MKTG
Lamb, Hair, McDaniel
2007-2008
8
CHAPTER
Decision
Support
Designed by
Prepared
by
Systems
and
Amy McGuire, B-books, Ltd.
Deborah Baker, Texas Christian University
Marketing
Chapter 8
Copyright ©2008 by South-Western, a division of Thomson Learning. Research
All rights reserved
1
Learning
Outcomes
LO1
Explain the concept and purpose of a
marketing decision support system
LO2
Define marketing research and explain its
importance to marketing decision making
LO3
Describe the steps involved in conducting
a marketing research project
Chapter 8
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2
Learning
Outcomes
LO4
Discuss the profound impact of
the Internet on marketing research
LO5
Discuss the growing importance of
scanner-based research
LO6
Explain the concept of competitive
intelligence
Chapter 8
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3
LO1
Marketing Decision
Support Systems
Explain the concept
and purpose of a
marketing decision
support system
Chapter 8
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4
Marketing Decision Support Systems
Decision
Support
Systems
An interactive, flexible
computerized information
system that enables
managers to obtain and
manipulate information as
they are making decisions.
LO1
Chapter 8
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5
DSS System Characteristics
Interactive
Flexible
Discovery-Oriented
LO1
Chapter 8
Accessible
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6
DSS
§ http://www.fivethirtyeight.com/
Chapter 8
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7
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.
LO1
Chapter 8
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8
Biz Flix
LO1
Chapter 8
Apollo 13
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9
LO1
REVIEW LEARNING
OUTCOME
Marketing Decision Support Systems
Chapter 8
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10
LO2
The Role of Marketing Research
Define marketing
research and
explain its
importance to
marketing decision
making
Chapter 8
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11
The Role of Marketing Research
Marketing
Research
The process of planning,
collecting, and analyzing
data relevant to a
marketing decision.
LO2
Chapter 8
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12
Marketing Research Studies
LO2
Chapter 8
Products
Uses
Advertising
Awareness
Prices
Familiarity
Packages
New concepts
Names and Logos
Traffic patterns
Services
Wants
Buying habits
Needs
Colors
Politics
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13
The Role of Marketing Research
Descriptive
u Gathering and presenting
factual statements
Diagnostic
u Explaining data
Predictive
u “What if?”
LO2
Chapter 8
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14
LO2 Management Uses of
Beyond
the Book
Marketing Research
u
u
u
u
u
Improve the quality of decision making
Trace problems
Focus on keeping existing customers
Understand the marketplace
Alert them to marketplace
trends
u Gauge the value of goods
and services, and the level
of customer satisfaction
NOTE: Supplemental content – not in book.
Chapter 8
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15
LO2
REVIEW LEARNING
OUTCOME
Marketing Research and Its Importance
Why marketing research?
Chapter 8
þ
Improve quality of
decision making
þ
Trace problems
þ
Focus on keeping
existing customers
þ
Understand changes in
marketplace
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16
LO3
Steps in a Marketing
Research Project
Describe the
steps involved
in conducting
a marketing
research project
Chapter 8
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17
The Marketing
Research Process
LO3
1
Define
Problem
2
Plan Design/
Primary Data
3
Specify
Sampling
Procedure
5
6 Prepare/
4
Collect
Data
Analyze
Data
Present
Report
7
Follow Up
Chapter 8
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18
LO3 Marketing Research
Chapter 8
Marketing
Research
Problem
Determining what information is needed
and how that information can be
obtained efficiently and effectively.
Marketing
Research
Objective
The specific information needed
to solve a marketing research problem;
the objective should provide insightful
decision-making information.
Management
Decision
Problem
A broad-based problem that
requires marketing research in order
for managers to take proper actions.
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19
LO3 Secondary Data
Secondary
Data
Data previously
collected for any
purpose other than the
one at hand.
Chapter 8
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20
LO3 Sources of Secondary Data
Internal Corporate Information
Government Agencies
Trade and Industry Associations
Business Periodicals
News Media
http://www.coca-colastore.com
Online
Chapter 8
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21
LO3 Advantages of Secondary Data
u Saves time and money
if on target
u Aids in determining
direction for primary
data collection
u Pinpoints the kinds of
people to approach
u Serves as a basis of
comparison
for other data
Chapter 8
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22
LO3 Disadvantages of Secondary Data
u May not give adequate
detailed information
u May not be on target
with the research
problem
u Quality and accuracy
of data may pose a
problem
Chapter 8
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23
LO3
Chapter 8
The New Age of Secondary Information: The
Internet
1
Analyze your topic
2
Test run a word or phrase in a search engine
3
Learn as you go and vary your approach
4
Don’t bog down in strategy that doesn’t work
5
Go back to earlier steps better informed
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24
LO3 Planning the Research Design
Which research
questions
must be answered?
?
How and when
will data be
gathered?
How will
the data
be analyzed?
Chapter 8
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25
LO3 Primary Data
Primary
Data
Chapter 8
Information collected for
the first time. Can be used
for solving the particular
problem under
investigation.
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26
LO3 Advantages of Primary Data
u Answers a
specific research
question
u Data are current
u Source of data is
known
u Secrecy can be
maintained
Chapter 8
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27
LO3 Disadvantages of Primary Data
u Expensive
u “Piggybacking”
may confuse
respondents
u Quality declines
if interviews are
lengthy
u Reluctance to
participate in
lengthy
interviews
Chapter 8
Disadvantages
are usually
offset by the
advantages of
primary data.
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28
LO3 Survey Research
Survey Research
The most popular
technique for gathering
primary data in which a
researcher interacts with
people to obtain facts,
opinions, and attitudes.
Chapter 8
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29
LO3 Forms of Survey Research
Chapter 8
In-Home Interviews
Mail Surveys
Mall Intercept Interviews
Executive Interviews
Telephone Interviews
Focus Groups
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30
LO3 Forms of Survey Research
Mall Intercept
Interview
Executive Interview
Chapter 8
Survey research method that
involves interviewing people
in the common areas of
shopping malls.
A type of survey that involves
interviewing businesspeople
at their offices concerning
industrial products or services.
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31
LO3 Forms of Survey Research
Focus Groups
Seven to ten people
who participate in a
group discussion led
by a moderator.
Chapter 8
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32
LO3 Questionnaire Design
Chapter 8
Open-Ended
Question
An interview question that
encourages an answer phrased in
respondent’s own words.
Closed-Ended
Question
An interview question that asks
the respondent to make a selection
from a limited list of responses.
ScaledResponse
Question
A closed-ended question
designed to measure the intensity
of a respondent’s answer.
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33
LO3 Questionnaire Design
Clear and concise
No ambiguous language
Only one question
Unbiased
Reasonable terminology
http://www.createsurvey.com
Online
Chapter 8
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34
LO3 Observation Research
Observation
Research
A research method that relies
on three types of observation:
people watching people
Ø people watching an activity
Ø machines watching people
Ø
Chapter 8
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35
LO3 Observational Situations
Situation
Example
People
watching
people
People
watching
phenomena
Machines
watching
people
Machines
watching
phenomena
Mystery
shoppers in a
supermarket
Observer
at an
intersection
counting
traffic
Video
cameras
recording
behavior
Trafficcounting
machine
monitoring
traffic flow
http://www.bmiltd.com
Online
Chapter 8
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36
LO3 Ethnographic Research
Ethnographic
Research
The study of human
behavior
in its natural context;
involves
observation of behavior and
physical setting.
Chapter 8
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37
LO3 The Sampling Procedure
Chapter 8
Sample
A subset from a large
population.
Universe
The population from which
a sample will be drawn.
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38
LO3 Sampling Procedure
Universe
Sample
Probability
Samples
NonProbability
Samples
Chapter 8
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39
LO3 Types of Samples
Chapter 8
Probability
Samples
Non-Probability
Samples
Simple Random
Sample
Convenience
Sample
Stratified
Sample
Judgment
Sample
Cluster
Sample
Quota
Sample
Systematic
Sample
Snowball
Sample
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40
LO3 Probability Samples
Chapter 8
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.
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41
LO3 Nonprobability Samples
Chapter 8
Nonprobability
Sample
Any sample in which little or
no attempt is made to get a
representative cross-section
of the population.
Convenience
Sample
A form of nonprobability sample
using respondents who are
convenient or readily
accessible to the researcher.
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42
LO3 Types of Errors
Chapter 8
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.
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43
Errors
http://www.huffingtonpost.com/
Chapter 8
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44
LO3 Field Service Firms
Provide:
u Focus group facilities
u Mall intercept
locations
u Test product storage
u Kitchen facilities
u Retail audits
Chapter 8
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45
LO3 Analyzing the Data
CrossTabulation
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.
Chapter 8
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46
LO3
Chapter 8
Preparing and Presenting
the Report
u
Concise statement of the research
objectives
u
Explanation of research design
u
Summary of major findings
u
Conclusion with recommendations
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47
LO3 Following Up
Chapter 8
u
Were the recommendations
followed?
u
Was sufficient decision-making
information included in the report?
u
What could have been done to
make the report more useful to
management?
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48
LO3
REVIEW
LEARNING
OUTCOME
Steps in a
Marketing
Research
Project
Chapter 8
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49
LO4
Impact of the Internet on
Marketing Research
Discuss the profound
impact of the Internet
on marketing
research
Chapter 8
Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved
50
Impact of the Internet
u
u
u
u
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
Chapter 8
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51
Advantages of Internet Surveys
Rapid development,
Real-time reporting
Reduced costs
Personalized questions
and data
Improved respondent
participation
LO4
Chapter 8
Contact with the
hard-to-reach
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52
Uses of the Internet by
Marketing Researchers
Administer surveys
Conduct focus groups
Other types of marketing research
LO4
http://www.greenfieldonline.com
Online
Chapter 8
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53
Internet Samples
Unrestricted A survey in which anyone with
Internet
a computer and modem can fill
Sample
out the questionnaire.
LO4
Chapter 8
Screened
Internet
Sample
An Internet sample with
quotas based on desired
sample characteristics.
Recruited
Internet
Sample
A sample in which
respondents
are prerecruited and must
qualify to participate.
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54
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
LO4
Chapter 8
6. Firm captures the complete text of the
focus group
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55
Types of Online Focus Groups
Real-time online focus groups
Time-extended online focus groups
LO4
Chapter 8
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56
Advantages of Online
Focus Groups
u
u
u
u
u
Speed
Cost-effectiveness
Broad geographic scope
Accessibility
Honesty
LO4
Chapter 8
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57
Role of Blogs in
Marketing Research
u
u
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
Chapter 8
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58
Other Uses of the Internet by
Marketing Researchers
Distribution of requests for
proposals (RFPs) and proposals
Collaboration between client
and research supplier
Data management and
online analysis
Publication and distribution
of reports
LO4
Chapter 8
Viewing of presentations of
marketing research surveys
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59
LO4
REVIEW LEARNING
OUTCOME
Impact of the Internet on Marketing Research
Chapter 8
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60
LO5
Scanner-Based Research
Discuss the growing
importance of
scanner-based
research
Chapter 8
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61
Scanner-Based Research
A system for gathering
Scanner-based
Research
LO5
Chapter 8
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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62
When Should Marketing
Research Be Conducted?
u
Where there is a high
level of uncertainty
u
When value of research
information exceeds
the cost of generating
the information
LO5
Chapter 8
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63
LO5
REVIEW LEARNING
OUTCOME
Scanner-Based Research
BehaviorScan
Panel information from
Specific groups of people,
enables researchers to
manipulate variables and see
real results
Chapter 8
InfoScan
Aggregate consumer
information on all
bar-coded products
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64
LO6
Competitive Intelligence
Explain the concept
of competitive
intelligence
Chapter 8
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65
LO6 Competitive Intelligence
Competitive
Intelligence
An intelligence system that
helps managers assess their
competition and vendors in
order to become more
efficient and effective
competitors.
http://www.scip.org
Online
Chapter 8
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66
LO6 Sources of Competitive Intelligence
Chapter 8
Internet
UCC Filings
Company Salespeople
Suppliers
Experts
Periodicals
CI Consultants
Yellow Pages
Government Agencies
Trade Shows
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67
LO6
REVIEW LEARNING
OUTCOME
Competitive Intelligence
CI
Part of a sound
marketing strategy
Helps companies
respond to competitive
threats
Helps reduce
unnecessary costs
Chapter 8
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68