Marketing Revision Chapter 4 5 7

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Chapter 4: Marketing Research

What is Customer Insight?
Customer insight is basically a fresh understanding of customers and marketplace.

Why is Customer Insight important?
1.To create value for customers.
2.To build meaningful relationships with customers.
3.To gain competitive advantage.

How can marketers gain good customer insight?

Insight is obtained through good marketing information therefore marketers must effectively manage marketing information from a wide range of sources.

What are companies doing to gain customer insight?
Companies are creating ‘insight teams’ within the company headed by a VP (Vice president) and this team is made up of representatives from all the functional areas in the company.

What are the sources that customer insight teams use to collect customer and market information?

1.Traditional marketing research studies.
2.Through interacting with consumers.
3.Observing consumers.
4.Monitoring consumer online conversations about the company or product.

‘Companies need to be careful not to be customer controlled’ what is meant by the term ‘customer controlled’?

It means that companies must not give customers everything they request or want they should understand customers to the core and give them what they NEED.

When is marketing information system (MIS) effective?

Marketing information’s systems are effective when they provide managers the right information at the right form at the right time and help them use this information to create customer value and build strong customer relationship.

What does a Marketing Information System (MIS) consist of?

It consists of people and procedures for:
1.Assessing informational needs.
2.Developing the needed information.
3.Helping decision makers to use the information to generate and check customer and market insights, which can be used in real marketing activities.

Assessing informational needs
Determining what information is needed, and what type of information they should have. •They balance the information users would like to have against what they really need and what is feasible to offer. •The MIS must monitor the marketing environment in order to provide decision makers with useful information. •Sometimes the company can’t provide the needed information, because it is not available or because of MIS limitations. •The company must decide whether the value of insights gained from additional costs of providing it, since cost of obtaining, analyzing, storing and delivering information can mount quickly.

Developing the Marketing Information

Marketers can obtain needed information from internal data, marketing intelligence and marketing research.

Internal data
Internal databases are electronic collections of consumer market information obtained from data sources within the company, marketing managers can readily access and work with information in the database to identify marketing opportunities and problems, plan programs and evaluate performance. •The marketing departments provide information on customer transactions, demographics, psychographics and buying behavior. •Customer service department keeps records of customer satisfaction or service records of sales, costs and cash flows. •The sales force, reports on reseller reactions and competitor activities and marketing channel partners provide data on point-of-sale transactions. •Internal databases can usually be accessed more quickly and cheaply than other information sources.

Problem with internal databases
1.It might be collected for other purposes, therefore it may be incomplete or in the wrong form for making marketing decisions. 2.With internal databases is that data ages quickly and keeping the data current requires major efforts. 3.Managing large amount of data so that is well-integrated and readily accessible for managers to find easily requires sophisticated equipment and techniques....
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