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Chapter 9: Decision Support Systems
and Marketing Research
Prepared & Designed by Laura Rush, B-books, Ltd.
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Learning Outcomes
Explain the concept and purpose of amarketing decision support system
Define marketing research and explain itsimportance to marketing decision making
Describe the steps involved in conductinga marketing research project
LO 1
LO 2
LO 3
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Learning Outcomes
Discuss the profound impact of the Interneton marketing research
Discuss the growing importance ofscanner-based research
Explain the concept of competitiveintelligence
LO5
LO 6
LO 4
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Marketing Decision Support Systems
Explain the conceptand purpose of a
marketing decisionsupport system.
LO1
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DSS System Characteristics
Interactive
Flexible
Discovery-Oriented
Accessible
LO 1
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Marketing Decision SupportSystems
Database Marketing - The
creation of a large computerizedfile of customers and potentialcustomers profiles and purchase
patterns.
The key tool for successfulone-to-one marketing.
LO 1
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Review Learning OutcomeMarketing Decision Support Systems
LO1
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The Role of Marketing Research
Define marketing researchand explain its importance tomarketing decision making.
LO2
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Marketing Research Studies
Products
Advertising
Prices
Packages
Names and Logos
Services
Buying habits
Colors
Uses
Awareness
Familiarity
New concepts
Traffic patterns
Wants
Needs
Politics
LO 2
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The Role of Marketing Research
Diagnostic
Predictive
DescriptiveGathering and presentingfactual statements
Explaining data
What if?
LO 2
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Management Uses ofMarketing Research
Improve the quality of decision making
Trace problems
Focus on keeping existingcustomers
Understand the marketplace
Alert them to marketplace
trendsGauge the value of goods and services,and the level of customer satisfaction
LO 2
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Review Learning OutcomeMarketing Research and Its Importance
LO2
Why marketing research? Improve quality ofdecision making
Trace problems
Focus on keepingexisting customers
Understand changes inmarketplace
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Steps in a Marketing Research Project
Describe the steps involvedin conducting
a marketing research project.
LO3
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The Marketing Research Process
CollectPrimary Data
SpecifySamplingProcedure
Plan Design/Secondary
Data
Identify theProblem
AnalyzeData
Prepare/PresentReport
Follow Up
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LO3
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Marketing Research
MarketingResearchProblem
MarketingResearchObjective
ManagementDecisionProblem
Determining what information is needed andhow that information can be
obtained efficiently and effectively.
The specific information neededto solve a marketing research problem;the objective should provide insightful
decision-making information.
A broad-based problem thatrequires marketing research in orderfor managers to take proper actions.
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Sources of Secondary Data
Government Agencies
Trade and Industry Associations
Business Periodicals
News Media
Internal Corporate Information
LO3
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Advantages of Secondary Data
Saves time and money if on target
Aids in determining direction forprimary data collection
Pinpoints the kinds of people toapproach
Serves as a basis of comparisonfor other data
LO3
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Disadvantages of Secondary Data
May not give adequate detailedinformation
May not be on target with theresearch problem
Quality and accuracy of data maypose a problem
LO3
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Planning the Research Design
Which researchquestions
must be answered?
How and whenwill data begathered?
How willthe data
be analyzed?
?
LO3
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Advantages of Primary Data
Answers a specific researchquestion
Data are current Source of data is known
Secrecy can be maintained
LO3
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Disadvantages of Primary Data
Expensive
Piggybacking may confuserespondents
Quality declines if interviewsare lengthy
Reluctance to participate inlengthy interviews
Disadvantages are usu ally offset by theadvantages of p r im ary data.
LO3
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Forms of Survey Research
Focus Groups
Executive Interviews
Mail Surveys
Telephone Interviews
Mall Intercept Interviews
In-Home Interviews
LO3
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Questionnaire Design
Open-EndedQuestion
Closed-EndedQuestion
Scaled-ResponseQuestion
An interview question that encouragesan answer phrased in respondents
own words.
An interview question that asksthe respondent to make a selection
from a limited list of responses.
A closed-ended questiondesigned to measure the intensityof a respondents answer.
LO3
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Questionnaire Design
Clear and concise
No ambiguous language
Unbiased
Reasonable terminology
Only one question
LO 3
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Observational Situations
Situation
Peoplewa tch ingpeople
Peoplewa tch ingphenomena
Machineswa tch ingpeople
Machineswa tch ingphenomena
Example
Mysteryshoppers in asupermarket
Observer atanintersectioncountingtraffic
Videocamerasrecordingbehavior
Traffic-countingmachinemonitoringtraffic flow
LO 3
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Ethnographic Research
The study of human behaviorin its natural context;involves observation of
behavior and physical setting.
LO 3
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Sampling Procedure
Universe Sample
ProbabilitySamples
Non-ProbabilitySamples
LO 3
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Types of Samples
ProbabilitySamples
Simple Random
SampleStratifiedSample
Cluster
SampleSystematic
Sample
Non-ProbabilitySamples
Convenience
SampleJudgment
Sample
Quota
SampleSnowballSample
LO 3
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Types of Errors
MeasurementError
Error when there is a differencebetween the information desired and the
information provided by research
Sampling
Error
Error when a sample somehow does not
represent the target population.
FrameError
Error when a sample drawn from apopulation differs from the
target population.
RandomError
Error because the selected sample isan imperfect representation of
the overall population.
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Field Service Firms
Focus group facilities
Mall intercept locations
Test product storage
Kitchen facilities
Provide:
LO 3
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Analyzing the Data
Cross-Tabulation - A method of
analyzing data that lets the analystlook at the responses to one
question in relation to the responsesto one or more other questions.
LO 3
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Preparing and Presenting theReport
Concise statement of the researchobjectives
Explanation of research design
Summary of major findings
Conclusion with recommendations
LO 3
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Following Up
Were the recommendations followed?
Was sufficient decision-making
information included in the report?
What could have been done to makethe report more useful to management?
LO 3
Review Learning Outcome
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Review Learning OutcomeSteps in a Marketing Research Project
LO 3
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Impact of the Internet onMarketing Research
Discuss the profound impact ofthe Internet on marketing research.
LO 4
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Impact of the Internet
Allows better and faster decision making
Improves ability to respond quickly tocustomer needs and market shifts
Makes follow-up studies and trackingresearch easier
Slashes labor- and time-intensive researchactivities and costs
LO 4
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Advantages of Internet Surveys
Contact with thehard-to-reach
Improved respondent
participation
Personalized questionsand data
Dramatically reduced costs
Rapid development,real-time reporting
LO 4
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Uses of the Internet byMarketing Researchers
Other types of marketing research
Conduct focus groups
Administer surveys
LO 4
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Process for Online Focus Groups
1. Build a database of respondents via Web sitescreening questionnaire
2. Identify qualified individuals via e-mail
3. Develop a discussion guide4. 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 thefocus group
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Advantages of Online FocusGroups
Speed
Cost-effectiveness Broad geographic scope Accessibility
Honesty
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Role of Consumer Generated Mediain Marketing Research
CGM is media which consumersgenerate themselves and shareamong themselves
Companies can identify the mostinfluential bloggers and learn exactlywhat they are saying (and how they
are saying it).
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Other Uses of the Internet byMarketing Researchers
Viewing of presentations ofmarketing research surveys
Publication and distributionof reports
Data management andonline analysis
Collaboration between client
and research supplier
Distribution of requests forproposals (RFPs) and proposals
LO 4
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Behavioral Targeting
Objective: Match Internet users with adsfor products and services they are mostlikely to purchase
Growth in Social Media User declared information targeting
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Review Learning Outcome
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Review Learning OutcomeImpact of the Internet on Marketing Research
LO 4
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Scanner-Based Research
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A system for gathering informationfrom a single group of
respondents by continuouslymonitoring the advertising,
promotion, and pricing they areexposed to and the things they
buy.
BehaviorScanInfoScan
LO 5
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Neuromarketing
Studying biological changes inconsumers based on visual stimuli suchas packaging and ads Electroencephalograph measures
electrical activity in the brain Galvanic skin response change in
electric resistance of the skin Eye tracking records eye movements
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When Should MarketingResearch Be Conducted?
Where there is a high level of uncertainty
When value of research information exceedsthe cost of generating the information
LO 5
Review Learning Outcome
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Review Learning OutcomeScanner-Based Research
LO5
BehaviorScan InfoScan
Panel information fromSpecific groups of people,enables researchers to
manipulate variables and seereal results
Aggregate consumerinformation on allbar-coded products
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Competitive Intelligence
Explain the concept ofcompetitive intelligence.
LO 6
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Sources of Competitive
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Sources of CompetitiveIntelligence
Internet
Company Salespeople
Experts
CI Consultants
Government Agencies
UCC Filings
Suppliers
Periodicals
Yellow Pages
Trade Shows
LO6
Review Learning Outcome
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Review Learning OutcomeCompetitive Intelligence
CI
Part of a soundmarketing strategy
Helps companiesrespond to competitivethreats
Helps reduceunnecessary costs
LO 5
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Chapter 9 Company Clip
Because the five-year-old magazine is ahead ofthe curve on gathering information on theGenNesters market segment, ReadyMade can
help other businesses figure out how to tailor theirmarketing efforts to meet the needs of thisinfluential market.http://www.cengage.com/marketing/book_content/
9781111821647_lamb/videos/ch09.html
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http://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch09.htmlhttp://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch09.htmlhttp://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch09.htmlhttp://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch09.html8/13/2019 LHM 12e ch09_PPT_IE
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Part 2 Video: Raleigh America
Raleigh America has reinvented itself withsteel bikes targeted to people who usebicycles as their main form of transportation.
http://www.cengage.com/marketing/book_content/1439039429_lamb/part_videos/part02.html
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http://www.cengage.com/marketing/book_content/1439039429_lamb/part_videos/part02.htmlhttp://www.cengage.com/marketing/book_content/1439039429_lamb/part_videos/part02.htmlhttp://www.cengage.com/marketing/book_content/1439039429_lamb/part_videos/part02.htmlhttp://www.cengage.com/marketing/book_content/1439039429_lamb/part_videos/part02.html