1. Insert Chapter Picture Here Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 1 Designed by Eric Brengle B-books, Ltd. CHAPTER 8 Prepared by Deborah Baker Texas Christian University Essentials of Marketing Lamb, Hair, McDaniel 6 Decision Support Systems and Marketing Research

2. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 2 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 LO I LO 2 LO 3

3. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 3 Learning Outcomes Discuss the profound impact of the Internet on marketing research Discuss the growing importance of scanner-based research Explain the concept of competitive intelligence LO 5 LO 6 LO 4

4. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 4 Explain the concept and purpose of a marketing decision support system Marketing Decision Support Systems LO I

5. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 5 Marketing Decision Support Systems Decision Support Systems An interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions. LO I

6. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 6 LO I Interactive Flexible Discovery-Oriented Accessible DSS System Characteristics

7. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 7 Marketing Decision Support Systems 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. LO I

8. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 8 REVIEW LEARNING OUTCOME Marketing Decision Support Systems LO I

9. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 9 Define marketing research and explain its importance to marketing decision making The Role of Marketing Research LO 2

10. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 10 Marketing Research The process of planning, collecting, and analyzing data relevant to a marketing decision. LO 2 The Role of Marketing Research

11. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 11 LO 2 Marketing Research Studies Products Advertising Prices Packages Names and Logos Services Buying habits Colors Uses Awareness Familiarity New concepts Traffic patterns Wants Needs Politics

12. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 12 LO 2 Diagnostic Predictive Descriptive  Gathering and presenting factual statements  Explaining data  “What if?” The Role of Marketing Research

13. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 13 LO 2 Management Uses of Marketing Research  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

14. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 14 REVIEW LEARNING OUTCOME Marketing Research and Its Importance LO 2 Why marketing research?  Improve quality of decision making  Trace problems  Focus on keeping existing customers  Understand changes in marketplace

15. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 15 Describe the steps involved in conducting a marketing research project Steps in a Marketing Research Project LO 3

16. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 16 The Marketing Research Process LO 3 Collect Data Collect Data Specify Sampling Procedure Specify Sampling Procedure Plan Design/ Primary Data Plan Design/ Primary Data Define Problem Define Problem Analyze Data Analyze Data Prepare/ Present Report Prepare/ Present Report Follow Up 1 2 3 4 5 6 7

17. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 17 LO 3 Marketing Research Marketing Research Problem Marketing Research Problem Marketing Research Objective Marketing Research Objective Management Decision Problem Management Decision Problem 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.

18. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 18 LO 3 Secondary Data Data previously collected for any purpose other than the one at hand. Secondary Data

19. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 19 LO 3 Government Agencies Trade and Industry Associations Business Periodicals News Media Internal Corporate Information Sources of Secondary Data Online http://www.coca-colastore.com

20. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 20 LO 3  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 Advantages of Secondary Data

21. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 21 LO 3 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

22. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 22 LO 3 The New Age of Secondary Information: The Internet 1 1 2 2 3 3 4 4 5 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

23. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 23 LO 3 Which research questions must be answered? How and when will data be gathered? How will the data be analyzed? ? Planning the Research Design

24. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 24 LO 3 Primary Data Information collected for the first time. Can be used for solving the particular problem under investigation.

25. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 25 LO 3  Answers a specific research question  Data are current  Source of data is known  Secrecy can be maintained Advantages of Primary Data

26. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 26 LO 3 Disadvantages of Primary Data  Expensive  “Piggybacking” may confuse respondents  Quality declines if interviews are lengthy  Reluctance to participate in lengthy interviews Disadvantages are usually offset by the advantages of primary data.

27. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 27 LO 3 Survey Research The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes.

28. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 28 LO 3 Focus Groups Executive Interviews Mail Surveys Telephone Interviews Mall Intercept Interviews In-Home Interviews Forms of Survey Research

29. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 29 LO 3 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. Forms of Survey Research

30. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 30 LO 3 Focus Groups Forms of Survey Research Seven to ten people who participate in a group discussion led by a moderator.

31. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 31 LO 3 Questionnaire Design Open-Ended Question Open-Ended Question Closed-Ended Question Closed-Ended Question Scaled- Response Question 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. 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.

32. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 32 LO 3 Questionnaire Design Clear and concise No ambiguous language Unbiased Reasonable terminology Only one question Online http://www.createsurvey.com

33. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 33 LO 3 Observation Research A research method that relies on three types of observation:  people watching people  people watching an activity  machines watching people

34. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 34 LO 3 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 Observational Situations Online http://www.bmiltd.com

35. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 35 LO 3 Ethnographic Research The study of human behavior in its natural context; involves observation of behavior and physical setting.

36. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 36 LO 3 The Sampling Procedure Sample Universe A subset from a large population. The population from which a sample will be drawn. The population from which a sample will be drawn.

37. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 37 LO 3 Universe Sample Probability Samples Non-Probability Samples Sampling Procedure

38. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 38 LO 3 Types of Samples Probability Samples Simple Random Sample Stratified Sample Cluster Sample Systematic Sample Non-Probability Samples Convenience Sample Judgment Sample Quota Sample Snowball Sample

39. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 39 LO 3 Probability Samples Probability Sample Probability Sample 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 chance of being selected.

40. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 40 LO 3 Nonprobability Samples Nonprobability Sample Nonprobability Sample 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.

41. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 41 LO 3 Types of Errors Measurement Error Measurement 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 Sampling Error Sampling Error Error when a sample somehow does not represent the target population. Frame Error Frame Error 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. Random Error Random Error 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.

42. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 42 LO 3 Field Service Firms  Focus group facilities  Mall intercept locations  Test product storage  Kitchen facilities  Retail audits Provide:

43. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 43 LO 3 Cross- Tabulation Analyzing the Data 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.

44. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 44  Concise statement of the research objectives  Explanation of research design  Summary of major findings  Conclusion with recommendations Preparing and Presenting the Report LO 3

45. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 45 Following Up LO 3  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?

46. Copyright ©2009, Cengage Learning. All rights reserved Chapter 8 46 REVIEW LEARNING OUTCOME LO 3 Steps in a Marketing Research Project