Marketing decision support systems use large databases of customer profiles and purchase patterns as a key tool for one-to-one marketing. Marketing research is the process of planning, collecting, and analyzing data relevant to marketing decisions and improves decision making by understanding markets and tracing problems. Marketing research projects generally follow steps of defining the problem, planning the research design, collecting and analyzing data, and presenting findings.

1. 1 Lamb, Hair, McDaniel 2010-2011 CHAPTER 9 Decision Support Systems and Marketing Research

2. 2 Marketing Decision Support Systems Explain the concept and purpose of a marketing decision support system LO1

3. 3 DatabaseMarketing Marketing DecisionSupport Systems The creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns. The key tool for successfulone-to-one marketing. LO1

4. 4 The Role ofMarketing Research Define marketing research and explain its importance to marketing decision making LO2

5. 5 MarketingResearch The Role ofMarketing Research The process of planning, collecting, and analyzing data relevant to a marketing decision. LO2

9. How can we use research to predict results of planned marketing decisions?Predictive The Role ofMarketing Research LO2

11. Trace problems

12. Focus on keeping existing customers

13. Understand changes in marketplaceWhy marketing research? The Importance of Marketing Research LO2

14. 8 Steps in a Marketing Research Project Describe the steps involved in conducting a marketing research project LO3

15. 9 Define Problem Plan Design/ Primary Data Specify Sampling Procedure Collect Data Analyze Data Prepare/ Present Report Follow Up The Marketing Research Process 1 2 3 4 5 6 7 LO3

17. Aids in determining direction for primary data collection

18. Pinpoints the kinds of people to approach

19. Serves as a basis of comparison for other dataLO3

21. May not be on target with the research problem

22. Quality and accuracy of data may pose a problemLO3

23. 12 Internal Corporate Information Government Agencies Trade and Industry Associations Business Periodicals News Media Sources of Secondary Data LO3

24. 13 Which research questions must be answered? How and whenwill data be gathered? ? How willthe databe analyzed? Planning theResearch Design LO3

26. Data are current

27. Source of data is known

28. Secrecy can be maintainedLO3

30. “Piggybacking” may confuse respondents

31. Quality declines if interviews are lengthy

32. Reluctance to participate in lengthy interviewsDisadvantages are usually offset by the advantages of primary data. LO3

33. 16 The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes. Survey Research Survey Research LO3

34. 17 Mail Surveys In-Home Interviews Executive Interviews Mall Intercept Interviews Focus Groups Telephone Interviews Forms of Survey Research LO3

35. 18 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. Scaled-Response Question A closed-ended question designed to measure the intensity of a respondent’s answer. Questionnaire Design LO3

36. 19 Clear and concise No ambiguous language Only one question Unbiased Reasonable terminology http://www.surveymonkey.com/ Online Questionnaire Design LO3

37. 20 Observation Research LO3

38. 21 Ethnographic Research Ethnographic Research The study of human behaviorin its natural context; involves observation of behavior and physical setting. LO3

39. 22 Virtual Shopping Allows customers to “shop” with realistic complexity and variety Tests can be altered quickly Computer automatically collects data Virtual Grocery Store LO3

40. 23 Sample Universe Probability Samples Non-Probability Samples Sampling Procedure LO3

41. 24 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

42. 25 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

43. 26 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. Types of Errors LO3

44. 27 Analyzing the Data 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. Cross-Tabulation LO3

46. Explanation of research design

47. Summary of major findings

48. Conclusion with recommendationsLO3

50. Was sufficient decision-making information included in the report?

51. What could have been done to make the report more useful to management?LO3

52. 30 The Profound Impact of the Internet onMarketing Research Discuss the profound impact of the Internet on marketing research LO4

54. Improves ability to respond quickly to customer needs and market shifts

55. Makes follow-up studies and tracking research easier

56. Slashes labor- and time-intensive research activities and costsLO4

57. 32 Rapid development, Real-time reporting Reduced costs Personalized questions and data Improved respondent participation Contact with the hard-to-reach Advantages ofInternet Surveys LO4

58. 33 Administer surveys Conduct focus groups Other types of marketing research http://www.greenfieldonline.com Online Uses of the Internet by Marketing Researchers LO4

60. Cost-effectiveness

61. Broad geographic scope

62. Accessibility

63. HonestyLO4

64. 35 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

66. Companies can identify the most influential bloggers and learn exactly what they are saying (and how they are saying it).LO4

67. 37 Scanner-Based Research Discuss the growing importance of scanner-based research LO5

68. 38 BehaviorScan InfoScan Aggregate consumerinformation on allbar-coded products Panel information from Specific groups of people, enables researchers to manipulate variables and seereal results 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. LO5

69. 39 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 Scanner-Based Research

70. 40 When Should Marketing Research Be Conducted? Explain when marketing research should be conducted LO6

72. When value of research information exceeds the cost of generating the informationLO6

73. 42 Competitive Intelligence Explain the concept of competitive intelligence LO7

74. 43 Competitive Intelligence An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors. http://www.scip.org Online Competitive Intelligence LO7