Lamb Hair Mc Daniel 2010 2011 CHAPTER 9

Lamb, Hair, Mc. Daniel 2010 -2011 CHAPTER 9 Decision Support Systems and Marketing Research 1

Marketing Decision Support Systems There will be no questions on Marketing Decision Support Systems LO 1 2

The Role of Marketing Research LO 2 The process of planning, collecting, and analyzing data relevant to a marketing decision. 3

LO 2 Marketing Research Studies Products Uses Advertising Awareness Prices Familiarity Packages New concepts Names and Logos Traffic patterns Services Wants Buying habits Needs Colors Politics 4

The Role of Marketing Research Descriptive u Gathering and presenting factual statements Diagnostic u Explaining data Predictive u “What if? ” LO 2 5

Beyond the Book Management Uses of Marketing Research LO 2 u u u Improve the quality of decision making Trace problems Focus on keeping existing customers Understand the marketplace Alert them to marketplace trends u Gauge the value of goods and services, and the level of customer satisfaction NOTE: Supplemental content – not in book. 6

The Importance of Marketing Research Why marketing research? þ Improve quality of decision making þ Trace problems þ Focus on keeping existing customers þ Understand changes in marketplace LO 2 7

Steps in a Marketing Research Project There will be no questions on this topic LO 3 8

Sources of Secondary Data Internal Corporate Information Government Agencies Trade and Industry Associations Business Periodicals News Media LO 3 9

Advantages of Secondary Data u Saves time and money if on target u Aids in determining direction for primary data collection u Pinpoints the kinds of people to approach u Serves as a basis of comparison for other data LO 3 10

Disadvantages of Secondary Data u May not give adequate detailed information u May not be on target with the research problem u Quality and accuracy of data may pose a problem LO 3 11

Marketing Research Aggregators 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/ LO 3 12

Primary Data Information collected for the first time. Used for solving the particular problem under investigation. Advantages: u u LO 3 Answers a specific research question Data are current Source of data is known Secrecy can be maintained 13

Disadvantages of Primary Data u Expensive u “Piggybacking” may confuse respondents u Quality declines if interviews are lengthy u Reluctance to participate in lengthy interviews LO 3 Disadvantages are usually offset by the advantages of primary data. 14

Survey Research The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes. LO 3 15

Forms of Survey Research In-Home Interviews Mail Surveys Mall Intercept Interviews Executive Interviews Telephone Interviews Focus Groups LO 3 16

Questionnaire Design 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. LO 3 17

Questionnaire Design Beyond the Book Closed-ended and scaled-response questions are easier to tabulate than open-ended questions because response choices are fixed. LO 3 On the other hand, unless the researcher designs the closed-ended question very carefully, an important choice may be omitted. NOTE: Supplemental content – not in book. 18

Questionnaire Design Clear and concise No ambiguous language Only one question Unbiased Reasonable terminology http: //www. surveymonkey. com/ LO 3 Online 19

Observation Research A research method that relies on three types of observation: people watching people Ø people watching an activity Ø machines watching people Ø LO 3 20

Observational Situations Situation People watching people People watching phenomena Machines watching people Machines watching phenomena Example Mystery shoppers in a supermarket Observer at an intersection counting traffic Video cameras recording behavior Traffic-counting machine monitoring traffic flow LO 3 21

Virtual Shopping • Allows customers to “shop” with realistic complexity and variety • Tests can be altered quickly • Computer automatically collects data LO 3 22

Collecting the Data Field Service Firms provide: u Focus group facilities u Mall intercept locations u Test product storage u Kitchen facilities u Retail audits LO 3 23

The Profound Impact of the Internet on Marketing Research Discuss the profound impact of the Internet on marketing research LO 4 24

Impact of the Internet u Allows better and faster decision making u Improves ability to respond quickly to customer needs and market shifts u Makes follow-up studies and tracking research easier u Slashes labor- and time-intensive research activities and costs LO 4 25

Advantages of Internet Surveys Rapid development, Real-time reporting Reduced costs Personalized questions and data Improved respondent participation Contact with the hard-to-reach LO 4 26

Uses of the Internet by Marketing Researchers Administer surveys Conduct focus groups Other types of marketing research http: //www. greenfieldonline. com LO 4 Online 27

Methods of Collecting Online Surveys • Web Survey Systems • Survey Design and Web Hosting Sites • Online Panel Providers LO 4 28

Scanner-Based Research Discuss the growing importance of scanner-based research LO 5 29

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. Behavior. Scan LO 5 Panel information from Specific groups of people, enables researchers to manipulate variables and see real results Info. Scan Aggregate consumer information on all bar-coded products 30

Scanner-Based Research Behavior. Scan With such a measure of household purchasing, it is possible to manipulate marketing variables, such as television advertising or consumer promotions, or to introduce a new product and analyze real changes in consumer buying behavior. Info. Scan Retail sales, detailed consumer purchasing information (including measurement of store loyalty and total grocery basket expenditures), and promotional activity by manufacturers and retailers are monitored and evaluated for all bar-coded products. Data are collected weekly from more than 34, 000 supermarkets, drugstores, and mass merchandisers. LO 5 31

When Should Marketing Research Be Conducted? Explain when marketing research should be conducted LO 6 32

When Should Marketing Research Be Conducted? u Where there is a high level of uncertainty u When value of research information exceeds the cost of generating the information LO 6 33

Competitive Intelligence There will be no questions on competitive intelligence LO 7 34

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 LO 7 35

LO 7 Sources of Competitive Intelligence Internet UCC Filings Company Salespeople Suppliers Experts Periodicals CI Consultants Yellow Pages Government Agencies Trade Shows 36