Lamb, Hair, McDaniel 2012-2013 CHAPTER 9 Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 © iStockphoto.com/Zonecreative Decision Support Systems and Marketing Research Learning Outcomes 1 Explain the concept and purpose of a marketing decision support system 2 Define marketing research and explain its importance to marketing decision making Describe the steps involved in conducting a marketing research project 3 2 Learning Outcomes 4 Discuss the profound impact of the Internet on marketing research 5 Discuss the growing importance of scannerbased research 6 Explain when marketing research should be conducted 7 Explain the concept of competitive intelligence 3 Marketing Decision Support Systems Explain the concept and purpose of a marketing decision support system 1 4 Marketing Decision Support Systems Interactive, flexible computerized information systems that enable managers to obtain and manipulate information as they make decisions Characteristics of a true DSS: 5 Interactive Flexible Discovery Oriented Accessible 1 Marketing Decision Support Systems Database Marketing 6 The creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns. 1 The Role of Marketing Research Define marketing research and explain its importance to marketing decision making 2 7 The Role of Marketing Research Marketing Research The process of planning, collecting, and analyzing data relevant to a marketing decision. 8 2 Three Roles of Marketing Research 9 1-Descriptive Gathering and presenting factual statements 2-Diagnostic Explaining data 3-Predictive Address “what if” questions 2 Market Research vs. Marketing Research Market Research: Global information Marketing Research: In depth information on your customers and your products Products Goods Services Ideas http://marketing-planet.com/surveys/market-research-versus-marketing-research.html 10 Steps in a Marketing Research Project Describe the steps involved in conducting a marketing research project 3 11 Exhibit 9.1 1 The Marketing Research Process Define Problem 2 Plan Design/ Primary Data 3 Specify Sampling Procedure 5 6 Prepare/ 4 Collect Data Analyze Data Present Report 7 Follow Up 12 © Cengage Learning Inc. 2013. All Rights Reserved. The Marketing Research Project 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 be to provide insightful decisionmaking information. Management Decision Problem 13 A broad-based problem that uses marketing research in order for managers to take proper actions. 3 Sources of Secondary Data Internal Corporate Information Government Agencies Trade and Industry Associations Business Periodicals News Media-Internet 14 3 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 comparison for other data Internet has aided in data collection 15 3 Disadvantages of Secondary Data May not give adequate detailed information May not be on target with the research problem Quality/accuracy of data may be a problem 16 3 Marketing Research Aggregators Databases: bigger, more comprehensive, easier to search Aggregators: acquire, catalog, reformat, segment, organize and resell reports published by marketing research firms Some major aggregators are: mindbranch.com usadata.com Salesman’s guide 17 3 Planning the Research Design Which research questions must be answered? ? How and when will data be gathered? How will the data be analyzed? 18 3 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 Disadvantages: Primary data can be very expensive 19 3 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. 20 3 Forms of Survey Research 21 In-Home Interviews Mail Surveys Mall Intercept Interviews Executive Interviews Telephone Interviews Focus Groups 3 Questionnaire Design 22 Open-Ended Question An interview question that encourages an answer phrased in the 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. 3 Questionnaire Design Clear and concise No ambiguous language Avoid leading questions Avoid two questions in one 23 3 Observation Research Observation Research A research method that relies on four types of observation: people watching people people watching an activity machines watching people machines watching an activity 24 3 Observational Research 25 Mystery Shoppers Researchers posing as customers who gather observational data about a store. Behavioral Targeting (BT) A form of observation marketing research that uses data mining coupled with identifying Web surfers by the IP addresses. 3 Sampling Procedure Universe Sample Probability Samples Non-Probability Samples 26 3 Types of Samples (Exhibit 9.4) 27 Probability Samples Non-Probability Samples Simple Random Sample Convenience Sample Stratified Sample Judgment Sample Cluster Sample Quota Sample Systematic Sample Snowball Sample 3 Probability Sample 28 Probability Sample A sample in which every element in the population has a known statistical likelihood of being selected. Random Sample A type of probability sample: every element of the population has an equal chance of being selected. 3 Non-probability Samples 29 Nonprobability Sample Any sample in which little or no attempt is made to get a representative cross-section of the population. Convenience Sample A type of non-probability sample: uses respondents who are convenient or readily accessible to the researcher. 3 Types of Errors 30 Measurement Error Error when there is a difference between the information desired and the information provided by the process 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. 3 Collecting the Data Field Service Firms specialize in: 31 Focus group facilities Mall intercept locations Test product storage Kitchen facilities 3 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. 32 3 Preparing and Presenting the Report Concise statement of the research objectives Explanation of research design Summary of major findings Conclusion with recommendations Follow Up: Were recommendations useful/used? 33 3 The Profound Impact of the Internet On Marketing Research Discuss the profound impact of the Internet on marketing research 4 34 Impact of the Internet Under appropriate conditions, can represent the entire population Has replaced computer-assisted telephone interviewing Rated as having the greatest potential for further growth 35 4 Advantages of Internet Surveys Rapid development, Real-time reporting Reduced costs Personalized questions and data Improved respondent participation Contact with the hard-to-reach 36 4 Uses of the Internet by Marketing Researchers Administer surveys Conduct focus groups Other marketing research: Web Communities, Text Messages, Blogs 37 4 Methods of Collecting Online Surveys • Web Survey Systems • Survey Design and Web Hosting Sites • Online Panel Providers 38 4 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 text of the focus group 39 4 Advantages of Online Focus Groups 40 Better participation rates Cost-effectiveness Broad geographic scope Accessibility Honesty 4 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 41 4 Role of Consumer-Generated Media in Marketing Research Media that consumers generate themselves and share with others Not controlled by marketers CGM comes from various sources: blogs, message boards, review sites, podcasts CGM is trusted more than traditional advertising 42 4 Scanner-Based Research Discuss the growing importance of scanner-based research 5 43 Scanner-Based Research A system for gathering information from one group by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy. http://www.youtube.com/watch?v=eob532iEpqk BehaviorScan Research program that tracks the purchases of 3,000 households through store scanners in each research market 44 InfoScan Sales-tracking service for the consumer packaged-goods industry 5 Scanner-Based Research Behavior Scan Allows marketers to manipulate marketing variables, such as television advertising or promotions. Also, to introduce a new product and analyze real changes in consumer buying behavior. Info Scan Retail sales, detailed consumer purchasing information (including customer loyalty and total expenditures), and promotional activity by manufacturers and retailers are monitored and evaluated for all bar-coded products. 45 Data collected weekly from more than 70,000 supermarkets, drugstores & mass merchandisers 5 When to Conduct Marketing Research Explain when marketing research should be conducted 6 46 When Should Marketing Research Be Conducted? Depends on managers’ perceptions of its quality, price, and timing When the expected value of research information exceeds the cost of generating the information 47 6 Competitive Intelligence Explain the concept of competitive intelligence 7 48 Competitive Intelligence Competitive Intelligence (CI) An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors. 49 7 Sources of Competitive Intelligence 50 Internet UCC Filings Company Salespeople Suppliers Industry Experts Periodicals CI Consultants Yellow Pages Government Agencies Trade Shows 7