Decision Support Systems

and Marketing Research

7
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.

7 2. Define marketing research and explain its

importance to marketing decision making.
chapter

3. Describe the steps involved in conducting

a marketing research project.

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 Learning Objectives (continued)
4. Discuss the profound impact of the Internet
on marketing research.

7 5. Discuss the growing importance of

scanner-based research.
chapter

6. Explain the concept of competitive

intelligence.

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 1
Learning Objective

Explain the concept and purpose

of a marketing decision support system.

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 1
Decision Support System

An interactive, flexible
computerized information
system that enables
managers to obtain and
manipulate information as
they are making decisions.

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DSS System Characteristics
Interactive

Flexible

Discovery-Oriented
Characteristics
of a
DSS System Accessible

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Database Marketing

The creation of a large

computerized file of
customers’ and potential
customers’ profiles and
purchase patterns.

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Learning Objective

Define marketing research and

explain its importance to
marketing decision making.

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Marketing Research

The process of planning,

collecting, and analyzing
data relevant to a marketing
decision.

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Roles of Marketing Research

Marketing Research
has three roles:

Descriptive Predictive

Diagnostic

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Roles of Marketing Research
 Gathering and presenting
Descriptive factual statements

Diagnostic  Explaining data

 Attempting to estimate the

Predictive results of a planned
marketing decision

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Management Uses of 2
Marketing Research

 Improve the quality of decision making

 Trace problems

 Focus on keeping existing problems

 Understand the ever-changing

marketplace

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 3
Learning Objective

Describe the steps involved in

conducting a marketing research project.

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 3
The Marketing Research Process
Define
Problem
Plan Design/
Specify
Primary Data
Sampling
Procedure
Collect
Data
Analyze
Data
Prepare/
Present
Report
Follow Up
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 3
Marketing Research
Marketing Determining what information is needed
Research and 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.
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 3
Secondary Data

Data previously collected

for any purpose other
than the one at hand.

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 3
Sources of Secondary Data
Internal Corporate Information

Government Agencies

Trade and Industry Associations

Marketing Research Firms

Commercial Publications

News Media
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 3
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
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 3
Disadvantages of Secondary Data

 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 3
Secondary Information
The Internet
www
 Search Engines
and Directories

 Sites of Interest to
Marketing Researchers

 Discussion Groups

 Periodical, Newspaper, and Book Databases

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Basic Types of Directories

 Academic and Professional

Directories

 Commercial Portals

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Research Design

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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 3
Planning the Research Design

Which research How and when

questions will data be
must be answered? gathered?
?
How will
the data
be analyzed?

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 3
Primary Data

Information collected for

the first time. Can be
used for solving the
particular problem
under investigation.

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Advantages of Primary Data

 Answers a specific research question

 Data are current

 Source of data is known

 Secrecy can be maintained

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 3
Disadvantages of Primary Data
 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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 3
Survey Research

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

In-Home Interviews Mail Surveys

Mall Intercept Interviews Executive Interviews

Telephone Interviews Focus Groups

(Home and Central Location)

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Mall Intercept Interview

Survey research method

that involves interviewing
people in the common
areas of shopping malls.

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Executive Interviews

A type of survey that

involves interviewing
businesspeople at their
offices concerning
industrial products
or services.

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 3
Focus Group

Seven to ten people who

participate in a group
discussion led by a
moderator.

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Advantages of 3
On-Line Focus Groups

 Speed
 Cost-effectiveness
 Broad geographic scope
 Accessibility
 Honesty

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Questionnaire Design
An interview question that
Open-Ended
encourages an answer phrased in
Question respondent’s own words.

An interview question that asks

Closed-Ended
the respondent to make a selection
Question from a limited list of responses.

Scaled- A closed-ended question

Response designed to measure the intensity
Question of a respondent’s answer.
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Questionnaire Design
Clear and Concise

No Ambiguous Language

Qualities Unbiased
of
Good
Questionnaires Reasonable Terminology

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 3
Observation Research

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

People Mystery Shoppers

Watching
People One-Way Mirrors

Types of People
Observation Watching Audits
Research an Activity

Machines Traffic Counters

Watching
People Passive People Meter

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 3
Mystery Shoppers

Researchers posing as
customers who gather
observational data about
a store and collect data
about customer/employee
interactions.

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 3
Experiment

A method a researcher uses

to gather primary data.

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Sampling Procedure

Sample A subset from a large population.

The population from which

Universe a sample will be drawn.

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Probability Samples

A sample in which every element in

Probability the population has a known statistical
Sample likelihood of being selected.

A sample arranged so that every

Random element of the population has an
Sample equal change of being selected.

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 3
Nonprobability Samples

Any sample in which little or no

Nonprobability attempt is made to get a representative
Sample cross-section of the population

A form of nonprobability sample

Convenience using respondents who are
Sample convenient or readily
accessible to the researcher.

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Sampling Procedure

Universe Sample

Probability
Samples

Non-Probability
Samples

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Types of Samples
Probability Non-Probability
Samples Samples

Simple Random Convenience

Sample Sample
Stratified Judgment
Sample Sample
Cluster Quota
Sample Sample
Systematic Snowball
Sample Sample
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Types of Errors
Measurement Error

Sampling Error

Frame Error
Errors
Associated
with Sampling
Random Error

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 3
Types of Errors
Error when there is a difference
Measurement
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.
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 3
Field Service Firm

A firm that specializes in

interviewing respondents
on a subcontracted basis.

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 3
Field Service Firms

Provide
 Focus group facilities
 Mall intercept locations
 Test product storage
 Kitchen facilities
 Retail audits
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 3
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.

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Preparing and Presenting 3
the Report

 Concise statement of the research

objectives

 Explanation of research design

 Summary of major findings

 Conclusion with recommendations

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 3
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?

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 4
Learning Objective

Discuss the profound impact

of the Internet on marketing research.

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 4
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 labor-and time-intensive
research activities

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 4
Advantages of internet Surveys
Rapid development,
Real-time reporting

Reduced costs

Advantages of Personalized questions

Internet Surveys and data

Improved respondent
participation

Contact with the

hard-to-reach
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 4
Internet Samples
Unrestricted A survey in which anyone with
Internet a computer and modem can fill out
Sample the questionnaire.

Screened An Internet sample with quotas

Internet based on desired sample
Sample characteristics.

Recruited A sample in which respondents

Internet are prerecruited and must
Sample qualify to participate.
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 4
Other Uses of the Internet
Distribution of requests
for proposals

Collaboration in the
management of a research project
Other Internet
Uses Data management and
by Marketing on-line analysis
Researchers
Publication and distribution
of reports

Viewing of presentations of
marketing research surveys
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 5
Learning Objective

Discuss the growing importance

of scanner-based research.

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 5
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.

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When Should Marketing
5
Research be Conducted?

 Where there is a high

level of uncertainty

 When value of research

information exceeds the
cost of generating the
information

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 6
Learning Objective

Explain the concept of

competitive intelligence.

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 6
Competitive Intelligence

An intelligence system that

helps managers assess
their competition and
vendors in order to
become more efficient and
effective competitors.

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 6
Competitive Intelligence

 Can help identify a competitor’s

advantage

 Can help determine how

the competitor’s advantage
was achieved

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Advantages of 6
Competitive Intelligence
 Predict changes in business
relationships

 Guard against threats

 Forecast a competitor’s strategy

 Develop a successful marketing plan

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 Sources of 6
Competitive Intelligence
Internet UCC Filings

Company Personnel Suppliers

Experts Newspapers/Periodicals

CI Consultants Yellow Pages

Government Agencies Trade Shows

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