1. Decision Support Systems and Marketing Research
Chapter 9 Decision Support Systems and Marketing Research
Decision Support Systems and Marketing Research
Whether a research project costs $200 or $2 million, the same general process should be followed.
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2. Chapter 9 Decision Support Systems and Marketing Research
Learning Outcomes
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 1 2 3

3. Chapter 9 Decision Support Systems and Marketing Research
Learning Outcomes 4
Discuss the profound impact of the Internet on marketing research
Discuss the growing importance of scanner-based research
Explain when marketing research should be conducted
Explain the concept of competitive intelligence 5 6 7

4. Explain the concept and purpose of a marketing decision support system
Chapter 9 Decision Support Systems and Marketing Research
Marketing Decision Support Systems
Explain the concept and purpose of a marketing decision support system
Notes:
Marketing decision making relies on accurate and timely information. Good information is used to maximize sales, to use scarce company resources efficiently, and to prepare and adjust marketing plans.
The system most commonly used for gathering marketing information is called a marketing decision support system. 1

5. Marketing Decision Support Systems
Chapter 9 Decision Support Systems and Marketing Research
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:
Interactive
Flexible
Discovery Oriented
Accessible 1

6. Marketing Decision Support Systems
Chapter 9 Decision Support Systems and Marketing Research
Marketing Decision Support Systems
Database Marketing
The creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns.
Notes:
The fastest-growing use of DSSs is for database marketing. It is usually the key tool for successful one-to-one marketing, which relies on very specific information about a market. 1

7. The Role of Marketing Research
Chapter 9 Decision Support Systems and Marketing Research
The Role of Marketing Research
Define marketing research and explain its importance to marketing decision making 2

8. The Role of Marketing Research
Chapter 9 Decision Support Systems and Marketing Research
The Role of Marketing Research
Marketing Research
The process of planning, collecting, and analyzing data relevant to a marketing decision.
Notes:
Marketing research plays a key role in the marketing system. It provides data on the effectiveness of the marketing mix and insights for necessary changes.
Marketing research is a main data source for management information systems and DSS. 2

9. Three Roles of Marketing Research
Chapter 9 Decision Support Systems and Marketing Research
Three Roles of Marketing Research
2-Diagnostic
3-Predictive
1-Descriptive
Gathering and presenting factual statements
Explaining data
Address “what if” questions
Notes:
Marketing research has three roles: descriptive, diagnostic, and predictive.
Descriptive: What is the historic sales trend in the industry? What are consumers’ attitudes toward a product?
Diagnostic: What was the impact on sales after a change in the package design?
Predictive: “What if questions,” such as how can descriptive and diagnostic research be used to predict the results of a planned marketing decision? 2

10. Market Research vs. Marketing Research
Chapter 9 Decision Support Systems and Marketing Research
Market Research vs. Marketing Research
Market Research: Global information
Marketing Research: In depth information on your customers and your products
Products
Goods
Services
Ideas

11. Steps in a Marketing Research Project
Chapter 9 Decision Support Systems and Marketing Research
Steps in a Marketing Research Project
Describe the
steps involved
in conducting
a marketing
research project 3

12. Exhibit 9.1 The Marketing Research Process
Chapter 9 Decision Support Systems and Marketing Research
Exhibit 9.1 The Marketing Research Process 1
Collect
Data
Specify
Sampling
Procedure
Plan Design/
Primary Data
Define
Problem
Analyze
Prepare/
Present
Report
Follow Up 2 3 4 5 6
Notes:
Exhibit 9.1 traces the steps in the marketing research process.
As changes occur in the firm’s external environment, marketing managers must decide on changes to the existing marketing mix. 7
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13. The Marketing Research Project
Chapter 9 Decision Support Systems and Marketing Research
The Marketing Research Project
Marketing Research Problem
Marketing Research 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 be to provide insightful decision-making information.
A broad-based problem that uses marketing research in order for managers to take proper actions. 3 13

14. Sources of Secondary Data
Chapter 9 Decision Support Systems and Marketing Research
Sources of Secondary Data
Government Agencies
Trade and Industry Associations
Business Periodicals
News Media-Internet
Internal Corporate Information
Notes:
Secondary data is data previously collected for any purpose other than the one at hand. 3

15. Advantages of Secondary Data
Chapter 9 Decision Support Systems and Marketing Research
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 3

16. Disadvantages of Secondary Data
Chapter 9 Decision Support Systems and Marketing Research
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 3

17. Marketing Research Aggregators
Chapter 9 Decision Support Systems and Marketing Research
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
Notes:
The marketing research aggregator industry is a $120 million business that is growing about 6 percent a year. 3

18. Planning the Research Design
Chapter 9 Decision Support Systems and Marketing Research
Planning the Research Design
Which research questions must be answered?
How and when will data be gathered?
How will the data be analyzed? ?
Notes:
Research design specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed. 3

19. Primary Data Information collected for the first time
Chapter 9 Decision Support Systems and Marketing Research
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
Notes:
The main advantage of primary data is that they will answer a specific research question that secondary data cannot answer.
Primary data are current and the source of data is known.
Moreover, the information is proprietary. 3

20. Survey Research Survey Research
Chapter 9 Decision Support Systems and Marketing Research
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. 3

21. Forms of Survey Research
Chapter 9 Decision Support Systems and Marketing Research
Forms of Survey Research
Focus Groups
Executive Interviews
Mail Surveys
Telephone Interviews
Mall Intercept Interviews
In-Home Interviews
Notes:
In-home personal interviews: Provide high-quality information, but are expensive because of travel time and mileage costs for the interviewer. Not a popular survey tool in the U.S. and Europe.
Mall Intercept interviews: Conducted in shopping malls or in a marketing research office in the mall. Surveys must be brief. It is hard to get a representative sample of the population. However, probing is possible.
Telephone interviews: Cost less and provide one of the best samples of any traditional survey procedure. Many facilities for telephone interviews utilize computer-assisted interviewing, where information is directly input into a computer application. The federal “Do Not Call” law does not apply to survey research.
Mail Surveys: Benefits are the low cost, elimination of interviews, centralized control, and anonymity for respondents. However, mail questionnaires usually produce low response rates. Consequently, the resulting sample may not represent the surveyed population. However, mail panels, consisting of a sample of households recruited to participate for a given period, yield response rates of 70 percent.
Executive interviews: Involves interviewing businesspeople at their offices regarding industrial products or services. This type of interviewing is expensive, due to the process of finding, qualifying, and interviewing respondents.
Focus groups: A type of personal interviewing, characterized by seven to ten people gathered in a meeting place. The interaction provides group dynamics, with an interplay of responses yielding richer information than individual interviews. 3

22. Questionnaire Design Open-Ended Question Closed-Ended Scaled- Response
Chapter 9 Decision Support Systems and Marketing Research
Questionnaire Design
Open-Ended
Question
Closed-Ended
Scaled- Response
An interview question that encourages an answer phrased in the 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.
Notes:
Questionnaires contain three basic types of questions:
Open-ended questions
Closed-ended questions
Scaled-response questions. 3

23. Avoid leading questions Avoid two questions in one
Chapter 9 Decision Support Systems and Marketing Research
Questionnaire Design
Clear and concise
No ambiguous language
Avoid leading questions
Online
CreateSurvey.com
Design a marketing questionnaire to post on your class Web site using the tools offered by Create Survey. Visit the demo polls on the site for ideas and tips.
Avoid two questions in one 3

24. Observation Research Observation Research
Chapter 9 Decision Support Systems and Marketing Research
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
Notes:
Observation research is the systematic process of recording the behavioral patterns of people, objects, and occurrences without questioning them. 3

25. Observational Research
Chapter 9 Decision Support Systems and Marketing Research
Observational Research
Mystery Shoppers
Behavioral Targeting (BT)
Researchers posing as customers who gather observational data about a store.
A form of observation marketing research that uses data mining coupled with identifying Web surfers by the IP addresses.
Notes:
Two common forms of people-watching-people research are one-way mirror observations and mystery shoppers.
Behavioral Targeting (BT) began by placing cookies on users’ browsers to track which Web sites they visited and ultimately match the user with ads they would most likely investigate. Now, BT combines a consumer’s online activity with psychographic and demographic profiles. 3 25

26. Non-Probability Samples
Chapter 9 Decision Support Systems and Marketing Research
Sampling Procedure
Universe
Sample
Probability Samples
Non-Probability Samples
Notes:
Once the researchers decide how to collect primary data, the next step is to select the sampling procedures being used. Not all possible users of a new product can be interviewed, therefore a firm must select a sample or a subset of the larger population.
The population or universe must first be defined. Then it is determined if the sample must be representative of the population. If the answer is yes, a probability sample is needed. 3

27. Types of Samples (Exhibit 9.4)
Chapter 9 Decision Support Systems and Marketing Research
Types of Samples (Exhibit 9.4)
Probability Samples
Simple Random Sample
Stratified Sample
Cluster Sample
Systematic Sample
Non-Probability Samples
Convenience Sample
Judgment Sample
Quota Sample
Snowball Sample
Notes:
Exhibit 9.4 describes each of these types of probability and nonprobability samples. 3 27

28. Probability Sample Probability Sample Random Sample
Chapter 9 Decision Support Systems and Marketing Research
Probability Sample
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.
Notes:
The most desirable feature of a probability sample is that statistical rules can be used to ensure that the sample represents the population.
One type of probability sample is the random sample—where every element of the population has an equal chance of being selected as part of the sample. 3

29. Non-probability Samples
Chapter 9 Decision Support Systems and Marketing Research
Non-probability 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 type of non-probability sample:
uses respondents who are
convenient or readily
accessible to the researcher.
Notes:
A nonprobability sample is a sample where little or no attempt is made to get a representative cross section of the population.
A common form of nonprobability sample is the convenience sample, a selection of convenient respondents such as employees, relatives, or friends. Because of their lower cost, nonprobability samples are the basis of much marketing research. 3

30. Types of Errors Error when there is a difference Measurement
Chapter 9 Decision Support Systems and Marketing Research
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.
Notes:
Whenever a sample is used in marketing research, major types of errors may occur: measurement error and sampling error.
Frame error arises if the sample drawn from a population differs from the target population.
Random error occurs when the selected sample is an imperfect representation of the overall population.
Random
Error
Error because the selected sample is
an imperfect representation of
the overall population. 3

31. Field Service Firms specialize in:
Chapter 9 Decision Support Systems and Marketing Research
Collecting the Data
Field Service Firms specialize in:
Focus group facilities
Mall intercept locations
Test product storage
Kitchen facilities
Notes:
Most primary data is collected by marketing research field service firms.
Field service firms conduct interviews, provide focus-group facilities, mall intercept locations, test product stores, and kitchen facilities to prepare test food products. 3

32. Analyzing the Data Cross- Tabulation
Chapter 9 Decision Support Systems and Marketing Research
Analyzing the Data
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.
Notes:
After data is collected, the next step is to analyze data. The purpose of data analysis is to interpret and draw conclusions from the collected data.
Data is organized by one-way frequency counts, cross-tabulations, and more sophisticated statistical analysis.
One-way frequency tables record the responses to a question. They provide a general picture of the study’s results.
A cross-tabulation looks at the associations between certain responses, such as association between gender and product choice. 3

33. Preparing and Presenting the Report
Chapter 9 Decision Support Systems and Marketing Research
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?
Notes:
After data analysis is completed, the report is prepared, and conclusions and recommendations are communicated to management.
The report should be tailored to the audience, beginning with a statement of research objectives, followed by a brief explanation of the research design. A summary of major findings is next, followed by a conclusion with recommendations. 3

34. Discuss the profound impact of the Internet on marketing research
Chapter 9 Decision Support Systems and Marketing Research
The Profound Impact of the Internet
On Marketing Research
Discuss the profound impact of the Internet on marketing research 4

35. Chapter 9 Decision Support Systems and Marketing Research
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
Notes:
More than 90 percent of America’s marketing research companies conduct some form of online research.
The reasons for its success are shown on this slide. 4

36. Advantages of Internet Surveys
Chapter 9 Decision Support Systems and Marketing Research
Advantages of Internet Surveys
Contact with the
hard-to-reach
Improved respondent
participation
Personalized questions
and data
Reduced costs
Rapid development,
Real-time reporting
Notes:
Rapid development, real-time reporting: Survey results can be tabulated and broadcast in a much shorter time frame.
Reduced costs: Costs can be cut by 25 to 40 percent and results provided in half the time required for traditional telephone surveys.
Personalized questions and data: Personalization allows relevance to each respondent’s own situation, thus speeding the response process.
Improved respondent participation: Internet surveys take half as much time to complete as phone interviews and can be accomplished at the respondent’s convenience.
Contact with the hard-to-reach: Doctors, management, and high-income professionals are among the most surveyed and the most difficult to reach. Many of these groups are well represented online. 4

37. Uses of the Internet by Marketing Researchers
Chapter 9 Decision Support Systems and Marketing Research
Uses of the Internet by Marketing Researchers
Other marketing research: Web Communities, Text Messages, Blogs
Conduct focus groups
Administer surveys 4

38. Methods of Collecting Online Surveys
Chapter 9 Decision Support Systems and Marketing Research
Methods of Collecting Online Surveys
Web Survey Systems
Survey Design and Web Hosting Sites
Online Panel Providers 4

39. Process for Online Focus Groups
Chapter 9 Decision Support Systems and Marketing Research
Process for Online Focus Groups
Build a database of respondents via Web site screening questionnaire
Identify qualified individuals via
Develop a discussion guide
Moderator runs group by typing in questions online for all to see
Environment is similar to a chat room
Firm captures the text of the focus group 4

40. Advantages of Online Focus Groups
Chapter 9 Decision Support Systems and Marketing Research
Advantages of Online Focus Groups
Better participation rates
Cost-effectiveness
Broad geographic scope
Accessibility
Honesty
Notes:
Better participation rates: conducted over the course of days, participants less likely to pull out.
Cost-effectiveness: face-to-face groups incur costs for facility rental, airfare, hotel, food, etc.
Broad geographic scope: time is flexible online, providing a world-wide respondent pool.
Accessibility: give access to participants who might otherwise be difficult to recruit.
Honesty: anonymity makes respondents tend to talk more freely. 4

41. Web Community Research
Chapter 9 Decision Support Systems and Marketing Research
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
Notes:
Additionally, Web communities help companies create a customer-focused organization by putting employees into direct contact with consumers, as well as providing cost effective, flexible research. 4

42. Role of Consumer-Generated Media in Marketing Research
Chapter 9 Decision Support Systems and Marketing Research
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
Notes:
Consumer-generated media (CGM) Is that media that consumers generate themselves and share among themselves. 4

43. Discuss the growing importance of scanner-based research
Chapter 9 Decision Support Systems and Marketing Research
Scanner-Based Research
Discuss the growing importance of
scanner-based research 5

44. Scanner-Based Research
Chapter 9 Decision Support Systems and Marketing 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.
BehaviorScan
InfoScan
Notes:
Scanner-based research is used for gathering information by monitoring the marketing mix and purchase behavior of a single group of respondents.
The two major scanner-based suppliers are Information Resources, Inc. and the A.C. Nielson Company. IRI’s first product is called BehaviorScan, which uses assigned ID cards to track grocery and drugstore purchases of household panel participants.
InfoScan is IRI’s tracking service for consumer goods. Data are collected weekly from more than 70,000 supermarkets, drugstores, and mass merchandisers.
Research program that tracks the purchases of 3,000 households through store scanners in each research market
Sales-tracking service for the consumer packaged-goods industry 5

45. Scanner-Based Research
Chapter 9 Decision Support Systems and Marketing Research
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.
Data collected weekly from more than 70,000 supermarkets, drugstores & mass merchandisers 5

46. Explain when marketing research should be conducted
Chapter 9 Decision Support Systems and Marketing Research
When to Conduct Marketing Research
Explain when marketing research should be conducted 6

47. When Should Marketing Research Be Conducted?
Chapter 9 Decision Support Systems and Marketing Research
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 6

48. of competitive intelligence
Chapter 9 Decision Support Systems and Marketing Research
Competitive Intelligence
Explain the concept
of competitive intelligence 7

49. Competitive Intelligence
Chapter 9 Decision Support Systems and Marketing Research
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.
Notes:
Specifically, competitive intelligence can help identify the advantage and play a major role in determining how it is achieved. 7

50. Sources of Competitive Intelligence
Chapter 9 Decision Support Systems and Marketing Research
Sources of Competitive Intelligence
Internet
Company Salespeople
Industry Experts
CI Consultants
Government Agencies
UCC Filings
Suppliers
Periodicals
Yellow Pages
Trade Shows 7