Marketing Research and the MIS KOTLER BOWEN AND

Marketing Research and the MIS KOTLER, BOWEN, AND MAKENS. MARKETING FOR HOSPITALITY AND TOURISM. 6 E. PEARSON HIGHER EDUCATION. 2014

Essential Questions What information do we need? How do we get it? How can we use it?

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Marketing Information System people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers What exists between marketing managers and marketing environment 1 • Find out what information is needed 2 • Gather information from internal records, mktg intelligence, marketing research 3 • Process and analyze the information 4 • Distribute results at right time to right people

1 Assessing Information Needs A good marketing information system balances information that managers would like to have against that which they really need and is feasible to obtain The company must estimate the value of having an item of information against the costs of obtaining it Too much information can be expensive, and it can waste time

2 Gathering and Developing Information Internal Data Mktg Intelligence Mktg Research

Database Internal Data Electronic collections of consumer and market information gathered from data sources within company network info is on-hand for managers to identify marketing opportunities and problems, plan programs, and evaluate performance Information in the database can come from many sources Data warehouses Internal databases usually are quicker to access and cheaper, but they also present some problems

Internal Data Guest History vital for product improvement, advertising efficiency, developing new products, making marketing and sales plans Personal information Name Address Postal code Email Phone #s – cell, home, work Family size Personal, business, emergency Head of household Employer info, position Purchase information Purchase method Source of Reservation Type of product purchased (regular, premium) Purchases during stay (phone calls, room service, minibar, restaurant, fitness classes, spa treatments, souvenirs, pictures, casino Length of stay Transportation method Frequent guest programs memberships

Carnival Re-cruise predictor Spa treatment purchases Casino visitation Picture purchases Bar purchases Total spending

Internal Data Guest Information Trends Booking patterns Recruise within 2 years Start planning 3 -6 months before Jan to Mar compared to Nov - Dec Cancellations Conversion percentage Overbooking patterns Historical seasonality Summertime most popular because of kids and school Seasonal yield patterns

Internal Data How is it collected? Comment cards Pro: quickly identify problem areas Cons: employees are selective, most guests do not fill them out, not indicator of overall satisfaction

Internal Data How is it collected? Talking with guests Carnival: repeat cruisers get invited to a special cocktail party, can converse with crew and management Bottom-up Text: communication and well-trained employees Wyndham room service

Internal Data How is it collected? Automated Collected perhaps Sales Systems across many different systems within company departments, across brands queries by location, last purchase, amenities purchases… Mystery Shoppers Analyze candid environment Positive reinforcement But somehow…. Company records

Internal Data How is it collected? Point of Sale information Mostly a manual-entry system now Example of what`s to come

Mktg Intelligence includes everyday information about developments in the marketing environment that helps managers prepare and adjust marketing plans and short-run tactics Internal Sources Executives, front deskstaff, sales force Marketing Intelligence External Sources Suppliers, travel agencies, tourism and convention bureaus, competitors

Mktg Research Identifies and defines marketing opportunities and problems • • • Measurement of market potentials Market-share analysis Determination of market characteristics Sales analysis Studies of business trends Monitors and evaluates marketing actions and performance • • • Communicates the findings and implications to management Short-range forecasting Competitive product studies Long-range forecasting Marketing information systems studies Testing of existing products

Mktg Research 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

Mktg Research Defining the problem and research objectives Managers are best at understanding what the problem, need, or decision to make is Researchers know best how to get the information But managers must know enough to be able to ask for the right amount of info, and to be able to interpret it

Mktg Research Defining the problem and research objectives Objectives Exploratory research: gather preliminary information that will help define the problem and suggest hypotheses Descriptive research: detail the size and composition of the market Causal research: test hypotheses about cause-andeffect relationships

Mktg Research Developing the research plan for collecting information Determining Specific Information Needs Designing the Sample Gathering Information Presenting the Research Plan

Mktg Research Gathering Information Primary Data: Observational Research Observing relevant people, actions, and situations E. g. sending researchers to competitors Text: check menu, portion size, point of purchase merchandise, layout, service process Ethnographic research Sending trained observers to watch and interact with consumers in their “natural habitat” Text: examining hotel room right after guests leaves Gives more insight into customer preferences that they themselves may not even consciously know about “If I had asked people what they wanted, they would have said faster horses” Cons: cannot clearly observe attitudes or motivation behind behavior

Mktg Research Gathering Information Primary Data: Survey Research The approach best suited to gathering descriptive information Structured surveys use formal lists of questions asked of all respondents in the same way Unstructured surveys let the interviewer probe respondents and guide the interview according to their answers Direct or Indirect Text: Pro: Why don’t you eat at Arby’s? vs What kind of people eat at Arby’s? fleixble Depending on the survey design, it may also provide information more quickly and at lower cost than can be obtained by observational or experimental research

Mktg Research Gathering Information Primary Data: Experimental research The most scientifically valid research is experimental research, designed to capture cause-and-effect relationships by eliminating competing explanations of the observed findings Experimental research is best suited for gathering causal information Able to control or eliminate extraneous variables and determine if observed responses are statistically significant Text: testing two different prices for a new sandwich Choose 2 restaurants and environments that are identical, except the test variable (price)

Contact Methods Mail Questionnaire Telephone Interviewing Personal Interviewing Online Interview

Mail Questionnaire Con Pro They can be used to collect large amounts of information at a low cost per respondent May give more honest answers to personal questions No interviewer is involved to bias respondents’ answers Convenient for respondents Good way to reach people who often travel Not flexible Require simple and clearly worded questions All respondents answer the same questions in a fixed order Cannot adapt the questionnaire based on earlier answers Take longer to complete than telephone or personal surveys Response rate is often very low The researcher has little control over who answers the questionnaire

Telephone Interviewing Pro Provides a method for gathering information quickly Greater flexibility than mail questionnaires Explain questions that are not understood Skip some questions and probe more on others, depending on respondents’ answers Greater sample control Con Cost per respondent is higher than with mail questionnaires Some people may not want to discuss personal questions with an interviewer Using an interviewer increases flexibility but also introduces interviewer bias

Personal Interviewing Individual: Involves talking with people in their homes, offices, on the street, or in shopping malls Focus Group: up to 10 people discussing products, services, companies with a moderator Pro Con They allow the researcher to probe and gain insight into consumer behavior Qualitative research is useful to gain insight into definitions and concepts Cost and sampling

Online Interview 35 percent of all survey-based research, and Internet-based questionnaires also accounted for a third of U. S. spending on market research surveys Pro Inexpensive Fast: direct transmission on tabulation of results (40 hours vs 70 days) Honest: private, anonymous Versatile: can include more than words (picture, video, interaction) Accurate: questions can adapt based on previous answers Con Skewed samples: not everyone has internet, and this gives disproportionate weight to certain income groups, socioeconomic group, ethnic groups… Prone to technological problems and inconsistencies because it is still relatively new

Mktg Research Designing the Sample: segment of the population selected to represent the population as a whole “representative sample” Who will be surveyed? How many people should be surveyed? How should the sample be chosen? When will the survey be given?

Research Instruments Questionnaire Closed-end questions Mechanical Include all possible answers and subject chooses one Open-ended Subjects words questions answer in their own Usually computer-based purchase record How much guest consumes at restaurant How well did this item sell during a promotion Attempting “neuromarketing” to measure brain activity and how guests feel and respond to stimuli

Mktg Research Presenting the Research Plan Putting everything into writing What problem was addressed Objectives What info was collected Collection method Sources How results will help management decisions

Mktg Research 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

Mktg Research Implementing the research plan – collecting and analyzing the data Interpreting and reporting the findings Process the data and extract the most relevant information Draw conclusions and report results to management

What makes the job of an international marketing researcher more difficult than a domestic?