Transcript Chapter 9
Lamb, Hair, McDaniel 2010-2011 CHAPTER 9 Decision Support Systems and Marketing Research 1 Learning Outcomes LO 1 Explain the concept and purpose of a marketing decision support system LO 2 Define marketing research and explain its importance to marketing decision making LO 3 Describe the steps involved in conducting a marketing research project 2 Learning Outcomes LO 4 Discuss the profound impact of the Internet on marketing research LO 5 Discuss the growing importance of scanner-based research LO 6 Explain when marketing research should be conducted LO 7 Explain the concept of competitive intelligence 3 Marketing Decision Support Systems Explain the concept and purpose of a marketing decision support system LO1 4 Marketing Decision Support Systems An interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions. Characteristics: LO1 Interactive Flexible Discovery Oriented Accessible 5 Marketing Decision Support Systems Database Marketing The creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns. The key tool for successful one-to-one marketing. LO1 6 The Role of Marketing Research Define marketing research and explain its importance to marketing decision making LO2 7 The Role of Marketing Research Marketing Research LO2 The process of planning, collecting, and analyzing data relevant to a marketing decision. 8 LO2 Marketing Research Studies Products Uses Advertising Awareness Prices Familiarity Packages New concepts Names and Logos Traffic patterns Services Wants Buying habits Needs Colors Politics 9 The Role of Marketing Research Descriptive Gathering and presenting factual statements Diagnostic Explaining data Predictive “What if?” LO2 10 Beyond the Book Management Uses of Marketing Research LO2 Improve the quality of decision making Trace problems Focus on keeping existing customers Understand the marketplace Alert them to marketplace trends Gauge the value of goods and services, and the level of customer satisfaction NOTE: Supplemental content – not in book. 11 The Importance of Marketing Research Why marketing research? Improve quality of decision making Trace problems Focus on keeping existing customers Understand changes in marketplace LO2 12 Steps in a Marketing Research Project Describe the steps involved in conducting a marketing research project LO3 13 The Marketing Research Process 1 Define Problem 2 Plan Design/ Primary Data 3 Specify Sampling Procedure 5 6 Prepare/ 4 Collect Data Analyze Data Present Report 7 Follow Up LO3 14 Sources of Secondary Data Internal Corporate Information Government Agencies Trade and Industry Associations Business Periodicals News Media LO3 15 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 LO3 16 Disadvantages of Secondary Data May not give adequate detailed information May not be on target with the research problem Quality and accuracy of data may pose a problem LO3 17 The New Age of Secondary Information: The Internet 1 Analyze your topic 2 Test run a word or phrase in a search engine 3 Learn as you go and vary your approach 4 Don’t bog down in strategy that doesn’t work 5 Return to earlier steps better informed LO3 18 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/ LO3 19 Planning the Research Design Which research questions must be answered? ? How and when will data be gathered? How will the data be analyzed? LO3 20 Primary Data Information collected for the first time. Used for solving the particular problem under investigation. Advantages: LO3 Answers a specific research question Data are current Source of data is known Secrecy can be maintained 21 Disadvantages of Primary Data Expensive “Piggybacking” may confuse respondents Quality declines if interviews are lengthy Reluctance to participate in lengthy interviews LO3 Disadvantages are usually offset by the advantages of primary data. 22 Survey Research Survey Research The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes. LO3 23 Forms of Survey Research In-Home Interviews Mail Surveys Mall Intercept Interviews Executive Interviews Telephone Interviews Focus Groups LO3 24 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. ScaledResponse Question A closed-ended question designed to measure the intensity of a respondent’s answer. LO3 25 Beyond the Book LO3 Questionnaire Design Closed-ended and scaled-response questions are easier to tabulate than open-ended questions because response choices are fixed. On the other hand, unless the researcher designs the closed-ended question very carefully, an important choice may be omitted. Avocado Cheese (Monterey Jack/cheddar) Guacamole Lettuce Mexican hot sauce 1 2 3 4 5 Olives (black/green) Onions (red/white) Peppers (red/green) Pimento Sour cream NOTE: Supplemental content – not in book. 6 7 8 9 0 26 Questionnaire Design Clear and concise No ambiguous language Only one question Unbiased Reasonable terminology http://www.surveymonkey.com/ LO3 Online 27 Observation Research Observation Research A research method that relies on three types of observation: people watching people people watching an activity machines watching people LO3 28 Observational Situations Situation Example LO3 People watching people People watching phenomena Machines watching people Machines watching phenomena Mystery shoppers in a supermarket Observer at an intersection counting traffic Video cameras recording behavior Traffic-counting machine monitoring traffic flow 29 Ethnographic Research Ethnographic Research The study of human behavior in its natural context; involves observation of behavior and physical setting. LO3 30 Virtual Shopping • Allows customers to “shop” with realistic complexity and variety • Tests can be altered quickly • Computer automatically collects data Virtual Grocery Store LO3 31 Sampling Procedure Universe Sample Probability Samples Non-Probability Samples LO3 32 Types of Samples LO3 Probability Samples Non-Probability Samples Simple Random Sample Convenience Sample Stratified Sample Judgment Sample Cluster Sample Quota Sample Systematic Sample Snowball Sample 33 Probability Samples 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 chance of being selected. LO3 34 Nonprobability Samples Nonprobability Sample Any sample in which little or no attempt is made to get a representative cross-section of the population. Convenience Sample A form of nonprobability sample using respondents who are convenient or readily accessible to the researcher. LO3 35 Types of Errors Measurement Error Error when there is a difference between the information desired and the information provided by research Sampling Error Error when a sample somehow does not represent the target population. Frame Error Error when a sample drawn from a population differs from the target population. Random Error Error because the selected sample is an imperfect representation of the overall population. LO3 36 Collecting the Data Field Service Firms provide: Focus group facilities Mall intercept locations Test product storage Kitchen facilities Retail audits LO3 37 Analyzing the Data CrossTabulation A method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions. LO3 38 Preparing and Presenting the Report Concise statement of the research objectives Explanation of research design Summary of major findings Conclusion with recommendations LO3 39 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? LO3 40 Impact of the Internet on Marketing Research Discuss the profound impact of the Internet on marketing research LO4 41 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 tracking research easier Slashes labor- and time-intensive research activities and costs LO4 42 Advantages of Internet Surveys Rapid development, Real-time reporting Reduced costs Personalized questions and data Improved respondent participation Contact with the hard-to-reach LO4 43 Uses of the Internet by Marketing Researchers Administer surveys Conduct focus groups Other types of marketing research http://www.greenfieldonline.com LO4 Online 44 Methods of Collecting Online Surveys • Web Survey Systems • Survey Design and Web Hosting Sites • Online Panel Providers LO4 45 Process for Online Focus Groups 1. Build a database of respondents via Web site screening questionnaire 2. Identify qualified individuals via e-mail 3. Develop a discussion guide 4. Moderator runs group by typing in questions online for all to see 5. Environment is similar to a chat room 6. Firm captures the complete text of the focus group LO4 46 Types of Online Focus Groups Real-time online focus groups Time-extended online focus groups LO4 47 Advantages of Online Focus Groups Speed Cost-effectiveness Broad geographic scope Accessibility Honesty LO4 48 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 LO4 49 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). LO4 50 Other Uses of the Internet by Marketing Researchers Distribution of requests for proposals (RFPs) and proposals Collaboration between client and research supplier Data management and online analysis Publication and distribution of reports Viewing of presentations of marketing research surveys LO4 51 Scanner-Based Research Discuss the growing importance of scanner-based research LO5 52 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. BehaviorScan LO5 Panel information from Specific groups of people, enables researchers to manipulate variables and see real results InfoScan Aggregate consumer information on all bar-coded products 53 Scanner-Based Research BehaviorScan 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. InfoScan 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. LO5 54 Competitive Intelligence Explain when marketing research should be conducted LO6 55 When Should Marketing Research Be Conducted? Where there is a high level of uncertainty When value of research information exceeds the cost of generating the information LO5 56 Competitive Intelligence Explain the concept of competitive intelligence LO6 57 Competitive Intelligence An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors. Competitive Intelligence http://www.scip.org Online LO6 58 LO6 Sources of Competitive Intelligence Internet UCC Filings Company Salespeople Suppliers Experts Periodicals CI Consultants Yellow Pages Government Agencies Trade Shows 59