Chapter 8 Decision Support Systems Chapter 8 Decision Support Systems

and Marketing Researchand Marketing Research

DiagnosticDiagnostic

PredictivePredictive

DescriptiveDescriptive

Gathering and presenting factual statements

Explaining data

Attempting to estimate the results of a planned marketing decision

Roles of Marketing ResearchRoles of Marketing Research

The Marketing Research ProcessThe Marketing Research Process

CollectCollectDataData

CollectCollectDataData

SpecifySpecifySamplingSamplingProcedureProcedure

SpecifySpecifySamplingSamplingProcedureProcedure

Plan Design/Plan Design/Primary DataPrimary DataPlan Design/Plan Design/Primary DataPrimary Data

DefineDefineProblemProblemDefineDefine

ProblemProblem

AnalyzeAnalyzeDataData

AnalyzeAnalyzeDataData

Prepare/Prepare/PresentPresentReportReport

Prepare/Prepare/PresentPresentReportReport

Follow UpFollow UpFollow UpFollow Up

Sources of Secondary DataSources of Secondary Data

Government Agencies

Trade and Industry Associations

Marketing Research Firms

Commercial Publications

News Media

Internal Corporate Information

Advantages of Secondary DataAdvantages 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

Disadvantages of Secondary DataDisadvantages of Secondary Data

• May not be on target with the research problem

• Quality and accuracy of data may pose a problem

The New Age of The New Age of Secondary InformationSecondary Information

The InternetThe InternetThe InternetThe Internetwwwwww

• Search Enginesand Directories

• Sites of Interest toMarketing Researchers

• Discussion Groups

• Periodical, Newspaper, and Book Databases

Planning the Research DesignPlanning the Research Design

Which research Which research questions questions

must be answered?must be answered?

Which research Which research questions questions

must be answered?must be answered?

How and whenHow and whenwill data be will data be gathered?gathered?

How and whenHow and whenwill data be will data be gathered?gathered?

How willHow willthe datathe data

be analyzed?be analyzed?

How willHow willthe datathe data

be analyzed?be analyzed?

??

Advantages of Primary DataAdvantages of Primary Data

• Answers a specific research question

• Data are current

• Source of data is known

• Secrecy can be maintained

Disadvantages of Primary DataDisadvantages of Primary Data

• Expensive

• Quality declines if interviews are lengthy

• Reluctance to participate in lengthy interviews

Disadvantages are usually offset by the

advantages of primary data!

Disadvantages are usually offset by the

advantages of primary data!

Forms of Survey ResearchForms of Survey Research

Focus GroupsFocus Groups

Executive InterviewsExecutive Interviews

Mail SurveysMail Surveys

Telephone Interviews(Home and Central Location)

Telephone Interviews(Home and Central Location)

Mall Intercept InterviewsMall Intercept Interviews

In-Home InterviewsIn-Home Interviews

Advantages of Advantages of On-Line Focus GroupsOn-Line Focus Groups

• Speed

• Cost-effectiveness

• Broad geographic scope

• Accessibility

• Honesty

Questionnaire DesignQuestionnaire Design

Qualities Qualities of of

Good Good QuestionnairesQuestionnaires

Qualities Qualities of of

Good Good QuestionnairesQuestionnaires

Clear and ConciseClear and Concise

No Ambiguous LanguageNo Ambiguous Language

UnbiasedUnbiased

Reasonable TerminologyReasonable Terminology

Observation ResearchObservation Research

Mystery Shoppers

One-Way Mirrors

Types ofTypes ofObservationObservation

ResearchResearch

Types ofTypes ofObservationObservation

ResearchResearchAudits

Machines Machines WatchingWatching

PeoplePeople

Machines Machines WatchingWatching

PeoplePeople

People People Watching Watching

PeoplePeople

People People Watching Watching

PeoplePeople

People People Watching Watching an Activityan Activity

People People Watching Watching an Activityan Activity

Traffic Counters

Passive People Meter

Sampling ProcedureSampling Procedure

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.

Types of SamplesTypes of Samples

Probability Probability SamplesSamples

Probability Probability SamplesSamples

Simple Random Sample

Stratified Sample

Cluster Sample

SystematicSample

Non-Probability Non-Probability SamplesSamples

Non-Probability Non-Probability SamplesSamples

Convenience Sample

JudgmentSample

Quota Sample

SnowballSample

http://ebook.stat.ucla.edu/calculators/sampsize.phtml

Data Base MarketingData Base MarketingHave you ever…

•Filled out a coupon?•Warrantee card?

•Entered a sweepstakes?•Joined a ’Saver’s Club?

•Subscribed to a magazine?•Made a ‘public property’ purchase?

Registered at a website?

Congratulations….You are in several databases !!!

…for example...

CustomerCustomer Johnson & JohnsonJohnson & Johnson Eye Care Professional Eye Care Professional

1. Runs ad with1. Runs ad with response vehicleresponse vehicle

2. Sends direct mail kit2. Sends direct mail kit

3. Returns mail-3. Returns mail- 4. Reports customer4. Reports customer in cardin card interest interest

5. Sends mailing5. Sends mailing

6. Makes appointment6. Makes appointment

8. Mails discount8. Mails discount 7. Notifies of 7. Notifies of couponcoupon appointment appointment

9. Places order9. Places order

10. Sends follow-up trial offer10. Sends follow-up trial offer

Data Base Marketing Data Base Marketing (cont.)(cont.)

The Dillman ApproachThe Dillman Approach

Factors that affect response ratesFactors that affect response rates

•Rewards, Costs and Trust

The methodThe method

•Prenotification•Cover letter•Questionnaire•Follow-up

1. Maximize Rewards1. Maximize Rewards

Showing positive regard, giving appreciation, using a consulting approach, supporting respondent values, offering tangible rewards, and making the questionnaire interesting.

2. Minimize Costs2. Minimize Costs

Making the task appear brief, reducing the physical and mental effort, minimizing the chances for embarrassment, eliminating the implication of subordination, reducing any direct monetary expense.

Providing a token of appreciation in advance, identify with an organization that has legitimacy, building on other exchange relationship.

3. Establish Trust3. Establish Trust

Advantages of internet SurveysAdvantages of internet 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

Advantages ofAdvantages ofInternet SurveysInternet SurveysAdvantages ofAdvantages of

Internet SurveysInternet Surveys

Internet SamplesInternet Samples

UnrestrictedInternet Sample

UnrestrictedInternet Sample

ScreenedInternet Sample

ScreenedInternet Sample

RecruitedInternet Sample

RecruitedInternet Sample

A survey in which anyone with a computer and modem can fill out

the questionnaire.

A survey in which anyone with a computer and modem can fill out

the questionnaire.

An Internet sample with quotas based on desired sample

characteristics.

An Internet sample with quotas based on desired sample

characteristics.

A sample in which respondents are prerecruited and must

qualify to participate.

A sample in which respondents are prerecruited and must

qualify to participate.

Other Uses of the InternetOther Uses of the Internet

Other Internet Other Internet Uses Uses

by Marketing by Marketing ResearchersResearchers

Other Internet Other Internet Uses Uses

by Marketing by Marketing ResearchersResearchers

Viewing of presentations of marketing research surveysViewing of presentations of marketing research surveys

Publication and distributionof reports

Publication and distributionof reports

Data management and on-line analysis

Data management and on-line analysis

Collaboration in the management of a research project

Collaboration in the management of a research project

Distribution of requests for proposals

Distribution of requests for proposals

Advantages of Advantages of Competitive IntelligenceCompetitive Intelligence

• Predict changes in business relationships

• Guard against threats

• Forecast a competitor’s strategy

• Develop a successful marketing plan

Sources of Sources of Competitive IntelligenceCompetitive Intelligence

InternetInternet

Company PersonnelCompany Personnel

ExpertsExperts

CI ConsultantsCI Consultants

Government AgenciesGovernment Agencies

UCC FilingsUCC Filings

SuppliersSuppliers

Newspapers/PeriodicalsNewspapers/Periodicals

Yellow PagesYellow Pages

Trade ShowsTrade Shows