In order to develop, companies need information and they need it fast, accurate, timely and sufficient, that is what the Marketing Information System takes care of.
Every day, companies face new challenges: they must achieve maximum levels of quality and customer satisfaction, launch new products, position and consolidate existing ones, seek greater market share, etc.
Facing each of these challenges implies meeting greater information needs day by day and, although statistics, computing and engineering are highly developed, all the information that is needed to make marketing decisions is almost never possessed, this is due in largely because the economy and people are highly variable. This dynamic, linked to the need to obtain profits, forces companies to require more and better information and to design systems that allow them to obtain and manage it in the best way possible.
To make the information process efficient, get it, analyze it and make decisions based on it, it is developed in companies, generally in the marketing department, which is known as MARKETING INFORMATION SYSTEM or MARKETING.
THE MARKETING OR MARKETING INFORMATION SYSTEM
Definition:
A Marketing Information System (SIM) is a permanent and interactive structure composed of people, equipment and procedures, whose purpose is to collect, classify, analyze, evaluate and distribute pertinent, timely and precise information that will serve those who make marketing decisions to improve planning, execution and control. KOTLER
Marketing information system
This image explains the concept of the system, which begins and ends in marketing management, but in this transit goes through the interior of the company, crosses the environment and returns to the firm and those responsible for making marketing decisions.
The first station or function of the system consists of evaluating the information needs, with this it seeks to know what the information needs of the people in charge of marketing decisions have. What the SIM must carry out is the reconciliation between what these people want to know, what they need and what can be achieved, since surely there will be cases in which a manager asks for a lot of information that it may not be possible to obtain or if is achieved will not be useful for making decisions, of course, the opposite case can also be presented in which a manager does not ask for information that will be useful and can be obtained.
The SIM must monitor the marketing environment and provide decision makers with the information they should have to make key marketing decisions. KOTLER
Knowing what decision makers need, we proceed to look for that information, both internally and externally. This search and subsequent analysis is known as DEVELOPMENT OF INFORMATION.
The first step consists of searching for information in the company's internal records and reports, for example in the financial statements or in the detailed records of sales, orders, inventories, accounts receivable and costs. This type of information is obtained quickly and at low costs, it is also not adapted to the requirements of the marketing department and there is extensive information that probably will not be required.
The SIM must collect, organize, process and index this mountain of information so that managers can find it easily and quickly. KOTLER
After looking at the internal information, you must proceed to look for information about the environment, this is achieved through the so-called marketing reports that consist of information related to events, events and all kinds of daily information about the environment (new regulations, demographic and social trends, technological developments, macroeconomic environment, behavior of competitors, etc.) that can help decision makers to prepare and adjust the marketing plan of the firm. There are two kinds of reports, one is the defensive, which helps the plans follow their normal course without being affected by the environment, the other is the offensive one that seeks to detect new market opportunities. The information obtained through the marketing reports can be collected from various sources,Suppliers and customers, the same employees, the sales force, those in charge of purchasing and even the government, can become allies of information from the environment and the competition.
The SIM should explore the environment in detail, select relevant and actionable information, and help managers assess and use it. KOTLER
Market research
After searching for information within the organizations, we proceed to look for external information, from the company's environment. As you will remember, the first step in this external search is taken through the so-called marketing reports, well, these reports in many cases do not provide enough information to allow decision-making or the formulation of marketing policies and strategies. When this lack of information is detected, formal studies of specific situations should be undertaken, these studies are known as market research.
Definition
Market research is the systematic design, collection, analysis, and communication of data and results relevant to a specific marketing situation facing the company. Kotler
Practically all marketing decisions must be accompanied by studies and information gathering, if a company wants to launch a new product it will need market research, if it wants to know the public's response to a commercial advertisement it will also need it, etc.
More and more organizations are using market research to plan and execute marketing actions, surely there are large firms that use it six or seven times in a year, there will also be some SMEs that use it a couple of times, but all they turn to it.
The most common market research activities are the measurement of market potentials, market share analysis, determination of the characteristics of a market, sales analysis, studies of business trends, short-term forecasts, studies of competing products, long-term forecast, SIM studies and existing product tests
Market research firms
Companies can carry out market research themselves through their sales and marketing department, but they can also hire external companies to carry it out, these market research firms are divided into three groups:
- Research agency services firms: collect periodic information on consumers and on the market to sell it to companies or other clients Market research firms by request: they are contracted to execute specific projects, the report belongs to the client. specialized market research: they provide a specialized service to other research firms or to companies' marketing departments.
Whether a company uses external market research firms depends largely on its own resources and organization, if it does not have a specialized division within the marketing department for these tasks, external contracting is preferable, although expensive, the information provided is very accurate and adjusted to reality.
Examples of Market Research firms are:
- IDCJupiter CommunicatiosAC NielsenForrester ResearchNielsen Media ResearchNetRatingsCyberAtlasGallup
Market research process
The market research process consists of four steps, definition of the problem and the objectives of the research, development of the research plan to collect information, implementation of the research plan and interpretation and reporting of the results, let's see them in detail:
1. Definition of the problem and the objectives of the investigation
This is usually the most difficult step in the process, since you can know that there is something wrong, but the specific causes are not determined. For example, when the sales of a dairy drinks manufacturer decline, how to determine what is happening in the market, how to know if it is the advertising that is failing, the product or the price. It is common to make mistakes, therefore, the problem must be defined in a concrete way and must be related to specific decisions.
"A well-defined problem has been solved in half."
Once the problem is defined, the objectives of the investigation are established. There are basically three types of objectives for a research project:
- Exploratory objective: seeks to collect preliminary information that will help define the problem and recommend hypotheses in a more optimal way Descriptive objective: seeks to describe aspects such as market potential or consumer demographics Casual objective: seeks to test hypotheses of cause-effect relationships. Eg: if investment in television advertising is increased, how much does the product's sales increase
Investigations usually begin with exploratory objectives to develop descriptive and casual objectives later.
It must be taken into account that this first step, defining and delimiting the problem and setting objectives, will be the navigation chart for the rest of the investigation.
The next installment of this series will present the other steps of a market research, I invite you to follow it, the links are below.
2. Determination of specific information needs
The research objectives previously determined, in the first phase of the research, must be translated into specific information needs. Suppose, for example, that GERBER, the baby products firm, decides to research the market to appreciate how consumers would react to a bottle made of a new material, which although slightly more expensive than the other bottles of the firm, it does not need to be sterilized and is not externally heated, thus saving sterilization and cool down time for today's busy and inexperienced parents.
Specifically, the firm may need the following information:
Demographics, lifestyle and economic conditions of parents using GERBER bottles. Consumption patterns in terms of bottle use, how many bottles the average baby consumes in a day, what is the size and capacity of the parent's preferred bottle, etc.
3. Obtaining information
To obtain the information, secondary and primary data can be collected, the secondary ones are existing and available information that has been obtained for another purpose, the primary ones are those that are collected for the purpose of the moment.
The quality of the information is evaluated based on four factors: RELEVANCE, which adjusts or adapts to the needs of the research; ACCURACY, the reliability of the information; PRESENT; IMPARTIALITY, the objectivity with which it was collected
Obtaining secondary data
Investigations usually begin with secondary data, gathering internal and external sources, the following table shows secondary data sources:
| SECONDARY DATA SOURCES | |
| INTERNAL SOURCES | Firm financial statements, accounting supports such as invoices, inventory records, and other research reports |
| GOVERNMENT PUBLICATIONS | They depend on each country, generally there are specialized departments in each government to keep statistics of the different sectors of economic activity |
| PERIODIC PUBLICATIONS AND BOOKS | Also in each country there are different written or other media that reveal market trends |
| COMMERCIAL DATA | They are the ones that provide specialized firms |
These data are generally obtained more easily, quickly and at a lower cost than the primary ones, but they have the disadvantage of not providing all of the necessary information, and their quality is not the most convenient for making decisions, so they should be sought primary data.
Planning for primary data collection
The collection of this data must be as structured as possible in order to achieve the highest quality of information that allows making the right decisions. The plan to collect the primary information must be conceived by experts and the director of the marketing department must approve its design and thus have the possibility to analyze and better interpret the results. The following table allows us to appreciate the areas to be considered in the design of a primary data collection plan
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| RESEARCH APPROACHES | CONTACT METHODS | SAMPLE PLAN | INVESTIGATION INSTRUMENTS | |||||||||||
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Now let's examine in a bit of detail the areas that are considered in primary data collection planning, let's start with the research focus. Market research in its part of collecting primary data can contemplate three approaches, observation, survey and experiment.
Observational research
It consists of collecting primary data from the observation of pertinent people, actions and situations. For example, looking at your competitor's advertisements to gain insight into their ad spend and their promotion strategies and new products. Another example could be the visit to the points of sale of the competition to observe prices, physical distribution, product models, etc.
This approach has several application methods, the previous examples describe the observation when it occurs naturally, but simulated exercises can also be carried out in which behaviors and reactions of potential buyers are observed when faced with mock situations. It can also be structured, when the researcher is aware of what to observe, or unstructured, when the researcher in her opinion decides what to observe.
Observation allows, in many cases, to detect information that consumers may not or may not want to supply, for example their behavior in the supermarket, what they buy first, what they leave until the end, etc., behaviors like these are often not perceptible to the client who is not aware of them, but they are perceptible to an observer. In other cases, research through observation will not be enough for marketing decisions, so other approaches will have to be applied.
Survey research
It is the most suitable for providing descriptive information. By asking consumers directly, data can be found regarding their beliefs, preferences, opinions, satisfaction, behaviors, etc.
As in observational research, it can be structured, when using formal lists of questions that are posed to respondents in the same way, or unstructured when it allows the interviewer to use an open format and conduct the survey according to the responses received. Surveys can be direct, when direct questions are asked about the behavior, interests or tastes of the respondent, for example, did you drink Pepsi in the last week? Or indirect, for example, who do you consider to be regular Pepsi consumers?
The survey is typically the most used research approach and almost always the only one, to determine the primary information and although it presents good results for making decisions, it also has some defects that can deteriorate the quality of the information obtained, when the questions inquire about things private it is very possible that the respondent does not want to answer them or when they are asked about something they do not know but because they do not seem ignorant, they answer anything, no reliable answers are obtained on questions that refer to unconscious acts of consumers, surveys take time Even if it is little, and many people are not willing to "lose" theirs.
Experimental research
Appropriate for collecting causal information. Study cause and effect relationships eliminating competing explanations of observed results. For example, a drug development firm can test the effects of a new product on several different patient groups in gender and age range to determine positive, negative and / or side effects of the drug in these different groups, it could also take two groups with similar characteristics in terms of age, sex and level of disease, but give each group a different dose of the drug to detect the reaction.
Contact methods
There are different methods of contact with consumers to obtain the information they are looking for, the fundamental ones are: telephone, by mail and in person.
The telephone interview is a bit expensive but sometimes not very effective and reliable, it cannot be determined, for example, that the person being interviewed has the demographic characteristics that are desired (age, occupation, education, etc.), in addition, the people are generally reluctant to answer, on the other hand, this method is fast and flexible.
The questionnaires by mail have a very low cost (more if it is email), with them large amounts of information can be obtained but, they are of very low reliability, the responses can be not very honest and the response rate is usually low Furthermore, it is difficult to control who actually answers the questionnaire, if you send it to the father of the family, it can be answered by the son, for example.
Personal interviews can be individual or group, individual interviews are highly reliable and flexible, although they are expensive they are the ones that yield the most accurate results. The groups (groups of between 6 and 10 individuals), consist of bringing people together with a moderator or interviewer, to obtain different impressions about a new product or a change to an existing one, in order to record all impressions in video or recording tapes, which allow the information sought to be collected. It is highly reliable and widely used to understand consumer thoughts and feelings.
The success of telephone and personal interviews depends on the good preparation of the interviewer and the environment in which the interview takes place.
To get the information you want, it is not necessary to interview the entire population that makes up the target segment, it is enough to identify a sample and it is contacted to obtain the information. The Sampling Plan consists of making decisions about three factors, the sampling unit, the sample size, and the sampling procedure.
The sampling unit: consists of deciding who is going to be interviewed. In general it is obvious, for example if you are looking for information in the process of launching a new blender more powerful than the existing ones, who should you interview?
Sample size: the decision is made on how many people should be interviewed so that the information obtained is representative of the entire target population.
Sampling procedure: determines how the interviewees should be chosen, in such a way that the sample will be obtained in a probabilistic way so that it is representative. Probability sampling allows obtaining confidence and error limits (the three types of probability sampling are observed in the right column). In addition to the probabilistic procedure, non-probabilistic samples can be determined through factors such as convenience, in which the easiest members of the population for which information is available are selected; the trial, in which the sample is selected according to the investigator's judgment and the quota, in which a certain number of people in each of several categories are searched and interviewed.
Probabilistic sample types
- Simple random sample. Any member of the population has a known and equal opportunity for selection; Stratified random sample. Population divided into mutually exclusive groups and random samples are drawn from each one; Group sample (area). Population divided into mutually exclusive groups and the researcher draws a sample of the groups to be interviewed
To carry out interviews or surveys, in order to collect primary data, there are two types of research instruments, the questionnaire and mechanical instruments.
The questionnaire is the most common element, it consists of a series of questions that will be applied to one or more respondents for him or them to answer.
Mechanical instruments are used to determine emotional elements and measure the strength of interest. Galvanometers are used, which detect emotional arousal, optical instruments that allow determining the ocular behavior of an individual, for example when looking at a web page, instruments that allow us to appreciate which are the most watched TV programs, etc.
Having made decisions on all these aspects, sources of information, specific information to be obtained, research approach, contact method, sampling plan and instruments to be used, the research plan is presented, which is studied by the department of marketing and / or sales and then implement it. The implementation phase of the market research plan consists of carrying out the collection, processing and analysis of the information as specified in the plan, using its own personnel or external firms and using statistical tools and software for a better analysis.
After applying the plan, we proceed to interpret the results, which does not mean only the handling of technical figures but of concrete results, for which the managerial part must be integrated, which is ultimately the one that will determine the actions to be taken from according to the analysis and interpretation.
The basic research process constitutes the support stage of the study, in which all the alternatives of the theoretical development of the project and the verification elements are set, depending on the results and the objectives to be achieved.
Market research must be understood as a set of hypotheses and theses, which are related to knowledge of the problem under study. The research method has been carried out with the aim of studying, analyzing and knowing the market and its components.
The investigation can be directed to the study of prices, brands, packaging, etc., but it is necessary to carry out a global analysis of the various situations that may arise and see which are the main problems that must be addressed.
Approaches to market size, current and potential demand, its projections, the product and its characteristics, prices for consumers, ways of distributing and production situations must be duly addressed, as the decisions to be taken they are very complicated and mistakes, if any, have disastrous results.
Market research classes
According to the levels, the investigation is considered of two classes: The preliminary investigation and the definitive investigation
Research. You can go to the study of prices, brands, packaging, etc., but it is necessary to carry out a global analysis of the various situations that may arise and see which are the main problems that must be addressed
1. The preliminary investigation
It serves in a first phase to define and then to check the validity of the hypotheses raised in the analysis of the situation, and, in a second stage, to detect new problems that may arise in the development of the study.
Through preliminary research, it is possible to produce and collect some data, which serve as the basis for the final investigation. The data used can be primary and secondary.
Primary: Are those that are obtained for the study's own needs, and can be achieved based on direct observation through surveys or experimentally.
The data are obtained by direct observation, when they describe specific facts and realities, which can be immediately verified by the interviewer in charge of collecting the information.
The survey is the most widely used method, since it allows direct contact with the person or persons, who are going to be interviewed to obtain the necessary information based on a previously prepared questionnaire with questions, graphics, projections or other elements that allow an adequate data collection. The survey can be carried out through personal interview and telephone.
The personal interview is the best system, since it is feasible to previously select the person or persons, who are going to give us the data and at the same time, allow clarifying the scope of the questions or certain doubts that may be generated within the interview.
The telephone is a faster and less expensive means, it allows a great saving of time, but it has information problems, it can be very useful to cross and complement information.
To carry out the survey, it is necessary to develop a questionnaire and in some cases an instruction manual that clarifies the scope of the questions. The elaboration of the questionnaire, if it is well prepared, will allow correcting the appropriate data through good communication between the interviewees and the interviewers.
The questions must clearly identify the group to which the survey is directed, they must be easy to understand and highly clear so as to allow in a simple way, the classification, tabulation, presentation and criticism of the data collected.
2. The definitive investigation
Part of the preliminary or base research, and, although the methods for collecting the data are similar, these are subjected to rigorous examinations and more demanding tests to eliminate as far as possible the errors or risks inherent to the investigation.
The methods that are applied are of a varied nature with a statistical and mathematical base, sampling for the collection and, regression and correlation for the estimation and projection.
For this reason, once the hypothesis has been defined, the objectives and goals have been set, and the problems captured in their theoretical - practical part, the research must obey a plan where:
- A penetrating analysis of the components of the market is carried out. A systematic study of the relationships and interrelationships of these components is carried out.
Preliminary and final. * Demand * Offer * Prices * Distribution * Promotion
Graph: Elements of the investigation
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| Preliminary | Definitive | |||
| Demand | Offer | Prices | Distribution | Promotion |
In any design of a market research project, it is necessary to specify several elements such as the sources to be used, the methodology, the objectives or the resources to carry out a good research study.
Typical design activities
Usually, the following activities should be followed:
- Obtaining a manageable definition of the problem. It is assumed that the problem has been previously defined at the beginning; recognition of the problem leads to a request for market research Specification of the information needed to make the decision and what this implies. The investigation must be appropriate to the needs of the decision maker. This may require considerable interaction between researcher and manager Finding available data sources and determining their quality, cost, and accessibility Selecting methodology and data sources Technique and data go hand in hand, so they must be selected together. This work will indicate the amount of value of choosing certain information, the optimal selection of which is only rarely immediate,Therefore, time, fiscal limitations, as well as non-economic ones imposed by the company, must be taken into account. Selection of resources. The human and material resources should be chosen, confirming their availability and estimating their costs. Preparation of a formal plan of action with its budget and obtaining approval from management. A formal action plan involves establishing what is going to be done (or attempted), how it will be done, when, by whom, how much it will cost, etc.A formal action plan involves establishing what is going to be done (or attempted), how it will be done, when, by whom, how much it will cost, etc.A formal action plan involves establishing what is going to be done (or attempted), how it will be done, when, by whom, how much it will cost, etc.
Even when the researcher has the necessary authority to undertake the project, he must always have the support of the management.
Conforming lists
A conformation list is simply a document that sets out some considerations made by those responsible for the projects, in order to observe if the research proposed will be useful or not given the objectives of the company.
These types of lists are often useful in the design and control of market research projects. Its preparation and use are simple and its form varies from the simplest to the most complete.
For the creation of conformation lists it would be important to ask yourself:
- What exactly is needed in terms of information? Is the market research group the right one for the task? To what extent are the other functional areas of the company involved, both inside and outside the market What coordination mechanisms are necessary? Are the time and budget allocated reasonable? Will conclusive results of the investigation be achieved?
About the research design it is important to ask yourself:
- Are the sources specified for research appropriate? Are the instruments indicated for market research reasonable: questionnaires, natural observation, projection devices, motivational research Does market research provide an adequate balance to your research plan between the various sources of information and research techniques? If surveys are proposed: What will be the ideal sample size? Is external consultation and field work required? Should there be competitive offers? Is it the methodology From understandable to clear research? Will the information provided be clear to those who will ultimately have to make research decisions?
Generally, as the above concerns are answered, little by little, the research is better understood, the market landscape and success can be achieved more easily.
It is a great mistake to design investigations without constantly rethinking and analyzing the work that is done to obtain certain data, faithful to reality and useful for those who must make important decisions.
Bibliography
KOTLER, Philip. MARKETING. 3rd Ed. 1989, Prentice Hall, p. 83-116
