Chapter 3

MARKETING CONCEPTS: TESTING YOUR KNOWLEDGE 1. What is a marketing information system (MIS)? What types of information are included in a marketing information system? How does a marketing decision support system (MDSS) enable marketers to obtain easily the information they need? A marketing information system (MIS) is a system for gathering, sorting, analysing, storing and distributing relevant marketing information to managers in a timely manner. There are three primary reasons that a company needs an MIS. First, marketers generally require ongoing information (which is in the form of company records and reports added to the MIS on an ongoing basis). Second, the company needs to monitor information (which comes from regular scanning of the important marketing environments). And third, marketers use an MIS to handle requested information (which is not available in the MIS and must be obtained through customised research studies). Therefore, information in a MIS comes from four main sources: 1) internal company data, 2) marketing intelligence data on competition and other elements in the companys business environment, 3) information gathered through marketing research and 4) acquired databases. However, MIS reports are sometimes inadequate. In this case, some companies beef up their MIS with a marketing decision support system (MDSS) that includes analysis and software that enables managers to access MIS data and conduct their own analyses, often over the company intranet. Typically, an MDSS includes sophisticated statistical and modelling software tools. 2. What are the steps in the marketing research process? Why is defining the problem to be researched so important to the ultimate success of a research project? The marketing research process has seven distinct steps, as reflected in Figure 3.4 on page 76. They are: 1. Define the research problem. 2. Determine the research design. 3. Choose the data collection method. 4. Design the sample. 5. Collect the data. 6. Analyse and interpret the data. 7. Prepare the research report. The first phase (defining the research problem) is critical to the research project. Defining the research issue as precisely as possible allows researchers to set objectives that will result in the right answers to the right questions. It also ensures that the questions are asked of the right consumers and are focusing on the right factors in the problem solution. 3. What are some advantages and disadvantages of telephone interviews, mail questionnaires, face-to-face interviews and online interviews? For a quick and complete reference of the advantages and disadvantages of the various primary data collection methods, see Table 3.3 on page 85. This table summarises three to six advantages for each method listed in the question and three to seven disadvantages.

4. When considering data quality, how do validity, reliability and representativeness differ? How do you know when data have high levels of these characteristics? Validity is the extent to which the research actually measures what it was intended to measure. Reliability is the extent to which the research measurement techniques are free of errors. Representativeness is the extent to which consumers in a study are similar to a larger group in which the organisation has an interest. These three factors influence the quality of research results. Carefully defining the research problem and appropriate sampling help address issues associated with validity, reliability and representativeness, plus data analysis techniques can be used to test for these characteristics. 5. How do probability and non-probability samples differ? What are some types of probability samples? What are some types of non-probability samples? With a probability sample, each member of the population has some known chance of being included in the sample. Using a probability sample ensures that the sample is representative of the population and that inferences about the population made from the sample are justified. With a non-probability sample, the use of personal judgement in selecting respondents occurs. In fact, in some cases, the researcher uses anyone he or she can find. With a non-probability sample, some members of the population have no chance at all of being included in the sample. Types of probability samples include the simple random sample (where every member of a population has a known and equal chance of being included in the study), a systematic sampling procedure (where the researcher selects the nth member of a population after a random start), or a stratified sample (a researcher divides the population into segments that are related to the studys topic). Types of non-probability samples include a convenience sample (composed of individuals who just happen to be available when and where the data are being collected) or a quota sample (this sample includes the same proportion of individuals with certain characteristics as is found in the populationsimilar to a stratified sample except it is chosen based on personal judgement). Additional Question 6. Sampling p87: Suppose you were hired to study groups of people who are difficult to access. If you cannot access the group directly, who might you be able to sample to learn critical information? (E.g. professional golfers; upper class consumers; CEOs and executives)