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Lamb, Hair, McDaniel
CHAPTER 9
Decision Support Systems and Marketing Research
2010-2011
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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 OutcomesLearning Outcomes
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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 OutcomesLearning Outcomes
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Explain the concept and purpose of a
marketing decision support system
Marketing Decision Marketing Decision Support SystemsSupport Systems
LO1
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Marketing Decision Support Systems
An interactive, flexible computerized information system that
enables managers to obtain and manipulate information as
they are making decisions.
Characteristics:Interactive
Flexible
Discovery Oriented
Accessible
LO1
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Marketing DecisionSupport Systems
DatabaseMarketing
DatabaseMarketing
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.
LO1
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Define marketing research and
explain its importance to
marketing decision making
The Role ofThe Role ofMarketing ResearchMarketing Research
LO2
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The Role ofMarketing Research
MarketingResearch
MarketingResearch
The process of planning, collecting, and analyzing data relevant to a marketing decision.
LO2
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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
LO2
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The Role ofMarketing Research
Diagnostic
Predictive
Descriptive Gathering and presenting
factual statements
Explaining data
“What if?”
LO2
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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.
LO2
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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
LO2
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Describe the steps involved in conducting a marketing
research project
Steps in a Marketing Steps in a Marketing Research ProjectResearch Project
LO3
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The Marketing Research Process
CollectData
CollectData
SpecifySamplingProcedure
SpecifySamplingProcedure
Plan Design/Primary DataPlan Design/Primary Data
DefineProblemDefine
Problem
AnalyzeData
AnalyzeData
Prepare/PresentReport
Prepare/PresentReport
Follow UpFollow Up
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LO3
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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
LO3
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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
LO3
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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
LO3
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The New Age of Secondary Information: The Internet
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Analyze your topicAnalyze your topic
Test run a word or phrase in a search engineTest run a word or phrase in a search engine
Learn as you go and vary your approachLearn as you go and vary your approach
Don’t bog down in strategy that doesn’t workDon’t bog down in strategy that doesn’t work
Return to earlier steps better informedReturn to earlier steps better informed
LO3
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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/
LO3
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Planning theResearch Design
Which research questions
must be answered?
How and whenwill data be gathered?
How willthe data
be analyzed?
?
LO3
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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
LO3
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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.
LO3
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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
LO3
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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
LO3
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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.
LO3
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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/
LO3
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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
LO3
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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
LO3
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Ethnographic Research
Ethnographic Research
Ethnographic Research
The study of human behavior
in its natural context; involves
observation of behavior and
physical setting.
LO3
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Virtual Shopping
• Allows customers to “shop” with realistic complexity and variety
• Tests can be altered quickly
• Computer automatically collects data
Virtual Grocery Store
LO3
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Sampling Procedure
UniverseUniverse SampleSample
Probability Samples
Probability Samples
Non-Probability Samples
Non-Probability Samples
LO3
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Types of Samples
Probability Samples
Probability Samples
Simple Random Sample
Simple Random Sample
Stratified Sample
Stratified Sample
Cluster Sample
Cluster Sample
SystematicSample
SystematicSample
Non-Probability Samples
Non-Probability Samples
Convenience Sample
Convenience Sample
JudgmentSample
JudgmentSample
Quota SampleQuota Sample
SnowballSample
SnowballSample
LO3
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Probability Samples
ProbabilitySample
ProbabilitySample
A sample in which every element in the population has a known statistical likelihood of being
selected.
A sample in which every element in the population has a known statistical likelihood of being
selected.
Random Sample
Random Sample
A sample arranged so that every element of the population has an equal chance of being selected.
A sample arranged so that every element of the population has an equal chance of being selected.
LO3
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Nonprobability Samples
NonprobabilitySample
NonprobabilitySample
Convenience Sample
Convenience Sample
Any sample in which little or no attempt is made to get a
representative cross-section of the population.
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.
A form of nonprobability sample using respondents who are
convenient or readily accessible to the researcher.
LO3
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Types of Errors
Measurement Error
Measurement Error
Error when there is a difference between the information desired and the
information provided by research
Error when there is a difference between the information desired and the
information provided by research
Sampling Error
Sampling Error
Error when a sample somehow does not represent the target population.
Error when a sample somehow does not represent the target population.
Frame Error
Frame Error
Error when a sample drawn from a population differs from the
target population.
Error when a sample drawn from a population differs from the
target population.
Random Error
Random Error
Error because the selected sample is an imperfect representation of
the overall population.
Error because the selected sample is an imperfect representation of
the overall population.
LO3
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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:
LO3
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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.
Cross-Tabulation
Cross-Tabulation
LO3
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Preparing andPresenting the Report
Concise statement of the research objectives
Explanation of research design
Summary of major findings
Conclusion with recommendations
LO3
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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?
LO3
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Discuss the profound impact of the Internet
on marketing research
Impact of the Internet onImpact of the Internet onMarketing ResearchMarketing Research
LO4
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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
LO4
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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
LO4
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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
LO4
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Methods of Collecting Online Surveys
• Web Survey Systems
• Survey Design and Web Hosting Sites
• Online Panel Providers
LO4
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Process for Online Focus Groups
1. Build a database of respondents via Web site screening questionnaire
2. Identify qualified individuals via e-mail
3. Develop a discussion guide
4. Moderator runs group by typing in questions online for all to see
5. Environment is similar to a chat room
6. Firm captures the complete text of the focus group
LO4
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Types of OnlineFocus Groups
Real-time online focus groupsReal-time online focus groups
Time-extended online focus groupsTime-extended online focus groups
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Advantages of Online Focus Groups
SpeedCost-effectivenessBroad geographic
scopeAccessibilityHonesty
LO4
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Web Community Research
• A carefully selected group of consumers who agree to participate in an ongoing dialogue with a particular corporation.Web communities:– Engage customers– Achieve customer-derived innovations– Establish brand advocates– Offer real-time results
LO4
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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).
LO4
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Other Uses of the Internet byMarketing Researchers
Viewing of presentations ofmarketing research surveysViewing of presentations ofmarketing research surveys
Publication and distributionof reportsPublication and distributionof reports
Data management and online analysisData management and online analysis
Collaboration between client and research supplierCollaboration between client and research supplier
Distribution of requests for proposals (RFPs) and proposalsDistribution of requests for proposals (RFPs) and proposals
LO4
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Discuss the growing importance of scanner-based
research
Scanner-Based ResearchScanner-Based Research
LO5
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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
LO5
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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
Competitive IntelligenceCompetitive Intelligence
LO6
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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
LO5
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Explain the concept of competitive
intelligence
Competitive IntelligenceCompetitive Intelligence
LO6
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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
LO6
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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
LO6