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Ethical Perspective
1Advertisers: How would your view of Internet advertising change if the statistics related to
the number of people who “click through” an ad were not accurate?
2 Google and Yahoo: While you are concerned with click fraud, the process actually
generates significant revenue, what do you do?
1.1 KEY TERMS
market information system (MIS) A continuing process of identifying, collecting, analyzing,
accumulating and dispensing critical information to marketing decision makers.
marketing intelligence The collecting, analyzing, and storing of data from the macro
environment on a continuous basis.
demographics The statistical characteristics of human populations, such as age or income, used
to identify markets.
microeconomics The study of individual economic activity.
macroeconomics The study of economic activity in terms of broad measures of output and input
as well as the interaction among various sectors of an entire economy.
market research The methodical identification, collection, analysis, and distribution of data
related to discovering then solving marketing problems or opportunities and enhancing good
decision making.
management research deliverable The definition of what management wants to do with
marketing research.
research problem The definition of what information is needed to help management in a
particular situation.
exploratory research Research geared toward discovery that can either answer the research
question or identify other research variables for further study. It is generally the first step in the
marketing research process.
descriptive research Research designed to explain or illustrate some phenomenon.
causal research Descriptive research designed to identify associations between variables.
primary data Data collected specifically for a particular research question.
secondary data Data collected for some other purpose than the problem currently being
considered.
qualitative research Less structured research not meant to be used for statistical analysis that
can employ methods such as surveys and interviews to collect data.
quantitative research Research used to develop a measured understanding using statistical
analysis to assess and quantify the results.
focus group A qualitative research method that consists of a meeting (either in person or
increasingly online) of 6 to 10 people that is moderated by a professional who carefully moves
the conversation through a defined agenda in an unstructured, open format.
in-depth interview A qualitative research method that consists of an unstructured (or loosely
structured) interview with an individual who has been chosen based on some characteristic of
interest, often a demographic attribute.
survey A quantitative research method that employs structured questionnaires given to a sample
group of individuals representing the population of interest and are intended to solicit specifi c
responses to explicit questions.
behavioral data Information about when, what, and how often customers purchase products and
services as well as other customer “touches.”
observational data The documentation of behavioral patterns among the population of interest.
mechanical observation A variation of observational data that uses a device to chronicle
activity.
open-ended questions Question format that encourages respondents to be expressive and offer
the opportunity to provide more detailed, qualitative responses
closed-ended questions Question format that encourages respondents to provide specific
responses.
census A comprehensive record of each individual in the population.
sample A subgroup of the population selected for participation in research.
probability sampling The specific protocol used to identify and select individuals from the
population in which each population element has a known non-zero chance of being selected.
nonprobability sampling The selection of individuals for statistical research in which the
probability of everyone in the population being included in the sample is not identified.
data collection The distribution of a survey to its respondents, recording of the respondents’
responses, and making the data available for analysis.
online database Data stored on a server that is accessed remotely over the Internet or some other
telecommunications network.
1.2 APPLICATION QUESTIONS
1 Imagine you are the Vice President of Sales for a large security company and you have been
asked to put together a sales information system that collects, analyzes, interprets, and
distributes information from the sales force. How would you do it? What information would
you ask salespeople to collect?
Many salespeople write call reports summarizing each sales call. Much of the information
on a call report is relevant in a sales information system. This includes products discussed
with the customer, customer concerns, and changes in personnel.
1. As a market manager at Lenovo, what key information from outside the company would be
important to help in the design of a new laptop for small and medium-sized businesses
2. The marketing manager for Disney Cruise Lines wants to know what demographic trends
will affect the Cruise Line business over the next five years. What kind of research is needed
to address this question? Go out and conduct some secondary research and try to you
identify 2-3 important demographic trends that might affect the Cruise line business?
3. The market research director for John Deere has just received a call from the Marketing
Manager from the company’s lawn tractor division. The manager wants to know how the
new advertising campaign is being received by current customers. Design a research study
for this research. Be sure to include a problem definition and research design.
4. The alumni director at your institution wants to know how to serve the alumni better. Design
a survey of no more than 10 questions that the alumni director can use to ask alumni about
their interest in getting more involved with their school.
MANAGEMENT DECISION CASE: Using Information to Target Customers Who Do Not
Know They Are Being Targeted
Questions for Consideration
1. Much of Target’s recent success appears to be attributable to its internal market information
system. What types of information from external sources might Target gather to augment its
customer information and enhance analytical capability?
2. Aside from the downsides to using big data discussed in the case, what other possible issues
exist for companies implementing market research/customer insight technology in this
manner? As younger consumers in general continue to share more of their life online, how
might companies of different types utilize that information to their advantage?
3. What “dark sides” of big data and business analytics should Target be paying attention to?
What might happen to Target if they are insensitive to the potential for such processes to
offend some customers?
SUGGESTED VIDEO
Dole: Analyzing the Marketing Environment (4:25 minutes)
Description: Dole is constantly analyzing the environment to make sure their marketing message
is on target.
1. What are the long-term consequences for Dole’s decision not to focus primarily on taste?
