2. Chapter 8 Decision Support Systems and Marketing Research

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

4. The Marketing Research Process CollectDataCollectData SpecifySamplingProcedureSpecifySamplingProcedure Plan Design/ Primary Data Plan Design/ Primary Data DefineProblemDefineProblemAnalyzeDataAnalyzeData Prepare/PresentReportPrepare/PresentReport Follow Up

5. Sources of Secondary Data Government Agencies Trade and Industry Associations Marketing Research Firms Commercial Publications News Media Internal Corporate Information

6. 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

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

8. 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

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

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

11. Disadvantages of Primary Data Expensive Quality declines if interviews are lengthy Reluctance to participate in lengthy interviews Disadvantages are usually offset by the advantages of primary data! Disadvantages are usually offset by the advantages of primary data!

12. Forms of Survey Research Focus Groups Executive Interviews Mail Surveys Telephone Interviews (Home and Central Location) Mall Intercept Interviews In-Home Interviews

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

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

15. 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

16. 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.

17. 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 http://ebook.stat.ucla.edu/calculators/sampsize.phtml

18. Data Base Marketing Have you ever… Filled out a coupon? Warrantee card? Entered a sweepstakes? Joined a ’Saver’s Club? Subscribed to a magazine? Made a ‘public property’ purchase? Registered at a website? Congratulations…. You are in several databases !!! …for example...

19. CustomerJohnson & Johnson Eye Care Professional 1. Runs ad with response vehicle response vehicle 2. Sends direct mail kit 3. Returns mail-4. Reports customer in card interest in card interest 5. Sends mailing 5. Sends mailing 6. Makes appointment 8. Mails discount 7. Notifies of coupon appointment coupon appointment 9. Places order 10. Sends follow-up trial offer Data Base Marketing (cont.)

20. The Dillman Approach Factors that affect response rates Rewards, Costs and Trust The method Prenotification Cover letter Questionnaire Follow-up

21. 1. Maximize Rewards Showing positive regard, giving appreciation, using a consulting approach, supporting respondent values, offering tangible rewards, and making the questionnaire interesting.

22. 2. Minimize Costs Making the task appear brief, reducing the physical and mental effort, minimizing the chances for embarrassment, eliminating the implication of subordination, reducing any direct monetary expense.

23. Providing a token of appreciation in advance, identify with an organization that has legitimacy, building on other exchange relationship. 3. Establish Trust

24. 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

25. 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.

26. 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

27. Advantages of Competitive Intelligence Predict changes in business relationships Guard against threats Forecast a competitor’s strategy Develop a successful marketing plan

28. Sources of Competitive Intelligence Internet Company Personnel Experts CI Consultants Government Agencies UCC Filings Suppliers Newspapers/Periodicals Yellow Pages Trade Shows