MKTG

Chapter 8 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 1

MKTG

Designed byAmy McGuire, B-books, Ltd.

Prepared byDeborah Baker, Texas Christian

University

Lamb, Hair, McDaniel 2007-2008

Decision Support Systems and Marketing Research

8CHAPTER


Learning Outcomes

Explain the concept and purpose of a marketing decision support system

Define marketing research and explain its importance to marketing decision making

Describe the steps involved in conducting a marketing research project

LO1

LO2

LO3


Learning Outcomes

Discuss the profound impact of the Internet on marketing research

Discuss the growing importance of scanner-based research

Explain the concept of competitive intelligence

LO4

LO5

LO6


Explain the concept

and purpose of a marketing decision

support system

Marketing Decision Marketing Decision Support SystemsSupport Systems

LO1


LO1

Marketing Decision Support Systems

Decision Support Systems

Decision Support Systems

An interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions.


LO1

DSS System Characteristics

InteractiveInteractive

FlexibleFlexible

Discovery-OrientedDiscovery-Oriented

AccessibleAccessible


DSS

§ http://www.fivethirtyeight.com/


LO1


DatabaseMarketingDatabaseMarketing

The creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns.

The key tool for successfulone-to-one marketing.


Biz Flix

LO1 Apollo 13


REVIEW LEARNING OUTCOME

LO1



Define marketing research and

explain its importance to

marketing decision making

The Role of Marketing ResearchThe Role of Marketing ResearchLO2


The Role of Marketing Research

LO2

MarketingResearch

MarketingResearch

The process of planning, collecting, and analyzing data relevant to a marketing decision.


Marketing Research Studies

LO2

ProductsProducts

AdvertisingAdvertising

PricesPrices

PackagesPackages

Names and LogosNames and Logos

ServicesServices

Buying habitsBuying habits

ColorsColors

UsesUses

AwarenessAwareness

FamiliarityFamiliarity

New conceptsNew concepts

Traffic patternsTraffic patterns

WantsWants

NeedsNeeds

PoliticsPolitics


The Role of Marketing Research

LO2

Diagnostic

Predictive

Descriptive

u Gathering and presenting factual statements

u Explaining data

u “What if?”


LO2B

eyond

the

Book

Management Uses of Marketing Researchu Improve the quality of decision

makingu Trace problemsu Focus on keeping existing customersu Understand the marketplaceu Alert them to marketplace

trendsu Gauge the value of goods

and services, and the level of customer satisfaction

NOTE: Supplemental content – not in book.



LO2

Marketing Research and Its Importance

Why marketing research?þ Improve quality of decision making

þ Trace problems

þ Focus on keeping existing customers

þ Understand changes inmarketplace


Describe the steps involved in conducting a marketing

research project

Steps in a Marketing Steps in a Marketing Research ProjectResearch Project

LO3


The Marketing Research Process

LO3

CollectData

CollectData

SpecifySamplingProcedure

SpecifySamplingProcedure

Plan Design/Primary DataPlan Design/Primary Data

DefineProblemDefine

Problem

AnalyzeData

AnalyzeData

Prepare/PresentReport

Prepare/PresentReport

Follow UpFollow Up

1

23

4

5

6

7


Marketing ResearchLO3

Marketing Research Problem

Marketing Research Problem

MarketingResearch Objective

MarketingResearch Objective

Management Decision Problem

Management Decision Problem

Determining what information is needed and how that information

can be obtained efficiently and effectively.

Determining what information is needed and how that information

can be obtained efficiently and effectively.

The specific information needed to solve a marketing research

problem; the objective should provide

insightful decision-making information.

The specific information needed to solve a marketing research

problem; the objective should provide

insightful decision-making information.

A broad-based problem that requires marketing research in order for managers to take proper actions.

A broad-based problem that requires marketing research in order for managers to take proper actions.


Secondary DataLO3

Data previously collected for any purpose other than the one at hand.

Secondary Data

Secondary Data


Sources of Secondary DataLO3

Government AgenciesGovernment Agencies

Trade and Industry AssociationsTrade and Industry Associations

Business PeriodicalsBusiness Periodicals

News MediaNews Media

Internal Corporate InformationInternal Corporate Information

Online

http://www.coca-colastore.com


Advantages of Secondary DataLO3

u Saves time and money if on target

u Aids in determining direction for primary data collection

u Pinpoints the kinds of people to approach

u Serves as a basis of comparison for other data


Disadvantages of Secondary DataLO3

u May not give adequate detailed information

u May not be on target with the research problem

u Quality and accuracy of data may pose a problem


The New Age of Secondary Information: The Internet

LO3

11

22

33

44

55

Analyze your topicAnalyze your topic

Test run a word or phrase in a search engineTest run a word or phrase in a search engine

Learn as you go and vary your approachLearn as you go and vary your approach

Don’t bog down in strategy that doesn’t workDon’t bog down in strategy that doesn’t work

Go back to earlier steps better informedGo back to earlier steps better informed


Planning the Research DesignLO3

Which research questions

must be answered?

How and whenwill data be gathered?

How willthe data

be analyzed?

?


Primary DataLO3

Primary Data

Primary Data

Information collected for the first time. Can be used for solving the particular problem under investigation.


Advantages of Primary DataLO3

u Answers a specific research question

u Data are current

u Source of data is known

u Secrecy can be maintained


Disadvantages of Primary DataLO3

u Expensiveu “Piggybacking”

may confuse respondents

u Quality declines if interviews are lengthy

u Reluctance to participate in lengthy interviews

Disadvantages are usually offset by the advantages of primary data.


Survey ResearchLO3

The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes.

Survey ResearchSurvey Research


Forms of Survey ResearchLO3

Focus GroupsFocus Groups

Executive InterviewsExecutive Interviews

Mail SurveysMail Surveys

Telephone InterviewsTelephone Interviews

Mall Intercept InterviewsMall Intercept Interviews

In-Home InterviewsIn-Home Interviews



Mall InterceptInterview

Mall InterceptInterview

Survey research method that involves interviewing people in the common areas of shopping malls.

Survey research method that involves interviewing people in the common areas of shopping malls.

Executive InterviewExecutive Interview

A type of survey that involves interviewing businesspeople at their offices concerning industrial products or services.

A type of survey that involves interviewing businesspeople at their offices concerning industrial products or services.



Seven to ten people who participate in a group discussion led by a moderator.

Focus GroupsFocus Groups


Questionnaire DesignLO3

Open-EndedQuestion

Open-EndedQuestion

Closed-EndedQuestion

Closed-EndedQuestion

Scaled-Response Question

Scaled-Response Question

An interview question that encourages an answer phrased

in respondent’s own words.

An interview question that encourages an answer phrased

in respondent’s own words.

An interview question that asks the respondent to make a

selection from a limited list of responses.

An interview question that asks the respondent to make a

selection from a limited list of responses.

A closed-ended question designed to measure the

intensity of a respondent’s answer.

A closed-ended question designed to measure the

intensity of a respondent’s answer.


Questionnaire DesignLO3

Clear and conciseClear and concise

No ambiguous languageNo ambiguous language

UnbiasedUnbiased

Reasonable terminologyReasonable terminology

Only one questionOnly one question

Online

http://www.createsurvey.com


Observation ResearchLO3

A research method that relies on three types of observation:

Ø people watching peopleØ people watching an activityØ machines watching people

Observation Research

Observation Research


Observational SituationsLO3

SituationPeople

watching people

People watching

phenomena

Machines watching people

Machines watching

phenomena

Example

Mystery shoppers in

a supermarke

t

Observer at an

intersection counting

traffic

Video cameras recording behavior

Traffic-counting machine

monitoring traffic flow

Online

http://www.bmiltd.com


Ethnographic ResearchLO3

The study of human behaviorin its natural context; involves observation of behavior and physical setting.

Ethnographic Research

Ethnographic Research


The Sampling ProcedureLO3

SampleSample

UniverseUniverse

A subset from a large population.

A subset from a large population.

The population from which a sample will be drawn.

The population from which a sample will be drawn.


Sampling ProcedureLO3

UniverseUniverse SampleSample

Probability Samples

Probability Samples

Non-Probability

Samples

Non-Probability

Samples


Types of SamplesLO3

Probability Samples

Probability Samples

Simple Random Sample

Simple Random Sample

Stratified Sample

Stratified Sample

Cluster Sample

Cluster Sample

SystematicSample

SystematicSample

Non-Probability Samples

Non-Probability Samples

Convenience Sample

Convenience Sample

JudgmentSample

JudgmentSample

Quota SampleQuota Sample

SnowballSample

SnowballSample


Probability SamplesLO3

ProbabilitySample

ProbabilitySample

A sample in which every element in

the population has a known statistical likelihood of being

selected.

A sample in which every element in

the population has a known statistical likelihood of being

selected.

Random Sample

Random Sample

A sample arranged so that every element of the

population has an equal chance of being selected.

A sample arranged so that every element of the

population has an equal chance of being selected.


Nonprobability SamplesLO3

NonprobabilitySample

NonprobabilitySample

Convenience Sample

Convenience Sample

Any sample in which little or no attempt is made to get a

representative cross-section of the population.

Any sample in which little or no attempt is made to get a

representative cross-section of the population.

A form of nonprobability sample

using respondents who are convenient or readily

accessible to the researcher.

A form of nonprobability sample

using respondents who are convenient or readily

accessible to the researcher.


Types of ErrorsLO3

Measurement Error

Measurement Error

Error when there is a difference between the information desired and the information provided by

research

Error when there is a difference between the information desired and the information provided by

research

Sampling Error

Sampling Error

Error when a sample somehow does not represent the target

population.

Error when a sample somehow does not represent the target

population.

Frame Error

Frame Error

Error when a sample drawn from a population differs from the

target population.

Error when a sample drawn from a population differs from the

target population.

Random Error

Random Error

Error because the selected sample is

an imperfect representation of the overall population.

Error because the selected sample is

an imperfect representation of the overall population.


Errors

http://www.huffingtonpost.com/


Field Service FirmsLO3

u Focus group facilities

u Mall intercept locations

u Test product storage

u Kitchen facilitiesu Retail audits

Provide:Provide:


Analyzing the DataLO3

A method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions.

Cross-Tabulation

Cross-Tabulation


Preparing and Presenting the Report

LO3

u Concise statement of the research objectives

u Explanation of research design

u Summary of major findings

u Conclusion with recommendations


Following UpLO3

u Were the recommendations followed?

u Was sufficient decision-making information included in the report?

u What could have been done to make the report more useful to management?



LO3

Steps in a Marketing Research Project


Discuss the profound impact of

the Internet on marketing research

Impact of the Internet onImpact of the Internet onMarketing ResearchMarketing Research

LO4


LO4

Impact of the Internet

u Allows better and faster decision making

u Improves ability to respond quickly to customer needs and market shifts

u Makes follow-up studies and tracking research easier

u Slashes labor- and time-intensive research activities and costs


LO4

Advantages of Internet Surveys

Contact with the hard-to-reach

Contact with the hard-to-reach

Improved respondent participation

Improved respondent participation

Personalized questions and data

Personalized questions and data

Reduced costsReduced costs

Rapid development,Real-time reporting

Rapid development,Real-time reporting


LO4

Uses of the Internet by Marketing Researchers

Other types of marketing research Other types of marketing research

Conduct focus groupsConduct focus groups

Administer surveysAdminister surveys

Online

http://www.greenfieldonline.com


LO4

Internet Samples

UnrestrictedInternet Sample

UnrestrictedInternet Sample

ScreenedInternet Sample

ScreenedInternet Sample

RecruitedInternet Sample

RecruitedInternet Sample

A survey in which anyone with

a computer and modem can fill out the questionnaire.

A survey in which anyone with

a computer and modem can fill out the questionnaire.

An Internet sample with quotas based on desired sample characteristics.

An Internet sample with quotas based on desired sample characteristics.

A sample in which respondents

are prerecruited and must qualify to participate.

A sample in which respondents

are prerecruited and must qualify to participate.


LO4

Process for Online Focus Groups

1. Build a database of respondents via Web site screening questionnaire

2. Identify qualified individuals via e-mail

3. Develop a discussion guide

4. Moderator runs group by typing in questions online for all to see

5. Environment is similar to a chat room

6. Firm captures the complete text of the focus group


LO4

Types of Online Focus Groups

Real-time online focus groupsReal-time online focus groups

Time-extended online focus groups

Time-extended online focus groups


LO4

Advantages of Online Focus Groups

u Speedu Cost-effectivenessu Broad geographic

scopeu Accessibilityu Honesty


LO4

Role of Blogs in Marketing Research

u Refined technologies allow companies to mine data available in Internet blogs.

u Companies can identify the most influential bloggers and learn exactly what they are saying (and how they are saying it).


LO4

Other Uses of the Internet byMarketing Researchers

Viewing of presentations ofmarketing research surveysViewing of presentations ofmarketing research surveys

Publication and distributionof reportsPublication and distributionof reports

Data management and online analysisData management and online analysis

Collaboration between client and research supplierCollaboration between client and research supplier

Distribution of requests for proposals (RFPs) and proposalsDistribution of requests for proposals (RFPs) and proposals



LO4

Impact of the Internet on Marketing Research


Discuss the growing

importance of scanner-based

research

Scanner-Based ResearchScanner-Based ResearchLO5


LO5

Scanner-Based Research

Scanner-basedResearch

Scanner-basedResearch

A system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy.

BehaviorScanInfoScan


LO5

When Should Marketing Research Be Conducted?

u Where there is a high level of uncertainty

u When value of research information exceeds the cost of generating the information



LO5

Scanner-Based Research

BehaviorScan InfoScan

Panel information fromSpecific groups of people,enables researchers to manipulate variables and seereal results

Aggregate consumerinformation on allbar-coded products


Explain the concept of competitive

intelligence

Competitive IntelligenceCompetitive IntelligenceLO6


Competitive IntelligenceLO6

Online

http://www.scip.org

An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors.

Competitive Intelligence



Sources of Competitive Intelligence

LO6

InternetInternet

Company SalespeopleCompany Salespeople

ExpertsExperts

CI ConsultantsCI Consultants

Government AgenciesGovernment Agencies

UCC FilingsUCC Filings

SuppliersSuppliers

PeriodicalsPeriodicals

Yellow PagesYellow Pages

Trade ShowsTrade Shows



LO6


CI

Part of a soundmarketing strategy

Helps companiesrespond to competitivethreats

Helps reduceunnecessary costs

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