CASE STUDY NEW COKE

New Coke Product failure

Was due largely to Research Failure

Tested on taste only not intangibles such as cokes name history of the co. packaging,cultural heritage and image. Decisions based on 60% ratings Spent $4 million! On research.
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Poor sales Over 1,500 phone calls a day from angry customers Old Coke returns in only 3 months

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 consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers (Kotl er)

Marketin g Informat ion (Marshall System and

LaMotte)

(Church ill)

... a set of procedures and methods for the regular, planned collection, analysis, and presentation of information for use in making marketing decisions

a comprehensive and flexible, formal and ongoing system designed to provide an organized flow of relevant information to guide marketing decision making

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Marketing Info. System

Begins

and Ends with Information Users:

- Interacts with information

users to assess
information

Develops needed information from

internal and external sources

- Helps users analyze information for marketing decisions

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- Distributes the marketing information 34 - 3

and helps managers use it for decision

Characteristics of MIS

1. It is a planned system developed to facilitate smooth and continuous flow of information. 2. It provides pertinent information, collected from sources both internal and external to the company, for use as the basis of marketing decision making. 3. It provides right information at the 7/12/12 right time to the right person.

Benefits of MIS

1. It allows marketing managers to carry out their analysis, planning implementation and control responsibilities more effectively. 2. It ensures effective tapping of marketing opportunities and enables the company to develop effective safeguard against emerging 7/12/12 marketing threats.

TYPES OF INFORMATION

Recurrent Informati on

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This is the data that an MIS supplies periodically about the market share of a specific product and customers awareness of companys brands. The data may be supplied on weekly, monthly or yearly basis.

Monitoring Information

This is the data obtained from the regular scanning of certain sources. Marketing managers may need data related to competition or the industry. It is essential so that marketing managers can be alert and identify potential problems .

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Requested Information

This information is developed in response to some specific request by the marketing manager. Secondary data or primary data through survey research are collected in response to the specific request. The MIS supplies the requested information for decision making.
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MARKETING MANAGERS
CONTROL ANALYSIS PLANNING ORGANISATION

DEVELOPING INFORMATION INTERNAL RECORD INFORMATION ANALYSIS

ACCESSING INFORMATI ON

DISTRIBUTING INFORMATION

MARKETING INTELLIGENCE

MARKETING RESEARCH

MODEL OF MkIS

MARKETING ENVIRONMENT
TARGET MACRO7/12/12 MARKET MARKETING CHANNELS COMPETITORS PUBLICS

4 STAGES IN MKIS

ACCESSING INFORMATION

DEVELOPING INFORMATION

ANALYSIS OF INFORMATION

DISTRIBUTING INFORMATION

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Assessing Infor mation Needs

Pizza Hut wants to launch a new pizza but needs feedback from the customers. Burger King develops two TV commercials and wonder which one would be more effective. You are going to start your own business in a particular city and you have to make concept and

location decisions.

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Ten questions for determining

marketing information needs

(1) What types of are you regularly called upon?

decisions

(2) What types of do you decisions?

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information

need to make these

(6) What information would you want daily? Weekly? Monthly? Yearly?
(7) What magazine and trade reports would you like to see circulated to you on a regular basis? (8) What specific topics would you like to be kept informed on?

(9) What types of data analysis programs would you

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The MIS serves company managers as well as external

partners

The MIS must balance against

needs

feasibility: costly

Not all information can be obtained.

Obtaining, processing, sorting, and delivering information is

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Benefit

of info>cost of

DEVELOPING INFORMATION

INTERNAL RECORDS

SOURCES OF INFO

MARKETING INTELLIGENCE MARKETING RESEARCH

Information gathered from sources within the company to evaluate marketing performance and to identify marketing problems and opportunities

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Marketing managers rely on internal reports on orders, sales, prices, costs, inventory levels, receivables, payables, and so on. By analyzing this information, they can spot important opportunities and problems.

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THE ORDER-TO-PAYMENT CYCLE The heart of the internal records system is the order-to-payment cycle

Sales representatives, dealers, and customers send orders to the firm. The sales department prepares invoices and transmits copies to various departments.
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Sales Information System

q

Marketing managers need timely and accurate reports on currents sales.

Wal-Mart, for example, knows the sales of each product by store and total each evening. This enables it to transmit nightly orders to suppliers for new shipments of replacement stock. Wal-Mart shares its sales data with its larger suppliers such as P&G and expects P&G to re-supply Wal-Mart stores in a timely manner. Wal-Mart has entrusted P&G with the management of its inventory.
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Companies must carefully interpret the sales data so as not to get the wrong signals. Technological gadgets are revolutionizing sales information systems and allowing representatives to have up-to-thesecond information.

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Databases, Data Warehousing, and Data Mining

q

A database is anapplicationthat manages data and allows fast storage and retrieval of that data Today companies organize their information in database customer database, product database, salesperson A data warehouse is a relational from the database and then combine data database that is designed for query and analysis different databases. rather than for transaction processing. It usually contains historical data derived 7/12/12 transaction data, but it can include from

data mining (sometimes called data or knowledge discovery) is the process of analyzing data from different perspectives and summarizing it into useful information - information that can be used to increase revenue, cuts costs, or both. Data mining software is one of a number of analytical tools for analyzing data. It allows users to analyze data from many different dimensions or angles, categorize it, and summarize the relationships identified. Technically, data mining is the process of finding correlations or patterns among dozens of 7/12/12 fields in large relational databases.
q

DEVELOPING INFORMATION
SOURCES OF INFO

INTERNAL RECORDS

MARKETING INTELLIGENCE MARKETING RESEARCH

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Marketing intelligence is the systematic collection and analysis of publicly available information about competitors and trends in the marketing environment. Competitive

Sources of Competitive Intelligence

Company employees Internet Garbage Published information Competitors employees Trade shows Benchmarking Channel members and key customers
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Analyzing Marketing Intelligence Data Competitor analysis -- knowing about competitors

1. Who are our competitors?

2. What are their strategies?

3. What are their objectives?

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4. What are their strengths and weaknesses?

5. What are their reaction patterns?

Analyzing Marketing Intelligence Data

Competitor analysis -- levels of competition Other companies offering a similar Brand Competition
product and services to the same customer at similar prices All companies making the same product or class of products All companies manufacturing products that supply the same service All companies competing for the same consumer dollars

Industry Competition

Form Competition

Generic Competition
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DEVELOPING INFORMATION
SOURCES OF INFO
Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

INTERNAL RECORDS

MARKETING INTELLIGENCE MARKETING RESEARCH

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Marketing Research Process

Steps in the Marketing Research Process:
Defining the problem and research objectives Developing the research plan for collecting information Implementing the research plan -- collecting and analyzing the data Interpreting and reporting the findings

Objectives: Exploratory Descriptive Causal

Secondary data vs. primary data Sample vs. population Research Approaches

Put the plan into action collect and analyze the data

Interpret the findings-draw conclusions and report to management

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Marketing Research Process

Defining the Problem and Research Objectives
Exploratory Research Descriptive Research Causal Research (Unaware of Problem) (Aware of Problem) (Problem Clearly Defined)
possible situation

Our sales are declining and What kind of people are buyingWill buyers purchase more of we dont know why. our product? Who buys our our products in a new package? competitors product? Would people be interested Which of two advertising in our new product idea? What features do buyers prefercampaigns is more effective? in our product? 7/12/12

Marketing Research Process

Develop Research Plan

Secondary vs Primary Data Research Approaches

Observation Method Survey Method Experimental Method

Contact Methods Sampling Plan Research Instruments

(Mail, telephone, personal, internet)

Develop the Research Plan

Secondary vs. Primary Data

Already Exists Somewhere. + Obtained More Quickly, Lower Cost. - Might Not be Usable Data.

Secondar y Information That

Both Must Be: Relevant Accurate Current Impartial

Primar y Information

Collected for the Specific Purpose at Hand.

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Marketing Research Process

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Develop the Research Plan

Research Approaches

Observational Research
Gathering data by observing people, actions and situations (Exploratory)

Survey Research
Asking individuals about attitudes, preferences or buying behaviors (Descriptive)

Experimental Research
Using groups of people to determine cause-and-effect relationships (Causal)

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Develop the Research Plan

Contact Methods
Mail
Flexibility Quantity of Data Collected Control of Interviewer Control of Sample Speed of Data Collection Response Rate Cost Poor Good Excellent Fair Poor Fair Good

Telephone Personal
Excellent Excellent Poor Fair Good Good Poor

Internet
Good Good Fair Poor Excellent Good Excellent

Good Fair Fair Excellent Excellent Good Fair

Develop the Research Plan

Sampling Plan
Probability or Non-probability sampling? Who is to be surveyed? (What Sampling Unit?)

How should the sample be chosen?

Sample representative segment of the population

How many should be surveyed?

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Marketing Research Process

Research Instruments
Structured or Unstructured

Interview (structured or unstructured) Mechanical Devices (Tape record, video) Structured (Questionnaire)

Presenting the Research Plan

Summarize the plan in a written proposal

Marketing Research Process

Implement the Research Plan
Putting plan into action

Collecting the data Process the data Analyzing the Data

Interpret and Report the Findings

Turn data into information

Interpret the findings Draw conclusions Report findings and conclusions

ANALYSIS OF INFORMATION
This involves further and more detailed analysis of Marketing intelligence and marketing research data (sometimes this is called secondary analysis of primary data) through: 1.Advanced statistical analysis 2. Mathematical models

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DISTRIBUTING INFORMATION
Information has no value until managers use it to make better decisions

It must reach the appropriate managers at the right time. Often information arrives too late to be useful.

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CONCLUSION

We can conclude the advances in information technology and innovation in marketing systems is boosting the ability of marketing managers giving them an opportunity to react much faster to their customer needs and end up with closing the sale successfully and customer satisfaction. Today the market information is sought in 7/12/12 seconds. Gone are the days when the

THANKYOU
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