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Marketing information system (MIS)
continuing process of identifiing, collecting, analyzing, and disseminating information to support marketing decision-making.
Internal information sources
customer orders, customer payments, marking plans, salesperson information systems, customer inquires
External sources
demographics, economic conditions, technology transformations, natural world, political/ legal, competition
Good marketing research
follows a well defined set of activities and does not happen by accident, enhances the validity of the information, is impartial and objective
The marketing research process
define the research problem →establish research design → search secondary sources → collect the data → analyze the data → report the findings
management research deliverable
what do managers want to do with the information ?
Exploratory research
clarify the research problem
develop hypotheses for testing in descriptive or causal research
provide insights into the problem
answer the research question
descriptive research
IDENTIFIES ASSOCIATIONS BETWEEN VARIABLES
identify the characteristics of our target market
assess competitor actions in the marketplace
how customers use our products
discover differences across demographic characteristics
Casual research
LOOKS TO DISCOVER THE CAUSE AND EFFECT BETWEEN VARIABLES
considerations are: benefit v cost, time until decision, nature of the decision, availability of data
Primary data
Data collected firsthand for a specific research purpose
Qualitative research
less structured, uses methods (surveys and interviews), small sample sizes
Quantitative research
statistical analysis to assess and quantify results
Exploratory research techniques
focus group, in-depth interviews
Descriptive research techniques
surveys, behavioral data (based on what consumers do)
observational data (collected in stores/ home) → mechanical observation (uses machines)
Information content (what is critical)
determining what info is needed and how to frame the questions to get that info, consider the structure, working, and possible responses
secondary sources
government, internet, and market research organizations
marketing research process
collect the data, analyze the data, report the findings
Market research challenges in global markets (Primary data)
unreliable sampling procedures, unwillingness to respond, inaccurate language translation and insufficient comprehension
Market research challenges in global markets (Secondary data)
data accessibility, data dependability, data comparability
objectives of CRM
customer acquisition, customer retention, customer profibility
customer success concepts
customer satisfaction, loyalty, value co-creation, experience management, empowerment
customer lifetime value (CLV)
relationships pay off in terms of cost savings, revenue growth, profits, referrals
Return on customer investment (ROCI)
can be calculated to determine if the fire should fire a customer
Phase 1: knowledge discovery
customer touch points (customer contact)
data warehouse (contains all info about touch points and makes it useful information)
data mining (develop segments and micro-segments)
database marketing (creation of lists to reach segments)
CRM Phases 2-4
marketing planning (develops the marketing mix strategy)
customer interaction (implementation of customer starts and programs)
analysis and refinement (organizational learning)
Interactive touch points
two-way and direct interface between customers and sales force
non-interactive touch points
static such as direct mail or website data entry form
successful use of touch points
identify all potential touch points
develop objectives for the information collected at each one
determine how to collect and integrate the information into the customer database
develop policies on how the information will be accessed and used
formalization
structure, processes, and tools are formally established in support of the culture
big data
the increasing quantity and complexity of data being constantly produced by technology
Four Vs (characteristics of Big Data)
Volume (the amount of data)
Velocity (frequency and speed of analysis)
Variety (different types of data)
Veracity (reliability and validity)
Categories of Big Data (structured)
generates logical organization
easy to categorize
numeric or text limited to certain input values
Categories of Big Data
no specific organizational structure
rich source of customer insights
social media posts, customer service reps, sales force interactions
Semi-structured data
mix of elements that machines can or cannot understand
marketing analytics
set of methods done by technology that utilize individual-level and market level data to identify patterns in data to improve marketing-related decisions (go fuck yourself)
Types of marketing analytics
Descriptive- uses data to provide summary insights, usually in visual format (EX: pie charts)
Diagnostic- uses data to explore relationships between diff marketing factors that influence the firm’s performance (EX: ad placement/ frequency)
Predictive- uses data to make predictions about future marketing outcomes (loyalty indicators to proactively contact potential at-risk customers)
Prescriptive- determining the optimal level of marketing relevant factors by considering how adjusting will impact marketing outcomes (most advanced, costly, draws on the other 3)
sentiment analysis
better understanding of unstructured data for the general attitude contained in a message (identifying and categorizing opinions expressed in a piece of text)
attribution
how to give credit to different elements of the marketing mix
Increased personalization
content filters- customers past preferences to make recommendations
collaborative filtering- similar customers and their preferences to make recommendations
Demographic
characteristics of human populations
Life cycle stage, education, occupation, income, lifestyle, gender
Psychological attributes
motivation, personality, attitude, perception, learning
perception
a system to select, organize, and interpret information to create an informed picture of the world
Selective awareness- whats relevant
Selective distortion- info can be misunderstood
Selective retention- storing in memory that support existing beliefs
conditioning
classical: learning thru stimulus and response
operant: rewards desirable behavior
personality trait
personality- unique personal qualities that produce distinctive responses across similar situations
2 ASSUMPTIONS:
people have a set of consistent, enduring personal characteristics
characteristics can be measured
External Factors Shape Consumer Choices
Culture (language, subculture, values, non-verbal communications)
Situational factors (physical surroundings, personal circumstances, time)
Social (family, household life cycle, social class, reference groups)
The level of involvement influences the process
Involvement activated by: a person’s background, environment at decision-making time
High involvement learning: people spending more time in decision making process and report higher satisfaction (usually a risky purchase)
Low involvement learning: unimportant decision-making
Consumer decision-making process
problem recognition →search for information →evaluation of alternatives → product choice decision → post- purchase decision
The Consumer Decision-Making Process:
Information Sources
Search for information → information sources → internal information search (the company itself) or external information search (reviews/ outside sources)
The Consumer Decision-Making Process: Set of Alternatives
Search for information → defining the set of alternatives →complete set (all the stuff), awareness set (what you actually know about), consideration set (what you’ll even consider buying)
The Consumer Decision-Making Process: Evaluation of Alternatives
Evaluation of alternatives: emotional, attitude based, attribute based
The Consumer Decision-Making Process: Product Choice Influences
product choice decision → physical surroundings, social circumstances, time, state of mind
The Consumer Decision-Making Process: Post purchase
Dissonance (the feeling that we get after buying something)
Use/ Non Use
Disposal (how easy is it to get rid of an item)
satisfaction → instrumental performance (how well it works compared to how you thought it would) and symbolic performance (items we buy to send a signal)
product demand
Derived demand: if consumers are buying finished products, producers need more inputs (EX- needing more workers because there is more demand)
Fluctuating demand: the diff between consumer and business product demand
Inelastic demand: producers buy war materials even if the prices rise
Buying Situations
Factors influencing business buying decisions:
-Nature of the purchase
-number of people involved in the decision
-understanding of the product being purchased
-time frame for the decision
Buying centers
Number of individuals with a stake in the purchase design come together
buying center members
Users- actual consumer of the product
initiator- could be user or executive who starts the process
influencer- people that affect decision
gatekeeper- controls access to key participants in the process
decider- person(s) responsible for making final decision
The players in business to business markets
Resellers, government, institutions
Problem recognition
someone inside or outside the firm recognizes a need
triggered by: simple reorders, manufacturing capacity, new technology
Product specifcations
should be clearly defined so that everyone inside and outside the firm understand
Request for proposal (RFP)
should achieve the details needed
Market segmentation
dividing a market into meaningful smaller markets based on common characteristics
target marketing
evaluating the market segments, then making decisions about which among them is most worthy of investment for development
positioning
communicating sources of value to customers in ways that connects needs and wants to what the product has to offer (what the company does to the mind of the customer)
what is segmentation
markets are either undifferentiated (everyone wants the same thing) or singular (everyone is unique)
Segmentation seeks to find factors about members of a heterogeneous market to divide them into smaller markets
Differentiation
communicating and delivering value in diff ways to diff customer groups
criteria for effective segmentation
is the segment of sufficient size?
is the segment readily identifiable and can it be measured?
is the segment clearly differentiated on one or more important dimensions?
can the segment be reached in order to deliver the value of the product?
Geographic segmentation
region, size of growth of population, climate, population density
demographic segmentation variables
age, generation, gender, family, race and ethnicity, income, occupation, education, social class, geo-demographic
Demographic variables (more detailed)
age- age in years vs attitudinal age
generation- defined by major events, groups share similar values
gender- look beyond traditional male/female, gender bending products
family and household- more diverse, family life cycle
race and ethnicity- its growin
income- frequently used
occupation- strong reference groups
education- strong predictor of success
social class- lower, middle, upper subsets
Behavioral segmentation
divides customers into groups based on benefits sought (value that consumers look for in a product) or usage patterns
usage patterns
occasions, usage rate, loyalty, user status (former, current, whatever)
steps in target marketing
analyze market segments → develop profiles of each potential target market → select a target marketing approach
taget marketing approach
undifferentiated target marketing, differentiated target marketing, concentrated target marketing, customized (one to one) marketing
over postioning
when your so good at positioning your brand that you stereotype yourself
repositioning
start with a position and than move to something else
positioning and research
start with focus groups than surveys than gap analysis
