1 Lamb, Hair, McDaniel CHAPTER 9 Decision Support Systems and Marketing Research

2 There will be no questions on Marketing Decision Support Systems Marketing Decision Support Systems LO 1

3 The Role of Marketing Research Marketing Research The process of planning, collecting, and analyzing data relevant to a marketing decision. LO 2

4 Marketing Research Studies Products Advertising Prices Packages Names and Logos Services Buying habits Colors Uses Awareness Familiarity New concepts Traffic patterns Wants Needs Politics LO 2

5 The Role of Marketing Research Diagnostic Predictive Descriptive  Gathering and presenting factual statements  Explaining data  “What if?” LO 2

6 Beyond the Book 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 NOTE: Supplemental content – not in book. LO 2

7 Why marketing research?  Improve quality of decision making  Trace problems  Focus on keeping existing customers  Understand changes in marketplace The Importance of Marketing Research LO 2

8 There will be no questions on this topic Steps in a Marketing Research Project LO 3

9 Sources of Secondary Data Government Agencies Trade and Industry Associations Business Periodicals News Media Internal Corporate Information LO 3

10 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 LO 3

11 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 LO 3

12 Marketing Research Aggregators Provide small- to medium-sized companies with information they could not afford to research on their own Increases the revenue generated by large, expensive reports by slicing and repackaging them LO 3

13 Primary Data Information collected for the first time. Used for solving the particular problem under investigation. Advantages:  Answers a specific research question  Data are current  Source of data is known  Secrecy can be maintained LO 3

14 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. LO 3

15 Survey Research The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes. Survey Research LO 3

16 Forms of Survey Research Focus Groups Executive Interviews Mail Surveys Telephone Interviews Mall Intercept Interviews In-Home Interviews LO 3

17 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. LO 3

18 Questionnaire Design On the other hand, unless the researcher designs the closed-ended question very carefully, an important choice may be omitted. Closed-ended and scaled-response questions are easier to tabulate than open-ended questions because response choices are fixed. Beyond the Book NOTE: Supplemental content – not in book. LO 3

19 Questionnaire Design Clear and concise No ambiguous language Unbiased Reasonable terminology Only one question Online LO 3

20 Observation Research A research method that relies on three types of observation:  people watching people  people watching an activity  machines watching people Observation Research LO 3

21 Observational Situations 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 LO 3

22 Virtual Shopping Allows customers to “shop” with realistic complexity and variety Tests can be altered quickly Computer automatically collects data LO 3

23 Collecting the Data  Focus group facilities  Mall intercept locations  Test product storage  Kitchen facilities  Retail audits provide: Field Service Firms provide: LO 3

24 Discuss the profound impact of the Internet on marketing research The Profound Impact of the Internet on Marketing Research LO 4

25 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 tracking research easier  Slashes labor- and time-intensive research activities and costs LO 4

26 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 LO 4

27 Uses of the Internet by Marketing Researchers Other types of marketing research Conduct focus groups Administer surveys Online LO 4

28 Methods of Collecting Online Surveys Web Survey Systems Survey Design and Web Hosting Sites Online Panel Providers LO 4

29 Discuss the growing importance of scanner-based research Scanner-Based Research LO 5

30 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. BehaviorScan InfoScan Panel information from Specific groups of people, enables researchers to manipulate variables and see real results Aggregate consumer information on all bar-coded products LO 5

31 LO 5 Scanner-Based Research BehaviorScan With such a measure of household purchasing, it is possible to manipulate marketing variables, such as television advertising or consumer promotions, or to introduce a new product and analyze real changes in consumer buying behavior. InfoScan Retail sales, detailed consumer purchasing information (including measurement of store loyalty and total grocery basket expenditures), and promotional activity by manufacturers and retailers are monitored and evaluated for all bar-coded products. Data are collected weekly from more than 34,000 supermarkets, drugstores, and mass merchandisers.

32 Explain when marketing research should be conducted When Should Marketing Research Be Conducted? LO 6

33 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 LO 6

34 There will be no questions on competitive intelligence Competitive Intelligence LO 7

35 Competitive Intelligence Online An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors. Competitive Intelligence LO 7

36 Sources of Competitive Intelligence Internet Company Salespeople Experts CI Consultants Government Agencies UCC Filings Suppliers Periodicals Yellow Pages Trade Shows LO 7