Lamb, Hair, McDaniel

1. Lamb, Hair, McDaniel CHAPTER 9 Decision Support Systems and Marketing Research

2. Definitions • Marketing Decision Support System: An interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions. • Database Marketing: The creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns. • Marketing Research: The process of planning, collecting, and analyzing data relevant to a marketing decision.

3. Marketing Research-Concepts Issues • Definition of Marketing Research • Types of Research • Reliability and Validity • Primary vs. Secondary Research/Data • Marketing Research Process • Role of Internet in Marketing Research • Competitive Intelligence

4. Types of Research • Exploratory: research conducted to gather more information about a problem or to make a tentative hypothesis more specific • Descriptive: clarifies characteristics of certain phenomena to solve a particular problem • Causal (Experimental): allows marketers to make causal inferences about relationships

5. Reliability and Validity • Reliability – identical results produced in repeated trials of the same research technique • Validity – research method measuring what it is supposed to measure

6. Define Problem Plan Design/ Primary Data Specify Sampling Procedure Collect Data Analyze Data Prepare/ Present Report Follow Up The Marketing Research Process 1 2 3 4 5 6 7

7. Primary Research/Data • Advantages: • Answers a specific research question • Data are current • Source of data is known • Secrecy can be maintained • Disadvantages: • Expensive • Responses can be confusing • Quality declines if interviews are lengthy • Reluctance to participate in lengthy interviews

8. Secondary Research/Data • Advantages: • 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 • Disadvantages: • May not give adequate detailed information • May not be on target with the research problem • Quality and accuracy of data may pose a problem

9. In-Home Interviews Mail Surveys Mall Intercept Interviews Executive Interviews Telephone Interviews Focus Groups Primary Survey Research

10. 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

11. Probability Samples Non-Probability Samples Simple Random Sample Convenience Sample Stratified Sample JudgmentSample Cluster Sample Quota Sample SystematicSample SnowballSample Sampling: Types of Samples

12. Analyzing Data • Research design will dictate the analysis • Use of quantitative tools • Establishing relationships • Testing hypotheses • Tabulations, cross tabulations

13. Preparing andPresenting the Report • Concise statement of the research objectives • Explanation of research design • Summary of major findings • Conclusion with recommendations

14. 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?

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

16. Advantages of Online Focus Groups • Speed • Cost-effectiveness • Broad geographic scope • Accessibility • Honesty

17. Web Community Research • A carefully selected group of consumers who agree to participate in an ongoing dialogue with a particular corporation. Web communities: • Engage customers • Achieve customer-derived innovations • Establish brand advocates • Offer real-time results

18. 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).

19. BehaviorScan InfoScan Aggregate consumerinformation on allbar-coded products Panel information from Specific groups of people, enables researchers to manipulate variables and seereal results Scanner-Based Research A system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy.

20. 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 Competitive Intelligence Competitive Intelligence

21. UCC Filings Internet Suppliers Company Salespeople Periodicals Experts Yellow Pages CI Consultants Trade Shows Government Agencies Sources of Competitive Intelligence

22. Websites with Marketing Research Information Provide small- to medium-sized companies with information they could not afford to research on their own Increases the revenue generated by large, expensive reports by slicing and repackaging them http://www.marketresearch.com/ http://www.aroq.com/

23. Ch 9 Discussion Questions • What are the three types of research we studied in class? Define and explain each type with examples. • Define marketing research and explain its importance in marketing decision making. • Describe the steps involved in conducting a marketing research project. • What is Probability and Nonprobability sampling? Explain their benefits in marketing research. • Discuss the impact of the Internet on marketing research. • Define Competitive Intelligence. How can we create a CI database?