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CHAPTER
9
Prepared byAmit Shah
Frostburg State University
MarketingLamb, Hair, McDaniel
10
Decision Support Systems and Marketing Research
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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
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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
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Marketing Decision Support Systems
4
Explain the concept and purpose of a
marketing decision support system
LOI
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Marketing Decision Support Systems
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
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DSS System Characteristics
6LOI
InteractiveInteractive
FlexibleFlexible
Discovery-OrientedDiscovery-Oriented
AccessibleAccessible
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Marketing Decision Support Systems
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
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REVIEW LEARNING OUTCOMEMarketing Decision Support Systems
8
LOI
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The Role of Marketing Research
9
Define marketing research and explain its importance
to marketing decision making
LO2
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The Role of Marketing Research
10
MarketingResearch
MarketingResearch
The process of planning, collecting, and analyzing data relevant to a marketing decision.
LO2
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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
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The Role of Marketing Research
12
LO2
Diagnostic
Predictive
Descriptive Gathering and presenting
factual statements
Explaining data
“What if?”
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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
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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
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Steps in a Marketing Research Project
15
Describe the steps involved in conducting
a marketing research project
LO3
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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
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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
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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.
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Secondary Data
19
LO3
Secondary Data
Secondary Data
Data previously collected for
any purpose other than the one
at hand.
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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
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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
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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
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The New Age of Secondary Information: The Internet
23
LO3
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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
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Planning the Research Design
24
LO3
Which research questions
must be answered?
How and whenwill data be gathered?
How willthe data
be analyzed?
?
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Primary Data
25
LO3
Primary Data
Primary Data
Information collected for the
first time. Can be used for
solving the particular
problem under investigation.
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Advantages of Primary Data
• Answers a specific research question
• Data are current
• Source of data is known
• Secrecy can be maintained
26
LO3
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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.
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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.
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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
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Forms of Survey Research
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.
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Forms of Survey Research
31
LO3
Focus GroupsFocus Groups Seven to ten people who
participate in a group
discussion led by a
moderator.
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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.
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Questionnaire Design
33
LO3
Clear and conciseClear and concise
No ambiguous languageNo ambiguous language
UnbiasedUnbiased
Reasonable terminologyReasonable terminology
Only one questionOnly one question
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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
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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
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Ethnographic Research
36
LO3
Ethnographic Research
Ethnographic Research The study of human behavior
in its natural context; involves
observation of behavior and
physical setting.
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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.
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Sampling Procedure
38
LO3
UniverseUniverse SampleSample
Probability Samples
Probability Samples
Non-Probability Samples
Non-Probability Samples
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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
Non-Probability Samples
Non-Probability Samples
Convenience Sample
Convenience Sample
JudgmentSample
JudgmentSample
Quota SampleQuota Sample
SnowballSample
SnowballSample
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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.
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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.
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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.
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Field Service Firms
• Focus group facilities
• Mall intercept locations
• Test product storage
• Kitchen facilities
43LO3
Provide:Provide:
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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.
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Preparing and Presenting the Report
• Concise statement of the research objectives
• Explanation of research design
• Summary of major findings
• Conclusion with recommendations
45LO3
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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
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REVIEW LEARNING OUTCOME
47
LO3
Steps in a Marketing Research Project
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Impact of the Internet onMarketing Research
48
Discuss the profound impact of the Internet on
marketing research
LO4
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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
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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
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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
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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.
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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
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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
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Advantages of Online Focus Groups
• Speed• Cost-effectiveness• Broad geographic scope• Accessibility• Honesty
55LO4
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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
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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
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REVIEW LEARNING OUTCOMEImpact of the Internet on Marketing Research
58
LO4
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Scanner-Based Research
59
Discuss the growing importance of scanner-based research
LO5
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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
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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
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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
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Competitive Intelligence
63
Explain the concept of competitive intelligence
LO6
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Competitive Intelligence
64
Competitive Intelligence
Competitive Intelligence
LO6
An intelligence system that
helps managers assess their
competition and vendors in
order to become more efficient
and effective competitors.
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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
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REVIEW LEARNING OUTCOMECompetitive Intelligence
66
LO6
CI
Part of a soundmarketing strategy
Helps companiesrespond to competitivethreats
Helps reduceunnecessary costs