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2011.2.09 marketing

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2011.2.09 marketing

  1. 1. Lamb, Hair, McDaniel CHAPTER 9 Decision Support Systems and Marketing Research 2010-2011
  2. 2. LO 1 Explain the concept and purpose of a marketing decision support system LO 2 Define marketing research and explain its importance to marketing decision making LO 3 Describe the steps involved in conducting a marketing research project Learning Outcomes
  3. 3. LO 4 Discuss the profound impact of the Internet on marketing research LO 5 Discuss the growing importance of scanner-based research LO 6 Explain when marketing research should be conducted LO 7 Explain the concept of competitive intelligence Learning Outcomes
  4. 4. Marketing Decision Support Systems Explain the concept and purpose of a marketing decision support system LO 1
  5. 5. Marketing Decision Support Systems <ul><li>An interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions. </li></ul><ul><li>Characteristics: </li></ul><ul><ul><li>Interactive </li></ul></ul><ul><ul><li>Flexible </li></ul></ul><ul><ul><li>Discovery Oriented </li></ul></ul><ul><ul><li>Accessible </li></ul></ul>LO 1
  6. 6. Marketing Decision Support Systems 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. LO 1 Database Marketing
  7. 7. The Role of Marketing Research Define marketing research and explain its importance to marketing decision making LO 2
  8. 8. The Role of Marketing Research The process of planning, collecting, and analyzing data relevant to a marketing decision. LO 2 Marketing Research
  9. 9. Marketing Research Studies LO 2 Products Advertising Prices Packages Names and Logos Services Buying habits Colors Uses Awareness Familiarity New concepts Traffic patterns Wants Needs Politics
  10. 10. The Role of Marketing Research LO 2 Diagnostic Predictive Descriptive <ul><li>Gathering and presenting factual statements </li></ul><ul><li>Explaining data </li></ul><ul><li>“ What if?” </li></ul>
  11. 11. <ul><li>Improve the quality of decision making </li></ul><ul><li>Trace problems </li></ul><ul><li>Focus on keeping existing customers </li></ul><ul><li>Understand the marketplace </li></ul><ul><li>Alert them to marketplace </li></ul><ul><li>trends </li></ul><ul><li>Gauge the value of goods </li></ul><ul><li>and services, and the level </li></ul><ul><li>of customer satisfaction </li></ul>Beyond the Book Management Uses of Marketing Research NOTE: Supplemental content – not in book. LO 2
  12. 12. The Importance of Marketing Research LO 2 Why marketing research? <ul><li>Improve quality of decision making </li></ul><ul><li>Trace problems </li></ul><ul><li>Focus on keeping existing customers </li></ul><ul><li>Understand changes in marketplace </li></ul>
  13. 13. Steps in a Marketing Research Project Describe the steps involved in conducting a marketing research project LO 3
  14. 14. The Marketing Research Process 1 2 3 4 5 6 7 LO 3 Collect Data Specify Sampling Procedure Plan Design/ Primary Data Define Problem Analyze Data Prepare/ Present Report Follow Up
  15. 15. Sources of Secondary Data LO 3 Government Agencies Trade and Industry Associations Business Periodicals News Media Internal Corporate Information
  16. 16. Advantages of Secondary Data <ul><li>Saves time and money if on target </li></ul><ul><li>Aids in determining direction for primary data collection </li></ul><ul><li>Pinpoints the kinds of people to approach </li></ul><ul><li>Serves as a basis of comparison for other data </li></ul>LO 3
  17. 17. Disadvantages of Secondary Data <ul><li>May not give adequate detailed information </li></ul><ul><li>May not be on target with the research problem </li></ul><ul><li>Quality and accuracy of data may pose a problem </li></ul>LO 3
  18. 18. The New Age of Secondary Information: The Internet LO 3 1 2 3 4 5 Analyze your topic Test run a word or phrase in a search engine Learn as you go and vary your approach Don’t bog down in strategy that doesn’t work Return to earlier steps better informed
  19. 19. Marketing Research Aggregators <ul><li>Provide small- to medium-sized companies with information they could not afford to research on their own </li></ul><ul><li>Increases the revenue generated by large, expensive reports by slicing and repackaging them </li></ul> LO 3
  20. 20. Planning the Research Design LO 3 Which research questions must be answered? How and when will data be gathered? How will the data be analyzed? ?
  21. 21. Primary Data <ul><li>Information collected for the first time. Used for solving the particular problem under investigation. </li></ul><ul><li>Advantages: </li></ul><ul><li>Answers a specific research question </li></ul><ul><li>Data are current </li></ul><ul><li>Source of data is known </li></ul><ul><li>Secrecy can be maintained </li></ul>LO 3
  22. 22. Disadvantages of Primary Data <ul><li>Expensive </li></ul><ul><li>“ Piggybacking” may confuse respondents </li></ul><ul><li>Quality declines if interviews are lengthy </li></ul><ul><li>Reluctance to participate in lengthy interviews </li></ul>Disadvantages are usually offset by the advantages of primary data. LO 3
  23. 23. Survey Research Survey Research LO 3 The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes.
  24. 24. Forms of Survey Research LO 3 Focus Groups Executive Interviews Mail Surveys Telephone Interviews Mall Intercept Interviews In-Home Interviews
  25. 25. Questionnaire Design LO 3 Open-Ended Question Closed-Ended Question Scaled- Response Question 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. A closed-ended question designed to measure the intensity of a respondent’s answer.
  26. 26. Questionnaire Design Beyond the Book NOTE: Supplemental content – not in book. LO 3 On the other hand, unless the researcher designs the closed-ended question very carefully, an important choice may be omitted. Closed-ended and scaled-response questions are easier to tabulate than open-ended questions because response choices are fixed.
  27. 27. Questionnaire Design LO 3 Clear and concise No ambiguous language Unbiased Reasonable terminology Only one question Online
  28. 28. Observation Research Observation Research LO 3 <ul><li>A research method that relies on three types of observation: </li></ul><ul><li>people watching people </li></ul><ul><li>people watching an activity </li></ul><ul><li>machines watching people </li></ul>
  29. 29. Observational Situations LO 3 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
  30. 30. Ethnographic Research Ethnographic Research LO 3 The study of human behavior in its natural context; involves observation of behavior and physical setting.
  31. 31. Virtual Shopping <ul><li>Allows customers to “shop” with realistic complexity and variety </li></ul><ul><li>Tests can be altered quickly </li></ul><ul><li>Computer automatically collects data </li></ul>Virtual Grocery Store LO 3
  32. 32. Sampling Procedure LO 3 Universe Sample Probability Samples Non-Probability Samples
  33. 33. Types of Samples LO 3 Probability Samples Simple Random Sample Stratified Sample Cluster Sample Systematic Sample Non-Probability Samples Convenience Sample Judgment Sample Quota Sample Snowball Sample
  34. 34. Probability Samples Probability Sample A sample in which every element in the population has a known statistical likelihood of being selected. Random Sample A sample arranged so that every element of the population has an equal chance of being selected. LO 3
  35. 35. Nonprobability Samples 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. LO 3
  36. 36. Types of Errors LO 3 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.
  37. 37. Collecting the Data <ul><li>Focus group facilities </li></ul><ul><li>Mall intercept locations </li></ul><ul><li>Test product storage </li></ul><ul><li>Kitchen facilities </li></ul><ul><li>Retail audits </li></ul>Field Service Firms provide: LO 3
  38. 38. Analyzing the Data Cross- Tabulation LO 3 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.
  39. 39. Preparing and Presenting the Report <ul><li>Concise statement of the research objectives </li></ul><ul><li>Explanation of research design </li></ul><ul><li>Summary of major findings </li></ul><ul><li>Conclusion with recommendations </li></ul>LO 3
  40. 40. Following Up <ul><li>Were the recommendations followed? </li></ul><ul><li>Was sufficient decision-making information included in the report? </li></ul><ul><li>What could have been done to make the report more useful to management? </li></ul>LO 3
  41. 41. The Profound Impact of the Internet on Marketing Research Discuss the profound impact of the Internet on marketing research LO 4
  42. 42. Impact of the Internet <ul><li>Allows better and faster decision making </li></ul><ul><li>Improves ability to respond quickly to customer needs and market shifts </li></ul><ul><li>Makes follow-up studies and tracking research easier </li></ul><ul><li>Slashes labor- and time-intensive research activities and costs </li></ul>LO 4
  43. 43. Advantages of Internet Surveys LO 4 Contact with the hard-to-reach Improved respondent participation Personalized questions and data Reduced costs Rapid development, Real-time reporting
  44. 44. Uses of the Internet by Marketing Researchers LO 4 Other types of marketing research Conduct focus groups Administer surveys Online
  45. 45. Methods of Collecting Online Surveys <ul><li>Web Survey Systems </li></ul><ul><li>Survey Design and Web Hosting Sites </li></ul><ul><li>Online Panel Providers </li></ul>LO 4
  46. 46. Process for Online Focus Groups <ul><li>Build a database of respondents via Web site screening questionnaire </li></ul><ul><li>Identify qualified individuals via e-mail </li></ul><ul><li>Develop a discussion guide </li></ul><ul><li>Moderator runs group by typing in questions online for all to see </li></ul><ul><li>Environment is similar to a chat room </li></ul><ul><li>Firm captures the complete text of the focus group </li></ul>LO 4
  47. 47. Types of Online Focus Groups Real-time online focus groups Time-extended online focus groups LO 4
  48. 48. Advantages of Online Focus Groups <ul><li>Speed </li></ul><ul><li>Cost-effectiveness </li></ul><ul><li>Broad geographic scope </li></ul><ul><li>Accessibility </li></ul><ul><li>Honesty </li></ul>LO 4
  49. 49. Web Community Research <ul><li>A carefully selected group of consumers who agree to participate in an ongoing dialogue with a particular corporation. </li></ul><ul><ul><li>Web communities: </li></ul></ul><ul><ul><li>Engage customers </li></ul></ul><ul><ul><li>Achieve customer-derived innovations </li></ul></ul><ul><ul><li>Establish brand advocates </li></ul></ul><ul><ul><li>Offer real-time results </li></ul></ul>LO 4
  50. 50. Role of Blogs in Marketing Research <ul><li>Refined technologies allow companies to mine data available in Internet blogs. </li></ul><ul><li>Companies can identify the most influential bloggers and learn exactly what they are saying (and how they are saying it). </li></ul>LO 4
  51. 51. Other Uses of the Internet by Marketing Researchers LO 4 Viewing of presentations of marketing research surveys Publication and distribution of reports Data management and online analysis Collaboration between client and research supplier Distribution of requests for proposals (RFPs) and proposals
  52. 52. Scanner-Based Research Discuss the growing importance of scanner-based research LO 5
  53. 53. 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. LO 5 BehaviorScan InfoScan Panel information from Specific groups of people, enables researchers to manipulate variables and see real results Aggregate consumer information on all bar-coded products
  54. 54. Scanner-Based Research <ul><li>BehaviorScan </li></ul><ul><li>With such a measure of household purchasing, it is possible to manipulate marketing variables, such as television advertising or consumer promotions, or to introduce a new product and analyze real changes in consumer buying behavior. </li></ul><ul><li>InfoScan </li></ul><ul><li>Retail sales, detailed consumer purchasing information (including measurement of store loyalty and total grocery basket expenditures), and promotional activity by manufacturers and retailers are monitored and evaluated for all bar-coded products. </li></ul><ul><li>Data are collected weekly from more than 34,000 supermarkets, drugstores, and mass merchandisers. </li></ul>LO 5
  55. 55. When Should Marketing Research Be Conducted? Explain when marketing research should be conducted LO 6
  56. 56. When Should Marketing Research Be Conducted? <ul><li>Where there is a high level of uncertainty </li></ul><ul><li>When value of research information exceeds the cost of generating the information </li></ul>LO 6
  57. 57. Competitive Intelligence Explain the concept of competitive intelligence LO 7
  58. 58. Competitive Intelligence Competitive Intelligence LO 7 Online An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors.
  59. 59. Sources of Competitive Intelligence LO 7 Internet Company Salespeople Experts CI Consultants Government Agencies UCC Filings Suppliers Periodicals Yellow Pages Trade Shows