Prepared by Angela Zigras, Seneca College Deborah Baker, Texas Christian University

1. DECISION SUPPORT SYSTEMS AND MARKETING RESEARCH Prepared by Angela Zigras, Seneca College Deborah Baker, Texas Christian University

2. You will learn to ... 1. Explain the concept and purpose of a marketing decision support system. 2. Define marketing research and explain its importance to marketing decision making. 3. Describe the steps involved in conducting a marketing research project.

3. You will learn to ... 4. Discuss the growing importance of scanner-based research. 5. Explain when marketing research should and should not be conducted.

4. Marketing Intelligence Everyday information about developments in the marketing environment that managers use to prepare and adjust marketing plans.

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

6. DSS System Characteristics Characteristicsof a DSS System Interactive Flexible Discovery-Oriented Accessible

7. Database Marketing The creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns.

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

9. Defining Market Research (1) • Research is the systematic and objective approach to investigate a specific problem that needs a solution. • Research is a process by which a series of well thought out and carefully executed activities enable one to enquire, investigate or examine a problem to discover new facts to deal with the problem.

10. Defining Research (2) • Systematic : well organised and planned • Objectivity : unbiased and unemotional • The information is used to identify and define opportunities and problems, and make recommendations on solutions • Market Research links consumer, customer and the public to the marketers through information. • Generate, refine and evaluate marketing actions, performance and the marketing process.

11. Issues to consider with Problem definition • Past information(secondary data/MIS) • Resources and constraints • Objectives • Buyer behaviour(human or organisational) • Legal environment • Economic environment • Marketing and technological skills • P • R • O • B • L • E • M

12. Roles of Marketing Research Marketing Research has three roles: Descriptive Predictive Diagnostic

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

14. Management Uses of Marketing Research • Improve the quality of decision making • Trace problems • Focus on keeping existing customers • Understand the ever-changing marketplace

15. Define Problem Plan Design/ Primary Data Specify Sampling Procedure Collect Data Analyze Data Prepare/ Present Report Follow Up Steps in a Marketing Research Project

16. Marketing Research Problem Determining what information is needed and how that information can be obtained efficiently and effectively. Marketing Research Objective The specific information needed to solve a marketing research problem; the objective should provide insightful decision-making information. Management Decision Problem A broad-based problem that requires marketing research in order for managers to take proper actions. Marketing Research

17. Objective setting example 1 • Management Problem: Should a new product be launched? • Research Objective: Determine consumer preference and purchase intentions for the proposed new product.

18. Objective setting example 2 • Management Problem: Should the ad campaign be changed? • Research Objective: To determine effectiveness of the current campaign.

19. Objective setting example 3 • Management Problem: Should the price of the brand be increased? • Research Objective: To determine the price elasticity of demand and the impact on sales and profits of various levels of price changes.

20. Internal Information Marketing Research Firms Trade and Industry Associations National Research Bureaus Professional Associations Commercial Publications Sources of Secondary Data

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

22. 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

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

24. www The New Age of Secondary Information The Internet • Search Enginesand Directories • Sites of Interest toMarketing Researchers • Discussion Groups • Periodical, Newspaper, and Book Databases

25. Basic Types of Directories • Academic and Professional Directories • Commercial Portals

26. Research Design Specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed.

27. Planning the Research Design Which research questions must be answered? How and whenwill data be gathered? ? How willthe databe analyzed?

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

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

30. Disadvantages of Primary Data • Expensive • Quality declines if interviews are lengthy • Reluctance to participate in lengthy interviews

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

32. Mall Intercept Interviews Mail Surveys Internet Surveys Telephone Interviews(Home and Central Location) Focus Groups Forms of Survey Research Computer-assisted Personal Interviewing

33. Mall Intercept Interview Survey research method that involves interviewing people in the common areas of shopping malls.

34. Computer-Assisted Personal Interviewing An interviewing method in which the interviewer reads the questions from a computer screen and enters the respondent’s data directly into the computer.

35. 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 research easier • Slashes labour-and time-intensive research activities

36. Rapid development, Real-time reporting Reduced costs Advantages of Internet Surveys Personalized questions and data Improved respondent participation Contact with the hard-to-reach Advantages of Internet Surveys

37. Unrestricted Internet Sample A survey in which anyone with a computer and modem can fill out the questionnaire. Screened Internet Sample An Internet sample with quotas based on desired sample characteristics. Recruited Internet Sample A sample in which respondents are prerecruited and must qualify to participate. Internet Samples

38. Distribution of requests for proposals Collaboration in the management of a research project Other Internet Uses by Marketing Researchers Data management and on-line analysis Publication and distribution of reports Viewing of presentations of marketing research surveys Other Uses of the Internet

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

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

41. Open-Ended Question An interview question that encourages an answer phrased in respondent’s own words. Closed-Ended Question An interview question that asks the respondent to make a selection from a limited list of responses. Scaled-Response Question A closed-ended question designed to measure the intensity of a respondent’s answer. Questionnaire Design

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

43. Observation Research A research method that relies on three types of observation: • people watching people • people watching an activity • machines watching people

44. Observation Research People Watching People Mystery Shoppers One-Way Mirrors Types ofObservationResearch People Watching an Activity Audits Machines WatchingPeople Traffic Counters Passive People Meter

45. Mystery Shoppers Researchers posing as customers who gather observational data about a store and collect data about customer/employee interactions.

46. Experiment A method a researcher uses to gather primary data.

47. Sample A subset from a large population. Universe The population from which a sample will be drawn. Sampling Procedure

48. Probability Sample A sample in which every element in the population has a known statistical likelihood of being selected. Random Sample A sample arranged so that every element of the population has an equal change of being selected. Probability Samples

49. Nonprobability Sample Convenience Sample Nonprobability Samples Any sample in which little or no attempt is made to get a representative cross-section of the population A form of nonprobability sample using respondents who are convenient or readily accessible to the researcher.

50. Sample Universe Sampling Procedure Probability Samples Non-Probability Samples