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C-9 DECISION SUPPORT SYSTEMS AND MARKETING RESEARCH
Need for More and Better Information
A. Transition from local to national marketing
1. 160 years ago
Manufacturer Consumer
Modern Industry
Engineering Production Sales/Service Intermediary Consumer
GM 1932
Research Art/Color Proving Grounds
Engineering Production Sales/Service
Consumer Research Consumer Intermediary
Shift from buyer needs to buyer wants
Movement from price to non-price competition
Review #1
II. Marketing Information System (MIS)
A. MIS – People, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers
1. Assess information needs
2. Develops needed information
3. Distributes information
Assessing Information Needs
Developing Information – Four Subsystems: Internal Data, Marketing Intelligence, Marketing Research, and Information Analysis
1. Internal Data (Decision Support System – DSS)
a. Electronic collections of information obtained from data sources within the company
b. Typical sources: sales, costs, inventories, cash flow, accounts receivable and accounts payable (accounting information)
c. Should match decision making needs
2. Marketing Intelligence (competitive intelligence) – happenings data
a. Casual
1) Media
2) Conversations
3) Internet
b. Formal
1) Sales staff reports
2) Comparison shopping
3) Other channel members
4) Services
a) Traditional – Nielson
b) Internet – Lexis-Nexis
3. Marketing Research – specific situations
a. Systematic design, collection, analysis, and reporting of data relevant to specific marketing situations facing an organization
b. More information later
4. Information Analysis – set of advanced techniques for analyzing marketing data and problems
a. Statistical Bank
1)
2)
b. Model Bank
1)
2)
Distributing Information
1. Traditional centralized MIS
2. Decentralized MIS
Review #2
Intermission After Review #2
Marketing Research Process
Format
1. Defining the problem and research objectives
2. Developing the research plan for collecting information
3. Implementing the research plan
4. Interpreting and reporting findings
Problem Definition – hands-on approach
1. Reduce the concern to specific variables
2. Perform a situation analysis
a. Size-up the situation
1) Individual
2) Group
b. Review Internal Data System
c. Review concern with other company personnel
d. Survey secondary data
1) Government
a) Statistical Abstract of the U.S. (census.gov/compendia/statab/)
b) U. S. Department of Commerce (commerce.gov/)
c) Reports research from the Earth to the moon annually
2) Private
a) Magazine
(1) Advertising Age (adage.com)
(2) SMM (salesandmarketing.com/)
b) Trade association
c) University
3. Conduct Informal Investigation
a.
b.
4. Combine specific variables with data from situation analysis and informal investigation to develop a workable problem definition ( most creative step)
a. Explode the problem and make sure all areas have been probed
b. Define terms
c. Formulate a specific hypothesis
Review #3
Developing the Research Plan
1. Determine specific information needs
2. Review secondary information
3. Review commercial data sources
4. Review online data sources
Implementing the Research Plan and Data Analysis
1. Observational Research
a. The gathering of primary data by observing relevant people, actions, and situations
b. Technical advancements
c. Ethnographic – anthropological form of observation of behavior and physical settings
2. Survey Research
a. The gathering of primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior
b. Telephone interviews
c. Personal interviews
1) Structured
2) Unstructured
d. Self-administered questionnaires – response rates as low as 3%
3. Experimental Research
a. The gathering of primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking the difference in group responses
b. Basic clinical approach
c. Consumer panels
d. Previews
e. Internet: survey’s and focus groups
Review #4
Interpreting and Reporting Findings
1. Was the hypothesis correct?
2. Was an alternative hypothesis correct?
3. If no to both, the researcher starts over
4. Devise ways to implement solutions
Sampling
A segment of the population selected for marketing research to represent the population as a whole
Plan
1. Sampling unit, who?
2. Sample size, how many?
3. Sample procedure, methodology?
4. Interpreting and reporting findings
Review Table 9.4, page 155
Review #4
Review #5
END
Review #1
The need for more and better marketing information stems from?
1) Transition from local to national marketing
2) Shift from buyer needs to buyer wants
3) Movement from price to non-price competition
4) All of the above
Review #2
The Lundberg report was given as an example of which forms of “Happenings” data?
1) Comparison shopping
2) Conversations
3) Internet
4) Media
Intermission
Review #3
U.S. government annual reports (secondary data), if laid one individual copy on top of the other, amounts to how big of a stack?
1) The distance between Los Angeles and New York
2) The distance between Los Angeles and Sidney
3) Twice the distance of the circumference of the World
4) The distance between the Earth and the Moon
Review #4
The colloquial phrase “nose counting” best describes which type of marketing research?
1) Observational Research
2) Survey Research
3) Experimental Research
4) Internet
Review #5
According to Exhibit 9.4 (page 155) in the Text, Every member of the population has a known and equal chance of selection best describes a:
1. Cluster sample
2. Convenience sample
3. Quota sample
4. Simple Random sample
END