CIM Coursebook 05/06 Marketing Planning

The syllabus covers the stages of a research programme and the procedures and briefing of external agencies. The ability to communicate a research problem and inspire the agency to produce a thoughtful, well-structured research plan is crucial to the process of marketing decision-making. It also outlines the ethical and social responsibilities of the researcher as laid down within the codes of conduct and legislation. More and more data is being captured on customers and research shows that there is a high degree of distrust in the use of data. The recent problem for the industry over the use of the electoral register testifies to this.

Failure to comply with these codes of conduct and selfregulation has serious implications for the future of data-driven marketing. Failure to comply with legislation is of course even more serious! They cover the range of methods and techniques that underpin good research design. The design of marketing research methodologies is a complex task and it draws on techniques that have been tested in other subject areas; in psychology and the social sciences and particularly in statistics.

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Many students are worried about the numeracy skills required to complete this course. You do need to be numerate — after all, figures are the raw material of the business world. However, the key thing in marketing research is to know the right questions to ask and to understand what the statistics do to data. Statistics enable decisions to be made that reduce the risk to the business and are an invaluable tool in the process of effective marketing. The syllabus also looks at the role of secondary or desk research in research both on- and off-line.

Secondary data is data that has been published elsewhere. Current techniques draw heavily on the Internet and this has changed this aspect of research beyond recognition. We still need to be able to distinguish good from poor data and the workbook gives a range of techniques that you can use to determine this. The syllabus distinguishes between and defines both qualitative and quantitative research and the range of techniques that are used to gather this information. Finally, the syllabus explores the fascinating area of questionnaire and topic guide design and delivery, and the statistical techniques that support research design and analysis.

Presenting and evaluating information to develop business advantage Syllabus elements 5. The syllabus covers the statistical basis of the analysis of quantitative research data. It also covers the range of techniques that are used in the analysis of qualitative data. Finally, the syllabus covers the production of written research reports and oral presentations of the results. Understanding aims and objectives of marketing research and information, and achieving your learning outcomes Having reviewed the CIM syllabus for this module, you can see that the syllabus is broken down into six levels.

Aims and objectives Related Professional Marketing Standards statements of marketing practice Knowledge and skills requirements Related skills for marketers Assessment Support materials. As a student on CIM courses, you are, of course, learning to be a marketing professional and also to study more effectively.

As the marketer has a range of tools at his disposal to deliver effective marketing, the learner has a range of tools to help him study more effectively. Understanding the syllabus and the terms that marketing educators use will help you use this manual more effectively, and help your progress towards success on CIM courses. Aims and objectives The aims and objectives are the broad objectives for the module as a whole. They explain clearly what the module is designed to achieve and, most important, give you a clear idea of the broad areas of study and what you will be learning. Related professional marketing standards statements of marketing practice o o o These standards link the syllabus to the tasks of the marketing professional.

They link with other statements that are included in the design of other modules within stages two and three of the syllabus. The standards have been developed by the CIM in consultation with senior marketers. The standards cover six marketing roles, business competencies within those roles and the expected level of engagement with those roles at four levels: The Professional Diploma sets its standard at manager level, the standards for this level are laid out below and you can see that some are more relevant to the Marketing Research and Information course than others for example: The evaluation of information requirements, the management of research projects and the marketing information system.

The evaluation and presentation of information for business advantage. The ability to contribute information and ideas to the strategy process. However these standards must be set in the context of the range of skills the marketing manager is expected to possess and some of these are delivered more obviously by the other courses will be taken by you.

They are interesting for you as the assessment is designed against the outcomes. If you understand the learning outcomes of the module then you have a clear idea of what the examiners will be looking for in your assessment. They are also linked to the knowledge and skills requirements, which describe the main content of the course. Some learning outcomes are delivered through the same knowledge and skills requirements Table 1.

Critically evaluate the outcomes and quality of a research project Plan and design an oral presentation of market research reports Source: CIM module two syllabus 9 Unit 1 Introduction Key skills for marketers Key skills relate to the broader areas of learning and knowledge required by professional marketing managers, they are defined in the syllabus document as: As such they will be treated as systemic to all marketing activities, rather than subjects treated independently in their turn.

The key skills for marketers have been identified from research carried out in organisations where marketers are working. They are closely related to key skills and graduate skills defined as part of the national framework by the UK government. They are relevant to marketers in all organizations since they encompass the knowledge and skills concerned with identifying, solving and delivering solutions to problems in organisations.

For marketers these key skills cover the following areas: Using ICT and the internet Planning and using different sources to search for and select information; explore, develop and exchange information and derive new information; and present information including text, numbers and images. Using financial information and metrics Planning and interpreting information from different sources; carrying out calculations; and presenting and justifying findings.

Presenting information Contributing to discussions; making a presentation; reading and synthesizing information and writing different types of document. Improving own learning and performance Agreeing targets and planning how these will be met; using plans to meet targets; and reviewing progress. Working with others Planning work and agreeing objectives, responsibilities and working arrangements; seeking to establish and maintain cooperative working relationships; and reviewing work and agreeing ways of future collaborative work.

Problem solving Exploring problems, comparing different ways of solving them and selecting options; planning and implementing options; and applying agreed methods for checking problems have been solved. Applying business law Identifying, applying and checking compliance with relevant law when undertaking marketing activities. Not all of these will apply directly to the Marketing research and Information module but by the end of your studies on the CIM your learning will have covered them.

The first is the traditional written exam and the second is a work-based project. Whatever you choose, the content of the assessment will reflect the content of the learning outcomes, and knowledge and skills requirement. It is really important that when you revise for the exams that you cover the entire syllabus.

Questions may relate to detailed elements of the curriculum but the entire syllabus will be used to inform the examination. It is important that you also include a range of well-worked examples that allow you to illustrate your answers and bring them to life. Remember the CIM course is giving you a licence to practise marketing, and the use of examples in the right context shows that you understand how the theory can be applied in a business context.

The exam will be practical in nature. Questions will ask you to solve a problem or prepare a briefing document, write a plan or evaluate between different techniques. It will ask you to use the theory to deliver solutions to particular situations and show that you understand how to apply the theory in a variety of business contexts. Preparation for the exam is really important and the CIM will support you in this task. You should practise writing against the clock. It is really hard work to write freehand for any length of time, particularly as most of us now rarely write freehand. Recommended resource materials These are listed in the syllabus and in the curriculum information section of this text.

They will form the background reading for the course as a whole. This workbook reflects the resources that are recommended, and adds to them with other books, websites, examples and case studies. The secret is to read widely and keep careful notes. This is a valuable practice throughout your career.

Your reading of the trade press is vital to keep up to speed with current practice. It should go without saying that you also keep up to date with the general business press including the Financial Times, The Economist and the Wall Street Journal. It is important that you keep a file of a range of material that relates to marketing research, database marketing and CRM, at home and in international markets.

You may choose to access these resources online at www. There are a range of websites that report on the marketing research and information sector and these are listed in the curriculum information section. We looked in detail at the CIM curriculum and saw the importance of understanding the contents of the curriculum and its objectives and assessment policies.

We looked at each section of the book in detail and introduced the broad concepts that will be explored in more detail in the rest of the coursebook. Further study Go to the CIM website at www. Hints and tips Take a look at the following sites www. They are packed with useful material. See the table below. Knowledge — A fluid mix of framed experience, values, contextual information and expert insight that provides a framework for evaluating and incorporating new experience and information.

CIM Coursebook 05/06 Marketing Planning - E-bok - Karen Beamish () | Bokus

It originates and is applied in the minds of knowers. In organizations, it often becomes embedded not only in documents or repositories, but also in organizational routines, processes, practices and norms Davenport and Prusak, Knowledge management — Embodies organizational processes that seek synergistic combination of data and information processing capacity of information technologies, and the creative and innovative capacity of human beings Malhotra, Marketing research — The collection, analysis and communication of information undertaken to assist decision-making in marketing Wilson, Data mining — The process of extracting hidden and actionable information from large databases.

Data warehouse — A database whose records contain information aggregated from multiple locations on a customer basis. Data capture — The process and system for gathering and recording data on customers. Study Guide This unit should take you around 3 hours to complete. Bacon was referring to power in a political context and was writing at a time when knowledge was an exclusive product.

We all know, however, the value of good information in our day-to-day lives. Today the problem is not accessing information but analysing this to produce intelligence upon which we can act. Without pertinent, reliable, accurate and timely information, decision-making would be impossible.

Management decisions would be made in a vacuum. Without information and intelligent analysis of the data, the organization is disconnected from its markets, suppliers, people, customers and future. One more time, what is marketing? The starting point for this coursebook has to be the definition of marketing. Can you remember it? You may be able to remember other definitions. What are the differences? What are the similarities? You may need to visit your notes for the planning module. Marketing is a management process. We will not dwell too long on this. It is enough to say that marketing is about getting things done through and with people.

We need to work with a range of colleagues, suppliers and intermediaries to deliver satisfaction to our customers. They are the only reason businesses exist. It is easy to say marketing is about customers but even this simple word has multiple meaning in the marketing context. Are we talking about current customers, lapsed customers, future customers, profitable customers, best customers or key account customers? The list is as long as the number of segmentation variables we can use. Of equal interest to us are the next few words.

Marketing is about identifying customer needs. Let us think about this in more detail. What need am I fulfilling? Write down as many as you can think of. It may help you to think about the context in which a person may buy water. Think hard, you should have at least 6 points. The next part of the definition is concerned with the anticipation of customer needs. This task is even harder. Forecasting has been described as trying to tell someone where to steer a car by looking through the rear window. Think about the pace of development of new technology. Gordon Moore of Intel Corporation, the computer chip manufacturer, has said that the processing power of computers will double every 18 months and the price will halve.

He was right and wrong. The pace of change has been faster. Those companies that are at the forefront of the IT revolution have found it very hard to anticipate customer needs as the customers themselves have found it hard to understand the pace of change and how this might affect their buying patterns. The IT revolution and the airlines In the mids, airlines were respecifying their fleets.

The lead-time for commissioning and delivery of new planes is significant. Airlines asked their business customers what changes they would like to see. Some said more legroom, some said better food and more choice of films. Some said that they would like to telephone from the plane. Only a few mentioned at-seat power jacks for their laptops. It is not always enough simply to ask your customers what they want.

The questions have to be asked in the right way. We will look at this in detail later on. The information strategy of the organization must be set up to ensure that these changes can be anticipated, monitored and acted upon. Risk can never be eliminated from business decision-making. The next part of the definition is concerned with customer satisfaction. This has been an area of growth in marketing over the last 10 years as concepts of relationship marketing and Customer Relationship Management CRM have become popularized and applied in businesses.

The measurement of lifetime value and work on loyalty notably by Frederick Reichheld in his book The Loyalty Effect has shifted the emphasis from one of sales and new business to customer retention and repeat business. A corollary of this has been a focus on customer satisfaction. The idea is that satisfied customers stay loyal, and loyal customers are more profitable. Well again research shows that this is not always the case.

Customers may be satisfied but still leave. They may be enticed away by better offers or products or may no longer have a need for our products or services. They may seek variety or new experiences. So establishing levels of satisfaction is not enough. The organization must ensure that the underlying attitudes and behaviours are revealed. If customers do defect, then the organization needs to ensure that the reasons for leaving are established and changes are made if appropriate.

Finally, the definition talks about profit. The reason we are in business. Simple — well not really. The development of the marketing database that captures data on the buying behaviour of customers means that we can begin to see that some customers are more profitable than others. We can see that the Pareto Effect which states that 20 per cent of customers account for around 80 per cent of profit is generally true. Indeed in many businesses less than 20 per cent of customers account for more than 80 per cent of profits. So if under Henry Ford all customers were created equal, we now can prove that some customers are more equal than others.

The winner was Elsie Mader. She had been cruising with P and O so many times that her total time aboard came to more than 10 years. Companies are using this information to work out which customers they need to retain, and by profiling existing highly profitable customers they can more easily identify the type of customer they wish to recruit.

For P and O this would be more Elsie Maders! Another aspect of profit is deciding when to take profit. Companies using direct response techniques know that many customers are acquired at a loss. The relationship with customers only makes sense from a business perspective over time. This is why as soon as you buy insurance products you will receive mailings for extended cover, other insurance products or other financial services products. So the definition of marketing is not as straightforward as perhaps it first appeared. At the centre of all the elements of the definition is the need for information and research, analysis and insight that allow for a depth of understanding and marketing decisions made at reduced risk.

This applies to all organizations whether they be in business-to-consumer b2c markets, in business-to-business b2b markets, in fund-raising or in government or not-for-profit markets. At the heart of all successful enterprises is managed information. Integrated information is critical to effective decision-making. Marketing information sources can be thought of as separate jigsaw pieces; only when they are connected does the whole picture become clear.

Taking decisions by looking at each of the pieces individually is not only inefficient but is likely to result in wrong assumptions and decisions being made Wilson, The role of knowledge management within organizations has become central to the delivery of the above definition of marketing orientation.

Tom Peters and Robert Waterman in their influential book In Search Of Excellence attempted to identify the characteristics of successful companies. Published in , at the beginning of the information revolution, the book identified customer focus and knowledge acquired largely through the use of marketing research as central to the success of the companies they researched. Since many of the companies they researched have gone out of business or no longer exist in the same structure!

However the point that they made is still valid. Given this context market research is bound to fail. It is the market researchers who connect with customers but then have to turn their learning into meeting fodder. What we see here is that advantage in the market place does not simply come from carrying out research, it is about identifying, collating, understanding, analysing and acting upon the many diverse sources of knowledge within an organization. Wal-Mart is one organization that manages this very well. Residents made for higher ground, but far away, in Bentonville, Ark. The experts mined the data and found that the stores would indeed need certain products — and not just the usual flashlights.

Dillman said in a recent interview. Most of the products that were stocked for the storm sold quickly, the company said. Such knowledge, Wal-Mart has learned, is not only power. It is profit, too. Plenty of retailers collect data about their stores and their shoppers, and many use the information to try to improve sales. Target Stores, for example, introduced a branded Visa card in and has used it, along with an arsenal of gadgetry, to gather data ever since. The data are gathered item by item at the checkout aisle, then recorded, mapped and updated by store, by state, by region.

To put that in perspective, the Internet has less than half as much data, according to experts. Information about products, and often about customers, is most often obtained at checkout scanners. Wireless hand-held units, operated by clerks and managers, gather more inventory data. In most cases, such detail is stored for indefinite lengths of time. All of the data are precious to Wal-Mart. The information forms the basis of the sales meetings the company holds every Saturday, and it is shot across desktops throughout its headquarters and into the places where it does business around the world.

Wal-Mart shares some information with its suppliers — a company like Kraft, for example, can tap into a private extranet, called Retail Link, to see how well its products are selling. New York Times, November Many organizations, however, are still not geared up to manage this process effectively.

What is required is a significant cultural and internal organizational change. However, many companies find this change very difficult to manage. Baker and Mouncey, What these organizations find is that they are unable to gear up the knowledge capital that has been established within their business. Customer information may exist in silos that are not connected, leading to vital gaps in understanding and failure to provide basic service standards.

As we will see later, when customers give us information they expect us to use it responsibly and to improve levels of service to them Figure 2. Teradata A single view of the truth provides greater knowledge and insight Figure 2. Teradata 20 Unit 2 Information in the knowledge economy These organizations may find that knowledge rests with individuals or departments within the company and that these political assets are fiercely protected. For example sales people or key account managers may see the introduction of a marketing database as a serious threat to their position rather than a means by which their efficiency and effectiveness and their commissions may be improved.

These multiple systems, for example, separate sales, accounts and fulfilment databases operating under different protocols and on different platforms cost money to run and maintain and lead to duplication and wastefulness, disillusioned staff and very often, the research tells us, unhappy and poorly served customers. Equally the lack of systems for capturing and storing information means that when key personnel leave an organization they take their knowledge assets with them.

The aim of knowledge management is to integrate systems and individuals to enable and encourage knowledge transfer between employees and other stakeholders. In the US, Wal-Mart is an excellent example of a company that gears up its knowledge assets to produce value for itself, its stakeholders and its customers. Knowledge is often defined as distinct from information. Whilst much of this is semantics the key distinguishing factor is that knowledge is not data.

Data are facts; knowledge involves interpreting, analysing and understanding facts to produce actionable intelligence. Knowledge within organizations can take many forms; these are usefully identified by Yahya and Goh Organizational knowledge — Is knowledge gained through the interactions between technologies, techniques and people. Marketing research data is a good example of this type of knowledge.

Tacit knowledge — Is hard to codify and document. It lies in human behaviour and perception and is personal, cognitive and context sensitive. It may be important in interpersonal relationships within a business and may be important in creating and sustaining the culture of knowledge transfer within the system. The aim of Knowledge Management is to: Outline the sources of knowledge that might feed a knowledge management system. It has been replaced by a whole tranche of new descriptors, the most common amongst these being CRM systems and Database marketing. What we are looking at in this section is the range of tools that exists to help the marketing manager handle the vast amount of information that he or she has access to today.

The MkIS is the system that organizations use to put information at the heart of the decisionmaking process. The typical MkIS consists of four elements: The marketing research system — This is the backbone of the marketing information system. However, the MkIS also contains other elements. The marketing intelligence system — This refers to the published data existing in the market place. It may include published research reports, government statistics or the national or trade press. We will look at this in detail when we examine secondary research. The decision-support system — The decision-support system contains the tools needed to make sense of data; it may include statistical packages and the Intranet with a range of tools and information designed to help marketers make decisions.

Internal records — These include sales records, accounts records, details on past communications and the results of previously commissioned marketing research. These last elements are often now consolidated within the marketing database. Let us look at the two mainstays of the MkIS in turn, starting with marketing research. Let us start with a few definitions. This picks-up on the essential characteristics of marketing research, that is, the gathering and analysis of information to inform decisions.

This decisionmaking aspect is important. Marketing research should enable decision-making. Some authors would argue that a decision MUST result from the marketing research process, and in practice this is most often the case, even if the decision is to do nothing! Go to page 4 and write them down in your notes.

These will underpin your study of the discipline. There are a number of other definitions and we need to look at these. The MRS is 22 Unit 2 Information in the knowledge economy the professional body overseeing professional standards in the Marketing Research industry in the UK more about them later. As you can see and as you might expect, it is much more technical. It covers techniques and sector applications. You will by the time you finish the coursebook!

They changed this to the definition below. Why do you think they did? Marketing research is also about identifying opportunities for growth in business. They changed this to the following definition; notice they included opportunities this time. How about the CIM? They too have their own definitions. This is taken from the website www.

You may have noticed by now that the definitions refer to marketing and market research almost interchangeably. The distinction is not important. Market research has come to be seen as a subset of marketing research. Market research refers to research on markets whereas marketing research covers the broad scope of marketing activity. The database The other elements of the MkIS are often incorporated within the marketing database. There are a few things about this definition that need to be explained. It can be kept on hard copy.

However, access to database technology is very easy and cheap. Even the cheapest and simplest software is capable of storing a significant number of records. Microsoft Access is perfectly serviceable for many businesses. De Tienne and Thompson use the following definition of database marketing: Wilson says that the database differs from an accounting system in that the data must be relevant to marketing decision-making. This is a subtle but important difference. Clearly the accounting system may reveal very interesting information to the marketer.

It may contain details of what the customer has bought and when, and the frequency of purchase. We will see later that this information is important to successful database marketing. However, it is important that the data fed into the marketing database is relevant to marketing decisions now and in the future. It costs money to store and process data and in this information age it is easy to have too much data. Wilson suggests that marketers develop customer databases for four reasons: The motivation for setting up databases is quite broad. Let us look in detail at the uses of marketing information.

Information and the scope of marketing research So what is marketing information used for? The clue is in the definitions in the section above. But let us try and be more specific.

CIM Coursebook 05 06 Marketing Research and Information (CIM Coursebook) (CIM Coursebook)

How does marketing information help this process? Write as many things as you can. Use your textbooks when you run out of ideas. The business has internationalized, and the major organizations that supply research and database services to the market are amongst the largest organizations in marketing services. The industry has embraced new technology and whilst it is still possible to carry out research without the use of a computer, much of the drudgery has been taken out of the process.

The emergence of the Internet as a major channel and communications medium has meant that online research and research about online marketing is perhaps the fastest growing area. Research and database information can be produced internally or externally and the management task can be carried out in-house or externally. Alan Wilson identifies the types of organizations that exist to provide information and research services to the companies. List brokers — These are suppliers of lists of contacts for marketing purposes.

They may include names and addresses, telephone numbers and e-mail addresses. You can see these at www. BMRB Specialist service agencies — These are those that specialize in certain types of research, for example international research or online research. Field agencies — Specialize in the delivery of fieldwork and the administration of questionnaires.

Data analysis companies — As the name suggests these specialize in the analysis of data. Consultants — These are independent consultants who may offer a range of services. Other suppliers into the industry include database bureaux who may host an external database for a company Table 2.

Taylor Nelson Sofres Plc. Martz Research Video Research Ltd. Power and Associates Harris Interactive Inc. The total revenue that includes non-research activities for some companies are significantly higher. The rate of growth from to has been adjusted so as not to include revenue gains or losses from acquisitions or divestitures. The rate of growth is based on home country currency and includes currency exchange effects. I Total growth of the Top 25 was VNU now controls 26 per cent of Top 25 revenues, and is expected to control more in the future as it sheds its directory business, providing funds for future research company acquisitions.

These three account for 34 per cent of Top 25 revenues, and together the top four firms now control 60 per cent of the Top 25 marketplace and 34 per cent of total world spend. Just ten of Top 25 firms had revenue declines in or did not grow enough to cover estimated world inflation rate of 2. Last year it was thirteen. Only one firm — Nikkei Research — is new to the Top 25 vs. Top 25 firms employed 85, full-time in market research operations worldwide in , an increase of 2 per cent over last year but down 4 per cent from the year before.

Among the Top 25 in , 12 are US owned, and these account for 30 per cent of Top 25 revenues, up from 25 per cent last year when NFO was owned buy the media conglomerate Interpublic. Four are British, accounting for nearly 29 per cent of total revenues. France, home to Ipsos, accounting for 5. Germany, home of GfK, accounted for 5. Four of Top 25 are based in Japan, accounting for 3. AGB, based in Italy, accounted for under 1 per cent.

Founded in , ESOMAR unites members in countries, both clients and providers of opinion and marketing research. Essential Tools for Operations Management.

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