1MCD2050
MARKETING 1
Lecture 5 – Marketing Information
Systems
2
3Icons
Pages
6 - 10
Prescribed
reading. Refer
to textbook
Watch the
video via the
link
Class Activity –
Answer the
question
Case Study -
Real world
example
!
Important
point to
remember
Pages
6 - 10
Recommended
reading. Refer
to textbook
4 Define the marketing information system and discuss its parts
 Outline the steps in the marketing research process
 Explain how companies analyse and use marketing information
 Discuss the special issues some marketing researchers face,
including public policy and ethics issues
Overview
5 ‘The use of people, equipment and procedures used to gather,
sort, analyse, evaluate and distribute needed, timely and
accurate information to marketing decision makers.’
(Kotler et al, 2013, p 151.)
 Organisations do not make decisions based on impulse, they
use relevant information to make informed decisions.
MIS Defined
6 In addition to specific market research projects, organisations
continuously collect data as part of everyday activities, such as
sales, purchases, enquiries and accounting.
 A marketing information system (MIS) is the structure put in
place to manage information gathered during the usual
operations of the organisation.
 Marketing information systems play a vital role in linking the
customer to the marketer.
Marketing Information Systems
7 In order to create value for customers, organisations must gain
insights into what customers need and want.
 Companies must therefore design effective MIS’s that provide
managers with the right information at the right time to assist
them in making the right decisions.
The Importance of MIS
8The Components of a Marketing Information System
Page 60
9 First step: The marketing managers create a query for facts or
material, due to a lack of needed information.
 Second step: Marketers develop the needed information from
three different sources to fill the information needs.
 Third step: Analyse the information, looking for trends or
patterns.
 Fourth step: Managers use the information to make decisions
and create positive outcomes for the company.
Diagram explained
10
 A good marketing information system balances the
information that managers would like to have against what
they really need and what it is feasible to acquire or monitor.
 The organisation begins by interviewing managers to find out
what information they would like.
First Step: Assessing Information Needs/Creating a Query
11
 The firm develops information from the following sources:
– Internal reports: information that exists from within the firm
– Marketing Intelligence: information that stems from publicly available
sources.
– Marketing research: Gathering, recording and analysing of data
– Internal Databases and Marketing Intelligence are considered
Secondary Data
– Marketing Research is considered Primary Data
Second Step: Developing needed information
12
 Information gathered from sources within the company to
evaluate marketing performance and to detect marketing
problems and opportunities
 Information through sales and accounting systems
– Accounting Reports, e.g. Financial Statements
– Sales Reports, e.g. Records of product sales
– Production Reports, e.g. Records of production performance.
Internal Reports
13
Examples of Internal Reports
14
 The systematic collection and analysis of publicly available
information about competitors and developments in the
marketing environment, collected from the sources below.
– Government reports
– Trade association publications and shared data
– Magazines, newspapers and books
– Other company reports, websites
– Syndicated multi-client market research studies
Marketing Intelligence
15
Examples of Marketing Intelligence
Source: https://twitter.com/theage/status/1087825639141490693
Source: https://www.deakin.edu.au/
16
More Examples of Marketing Intelligence
Source: https://youtu.be/a7iIpPEgb9E
17
 Marketing research - The function that links the consumer,
customer and public to the marketer through information used
to:
– identify and define marketing opportunities and problems.
– generate, refine and evaluate marketing actions.
– monitor marketing performance.
– improve understanding of the marketing process.
Marketing Research
18
Market research involves five major components:
1. Defining the research problem
2. Designing the research methodology
3. Collecting data in accordance with the research design
4. Analysing data and drawing conclusions
5. Presenting the results and making recommendations.
We will look at this process in depth in the second half of the lecture
Overview of the market research process
19
 Marketers are faced with limited resources — a budget — that
governs all activities.
 Before undertaking a market research project, the following
should be considered.
– Relevance
– Timing
– Availability of resources
– Need for new information
– Cost–benefit analysis.
When market research is appropriate
20
 This is the process for collecting primary data.
 We will spend the remainder of the class explaining this
process.
The Marketing Research Process
Examples of products launched as a result of
the marketing research process.
21
MCD2050
MARKETING 1
Lecture 5 – Marketing Research
Process and Methods
22
 In essence, market research is a business activity that discovers
information of use in making marketing decisions.
 Market research informs many different types of decisions,
including decisions about users and other people, market
segmentation, sales performance, product, distribution,
promotion, pricing and competitors.
The role of market research in marketing decisions
23
Market research involves five major components:
1. Defining the research problem
2. Designing the research methodology
3. Collecting data in accordance with the research design
4. Analysing data and drawing conclusions
5. Presenting the results and making recommendations.
Overview of the market research process
Defining the research
problem
Designing the
research
methodology
Collecting data in
accordance with the
research design
Analysing data and
drawing conclusions
Presenting the
results and making
recommendations.
24
 What is the purpose of the research
precisely?
 The first step is the most difficult
throughout the process.
 Firstly the firm must define the problem,
carefully differentiating it from a symptom.
 A symptom is the result of a problem but is
not the actual problem.
 If the firm identifies the symptom as the
problem, no solution will be found.
Defining the Problem
25
To illustrate the differences between a
symptom and a problem we will use two
examples:
 Example 1: Student presents to the
doctor, with a sore throat, fever and
headaches.
– These are symptoms.
– The doctor examines and finds a throat
infection exists, this is the problem.
– The doctor provides medicine, the
medicine treats the infection, problem
solved, symptoms gone.
An Example
26
Example 2: An organisation notices that a particular product of theirs is
suffering from a reduction in sales and a decline in market share.
 These are symptoms.
 The organisation has to diagnose and define what the problem is.
– Product related: offer no longer meets customer needs and wants
– Price related: the price has been set either too high or too low.
– Distribution related: the product is difficult to obtain
– Promotion related: the promotion tools used are not reaching the intended
audience.
An Example
27
 Market researchers conduct three different types of research.
1. Exploratory research
2. Descriptive research
3. Causal research
Types of research
28
 Exploratory Research – Marketing research to gather preliminary
information that will help to define problems better and suggest
hypotheses.
 Descriptive Research – Marketing research to describe marketing
problems, situations or markets better.
 Causal Research – Marketing research to test hypotheses about
cause and effect relationships.
 It is important to note: Generally the managers will set all three types
throughout a market research process, as demonstrated in the next slide
Research Types
29
Using Multiple Research Types (Approaches)
Page 71
30
 Prior to collecting the data, the researcher must outline the
method to be used for data collection.
 The research methodology must outline the following:
1. Gathering Secondary Data
2. Research Methods
3. Contact Methods
4. Sampling Plans
5. Instruments
Designing the Research Methodology
31
 Secondary data comprise information originally gathered or
recorded for some purpose other than to address the current
market research problem. For example Internal Data and Marketing
Intelligence.
 Primary data are data observed or collected directly from
respondents as part of the current market research project (e.g.
responses given on a questionnaire).
 Marketers should always assess whether their research questions
can use secondary data before embarking on primary data
collection.
Types of data
32
Research Methods: (Gathering Primary Data)
Qualitative
research
Mix methods
research
Quantitative
research
Research is often separated into:
Focus Group
Research
Survey
research
Experimental
research
Observational
research
Research Methods
33
 Quantitative research – collecting data that can be represented
numerically and analysed statistically
 Qualitative research – focuses on obtaining rich, deep and detailed
information
 These can be further classified into different research methods. Some of
these include:
1. Observational Research
2. Focus Group Research
3. Survey Research
4. Experimental Research
Quantitative & Qualitative Primary Research:
34
 Observational Research involves gathering primary data by observing
(watching) relevant people, actions and situations.
Research Methods: Observational Research
COMMONWEALTH OF AUSTRALIA
Copyright Regulations 1969 - WARNING
This material has been reproduced and communicated to you by or on behalf of Monash University pursuant to Part VB of
the Copyright Act 1968 (the Act). The material in this communication may be subject to copyright under the Act. Any
further reproduction or communication of this material by you may be the subject of copyright protection under the Act.
Pages
75-76
35
Example of Observational Research
Source: https://youtu.be/NG4lFmSO7VQ
36
 Focus Group Research involves a group of respondents, who
are brought together, introduced to an idea or product and
their interactions are observed.
Research Methods: Focus Group
COMMONWEALTH OF AUSTRALIA
Copyright Regulations 1969 - WARNING
This material has been reproduced and communicated to you by or on behalf of Monash University pursuant to Part VB of
the Copyright Act 1968 (the Act). The material in this communication may be subject to copyright under the Act. Any
further reproduction or communication of this material by you may be the subject of copyright protection under the Act.
Pages
76
37
Example of Focus Group
Source: https://youtu.be/j_cUnlQl29Q
38
 Survey Research involves the gathering of primary data by
asking people questions. This can include both interviewer-led
and self-response surveys.
Research Methods: Survey
COMMONWEALTH OF AUSTRALIA
Copyright Regulations 1969 - WARNING
This material has been reproduced and communicated to you by or on behalf of Monash University pursuant to Part VB of
the Copyright Act 1968 (the Act). The material in this communication may be subject to copyright under the Act. Any
further reproduction or communication of this material by you may be the subject of copyright protection under the Act.
Pages
74-76
39
Example of Survey Research
Source: https://youtu.be/3i5mehn5L10
40
 Experimental Research involves manipulating independent
variables (variables of interest) while holding everything else
constant in order to determine what and how particular things
affect behaviour.
Research Methods: Experimental
COMMONWEALTH OF AUSTRALIA
Copyright Regulations 1969 - WARNING
This material has been reproduced and communicated to you by or on behalf of Monash University pursuant to Part VB of
the Copyright Act 1968 (the Act). The material in this communication may be subject to copyright under the Act. Any
further reproduction or communication of this material by you may be the subject of copyright protection under the Act.
Pages
75
41
Example of Social Experiment
Source: https://youtu.be/aloWD-osR4Q
42
 The questionnaire or survey is by far the most common
research instrument
Research Instruments
43
 The most common research
instrument.
 Close ended questionnaires:
 Open ended questionnaires:
Types of Questionnaires
44
Activity
You are the Marketing Manager for a New Juice Bar. You have
decided to open the first shop at the new University Campus in
Melbourne.
Design a questionnaire that will help you decide the operations and
market offering of this new juice bar.
Develop 3 Close Ended Questions and 3 Open Ended Questions
The lecturer will chose some of you to present your questions to the
class.
45
 A sample is a segment of the population selected for
marketing research to represent the population as a whole.
 Why?
 It is not feasible or even possible to collect information from
the entire population.
A Sample: Why Needed?
Population
Sample
46
 Probability sampling ensure s that
every member of the population has
a known chance of being selected in
the sample that will be studied.
 Non-probability sampling provides
no way of knowing the chance of a
particular member of the population
being chosen as part of the sample.
Sampling
47
 At this stage, the planned methodology is implemented.
Collecting Data
48
 At this stage the researcher will look for trends and patterns
within the data and then make some conclusions.
Analysing Data and Drawing Conclusions
49
 The final stage, results are presented to managers, who use
the information to make decisions.
Presenting the results and making recommendations
50
 Market researchers have an ethical responsibility to their
clients or employers and to those who participate in the
research.
 The market research industry attempts to self-regulate its
activities in Australia through the Australian Market and Social
Research Society (AMSRS).
 In New Zealand, the market research industry’s peak body is
called the Market Research Society of New Zealand (MRSNZ).
Ethics in market research
51
 Marketing Information Systems include the collection and processing of
information required by an organisation for its marketing functions
 Market research is required to solve specific problems faced by an
organisation
 Problems can be solved through the application of qualitative and
quantitative research projects
 The MR process guides the development and implementation of market
research projects
 MR project can only be successful if the right questions are asked, to the
right people, using the right methods
Summary
52
 Reminder to complete the online weekly quiz on Moodle.
 Quiz will close 5pm Saturday
 The test is open book – you can refer to your lecture notes and
textbook(s)
 The test is timed – 60 minutes to complete from when you start it.
Online Weekly Quiz