MKTG 3832 Ch 04

Description:	Midterm Study Guide for ECU MKTG 3832 Lang
Category:	Marketing
Created by:	Michelle Renée Jenkins on 2009-10-06

Question	Answer
Marketing Information System	A process that first determines what information marketing managers need, then gathers, sorts, analyzes, stores and distributes information to system users.
Internal Company Data	Information from within the company to produce reports on the results of sales and marketing activities
Marketing Intelligence	Method by which marketers get information about everyday happenings in the marketing environment. Ex: Monitoring the internet and using “mystery shoppers”
Marketing Research	Collecting, analyzing, and interpreting data about customers, competitors, and the business environment to improve marketing effectiveness. Ex: syndicated research, custom research
Syndicated Research	Research by firms that collect data on a regular basis and sell the reports to multiple firms.
Custom Research	Research conducted for a single firm to provide specific information its managers need.
Acquired Databases	External databases that can be used to collect a variety of information from different sources. Ex: non-competing businesses, government databases
Data mining	Includes sophisticated analysis techniques to take advantage of the massive amount of transaction information now available. Analysts sift through to ID unique patterns in different customer groups.
What Marketers Can Do with Data Mining	Customer acquisition, customer retention and loyalty, customer abandonment, market basket analysis
Customer Acquisition	Membership application forms for discounts used to determine which of its current customers respond best to specific offers and sends same offers to non customers who share demographic data
Customer Retention & Loyalty	IDs and targets big-spending for special offers and inducements other customers won’t receive. Keeping the most profitable customers coming back because keeping good customers is less expensive than constantly finding new ones.
Customer Abandonment	Firing a customer because keeping their business and serving them costs the firm too much such as those who don’t spend enough or return most of what they buy.
Market Basket Analysis	Develops promotional strategies based on the records of which customers have bought certain products. HP analyses customers who have recently bought printers and sends special offers for ink cartridges.
Steps in the Marketing Research Process	Define the research problem, determine the research design, choose the method for collecting primary data, design the sample, collect the data, analyze and interpret the data, prepare the research report
Define the Research Problem	Step 1. Specifying research objectives, identifying consumer population of interest, placing the problem in an environmental context
Determine the Research Design	Step 2. Determine whether secondary data are available, determine whether primary data are required and if so, what type: exploratory research, descriptive research, casual research.
Choose the Method for Collecting Primary Data	Step 3. Survey methods are used to interview respondents. Questionnaires: loosely, moderately, or completely structured. Observational research methods. Online research.
Design the Sample	Step 4. Probability sampling, Nonprobability sample,
Probability Sampling	Each member of the population has some known chance of being included, so sample is representative. Ex: simple random, systematic, stratified.
Nonprobability Sample	Personal judgment used in selecting respondents. Some members of population have no chance of being included, so sample is not representative. Ex: convenience sampling, quota sampling.
Collect the Data	Step 5. Challenges to gathering data in foreign countries includes differences in sophistication of research operations, infrastructure/transportation challenges, lack of phones and or/low literacy rates, local customs/cultural differences, language
Analyze and Interpret the Data	Step 6.Data must be analyzed and interpreted to be meaningful. Tabulation or cross-tabulation
Tabulation	Arranging data in a table or other summary form to get a broad picture of overall responses.
Cross-tabulation	Examining the data by subgroups to see how results vary between categories.
Prepare the Research Report	Step 7. Research reports typically contain: exec summary, desc of research method, disc of results including tab/cross-tab, limitations of study, conclusions and recommendations
Marketing Research Designs	Primary Research: Exploratory, descriptive, casual. Secondary research: internal, external
Secondary Research	Internal, external
Primary Research	Exploratory, descriptive, casual
Exploratory Research	Primary. Generate insights for future, more rigorous studies. Often include in-depth consumer probing. Takes many forms: consumer interviews, focus groups, projective techniques, case studies, ethnography
Descriptive Research	Probe systematically into the problem, base conclusions on large numbers of observations, typically expresses results in quantitative terms (averages, percentages, other statistics) Ex: cross-sectional design, longitudinal design
Secondary Data	Data that have been collected for some purpose other than the problem at hand.
Primary Data	Information collected directly from respondents to specifically address the question at hand.
Data quality	Garbage in, garbage out. How much faith should marketers place in research? Three key considerations include: validity, reliability, representativeness.