Decision Support Systems and Marketing Research

1
Decision Support Systems and Marketing Research
7
chapter
Prepared by Deborah Baker Texas Christian
UniversityRevised byDr. R. BaurAgricultural
Technical Institute
2
Chapter 6 Review

• 1. Characteristics of mkts market segments.
• 2. Importance of market segmentation.
• Criteria for successful market segmentation.
• Consumer market segmentation criteria
• Business market segmentation criteria
• Steps involved in segmenting markets.
• Strategies for selecting target markets.
• implement positioning strategies
• Global market segmentation and targeting

6
chapter
3
Chapter 7 Learning Objectives

• Explain the concept purpose of a marketing
  decision support system.
• Define marketing research explain its
  importance to marketing decision making
• 3. Describe the steps involved in conducting a
  marketing research project.

7
4. Discuss the profound impact of the Internet
on marketing research. 5. Discuss the growing
importance of scanner-based research. 6. Explain
the concept of competitive intelligence.
chapter
4
Decision Support System
Learning Objective
Explain Concept Purpose Of A Marketing
Decision Support System.
222
1
An interactive, flexible computerized information
system that enables managers to obtain and
manipulate information as they are making
decisions.
DSS
5
218
Learning Objective
Explain Concept Purpose Of A Marketing
Decision Support System.
1
Characteristicsof a DSS System
Interactive
Flexible
Discovery-Oriented
Accessible
6
Database Marketing
218
Learning Objective
Explain concept purpose of a marketing
decision support system.
1
The creation of a large computerized file of
customers and potential customers profiles and
purchase patterns.
7
Marketing Research
Define Marketing Research And Explain Its
Importance To Marketing Decision Making.
219
Learning Objective
2
The process of gathering, recording, and
analyzing data relevant to a marketing decision.
8
3 Roles of Marketing Research
223
Define Marketing Research And Explain Its
Importance To Marketing Decision Making.
Learning Objective
2

• Gathering and presenting factual statements

Descriptive
Diagnostic

• Explaining data

• Attempting to estimate the results of a planned
  marketing decision

Predictive
9
Mgt Uses of Marketing Research
223
Define Marketing Research And Explain Its
Importance To Marketing Decision Making.
Learning Objective
0
2

• Improve Decision Making-

• Trace problems

• Understand the ever- changing marketplace

• Focus on keeping existing customers

10
Marketing Research Process
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
226
3
A. Define Problem
B. Plan Design/ Primary Data
C. Specify Sampling Procedure
D. Collect Data
E. Analyze Data
F. Prepare/ Present Report
G. Follow Up
11
A. PROBLEM DEFINITION
227
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
3
Determining what information is needed and how
that information can be obtained efficiently and
effectively.
Marketing Research Problem
The specific information needed to solve a
marketing research problem the objective should
provide insightful decision-making information.
Marketing Research Objective
A broad-based problem that requires marketing
research in order for managers to take proper
actions.
Management Decision Problem
12
B. Research Design
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
225
3


How and whenwill data be gathered?
?
Which research questions must be answered?

How willthe databe analyzed?
13
Sources of Secondary Data
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
227
3
Data previously collected for any purpose other
than the one at hand.
Secondary Data
Internal Corporate Information
Government Agencies
Marketing Research Firms
Commercial Publications
News Media
Trade and Industry Associations
14
Advantages of Secondary Data
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
228
3

• 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

15
Disadvantages of Secondary Data
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
228
3

• May not be on target with the research problem

• Quality and accuracy of data may pose a problem

16
The New Age of Secondary Information
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
228
3

• Search Engines Directories
• Sites of Interest to Marketing Researchers
• Periodical, Newspaper, and Book Databases
• Discussion Groups
• Academic Professional
• Commercial Portals

17
Advantages of Primary Data
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
230
3
Information collected for 1st time. Can be used
for solving the particular problem under
investigation.
Primary Data

• Answers a specific research question
• Data is current
• Source of data is known
• Secrecy can be maintained

18
Disadvantages of Primary Data
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
230
3

• Expensive
• Quality declines if interviews are lengthy

Disadvantages are usually offset by the
advantages of primary data!

• Reluctance to participate in lengthy interviews

19
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
230
3
Survey Research
Popular technique for gathering primary data. A
researcher interacts with people to obtain facts,
opinions
In-Home Interviews
Telephone Interviews
Mail Surveys
20
Mall Intercept Interview
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
230
3
0
CONSUMER MARKETING
BUSINESSMARKETING
Executive Interviews
Survey research method that involves interviewing
people in the common areas of shopping malls.
A type of survey that involves interviewing
businesspeople at their offices concerning
industrial products or services.
21
Advantages of On-Line Focus Groups
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
233
3
Focus Group
7 - 10 people in a group discussion led by a
moderator.

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

22
Questionnaire Design
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
234
3
Open-Ended Question
An interview question that encourages an answer
phrased in respondents own words.
Tell me what you like about this product
Closed-Ended Question
An interview question that asks the respondent
to make a selection from a limited list of
responses.
Have you heard about this product?
Scaled-Response Question
A closed-ended question designed to measure the
intensity of a respondents answer.
How would rate this product on a 1 to 5 scale?
23
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
235
3
Clear and Concise
No and in question
Qualities of Good Questionnaires
No Ambiguous Language
Do you like peas and carrots
Reasonable Terminology
Reading Level
No Technical Jargon
Unbiased
No Leading Questions.
You like it, Dont You
24
Observation Research
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
236
3
0
Watching What People Do.
1. People Watching People
Types ofObservationResearch
Mystery Shoppers
One-Way Mirrors
2. People Watching an Activity
Observing How Many People Go Down An Aisle
25
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
236
3
0
3. Machines WatchingPeople
Traffic Counters
4. Machines WatchingActivity
Types ofObservationResearch
Passive People Meter
26
C. Sampling Procedure
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
237
3
Universe
The population from which a sample will be drawn.
Probability Samples
Sample
Non-Probability Samples
A subset from a large population.
27
Probability Samples
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
237
3
Probability Sample
Random Sample
A sample in which every element in the
population has a known statistical likelihood of
being selected, but not necessarily equal
A sample arranged so that every element of the
population has an equal change of being selected.
28
Nonprobability Samples
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
237
3
Nonprobability Sample
Convenience Sample
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.
29
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
238
3
Probability Samples
Non-Probability Samples
Easiest
Convenience Sample
Random Sample
Know Equal Chance
ResearchersJudgment
JudgmentSample
Random SamplesFrom Groups
Stratified Sample
Fixed Numberin Categories
Quota Sample
Everyone in aRandom Group
Cluster Sample
SnowballSample
RespondentSuggests Others
SystematicSample
Skip Interval on a list
30
Types of Errors
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
238
3
Measurement Error
Error when there is a difference between the
information desired and the information provided
by research
Error when a sample somehow does not represent
the target population.
Sampling Error
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.
31
Field Service Firms
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
239
3
D. Collect Data

• Focus group facilities
• Mall intercept locations
• Test product storage
• Kitchen facilities
• Retail audits

A firm that specializes in interviewing
respondents on a subcontracted basis.
32
Cross-Tabulation
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
239
3
E. Analyze Data
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.
33
F. Preparing Presenting Report
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
241
3

• Concise statement of research objectives
• Explanation of research design
• Summary of major findings
• Conclusion with recommendations

34
G. Following Up
Learning Objective
Describe Steps Involved In Conducting A Mkt
Research Project
241
3

• Were the recommendations followed?
• Was sufficient decision-making information
  included in the report?
• What could have been done to make the report
  more useful?

35
Learning Objective
Discuss the impact of the Internet on marketing
research.
242
4

• Allows better and faster decision making
• Improves ability to respond quickly to customer
  needs and market shifts
• Makes follow-up studies and research easier
• Slashes labor-and time-intensive research
  activities

36
Learning Objective
Discuss The Impact Of The Internet On Marketing
Research.
242
4
Rapid development, Real-time reporting
Reduced costs
Advantages of Internet Surveys
Personalized questions and data
Improved respondent participation
Contact with the hard-to-reach
37
Internet Samples
Learning Objective
Discuss The Impact Of The Internet On Marketing
Research.
243
4
Unrestricted Internet Sample
A survey in which anyone with a computer and
modem can fill out the questionnaire.
Screened Internet Sample
An Internet sample with quotas based on desired
sample characteristics.
Recruited Internet Sample
A sample in which respondents are prerecruited
and must qualify to participate.
38
Learning Objective
Discuss The Impact Of The Internet On Marketing
Research.
246
4
Distribution of requests for proposals
Collaboration in the management of a research
project
Other Internet Uses by Marketing Researchers
Data management and on-line analysis
Publication and distribution of reports
Viewing of presentations of marketing research
surveys
39
Learning Objective
Discuss Growing Importance Of Scanner-based
Research.
247
5
BehaviorScan InfoScan
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.
40
When Should Marketing Research be Conducted?
Learning Objective
Discuss Growing Importance Of Scanner-based
Research.
244
5

• Where there is a high level of uncertainty
• When value of research information exceeds the
  cost of generating the information

41
Competitive Intelligence
Learning Objective
Explain The Concept Of Competitive Intelligence.
245
6
An intelligence system that helps managers assess
their competition and vendors in order to become
more efficient and effective competitors.
42
Competitive Intelligence
Learning Objective
Explain The Concept Of Competitive Intelligence.
248
6

• Can help identify a competitors advantage
• Can help determine how the competitors
  advantagewas achieved

43
Advantages of Competitive Intelligence
Learning Objective
Explain The Concept Of Competitive Intelligence.
6
249

• Predict changes in business relationships
• Guard against threats
• Forecast a competitors strategy
• Develop a successful marketing plan

44
Sources of Competitive Intelligence
Learning Objective
Explain The Concept Of Competitive Intelligence.
249
6
Internet
UCC Filings
Company Personnel
Suppliers
Newspapers/Periodicals
Experts
CI Consultants
Yellow Pages
Government Agencies
Trade Shows
45
Chapter 7 Summary

• 1. Concept purpose of a marketing decision
  support system.
• 2. Define marketing research explain its
  importance to marketing decision making.
• Steps involved a marketing research project.
• Impact of the Internet on marketing research.
• Importance of scanner-based research.
• Concept of competitive intelligence.

7
chapter
46
Next Time

• Chapter 8
• and
• Exam 2 over Chapters 4,5,6,7