int to mktng ch9

Copyright ©2009 by Cengage Learning Inc. All rights reserved 1

Designed by Eric Brengle B-books, Ltd.

CHAPTER

9

Prepared byAmit Shah

Frostburg State University

MarketingLamb, Hair, McDaniel

10

Decision Support Systems and Marketing Research

Copyright ©2009 by Cengage Learning Inc. All rights reserved

Learning Outcomes

2

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

LOI

LO2

LO3


Learning Outcomes

3

Discuss the profound impact of the Internet on marketing research

Discuss the growing importance of scanner-based research

Explain the concept of competitive intelligence

LO5

LO6

LO4


Marketing Decision Support Systems

4

Explain the concept and purpose of a

marketing decision support system

LOI



5

Decision Support Systems

Decision Support Systems

DSS

An interactive, flexible

computerized information

system that enables managers

to obtain and manipulate

information as they are making

decisions.

LOI


DSS System Characteristics

6LOI

InteractiveInteractive

FlexibleFlexible

Discovery-OrientedDiscovery-Oriented

AccessibleAccessible



7

DatabaseMarketing

DatabaseMarketing

The creation of a large

computerized file of customers’

and potential customers’

profiles and purchase patterns.

The key tool for successful

one-to-one marketing.

LOI


REVIEW LEARNING OUTCOMEMarketing Decision Support Systems

8

LOI


The Role of Marketing Research

9

Define marketing research and explain its importance

to marketing decision making

LO2



10

MarketingResearch

MarketingResearch

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

LO2


Marketing Research Studies

11

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



12

LO2

Diagnostic

Predictive

Descriptive Gathering and presenting

factual statements

Explaining data

“What if?”


Management Uses of Marketing Research

13LO2

Improve the quality of decision making

Trace problems

Focus on keeping existing customers

Understand the marketplace

Alert them to marketplace trends

Gauge the value of goods and services, and the level of customer satisfaction


REVIEW LEARNING OUTCOMEMarketing Research and Its Importance

14

LO2

Why marketing research? Improve quality of decision making

Trace problems

Focus on keeping existing customers

Understand changes inmarketplace


Steps in a Marketing Research Project

15

Describe the steps involved in conducting

a marketing research project

LO3


D E C I D ED

Define the marketing problemE

Enumerate the controllable and uncontrollable decision factorsC

Collect relevant informationI

Identify the best alternativeD

Develop and implement a marketing planE

Evaluate the decision and the decision process

Copyright ©2009 by Cengage Learning Inc. All rights reserved 17

The Marketing Research ProcessLO3

CollectData

CollectData

SpecifySamplingProcedure

SpecifySamplingProcedure

Plan Design/Primary DataPlan Design/Primary Data

DefineProblemDefine

Problem

AnalyzeData

AnalyzeData

Prepare/PresentReport

Prepare/PresentReport

Follow UpFollow Up

1

2

3

4

5

6

7


Marketing Research

18

LO3

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 Data

19

LO3

Secondary Data

Secondary Data

Data previously collected for

any purpose other than the one

at hand.


Sources of Secondary Data

20LO3

Government AgenciesGovernment Agencies

Trade and Industry AssociationsTrade and Industry Associations

Business PeriodicalsBusiness Periodicals

News MediaNews Media

Internal Corporate InformationInternal Corporate Information


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 basis of comparison for other data

21

LO3


Disadvantages of Secondary Data

• May not give adequate detailed information

• May not be on target with the research problem

• Quality and accuracy of data may pose a problem

22

LO3


The New Age of Secondary Information: The Internet

23

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 Design

24

LO3

Which research questions

must be answered?

How and whenwill data be gathered?

How willthe data

be analyzed?

?


Primary Data

25

LO3

Primary Data

Primary Data

Information collected for the

first time. Can be used for

solving the particular

problem under investigation.


Advantages of Primary Data

• Answers a specific research question

• Data are current

• Source of data is known

• Secrecy can be maintained

26

LO3


Disadvantages of Primary Data

• Expensive

• “Piggybacking” may confuse respondents

• Quality declines if interviews are lengthy

• Reluctance to participate in lengthy interviews

27

LO3

Disadvantages are usually offset by the advantages of primary data.


Survey Research

28

LO3

Survey ResearchSurvey Research The most popular technique

for gathering primary data in

which a researcher interacts

with people to obtain facts,

opinions, and attitudes.


Forms of Survey Research

29LO3

Focus GroupsFocus Groups

Executive InterviewsExecutive Interviews

Mail SurveysMail Surveys

Telephone InterviewsTelephone Interviews

Mall Intercept InterviewsMall Intercept Interviews

In-Home InterviewsIn-Home Interviews



30

LO3

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.



31

LO3

Focus GroupsFocus Groups Seven to ten people who

participate in a group

discussion led by a

moderator.


Questionnaire Design

32

LO3

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 Design

33

LO3

Clear and conciseClear and concise

No ambiguous languageNo ambiguous language

UnbiasedUnbiased

Reasonable terminologyReasonable terminology

Only one questionOnly one question


Observation Research

34

LO3

Observation Research

Observation Research A research method that relies on

three types of observation:

people watching peoplepeople watching an activitymachines watching people


Observational Situations

Situation

People watching people

People watching phenomena

Machines watching people

Machines watching phenomena

Example

Mystery shoppers in a supermarket

Observer at an intersection counting traffic

Video cameras recording behavior

Traffic-counting machine monitoring traffic flow

35LO3


Ethnographic Research

36

LO3

Ethnographic Research

Ethnographic Research The study of human behavior

in its natural context; involves

observation of behavior and

physical setting.


The Sampling Procedure

37

LO3

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 Procedure

38

LO3

UniverseUniverse SampleSample

Probability Samples

Probability Samples

Non-Probability Samples



Types of Samples

39

LO3

Probability Samples

Probability Samples

Simple Random Sample

Simple Random Sample

Stratified Sample

Stratified Sample

Cluster Sample

Cluster Sample

SystematicSample

SystematicSample



Convenience Sample

Convenience Sample

JudgmentSample

JudgmentSample

Quota SampleQuota Sample

SnowballSample

SnowballSample


Probability Samples

40

LO3

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 Samples

41

LO3

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 Errors

42LO3

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.


Field Service Firms

• Focus group facilities

• Mall intercept locations

• Test product storage

• Kitchen facilities

43LO3

Provide:Provide:


Analyzing the Data

44

LO3

Cross-Tabulation

Cross-Tabulation 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.


Preparing and Presenting the Report

• Concise statement of the research objectives

• Explanation of research design

• Summary of major findings

• Conclusion with recommendations

45LO3


Following Up

• Were the recommendations followed?

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

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

46LO3


REVIEW LEARNING OUTCOME

47

LO3

Steps in a Marketing Research Project


Impact of the Internet onMarketing Research

48

Discuss the profound impact of the Internet on

marketing research

LO4


Impact of the Internet

• Allows better and faster decision making

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

• Makes follow-up studies and tracking research easier

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

49

LO4


Advantages of Internet Surveys

50

LO4

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

Dramatically reduced costsDramatically reduced costs

Rapid development,real-time reporting

Rapid development,real-time reporting


Uses of the Internet by Marketing Researchers

51

LO4

Other types of marketing research Other types of marketing research

Conduct focus groupsConduct focus groups

Administer surveysAdminister surveys


Internet Samples

52LO4

Recruited Panels

Recruited Panels

Most popular form of Internet sampling.

Most popular form of Internet sampling.

ScreenedInternet Sample

RecruitedInternet Sample

An Internet sample with quotas based on desired sample

characteristics.

A sample in which respondents are prerecruited and must

qualify to participate.


Process for Online Focus Groups

53

LO4

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


Types of Online Focus Groups

54

LO4

Real-time online focus groupsReal-time online focus groups

Time-extended online focus groupsTime-extended online focus groups


Advantages of Online Focus Groups

• Speed• Cost-effectiveness• Broad geographic scope• Accessibility• Honesty

55LO4


Role of Consumer Generated Media in Marketing Research

• CGM is media which consumers generate themselves and share among themselves

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

56

LO4


Other Uses of the Internet byMarketing Researchers

57

LO4

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


REVIEW LEARNING OUTCOMEImpact of the Internet on Marketing Research

58

LO4


Scanner-Based Research

59

Discuss the growing importance of scanner-based research

LO5


Scanner-Based Research

60

Scanner-basedResearch

Scanner-basedResearch

LO5

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.

BehaviorScan

InfoScan


When Should Marketing Research Be Conducted?

61

LO5

Where there is a high level of uncertainty

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


REVIEW LEARNING OUTCOMEScanner-Based Research

62

LO5

BehaviorScan InfoScan

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

Aggregate consumerinformation on allbar-coded products


Competitive Intelligence

63

Explain the concept of competitive intelligence

LO6



64



LO6

An intelligence system that

helps managers assess their

competition and vendors in

order to become more efficient

and effective competitors.


Sources of Competitive Intelligence

65LO6

InternetInternet

Company SalespeopleCompany Salespeople

ExpertsExperts

CI ConsultantsCI Consultants

Government AgenciesGovernment Agencies

UCC FilingsUCC Filings

SuppliersSuppliers

PeriodicalsPeriodicals

Yellow PagesYellow Pages

Trade ShowsTrade Shows


REVIEW LEARNING OUTCOMECompetitive Intelligence

66

LO6

CI

Part of a soundmarketing strategy

Helps companiesrespond to competitivethreats

Helps reduceunnecessary costs

int to mktng ch9

Education

marketing research problem

role of marketing research

marketing research studies

marketing researchand

database marketing

marketing problem e

marketing plan e

research design