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

2. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Marketing Information System (MIS) Organized for a continuous flow of information Gathering information Accessing information Analyzing information Development of intranets is speeding the adoption Multimedia information, not just numerical data Search engines make information easier to find Design of the MIS requires data processing expertise and marketing expertise Use of MIS is focused on making better marketing decisions Strategy planning Details of implementation Timely control procedures

3. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Decision Support System (DSS) A computer program—an interface—between the manager and the MIS Makes it easy to get needed information Search engines are a powerful tool for finding what’s needed Easy access to databases in a data warehouse Makes it easy to analyze the information May involve marketing models—to show the relationships among different marketing variables Is used as the manager is making decisions

4. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Examples of Uses of a Decision Support System Selecting target markets Competitive evaluation, such as changes in market share Customer analysis Sales analysis Cost analysis Analysis of responses to elements of marketing mix Forecasting

5. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Marketing Research Procedures to gather and analyze information for marketing decision making Focus is on new information not already available in the MIS or other secondary data sources May be handled inside the firm or by outside specialists Cooperation is needed between technical specialists and manager/decision makers

6. 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

7. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Primary and Secondary Data PRIMARY DATA: Information specifically collected to solve a current problem. Examples: surveys experiments observational studies SECONDARY DATA: Information that has previously been collected or published. Some examples: information from the Internet or a firm’s intranet data from Bureau of the Census computer databases internal reports industry trade associations

8. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Secondary Data Sources Inside Company Outside Company Observation Questioning Primary Data Sources All Data Sources 8-5 Exhibit 8-3 Sources of Data

9. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Before Gathering Primary Data A manager should determine: 1] Is is possible to reduce the uncertainty of this decision? 2] How much is that reduction of uncertainty worth? Is the value > cost? 3] Can I get information from the research fast enough to be useful?

10. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Five Situations When Marketing Research Not Needed 1. Information already available 2. Insufficient time frame 3. Inadequate resources 4. Costs outweigh the value of the research 5. Strategic importance of the problem Explain the differences between data and information Changing View of the Marketing Research Process

11. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Focus Group Interviews A popular type of qualitative research Involves a small group (usually 6 to 10 people) in a discussion—usually for about 1 hour A group leader ("interviewer") unobtrusively guides the discussion Designed to get in-depth, open-ended responses, not intended to be "representative" of larger market Group interaction stimulates thinking and reactions Analysis of results is subjective May involve videotaping and or “on-line sessions” and other technologies

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

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