Marketing Research, Decision-Support Systems, and Sales Forecasting

1. Chapter 8 Marketing Research, Decision-Support Systems, and Sales Forecasting

2. Objectives • Describe the development of the marketing research function and its major activities. • List and explain the steps in the marketing research process • Differentiate between the types and sources of primary and secondary data. • Explain the different sampling techniques used by marketing researchers. • Identify the methods by which marketing researchers collect primary data.

3. Objectives • Discuss the challenges of conducting marketing research in global markets. • Outline important uses of computer technology and marketing research. • Identify the major types of forecasting methods and explain the steps in the forecasting process.

4. In this advertisement H&R Block uses one numerical statistic, 63%, to make a point.

5. Marketing Research • Marketing research: the process of collecting and using information for marketing decision-making.

6. Marketing ResearchSuppliers Classifications • Syndicated Services • An organization that regularly provides a standardized set of data to all customers. • Full-Service Research Suppliers • An organization that contracts with clients to conduct complete marketing research projects. • Limited-Service Research Suppliers • A marketing research firm that specializes in a limited number of activities such as conducting field interviews or performing data processing.

7. “Mediamark Research offers comprehensive demographic, lifestyle, product usage and exposure to all forms of advertising media collected from a single sample.” • Source Mediamark Web Site.

8. The Marketing Research Process A well-defined problem • Permits the researcher to focus on securing the exact information needed for the solution and increases the speed and accuracy of the research process. Perceived Information Need • Defining the Problem Feedback on Research and Marketing Decision Effectiveness Marketing Decision Based on Information Collected

9. Did eTrade conduct research to establish that there may be a need for their type of service? Based on their success it is safe to assume they did.

10. The Marketing Research Process Exploratory Research • Seeks to discover the cause of a specific problem by discussing the problem with informed sources both within and outside the firm. • Can include evaluation of company records. Perceived Information Need • Defining the Problem • Conduct Exploratory Research Feedback on Research and Marketing Decision Effectiveness Marketing Decision Based on Information Collected

11. The Marketing Research Process • Formulate a Hypothesis • A tentative explanation for some specific event. A statement about the relationship among variables. It sets the stage for more in-depth research. Perceived Information Need • Defining the Problem • Conduct Exploratory Research • Formulating a Hypothesis Feedback on Research and Marketing Decision Effectiveness Marketing Decision Based on Information Collected

12. The Marketing Research Process • Create a Research Design • A master plan or model for conducting marketing research. • Marketers must be sure that the study will measure what they intend to measure. • Important design consideration is the selection of respondents. Perceived Information Need • Defining the Problem • Conduct Exploratory Research • Formulating a Hypothesis Feedback on Research and Marketing Decision Effectiveness • Creating a Research Design Marketing Decision Based on Information Collected

13. Marketing Research • Marketing research can provide important information about your current or potential customer base. • Information such as buying habits, needs, opinions, and preferences are critical and can be obtained through research. • Research can be performed in many ways; surveys, focus groups, personal interviews, observation and field trials. • In determining which technique to use consideration needs to be given to how much money you are willing to spend, the type of data needed and how quickly you need the data.

14. The Marketing Research Process • Collect Data(There are two kinds of data) • Secondary Data is information from previously published or compiled sources. • Primary data refers to information collected for the first time specifically for a marketing research study. Perceived Information Need • Defining the Problem • Conduct Exploratory Research • Formulating a Hypothesis Feedback on Research and Marketing Decision Effectiveness • Creating a Research Design • Collecting Data • Primary Data • Secondary Data Marketing Decision Based on Information Collected

15. The Marketing Research Process • Interpret and Present • Research Information • Interpret findings and present them to decision makers in a format that allows management to make effective judgments. • Researchers must remember to direct their reports toward management and not to other researchers and spell out their conclusions in clear and concise terms. Perceived Information Need • Defining the Problem • Conduct Exploratory Research • Formulating a Hypothesis Feedback on Research and Marketing Decision Effectiveness • Creating a Research Design • Collecting Data • Primary Data • Secondary Data Marketing Decision Based on Information Collected • Interpreting and Presenting the Research Information

16. The film industry is extremely competitive and blunders are costly. In order to enhance the success rate of a film producers can turn to marketing research.

17. Sampling TechniquesSampling is the process of selecting survey respondents or research participants. Samples can be classifiedas: • Probability Sampleis one that gives every member of the population a chance of being selected. Types of probability samples include simple random samples, stratified samples, and cluster samples. or

18. Sampling TechniquesSampling is the process of selecting survey respondents or research participants. Samples can be classifiedas: • Non-probability Sampleis an arbitrary grouping that does not permit the use of standard statistical tests. Types of non-probability samples are convenience samples and quota samples.

19. Primary Research Methods Slide 1 of 2 • Observation Method. Researchers view the overt actions of the subjects. • Survey Method. Ask questions to get information on attitudes, motives, and opinions. Researchers can use either interviews or questionnaires. • Telephone Interviews. • A quick and inexpensive method for obtaining a small quantity of relatively impersonal information. • Personal Interviews. • The Best means for obtaining detailed information about consumers • Focus Groups. • Brings together 8 to 12 individuals in one location to discuss a subject of interest. • Usually encourages a general discussion of a predetermined topic. • Mail Surveys. • Cost-effective alternative and also provide anonymity. • Help markets track consumer attitudes through ongoing research. • Response rates are typically much lower than for personal interviews. • Usually takes a long time to conduct. • Questionnaire cannot answer unanticipated questions that occur. • Researchers must worry about bias.

20. Primary Research Methods Slide 2 of 2 • Experimental Method. Least-used method for collecting primary data. Most common use of this method by marketers is test-marketing. • Three Problems with test-marketing: • Test-marketing is expensive. • Competitors quickly learn about the new product. • Some products are not well-suited to test-marketing.

21. The Marketing Decision Support System • A marketing decision support system (MDSS) consists of software that helps users quickly obtain and apply information in a way that supports marketing decisions. • MDSS can create simulations or models to illustrate the likely results of changes in marketing strategies or market conditions.

22. There are a number of firms available to help in designing and implementing a Marketing Decision Support System for a particular business. This web site offers a variety of valuable services to help in this area.

23. Forecasting Basic to the marketing plan is forecasting. • The two methods of forecast are: • Qualitative - these techniques rely on subjective data that repots opinions rather than exact historical data. • Quantitative - this method uses statistical computations such as trend extensions, computer simulations, and economic models.