Decision Support Systems and Marketing Research

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Decision Support Systems and Marketing Research
8
chapter
Prepared by Deborah Baker Texas Christian
University
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Learning Objectives
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.
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chapter
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Learning Objectives (continued)
4. Discuss the profound impact of the Internet
on marketing research. 5. Discuss the growing
importance of scanner-based research. 6.
Explain the concept of competitive intelligence.
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chapter
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Learning Objective
1
Explain the concept and purpose of a marketing
decision support system.
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Decision Support System
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An interactive, flexible computerized information
system that enables managers to obtain and
manipulate information as they are making
decisions.
DSS
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DSS System Characteristics
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Database Marketing
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The creation of a large computerized file of
customers and potential customers profiles and
purchase patterns.
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Learning Objective
2
Define marketing research and explain its
importance to marketing decision making.
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Marketing Research
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The process of planning, collecting, and
analyzing data relevant to a marketing decision.
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Roles of Marketing Research
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Roles of Marketing Research
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Management Uses of Marketing Research
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• Improve the quality of decision making
• Trace problems
• Focus on keeping existing problems
• Understand the ever-changing marketplace

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Learning Objective
3
Describe the steps involved in conducting a
marketing research project.
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The Marketing Research Process
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Marketing Research
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Secondary Data
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Data previously collected for any purpose other
than the one at hand.
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Sources of Secondary Data
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Advantages of Secondary Data
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• 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

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Disadvantages of Secondary Data
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• May not be on target with the research problem
• Quality and accuracy of data may pose a problem

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The New Age of Secondary Information
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The Internet

• Search Enginesand Directories
• Sites of Interest toMarketing Researchers
• Discussion Groups
• Periodical, Newspaper, and Book Databases

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Basic Types of Directories
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• Academic and Professional Directories
• Commercial Portals

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Research Design
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Specifies which research questions must be
answered, how and when the data will be gathered,
and how the data will be analyzed.
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Planning the Research Design
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Primary Data
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Information collected for the first time. Can be
used for solving the particular problem under
investigation.
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Advantages of Primary Data
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• Answers a specific research question
• Data are current
• Source of data is known
• Secrecy can be maintained

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Disadvantages of Primary Data
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• Expensive
• Quality declines if interviews are lengthy
• Reluctance to participate in lengthy interviews

Disadvantages are usually offset by the
advantages of primary data!
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Survey Research
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The most popular technique for gathering primary
data in which a researcher interacts with people
to obtain facts, opinions, and attitudes.
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Forms of Survey Research
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Mall Intercept Interview
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Survey research method that involves interviewing
people in the common areas of shopping malls.
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Executive Interviews
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A type of survey that involves interviewing
businesspeople at their offices concerning
industrial products or services.
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Focus Group
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Seven to ten people who participate in a group
discussion led by a moderator.
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Advantages of On-Line Focus Groups
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• Speed
• Cost-effectiveness
• Broad geographic scope
• Accessibility
• Honesty

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Questionnaire Design
3
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Questionnaire Design
3
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Observation Research
3

• A research method that relies on three types of
  observation
• people watching people
• people watching an activity
• machines watching people

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Observation Research
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People Watching People
Mystery Shoppers
One-Way Mirrors
Types ofObservationResearch
People Watching an Activity
Audits
Machines WatchingPeople
Traffic Counters
Passive People Meter
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Mystery Shoppers
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Researchers posing as customers who gather
observational data about a store and collect
data about customer/employee interactions.
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Experiment
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A method a researcher uses to gather primary
data.
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Sampling Procedure
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Probability Samples
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Nonprobability Samples
3
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Sampling Procedure
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Probability Samples
Non-Probability Samples
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Types of Samples
3
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Types of Errors
3
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Types of Errors
3
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Field Service Firm
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A firm that specializes in interviewing
respondents on a subcontracted basis.
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Field Service Firms
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Provide

• Focus group facilities
• Mall intercept locations
• Test product storage
• Kitchen facilities
• Retail audits

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Cross-Tabulation
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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.
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Preparing and Presenting the Report
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• Concise statement of the research objectives
• Explanation of research design
• Summary of major findings
• Conclusion with recommendations

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Following Up
3

• Were the recommendations followed?
• Was sufficient decision-making information
  included in the report?
• What could have been done to make the report
  more useful?

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Learning Objective
4
Discuss the profound impact of the Internet on
marketing research.
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Impact of the Internet
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• 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 labor-and time-intensive research
  activities

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Advantages of internet Surveys
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Internet Samples
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Other Uses of the Internet
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Learning Objective
5
Discuss the growing importance of
scanner-based research.
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Scanner-Based Research
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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
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When Should Marketing Research be Conducted?
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• Where there is a high level of uncertainty
• When value of research information exceeds the
  cost of generating the information

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Learning Objective
6
Explain the concept of competitive intelligence.
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Competitive Intelligence
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An intelligence system that helps managers assess
their competition and vendors in order to become
more efficient and effective competitors.
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Competitive Intelligence
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• Can help identify a competitors advantage
• Can help determine how the competitors
  advantagewas achieved

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Advantages of Competitive Intelligence
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• Predict changes in business relationships
• Guard against threats
• Forecast a competitors strategy
• Develop a successful marketing plan

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Sources of Competitive Intelligence
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