1. Prepared by Angela Zigras, Seneca College Deborah Baker, Texas Christian University DECISION SUPPORT SYSTEMS AND MARKETING RESEARCH

2. You will learn to... 1.Explain the concept and purpose of a marketing decision support system. 2. Define marketing research and explain its importance to marketing decision making. 3. Describe the steps involved in conducting a marketing research project.

3. You will learn to... 4. Discuss the growing importance of scanner-based research. 5. Explain when marketing research should and should not be conducted.

4. Marketing Intelligence Everyday information about developments in the marketing environment that managers use to prepare and adjust marketing plans.

5. Decision Support System An interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions.

6. DSS System Characteristics Characteristics of a DSS System Characteristics of a DSS System Interactive Flexible Discovery-Oriented Accessible

7. Database Marketing The creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns.

8. Marketing Research The process of planning, collecting, and analyzing data relevant to a marketing decision.

9. Defining Market Research (1)  Research is the systematic and objective approach to investigate a specific problem that needs a solution.  Research is a process by which a series of well thought out and carefully executed activities enable one to enquire, investigate or examine a problem to discover new facts to deal with the problem.

10. Defining Research (2)  Systematic : well organised and planned  Objectivity : unbiased and unemotional  The information is used to identify and define opportunities and problems, and make recommendations on solutions  Market Research links consumer, customer and the public to the marketers through information.  Generate, refine and evaluate marketing actions, performance and the marketing process.

11. Issues to consider with Problem definition  Past information (secondary data/MIS)  Resources and constraints  Objectives  Buyer behaviour (human or organisational)  Legal environment  Economic environment  Marketing and technological skills PPRROOBBLLEEMMPPRROOBBLLEEMM

12. Roles of Marketing Research Descriptive Diagnostic Predictive Marketing Research has three roles:

13. Diagnostic Predictive Descriptive  Gathering and presenting factual statements  Explaining data  Attempting to estimate the results of a planned marketing decision Roles of Marketing Research

14. Management Uses of Marketing Research  Improve the quality of decision making  Trace problems  Focus on keeping existing customers  Understand the ever-changing marketplace

15. Steps in a Marketing Research Project CollectDataCollectData Plan Design/ Primary Data Plan Design/ Primary Data SpecifySamplingProcedureSpecifySamplingProcedureDefineProblemDefineProblemAnalyzeDataAnalyzeData Prepare/PresentReportPrepare/PresentReport Follow Up

16. Marketing Research MarketingResearchProblemMarketingResearchProblemMarketingResearchObjectiveMarketingResearchObjective ManagementDecisionProblemManagementDecisionProblem 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.

17. Objective setting example 1  Management Problem: Should a new product be launched?  Research Objective: Determine consumer preference and purchase intentions for the proposed new product.

18. Objective setting example 2  Management Problem: Should the ad campaign be changed?  Research Objective: To determine effectiveness of the current campaign.

19. Objective setting example 3  Management Problem: Should the price of the brand be increased?  Research Objective: To determine the price elasticity of demand and the impact on sales and profits of various levels of price changes.

20. Sources of Secondary Data Marketing Research Firms Trade and Industry Associations National Research Bureaus Professional Associations Commercial Publications Internal Information

21. Secondary Data Data previously collected for any purpose other than the one at hand.

22. 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 basis of comparison for other data

23. Disadvantages of Secondary Data  May not be on target with the research problem  Quality and accuracy of data may pose a problem

24. The New Age of Secondary Information The Internet www  Search Engines and Directories  Sites of Interest to Marketing Researchers  Discussion Groups  Periodical, Newspaper, and Book Databases

25. Basic Types of Directories  Academic and Professional Directories  Commercial Portals

26. Research Design Specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed.

27. Planning the Research Design Which research questions must be answered? How and when will data be gathered? How will the data be analyzed? ? ?

28. Primary Data Information collected for the first time. Can be used for solving the particular problem under investigation.

29. Advantages of Primary Data  Answers a specific research question  Data are current  Source of data is known  Secrecy can be maintained

30. Disadvantages of Primary Data  Expensive  Quality declines if interviews are lengthy  Reluctance to participate in lengthy interviews

31. Survey Research The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes.

32. Forms of Survey Research Focus Groups Internet Surveys Mail Surveys Telephone Interviews (Home and Central Location) Mall Intercept Interviews Computer-assisted Personal Interviewing

33. Mall Intercept Interview Survey research method that involves interviewing people in the common areas of shopping malls.

34. Computer-Assisted Personal Interviewing An interviewing method in which the interviewer reads the questions from a computer screen and enters the respondent’s data directly into the computer.

35. Impact of the Internet  Allows better and faster decision making  Improves ability to respond quickly to customer needs and market shifts  Makes follow-up studies and research easier  Slashes labour-and time-intensive research activities

36. Advantages of Internet Surveys Contact with the hard-to-reach Contact with the hard-to-reach Improved respondent participation Improved respondent participation Personalized questions and data Personalized questions and data Reduced costs Rapid development, Real-time reporting Rapid development, Real-time reporting Advantages of Internet Surveys Advantages of Internet Surveys

37. Internet Samples Unrestricted Internet Sample Unrestricted Internet Sample Screened Internet Sample Screened Internet Sample Recruited Internet Sample Recruited Internet Sample A survey in which anyone with a computer and modem can fill out the questionnaire. A survey in which anyone with a computer and modem can fill out the questionnaire. An Internet sample with quotas based on desired sample characteristics. A sample in which respondents are prerecruited and must qualify to participate. A sample in which respondents are prerecruited and must qualify to participate.

38. Other Uses of the Internet Other Internet Uses by Marketing Researchers Other Internet Uses by Marketing Researchers Viewing of presentations of marketing research surveys Viewing of presentations of marketing research surveys Publication and distribution of reports Publication and distribution of reports Data management and on-line analysis Data management and on-line analysis Collaboration in the management of a research project Collaboration in the management of a research project Distribution of requests for proposals Distribution of requests for proposals

39. Focus Group Seven to ten people who participate in a group discussion led by a moderator.

40. Advantages of On-Line Focus Groups  Speed  Cost-effectiveness  Broad geographic scope  Accessibility  Honesty

41. 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.

42. Questionnaire Design Qualities of Good Questionnaires Clear and Concise No Ambiguous Language Unbiased Reasonable Terminology

43. Observation Research A research method that relies on three types of observation:  people watching people  people watching an activity  machines watching people

44. Observation Research Mystery Shoppers One-Way Mirrors Types of Observation Research Audits Machines Watching People People Watching People People Watching an Activity Traffic Counters Passive People Meter

45. Mystery Shoppers Researchers posing as customers who gather observational data about a store and collect data about customer/employee interactions.

46. Experiment A method a researcher uses to gather primary data.

47. 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.

48. 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 change of being selected.

49. 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 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.

50. Sampling Procedure Universe Sample Probability Samples Non-Probability Samples

51. Types of Errors Errors Associated with Sampling Errors Measurement Error Sampling Error Frame Error Random Error

52. Types of Errors Measurement Error Measurement Error Sampling Error Sampling Error Frame Error Frame Error Random Error Random 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 Error when a sample somehow does not represent the target population. 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. 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.

53. Field Service Firm A firm that specializes in interviewing respondents on a subcontracted basis.

54. Collecting Data  Focus group facilities  Mall intercept locations  Test product storage  Kitchen facilities  Retail audits Field Service Firms Provide

55. 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

56. 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.

57. Preparing and Presenting the Report  Concise statement of the research objectives  Explanation of research design  Summary of major findings  Conclusion with recommendations

58. Following Up  Were the recommendations followed?  Was sufficient decision-making information included in the report?  What could have been done to make the report more useful?

59. Scanner-Based Research A system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy.

60. When Should Marketing Research be Conducted?  Where there is a high level of uncertainty  When value of research information exceeds the cost of generating the information