Mktg 1ce Ppt Ch08

MKTG

Lamb, Hair, McDaniel, Kapoor, Klaise, & Appleby

8

CHAPTER Designed by Amy McGuire, B-books, Ltd. Chapter 8

Canadian Edition

Decision Support Systems and Marketing Research

Prepared by Deborah Baker, Texas Christian University and Tina Grant, Durham College

Copyright ©2010 by Nelson Education Ltd. All rights reserved

1

Learning Outcomes

LO1

Explain the concept and purpose of a marketing decision support system

LO2

Define marketing research and explain its importance to marketing decision making

LO

Describe the steps involved in conducting a marketing research project

3

Chapter 8

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2

Learning Outcomes

LO4

Discuss the profound impact of the Internet on marketing research

LO5

Discuss the growing importance of scanner-based research

LO

Explain the concept of competitive intelligence

6

Chapter 8

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3

LO

1

Marketing Decision Support Systems

Explain the concept and purpose of a marketing decision support system

Chapter 8

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4

Marketing Decision Support Systems Decision Support Systems

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

LO1 Chapter 8

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DSS System Characteristics Interactive Interactive Flexible Flexible Discovery-Oriented Discovery-Oriented

LO1 Chapter 8

Accessible Accessible Copyright ©2010 by Nelson Education Ltd. All rights reserved

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Marketing Decision Support Systems Database Marketing

The creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns. The key tool for successful one-to-one marketing.

LO1 Chapter 8

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LO1 REVIEW LEARNING OUTCOME Marketing Decision Support Systems

Chapter 8

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LO2 The Role of Marketing Research Define marketing research and explain its importance to marketing decision making

Chapter 8

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The Role of Marketing Research

Marketing Research

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

LO2 Chapter 8

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Marketing Research Studies

LO2 Chapter 8

Products Products

Uses Uses

Advertising Advertising

Awareness Awareness

Prices Prices

Familiarity Familiarity

Packages Packages

New New concepts concepts

Names Names and and Logos Logos

Traffic Traffic patterns patterns

Services Services

Wants Wants

Buying Buying habits habits

Needs Needs

Colours Colours

Politics Politics

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The Role of Marketing Research Descriptive

 Gathering and presenting factual statements

Diagnostic

 Explaining data

Predictive

 “What if?”

LO2 Chapter 8

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LO2 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

Beyond the Book

    

Chapter 8

NOTE: Supplemental content – not in book. Copyright ©2010 by Nelson Education Ltd. All rights reserved

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LO2 REVIEW LEARNING OUTCOME Marketing Research and Its Importance Why marketing research?

 Improve quality of decision making  Trace problems  Focus on keeping existing customers  Understand changes in marketplace

Chapter 8

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LO

3

Steps in a Marketing Research Project

Describe the steps involved in conducting a marketing research project

Chapter 8

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The Marketing Research Process

LO

3

1 Define Define Problem Problem

2 Plan Plan Design/ Design/ Primary PrimaryData Data

3 Specify Specify Sampling Sampling Procedure Procedure

5 6 7 Follow FollowUp Up Chapter 8

Prepare/ Prepare/ Present Present Report Report

4 Collect Collect Data Data

Analyze Analyze Data Data

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16

LO3 Marketing Research

Chapter 8

Marketing Marketing Research Research Problem Problem

Determining Determining what what information information is is needed needed and and how how that that information information can can be be obtained obtained efficiently efficiently and and effectively. effectively.

Marketing Marketing Research Research Objective Objective

The The specific specific information information needed needed to to solve solve aa marketing marketing research research problem; problem; the the objective objective should should provide provide insightful insightful decision-making decision-making information. information.

Management Management Decision Decision Problem Problem

A A broad-based broad-based problem problem that that requires requires marketing marketing research research in in order order for for managers managers to to take take proper proper actions. actions.

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LO3 Secondary Data

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

Chapter 8

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LO3 Sources of Secondary Data Internal Internal Corporate CorporateInformation Information Government Government Agencies Agencies Trade Tradeand andIndustry IndustryAssociations Associations Business BusinessPeriodicals Periodicals News News Media Media http://www.coca-colastore.com

Online Chapter 8

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LO3 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

Chapter 8

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LO3 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

Chapter 8

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LO

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Chapter 8

The New Age of Secondary Information: The Internet 11

Analyze Analyze your your topic topic

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Test Test run run aa word word or or phrase phrase in in aa search search engine engine

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Learn Learn as as you you go go and and vary vary your your approach approach

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Don’t Don’t bog bog down down in in strategy strategy that that doesn’t doesn’t work work

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Go Go back back to to earlier earlier steps steps better better informed informed

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LO3 Planning the Research Design

Which research questions must be answered?

?

How and when will data be gathered?

How will the data be analyzed?

Chapter 8

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LO3 Primary Data

Primary Data

Chapter 8

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

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LO3 Advantages of Primary Data

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

Chapter 8

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LO3 Disadvantages of Primary Data Disadvantages are usually offset by the advantages of primary data.

 Expensive  “Piggybacking” may confuse respondents  Quality declines if interviews are lengthy  Reluctance to participate in lengthy interviews Chapter 8

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26

LO3 Survey Research

Survey Research

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

Chapter 8

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LO3 Forms of Survey Research

Chapter 8

In-Home In-Home Interviews Interviews

Mail Mail Surveys Surveys

Mall Mall Intercept Intercept Interviews Interviews

Executive Executive Interviews Interviews

Telephone Telephone Interviews Interviews

Focus Focus Groups Groups

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LO3 Forms of Survey Research

Mall Intercept Interview

Executive Interview

Chapter 8

Survey research method that involves interviewing people in the common areas of shopping malls.

A type of survey that involves interviewing businesspeople at their offices concerning industrial products or services.

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LO3 Forms of Survey Research

Focus Groups

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

Chapter 8

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LO3 Questionnaire Design

Chapter 8

Open-Ended Open-Ended Question Question

An An interview interview question question that that encourages encourages an an answer answer phrased phrased in in respondent’s respondent’s own own words. words.

Closed-Ended Closed-Ended Question Question

An An interview interview question question that that asks asks the the respondent respondent to to make make aa selection selection from from aa limited limited list list of of responses. responses.

ScaledScaledResponse Response Question Question

A A closed-ended closed-ended question question designed designed to to measure measure the the intensity intensity of of aa respondent’s respondent’s answer. answer.

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Beyond the Book

LO3 Questionnaire Design

Chapter 8

Closed-ended and scaled-response questions are easier to tabulate than open-ended questions because response choices are fixed. On the other hand, unless the researcher designs the closed-ended question very carefully, an important choice may be omitted.

Avocado NOTE: Supplemental content – not in book. Copyright ©2010 by Nelson Education Ltd. All rights reserved

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LO3 Questionnaire Design Clear Clear and and concise concise No No ambiguous ambiguous language language Only Only one one question question Unbiased Unbiased Reasonable Reasonable terminology terminology http://www.createsurvey.com

Online Chapter 8

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LO3 Observation Research

Observation Research

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

Chapter 8

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LO3 Observational Situations Situation

People watching people

Example

Mystery shoppers in a supermarket

People watching phenomena

Machines watching people

Machines watching phenomena

Observer Video cameras Traffic-counting recording machine at an behaviour monitoring intersection traffic flow counting traffic

http://www.bmiltd.com

Online Chapter 8

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LO3 Ethnographic Research

Ethnographic Research The study of human behaviour in its natural context; involves observation of behaviour and physical setting.

Chapter 8

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LO3 The Sampling Procedure

Chapter 8

Sample Sample

A A subset subset from from aa large large population. population.

Universe Universe

The The population population from from which which aa sample sample will will be be drawn. drawn.

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37

LO3 Sampling Procedure

Universe

Sample Probability Probability Samples Samples Non-Probability Non-Probability Samples Samples

Chapter 8

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LO3 Types of Samples

Chapter 8

Probability Samples

Non-Probability Samples

Simple Random Sample

Convenience Sample

Stratified Sample

Judgment Sample

Cluster Sample

Quota Sample

Systematic Sample

Snowball Sample

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LO3 Probability Samples

Chapter 8

Probability Probability Sample Sample

A A sample sample in in which which every every element element in in the the population population has has aa known known statistical statistical likelihood likelihood of of being being selected. selected.

Random Random Sample Sample

A A sample sample arranged arranged so so that that every every element element of of the the population population has has an an equal equal chance chance of of being being selected. selected.

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40

LO3 Nonprobability Samples

Chapter 8

Nonprobability Nonprobability Sample Sample

Any Any sample sample in in which which little little or or no no attempt attempt is is made made to to get get aa representative representative cross-section cross-section of of the the population. population.

Convenience Convenience Sample Sample

A A form form of of nonprobability nonprobability sample sample using using respondents respondents who who are are convenient convenient or or readily readily accessible accessible to to the the researcher. researcher.

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41

LO3 Types of Errors Error Error when when there there is is aa difference difference Measurement Measurement between the information desired and the between the information desired and the Error Error information information provided provided by by research research

Chapter 8

Sampling Sampling Error Error

Error Error when when aa sample sample somehow somehow does does not not represent represent the the target target population. population.

Frame Frame Error Error

Error Error when when aa sample sample drawn drawn from from aa population population differs differs from from the the target target population. population.

Random Random Error Error

Error Error because because the the selected selected sample sample is is an an imperfect imperfect representation representation of of the the overall overall population. population. Copyright ©2010 by Nelson Education Ltd. All rights reserved

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LO3 Field Service Firms Provide:     

Chapter 8

Focus group facilities Mall intercept locations Test product storage Kitchen facilities Retail audits

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43

LO3 Analyzing the Data

CrossTabulation 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.

Chapter 8

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LO

3

Preparing and Presenting the Report

 Concise statement of the research objectives  Explanation of research design  Summary of major findings  Conclusion with recommendations

Chapter 8

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45

LO3 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 to management?

Chapter 8

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46

LO3

REVIEW LEARNING OUTCOME

Steps in a Marketing Research Project

Chapter 8

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47

LO

4

Impact of the Internet on Marketing Research

Discuss the profound impact of the Internet on marketing research

Chapter 8

Copyright ©2010 by Nelson Education Ltd. All rights reserved

48

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 labour- and time-intensive research activities and costs

LO4 Chapter 8

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Advantages of Internet Surveys Rapid Rapid development, development, Real-time Real-time reporting reporting Reduced Reduced costs costs Personalized Personalized questions questions and and data data Improved Improved respondent respondent participation participation

LO

4

Chapter 8

Contact Contact with with the the hard-to-reach hard-to-reach Copyright ©2010 by Nelson Education Ltd. All rights reserved

50

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

LO

4

http://www.greenfieldonline.com

Online Chapter 8

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51

Internet Samples

LO4 Chapter 8

Unrestricted Unrestricted Internet Internet Sample Sample

A A survey survey in in which which anyone anyone with with aa computer computer and and modem modem can can fill fill out out the the questionnaire. questionnaire.

Screened Screened Internet Internet Sample Sample

An An Internet Internet sample sample with with quotas quotas based based on on desired desired sample sample characteristics. characteristics.

Recruited Recruited Internet Internet Sample Sample

A A sample sample in in which which respondents respondents are are prerecruited prerecruited and and must must qualify qualify to to participate. participate.

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52

Process for Online Focus Groups

LO

4

Chapter 8

1.

Build a database of respondents via Web site screening questionnaire

2.

Identify qualified individuals via e-mail

3.

Develop a discussion guide

4.

Moderator runs group by typing in questions online for all to see

5.

Environment is similar to a chat room

6.

Firm captures the complete text of the focus group Copyright ©2010 by Nelson Education Ltd. All rights reserved

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Types of Online Focus Groups

Real-time Real-time online online focus focus groups groups

Time-extended Time-extended online online focus focus groups groups

LO4 Chapter 8

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Advantages of Online Focus Groups     

Speed Cost-effectiveness Broad geographic scope Accessibility Honesty

LO4 Chapter 8

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55

Role of Blogs in Marketing Research  Refined technologies allow companies to mine data available in Internet blogs.  Companies can identify the most influential bloggers and learn exactly what they are saying (and how they are saying it).

LO4 Chapter 8

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56

Other Uses of the Internet by Marketing Researchers Distribution Distribution of of requests requests for for proposals proposals (RFPs) (RFPs) and and proposals proposals Collaboration Collaboration between between client client and and research research supplier supplier Data Data management management and and online online analysis analysis Publication Publication and and distribution distribution of of reports reports

LO

4

Chapter 8

Viewing Viewing of of presentations presentations of of marketing marketing research research surveys surveys Copyright ©2010 by Nelson Education Ltd. All rights reserved

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LO4 REVIEW LEARNING OUTCOME Impact of the Internet on Marketing Research

Chapter 8

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58

LO5

Scanner-Based Research

Discuss the growing importance of scanner-based research

Chapter 8

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59

Scanner-Based Research A system for gathering information

Scanner-based Research

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

LO5 Chapter 8

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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

LO5 Chapter 8

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61

LO5 REVIEW LEARNING OUTCOME Scanner-Based Research

Chapter 8

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62

LO6

Competitive Intelligence

Explain the concept of competitive intelligence

Chapter 8

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63

LO6 Competitive Intelligence

Competitive Intelligence

An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors.

http://www.scip.org

Online Chapter 8

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64

LO

6

Chapter 8

Sources of Competitive Intelligence Internet Internet

Industry Industry Canada Canada

Company Company Salespeople Salespeople

Suppliers Suppliers

Experts Experts

Periodicals Periodicals

CI CI Consultants Consultants

Yellow Yellow Pages Pages

Government Government Agencies Agencies

Trade Trade Shows Shows

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65

LO6 REVIEW LEARNING OUTCOME Competitive Intelligence CI Part of a sound marketing strategy Helps companies respond to competitive threats Helps reduce unnecessary costs

Chapter 8

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