DECISION SUPPORTSYSTEMS AND MARKETING RESEARCH Prepared by Angela Zigras, Seneca CollegeDeborah Baker, Texas Christian University
You will learn to ...1. Explain the concept and purpose of a marketing decision support system.2. Define marketing research and explain its importance to marketing decision making.3. Describe the steps involved in conducting a marketing research project.
You will learn to ...4. Discuss the growing importance of scanner- based research.5. Explain when marketing research should and should not be conducted.
Marketing Intelligence Everyday information about developments in the marketing environment that managers use to prepare and adjust marketing plans.
Decision Support System An interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions.
DSS System Characteristics Interactive Flexible Discovery-OrientedCharacteristics of a DSS System Accessible
Database Marketing The creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns.
Marketing Research The process of planning, collecting, and analyzing data relevant to a marketing decision.
Defining Market Research (1) Research is the systematic and objective approach to investigate a specific problem that needs a solution. Research is a process by which a series of well thought out and carefully executed activities enable one to enquire, investigate or examine a problem to discover new facts to deal with the problem.
Defining Research (2) Systematic : well organised and planned Objectivity : unbiased and unemotional The information is used to identify and define opportunities and problems, and make recommendations on solutions Market Research links consumer, customer and the public to the marketers through information. Generate, refine and evaluate marketing actions, performance and the marketing process.
Issues to consider with Problem definition Past information (secondary P data/MIS) R Resources and constraints Objectives O Buyer behaviour (human or B organisational) L Legal environment Economic environment E Marketing and technological M skills
Roles of Marketing Research Marketing Research has three roles:Descriptive Predictive Diagnostic
Roles of Marketing Research Gathering and presenting Descriptive factual statements Diagnostic Explaining data Attempting to estimate the Predictive results of a planned marketing decision
Management Uses of Marketing Research Improve the quality of decision making Trace problems Focus on keeping existing customers Understand the ever-changing marketplace
Steps in a Marketing Research Project DefineProblem Plan Design/ Specify Primary Data Sampling Procedure Collect Data Analyze Data Prepare/ Present ReportFollow Up
Marketing Research Marketing Determining what information is needed and Research how that information can be Problem obtained efficiently and effectively. Marketing The specific information needed to solve a marketing research problem; Research the objective should provide insightful Objective decision-making information.Management A broad-based problem that Decision requires marketing research in order Problem for managers to take proper actions.
Objective setting example 1 Management Problem: Should a new product be launched? Research Objective: Determine consumer preference and purchase intentions for the proposed new product.
Objective setting example 2 Management Problem: Should the ad campaign be changed? Research Objective: To determine effectiveness of the current campaign.
Objective setting example 3 Management Problem: Should the price of the brand be increased? Research Objective: To determine the price elasticity of demand and the impact on sales and profits of various levels of price changes.
Sources of Secondary Data Internal Information Marketing Research Firms Trade and Industry Associations National Research Bureaus Professional Associations Commercial Publications
Secondary Data Data previously collected for any purpose other than the one at hand.
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 www and Directories Sites of Interest to Marketing Researchers Discussion Groups Periodical, Newspaper, and Book Databases
Basic Types of Directories Academic and Professional Directories Commercial Portals
Research Design Specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed.
Planning the Research Design Which research How and when questions will data bemust be answered? gathered? ? How will the data be analyzed?
Primary Data Information collected for the first time. Can be used for solving the particular problem under investigation.
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
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 ResearchMall Intercept Interviews Mail Surveys Computer-assisted Internet Surveys Personal Interviewing Telephone Interviews Focus Groups(Home and Central Location)
Mall Intercept Interview Survey research method that involves interviewing people in the common areas of shopping malls.
Computer-Assisted Personal Interviewing An interviewing method in which the interviewer reads the questions from a computer screen and enters the respondent’s data directly into the computer.
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 research easier Slashes labour-and time-intensive research activities
Advantages of Internet Surveys Rapid development, Real-time reporting Reduced costs Advantages of Personalized questionsInternet Surveys and data Improved respondent participation Contact with the hard-to-reach
Internet SamplesUnrestricted A survey in which anyone with Internet a computer and modem can fill out Sample the questionnaire. Screened An Internet sample with quotas based Internet on desired sample characteristics. Sample Recruited A sample in which respondents Internet are prerecruited and must Sample qualify to participate.
Other Uses of the Internet Distribution of requests for proposals Collaboration in the management of a research projectOther Internet Uses Data management andby Marketing on-line analysis Researchers Publication and distribution of reports Viewing of presentations of marketing research surveys
Focus Group Seven to ten people who participate in a group discussion led by a moderator.
Questionnaire Design An interview question that encouragesOpen-Ended an answer phrased in respondent’s own Question words. An interview question that asksClosed-Ended the respondent to make a selection from Question a limited list of responses. Scaled- A closed-ended question Response designed to measure the intensity Question of a respondent’s answer.
Questionnaire Design Clear and Concise No Ambiguous Language Qualities Unbiased of GoodQuestionnaires Reasonable Terminology
Observation Research A research method that relies on three types of observation: people watching people people watching an activity machines watching people
Observation Research People Mystery Shoppers Watching People One-Way Mirrors Types of PeopleObservation Watching Audits Research an Activity Machines Traffic Counters Watching People Passive People Meter
Mystery Shoppers Researchers posing as customers who gather observational data about a store and collect data about customer/employee interactions.
Experiment A method a researcher uses to gather primary data.
Sampling ProcedureSample A subset from a large population. The population from whichUniverse a sample will be drawn.
Probability Samples A sample in which every element inProbability the population has a known statistical Sample likelihood of being selected. A sample arranged so that every elementRandom of the population has an equal change ofSample being selected.
Nonprobability Samples Any sample in which little or no attemptNonprobability is made to get a representative cross- Sample section of the population A form of nonprobability sampleConvenience using respondents who are Sample convenient or readily accessible to the researcher.
Sampling Procedure SampleUniverse Probability Samples Non-Probability Samples
Types of Errors Measurement Error Sampling Error Frame Error Errors Associatedwith Sampling Random Error
Types of Errors Error when there is a differenceMeasurement between the information desired and the Error information provided by research 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.
Field Service Firm A firm that specializes in interviewing respondents on a subcontracted basis.
Collecting DataField Service Firms Provide Focus group facilities Mall intercept locations Test product storage Kitchen facilities Retail audits
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 the Report Concise statement of the research objectives Explanation of research design Summary of major findings Conclusion with recommendations
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?
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.
When Should MarketingResearch be Conducted? Where there is a high level of uncertainty When value of research information exceeds the cost of generating the information