Chapter 8 Improving Decisions with Marketing Information

1. Chapter 8Improving Decisions with Marketing Information

2. Radical Changes are Underway in Marketing Information Marketing Information System (MIS) + Intranet + DSS

3. Why we need marketing research ? Ever changing needs In dynamic markets

4. Marketing Research • To get the facts • Who does the work • Effective research requires cooperation

5. Five-Step Approach to Marketing Research • Defining the problem • Analyzing the situation • Getting problem-specific data • Interpreting the data • Solving the problem 5 step

6. Five-Step Scientific Approach to Marketing Research Process Early identification of solution Getting Problem- Specific data Analyzing the situation Interpreting the data Defining the problem Solving the problem Feedback to previous steps

7. Step 1- Defining the Problem • Finding the right problem level almost solves the problem • Don’t confuse problems with symptoms • Setting research objectives may require more understanding Define

8. Step 2 – Analyzing the Situation What information do we already have? Secondary data & Primary data Search engines -Yahoo.com Government data & Private sources Determine what else is needed – research proposal

9. Step3 Getting Problem-Specific Data • Gathering primary data • There are two basic methods for obtaining information about customers： Questioning； Observing • Questioning： range qualitative to quantitative research • Observing： many kinds are possible

10. Qualitative Research VS Quantitative Research Qualitative Research Seeks in-depth,open-ended responses,not yes or no answers. Qualitative questioning ─open-ended with a hidden purpose Interview ex ： mall intercept

11. Observing • Focuses on a well-defined problem • Observing is common in advertising research • Checkout scanners see a lot • Experimental method controls conditions

12. Focus Group • which involves interviewing 6 to 10 people in an informal group setting • The focus group also uses open-ended questions,but here the interviewer wants to get group interaction─to stimulate thinking and get immediate reactions.

13. Quantitative Research • Quantitative measures of attitudes too • Surveys come in many forms： Mail：strength：common,convenient, weakness：response rate is low Telephone ： strength：fast and effective weakness：is not a good contact to get confidential personal information

14. Personal interview： strength：can be in-depth weakness：people won’t give an answer because culture or they consider embarrassing E-mail：strength：fast ,convenient ,24hours weakness：the information is true or not

15. Difference in Response between the two groups Half of the people see Ad#1 Mean for group who saw Ad#1=3.2 Represent-ative group of customers Half of the people see Ad#2 Mean for group who saw Ad#2=4.6 1 2 3 4 5 Groups of people are similar except for the ad they see Average product interest rating by group

16. Step 4 Interpreting the Data Step 5 Solving the Problem • Cross-tabulation • Random samples tend to be representative • Validity problems can destroy research • Poor interpretation can destroy research • Marketing manager and researcher should work together • The last step is solving the problem

17. International Marketing Research • Research contributes to international success • Avoid mistakes with local researchers • Some coordination and standardization makes sense

18. DSS Decision Support System--DSS DSS put managers online Back

19. MIS - Marketing Information System MIS • An organized way of continually gathering, accessing, and analyzing information. • Get more information – faster & easier Questions & Answers Information sources Decision maker Results Back

20. Have You Moved in the Last Year Answer： No Yes Total Yes 10.2% 23.4% 15.5% Do you have “Caller ID” on your phone at home？ No 89.8% 76.6% 84.5% Total 100% 100% 100% Back