Decision Support Systems and Marketing Research Chapter 7 Decision Support Systems and Marketing Research Decision Support Systems and Marketing Research Chapter 7 Prepared by Deborah Baker Texas Christian University Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Learning Objectives 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. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Learning Objectives (continued) 4. Discuss the profound impact of the Internet on marketing research. 5. Discuss the growing importance of scanner-based research. 6. Explain the concept of competitive intelligence. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Chapter 7 Decision Support Systems and Marketing Research Learning Objective 1 On Line http://www.fws.gov http://www.duckstamp.com Explain the concept and purpose of a marketing decision support system. On Line U.S. Fish and Wildlife Service How well is the government marketing duck stamps over the Internet? Does the U.S. Fish and Wildlife Service Web site reflect the desire to market the stamps to environmental groups? Notes: Marketing decision making relies on accurate and timely information. Good information is used to maximize sales,to use scarce company resources efficiently, and to prepare and adjust marketing plans. The system used for gathering marketing information is called a marketing decision support system. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Decision Support System 1 DSS An interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

DSS System Characteristics Chapter 7 Decision Support Systems and Marketing Research DSS System Characteristics 1 Characteristics of a DSS System Interactive Flexible Discovery-Oriented Notes: The characteristics of a DSS system are: Interactive: Simple instructions are given to the system and immediate results are given. No computer programming or scheduled reports are needed. Flexible: A DSS can manipulate data in various ways, and be presented according to the user’s needs. Discovery-oriented: Managers can probe for trends and ask “what if” questions. Accessible: A DSS is easy to use even with minimal computer skills. Accessible Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Chapter 7 Decision Support Systems and Marketing Research Database Marketing 1 The creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns. Notes: The fastest-growing use of DSSs is for database marketing. It is usually the key for micromarketing, which relies on specific market information. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Define marketing research and explain its importance to Learning Objective 2 Define marketing research and explain its importance to marketing decision making. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Chapter 7 Decision Support Systems and Marketing Research Marketing Research 2 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 changes. Marketing research is a main data source for management information systems and DSS. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Roles of Marketing Research Chapter 7 Decision Support Systems and Marketing Research Roles of Marketing Research 2 Diagnostic Predictive Descriptive Gathering and presenting factual statements Explaining data Attempting to estimate the results of a planned marketing decision Notes: 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? Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Management Uses of Marketing Research Chapter 7 Decision Support Systems and Marketing Research Management Uses of Marketing Research 2 On Line http://british-airways.com Improve the quality of decision making Trace problems Focus on keeping existing customers Understand the ever-changing marketplace On Line British Airways How are the changes in British Airways’ services reflected by the marketing on its Web site? Does the company use the site to collect marketing data? If so, how? If not, how would you suggest it do this? Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Chapter 7 Decision Support Systems and Marketing Research Learning Objective 3 Describe the steps involved in conducting a marketing research project. Notes: The scope of a marketing research project may range from millions of dollars to several hundred dollars. In any case, the same general research process should be followed. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

The Marketing Research Process Chapter 7 Decision Support Systems and Marketing Research The Marketing Research Process 3 Collect Data Specify Sampling Procedure Plan Design/ Primary Data Define Problem Analyze Prepare/ Present Report Follow Up Notes: Exhibit 7.1 traces the steps in the marketing research process. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Marketing Research 3 Marketing Research Problem Objective Management Chapter 7 Decision Support Systems and Marketing Research Marketing Research 3 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. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Data previously collected for any purpose other Chapter 7 Decision Support Systems and Marketing Research Secondary Data 3 Data previously collected for any purpose other than the one at hand. Notes: Secondary data is a valuable tool particularly in the problem/opportunity identification stage. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Sources of Secondary Data 3 Internal Corporate Information Government Agencies Trade and Industry Associations Marketing Research Firms Commercial Publications News Media Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Advantages of Secondary Data 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 Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Disadvantages of Secondary Data 3 May not be on target with the research problem Quality and accuracy of data may pose a problem Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

The New Age of Secondary Information: The Internet Chapter 7 Decision Support Systems and Marketing Research The New Age of Secondary Information: The Internet 3 On Line http://www.coca-colastore.com www Search Engines and Directories Sites of Interest to Marketing Researchers Discussion Groups Periodical, Newspaper, and Book Databases On Line Coca-Cola Store When you are asked for your opinion on the Coke Store Web site, is Coca-Cola doing marketing research, or gathering information for a DSS? Read the whole survey before deciding. Which did you pick and why? Notes: Before the availability of the Internet’s widely accessible information, collection of secondary information was tedious and boring, often requiring visits to the library or communication with government agencies and trade associations. By typing a description of the desired secondary data into a Web browser, the Internet may provide a wide range of information. However, keep in mind that the Internet is a self-publishing medium and the information quality may vary. Exhibit 7.2 in the textbook provides a list of Internet sources for obtaining secondary data. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Chapter 7 Decision Support Systems and Marketing Research Research Design 3 Specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed. Notes: Good secondary data can help researchers conduct a thorough situation analysis, and can list their unanswered questions and rank them. The research design then specifies which questions must be answered, the method of collection, and how the data will be analyzed. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Planning the Research Design 3 Which research questions must be answered? How and when will data be gathered? How will the data be analyzed? s ? Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Information collected for the first time. Can be Primary Data 3 Information collected for the first time. Can be used for solving the particular problem under investigation. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Advantages of Primary Data Chapter 7 Decision Support Systems and Marketing Research Advantages of Primary Data 3 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. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Disadvantages of Primary Data Chapter 7 Decision Support Systems and Marketing Research Disadvantages of Primary Data 3 Expensive 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. Disadvantages are usually offset by the advantages of primary data! Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Survey Research 3 The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Forms of Survey Research Chapter 7 Decision Support Systems and Marketing Research Forms of Survey Research 3 On Line http:/www.hersheys.com Focus Groups Executive Interviews Mail Surveys Telephone Interviews (Home and Central Location) Mall Intercept Interviews In-Home Interviews On Line: Hershey Go to Hershey’s and read its Idea Submission Policy under Consumer Info. Do you think the policy is a good idea? 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. 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. Mail Surveys: Benefits are low cost, elimination of interviews, centralized control, and anonymity for respondents. However, mail questionnaires usually produce low response rates. 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. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Mall Intercept Interview 3 Survey research method that involves interviewing people in the common areas of shopping malls. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Executive Interviews 3 A type of survey that involves interviewing businesspeople at their offices concerning industrial products or services. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Focus Group 3 Seven to ten people who participate in a group discussion led by a moderator. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Advantages of On-Line Focus Groups Chapter 7 Decision Support Systems and Marketing Research Advantages of On-Line Focus Groups 3 Speed Cost-effectiveness Broad geographic scope Accessibility Honesty Notes: Focus groups are an excellent method to brainstorm new product ideas or to screen concepts for new products. On-line or cyber focus groups are a new development in qualitative research. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Characteristics of Traditional Forms of Survey Research 3 Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Open-Ended Question Closed-Ended Scaled- Response Chapter 7 Decision Support Systems and Marketing Research Questionnaire Design 3 Open-Ended Question Closed-Ended Scaled- Response 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. A closed-ended question designed to measure the intensity of a respondent’s answer. Notes: Questionnaires contain three basic types of questions: Open-ended questions Closed-ended questions Scaled-response questions. Examples of these types of questions are shown on the next slide and in Exhibit 7.5. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Types of Questions in Questionnaire Design Chapter 7 Decision Support Systems and Marketing Research Types of Questions in Questionnaire Design 3 Notes: Exhibit 7.5 Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Qualities of Good Questionnaires Reasonable Terminology Chapter 7 Decision Support Systems and Marketing Research Questionnaire Design 3 On Line http://www.createsurvey.com Qualities of Good Questionnaires Clear and Concise No Ambiguous Language Unbiased Reasonable Terminology On Line CreateSurvey.com Design a marketing questionnaire to post on your class Web site using the tools offered by Create Survey. Visit the demo polls on the site for ideas and tips. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

A research method that relies on three types of observation: Chapter 7 Decision Support Systems and Marketing Research Observation Research 3 On Line http://www.bmiltd.com A research method that relies on three types of observation: people watching people people watching an activity machines watching people On Line Brand Marketing International Learn more about mystery shopping by requesting a mystery shopper kit from BMI and reading the shopper application. Notes: Observation research depends on watching what people do. It may be conducted by human observers or machines. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Observational Situations Chapter 7 Decision Support Systems and Marketing Research Observational Situations 3 Notes: Exhibit 7.6 shows examples of various observational situations. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Observation Research 3 Types of 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 Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Researchers posing as customers who gather observational data about Mystery Shoppers 3 Researchers posing as customers who gather observational data about a store and collect data about customer/employee interactions. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

A method a researcher uses to gather primary data. Chapter 7 Decision Support Systems and Marketing Research Experiment 3 A method a researcher uses to gather primary data. Notes: While gathering primary data, the researcher alters one or more variables, such as price, advertising theme, package design, while observing the effects of those alterations on another variable, such as sales. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

A subset from a large population. The population from which Chapter 7 Decision Support Systems and Marketing Research Sampling Procedure 3 Sample Universe A subset from a large population. 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 must be determined if the sample must be representative of the population. If the answer is yes, a probability sample is needed. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Probability Sample Random Chapter 7 Decision Support Systems and Marketing Research Probability Samples 3 Probability Sample A sample in which every element in the population has a known statistical likelihood of being selected. Random A sample arranged so that every element of the population has an equal chance of being selected. Notes: The most desirable feature of a probability sample is that statistical rules can be used to ensure that the sample represents the population. One type of probability sample is the random sample—where every element of the population has an equal chance of being selected as part of the sample. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Nonprobability Samples Chapter 7 Decision Support Systems and Marketing Research Nonprobability Samples 3 Nonprobability Sample Convenience 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. Notes: A nonprobability sample is a sample where little or no attempt is made to get a representative cross section of the population. A common form of nonprobability sample is the convenience sample, a selection of convenient respondents such as employees, relatives, or friends. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Non-Probability Samples Sampling Procedure 3 Universe Sample Probability Samples Non-Probability Samples Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Non-Probability Samples Chapter 7 Decision Support Systems and Marketing Research Types of Samples 3 Probability Samples Simple Random Sample Stratified Sample Cluster Sample Systematic Sample Non-Probability Samples Convenience Sample Judgment Sample Quota Sample Snowball Sample Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Chapter 7 Decision Support Systems and Marketing Research Types of Samples 3 Notes: Exhibit 7.7 describes types of probability and nonprobability samples. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Types of Errors 3 Measurement Error Sampling Frame Random Chapter 7 Decision Support Systems and Marketing Research Types of Errors 3 Measurement Error Sampling Frame Random 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 because the selected sample is an imperfect representation of the overall population. Notes: Whenever a sample is used in marketing research, major types of errors may occur: measurement error and sampling error. Frame error arises if the sample drawn from a population differs from the target population. Random error occurs when the selected sample is an imperfect representation of the overall population. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Chapter 7 Decision Support Systems and Marketing Research Field Service Firm 3 On Line http://www.greenfieldonline.com A firm that specializes in interviewing respondents on a subcontracted basis. On Line Greenfield On-line Find out how on-line focus groups work by signing up to be a participant. Check out some of Greenfield’s on-line surveys in the Survey Center. Notes: Most primary data is collected by marketing research field service firms. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Provide: Focus group facilities Mall intercept locations Chapter 7 Decision Support Systems and Marketing Research Field Service Firms 3 Provide: Focus group facilities Mall intercept locations Test product storage Kitchen facilities Retail audits Notes: Field service firms conduct interviews, provide focus-group facilities, mall intercept locations, test product stores, and kitchen facilities to prepare test food products. Detailed field instructions should be developed for every job to ensure uniformity among subcontractors. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Chapter 7 Decision Support Systems and Marketing Research Cross-Tabulation 3 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. Notes: After data is collected, the next step is to analyze data. The purpose of data analysis is to interpret and draw conclusions from the collected data. Data is organized by one-way frequency counts, cross-tabulations, and sophisticated statistical analysis. One-way frequency counts record the responses to a question. They provide a general picture of the study’s results. A cross-tab looks at the associations between certain responses, such as association between gender and product choice. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Preparing and Presenting the Report Chapter 7 Decision Support Systems and Marketing Research Preparing and Presenting the Report 3 Concise statement of the research objectives Explanation of research design Summary of major findings Conclusion with recommendations Notes: After data analysis is completed, the report is prepared, and conclusions and recommendations are communicated to management. The report should be tailored to the audience, beginning with a statement of research objectives, followed by a brief explanation of the research design. A summary of major findings is next, followed by a conclusion with recommendations. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Were the recommendations followed? Chapter 7 Decision Support Systems and Marketing Research Following Up 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? Notes: The final step in the marketing research process is to follow up. The researcher should determine why management did or did not carry out the recommendations of the report. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Discuss the profound impact of the Internet on marketing research. Learning Objective 4 Discuss the profound impact of the Internet on marketing research. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Allows better and faster decision making Chapter 7 Decision Support Systems and Marketing Research Impact of the Internet 4 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 labor- and time-intensive research activities Notes: By 2002, Internet marketing research will account for about 50 percent of all marketing research revenue in the U.S. due to the reasons shown on this slide. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Advantages of Internet Surveys Chapter 7 Decision Support Systems and Marketing Research Advantages of Internet Surveys 4 Contact with the hard-to-reach Improved respondent participation Personalized questions and data Reduced costs Rapid development, Real-time reporting Notes: Rapid development, real-time reporting: Survey results can be tabulated and broadcast in a much shorter time frame. Reduced costs: Costs can be cut by 25 to 40 percent with results in half the time required for traditional telephone surveys. Personalized questions and data: Personalization allows relevance to each respondent’s own situation, thus speeding the response process. Improved respondent participation: Internet surveys take half as much time to complete as phone interviews and can be accomplished at the respondent’s convenience. Contact with the hard-to-reach: Doctors, management, and high-income professionals are among the most surveyed and the most difficult to reach. Many of these groups are well represented on-line. On-line and off-line studies compare quite favorably and lead to the same business decisions. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Unrestricted Internet Sample Screened Recruited 4 Unrestricted Internet Sample Screened Recruited 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. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Other Uses of the Internet by Marketing Researchers 4 Viewing of presentations of marketing research surveys Publication and distribution of reports Data management and on-line analysis Collaboration in the management of a research project Distribution of requests for Proposals (RFPs) and proposals Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Discuss the growing importance of scanner-based research. Chapter 7 Decision Support Systems and Marketing Research Learning Objective 5 Discuss the growing importance of scanner-based research. Notes: Scanner-based research is used for gathering information by monitoring the marketing mix and purchase behavior of a single group of respondents. The two major scanner-based suppliers are Information Resources, Inc. and the A.C. Nielson Company. IRI’s first product is called BehaviorScan, where household panel participants shop with an ID card to track grocery and drugstore purchases. InfoScan is IRI’s tracking service for consumer goods. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Scanner-Based Research 5 BehaviorScan InfoScan 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. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

When Should Marketing Research be Conducted? 5 Where there is a high level of uncertainty When value of research information exceeds the cost of generating the information Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Explain the concept of competitive intelligence. Learning Objective 6 Explain the concept of competitive intelligence. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Competitive Intelligence Chapter 7 Decision Support Systems and Marketing Research Competitive Intelligence 6 On Line http://www.scip.org An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors. On Line Society for Competitive Intelligence Professionals (SCIP) Find out more about competitive intelligence at the SCIP Web site. Research a career in CI by checking out the job marketplace at SCIP. Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Competitive Intelligence 6 Can help identify a competitor’s advantage Can help determine how the competitor’s advantage was achieved Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Advantages of Competitive Intelligence 6 Predict changes in business relationships Identify marketplace opportunities Guard against threats Forecast a competitor’s strategy Discover new or potential competitors Learn from the success or failure of others Learn about new technologies and impact of government regulations Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Sources of Competitive Intelligence 6 Internet Company Personnel Experts CI Consultants Government Agencies UCC Filings Suppliers Newspapers/Periodicals Yellow Pages Trade Shows Chapter 7 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning