lamb, hair, mcdaniel

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Lamb, Hair, McDaniel

CHAPTER 9

Decision Support Systems and Marketing Research

2010-2011

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There will be no questions on

Marketing Decision Support Systems

Marketing Decision Marketing Decision Support SystemsSupport Systems

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The Role ofMarketing Research

MarketingResearch

MarketingResearch

The process of planning, collecting, and analyzing data relevant to a marketing decision.

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MarketingResearch StudiesProductsProducts

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 ofMarketing Research

Diagnostic

Predictive

Descriptive Gathering and presenting

factual statements

Explaining data

“What if?”

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Beyond

the

Book

Management Uses of Marketing Research

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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Why marketing research? Improve quality of decision making

Trace problems

Focus on keeping existing customers

Understand changes in marketplace

The Importance of Marketing Research

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There will be no questions on this

topic

Steps in a Marketing Steps in a Marketing Research ProjectResearch Project

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Sources of Secondary Data

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

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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

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Marketing Research Aggregators

Provide small- to medium-sized companies with information they could not afford to research on their own

Increases the revenue generated by large, expensive reports by slicing and repackaging them

http://www.marketresearch.com/

http://www.aroq.com/

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Primary Data

Information collected for the first time. Used for solving the particular problem

under investigation.

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

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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

Disadvantages are usually offset by the advantages of primary data.

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Survey Research

The most popular technique for

gathering primary data in which

a researcher interacts with

people to obtain facts,

opinions, and attitudes.

Survey ResearchSurvey Research

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Forms of Survey Research

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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Questionnaire Design

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

Avocado 1 Olives (black/green) 6 Cheese (Monterey Jack/cheddar) 2 Onions (red/white) 7 Guacamole 3 Peppers (red/green) 8 Lettuce 4 Pimento 9 Mexican hot sauce 5 Sour cream 0

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.

Beyond

the

Book

NOTE: Supplemental content – not in book.LO3

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Questionnaire Design

Clear and conciseClear and concise

No ambiguous languageNo ambiguous language

UnbiasedUnbiased

Reasonable terminologyReasonable terminology

Only one questionOnly one question

Online

http://www.surveymonkey.com/

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Observation Research

A research method that relies on

three types of observation:

people watching people people watching an activity machines watching people

Observation Research

Observation Research

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Observational Situations

SituationPeople

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

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Virtual Shopping

• Allows customers to “shop” with realistic complexity and variety

• Tests can be altered quickly

• Computer automatically collects data

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Collecting the Data

Focus group facilities Mall intercept

locations Test product storage Kitchen facilities Retail audits

Field Service Firms provide:provide:

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Discuss the profound impact of the Internet

on marketing research

The Profound Impact of The Profound Impact of the Internet onthe Internet on

Marketing ResearchMarketing Research

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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

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Advantages ofInternet Surveys

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

Reduced costsReduced costs

Rapid development,Real-time reporting

Rapid development,Real-time reporting

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Uses of the Internet by Marketing Researchers

Other types of marketing research Other types of marketing research

Conduct focus groupsConduct focus groups

Administer surveysAdminister surveys

Online

http://www.greenfieldonline.com

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Methods of Collecting Online Surveys

• Web Survey Systems

• Survey Design and Web Hosting Sites

• Online Panel Providers

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Discuss the growing importance of scanner-based

research

Scanner-Based ResearchScanner-Based Research

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Scanner-Based ResearchA 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

Panel information fromSpecific groups of people,enables researchers to manipulate variables and seereal results

Aggregate consumerinformation on allbar-coded products

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Scanner-Based Research

BehaviorScanWith 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.

InfoScanRetail 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.

Data are collected weekly from more than 34,000 supermarkets, drugstores, and mass merchandisers.

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Explain when marketing research

should be conducted

When Should Marketing Research Be When Should Marketing Research Be Conducted?Conducted?

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When Should Marketing Research Be Conducted?

Where there is a high level of uncertainty

When value of research information exceeds the cost of generating the information

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There will be no questions on competitive intelligence

Competitive IntelligenceCompetitive Intelligence

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Competitive Intelligence

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

Competitive Intelligence

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Sources of Competitive Intelligence

InternetInternet

Company SalespeopleCompany Salespeople

ExpertsExperts

CI ConsultantsCI Consultants

Government AgenciesGovernment Agencies

UCC FilingsUCC Filings

SuppliersSuppliers

PeriodicalsPeriodicals

Yellow PagesYellow Pages

Trade ShowsTrade Shows

LO7