Chapter 5 Summary
Information makes the world go round! Information must not be confused with data. Data is simply facts and statistics, whereas information refers to how to present the data in a useful manner to make decisions. In an effort to provide the correct information to the marketing manager, a marketing decision support system (MDSS) needs to be developed. A MDSS allows the marketing manager to conduct "what if" analysis.
Just as important as developing the MDSS, is finding sources and collecting the information. There are two sources of information: internal and external. Internal information comes from inside the firm from the various functional areas. External information is collected from outside the firm from sources such as business and industry publications, research services, trade groups, customer surveys, government reports, and computer databases. Information can be primary or secondary. Primary information is collected for the purpose of an investigation at hand. It is collected first hand. Secondary information has already been collected and the marketing manager simply taps into this information.
Collecting information is part of the marketing research process. This process is comprised of a number of steps. The first is formulating the problems at hand. Then the marketing manager develops a research design plan which determines how to collect and analyze data. The third step is to actually collect the data through observation and/or surveys. The fourth step is to then analyze and interpret the data collected. The fifth and final step is to write the research report based on the data collected.
Technology has made the data collection process less tedious and frustrating. Things such as geographic information systems (GIS), virtual reality, and the internet have expanded the sources from which the marketing manager can gather information and make decisions.
One major problem that marketing managers must come to grips with is the ethical problems surrounding how much information should be gathered and used. Specific areas of ethical concern are:
- Preserving the participants anonymity
- Exposing participants to mental stress
- Asking participants questions against their self-interest
- Using special equipment and techniques
- Involving participants in research without their knowledge
- Using deception
- Using coercion
- Depriving participants of their right to self-determination
Marketing managers who do not consider the ethical and privacy rights of participants may open their firms up to lawsuits and embarrassment.
Because the world has developed into one global marketplace, marketing managers must now collect and analyze data from across the world. This is a much more difficult process than domestically because data may neither be available nor accurate. It is normal that marketing managers first gather secondary data and then follow up with primary research. At a minimum, secondary data should include laws, demographics, and culture.
