CHAPTER 6:

MARKETING RESEARCH &

MARKETING INFORMATION
SYSTEM &
NEW PRODUCT DEVP

Key Notes:
1. Define marketing research.
2. Describe the reasons for doing marketing
research (the five Cs) and explain why
marketing research is sometimes not done.
3. List and describe the FIVE (5) key
requirements for good research information.
4. List in order and explain the steps in the
marketing research process.
2

cont.
5. Describe the internal and external
sources of secondary research.
6. Explain the differences between
PRIMARY and SECONDARY research
and list their respective advantages and
disadvantages.

cont.
8. Explain the advantages and
disadvantages of personal interviews,
mail, telephone, in-house, selfadministered, and online surveys.
9. Explain the important of ethical
marketing research & issues in marketing

MARKETING RESEARCH
Definition:
the systematic gathering, recording and
analysing of data about PROBLEMS relating to
the marketing of goods and services
American Marketing Association

 The function that links the consumer, customer,

and public to the marketer through information.
The information is used to:
1. Identify and define marketing opportunities
and problems.
2. Generate, refine, and evaluate marketing
actions.
3. Monitor marketing performance.
4. Improve understanding of marketing as a
process.
6

6.1.1.

Purpose of marketing
research

Focus on several areas:

a. Market segmentation
b. Evaluation of marketing programs
c. Measurement of results
d. Decision Making


cont.
6.1.1.Purpose of marketing research
The main functions of market research should
aid management in the following areas:
a. Market segmentation
- describe each market that the bank is trying to
serve

Cont.
b. Evaluation of marketing programs
- to satisfy customers needs
- It is achieved by testing products, concepts &
advertising campaigns, prior to their introduction
to the market.

cont.
c. Measurement of results

- efforts in quantifiable terms through

specialized studies that look at the past, present
(eg:customer satisfaction, brand image &
product introduction measurement) &
future (eg:new product, new market or new

10

Cont.
- this can be subdivided into:
i. the tracking of the product
requirements/conditions(syarat2) of
each type of account, and
ii. using internal data (e.g. number of
account, openings, closings, & balance)
THE BANK CAN THEN DETERMINE
HOW WELL A SPECIFIC PRODUCT
OR SERVICE HAS PERFORMED!
11

d. Decision Making
Researchers role is not to make decisions, but to
collect data on a confusing & uncertain market &
rearrange them into a form that is understandable
to mgt/bankers & asist in decision making.
Research should improve the decision making
process through the measurement of probabilities
& potential value of alternative actions.
The real value of research can be seen over the
long run- increasing the percentage of good
decisions improved bottom line /profits/sales
performance.

12

6.1.2 Reasons for Doing Marketing

Research: The Five Cs
1. Customers: To determine how well
customer needs are being met/fulfill,
investigate new target markets, and
assess and test new services and
facilities.
2. Competition: To identify primary
competitors and pinpoint their strengths
and weaknesses.

13

cont.
3. Confidence: To reduce the perceived risk
in making marketing decisions.
4. Credibility: To increase the
believability/kepercayaan of promotional
messages among customers.

14

6.1.3 Reasons for Not Doing Marketing

Research
1. Timing: It will take to much time.
2. Cost: The cost of the research is too
high.
3. Reliability: There is no reliable
research method available for doing the
research.

15

cont.
4. Competitive intelligence: There is a
fear that competitors will learn about the
organizations intentions.
5. Management decision: Management
prefers to use own judgment/own decision.

16

6.1.4 Five Key Requirements of Marketing

Research Information
1. Utility: Can we use it (information)?
Does it apply to us?
2. Timeliness: Will it be available in time?
3. Cost-effectiveness: Do the benefits

17

6.1.5 Marketing Research Programs and

Projects
a. Marketing Research Program:
A plan or program to investigate several
marketing opportunities or problems (several
projects).
b. Marketing Research Project:

18

6.2. Marketing Research Process

- consists of:
1) defining the problem & research objectives,
2) developing the research plan,
3) implementing the research plan &
4) interpreting &
5) reporting the findings
19

Cont.

Define the
problem &
research
objectives

Develop
the
research
plan for
data
collection

Implement
research
plan in
collecting
analysis
data

Analysis

Feedback
& actions

20

cont.
1. Define the problem & research objectives:
- Define research problem
example:
21

 i. Exploratory research:
aims to gather preliminary information that
will help define the problem & suggest
hypotheses.

22

Cont.
ii. Descriptive research
- Typically answers who, what, why, when, how
questions
- Used for describing marketing problems,
situations or markets
23

Cont.
iii. Causal research
- Aims to test hypotheses about the cause &
effect relationships
- E.g. a 10% increase in commissions charged
for outward telegraphic transfers (TT) result in a
24
20% fall in the number of TT transactions

Cont.
- Characteristics:
- Based on experiments.
- Complex; time consuming; expensive.
- Controlling variables is difficult.
- Not very commonly used.

25

2. Develop the research plan for data

collection:
- outlines sources of existing data, advises
the specific research approaches,
contact ,methods, sampling plans &
instruments that were used to gather new
data

26

Cont.
Collecting Data
Types of data
Primary data: data observed and
recorded or collected directly from
respondents
Secondary data: is information that
already exists having collected for another
purpose
27

28

29

Cont.
Advantages and Disadvantages of
Secondary Data
Advantages
- Inexpensive
- Easily accessible
- Immediately available

30

Cont.
Advantages and Disadvantages of
Primary Data
Advantages
- Applicable and usable
- Accurate and reliable
- Up-to-date

31

Cont.
Primary Data Methods
- Experimental (e.g., test marketing)
- Observational (human and mechanical)
- Survey (mail, telephone, personal interview,
in-house self-administered, online)
- Simulation (mathematical and computer
modeling)

32

3. Implement research plan in collecting

analyzing data:
- Involves collecting, processing, & analyzing
the data gathered.
- Data collected will have to be processed to
reveal important facts & information. Several
statistical methods can be used to tabulate &
interpret the data (SPSS/Eviews/SAS).

33

4. Analyze And Interpret Data:

- the information must be interpreted
5. Feedback & actions:
- Make recommendations from conclusions.
The findings will be reported to management
who will take the appropriate action based on
the information presented

34

6.2.1 The Importance of Ethical Marketing

Research
- Ethical questions affect:
- The reliability of the research
- The researchermarketing manager
relationship
- The nature of marketing managers decisions
35

6.2.2 International Issues in Marketing

Research
- Modification of data-gathering methods to
account for regional differences
- Use of two-pronged approach to international
marketing research
- Detailed search for and analysis of secondary
data
- Field research to refine firms understanding of 36

6.3. MARKETING INFORMATION SYSTEM

Kotler's1 definition: MIS is more than a
system of data collection or a set of information
technologies:
Consists of people, equipment, and procedures
to gather, sort, analyze, evaluate, and distribute
needed, timely, and accurate information to
marketing decision makers.
37

Cont.
6.3.2 Assessing information needs:
- It is costly to gather data, process data, store
data & maintain the information database that is
not often use or not useful.
- a good MIS system balances information that

38

Cont.
6.3.3 Developing information:
Four Main Sources and Types
- Internal records information
- Marketing intelligence
- Marketing research
- Marketing Decision Support System (MDSS)
39

Cont.
Internal Records
Information from sources within the organization
used to evaluate marketing performance and to
identify marketing problems and opportunities
Marketing Intelligence
40

Cont.
Marketing Research
- the bank may not have its own researchers &
therefore has to approach a market research
company/consultant
- marketing researchers provide services such
as measuring market share, estimating market
potential of a new product, assessing customer

41

Cont.
Marketing Decision Support Systems
(MDSS)
- Decision support system will allow the
information to be analyzed, interpreted &
distributed to the right decision makers in the
bank
42

The components of a computerised MIS

Table
Data Bank

Statistical
Bank

MKIS

Display
unit

Marketing
Manager

Model
Bank
43

Cont.
The components of a computerised MKIS
Data bank - raw data e.g historical sales
data, secondary data
Statistical bank - programmes to carryout sales forecasts, spending projections
A model bank - stores marketing models
e.g Ansoffs matrix, Boston Matrix,product
life cycle
Display unit - VDU and keyboard
44

Cont.
6.3.4 Distributing information
- is a trend now that banks need management
information on a regular basis for specific
decision makers to make certain kind of
decisions.
45

Cont.
6.3.5 Customer & Product Information
The three investigative areas are broadly
categorized:
- Customer Information System (CIS)
- Product Information System (PIS)
- Cost Centre Information System (CCIS

46

Cont.
Customer
Information
System (CIS)

Primary & secondary markets.

Relative profitability of markets.
Analysis of retail customers:
Demographic
Psychographics, and
Socioeconomic data
Analysis of commercial customers.
Type of business.
Deposit & loan balances.
Number of products & services used.
Account growth & duration.
Profitability of accounts.
Banking patterns.
47

Cont.
Product
Information
System (PIS)

New product development.

Modifications/ improvement of
present products & services.
Applications of products &
services
Packaging of products.
Products & service
preferences of customers.
Profitability of products &
services.
48

Cont.
Cost Centre
Information
System
(CCIS)

Sales performance measurement.

Sales training effectiveness.
Costs of products & services.
Sales territories/ Branch locations.

49

6.4

MIS for profitability analysis

- profitability analysis is readily acceptable that

the banks must take a profit from its total loan
portfolio.

- discusses the support systems that will assist

bank management to expediently monitor &
analyze customer performance & profit

50

Cont.
- The MIS should be designed that it can
generate information to assist marketing
managers to prepare marketing plans,
sales forecast & continuously gathering market
intelligence to monitor product profitability.

51