Marketing Essentials

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Marketing Essentials
n Chapter 28 Marketing Research
Section 28.1 Marketing Information Systems
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SECTION 28.1
Marketing Information Systems
What You'll Learn

• The importance of marketing research
• The function of a marketing information system

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SECTION 28.1
Marketing Information Systems
Why It's Important
Successful companies must be able to understand
the needs and wants of their customers. Marketing
research can provide the necessary information to
help a business while planning, solving problems,
and making decisions regarding its products and
services.
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SECTION 28.1
Marketing Information Systems
Key Terms

• marketing research
• marketing information system
• database

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SECTION 28.1
Marketing Information Systems
Defining Marketing Research
Marketing research links the consumer, customer,
and public to the marketer through information.
Marketing information is used to identify
marketing opportunities, solve marketing
problems, implement marketing plans, and monitor
marketing performance.
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SECTION 28.1
Marketing Information Systems
Why is Marketing Research Important?

• Given the high failure rate of new products on
  the market, marketing research can make or break
  a business. Marketing research helps businesses
• plan future operations to increase sales and
  profits
• decide what products to produce
• decide where to sell products
• decide how to promote products
• decide how to price products
• solve marketing problems
• anticipate future marketing potential
• keep track of current markets and competitors

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SECTION 28.1
Marketing Information Systems
Who Uses Marketing Research?

• Marketing research is valuable for organizations
  of any size.
• Marketing research is useful to
• businesses
• state and federal governments
• trade associations

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SECTION 28.1
Marketing Information Systems
Market Research Revenues by Industry Groups
Over 3 billion is spent annually by industry
groups for marketing research. Why does the
government spend money on marketing research?
What industry groups do you think would be
interested in your opinions?
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SECTION 28.1
Marketing Information Systems
Marketing Information Systems

• A marketing information system is a set of
  procedures and methods that regularly generates,
  stores, analyzes, and distributes marketing
  information. Data includes
• Company records sales results, expenses,
  supplier data
• Competitors' records prices, location, market
  share
• Customer profiles buying behavior, shopping
  patterns, lifestyles
• Government data price trends, economic
  projections

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SECTION 28.1
Marketing Information Systems
Marketing Databases
Information technologies have made the collection
and analysis of data for marketing
decision-making much easier. Information about
consumers and their buying habits are stored in a
computer database, a collection (or file) of
related information about a specific topic.
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SECTION 28.1
Marketing Information Systems
Difficulties of Marketing Information Systems
Setting up a marketing information system
requires a significant investment of time and
money. Trained personnel are needed to maintain
and analyze the data collected in the system.
Vast amounts of data can be obtained, so
businesses have to prioritize the information
that is most important to them.
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ASSESSMENT
28.1
Reviewing Key Terms and Concepts
1. What is marketing research? 2. How does
marketing research help businesses? 3. Who uses
marketing research? 4. What is a marketing
information system? 5. What is a database?
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ASSESSMENT
28.1
Thinking Critically
Supermarkets often require the use of a "valued
customer" card to obtain special discounts on the
store's products. Do you think that supermarkets
should give special bargains in exchange for
personal shopping information?
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Marketing Essentials
End of Section 28.1