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Chapter 8 Decision Support Systems
and Marketing Research
Roles of Marketing Research
 Gathering and presenting
Descriptive
factual statements
Diagnostic  Explaining data
Predictive
 Attempting to estimate the
results of a planned
marketing decision
The Marketing Research Process
Define
Problem
Plan Design/
Primary Data
Prepare/
Present
Report
Follow Up
Specify
Sampling
Procedure
Analyze
Data
Collect
Data
Sources of Secondary Data
Internal Corporate Information
Government Agencies
Trade and Industry Associations
Marketing Research Firms
Commercial Publications
News Media
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
Disadvantages of Secondary Data
• May not be on target with the research problem
• Quality and accuracy of data may pose a
problem
The New Age of
Secondary Information
The Internet
• Search Engines
and Directories
www
• Sites of Interest to
Marketing Researchers
• Discussion Groups
• Periodical, Newspaper, and Book Databases
Planning the Research Design
Which research
questions
must be answered?
?
How and when
will data be
gathered?
How will
the data
be analyzed?
Advantages of Primary Data
• Answers a specific research question
• Data are current
• Source of data is known
• Secrecy can be maintained
Disadvantages of Primary Data
• Expensive
• Quality declines if interviews are lengthy
• Reluctance to participate in lengthy interviews
Disadvantages are
usually offset by the
advantages
of primary data!
Forms of Survey Research
In-Home Interviews
Mail Surveys
Mall Intercept Interviews
Executive Interviews
Telephone Interviews
Focus Groups
(Home and Central Location)
Advantages of
On-Line Focus Groups
• Speed
• Cost-effectiveness
• Broad geographic scope
• Accessibility
• Honesty
Questionnaire Design
Clear and Concise
No Ambiguous Language
Qualities
of
Good
Questionnaires
Unbiased
Reasonable Terminology
Observation Research
People
Watching
People
Types of
Observation
Research
People
Watching
an Activity
Machines
Watching
People
Mystery Shoppers
One-Way Mirrors
Audits
Traffic Counters
Passive People Meter
Sampling Procedure
Sample
A subset from a large population.
Universe
The population from which
a sample will be drawn.
Types of Samples
Probability
Samples
Non-Probability
Samples
Simple Random
Sample
Convenience
Sample
Stratified
Sample
Judgment
Sample
Cluster
Sample
Quota
Sample
Systematic
Sample
Snowball
Sample
http://ebook.stat.ucla.edu/calculators/sampsize.phtml
Data Base Marketing
Have you ever…
•Filled out a coupon?
•Warrantee card?
•Entered a sweepstakes?
•Joined a ’Saver’s Club?
•Subscribed to a magazine?
•Made a ‘public property’ purchase?
Registered at a website?
Congratulations….
You are in several databases !!!
…for example...
Data Base Marketing (cont.)
Customer
Johnson & Johnson
Eye Care Professional
1. Runs ad with
response vehicle
2. Sends direct mail kit
3. Returns mailin card
4. Reports customer
interest
5. Sends mailing
6. Makes appointment
8. Mails discount
coupon
7. Notifies of
appointment
9. Places order
10. Sends follow-up trial offer
The Dillman Approach
Factors that affect response rates
•Rewards, Costs and Trust
The method
•Prenotification
•Cover letter
•Questionnaire
•Follow-up
1. Maximize Rewards
Showing positive regard, giving
appreciation, using a consulting
approach, supporting respondent values,
offering tangible rewards, and making
the questionnaire interesting.
2. Minimize Costs
Making the task appear brief, reducing
the physical and mental effort,
minimizing the chances for
embarrassment, eliminating the
implication of subordination, reducing
any direct monetary expense.
3. Establish Trust
Providing a token of
appreciation in advance, identify
with an organization that has
legitimacy, building on other
exchange relationship.
Advantages of internet Surveys
Rapid development,
Real-time reporting
Reduced costs
Advantages of
Internet Surveys
Personalized questions
and data
Improved respondent
participation
Contact with the
hard-to-reach
Internet Samples
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.
Other Uses of the Internet
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
Advantages of
Competitive Intelligence
• Predict changes in business relationships
• Guard against threats
• Forecast a competitor’s strategy
• Develop a successful marketing plan
Sources of
Competitive Intelligence
Internet
UCC Filings
Company Personnel
Suppliers
Experts
Newspapers/Periodicals
CI Consultants
Yellow Pages
Government Agencies
Trade Shows