Marketing 333

1. Marketing 333 Chapter 9 – Decision Support Systems and Marketing Research

2. Decision Support Systems Marketing Decision Support Systems An interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions. DSS

3. DatabaseMarketing Marketing Decision Support Systems The creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns. The key tool for successfulone-to-one marketing.

4. MarketingResearch The Role of Marketing Research The process of planning, collecting, and analyzing data relevant to a marketing decision.

5. Products Uses Awareness Advertising Familiarity Prices New concepts Packages Traffic patterns Names and Logos Wants Services Needs Buying habits Politics Colors Marketing Research Studies

6. Gathering and presenting factual statements Descriptive Diagnostic • Explaining data • “What if?” Predictive The Role of Marketing Research

7. Improve quality of decision making • Trace problems • Focus on keeping existing customers • Understand changes inmarketplace Why marketing research? Uses of Market Research

8. 1 2 Define Problem 3 Plan Design/ Primary Data 4 Specify Sampling Procedure 5 Collect Data 6 Analyze Data 7 Prepare/ Present Report Follow Up The Marketing Research Process

9. Marketing Research Problem Determining what information is needed and how that information can be obtained efficiently and effectively. Marketing Research Objective The specific information needed to solve a marketing research problem; the objective should provide insightful decision-making information. Management Decision Problem A broad-based problem that requires marketing research in order for managers to take proper actions. Marketing Research

10. Types of Data • Secondary Data • Previously collected and assembled for some purpose other than the one at hand • Primary Data • Gathered and assembled specifically for the project at hand

11. Internal Corporate Information Government Agencies Trade and Industry Associations Business Periodicals News Media Sources of Secondary Data

12. Advantages Less expensive than primary data Obtained quickly Disadvantages May be too old May not be in the right form May not be able to assess accuracy Secondary Research Data

13. 1 Analyze your topic 2 Test run a word or phrase in a search engine 3 Learn as you go and vary your approach 4 Don’t bog down in strategy that doesn’t work 5 Go back to earlier steps better informed The New Age of Secondary Information: The Internet

14. Which research questions must be answered? How and whenwill data be gathered? ? How willthe databe analyzed? Planning the Research Design

15. Primary Data Primary Data Information collected for the first time. Can be used for solving the particular problem under investigation.

16. Advantages of Primary Data • Answers a specific research question • Data are current • Source of data is known • Secrecy can be maintained

17. Disadvantages of Primary Data • Expensive • “Piggybacking” may confuse respondents • Quality declines if interviews are lengthy • Reluctance to participate in lengthy interviews • May take a long time to collect data

18. Primary Data Collection Methods • Surveys • Observation studies • Experiments

19. Survey Research Survey Research The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes.

20. In-Home Interviews Mail Surveys Mall Intercept Interviews Executive Interviews Telephone Interviews Focus Groups Forms of Survey Research

21. Mall InterceptInterview Survey research method that involves interviewing people in the common areas of shopping malls. Executive Interview A type of survey that involves interviewing businesspeople at their offices concerning industrial products or services. Forms of Survey Research

22. Focus Groups Forms of Survey Research Seven to ten people who participate in a group discussion led by a moderator.

23. Open-Ended Question An interview question that encourages an answer phrased in respondent’s own words. Closed-Ended Question An interview question that asks the respondent to make a selection from a limited list of responses. Scaled-Response Question A closed-ended question designed to measure the intensity of a respondent’s answer. Questionnaire Design

24. Clear and concise No ambiguous language Only one question Unbiased Reasonable terminology http://www.createsurvey.com Online Questionnaire Design

25. Observation Research Observation Research A research method that relies on three types of observation: • people watching people • people watching an activity • machines watching people

26. http://www.bmiltd.com Online Observational Situations

27. Ethnographic Research Ethnographic Research The study of human behaviorin its natural context; involves observation of behavior and physical setting.

28. Experiments • “Laboratory” experiments • Test Markets

29. The Sampling Procedure Sample A subset from a large population. Universe The population from which a sample will be drawn.

30. Probability Samples Non-Probability Samples Simple Random Sample Convenience Sample Stratified Sample JudgmentSample Cluster Sample Quota Sample SystematicSample SnowballSample Types of Samples

31. Measurement Error Error when there is a difference between the information desired and the information provided by research Sampling Error Error when a sample somehow does not represent the target population. 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. Types of Errors

32. Field Service Firms Provide: • Focus group facilities • Mall intercept locations • Test product storage • Kitchen facilities • Retail audits

33. Cross-Tabulation Analyzing the 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.

34. Preparing and Presenting the Report • Concise statement of the research objectives • Explanation of research design • Summary of major findings • Conclusion with recommendations

35. 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?

36. 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

37. Administer surveys Conduct focus groups Other types of marketing research http://www.greenfieldonline.com Online Uses of the Internet by Marketing Researchers

38. 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. Internet Samples

39. 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 they are saying it).

40. Scanner-basedResearch Scanner-Based Research 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. BehaviorScanInfoScan

41. Competitive Intelligence An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors. Competitive Intelligence

42. UCC Filings Internet Suppliers Company Salespeople Periodicals Experts Yellow Pages CI Consultants Trade Shows Government Agencies Sources of Competitive Intelligence