Chapter 7

Marketing information system – a system, in which marketing information is formally gathered, stored, analyzed and distributed to manage in accord with their informational needs on a regular basis. Data are derived from the marketing environment and transferred into the information. MkIS comprises:

• Internal continuous data

• Internal ad hoc data (information, used for a special purpose)

• Environmental scanning (focus on general situation)

• Marketing research (more immediate situation)

MkIS

Internal continuous data

Internal ad hoc data

Environmental scanning

Marketing research

• external ad hoc

• external continuous

Marketing decision-making

Strategic

- New products and markets

- Competitive strategy

Tactic

• Marketing mix planning

Operational

• salesforce monitoring

• advertising copy

Marketing environment

The company

Customers

suppliers

Distributors

Economic

Social

Legal

Technological

A marketing information system

Types of marketing research:

1. Ad hoc research

- Customer designed studies (tailored for specific needs of customers)

- Omnibus studies (more general)

2. Continuous research

- Consumer panels (recruiting large numbers of HH, which provide information on their purchases over time)

- Retail audits (cooperation with retailers, with the help of bar-codes)

- television viewership panels

- Marketing databases

- Customer relationship management system

- Website analysis

Main quantitative data collection

• descriptive research

• experimental research

• the sampling process

• the survey method

• questionnaire design

Exploratory research

• secondary research

• qualitative research

• consultation with experts

• observation

Research planning

• initial contact

• research brief

• research proposal

Marketing research process

Data analysis and interpretation

Report writing and presentation

Qualitative research does not equal to Quantitative research

Basic ethical concerns of marketing research:

1. Intrusions on privacy

2. The misuse of marketing research foundings

3. Competitive information gathering

4. Selling under the guise of marketing research

Chapter 8

Market segmentation – identification of individuals or organizations with similar characteristics that have significant implication for the determination of marketing strategy. Advantages of marketing segmentation:

• target market selection

• tailored MM

• Differentiation

• opportunities & threats

Target market – a segment of market a company would like to focus on

Behavioral	Psychographic	Profile
Benefits sought (price, pleasure, convenience, performance)	Lifestyle (trendsetters, conservatives, sophisticates)	Demographic (age, gender, life-cycle)
Purchase occasion (self-buy, gift, special occasion, eating, etc.)	Personality ( brand choice is a direct manifestation of life position)	Socio-economic (social class, education age)
		Geographic variables
		Geodemographic (ACORN & MOSAIC, divide consumers, basing on their geographic & demographic characteristics)
Purchase behavior (solus buying, brand switching, innovators)
Usage (heavy, middle, light users)
Perception, beliefs and values (favorable, unfavorable)

Due to Development of the internet there are following changes in marketing approaches:

1. Each customer can be a part of microsegment with an extra-precise level of segmentation

2. Online shops as well as bricks-and-mortars ones define attitude of customers

Segmentation of organizational markets (B2B)

Macrosegmentation	Microsegmentation
Organizational size	Choice criteria (price, economic value, service, etc.)
Industry	Decision- making unit structure (people, who play the most significant part in taking decisions about the purchase)
Geographic location	Decision-making process (short, long)
	Buy class (straight rebuy, modified rebuy, new task), purchasing organization (centralized or decentralized)
	Organizational innovativeness (innovator, follower, laggard)
	Purchasing organization (centralized, decentralized)

Target marketing

- choice of specific segments to serve and is a key element in marketing strategy. The firm needs to evaluate the segments and decide, which one of them to serve.

Competitive differentiation

New entrants

Nature of competition

Bargaining power of s.

Bargaining power of b.

Price sensitivity

Segment profitability

Segment profitability

Segment growth rate

Segment size

When evaluating market segments, a company should examine two broad issues: market attractiveness and the company’s capability to compete in this segment.

PEST

Entry/exit barriers

Market factors

Competitive factors

Market attractiveness

To aseeess company’s ability to compete, used the following key pararmetetrs:

To assess company’s abilities to compete are used the following parameters:

• exploitable market assets

• cost advantages

• managerial commitment and capabilities

• technological edge

Target marketing strategies

Undifferentiated marketing

MM  Whole market

Differentiated marketing

MM 1  Segment 1

MM 2  Segment 2  Serve only one segment (focused marketing)

MM 3  Segment 3

Customized marketing

MM 1  Customer 1

MM 2  Customer 2

MM 3  Customer 3

Positioning

- is the choice of target market and differential advantage (where and how to compete). The objective of positioning is to create and maintain a distinctive place in the market for a company and its products

Keys to successful positioning are

• clarity

• consistency

• credibility

• competitiveness

Repositioning