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Key Concepts

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What is MDSS? Marketing 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.

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DSS System Characteristics Interactive Flexible Discovery-Oriented Accessible

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Marketing Decision Support Systems Database Marketing 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.

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Marketing Decision Support Systems

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What is Marketing Research and Why it is Important Define marketing research and explain its importance to marketing decision making

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The Role of Marketing Research Marketing Research The process of PLANNING, COLLECTING, and ANALYZING data relevant to a marketing decision.

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Marketing Research Studies: What issues are often investigated? Products Advertising Prices Packages Names and Logos Services Buying habits Colors Uses Awareness Familiarity New concepts Traffic patterns Wants Needs Politics

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The Role of Marketing Research Diagnostic Predictive Descriptive Gathering and presenting factual statements Explaining data What if?

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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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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

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

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Marketing Research Marketing Research Problem Marketing Research Problem Marketing Research Objective Marketing Research Objective Management Decision Problem Management Decision Problem Determining WHAT INFO IS NEEDED and HOW that information can be obtained efficiently and effectively. Determining WHAT INFO IS NEEDED and HOW that information can be obtained efficiently and effectively. The specific INFO needed to SOLVE A MARKETING RESEARCH PROBLEM; the objective should provide insightful decision-making information. The specific INFO needed to SOLVE A MARKETING RESEARCH PROBLEM; the objective should provide insightful decision-making information. A broad-based problem that requires marketing research in order for managers to take proper actions. A broad-based problem that requires marketing research in order for managers to take proper actions.

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Secondary Data Data PREVIOUSLY COLLECTED for any purpose other than the one at hand. Secondary Data

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SOURCES of Secondary Data Where the info can be accessed Government Agencies Trade and Industry Associations Business Periodicals News Media Internal 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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The New Age of Secondary Information: The Internet 1 1 2 2 3 3 4 4 5 5 Analyze your topic Test run a word or phrase in a search engine Learn as you go and vary your approach Dont bog down in strategy that doesnt work Go back to earlier steps better informed

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Planning the Research Design Which research questions must be answered? How and when will data be gathered? How will the data be analyzed? ?

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Primary Data Information collected FOR THE FIRST TIME. Can be used for solving the particular problem under investigation.

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Advantages of Primary Data 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 D isadvantages 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 Research

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

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Forms of Survey Research Mall Intercept Interview Survey research method that involves INTERVIEWING PEOPLE in the common areas of SHOPPING MALLS. Executive Interview A type of survey that involves INTERVIEWING EXECUTIVES AT THE OFFICES concerning industrial products or services. A type of survey that involves INTERVIEWING EXECUTIVES AT THE OFFICES concerning industrial products or services.

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Forms of Survey Research Seven to ten people who participate in a GROUP DISCUSSION led by a moderator. Focus Groups

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Questionnaire Design How questions are formatted Open-Ended Question Open-Ended Question Closed-Ended Question Closed-Ended Question Scaled- Response Question Scaled- Response Question An interview question that encourages an answer phrased in RESPONDENTS 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 respondents answer. A closed-ended question designed to MEASURE THE INTENSITY of a respondents answer.

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Questionnaire Design Important guidelines Clear and concise No ambiguous language Unbiased Reasonable terminology Only one question

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Observation Research A research method that relies on three types of OBSERVATIONS: people watching people people watching an activity machines watching people Observation Research

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Observational Situations 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

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Ethnographic Research The study of human behavior in its NATURAL CONTEXT; involves observation of behavior and physical setting. Ethnographic Research

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

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Sampling ProcedureUniverse Sample Probability Samples Non-Probability Samples

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Types of Samples Probability Samples Simple Random Sample Stratified Sample Cluster Sample Systematic Sample Non-Probability Samples Convenience Sample Judgment Sample Quota Sample Snowball Sample

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Probability Samples Probability Sample Probability Sample 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.

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Nonprobability Samples Nonprobability Sample Nonprobability Sample 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 non-probability sample using respondents who are CONVENIENT or READILY ACCESSIBLE to the researcher. A form of non-probability sample using respondents who are CONVENIENT or READILY ACCESSIBLE to the researcher.

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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. 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.

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

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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

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Preparing and Presenting the Report What the report should contain Concise statement of the research objectives Explanation of research design Summary of major findings Conclusion with recommendations

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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?

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Steps in a Marketing Research Project

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The Internet & Marketing Research Explore the the profound impact of the Internet on marketing 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 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 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 Conduct focus groups Administer surveys

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LO 4 Internet Samples Unrestricted Internet Sample Unrestricted Internet Sample Screened Internet Sample Screened Internet Sample Recruited Internet Sample Recruited Internet 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. A sample in which respondents are PRE-RECRUITED and must QUALIFY to participate. A sample in which respondents are PRE-RECRUITED and must QUALIFY to participate.

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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

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Types of Online Focus Groups Real-time online focus groups Time-extended online focus groups

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Advantages of Online Focus Groups Speed Cost-effectiveness Broad geographic scope Accessibility Honesty

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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).

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Other Uses of the Internet by Marketing Researchers Viewing of presentations of marketing research surveys Viewing of presentations of marketing research surveys Publication and distribution of reports Publication and distribution of reports Data management and online analysis Data management and online analysis Collaboration between client and research supplier Distribution of requests for proposals (RFPs) and proposals Distribution of requests for proposals (RFPs) and proposals

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Impact of the Internet on Marketing Research

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Scanner-Based Research Explore the growing importance of scanner-based research

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Scanner-Based Research 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. BehaviorScan InfoScan

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

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

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