Transcript Basic Marketing, 13th edition

Chapter 8:
Improving Decisions
with Marketing
Information
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Marketing Information System (MIS)
 Organized for a continuous flow of information
 Gathering information
 Accessing information
 Analyzing information
 Development of intranets is speeding the adoption
 Multimedia information, not just numerical data
 Search engines make information easier to find
 Design of the MIS requires data processing expertise and marketing
expertise
 Use of MIS is focused on making better marketing decisions
 Strategy planning
 Details of implementation
 Timely control procedures
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Decision Support System (DSS)
 A computer program—an interface—between the
manager and the MIS
 Makes it easy to get needed information
 Search engines are a powerful tool for finding
what’s needed
 Easy access to databases in a data warehouse
 Makes it easy to analyze the information
 May involve marketing models—to show the
relationships among different marketing variables
 Is used as the manager is making decisions
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Examples of Uses of a Decision Support System
Selecting target markets
Competitive evaluation, such as changes in
market share
Customer analysis
Sales analysis
Cost analysis
Analysis of responses to elements of
marketing mix
Forecasting
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Marketing Research
Procedures to gather and analyze
information for marketing decision making
Focus is on new information not already
available in the MIS or other secondary data
sources
May be handled inside the firm or by
outside specialists
 Cooperation is needed between technical
specialists and manager/decision makers
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Marketing Research Process
Early
Identification
of
Solution
Defining
the
Problem
Analyzing
the
Situation
Getting
ProblemSpecific
Data
Interpreting
Data
Solving
the
Problem
Feedback to Previous Steps
Exhibit 8-2
8-4
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Primary and Secondary Data
 PRIMARY DATA: Information specifically collected to
solve a current problem. Examples:
 surveys
 experiments
 observational studies
 SECONDARY DATA: Information that has previously
been collected or published. Some examples:
 information from the Internet or a firm’s intranet
 data from Bureau of the Census
 computer databases
 internal reports
 industry trade associations
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Sources of Data
Secondary
Data
Sources
Inside Company
Outside Company
All
Data
Sources
Observation
Primary
Data
Sources
Questioning
Exhibit 8-3
8-5
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Before Gathering Primary Data
A manager should determine:
1] Is is possible to reduce the uncertainty of
this decision?
2] How much is that reduction of
uncertainty worth? Is the value > cost?
3] Can I get information from the research
fast enough to be useful?
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Changing View of the Marketing
Research Process
Explain the differences between
data and information
 Five Situations When Marketing Research
Not Needed
1. Information already available
2. Insufficient time frame
3. Inadequate resources
4. Costs outweigh the value of the research
5. Strategic importance of the problem
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Focus Group Interviews
 A popular type of qualitative research
 Involves a small group (usually 6 to 10 people) in a
discussion—usually for about 1 hour
 A group leader ("interviewer") unobtrusively guides the
discussion
 Designed to get in-depth, open-ended responses, not
intended to be "representative" of larger market
 Group interaction stimulates thinking and reactions
 Analysis of results is subjective
 May involve videotaping and or “on-line sessions” and
other technologies
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Collecting Data
Mail
Primary
Methods
for
Collecting
Survey
Data
Telephone
Personal
Interview
8-6
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Interpreting Data
Population
Sample
Key Issues
in Data
Interpretation
Confidence
Intervals
Validity
8-7
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill