Transcript CHAPTER EIGHT

CHAPTER EIGHT
DECISION SUPPORT
SYSTEMS AND
MARKETING RESEARCH
Prepared by Jack Gifford
Miami University (Ohio)
© 2000 South-Western College Publishing
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MARKETING DECISION SUPPORT
SYSTEMS
Accurate and timely information is the
lifeblood of marketing decision making.
Good information can help maximize an
organization’s sales and efficiently use scarce
company resources
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DECISION SUPPORT SYSTEM
(DSS)
A marketing DSS is an interactive, flexible
computerized information systems that enables
managers to obtain and manipulate
information as they are making decisions
Interactive
Flexible
Discovery-oriented
Accessible
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From data to
information, knowledge
and wisdom
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DATA-BASED MARKETING
The fastest-growing use of DSS is for
database marketing
The creation of large data files related to
specific existing or potential customers
These relational data bases can be
combined with other internal or external
data sources to allow data mining from
data warehouses
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THE ROLE OF MARKETING RESEARCH
Any discussion of the importance of information to the
marketer must include a discussion of marketing
research.
Marketing research allows managers to make decisions
based on objective, systematically gathered data rather
than on intuition.
Marketing research is the process of planning,
collecting and analyzing data relevant to a marketing
decision
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THE THREE ROLES OF
MARKETING RESEARCH
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DIFFERENCES BETWEEN MARKETING
RESEARCH AND DECISION SUPPORT SYSTEMS
MARKETING RESEARCH
DECISION SUPPORT
SYSTEM
MR is part of a DSS
Problem-oriented
Continuously channels
information about
environmental changes
into the organization
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MANAGEMENT USES OF
MARKETING RESEARCH
Improving the quality of decision-making
Tracing problems
Keeping existing customers
Understanding the ever-changing marketplace
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WHAT IS GOOD MARKETING
RESEARCH
What is marketing research?
Systematic and objective
process
Generation of new information
For use in making marketing
decisions
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MARKETING RESEARCH
STAGES IN THE
RESEARCH PROCESS
Problem/
Opportunity
Identification
Planning Research Design
Selecting a Sample
Analyzing Data
Collecting Data
Conclusions and Report
Following Up /Feedback
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THE RESEARCH PROCESS: STEP ONE
Problem/Opportunity Identification and Formulation
Usually occur due to internal or external
changes in a companies environment
Problems are often carefully disguised
opportunities
The marketing research problem is
information-oriented
The marketing research objective is to
provide insightful decision-making
information
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THE RESEARCH PROCESS: STEP ONE
Problem/Opportunity Identification and Formulation
A valuable resource throughout the research process,
but particularly in the problem/opportunity
identification stage is secondary data
Secondary data are data previously collected for any purpose
other than the one at hand.
Secondary data saves time and money
Help formulate problem statement
© 2000 South-Western College Publishing
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TRADITIONAL SOURCES OF
SECONDARY DATA
Internal company
information
Market research firms
Trade associations
Commercial publications
National research
bureaus, professional
associations, foundations
Government
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THE NEW AGE OF SECONDARY
INFORMATION - THE INTERNET AND
WORLD WIDE WEB
Browsers
World Wide Web
Search engines
Newsgroups
Bulletin boards
Smart agents
Databases on CD-ROMs
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THE RESEARCH PROCESS: STEP TWO
Research Design and Gathering Primary Data
 Research design
Which research questions must be
answered?
How and when the data will be gathered?
How the data will be analyzed?
 Primary data: information collected
for the first time
Expensive and time consuming
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THE RESEARCH PROCESS: STEP TWO
Research Design and Gathering Primary Data
Telephone interviews
Primary Data
Survey research
Central-location phone
In-bound telephone surveys
Computer disk by mail
survey
Computer assisted...
Personal-interviewing
Self-interviewing
Mall intercept interview
In-home interview
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THE RESEARCH PROCESS: STEP TWO
Research Design and Gathering Primary Data
•Advantages
•Speed & low cost
•Creation of panels for efficiency
•Good for asking only a few
questions
•Reach large numbers of people
•Graphic & audio capabilities
Primary Data
Survey research
(continued)
Internet surveys
•Disadvantages
•Non-representativeness
•Security issues
•Unrestricted sampling
•Screened vs recruited samples
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THE RESEARCH PROCESS: STEP TWO
Research Design and Gathering Primary Data
•Advantages
Primary Data
•Speed
Survey research
(continued)
•Cost effectiveness
•Broad geographic scope
•Accessibility
•Screen names (anonymity)
Cyber focus
groups
•Disadvantages
•Non-representativeness
•Group dynamics may not work
•Unable to observe & hear
participants
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THE RESEARCH PROCESS: STEP TWO
Research Design and Gathering Primary Data
Questionnaire design
Open-ended questions
Closed-ended questions
Scaled response questions
Do you eat bagels at
least once a week?
Describe what you like
about bagels.
On a scale of 1 to 10,
how would you rate the
bagel you just ate?
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THE RESEARCH PROCESS: STEP TWO
Research Design and Gathering Primary Data
Observation research
Mystery shoppers
One-way mirror
observations
Traffic counters
Passive people meters
Experiments
Marketplace / Field
Laboratory
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THE RESEARCH PROCESS: STEP THREE
Selecting a Sample
What is a sample?
What is a census?
Who should be sampled?
Size of sample?
How is sample selected?
Probability or non probability
sampling method?
Measurement error?
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THE RESEARCH PROCESS: STEPS FOUR AND FIVE
Collecting and Analyzing Data
Stage Four: Collecting
Data
Minimize errors
The pretest
Use of field service firms
Stage Five: Analyzing
the Data
Editing ---> Coding
Statistical and qualitative
analysis
Cross-tabulation
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THE RESEARCH PROCESS: STEP SIX
Preparing and Presenting the Report
Stage Six: Drawing conclusions and
Preparing the Report
Written and oral
Executive summary
Presentation quality
Did it…
Meet the objectives established in the
proposal?
Was the correct methodology
followed?
Are the conclusions and
recommendations logical
Chapter 9
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THE RESEARCH PROCESS: STEP SEVEN
Following up and feedback
 Were the recommendations
followed? Why or why not?
Did the research finding suggest
additional areas to explore?
Were there weaknesses in the
research that can be avoided next
time?
Chapter 9
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WHEN SHOULD MARKETING
RESEARCH BE CONDUCTED?
Value of research
information exceeds the cost
of generating the
information
When time permits
conducting quality research
Where there is a high level of
uncertainty
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