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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 1

    MKTG

    Designed by

    Amy McGuire, B-books, Ltd.

    Decision Support

    Systems andMarketing Research8CHAPTER

    Lamb, Hair, McDaniel,

    Kapoor, Klaise, & Appleby Canadian Edition

    Prepared byDeborah Baker, Texas Christian

    University andTina Grant, Durham College

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 2

    Learning Outcomes

    Explain the concept and purpose of a

    marketing decision support system

    Define marketing research and explain itsimportance to marketing decision making

    Describe the steps involved in conductinga marketing research project

    LO1

    LO2

    LO3

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 3

    Learning Outcomes

    Discuss the profound impact of

    the Internet on marketing research

    Discuss the growing importance ofscanner-based research

    Explain the concept of competitiveintelligence

    LO4

    LO5

    LO6

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 4

    Explain the conceptand purpose of a

    marketing decision

    support system

    Marketing DecisionMarketing Decision

    Support SystemsSupport SystemsLO1

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 5

    LO1

    Marketing 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.

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 6

    LO1

    DSS System Characteristics

    Interactive

    Interactive

    Flexible

    Flexible

    Discovery-Oriented

    Discovery-Oriented

    Accessible

    Accessible

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 7

    LO1

    Marketing Decision Support Systems

    Database

    Marketing

    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.

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 8

    REVIEW LEARNING OUTCOMELO1

    Marketing Decision Support Systems

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    Define marketing

    research andexplain its

    importance to

    marketing decisionmaking

    The Role of Marketing ResearchThe Role of Marketing ResearchLO2

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 10

    The Role of Marketing Research

    LO2

    Marketing

    Research

    The process of planning,

    collecting, and analyzing

    data relevant to a marketingdecision.

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 11

    Marketing Research Studies

    LO2

    ProductsProducts

    AdvertisingAdvertising

    PricesPrices

    PackagesPackages

    Names and LogosNames and Logos

    ServicesServices

    Buying habitsBuying habits

    ColoursColours

    UsesUses

    AwarenessAwareness

    FamiliarityFamiliarity

    New conceptsNew concepts

    Traffic patternsTraffic patterns

    WantsWants

    NeedsNeeds

    PoliticsPolitics

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 12

    The Role of Marketing Research

    LO2

    Diagnostic

    Predictive

    Descriptive Gathering and presenting

    factual statements

    Explaining data

    What if?

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 13

    LO2

    Be

    yond

    the

    Boo

    k

    Management Uses of MarketingResearch

    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

    NOTE: Supplemental content not in book.

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 14

    REVIEW LEARNING OUTCOMELO2

    Marketing Research and Its Importance

    Why marketing research? Improve quality of

    decision making

    Trace problems

    Focus on keeping

    existing customers

    Understand changes in

    marketplace

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    Describe thesteps involved inconducting a

    marketing

    research project

    Steps in a MarketingSteps in a Marketing

    Research ProjectResearch ProjectLO3

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 16

    The Marketing

    Research ProcessLO3

    CollectData

    CollectData

    Specify

    SamplingProcedure

    SpecifySamplingProcedure

    Plan Design/Primary Data

    Plan Design/Primary Data

    DefineProblem

    DefineProblem

    Analyze

    Data

    AnalyzeData

    Prepare/PresentReport

    Prepare/PresentReport

    Follow UpFollow Up

    1

    23

    4

    5

    6

    7

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 17

    Marketing ResearchLO3

    MarketingResearchProblem

    MarketingResearchProblem

    MarketingResearchObjective

    MarketingResearchObjective

    ManagementDecisionProblem

    ManagementDecisionProblem

    Determining what information is needed andhow that information can be

    obtained efficiently and effectively.

    Determining what information is needed andhow that information can be

    obtained efficiently and effectively.

    The specific information neededto solve a marketing research problem;the objective should provide insightful

    decision-making information.

    The specific information neededto solve a marketing research problem;the objective should provide insightful

    decision-making information.

    A broad-based problem thatrequires marketing research in orderfor managers to take proper actions.

    A broad-based problem thatrequires marketing research in orderfor managers to take proper actions.

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 18

    Secondary DataLO3

    Data previously collected

    for any purpose other

    than the one at hand.

    Secondary

    Data

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 19

    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

    http://www.coca-colastore.com/http://www.coca-colastore.com/
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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 20

    Advantages of Secondary DataLO3

    Saves time and money

    if on target

    Aids in determining

    direction for primarydata collection

    Pinpoints the kinds of

    people to approach

    Serves as a basis ofcomparison

    for other data

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 21

    Disadvantages of Secondary DataLO3

    May not give adequate

    detailed information

    May not be on target

    with the researchproblem

    Quality and accuracy of

    data may pose a

    problem

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 22

    The New Age of Secondary

    Information: The InternetLO3

    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

    Dont bog down in strategy that doesnt workDont bog down in strategy that doesnt work

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

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 23

    Planning the Research DesignLO3

    Which researchquestions

    must be answered?

    How and whenwill data begathered?

    How willthe data

    be analyzed?

    ?

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 24

    Primary DataLO3

    Primary

    DataInformation collected for the

    first time. Can be used for

    solving the particular problem

    under investigation.

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 25

    Advantages of Primary DataLO3

    Answers a

    specific research

    question

    Data are current

    Source of data is

    known

    Secrecy can be

    maintained

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 26

    Disadvantages of Primary DataLO3

    Expensive

    Piggybacking

    may confuse

    respondents

    Quality declines if

    interviews are

    lengthy

    Reluctance to

    participate in

    lengthy interviews

    Disadvantagesare usuallyoffset by theadvantages of

    primary data.

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 27

    Survey ResearchLO3

    The most popular technique

    for gathering primary data in

    which a researcher interactswith people to obtain facts,

    opinions, and attitudes.

    Survey Research

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 28

    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

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 30

    Forms of Survey ResearchLO3

    Seven to ten people

    who participate in a

    group discussion led

    by a moderator.

    Focus Groups

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 31

    Questionnaire DesignLO3

    Open-EndedQuestion

    Open-EndedQuestion

    Closed-EndedQuestion

    Closed-EndedQuestion

    Scaled-ResponseQuestion

    Scaled-ResponseQuestion

    An interview question that encouragesan answer phrased in respondents

    own words.

    An interview question that encouragesan answer phrased in respondents

    own words.

    An interview question that asksthe respondent to make a selection

    from a limited list of responses.

    An interview question that asksthe respondent to make a selection

    from a limited list of responses.

    A closed-ended questiondesigned to measure the intensity

    of a respondents answer.

    A closed-ended questiondesigned to measure the intensity

    of a respondents answer.

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 32

    Questionnaire Design

    Avocado

    On the other hand,

    unless the

    researcher designs

    the closed-ended

    question very

    carefully, animportant choice

    may be omitted.

    Closed-ended and scaled-response questions are easier to tabulate

    than open-ended questions because response choices are fixed.

    Be

    yon

    d

    th

    e

    Boo

    k

    LO3

    NOTE: Supplemental content not in book.

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 33

    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

    http://www.createsurvey.com/http://www.createsurvey.com/
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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 34

    Observation ResearchLO3

    A research method that relies on

    three types of observation:

    people watching people people watching an activity machines watching people

    Observation

    Research

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 35

    Observational SituationsLO3

    Situation Peoplewatchingpeople

    Peoplewatching

    phenomena

    Machineswatchingpeople

    Machineswatching

    phenomena

    Example Mysteryshoppers in asupermarket

    Observerat an

    intersectioncounting traffic

    Video camerasrecordingbehaviour

    Traffic-countingmachinemonitoringtraffic flow

    Online

    http://www.bmiltd.com

    http://www.bmiltd.com/http://www.bmiltd.com/
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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 36

    Ethnographic ResearchLO3

    The study of human behaviour

    in its natural context; involves

    observation of behaviour and

    physical setting.

    Ethnographic

    Research

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 37

    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.

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 38

    Sampling ProcedureLO3

    UniverseUniverse SampleSample

    ProbabilitySamples

    ProbabilitySamples

    Non-ProbabilitySamples

    Non-ProbabilitySamples

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 39

    Types of SamplesLO3

    ProbabilitySamples

    Simple Random

    Sample

    StratifiedSample

    Cluster

    Sample

    SystematicSample

    Non-ProbabilitySamples

    Convenience

    Sample

    JudgmentSample

    Quota

    Sample

    SnowballSample

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 40

    Probability SamplesLO3

    ProbabilitySample

    ProbabilitySample

    A sample in which every element inthe population has a known

    statistical likelihood of being

    selected.

    A sample in which every element inthe population has a known

    statistical likelihood of beingselected.

    RandomSample

    RandomSample

    A sample arranged so that everyelement of the population has an

    equal chance of being selected.

    A sample arranged so that everyelement of the population has anequal chance of being selected.

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 41

    Nonprobability SamplesLO3

    NonprobabilitySample

    NonprobabilitySample

    ConvenienceSample

    ConvenienceSample

    Any sample in which little orno attempt is made to get a

    representative cross-sectionof the population.

    Any sample in which little orno attempt is made to get a

    representative cross-sectionof the population.

    A form of nonprobability sampleusing respondents who are

    convenient or readily

    accessible to the researcher.

    A form of nonprobability sampleusing respondents who are

    convenient or readily

    accessible to the researcher.

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 42

    Types of ErrorsLO3

    MeasurementError

    MeasurementError

    Error when there is a differencebetween the information desired and theinformation provided by research

    Error when there is a differencebetween the information desired and theinformation provided by research

    Sampling

    Error

    Sampling

    ErrorError 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 apopulation differs from the

    target population.

    Error when a sample drawn from apopulation differs from the

    target population.

    Random

    Error

    Random

    Error

    Error because the selected sample isan imperfect representation of

    the overall population.

    Error because the selected sample isan imperfect representation of

    the overall population.

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 44

    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

    Preparing and Presenting

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 45

    Preparing and Presenting

    the ReportLO3

    Concise statement of the research

    objectives

    Explanation of research design

    Summary of major findings

    Conclusion with recommendations

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    REVIEW

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 47

    LEARNING

    OUTCOME

    LO3

    Steps in a

    MarketingResearch

    Project

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 48

    Discuss theprofound impact of

    the Internet on

    marketing research

    Impact of the Internet onImpact of the Internet on

    Marketing ResearchMarketing ResearchLO4

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 49

    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 labour- and time-intensive

    research activities and costs

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 50

    LO4

    Advantages of Internet Surveys

    Contact with thehard-to-reach

    Contact with thehard-to-reach

    Improved respondentparticipation

    Improved respondentparticipation

    Personalized questionsand data

    Personalized questionsand data

    Reduced costsReduced costs

    Rapid development,Real-time reporting

    Rapid development,Real-time reporting

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 51

    LO4

    Uses of the Internet by

    Marketing Researchers

    Other types of marketing researchOther types of marketing research

    Conduct focus groupsConduct focus groups

    Administer surveysAdminister surveys

    Online

    http://www.greenfieldonline.com

    http://www.greenfieldonline.com/http://www.greenfieldonline.com/
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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 52

    LO4

    Internet Samples

    UnrestrictedInternetSample

    UnrestrictedInternetSample

    ScreenedInternetSample

    ScreenedInternetSample

    RecruitedInternetSample

    RecruitedInternetSample

    A survey in which anyone witha computer and modem can fill

    out the questionnaire.

    A survey in which anyone witha computer and modem can fill

    out the questionnaire.

    An Internet sample with quotasbased on desired sample

    characteristics.

    An Internet sample with quotasbased on desired sample

    characteristics.

    A sample in which respondentsare prerecruited and must

    qualify to participate.

    A sample in which respondentsare prerecruited and must

    qualify to participate.

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 53

    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

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 54

    LO4

    Types of Online Focus Groups

    Real-time online focus groupsReal-time online focus groups

    Time-extended online focus groupsTime-extended online focus groups

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 55

    LO4

    Advantages of Online

    Focus Groups

    Speed

    Cost-effectiveness

    Broad geographic scope

    Accessibility

    Honesty

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 56

    LO4

    Role of Blogs in

    Marketing Research

    Refined technologies allow

    companies to mine data

    available in Internet blogs. Companies can identify the

    most influential bloggers

    and learn exactly what they

    are saying (and how theyare saying it).

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 57

    LO4

    Other Uses of the Internet by

    Marketing Researchers

    Viewing of presentations ofmarketing research surveys

    Viewing of presentations ofmarketing research surveys

    Publication and distributionof reportsPublication and distributionof reports

    Data management andonline analysis

    Data management andonline analysis

    Collaboration between clientand research supplier

    Collaboration between clientand research supplier

    Distribution of requests forproposals (RFPs) and proposals

    Distribution of requests forproposals (RFPs) and proposals

    LO4

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 58

    REVIEW LEARNING OUTCOMELO4

    Impact of the Internet on Marketing Research

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 59

    Discuss the growingimportance of

    scanner-based

    research

    Scanner-Based ResearchScanner-Based ResearchLO5

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 60

    LO5

    Scanner-Based Research

    Scanner-based

    Research

    A system for gathering information

    from a single group of respondents

    by continuously monitoring the

    advertising, promotion, and pricingthey are exposed to and the things

    they buy.

    BehaviorScanInfoScan

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    LO5

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 62

    REVIEW LEARNING OUTCOMELO5

    Scanner-Based Research

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 63

    Explain the concept

    of competitive

    intelligence

    Competitive IntelligenceCompetitive IntelligenceLO6

    Competitive IntelligenceLO6

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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 64

    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 CompetitiveLO6

    http://www.scip.org/http://www.scip.org/
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    Chapter 8 Copyright 2010 by Nelson Education Ltd. All rights reserved 65

    p

    IntelligenceLO6

    InternetInternet

    Company SalespeopleCompany Salespeople

    ExpertsExperts

    CI ConsultantsCI Consultants

    Government AgenciesGovernment Agencies

    Industry CanadaIndustry Canada

    SuppliersSuppliers

    PeriodicalsPeriodicals

    Yellow PagesYellow Pages

    Trade ShowsTrade Shows

    REVIEW LEARNING OUTCOMELO6

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    REVIEW LEARNING OUTCOMELO6

    Competitive Intelligence

    CI

    Part of a soundmarketing strategy

    Helps companies

    respond to competitive

    threats

    Helps reduce

    unnecessary costs