1. Improving Decisions with Marketing Information
Chapter Eight
Improving Decisions with Marketing Information
Chapter 8
Improving Decisions with Marketing Information
For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. © 2011 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin 1

2. At the end of this presentation, you should be able to:
This slide refers to material on pp. 200.
Know about marketing information systems.
Understand the scientific approach to marketing research.
Know about methods for collecting secondary and primary data.
Understand the role of observing, questioning, and using experimental methods in marketing research.
Understand important new terms. 2

3. This slide relates to material on pp. 200-201.
Who Does the Work? 5

4. Effective Research Requires Cooperation
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That marketing research geek doesn’t understand my business – she doesn’t even know my competitors!
That overpaid Gen Y is clueless – she doesn’t even know how a chi-square is computed!
Collaboration Is Absolutely Necessary! 6

5. Changes Are Under Way in Marketing Information Systems
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MIS Makes Information Available and Accessible
Get More Information - Faster and Easier
Marketing Managers Must Help Develop an MIS
An Intranet Is Easy to Update (linking computer within a company) 7

6. Elements of a Complete Marketing Information System (decision support system put manager online to get and use information while making decisions; marketing model—relationships among marketing variables)
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7. The Impact of an MIS
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Information for implementation, planning and control
Many Firms Are Not There Yet 9

8. Research is a Bridge to Customers
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© 2011 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 10

9. Five-Step Scientific Approach to Marketing Research Process
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Defining the problem
Analyzing the situation
(review secondary data)
Early identification of solution
Feedback to previous steps
Getting problem-specific data
Interpreting the data (getting meaning from data)
Solving the problem (make recommendations) 11

10. Defining the Problem – Step 1
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Finding the Right Problem Level (the right problem)
Problems vs. Symptoms
Setting Research Objectives 12

11. Analyzing the Situation – Step 2
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What Information Do We Already Have?
Situation Analysis Helps Educate a Researcher 13

12. Checking Your Knowledge
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Edna Bates, a marketing researcher who is an expert in customer satisfaction research, is asked by a client to conduct a study dealing with a completely unfamiliar research topic. Edna consults secondary data to gain more insight about this unfamiliar area. Edna is engaged in the _________ stage of the marketing research process.
problem definition
situation analysis
gathering problem-specific data
data interpretation
solving the problem
Answer: B 14

13. Sources of Secondary and Primary Data
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Company files, intranet, reports, marketing information system, people, sales, cost data
Inside company
Secondary data sources
Internet, libraries, governments, trade associations, universities, private research organizations
Outside company
All data sources
Equipment (video, scanner, etc.); Web site analysis; personal approaches
Obser-vation
Primary data sources
In-depth and focus group interviews; online, mail, phone, personal surveys; panels
Ques-tioning 15

14. The Bottom Line on Secondary Data (relatively inexpensive)
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Key Issues
Research Proposal (plan specifies information to be obtained and how)
Situation Analysis – A Lot For a Little
What Else Is Needed? 17

15. Getting Problem-Specific Data – Step 3
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Primary Data
Observing
Questioning 18

16. Focus Groups Stimulate Discussion (6 to 10 people in a informal group setting)
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17. Structured Questioning Gives More Objective Results
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Seeks structured responses
Can be summarized in numbers
Quantitative Research (%,
averages,
statistics)
Faster response & analysis 20

18. Surveys Come in Many Forms
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Mail and Online (ability to ask extensive set of questions; convenience; anonymity; willingness to provide personal information)
Primary
Methods
for
Collecting
Survey
Data
Telephone (more faster and effective than mail survey)
Personal Interview can be in-depth & explain complex issues

19. Checking Your Knowledge
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A researcher wants to study 1,000 consumers and needs information about a lot of personal and sensitive issues. Which of the following would be the best way to gather this information?
Mail survey
Focus group
Telephone survey
Face-to-face interview
Experiment
Answer: A 22

20. Observing – What You See Is What You Get
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Observation Is Common in Advertising Research (people meters)
Web site Analysis (observe customer behavior)
Checkout Scanners “See” A Lot (shopping behavior and manage inventories)
Consumer Panels (group of consumers providing information on a continuing basis) 23

21. Representative group of customers
Illustration of Experimental Method in Comparing Effectiveness of Two Ads
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Difference in response between two groups
Groups of people are similar except for the ad they see 1 2 3 4 5
Average product interest rating by group
Half of the people see Ad #1
Representative group of customers
Average for group who saw Ad #1 = 3.2
Half of the people see Ad #2
Average for group
who saw Ad #2 = 4.6 24

22. Interactive Exercise: Types of Data
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23. Interpreting the Data – Step 4
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What is your household income?
Less than $30,000
$30,000 to
50,000
$50,000 to $75,000
More than $75,000
Total Sample
Does your home have broadband Internet service?
Yes
23.7%
46.2%
52.3%
72.4%
47.1% No
76.3
53.8
47.7
27.6
52.9
Total
100.0% 26

24. Key Concerns in Data Interpretation
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Population
Sample
Key Issues
Validity
Confidence Intervals 27

25. Ethical Issues in Marketing
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© 2011 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 28

26. Checking Your Knowledge
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A sales training firm wants feedback on the quality of its classes and training services. The firm planned to send mail surveys to CEOs of its client companies to get the needed information. However, one executive objected to the survey plan, saying, “CEOs don’t attend our classes. How will they know if the classes are any good?” Another executive added, “If the survey isn’t relevant to the CEOs, it will be thrown away and we’ll get no data.” It appears that the research design presents problems with:
response rate.
relevance of population.
validity.
improper statistical analysis.
both A and B.
ANSWER: E 29

27. Solving the Problem – Step 5
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Interesting tidbits (reveals something not known)
No Action Implications – Little value (suggest poor planning by the researcher)
Application in Marketing Strategy Planning (e.g., target market or 4Ps
Evaluate 31

28. Checking Your Knowledge
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A marketing research firm conducted a telephone survey for a consumer products company. It provided new and interesting information about brand image, the competition, and other topics. At the end of the research company’s results presentation, the sales manager commented, “This is all interesting information, but it doesn’t tell me why our market share is declining among 18 to 34 year old women, nor does it offer me any suggestions about actions I can take to deal with the situation.” The sales manager’s complaint suggests that the research suffers from problems with:
a lack of action implications for management.
poor planning by the researcher and managers at the outset of the project.
poor sampling.
a low response rate.
both A and B.
ANSWER: E 32

29. International Marketing Research
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Research Contributes to Success (needs, interest, segmenting dimensions may be different)
Accurate Data—Hard To Find?
Coordinate and Standardize
Avoid Mistakes by using Local Researcher 33

30. Marketing Research Identifies International Opportunities
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© 2011 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 34

31. Study Question 1
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Marketing managers can search the Internet for secondary data by using: 
A. a popular Internet subject directory like Yahoo.
B. a library Internet subject directory like INFOMINE.
C. a powerful Internet search engine like Google.
D. a relevant database that is accessed by using software at the website where the database is located.
E. all of the above.
Answer: E

32. Study Question 2
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A consumer products manufacturer wants consumer reaction to its existing products. Interaction is considered important to stimulate thinking. The firm should use: 
A. the observation method.
B. focus group interviews.
C. the GSR (galvanic skin response) method.
D. quantitative interviews.
E. telephone interviews.
Answer: B

33. Study Question 3
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What would be the best way for the marketing manager of a supermarket to find out how consumers move through the store? 
A. Have an interviewer go through the store with each customer.
B. Observe customers with hidden cameras.
C. Give customers a questionnaire after they have finished shopping.
D. Install checkout counters at the end of each aisle.
E. None of the above would be very good.
Answer: B

34. Study Question 4
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Jane has agreed to participate in marketing research in which she will provide information about her purchases on an ongoing basis. She is probably part of a: 
A. confidence interval.
B. statistical package.
C. contributor group.
D. consumer panel.
E. focus group.
Answer: D

35. Study Question 5
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Two similar groups of consumers are shown different magazines which include the same ad. Then each consumer is asked questions about the advertised product. This seems to be a description of 
A. the experimental method.
B. a set of focus group interviews.
C. a consumer panel research project.
D. a set of personal interviews.
E. None of the above.
Answer: A