Principles of

marketing
A Global Perspective

Philip Kotler | Gary Armstrong

Chapter 4: Managing
Marketing
Information
Learning Objectives
After studying this chapter, you should be able to:
1. Explain the importance of information to the company and its understanding of
the marketplace
2. Define the marketing information system and discuss its parts
3. Outline the steps in the marketing research process
4. Explain how companies analyze and distribute marketing information
5. Discuss the special issues some marketing researchers face, including public
policy and ethics

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Chapter Outline
• Assessing Marketing Information Needs
• Developing Marketing Information
• Marketing Research
• Analyzing Marketing Information
• Distributing and Using Marketing
Information
• Other Marketing Information
Considerations
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Assessing Marketing
Information Needs
A marketing information system (MIS)
consists of people, equipment, and
procedures to gather, sort, analyze, evaluate,
and distribute needed, timely, and accurate
information to marketing decision makers.
• Assess the information needs
• Develop needed information
• Analyze information
• Distribute information

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Assessing
Marketing
Information
Needs

The marketing information system

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Assessing Marketing
Information Needs
MIS provides information to the company’s marketing
and other managers and external partners such as
suppliers, resellers, and marketing service agencies
A good MIS balances the information users would like
to have against what they need and what is feasible to
offer.
Issues to consider:
• Amount of information
• Availability of information
• Costs

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Developing Marketing
Information

Marketers can obtain information from:

• Internal data
• Marketing intelligence
• Marketing research

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Developing Marketing
Information
Internal Data
Internal databases are electronic collections of
consumer and market information obtained from
data sources within the company network, including
accounting, marketing, customer service, and sales
departments.

Which types of internal data is useful for marketing

department?

What are its advantages/disadvantages?

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 Advantages and Disadvantage of Internal Databases

Developing Advantages: Disadvantages:

Marketing • Can be accessed more quickly • Incomplete information

Information • Less expensive • Wrong form for decision making

• Timeliness of information
• Amount of information
• Need for sophisticated equipment
and techniques

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Developing Marketing Information

Marketing Intelligence
Marketing intelligence is the systematic collection and analysis of publicly available information
about competitors and developments in the marketplace.

The goal of marketing intelligence is to:

• Improve strategic decision making,
• Assess and track competitors’ actions, and
• Provide early warning of opportunities and threats.

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Developing Marketing Information

Marketing research
Marketing research is the systematic
design, collection, analysis, and reporting
of data relevant to a specific marketing
situation facing an organization.

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 Steps in the marketing research process

Marketing • Defining the problem and research objectives

• Developing the research plan
Research • Implementing the plan
• Interpreting and reporting the findings

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Marketing Research

1. Defining the Problem and Research Objectives

• Exploratory research is the gathering of preliminary information that will help to define the
problem and suggest hypotheses.

• Descriptive research is to describe things such as market potential for a product or the
demographics and attitudes of consumers who buy the product.

• Causal research is to test hypotheses about cause-and-effect relationships.

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 2. Developing the Research Plan
The research plan

• Outlines sources of existing data Marketing

• Spells out the specific research
approaches, contact methods,
Research
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sampling plans, and instruments that

researchers will use to gather data
Marketing Research
2. Developing the Research Plan
The research plan is a written proposal that includes:

Management problem

Research objectives

Information needed

How the results will help

management decisions

Budget
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Marketing Research
2. Developing the Research Plan
• Secondary data consists of information that • Primary data consists of information gathered
already exists somewhere, having been for the special research plan.
collected for another purpose.

How can we collect primary data?

Advantages Disadvantages

Cost Current

Speed Relevant

Could not get

Accuracy
data otherwise

Impartial
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Marketing Research
2. Developing Marketing Information
• Research approaches

• Contact methods

• Sampling plan

• Research instruments

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Marketing Research
• Privacy concerns
Research Approaches
• Observational research involves gathering primary
data by observing relevant people, actions, and • Ethnographic research involves sending trained
situations. observers to watch and interact with consumers in
their natural environment.
• Survey research is the most widely used method
and is best for descriptive information—knowledge, • Experimental research is best for gathering causal
attitudes, preferences, and buying behavior. information
• Flexible • Tries to explain cause-and-effect relationships.

• People can be unable or unwilling to answer

• Gives misleading or pleasing answers

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How can we
contact our target
observations?

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Contact Methods

MAIL TELEPHONE PERSONAL ONLINE MARKETING

QUESTIONNAIRE INTERVIEWING INTERVIEWING RESEARCH

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Contact Methods
Mail questionnaires
• Collect large amounts of information
Marketing
• Low cost

• Less bias with no interviewer present

Research
• Lack of flexibility

• Low response rate

• Lack of control of sample

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Marketing Research
Contact Methods
Telephone interviewing
• Collects information quickly

• More flexible than mail questionnaires

• Interviewers can explain difficult questions

• Higher response rates than mail questionnaires

• Interviewers communicate directly with respondents

• Higher cost than mail questionnaires

• Potential interviewer bias

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Marketing Research

Contact Methods
Personal interviewing
• Individual interviewing
• Involves talking with people at home or the office, on the
street, or in shopping malls
• Flexible
• More expensive than telephone interviews
• Group interviewing or focus group interviewing
• Involves inviting 6 to 10 people to talk with
a trained moderator

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Marketing Research

Contact Methods
Online marketing research
• Internet surveys

• Online panels

• Online experiments

• Online focus groups

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Contact Methods
Online marketing research

Marketing
• Low cost
• Speed to administer
• Fast results Research
• Good for hard-to-reach groups
• Hard to control who’s in the sample
• Lack of interaction
• Privacy concerns

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Contact Methods

Mail Telephone Personal Online

Flexibility Poor Good Excellent Good

Quantity of data collected Good Fair Excellent Good

Control of interviewer effects Excellent Fair Poor Fair

Control of sample Fair Excellent Good Excellent

Speed of data collection Poor Excellent Good Excellent

Response rate Poor Poor Good Good

Cost Good Fair Poor Excellent

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Marketing Research
Sampling Plan
A sample is a segment of the population selected for marketing research to
represent the population as a whole.
• Who is to be surveyed? (Sampling Unit)
• How many people should be surveyed? (Sample Size)
• How should the people be chosen? (Sampling Procedure)

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Sampling Plan
Probability samples: Each population member has
a known chance of being included in the sample.
• Simple random sample, stratified random sample,
cluster (area) sample
Marketing
Non-probability samples: Used when probability Research
sampling costs too much or takes too much time.
• Convenience sample, Judgement sample, Quota
sample

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Marketing Research
Research Instruments
• Questionnaires
• Closed-end question and open-end
question

• Mechanical devices

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3. Implementing the Research Plan
• Collecting data
• Processing the information
• Analyzing the information Marketing
Issues to consider:
• What if respondents refuse to cooperate?
Research
• What if respondents give biased answers?
• What if interviewer makes mistakes or takes
shortcuts?

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3. Analyzing Marketing Information
Customer Relationship Management (CRM)
Managing detailed information about individual
customers and carefully managing customer touch
points to maximize customer loyalty.
Marketing
Research
Through which touch points can company capture
information from customers?

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Marketing Research
3. Analyzing Marketing Information
Customer Relationship Management (CRM)
Touchpoints:

CUSTOMER SALES FORCE SERVICE AND WEB SITE VISITS

PURCHASES CONTACTS SUPPORT CALLS

SATISFACTION CREDIT AND RESEARCH STUDIES

SURVEYS PAYMENT
INTERACTIONS
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 4. Information distribution
involves entering information into
Distributing databases and making it available
and Using in a time-useable manner.
Marketing • Intranet provides information to

Information employees and other stakeholders.

• Extranet provides information to key
customers and suppliers

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Other Marketing Information
Considerations
Marketing Research in Small Businesses and Nonprofit Organizations
• Need information about their industry, competitors, potential customers, and
reactions to new offers
• Must track changes in customer needs and wants, reactions to new products,
and changes in the competitive environment

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Other Marketing Information
Considerations
Public Policy and Ethics in Marketing Research
• Intrusions on consumer privacy
• Consumer resentment
• Misuse of research findings

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