1. 9 MKTG CHAPTER Marketing Research
Chapter 8 Decision Support Systems and Marketing Research
MKTG 9
CHAPTER
Marketing Research

2. The Role of Marketing Research
Chapter 8 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.
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3. Marketing Research Types
Chapter 8 Decision Support Systems and Marketing Research
Marketing Research Types
Diagnostic (Exploratory)
Predictive (Causal)
Descriptive
Gathering and presenting factual statements
Explaining data
“What if?”
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 marketing decision?
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4. The Marketing Research Process
Chapter 8 Decision Support Systems and Marketing Research
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Collect
Data
Specify
Sampling
Procedure
Plan Design/
Primary Data
Define
Problem
Analyze
Prepare/
Present
Report
Follow Up 2 3 4 5
Notes:
Exhibit 8.1 traces the steps in the marketing research process.
The research process begins with the recognition of a marketing problem or opportunity. As changes occur in the firm’s external environment, marketing managers must decide on changes to the existing marketing mix. 6 7

5. Marketing Research LO3 Marketing Research Problem Objective Management
Chapter 8 Decision Support Systems and Marketing Research
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Marketing
Research
Problem
Objective
Management
Decision
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.
Notes:
The marketing research problem is information oriented.
The marketing research objective is to provide decision-making information.
In contrast, the management decision problem is action oriented.

6. Secondary Data LO3 Secondary Data Sources: Internal vs. External
Chapter 8 Decision Support Systems and Marketing Research
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Secondary Data
Data previously collected for any purpose other than the one at hand.
Sources:
Internal vs. External
Notes:
Secondary data is a valuable tool particularly in the problem/opportunity identification stage.

7. Advantages of Secondary Data
Chapter 8 Decision Support Systems and Marketing Research
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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

8. Disadvantages of Secondary Data
Chapter 8 Decision Support Systems and Marketing Research
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May not give adequate detailed information
May not be on target with the research problem
Quality and accuracy of data may pose a problem

9. LO3 Primary Data Primary Data
Chapter 8 Decision Support Systems and Marketing Research
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Primary Data
Information collected for the first time. Can be used for solving the particular problem under investigation.

10. Advantages of Primary Data
Chapter 8 Decision Support Systems and Marketing Research
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Answers a specific research question
Data are current
Source of data is known
Secrecy can be maintained
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.

11. Disadvantages of Primary Data
Chapter 8 Decision Support Systems and Marketing Research
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Disadvantages are usually offset by the advantages of primary data.
Expensive
“Piggybacking” may confuse respondents
Quality declines if interviews are lengthy
Reluctance to participate in lengthy interviews
Notes:
The cost of primary data may range from a few thousand dollars for a limited survey to several million for a nationwide study.
To save money, firms may cut back on the number of interviews, or piggyback studies by gathering data on two different projects using one questionnaire.

12. Planning the Research Design
Chapter 8 Decision Support Systems and Marketing Research
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Which research questions must be answered?
How and when will data be gathered?
How will the data be analyzed? ?

13. Forms of Survey Research
Chapter 8 Decision Support Systems and Marketing Research
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In-Home Interviews
Mail Surveys
Mall Intercept Interviews
Executive Interviews
Telephone Interviews
Focus Groups
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.
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: Survey involves 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.
Internet Surveys

14. Focus Groups LO4 Advantages Speed Uses small groups Cost-effectiveness
Chapter 8 Decision Support Systems and Marketing Research
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Used to collect diagnostic info.
Uses small groups
Uses open-ended questions
Often lasts 1 – 2 hours
Often videotaped
Listening for responses as well as watching reactions and body language
Advantages
Speed
Cost-effectiveness
Broad geographic scope
Accessibility
Honesty

15. Observational Research
Chapter 8 Decision Support Systems and Marketing Research
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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
Online
Brand Marketing International
Learn more about mystery shopping by requesting a mystery shopper kit from BMI and reading its shopper application.
Notes:
Observation research depends on watching what people do. It may be conducted by human observers or machines.
Online

16. A subset from a large population. The population from which
What is Sampling?
Chapter 8 Decision Support Systems and Marketing Research
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Sample
A subset from a large population.
Universe
The population from which
a sample will be drawn.
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 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.

17. Non-Probability Samples
Types of Samples
Chapter 8 Decision Support Systems and Marketing Research
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Probability Samples
Simple Random Sample
Stratified Sample
Cluster Sample
Systematic Sample
Non-Probability Samples
Convenience Sample
Judgment Sample
Quota Sample
Snowball Sample
Notes:
Exhibit 8.4 describes each of these types of samples.

18. Marketing Decision Support Systems
Chapter 8 Decision Support Systems and Marketing Research
Marketing Decision Support Systems
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