Key Findings
Summary & Recommendations
oSummary
oRecommendations
Reference List
Appendix..........................
 Question for discussion

1. Define the marketing information system and discuss its

parts
2. Marketing research over the Internet has increased
significantly in the past decade. Outline the strengths and
weaknesses of marketing research conducted online.
3. What is the difference between marketing intelligence and
marketing research?
4. Explain how companies analyze and distribute marketing
information.
5. Outline the steps in the marketing research process.
6. Why do successful companies sometimes lose their
competitive advantage? How can companies avoid
competitive failure and sustain their competitive