©2003 South-Western Chapter 7 Version 3e1 chapter Decision Support Systems and Marketing Research 7...

Chapter 7 Version 3e 1©2003 South-Western

chapter

Decision Support Systems Decision Support Systems and Marketing Researchand Marketing Research

77

Prepared byPrepared byDeborah BakerDeborah Baker

Texas Christian UniversityTexas Christian University


chapter

Learning ObjectivesLearning Objectives

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1.1. Explain the concept and purpose of a Explain the concept and purpose of a marketing decision support system.marketing decision support system.

2. Define marketing research and explain its 2. Define marketing research and explain its importance to marketing decision making.importance to marketing decision making.

3. Describe the steps involved in conducting 3. Describe the steps involved in conducting a marketing research project.a marketing research project.


chapter

Learning Objectives (continued)Learning Objectives (continued)

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4. Discuss the profound impact of the Internet 4. Discuss the profound impact of the Internet on marketing research.on marketing research.

5. Discuss the growing importance of 5. Discuss the growing importance of scanner-based research.scanner-based research.

6. Explain the concept of competitive 6. Explain the concept of competitive intelligence.intelligence.


Learning Objective Learning Objective 11

Explain the concept and purpose Explain the concept and purpose of a marketing decision support system.of a marketing decision support system.


Decision Support SystemDecision Support System

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 CharacteristicsDSS System Characteristics

CharacteristicsCharacteristicsof a of a

DSS SystemDSS System

CharacteristicsCharacteristicsof a of a

DSS SystemDSS System

InteractiveInteractive

FlexibleFlexible

Discovery-OrientedDiscovery-Oriented

AccessibleAccessible

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Database MarketingDatabase Marketing

The creation of a large

computerized file of

customers’ and potential

customers’ profiles and

purchase patterns.

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Define marketing research andDefine marketing research andexplain its importance to explain its importance to

marketing decision making.marketing decision making.


Marketing ResearchMarketing Research

The process of planning,

collecting, and analyzing

data relevant to a marketing

decision.

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Roles of Marketing ResearchRoles of Marketing Research22

DescriptiveDescriptive

DiagnosticDiagnostic

PredictivePredictive

Marketing Research Marketing Research

has three roles:has three roles:

Marketing Research Marketing Research

has three roles:has three roles:


DiagnosticDiagnostic

PredictivePredictive

DescriptiveDescriptive

Gathering and presenting factual statements

Explaining data

Attempting to estimate the results of a planned marketing decision

Roles of Marketing ResearchRoles of Marketing Research22


Management Uses of Management Uses of Marketing ResearchMarketing Research

Improve the quality of decision making

Trace problems

Focus on keeping existing problems

Understand the ever-changing marketplace

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Learning Objective Learning Objective

Describe the steps involved in Describe the steps involved in conducting a marketing research project.conducting a marketing research project.

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The Marketing Research ProcessThe Marketing Research Process

CollectCollectDataData

CollectCollectDataData

SpecifySpecifySamplingSamplingProcedureProcedure

SpecifySpecifySamplingSamplingProcedureProcedure

Plan Design/Plan Design/Primary DataPrimary DataPlan Design/Plan Design/Primary DataPrimary Data

DefineDefineProblemProblemDefineDefine

ProblemProblem

AnalyzeAnalyzeDataData

AnalyzeAnalyzeDataData

Prepare/Prepare/PresentPresentReportReport

Prepare/Prepare/PresentPresentReportReport

Follow UpFollow UpFollow UpFollow Up

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Marketing ResearchMarketing Research33

Marketing Marketing Research Research ProblemProblem

Marketing Marketing Research Research ProblemProblem

MarketingMarketingResearch Research ObjectiveObjective

MarketingMarketingResearch Research ObjectiveObjective

Management Management Decision Decision ProblemProblem

Management Management Decision Decision ProblemProblem

Determining what information is needed and how that information can be

obtained efficiently and effectively.

Determining what information is needed and how that information can be

obtained efficiently and effectively.

The specific information needed to solve a marketing research problem; the objective should provide insightful

decision-making information.

The specific information 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.


Secondary DataSecondary Data

Data previously collected

for any purpose other

than the one at hand.

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Sources of Secondary DataSources of Secondary Data

Government Agencies

Trade and Industry Associations

Marketing Research Firms

Commercial Publications

News Media

Internal Corporate Information

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Advantages of Secondary DataAdvantages 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 DataDisadvantages of Secondary Data33

May not be on target with the research problem

Quality and accuracy of data may pose a problem


The New Age of The New Age of Secondary InformationSecondary Information

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The InternetThe InternetThe InternetThe Internetwwwwww

Search Enginesand Directories

Sites of Interest toMarketing Researchers

Discussion Groups

Periodical, Newspaper, and Book Databases


Basic Types of DirectoriesBasic Types of Directories

Academic and Professional Directories

Commercial Portals

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Research DesignResearch Design

Specifies which research

questions must be

answered, how and when

the data will be gathered,

and how the data will be

analyzed.

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Planning the Research DesignPlanning the Research Design33

Which research Which research questions questions

must be answered?must be answered?

Which research Which research questions questions

must be answered?must be answered?

How and whenHow and whenwill data be will data be gathered?gathered?

How and whenHow and whenwill data be will data be gathered?gathered?

How willHow willthe datathe data

be analyzed?be analyzed?

How willHow willthe datathe data

be analyzed?be analyzed?

??


Primary DataPrimary Data

Information collected for

the first time. Can be

used for solving the

particular problem

under investigation.

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Advantages of Primary DataAdvantages of Primary Data33

Answers a specific research question

Data are current

Source of data is known

Secrecy can be maintained


Disadvantages of Primary DataDisadvantages of Primary Data33

Expensive

Quality declines if interviews are lengthy

Reluctance to participate in lengthy interviews

Disadvantages are usually offset by the

advantages of primary data!

Disadvantages are usually offset by the

advantages of primary data!


Survey ResearchSurvey Research

The most popular technique

for gathering primary data in

which a researcher interacts

with people to obtain facts,

opinions,

and attitudes.

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Forms of Survey ResearchForms of Survey Research

Focus GroupsFocus Groups

Executive InterviewsExecutive Interviews

Mail SurveysMail Surveys

Telephone Interviews(Home and Central Location)

Telephone Interviews(Home and Central Location)

Mall Intercept InterviewsMall Intercept Interviews

In-Home InterviewsIn-Home Interviews

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Mall Intercept InterviewMall Intercept Interview

Survey research method

that involves interviewing

people in the common

areas of shopping malls.

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Executive InterviewsExecutive Interviews33

A type of survey that

involves interviewing

businesspeople at their

offices concerning

industrial products

or services.


Focus GroupFocus Group33

Seven to ten people who

participate in a group

discussion led by a

moderator.


Advantages of Advantages of On-Line Focus GroupsOn-Line Focus Groups

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Speed

Cost-effectiveness

Broad geographic scope

Accessibility

Honesty


Questionnaire DesignQuestionnaire Design33

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.


Questionnaire DesignQuestionnaire Design

Qualities Qualities of of

Good Good QuestionnairesQuestionnaires

Qualities Qualities of of

Good Good QuestionnairesQuestionnaires

Clear and ConciseClear and Concise

No Ambiguous LanguageNo Ambiguous Language

UnbiasedUnbiased

Reasonable TerminologyReasonable Terminology

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Observation ResearchObservation Research33

A research method that

relies on three types of

observation:people watching people

people watching an activity

machines watching people


Observation ResearchObservation Research

Mystery Shoppers

One-Way Mirrors

Types ofTypes ofObservationObservation

ResearchResearch

Types ofTypes ofObservationObservation

ResearchResearchAudits

Machines Machines WatchingWatching

PeoplePeople

Machines Machines WatchingWatching

PeoplePeople

People People Watching Watching

PeoplePeople

People People Watching Watching

PeoplePeople

People People Watching Watching an Activityan Activity

People People Watching Watching an Activityan Activity

Traffic Counters

Passive People Meter

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Mystery ShoppersMystery Shoppers33

Researchers posing as

customers who gather

observational data about

a store and collect data

about customer/employee

interactions.


ExperimentExperiment33

A method a researcher uses

to gather primary data.


Sampling ProcedureSampling Procedure

SampleSample

UniverseUniverse

A subset from a large population.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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Probability SamplesProbability 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 change of being selected.

A sample arranged so that every element of the population has an equal change of being selected.

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Nonprobability SamplesNonprobability 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.

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Sampling ProcedureSampling Procedure

UniverseUniverse SampleSample

Probability Samples

Probability Samples

Non-Probability Samples

Non-Probability Samples

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Types of SamplesTypes of Samples

Probability Probability SamplesSamples

Probability Probability SamplesSamples

Simple Random Sample

Stratified Sample

Cluster Sample

SystematicSample

Non-Probability Non-Probability SamplesSamples

Non-Probability Non-Probability SamplesSamples

Convenience Sample

JudgmentSample

Quota Sample

SnowballSample

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Types of ErrorsTypes of Errors

Errors Errors AssociatedAssociated

with Samplingwith Sampling

Errors Errors AssociatedAssociated

with Samplingwith Sampling

Measurement ErrorMeasurement Error

Sampling ErrorSampling Error

Frame ErrorFrame Error

Random ErrorRandom Error

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Types of ErrorsTypes of Errors

Measurement Error

Measurement Error

Sampling Error

Sampling Error

Frame Error

Frame Error

Random Error

Random 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

Error when a sample somehow does not represent the target population.

Error when a sample somehow does not represent the target population.

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.

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 FirmField Service Firm33

A firm that specializes in

interviewing respondents on

a subcontracted basis.


Field Service FirmsField Service Firms33

Focus group facilities

Mall intercept locations

Test product storage

Kitchen facilities

Retail audits

ProvideProvide


Cross-TabulationCross-Tabulation33

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 Preparing and Presenting the Reportthe Report

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Concise statement of the research objectives

Explanation of research design

Summary of major findings

Conclusion with recommendations


Following UpFollowing 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?

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Discuss the profound impact Discuss the profound impact of the Internet on marketing research.of the Internet on marketing research.

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Impact of the InternetImpact 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 research easier

Slashes labor-and time-intensive research activities

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Advantages of internet SurveysAdvantages 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 costsReduced costs

Rapid development,Real-time reporting

Rapid development,Real-time reporting

Advantages ofAdvantages ofInternet SurveysInternet SurveysAdvantages ofAdvantages of

Internet SurveysInternet Surveys

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Internet SamplesInternet Samples44

UnrestrictedInternet Sample

UnrestrictedInternet Sample

ScreenedInternet Sample

ScreenedInternet Sample

RecruitedInternet Sample

RecruitedInternet 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.

An Internet sample with quotas based on desired sample

characteristics.

A sample in which respondents are prerecruited and must

qualify to participate.

A sample in which respondents are prerecruited and must

qualify to participate.


Other Uses of the InternetOther Uses of the Internet

Other Internet Other Internet Uses Uses

by Marketing by Marketing ResearchersResearchers

Other Internet Other Internet Uses Uses

by Marketing by Marketing ResearchersResearchers

Viewing of presentations of marketing research surveysViewing of presentations of marketing research surveys

Publication and distributionof reports

Publication and distributionof reports

Data management and on-line analysis

Data management and on-line analysis

Collaboration in the management of a research project

Collaboration in the management of a research project

Distribution of requests for proposals

Distribution of requests for proposals

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Discuss the growing importance Discuss the growing importance of scanner-based research.of scanner-based research.

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Scanner-Based ResearchScanner-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.

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When Should Marketing When Should Marketing Research be Conducted?Research be Conducted?

Where there is a high level of uncertainty

When value of research information exceeds the cost of generating the information

55



Explain the concept of Explain the concept of competitive intelligence.competitive intelligence.


Competitive IntelligenceCompetitive Intelligence

An intelligence system that

helps managers assess

their competition and

vendors in order to

become more efficient and

effective competitors.

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Competitive IntelligenceCompetitive Intelligence

Can help identify a competitor’s advantage

Can help determine how the competitor’s advantagewas achieved

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Advantages of Advantages of Competitive IntelligenceCompetitive Intelligence

Predict changes in business relationships

Guard against threats

Forecast a competitor’s strategy

Develop a successful marketing plan

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Sources of Sources of Competitive IntelligenceCompetitive Intelligence

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InternetInternet

Company PersonnelCompany Personnel

ExpertsExperts

CI ConsultantsCI Consultants

Government AgenciesGovernment Agencies

UCC FilingsUCC Filings

SuppliersSuppliers

Newspapers/PeriodicalsNewspapers/Periodicals

Yellow PagesYellow Pages

Trade ShowsTrade Shows

©2003 South-Western Chapter 7 Version 3e1 chapter Decision Support Systems and Marketing Research 7...

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