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2012-2013
Chapter 1
Copyright ©2012 by Cengage Learning Inc. All rights reserved
1
© iStockphoto.com/Zonecreative
Decision Support Systems and
Marketing Research
Learning Outcomes
1
Explain the concept and purpose of a
marketing decision support system
2
Define marketing research and explain its
importance to marketing decision making
Describe the steps involved in conducting a
marketing research project
3
2
Learning Outcomes
4
Discuss the profound impact of the Internet on
marketing research
5
Discuss the growing importance of scannerbased research
6
Explain when marketing research should be
conducted
7
Explain the concept of competitive intelligence
3
Marketing Decision Support Systems
Explain the concept
and purpose of a
marketing decision
support system
1
4
Marketing Decision
Support Systems
Interactive, flexible computerized information
systems that enable managers to obtain and
manipulate information as they make decisions
Characteristics of a true DSS:
5

Interactive

Flexible

Discovery Oriented

Accessible
1
Marketing Decision
Support Systems
Database
Marketing
6
The creation of a large
computerized file of customers’
and potential customers’ profiles
and purchase patterns.
1
The Role of
Marketing Research
Define marketing
research and explain its
importance to marketing
decision making
2
7
The Role of
Marketing Research
Marketing
Research
The process of
planning, collecting, and
analyzing data relevant
to a marketing decision.
8
2
Three Roles of
Marketing Research
9
1-Descriptive
Gathering and presenting
factual statements
2-Diagnostic
Explaining data
3-Predictive
Address “what if” questions
2
Market Research vs. Marketing Research
 Market Research:
Global information
 Marketing Research:
In depth information on your
customers and your products
 Products
 Goods
 Services
 Ideas
http://marketing-planet.com/surveys/market-research-versus-marketing-research.html
10
Steps in a Marketing
Research Project
Describe the
steps involved
in conducting
a marketing
research project
3
11
Exhibit 9.1
1
The Marketing Research
Process
Define
Problem
2
Plan Design/
Primary Data
3
5
6 Prepare/
Specify
Sampling
Procedure
4
Collect
Data
Analyze
Data
Present
Report
7
Follow Up
12
© Cengage Learning Inc. 2013. All Rights Reserved.
The Marketing Research Project
Marketing
Research
Problem
Determining what information is needed and
how that information can be obtained
efficiently and effectively.
Marketing
Research
Objective
The specific information needed to solve a
marketing research problem; the objective
should be to provide insightful decisionmaking information.
Management
Decision
Problem
13
A broad-based problem that uses marketing
research in order for managers to take proper
actions.
3
Sources of
Secondary Data
Internal Corporate Information
Government Agencies
Trade and Industry Associations
Business Periodicals
News Media-Internet
14
3
Advantages of
Secondary Data
 Saves time and money if on target
 Aids in determining direction for primary
data collection
 Pinpoints the kinds of people to approach
 Serves as a comparison for other data
 Internet has aided in data collection
15
3
Disadvantages of
Secondary Data
 May not give adequate detailed information
 May not be on target with the research
problem
 Quality/accuracy of data may be a problem
16
3
Marketing Research Aggregators
Databases: bigger, more comprehensive,
easier to search
Aggregators: acquire, catalog, reformat,
segment, organize and resell reports
published by marketing research firms
Some major aggregators are:
mindbranch.com
usadata.com
Salesman’s guide
17
3
Planning the
Research Design
Which research
questions
must be answered?
?
How and when
will data be
gathered?
How will
the data
be analyzed?
18
3
Primary Data

Information collected for the first time

Used for solving the particular problem under
investigation.
Advantages:
 Answers a specific research question
 Data are current
 Source of data is known
 Secrecy can be maintained
Disadvantages:
 Primary data can be very expensive
19
3
Survey Research
Survey Research
The most popular technique for
gathering primary data, in
which a researcher interacts
with people to obtain facts,
opinions, and attitudes.
20
3
Forms of
Survey Research
21
In-Home Interviews
Mail Surveys
Mall Intercept Interviews
Executive Interviews
Telephone Interviews
Focus Groups
3
Questionnaire Design
22
Open-Ended
Question
An interview question that encourages
an answer phrased in the respondent’s
own words.
Closed-Ended
Question
An interview question that asks
the respondent to make a selection
from a limited list of responses.
ScaledResponse
Question
A closed-ended question
designed to measure the intensity
of a respondent’s answer.
3
Questionnaire Design
Clear and concise
No ambiguous language
Avoid leading questions
Avoid two questions in one
23
3
Observation Research
Observation
Research
A research method that relies on
four types of observation:
 people watching people
 people watching an activity
 machines watching people
 machines watching an activity
24
3
Observational Research
25
Mystery
Shoppers
Researchers posing as customers who gather
observational data about a store.
Behavioral
Targeting (BT)
A form of observation marketing research that
uses data mining coupled with identifying Web
surfers by the IP addresses.
3
Sampling Procedure
Universe
Sample
Probability
Samples
Non-Probability
Samples
26
3
Types of Samples (Exhibit 9.4)
27
Probability
Samples
Non-Probability
Samples
Simple Random
Sample
Convenience
Sample
Stratified
Sample
Judgment
Sample
Cluster
Sample
Quota
Sample
Systematic
Sample
Snowball
Sample
3
Probability Sample
28
Probability
Sample
A sample in which every element in
the population has a known
statistical likelihood of being
selected.
Random
Sample
A type of probability sample: every
element of the population has an
equal chance of being selected.
3
Non-probability Samples
29
Nonprobability
Sample
Any sample in which little or
no attempt is made to get a
representative cross-section
of the population.
Convenience
Sample
A type of non-probability sample:
uses respondents who are
convenient or readily
accessible to the researcher.
3
Types of Errors
30
Measurement
Error
Error when there is a difference
between the information desired and the
information provided by the process
Sampling
Error
Error when a sample somehow does not
represent the target population.
Frame
Error
Error when a sample drawn from a
population differs from the
target population.
Random
Error
Error because the selected sample is
an imperfect representation of
the overall population.
3
Collecting the Data
Field Service Firms specialize in:




31
Focus group facilities
Mall intercept locations
Test product storage
Kitchen facilities
3
Analyzing the Data
CrossTabulation
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.
32
3
Preparing and
Presenting the Report
 Concise statement of the research objectives
 Explanation of research design
 Summary of major findings
 Conclusion with recommendations
 Follow Up: Were recommendations useful/used?
33
3
The Profound Impact of the Internet
On Marketing Research
Discuss the profound
impact of the Internet
on marketing research
4
34
Impact of the Internet
 Under appropriate conditions, can represent
the entire population
 Has replaced computer-assisted telephone
interviewing
 Rated as having the greatest potential for
further growth
35
4
Advantages of
Internet Surveys
Rapid development,
Real-time reporting
Reduced costs
Personalized questions
and data
Improved respondent
participation
Contact with the
hard-to-reach
36
4
Uses of the Internet by
Marketing Researchers
Administer surveys
Conduct focus groups
Other marketing research: Web
Communities, Text Messages, Blogs
37
4
Methods of Collecting Online
Surveys
• Web Survey Systems
• Survey Design and Web Hosting Sites
• Online Panel Providers
38
4
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 text of the focus group
39
4
Advantages of Online
Focus Groups





40
Better participation rates
Cost-effectiveness
Broad geographic scope
Accessibility
Honesty
4
Web Community Research
A carefully selected group of consumers who
agree to participate in an ongoing dialogue
with a particular corporation.
Web communities:
– Engage customers
– Achieve customer-derived innovations
– Establish brand advocates
– Offer real-time results
41
4
Role of Consumer-Generated Media
in Marketing Research
 Media that consumers generate themselves
and share with others
 Not controlled by marketers
 CGM comes from various sources: blogs,
message boards, review sites, podcasts
 CGM is trusted more than traditional
advertising
42
4
Scanner-Based Research
Discuss the growing
importance of
scanner-based
research
5
43
Scanner-Based Research
A system for gathering information from one group by
continuously monitoring the advertising, promotion, and
pricing they are exposed to and the things they buy.
http://www.youtube.com/watch?v=eob532iEpqk
BehaviorScan
Research program that
tracks the purchases of
3,000 households
through store scanners in
each research market
44
InfoScan
Sales-tracking service
for the consumer
packaged-goods
industry
5
Scanner-Based Research
Behavior Scan
Allows marketers to manipulate marketing variables,
such as television advertising or promotions. Also, to
introduce a new product and analyze real changes in
consumer buying behavior.
Info Scan
Retail sales, detailed consumer purchasing
information (including customer loyalty and total
expenditures), and promotional activity by
manufacturers and retailers are monitored and
evaluated for all bar-coded products.
45
Data collected weekly from more than 70,000
supermarkets, drugstores & mass merchandisers
5
When to Conduct
Marketing Research
Explain when marketing
research should be
conducted
6
46
When Should Marketing
Research Be Conducted?
 Depends on managers’ perceptions of
its quality, price, and timing
 When the expected value of research
information exceeds the cost of
generating the information
47
6
Competitive Intelligence
Explain the concept
of competitive
intelligence
7
48
Competitive Intelligence
Competitive
Intelligence (CI)
An intelligence system that helps
managers assess their
competition and vendors in order
to become more efficient and
effective competitors.
49
7
Sources of
Competitive Intelligence
50
Internet
UCC Filings
Company Salespeople
Suppliers
Industry Experts
Periodicals
CI Consultants
Yellow Pages
Government Agencies
Trade Shows
7