CASE STUDY NEW COKE
New Coke Product failure
Was due largely to Research Failure
Tested on taste only not intangibles such as cokes name history of the co. packaging,cultural heritage and image. Decisions based on 60% ratings Spent $4 million! On research.
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Poor sales Over 1,500 phone calls a day from angry customers Old Coke returns in only 3 months
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consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers (Kotl er)
Marketin g Informat ion (Marshall System and
LaMotte)
(Church ill)
... a set of procedures and methods for the regular, planned collection, analysis, and presentation of information for use in making marketing decisions
a comprehensive and flexible, formal and ongoing system designed to provide an organized flow of relevant information to guide marketing decision making
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Marketing Info. System
Begins
and Ends with Information Users:
- Interacts with information
users to assess
information
Develops needed information from
internal and external sources
- Helps users analyze information for marketing decisions
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- Distributes the marketing information 34 - 3
and helps managers use it for decision
Characteristics of MIS
1. It is a planned system developed to facilitate smooth and continuous flow of information. 2. It provides pertinent information, collected from sources both internal and external to the company, for use as the basis of marketing decision making. 3. It provides right information at the 7/12/12 right time to the right person.
Benefits of MIS
1. It allows marketing managers to carry out their analysis, planning implementation and control responsibilities more effectively. 2. It ensures effective tapping of marketing opportunities and enables the company to develop effective safeguard against emerging 7/12/12 marketing threats.
TYPES OF INFORMATION
Recurrent Informati on
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This is the data that an MIS supplies periodically about the market share of a specific product and customers awareness of companys brands. The data may be supplied on weekly, monthly or yearly basis.
Monitoring Information
This is the data obtained from the regular scanning of certain sources. Marketing managers may need data related to competition or the industry. It is essential so that marketing managers can be alert and identify potential problems .
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Requested Information
This information is developed in response to some specific request by the marketing manager. Secondary data or primary data through survey research are collected in response to the specific request. The MIS supplies the requested information for decision making.
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MARKETING MANAGERS
CONTROL ANALYSIS PLANNING ORGANISATION
DEVELOPING INFORMATION INTERNAL RECORD INFORMATION ANALYSIS
ACCESSING INFORMATI ON
DISTRIBUTING INFORMATION
MARKETING INTELLIGENCE
MARKETING RESEARCH
MODEL OF MkIS
MARKETING ENVIRONMENT
TARGET MACRO7/12/12 MARKET MARKETING CHANNELS COMPETITORS PUBLICS
4 STAGES IN MKIS
ACCESSING INFORMATION
DEVELOPING INFORMATION
ANALYSIS OF INFORMATION
DISTRIBUTING INFORMATION
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Assessing Infor mation Needs
Pizza Hut wants to launch a new pizza but needs feedback from the customers. Burger King develops two TV commercials and wonder which one would be more effective. You are going to start your own business in a particular city and you have to make concept and
location decisions.
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Ten questions for determining
marketing information needs
(1) What types of are you regularly called upon?
decisions
(2) What types of do you decisions?
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information
need to make these
(6) What information would you want daily? Weekly? Monthly? Yearly?
(7) What magazine and trade reports would you like to see circulated to you on a regular basis? (8) What specific topics would you like to be kept informed on?
(9) What types of data analysis programs would you
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The MIS serves company managers as well as external
partners
The MIS must balance against
needs
feasibility: costly
Not all information can be obtained.
Obtaining, processing, sorting, and delivering information is
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Benefit
of info>cost of
DEVELOPING INFORMATION
INTERNAL RECORDS
SOURCES OF INFO
MARKETING INTELLIGENCE MARKETING RESEARCH
Information gathered from sources within the company to evaluate marketing performance and to identify marketing problems and opportunities
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Marketing managers rely on internal reports on orders, sales, prices, costs, inventory levels, receivables, payables, and so on. By analyzing this information, they can spot important opportunities and problems.
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THE ORDER-TO-PAYMENT CYCLE The heart of the internal records system is the order-to-payment cycle
Sales representatives, dealers, and customers send orders to the firm. The sales department prepares invoices and transmits copies to various departments.
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Sales Information System
q
Marketing managers need timely and accurate reports on currents sales.
Wal-Mart, for example, knows the sales of each product by store and total each evening. This enables it to transmit nightly orders to suppliers for new shipments of replacement stock. Wal-Mart shares its sales data with its larger suppliers such as P&G and expects P&G to re-supply Wal-Mart stores in a timely manner. Wal-Mart has entrusted P&G with the management of its inventory.
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Companies must carefully interpret the sales data so as not to get the wrong signals. Technological gadgets are revolutionizing sales information systems and allowing representatives to have up-to-thesecond information.
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Databases, Data Warehousing, and Data Mining
q
A database is anapplicationthat manages data and allows fast storage and retrieval of that data Today companies organize their information in database customer database, product database, salesperson A data warehouse is a relational from the database and then combine data database that is designed for query and analysis different databases. rather than for transaction processing. It usually contains historical data derived 7/12/12 transaction data, but it can include from
data mining (sometimes called data or knowledge discovery) is the process of analyzing data from different perspectives and summarizing it into useful information - information that can be used to increase revenue, cuts costs, or both. Data mining software is one of a number of analytical tools for analyzing data. It allows users to analyze data from many different dimensions or angles, categorize it, and summarize the relationships identified. Technically, data mining is the process of finding correlations or patterns among dozens of 7/12/12 fields in large relational databases.
q
DEVELOPING INFORMATION
SOURCES OF INFO
INTERNAL RECORDS
MARKETING INTELLIGENCE MARKETING RESEARCH
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Marketing intelligence is the systematic collection and analysis of publicly available information about competitors and trends in the marketing environment. Competitive
Sources of Competitive Intelligence
Company employees Internet Garbage Published information Competitors employees Trade shows Benchmarking Channel members and key customers
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Analyzing Marketing Intelligence Data Competitor analysis -- knowing about competitors
1. Who are our competitors?
2. What are their strategies?
3. What are their objectives?
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4. What are their strengths and weaknesses?
5. What are their reaction patterns?
Analyzing Marketing Intelligence Data
Competitor analysis -- levels of competition Other companies offering a similar Brand Competition
product and services to the same customer at similar prices All companies making the same product or class of products All companies manufacturing products that supply the same service All companies competing for the same consumer dollars
Industry Competition
Form Competition
Generic Competition
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DEVELOPING INFORMATION
SOURCES OF INFO
Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
INTERNAL RECORDS
MARKETING INTELLIGENCE MARKETING RESEARCH
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Marketing Research Process
Steps in the Marketing Research Process:
Defining the problem and research objectives Developing the research plan for collecting information Implementing the research plan -- collecting and analyzing the data Interpreting and reporting the findings
Objectives: Exploratory Descriptive Causal
Secondary data vs. primary data Sample vs. population Research Approaches
Put the plan into action collect and analyze the data
Interpret the findings-draw conclusions and report to management
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Marketing Research Process
Defining the Problem and Research Objectives
Exploratory Research Descriptive Research Causal Research (Unaware of Problem) (Aware of Problem) (Problem Clearly Defined)
possible situation
Our sales are declining and What kind of people are buyingWill buyers purchase more of we dont know why. our product? Who buys our our products in a new package? competitors product? Would people be interested Which of two advertising in our new product idea? What features do buyers prefercampaigns is more effective? in our product? 7/12/12
Marketing Research Process
Develop Research Plan
Secondary vs Primary Data Research Approaches
Observation Method Survey Method Experimental Method
Contact Methods Sampling Plan Research Instruments
(Mail, telephone, personal, internet)
Develop the Research Plan
Secondary vs. Primary Data
Already Exists Somewhere. + Obtained More Quickly, Lower Cost. - Might Not be Usable Data.
Secondar y Information That
Both Must Be: Relevant Accurate Current Impartial
Primar y Information
Collected for the Specific Purpose at Hand.
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Marketing Research Process
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Develop the Research Plan
Research Approaches
Observational Research
Gathering data by observing people, actions and situations (Exploratory)
Survey Research
Asking individuals about attitudes, preferences or buying behaviors (Descriptive)
Experimental Research
Using groups of people to determine cause-and-effect relationships (Causal)
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Develop the Research Plan
Contact Methods
Mail
Flexibility Quantity of Data Collected Control of Interviewer Control of Sample Speed of Data Collection Response Rate Cost Poor Good Excellent Fair Poor Fair Good
Telephone Personal
Excellent Excellent Poor Fair Good Good Poor
Internet
Good Good Fair Poor Excellent Good Excellent
Good Fair Fair Excellent Excellent Good Fair
Develop the Research Plan
Sampling Plan
Probability or Non-probability sampling? Who is to be surveyed? (What Sampling Unit?)
How should the sample be chosen?
Sample representative segment of the population
How many should be surveyed?
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Marketing Research Process
Research Instruments
Structured or Unstructured
Interview (structured or unstructured) Mechanical Devices (Tape record, video) Structured (Questionnaire)
Presenting the Research Plan
Summarize the plan in a written proposal
Marketing Research Process
Implement the Research Plan
Putting plan into action
Collecting the data Process the data Analyzing the Data
Interpret and Report the Findings
Turn data into information
Interpret the findings Draw conclusions Report findings and conclusions
ANALYSIS OF INFORMATION
This involves further and more detailed analysis of Marketing intelligence and marketing research data (sometimes this is called secondary analysis of primary data) through: [Link] statistical analysis 2. Mathematical models
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DISTRIBUTING INFORMATION
Information has no value until managers use it to make better decisions
It must reach the appropriate managers at the right time. Often information arrives too late to be useful.
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CONCLUSION
We can conclude the advances in information technology and innovation in marketing systems is boosting the ability of marketing managers giving them an opportunity to react much faster to their customer needs and end up with closing the sale successfully and customer satisfaction. Today the market information is sought in 7/12/12 seconds. Gone are the days when the
THANKYOU
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