M a r k e t i n g D e c i s i o n Support

Systems
 M a r k e t i n g D e c i s i o n Support
Systems

An interactive, flexible computerized information system that

enables managers to obtain and manipulate information as they are
making decisions.

Characteristics:
u Interactive
u Flexible
u Discovery Oriented u
Accessible
 M a r k e t i n g D e c i s i o n Support
Systems

Database
Marketing The creation of a large
computerized file of customers’ and
potential customers’ profiles and
This is the key tool
purchase patterns.
for successful one-
to-one marketing.
The Role o f M a r k e t i n g R e s e a rc h

Define marketing research and

explain its importance to
marketing decision-making
The Role of M a r k e t i n g Research

Marketing The process of planning,

Research collecting, and analyzing data
relevant to a marketing
decision.
 The Role of M a r k e t i n g Research

u Gathering and presenting factual

Descriptive statements

Diagnostic u Explaining data

Predictive u Address “what if” questions

Management Uses of Marketing Research

u Improve the quality of decision making

u Trace problems
u Focus on keeping existing customers
u Understand the marketplace u Alert
them to the marketplace
trends
u Gauge the value of goods
and services and the level
of customer satisfaction
S t ep s i n a M a r k e t i n g R e s ea rc h
Project

Describe the steps involved

in conducting a marketing
research project
 i
The Marketing Research
Process

1
Define
Problem
2
Plan Design/
Primary Data 3 Specify
Sampling
Procedure
4
Collect
Data
5
Analyze
Data
6 Prepare/
Present
7 Report
Follow Up
 The M a r k e t i n g Research P r o j e c t

Marketing Determining what information is needed and

Research how that information can be obtained efficiently
Problem and effectively.

Marketing The specific information needed to solve a

Research marketing research problem the objective
should be to provide insightful decision-
Objective making information.
Management A broad-based problem that uses marketing
Decision research in order for managers to take proper
Problem actions.
S o u rc e s o f Secondary Data

Internal Corporate Information

Government Agencies

Trade and Industry Associations

Business Periodicals

News Media
 Advantages of Secondary
Data

u Saves time and money if on target

u Aids in determining the direction for primary
data collection
u Pinpoints the kinds of people to approach
u Serves as a basis of comparison for
other data
 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
The N e w Age of Secondary I n f o r m a t i o n : The
Internet

The rapid development of the Internet has eliminated

much of the drudgery associated with the collection
of secondary data.
 M a r k e t i n g Research Aggregators

Acquire, catalog, reformat, segment, and resell reports already

published by large and small marketing research firms.
Databases are getting bigger, more comprehensive, and
easier to search.
Some major aggregators are:
mindbranch.com
aarkstore.com
usadata.com
 Planning t h e Research Design

Which research How and when

questions will data be
must be answered? gathered?

?
How will
the data
be analyzed?
 P r i m a r y Data

Information collected for the first time. Used for

solving the particular problem under
investigation.

Advantages:
u Answers a specific research question
u Data are current
u Source of data is known
u Secrecy can be maintained
 Disadvantages o f P r i m a r y
Data

u Primary data can be very expensive.

Disadvantages are usually

offset by the advantages of
primary data.
 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.
 Forms of
Survey Research

In-Home Interviews Mail Surveys

Mall Intercept Interviews Executive Interviews

Telephone Interviews Focus Groups

 Questionnaire Design

An interview question that encourages

Open-Ended
an answer phrased in the respondent’s
Question
own words.

An interview question that asks

Closed-Ended
the respondent to make a selection
Question
from a limited list of responses.

Scaled- A closed-ended question

Response designed to measure the intensity
Question of a respondent’s answer.
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.
 Questionnaire Design

Clear and concise

No ambiguous language

Avoid leading questions

Avoid two questions in one

Observation Research

Observation
Research

A research method that relies on

four types of observation:
Ø people watching people
Ø people watching an activity
Ø machines watching people
Ø machines watching an activity
Observational
Situations
O bs e r v a ti ona l Research

Mystery Researchers posing as customers who gather

Shoppers observational data about a store.

A form of observation marketing research that

Behavioral uses data mining coupled with identifying Web
Targeting (BT) surfers by the IP addresses.
Ethnographic Research

Ethnographic
Research

The study of human behavior

in its natural context; involves
observation of behavior and
physical setting.
 V i r t u a l Shopping

Advantages of virtual shopping:

• Creates an environment with a realistic level of complexity and
variety.
• Allows quick set up and altering of tests. • Low
production costs.
• High flexibility.
 Experiments

• Experiments are used by researchers to gather primary data.

Experiment Variables
Price
Package design
Shelf space
Advertising theme
Advertising expenditures
Sampling Procedure

Universe Sample

Probability
Samples

Non-Probability
Samples
Types o f Sa m pl e s

Probability Non-Probability
Samples Samples

Simple Random Convenience

Sample Sample
Stratified Judgment
Sample Sample
Cluster Quota
Sample Sample
Systematic Snowball
Sample Sample
1. Simple Random Sample (SRS):
 A simple random sample is a subset of a population in which each member of the
population has an equal and independent chance of being selected.
 In other words, every possible sample of a given size has an equal probability of
being selected. This is typically achieved using random number generators or random
sampling techniques.
2. Stratified Sample:
 A stratified sample is a sampling method in which the population is divided into
distinct subgroups or strata based on certain characteristics that are relevant to the
research or study.
 Random samples are then taken independently from each stratum. This method
ensures that each subgroup is adequately represented in the sample, which can be
useful when you want to ensure diversity or specific representation of different
groups within the population.
3. Cluster Sample:
 A cluster sample is a sampling method in which the population is divided into clusters
or groups, and then a random sample of these clusters is selected.
 The entire cluster is included in the sample, and data is collected from all
members within the selected clusters. This method is often used when it is
impractical or too expensive to sample individuals directly, and clusters are a
convenient way to group elements within the population.
4. Systematic Sample:
 A systematic sample is a sampling method where you select every nth item from
a list or population after a random start.
 For example, if you have a list of 1,000 individuals and you want a sample of 100, you
might randomly select a starting point and then select every 10th person from that
point. This method can be more efficient than simple random sampling when the list
is well-organized, and it ensures that the sample is somewhat spread out across the
population.
Stratified Sampling:

 Divides the population into homogeneous subgroups (strata).

 Takes a random sample from each stratum.
 Ensures representation of all strata.
 Typically provides more precise estimates within strata.
 Useful for diverse populations.

Cluster Sampling:

 Divides the population into clusters or groups.

 Randomly selects a subset of clusters.
 Includes all members within the selected clusters.
 May introduce more variability within clusters.
 Practical when it's hard to access individual population members.

P r o b a b i l i t y S am p l es
 A sample in which every element in
Probability the population has a known
Sample statistical likelihood of being
selected.

Random A sample arranged so that every

element of the population has an
Sample equal chance of being selected.
Nonprobability Sa m pl e s

Any sample in which little or

Nonprobability no attempt is made to get a
Sample representative cross-section
of the population.

A form of nonprobability sample

Convenience using respondents who are
Sample convenient or readily
accessible to the researcher.
 selection within the subgroups. Instead, it relies on the researcher's
judgment or convenience to fill the quotas.
1. Quota Sampling:
Quota sampling can be quicker and easier to implement than some other sampling
 Quota sampling is a
methods, but it may introduce bias if the researcher's judgments in selecting
non-probability
participants are not accurate or if there are hidden differences within the subgroups.
sampling method
where researchers 2. Snowball Sampling:
divide the population
 Snowball sampling is a non-probability sampling technique often used
into subgroups or
when the population of interest is difficult to access or identify, such as
quotas based on
in hidden or marginalized communities.
certain
characteristics (e.g.,  It starts with an initial participant or "seed" who is known to the
age, gender, researcher. This participant is asked to refer other participants, and
occupation) that are those referred participants, in turn, refer more participants, creating
believed to be a chain or "snowball" effect.
relevant to the study.
 Snowball sampling is particularly useful for reaching populations that
 The researchers then are hard to reach through traditional methods. However, it can
select participants introduce bias, as the sample may not be representative of the entire
non-randomly from population, and it relies heavily on social networks and referrals.
each subgroup until
they reach a In summary, quota sampling involves dividing the population into subgroups and
predetermined selecting participants non-randomly to meet predefined quotas, while snowball
quota for each sampling involves starting with one participant and relying on referrals to recruit
category. more participants, often in hard-to-reach populations. Both methods have their
advantages and limitations, and researchers should carefully consider their
 Quota sampling is appropriateness for a given study.
different from
stratified sampling in
that it does not
involve random
 Types of E r r o r s
Error when there is a difference
Measurement
between the information desired and the
Error
information provided by the process

Sampling Error when a sample somehow does not

Error represent the target population.

Error when a sample drawn from a

Frame population differs from the
Error target population.

Error because the selected sample is

Random an imperfect representation of
Error the overall population.
 C o l l e c t i n g the Data

Field Service Firms provide:

u Focus group facilities
u Mall intercept locations
u Test product storage
u Kitchen facilities
Analyzing the Data

Cross-
Tabulation
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.
Preparing and Presenting t he Report

u Concise statement of the research

objectives

u Explanation of research design

u Summary of major findings

u Conclusion with recommendations

 F o l l o w i n g Up

u Were the recommendations followed?

u Was sufficient decision-making

information included in the report?

u What could have been done to make

the report more useful to
management?
 The P r o f ound I m p a c t o f t he
I n t e r n e t on M a rk e ti ng R e s ea rc h

Discuss the profound impact

of the Internet on marketing
research
 I m p a c t o f t he I n t e r n e t

u Under appropriate conditions, can represent the

entire population
u Has replaced computer-assisted telephone
interviewing
u Rated as having the greatest potential for further
growth
Advantages o f I n t e r n e t
Surveys

Rapid development,
Real-time reporting

Reduced costs

Personalized questions
and data

Improved respondent
participation

Contact with the

hard-to-reach
U s e s o f t he I n t e r n e t b y M a r k e t i n g
R e s ea rc he rs

Administer surveys

Conduct focus groups

Other types of marketing research

 Methods o f C o l l e c t i n g Online S u r v e y s

• Web Survey Systems

• Survey Design and Web Hosting Sites • Online Panel
Providers
 P r o c e s s f o r Online F o c us 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
The Moderator ’s Role

Provides respondents with questions

and instructions.

Provides respondents access to

stimuli, such as ad mockups or videos.
 Advantages o f Online F o c us Groups

u Better participation rates

u Cost-effectiveness
u Broad geographic scope
u Accessibility
u Honesty
Web C o m m u n i t y 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
 Role of Consumer-Generated Media in
Marketing Research

u CGM comes from various sources: blogs, message

boards, review sites, podcasts, etc.
u CGM is trusted more than traditional advertising.
S c anne r- B a sed R e s ea rc h

Discuss the growing

importance of scanner-
based research
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 InfoScan

Research program that Sales-tracking service

tracks the purchases of for the consumer
3,000 households packaged-goods
through store scanners in industry
each research market
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 70,000

supermarkets, drugstores, and mass merchandisers.
When S hou l d M a r k e t i n g R e s ea rc h Be
C ondu ct ed ?

Explain when
marketing research
should be conducted
 When Should M a r k e t i n g Research Be
Conducted?

u Depends on managers’ perceptions of its

quality, price, and timing

u When the expected value of research

information exceeds the cost of generating
the information
Competitive Intelligence

Explain the concept

of competitive
intelligence
Competitive Intelligence

An intelligence system that helps

managers assess their
competition and vendors in order
to become more efficient and
effective competitors.
Competitive
Intelligence (CI)
 Sources of
Competitive Intelligence

Internet UCC Filings

Company Salespeople Suppliers

Industry Experts Periodicals

CI Consultants Yellow Pages

Government Agencies Trade Shows