Chapter 9 Decision Support Systems and Marketing …wweb.uta.edu/faculty/gossett/3321/lhm 10e...

Chapter 9 Decision Support Systems and Marketing Research

1

Copyright ©2009 by Cengage Learning Inc. All rights reserved 1

Designed by

Eric Brengle

B-books, Ltd.

CHAPTER

9

Prepared by

Amit Shah

Frostburg State University

MarketingLamb, Hair, McDaniel

10

Decision Support Systems

and Marketing Research

Copyright ©2009 by Cengage Learning Inc. All rights reserved

Learning Outcomes

2

Explain the concept and purpose of a marketing

decision support system

Define marketing research and explain its

importance to marketing decision making

Describe the steps involved in conducting

a marketing research project

LOI

LO2

LO3


Learning Outcomes

3

Discuss the profound impact of the Internet on marketing research

Discuss the growing importance of

scanner-based research

Explain the concept of competitive intelligence

LO5

LO6

LO4


Marketing Decision Support

Systems

4

Explain the concept and purpose of a

marketing decision support system

LOI



Systems

5

Decision

Support SystemsDSS

An interactive, flexible

computerized information

system that enables managers

to obtain and manipulate

information as they are making

decisions.

LOI


DSS System Characteristics

6LOI

Interactive

Flexible

Discovery-Oriented

Accessible


2



Systems

7

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.

LOI


REVIEW LEARNING OUTCOMEMarketing Decision Support Systems

8

LOI


The Role of Marketing Research

9

Define marketing research and explain its importance

to marketing decision making

LO2



10

Marketing

ResearchThe process of planning,

collecting, and analyzing

data relevant to a marketing

decision.

LO2


Marketing Research Studies

11

LO2

Products

Advertising

Prices

Packages

Names and Logos

Services

Buying habits

Colors

Uses

Awareness

Familiarity

New concepts

Traffic patterns

Wants

Needs

PoliticsCopyright ©2009 by Cengage Learning Inc. All rights reserved


12

LO2

Diagnostic

Predictive

Descriptive Gathering and presenting

factual statements

Explaining data

“What if?”


3


Management Uses of

Marketing Research

13LO2

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


REVIEW LEARNING OUTCOMEMarketing Research and Its Importance

14

LO2

Why marketing research? Improve quality of

decision making

Trace problems

Focus on keeping

existing customers

Understand changes in

marketplace


Steps in a Marketing Research

Project

15

Describe the steps involved in conducting

a marketing research project

LO3

Copyright ©2009 by Cengage Learning Inc. All rights reserved 16

The Marketing

Research ProcessLO3

CollectData

SpecifySamplingProcedure

Plan Design/Primary Data

DefineProblem

AnalyzeData

Prepare/PresentReport

Follow Up

1

2

3

4

5

6

7


Marketing Research

17

LO3

Marketing Research Problem

MarketingResearch Objective

Management Decision Problem

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.

A broad-based problem that requires marketing research in order for managers to take proper actions.


Secondary Data

18

LO3

Secondary

DataData previously collected for

any purpose other than the one

at hand.


4


Sources of Secondary Data

19LO3

Government Agencies

Trade and Industry Associations

Business Periodicals

News Media

Internal Corporate Information


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

20

LO3


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

21

LO3


The New Age of Secondary Information:

The Internet

22

LO3

1

2

3

4

5

Analyze your topic

Test run a word or phrase in a search engine

Learn as you go and vary your approach

Don’t bog down in strategy that doesn’t work

Go back to earlier steps better informed


Planning the Research Design

23

LO3

Which research questions

must be answered?

How and whenwill data be gathered?

How willthe data

be analyzed?

?


Primary Data

24

LO3

Primary

DataInformation collected for the

first time. Can be used for

solving the particular

problem under investigation.


5


Advantages of Primary Data

• Answers a specific research question

• Data are current

• Source of data is known

• Secrecy can be maintained

25

LO3


Disadvantages of

Primary Data

• Expensive

• “Piggybacking” may confuse respondents

• Quality declines if interviews are lengthy

• Reluctance to participate in lengthy interviews

26

LO3

Disadvantages are usually offset by the advantages of primary data.


Survey Research

27

LO3

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

28LO3

Focus Groups

Executive Interviews

Mail Surveys

Telephone Interviews

Mall Intercept Interviews

In-Home Interviews



29

LO3

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 businesspeople

at their offices concerning

industrial products or services.



30

LO3

Focus Groups Seven to ten people who

participate in a group

discussion led by a

moderator.


6


Questionnaire Design

31

LO3

Open-EndedQuestion

Closed-EndedQuestion

Scaled-Response Question

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.

A closed-ended question designed to measure the intensity

of a respondent’s answer.


Questionnaire Design

32

LO3

Clear and concise

No ambiguous language

Unbiased

Reasonable terminology

Only one question


Observation Research

33

LO3

Observation

Research A research method that relies on

three types of observation:

people watching people

people watching an activity

machines watching people


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

34LO3


Ethnographic Research

35

LO3

Ethnographic

Research The study of human behavior

in its natural context; involves

observation of behavior and

physical setting.


The Sampling Procedure

36

LO3

Sample

Universe

A subset from a large population.

The population from which a sample will be drawn.


7


Sampling Procedure

37

LO3

Universe Sample

Probability Samples

Non-Probability Samples


Types of Samples

38

LO3

Probability Samples

Simple Random Sample

Stratified Sample

Cluster Sample

SystematicSample

Non-Probability Samples

Convenience Sample

JudgmentSample

Quota Sample

SnowballSample


Probability Samples

39

LO3

ProbabilitySample

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

40

LO3

NonprobabilitySample

Convenience Sample

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.


Types of Errors

41LO3

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

• Focus group facilities

• Mall intercept locations

• Test product storage

• Kitchen facilities

42LO3

Provide:


8


Analyzing the Data

43

LO3

Cross-

Tabulation 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

• Concise statement of the research

objectives

• Explanation of research design

• Summary of major findings

• Conclusion with recommendations

44LO3


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?

45LO3


REVIEW LEARNING OUTCOME

46

LO3

Steps in a Marketing Research Project


Scanner-Based Research

47

Discuss the growing importance of scanner-based research

LO5


Scanner-Based Research

48

Scanner-based

Research

LO5

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


9


When Should Marketing

Research Be Conducted?

49

LO5

Where there is a high level of uncertainty

When value of research information

exceeds the cost of generating the

information


REVIEW LEARNING OUTCOMEScanner-Based Research

50

LO5

BehaviorScan InfoScan

Panel information from

Specific groups of people,

enables researchers to

manipulate variables and see

real results

Aggregate consumer

information on all

bar-coded products


Competitive Intelligence

51

Explain the concept of

competitive intelligence

LO6



52

Competitive

Intelligence

LO6

An intelligence system that

helps managers assess their

competition and vendors in

order to become more efficient

and effective competitors.


Sources of Competitive

Intelligence

53LO6

Internet

Company Salespeople

Experts

CI Consultants

Government Agencies

UCC Filings

Suppliers

Periodicals

Yellow Pages

Trade Shows


REVIEW LEARNING OUTCOME


54

LO6

CI

Part of a sound

marketing strategy

Helps companies

respond to competitive

threats

Helps reduce

unnecessary costs

Chapter 9 Decision Support Systems and Marketing …wweb.uta.edu/faculty/gossett/3321/lhm 10e...

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