Key Concepts
What is MDSS?
Marketing
Decision
Support
Systems
An interactive, flexible
computerized information
system that enables managers
to obtain and manipulate
information as they are making
decisions.
DSS System Characteristics
Interactive
Flexible
Discovery-Oriented
Accessible
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.
Marketing Decision Support Systems
What is Marketing Research and Why it is
Important
 Define marketing research and explain its
importance to marketing decision making
The Role of Marketing Research
Marketing
Research
The process of PLANNING,
COLLECTING, and
ANALYZING data relevant to
a marketing decision.
Marketing Research Studies: What
issues are often investigated?
Products
Uses
Advertising
Awareness
Prices
Familiarity
Packages
New concepts
Names and Logos
Traffic patterns
Services
Wants
Buying habits
Needs
Colors
Politics
The Role of Marketing Research
Descriptive
 Gathering and presenting
factual statements
Diagnostic
 Explaining data
Predictive
 “What if?”
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
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
The Marketing
Research Process
1
Define
Problem
2
Plan Design/
Primary Data
3
Specify
Sampling
Procedure
Collect
Data
5
6 Prepare/
7
Follow Up
Present
Report
4
Analyze
Data
Marketing Research
Marketing
Research
Problem
Determining WHAT INFO IS NEEDED and
HOW that information can be
obtained efficiently and effectively.
Marketing
Research
Objective
The specific INFO 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.
Secondary Data
Secondary
Data
Data PREVIOUSLY
COLLECTED for any
purpose other than the
one at hand.
SOURCES of Secondary Data
Where the info can be accessed
Internal Corporate Information
Government Agencies
Trade and Industry Associations
Business Periodicals
News Media
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
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
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
Planning the Research Design
Which research
questions
must be answered?
?
How and when
will data be
gathered?
How will
the data
be analyzed?
Primary Data
Primary
Data
Information collected FOR
THE FIRST TIME. Can be
used for solving the
particular problem under
investigation.
Advantages of Primary Data
 Answers a specific
research question
 Data are current
 Source of data is
known
 Secrecy can be
maintained
Disadvantages of Primary Data
Disadvantages are usually offset by the advantages of
primary data.
 Expensive
 “Piggybacking” may
confuse respondents
 Quality declines if
interviews are
lengthy
 Reluctance to
participate in
lengthy interviews
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.
Forms of Survey Research
In-Home Interviews
Mail Surveys
Mall Intercept Interviews
Executive Interviews
Telephone Interviews
Focus Groups
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.
Forms of Survey Research
Focus Groups
Seven to ten people
who participate in a
GROUP DISCUSSION
led by a moderator.
Questionnaire Design
How questions are formatted
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.
Questionnaire Design
Important guidelines
Clear and concise
No ambiguous language
Only one question
Unbiased
Reasonable terminology
Observation Research
Observation
Research
A research method that relies on
three types of OBSERVATIONS:
people watching people
 people watching an activity
 machines watching people

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
Ethnographic Research
Ethnographic
Research
The study of human behavior
in its NATURAL CONTEXT;
involves observation of
behavior and physical setting.
The Sampling Procedure
Sample
A SUBSET from a large
population.
Universe
The POPULATION from which
a sample will be drawn.
Sampling Procedure
Universe
Sample
Probability
Samples
Non-Probability
Samples
Types of Samples
Probability
Samples
Non-Probability
Samples
Simple Random
Sample
Convenience
Sample
Stratified
Sample
Judgment
Sample
Cluster
Sample
Quota
Sample
Systematic
Sample
Snowball
Sample
Probability Samples
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.
Nonprobability Samples
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 non-probability sample
using respondents who are
CONVENIENT or READILY
ACCESSIBLE to the researcher.
Types of Errors
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.
Field Service Firms
Provide:





Focus group facilities
Mall intercept locations
Test product storage
Kitchen facilities
Retail audits
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.
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
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?
Steps in a
Marketing
Research Project
The Internet &
Marketing Research
 Explore the the profound impact of the
Internet on marketing research
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
Advantages of Internet Surveys
Rapid development,
Real-time reporting
Reduced costs
Personalized questions
and data
Improved respondent
participation
Contact with the
hard-to-reach
Uses of the Internet by
Marketing Researchers
Administer surveys
Conduct focus groups
Other types of marketing research
Internet Samples
LO4
Unrestricted
Internet
Sample
A survey in which ANYONE with
a computer and modem can fill out
the questionnaire.
Screened
Internet
Sample
An Internet sample with QUOTAS
based on desired sample
characteristics.
Recruited
Internet
Sample
A sample in which respondents
are PRE-RECRUITED and must
QUALIFY to participate.
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
Types of Online Focus Groups
Real-time online focus groups
Time-extended online focus groups
Advantages of Online
Focus Groups
 Speed
 Cost-effectiveness
 Broad geographic scope
 Accessibility
 Honesty
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).
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
Viewing of presentations of
marketing research surveys
Impact of the Internet on Marketing Research
Scanner-Based Research
 Explore the growing importance of
scanner-based research
Scanner-Based Research
A system for gathering information
Scanner-based
Research
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
Competitive Intelligence
Competitive
Intelligence
An intelligence system that
helps managers assess their
competition and vendors in
order to become more efficient
and effective competitors.
Sources of Competitive
Intelligence
Internet
UCC Filings
Company Salespeople
Suppliers
Experts
Periodicals
CI Consultants
Yellow Pages
Government Agencies
Trade Shows