For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter 8: Improving Decisions with Marketing Information

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Marketing Information Systems 8-3 Exhibit 8-1 Market Research Studies Internal Data Sources External Data Sources Databases Decision Support System (DSS) Marketing Manager Decisions Outcomes Marketing Models Information Technology Specialists Inputs ? Answers New Information Feedback Informatio n Sources Questions and Answers Decisio n Maker Result s

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Marketing Research Marketing research - procedures to develop and analyze new information to help marketing managers make decisions. When working with marketing researchers, managers must be able to explain problems and identify information needs. The scientific method, a decision-making approach that focuses on being objective and orderly in testing ideas before accepting them, is often used. This involves hypothesis testing.

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Defining the Problem Analyzing the Situation Getting Problem- Specific Data Inter- preting Data Solving the Problem Early Identification of Solution Feedback to Previous Steps 8-4 Exhibit 8-2 Marketing Research Process

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Define the Problem Most important and often most difficult step. Don’t confuse problems with symptoms. Develop hypotheses.

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Analyzing the Situation A situation analysis is an informal study of what is already available in the problem area. Ask colleagues (e.g., salespeople, middlemen, customers, managers) what they know about your situation. Search secondary data (next slide). Develop a research proposal - a plan that specifies what information will be obtained and how.

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Secondary Data Sources Inside Company e.g., intranet, sales and cost data,MIS Outside Company e.g., internet, libraries, universities Observation mechanical and personal approaches Questioning in-depth & focus group interviews, mail, phone, personal surveys, panels Primary Data Sources All Data Sources 8-5 Exhibit 8-3 Sources of Data

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Getting Problem-Specific Data Qualitative research - seeks in-depth, open- ended responses, not yes or no answers. focus group is the most popular type Quantitative research - seeks structured responses that can be summarized in numbers, like percentages, averages or other statistics.

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Secondary Data Sources Inside Company e.g., intranet, sales and cost data,MIS Outside Company e.g., internet, libraries, universities Observation mechanical and personal approaches Questioning in-depth & focus group interviews, mail, phone, personal surveys, panels Primary Data Sources All Data Sources 8-5 Exhibit 8-3 Sources of Data

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Getting Problem-Specific Data 8-6 Primary Methods for Collecting Survey Data Mail Telephone Personal Interview

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Key Issues in Data Interpretation Population Validity Conclusions Sample Interpreting Data 8-7

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Solving the Problem Use the research results to make marketing decisions.

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill How Much Information Do You Need? Research can cost a lot of money (e.g., $20,000 to $500,000). Must weigh the costs against the benefits. You never have complete information.