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Chapter 8 Improving Decisions with Marketing Information Radical Changes are Underway in Marketing Information Marketing Information System (MIS) + Intranet + DSS Why we need marketing research ? Ever changing needs In dynamic markets Marketing Research To get the facts Who does the work Effective research requires cooperation Five-Step Approach to Marketing Research 1. 2. 3. 4. 5. Defining the problem Analyzing the situation Getting problem-specific data Interpreting the data Solving the problem 5 step Five-Step Scientific Approach to Marketing Research Process Early identification of solution Defining the problem Analyzing the situation Getting ProblemSpecific data Feedback to previous steps Interpreting the data Solving the problem Step 1- Defining the Problem Finding the right problem level almost solves the problem Don’t confuse problems with symptoms Setting research objectives may require more understanding Define Step 2 – Analyzing the Situation What information do we already have? Secondary data & Primary data Search engines -Yahoo.com Government data & Private sources Determine what else is needed – research proposal Step3 Getting Problem-Specific Data Gathering primary data There are two basic methods for obtaining information about customers: Questioning; Observing Questioning: range qualitative to quantitative research Observing: many kinds are possible Qualitative Research VS Quantitative Research Qualitative Research Seeks in-depth,open-ended responses,not yes or no answers. Qualitative questioning ─open-ended with a hidden purpose Interview ex : mall intercept Observing Focuses on a well-defined problem Observing is common in advertising research Checkout scanners see a lot Experimental method controls conditions Focus Group which involves interviewing 6 to 10 people in an informal group setting The focus group also uses open-ended questions,but here the interviewer wants to get group interaction─to stimulate thinking and get immediate reactions. Quantitative Research Quantitative measures of attitudes too Surveys come in many forms: Mail:strength:common,convenient, weakness:response rate is low Telephone : strength:fast and effective weakness:is not a good contact to get confidential personal information Personal interview: strength:can be in-depth weakness:people won’t give an answer because culture or they consider embarrassing E-mail:strength:fast ,convenient ,24hours weakness:the information is true or not Represen t-ative group of customer s Half of the people see Ad#1 Half of the people see Ad#2 Difference in Response between Mean for group who saw Ad#1=3.2 groups Mean for group who saw Ad#2=4.6 1 Groups of people are similar except for the ad they see the two 2 3 4 5 Average product interest rating by group Step 4 Interpreting the Data Step 5 Solving the Problem Cross-tabulation Random samples tend to be representative Validity problems can destroy research Poor interpretation can destroy research Marketing manager and researcher should work together The last step is solving the problem International Marketing Research Research contributes to international success Avoid mistakes with local researchers Some coordination and standardization makes sense DSS Decision Support System--DSS DSS put managers online Back MIS - Marketing Information System An organized way of continually gathering, accessing, and analyzing information. Get more information – faster & easier Information sources Questions & Answers Decision maker Results Back Have You Moved in the Last Year Answer: Do you have “Caller ID” on your phone at home? No Yes Total Yes 10.2% 23.4% 15.5% No 89.8% 76.6% 84.5% Total 100% 100% 100% Back