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. 1Lamb, Hair, McDaniel2010-2011CHAPTER 9Decision Support Systems and Marketing Research

2. 2Marketing Decision Support SystemsExplain the concept and purpose of a marketing decision support systemLO1

3. 3DatabaseMarketingMarketing DecisionSupport SystemsThe 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. 4The Role ofMarketing ResearchDefine marketing research and explain its importance to marketing decision makingLO2

5. 5MarketingResearchThe Role ofMarketing ResearchThe process of planning, collecting, and analyzing data relevant to a marketing decision.LO2

6. 6Gathering and presenting factual statements

7. What are consumer attitudes toward our product?DescriptiveExplaining data

8. What was impact on sales after change in package design?Diagnostic“What if?”

9. How can we use research to predict results of planned marketing decisions?PredictiveThe Role ofMarketing ResearchLO2

10. 7Improve quality of decision making

11. Trace problems

12. Focus on keeping existing customers

13. Understand changes in marketplaceWhy marketing research?The Importance of Marketing ResearchLO2

14. 8Steps in a Marketing Research ProjectDescribe the steps involved in conducting a marketing research projectLO3

15. 9DefineProblemPlan Design/Primary DataSpecifySamplingProcedureCollectDataAnalyzeDataPrepare/PresentReportFollow UpThe Marketing Research Process1234567LO3

16. 10Secondary DataInformation previously collected for any purpose other than the one at hand.Advantages: Saves time and money if on target

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

20. 11Disadvantages of Secondary DataMay not give adequate detailed information

21. May not be on target with the research problem

22. Quality and accuracy of data may pose a problemLO3

23. 12Internal Corporate InformationGovernment AgenciesTrade and Industry AssociationsBusiness PeriodicalsNews MediaSources of Secondary DataLO3

24. 13Which research questions must be answered?How and whenwill data be gathered??How willthe databe analyzed?Planning theResearch DesignLO3

25. 14Primary DataInformation collected for the first time. Used for solving the particular problem under investigation.Advantages: Answers a specific research question

26. Data are current

27. Source of data is known

28. Secrecy can be maintainedLO3

29. 15Disadvantages of Primary DataExpensive

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. 16The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes.Survey ResearchSurvey ResearchLO3

34. 17Mail SurveysIn-Home InterviewsExecutive InterviewsMall Intercept InterviewsFocus GroupsTelephone InterviewsForms of Survey ResearchLO3

35. 18Open-EndedQuestionAn interview question that encourages an answer phrased in respondent’s own words.Closed-EndedQuestionAn interview question that asks the respondent to make a selection from a limited list of responses.Scaled-Response QuestionA closed-ended question designed to measure the intensity of a respondent’s answer.Questionnaire DesignLO3

36. 19Clear and conciseNo ambiguous languageOnly one questionUnbiasedReasonable terminologyhttp://www.surveymonkey.com/OnlineQuestionnaire DesignLO3

37. 20Observation ResearchLO3

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

39. 22Virtual ShoppingAllows customers to “shop” with realistic complexity and varietyTests can be altered quicklyComputer automatically collects dataVirtual Grocery StoreLO3

40. 23SampleUniverseProbability SamplesNon-Probability SamplesSampling ProcedureLO3

41. 24Probability SamplesProbabilitySample A sample in which every element in the population has a known statistical likelihood of being selected.Random SampleA sample arranged so that every element of the population has an equal chance of being selected.LO3

42. 25Nonprobability SamplesNonprobabilitySampleAny sample in which little or no attempt is made to get a representative cross-section of the population.Convenience SampleA form of nonprobability sample using respondents who are convenient or readily accessible to the researcher.LO3

43. 26Measurement ErrorError when there is a difference between the information desired and the information provided by researchSampling ErrorError when a sample somehow does not represent the target population.Frame ErrorError when a sample drawn from a population differs from the target population.Random ErrorError because the selected sample is an imperfect representation of the overall population.Types of ErrorsLO3

44. 27Analyzing the DataA 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-TabulationLO3

45. 28Preparing andPresenting the ReportConcise statement of the research objectives

46. Explanation of research design

47. Summary of major findings

48. Conclusion with recommendationsLO3

49. 29Following UpWere the recommendations followed?

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. 30The Profound Impact of the Internet onMarketing ResearchDiscuss the profound impact of the Internet on marketing researchLO4

53. 31Impact of the InternetAllows better and faster decision making

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. 32Rapid development,Real-time reportingReduced costs Personalized questions and dataImproved respondent participationContact with the hard-to-reachAdvantages ofInternet SurveysLO4

58. 33Administer surveysConduct focus groups Other types of marketing researchhttp://www.greenfieldonline.comOnlineUses of the Internet by Marketing ResearchersLO4

59. 34Advantages of Online Focus GroupsSpeed

60. Cost-effectiveness

61. Broad geographic scope

62. Accessibility

63. HonestyLO4

64. 35Web Community ResearchA carefully selected group of consumers who agree to participate in an ongoing dialogue with a particular corporation.Web communities:Engage customersAchieve customer-derived innovationsEstablish brand advocatesOffer real-time resultsLO4

65. 36Role of Blogs in Marketing ResearchRefined technologies allow companies to mine data available in Internet blogs.

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

67. 37Scanner-Based ResearchDiscuss the growing importance of scanner-based researchLO5

68. 38BehaviorScanInfoScanAggregate consumerinformation on allbar-coded productsPanel information fromSpecific groups of people,enables researchers to manipulate variables and seereal resultsScanner-Based ResearchA 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. 39BehaviorScan 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.InfoScanRetail 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.LO5Scanner-Based Research

70. 40When Should Marketing Research Be Conducted?Explain when marketing research should be conductedLO6

71. 41 When Should Marketing Research Be Conducted?Where there is a high level of uncertainty

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

73. 42Competitive IntelligenceExplain the concept of competitive intelligenceLO7

74. 43Competitive IntelligenceAn intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors.http://www.scip.orgOnlineCompetitive IntelligenceLO7