Copyright © 2001 by Harcourt, Inc. All rights reserved. 7-1 CHAPTER SEVEN MARKETING RESEARCH AND DECISION SUPPORT SYSTEMS Text by Profs. Gene Boone & David.

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Copyright © 2001 by Harcourt, Inc. All rights reserved.

CHAPTER SEVEN

MARKETING RESEARCH AND DECISION SUPPORT SYSTEMS

Text by Profs. Gene Boone & David KurtzMultimedia Presentation byProf. Milton PressleyThe University of New Orleans

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CHAPTER OBJECTIVESCHAPTER OBJECTIVESCHAPTER OBJECTIVESCHAPTER OBJECTIVES• Describe the development of the marketing

research function and its major activities• List and explain the steps in the marketing

research process• Differentiate between the types and sources of

primary and secondary data• Explain the different sampling techniques used by

marketing researchers• Identify the methods by which marketing

researchers collect primary data• Discuss the challenges of marketing research in

global markets• Outline important uses of computer technology

and marketing research

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Marketing ResearchMarketing ResearchMarketing ResearchMarketing Research

• Marketing research: the process of collecting and using information for marketing decision-making

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THE MARKETING THE MARKETING RESEARCH FUNCTIONRESEARCH FUNCTIONTHE MARKETING THE MARKETING RESEARCH FUNCTIONRESEARCH FUNCTION• Development of Development of

the marketing the marketing research research functionfunction

• First organized marketing research project done by N.W. Ayer in 1879

• First commercial research department in the U.S. established by Charles C. Parlin for the Curtis Publishing Co. in 1911

• Parlin counted soup cans in garbage to convince the Campbell soup Company that working-class families would buy canned soup

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THE MARKETING THE MARKETING RESEARCH FUNCTIONRESEARCH FUNCTIONTHE MARKETING THE MARKETING RESEARCH FUNCTIONRESEARCH FUNCTION• Development of Development of

the marketing the marketing research research functionfunction

• First organized marketing research project done by N.W. Ayer in 1879

• First commercial research department in the U.S. established by Charles C. Parlin for the Curtis Publishing Co. in 1911

• Parlin counted soup cans in garbage to convince the Campbell soup Company that working-class families would buy canned soup

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THE MARKETING THE MARKETING RESEARCH FUNCTIONRESEARCH FUNCTIONTHE MARKETING THE MARKETING RESEARCH FUNCTIONRESEARCH FUNCTION• Who conducts Who conducts

marketing marketing research?research?

• Fortune 200 firms typically budget about 11 million dollars each for in-house marketing research departments

• The size and organizational form of the marketing research function is typically tied to a given company’s structure

• Many firms depends on independent marketing research firms

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THE MARKETING THE MARKETING RESEARCH FUNCTIONRESEARCH FUNCTIONTHE MARKETING THE MARKETING RESEARCH FUNCTIONRESEARCH FUNCTION

Syndicated Syndicated ServicesServices

Who conducts marketing research?Who conducts marketing research?

• Organizations that regularly provide a standardized set of data to all customers

• Mediamark Research Inc. (MRI) operates a syndicated service interviewing adults about their exposure to advertising media

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ExperianExperian

A Marketing Research A Marketing Research Firm Supplying a Firm Supplying a Syndicated ServiceSyndicated Service

ExperianExperian

A Marketing Research A Marketing Research Firm Supplying a Firm Supplying a Syndicated ServiceSyndicated Service


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Mediamark Research Inc. (MRI) Operates a Syndicated Service Mediamark Research Inc. (MRI) Operates a Syndicated Service Interviewing Adults About Their Exposure to Advertising MediaInterviewing Adults About Their Exposure to Advertising MediaMediamark Research Inc. (MRI) Operates a Syndicated Service Mediamark Research Inc. (MRI) Operates a Syndicated Service Interviewing Adults About Their Exposure to Advertising MediaInterviewing Adults About Their Exposure to Advertising Media


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Syndicated Syndicated ServicesServices

Full-Service Full-Service Research SuppliersResearch Suppliers


• Organizations that contract with clients to conduct complete marketing research projects

• J. D. Power and Associates is a full-service firm specializing in domestic and international automobile markets

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J. D. Power and Associates: A Full-service Firm Specializing in J. D. Power and Associates: A Full-service Firm Specializing in Domestic and International Automobile MarketsDomestic and International Automobile MarketsJ. D. Power and Associates: A Full-service Firm Specializing in J. D. Power and Associates: A Full-service Firm Specializing in Domestic and International Automobile MarketsDomestic and International Automobile Markets


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Figure 7.1: A Full-service Marketing Research FirmFigure 7.1: A Full-service Marketing Research FirmFigure 7.1: A Full-service Marketing Research FirmFigure 7.1: A Full-service Marketing Research Firm

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Syndicated Services

Full-Service Research Suppliers

Limited-Service Limited-Service Research SuppliersResearch Suppliers


• A marketing research firm that specializes in selected activities like:• Field or telephone

interviews• Data-processing• Focus groups

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STRATEGIC IMPLICATIONS OF STRATEGIC IMPLICATIONS OF MARKETING RESEARCHMARKETING RESEARCHSTRATEGIC IMPLICATIONS OF STRATEGIC IMPLICATIONS OF MARKETING RESEARCHMARKETING RESEARCH

• Can help an organization develop effective marketing strategies

• Can help to prevent the high failure rate of new products (approximately 75 percent) by helping sellers to understand market needs

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L'Oreal KidsL'Oreal Kids

Using Marketing Using Marketing Research to Match New Research to Match New Products to Potential Products to Potential Customers. The Tangle Customers. The Tangle Free Shampoo and the Free Shampoo and the Bottle DesignBottle DesignResulted From Research Resulted From Research Among Mothers and Children. Among Mothers and Children.

L'Oreal KidsL'Oreal Kids

Using Marketing Using Marketing Research to Match New Research to Match New Products to Potential Products to Potential Customers. The Tangle Customers. The Tangle Free Shampoo and the Free Shampoo and the Bottle DesignBottle DesignResulted From Research Resulted From Research Among Mothers and Children. Among Mothers and Children.


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L’Oreal Kids Website: Fun for Kids and ParentsL’Oreal Kids Website: Fun for Kids and ParentsL’Oreal Kids Website: Fun for Kids and ParentsL’Oreal Kids Website: Fun for Kids and Parents


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STRATEGIC IMPLICATIONS OF STRATEGIC IMPLICATIONS OF MARKETING RESEARCHMARKETING RESEARCHSTRATEGIC IMPLICATIONS OF STRATEGIC IMPLICATIONS OF MARKETING RESEARCHMARKETING RESEARCH

• Estimates of new business failures run as high as 95 percent

• Many, if not most, of those who fail had business insurance coverage for catastrophes such as fire and liability

• Yet, few of those who fail acquired an arguably more important type of “insurance” – insurance against failure to understand market needs – which of course comes about through good marketing research

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MARKETING RESEARCH MARKETING RESEARCH ACTIVITIESACTIVITIESMARKETING RESEARCH MARKETING RESEARCH ACTIVITIESACTIVITIES• Marketing research activities can be divided into

three main categories: scanning, risk assessment, and monitoring

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MARKETING RESEARCH MARKETING RESEARCH ACTIVITIESACTIVITIESMARKETING RESEARCH MARKETING RESEARCH ACTIVITIESACTIVITIES• Scanning Scanning

activitiesactivities

• Searching for opportunities and challenges in the firm’s environment

• Since a firm’s environment can change rapidly, the marketing research function should play a key role to track and identify any changes that will affect the firm

• Scanning activities primarily involve in future-oriented research

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DiGiornoDiGiorno

Marketing Research Marketing Research Helped Kraft Develop Helped Kraft Develop the Product and the Product and Effective Advertising Effective Advertising for Its DiGiorno Pizzafor Its DiGiorno Pizza

DiGiornoDiGiorno

Marketing Research Marketing Research Helped Kraft Develop Helped Kraft Develop the Product and the Product and Effective Advertising Effective Advertising for Its DiGiorno Pizzafor Its DiGiorno Pizza


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MARKETING RESEARCH MARKETING RESEARCH ACTIVITIESACTIVITIESMARKETING RESEARCH MARKETING RESEARCH ACTIVITIESACTIVITIES• Risk assessment Risk assessment

activitiesactivities

• Market research helps to develop risk-inherent strategies and tactics.

• Therefore, risk assessment activities evaluate the likelihood of commercial success by linking proposed actions to feedback from customers in real or simulated situations

• Risk assessment also helps measure the costs and benefits of a particular course of action

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MARKETING RESEARCH MARKETING RESEARCH ACTIVITIESACTIVITIESMARKETING RESEARCH MARKETING RESEARCH ACTIVITIESACTIVITIES• Monitoring Monitoring

activitiesactivities• Include analyzing sales

and profit data, customer satisfaction levels, and results from advertising and promotional programs

• Can be thought of as diagnostic tools

• Aim marketing research efforts towards identifying problems and suggesting ways to correct these problems

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Figure 7.2: Types of Questions Marketing Research Can Help AnswerFigure 7.2: Types of Questions Marketing Research Can Help AnswerFigure 7.2: Types of Questions Marketing Research Can Help AnswerFigure 7.2: Types of Questions Marketing Research Can Help Answer

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Customer Satisfaction Customer Satisfaction Measurement ProgramsMeasurement ProgramsCustomer Satisfaction Customer Satisfaction Measurement ProgramsMeasurement Programs• Customer Satisfaction Measurement (CSM)

Program: procedure for measuring customer feedback against customer satisfaction goals and developing a plan of action for improvement

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SMART --- Strategic Marketing And Research Techniques: A Firm SMART --- Strategic Marketing And Research Techniques: A Firm That Assists in Measuring Customer SatisfactionThat Assists in Measuring Customer SatisfactionSMART --- Strategic Marketing And Research Techniques: A Firm SMART --- Strategic Marketing And Research Techniques: A Firm That Assists in Measuring Customer SatisfactionThat Assists in Measuring Customer Satisfaction


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Figure7.3: Figure7.3: The Marketing The Marketing Research ProcessResearch Process

Figure7.3: Figure7.3: The Marketing The Marketing Research ProcessResearch Process

THE THE MARKETING MARKETING RESEARCH RESEARCH PROCESSPROCESS

THE THE MARKETING MARKETING RESEARCH RESEARCH PROCESSPROCESS

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ShellShell

Shell Followed the Shell Followed the Marketing Research Marketing Research Process to develop its Process to develop its “Count on Shell” “Count on Shell” CampaignCampaign

ShellShell

Shell Followed the Shell Followed the Marketing Research Marketing Research Process to develop its Process to develop its “Count on Shell” “Count on Shell” CampaignCampaign


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THE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESSTHE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESS• Step oneStep one

• Define the Define the problemproblem

• A well-defined problem permits the researcher to focus on securing the exact information needed

• It increases the speed and accuracy of the research process

• Must avoid confusing symptoms with the problem

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THE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESSTHE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESS• Step oneStep one

• Define the Define the problemproblem

• The problem(s) should be written down, agreed upon by all concerned parties, and then distributed to them

• Doing so helps to keep everyone concerned in agreement and to keep the project focused on solving the problem(s)

• Doing so also helps to prevent the all-too-common tendency to spend resources attempting to answer “interesting, but not necessary” questions

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THE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESSTHE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESS• Step twoStep two

• Conduct Conduct exploratory exploratory researchresearch

• Seeking to discover the cause of a problem by discussing it with informed internal and external sources

• Can include evaluation of company records such as sales and profit analyses

• Can also include sales and profit analyses of competitors’ products

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Figure7.4: Figure7.4: Advertising Advertising Guided by Guided by Exploratory Exploratory ResearchResearch

Figure7.4: Figure7.4: Advertising Advertising Guided by Guided by Exploratory Exploratory ResearchResearch

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Using Internal DataUsing Internal DataUsing Internal DataUsing Internal Data• Three commonly available sources of valuable

internal data are sales records, financial statements, and marketing cost analyses.

• Sales analysis, an in-depth evaluation of a firm’s sales, can provide revealing results for marketing executives

• Marketing cost analyses, evaluations of expenses for tasks like selling, billing, and advertising to determine the profitability of particular customers, territories, or product lines, are also helpful

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THE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESSTHE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESS• Step threeStep three

• Formulate a Formulate a hypothesishypothesis

• Hypothesis: a tentative explanation for some specific event – a statement about the relationship among variables that carries a clear implication for testing this relationship

• Sets the stage for more in-depth research by further clarifying what researchers need to test

• Not all marketing research tests specific hypotheses

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THE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESSTHE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESS• Step fourStep four

• Create a Create a research designresearch design

• Research design: a series of decisions that, taken together, comprise a master plan or model for conducting marketing research

• Must ensure that the study will measure what the marketer intends to measure

• Must also ensure an appropriate selection of respondents

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THE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESSTHE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESS• Step fiveStep five

• Collect data:Collect data:• Secondary dataSecondary data• Primary dataPrimary data

• Secondary dataSecondary data is data from previously published or compiled sources (e.g. Census data)

• Two important advantages of secondary data:• Almost always less

expensive to gather• Less time is usually

necessary to locate and use it

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THE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESSTHE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESS• Step fiveStep five

• Collect data:Collect data:• Primary dataPrimary data• Secondary dataSecondary data

• Primary data Primary data refers to data collected for the first time specifically for a marketing research study

• Primary data can provide richer, more detailed information than secondary data

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THE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESSTHE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESS• Step sixStep six

• Interpreting and Interpreting and presenting presenting research research informationinformation

• Findings must be presented to decision-makers in a format that allows them to make effective judgments

• Cardinal rule of presenting marketing research requires that it assists decision-making rather than being an end in itself

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THE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESSTHE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESS• Step sixStep six (continued) (continued)


• Researchers must remember to speak in managerial terms rather than in the terminology understood only by research specialists

• Reports should outline technical details of the research project and methods in an appendix, if at all

• Researchers should spell out their conclusions in clear, concise, and actionable terms

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THE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESSTHE MARKETING THE MARKETING RESEARCH PROCESSRESEARCH PROCESS• Step six Step six (continued) (continued)


• An executive summary, outlining the entire research report in no more than two pages should be the first part of the market researcher’s written report

• This will help to insure that busy executives, especially those outside of the marketing area who might be copied with the report, will at least read the major points.

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Figure 7.5: The Research Report and Presentation - Figure 7.5: The Research Report and Presentation - Linking the Study and the Research UserLinking the Study and the Research UserFigure 7.5: The Research Report and Presentation - Figure 7.5: The Research Report and Presentation - Linking the Study and the Research UserLinking the Study and the Research User

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Class DiscussionClass Discussion

How and why can marketing research help to prevent failures of new businesses and new products?


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MARKETING RESEARCH METHODSMARKETING RESEARCH METHODSMARKETING RESEARCH METHODSMARKETING RESEARCH METHODS

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Secondary Data CollectionSecondary Data Collection

Government data• Nation’s most important source of marketing

data• Most frequently used government statistics• Census information available at no charge

• In local libraries• On computer disks• On the Internet

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Figure7.6: Figure7.6: Persuading People Persuading People to Participate in to Participate in Census 2000Census 2000

Figure7.6: Figure7.6: Persuading People Persuading People to Participate in to Participate in Census 2000Census 2000

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U.S. Census Bureau Website Offers Computerized Access U.S. Census Bureau Website Offers Computerized Access to the Most Frequently Used Government Statisticsto the Most Frequently Used Government StatisticsU.S. Census Bureau Website Offers Computerized Access U.S. Census Bureau Website Offers Computerized Access to the Most Frequently Used Government Statisticsto the Most Frequently Used Government Statistics


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The U.S. Census Bureau Website Explains the Economic The U.S. Census Bureau Website Explains the Economic Census and Offers Helpful Advice on How to Use Its DataCensus and Offers Helpful Advice on How to Use Its DataThe U.S. Census Bureau Website Explains the Economic The U.S. Census Bureau Website Explains the Economic Census and Offers Helpful Advice on How to Use Its DataCensus and Offers Helpful Advice on How to Use Its Data


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Government’s TIGER System• TIGER System: Topographically Integrated

Geographic Encoding and Referencing System• The system combines topographic features like

railroads, highways, and rivers with census data such as household income figures

• Marketing researchers often find even more valuable resources in this computerized mapping database

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Secondary Data CollectionSecondary Data CollectionPrivate data

• Encyclopedia of Associations provides contact information for trade associations that may have useful data

• Other valuable information can be found in:• Urich’s Guide to International Periodicals• Sales & Marketing Management’s Annual

Survey of Media Markets• A. C. Nielsen’s SalesNet scanner data from

supermarkets

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Harris InfoSourceHarris InfoSource

One of Many Providers One of Many Providers of Secondary Dataof Secondary Data

Harris InfoSourceHarris InfoSource

One of Many Providers One of Many Providers of Secondary Dataof Secondary Data


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In Addition to the In Addition to the Encyclopedia of Associations,Encyclopedia of Associations, the Gale the Gale Group Offers A Number of Other Useful Secondary ReferencesGroup Offers A Number of Other Useful Secondary ReferencesIn Addition to the In Addition to the Encyclopedia of Associations,Encyclopedia of Associations, the Gale the Gale Group Offers A Number of Other Useful Secondary ReferencesGroup Offers A Number of Other Useful Secondary References


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Figure 7.7: Figure 7.7: A Private Source A Private Source of Secondary Dataof Secondary Data

Figure 7.7: Figure 7.7: A Private Source A Private Source of Secondary Dataof Secondary Data

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Online Sources of Secondary Data• Cyberspace sometimes simplifies the search for

secondary data• A Web-based research project can cost less, and

can yield significantly faster results than offline research

• Experts estimate that approximately 50 percent of all marketing research could easily be done online

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Online Periodical Databases Like eLibrary.com Can Save Hours of Online Periodical Databases Like eLibrary.com Can Save Hours of Time That Would Otherwise Be Spent in the Stacks of a LibraryTime That Would Otherwise Be Spent in the Stacks of a LibraryOnline Periodical Databases Like eLibrary.com Can Save Hours of Online Periodical Databases Like eLibrary.com Can Save Hours of Time That Would Otherwise Be Spent in the Stacks of a LibraryTime That Would Otherwise Be Spent in the Stacks of a Library


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dNET.com Offers Access to Online Databases: dNET.com Offers Access to Online Databases: A Potentially Useful Site for Market ResearchersA Potentially Useful Site for Market ResearchersdNET.com Offers Access to Online Databases: dNET.com Offers Access to Online Databases: A Potentially Useful Site for Market ResearchersA Potentially Useful Site for Market Researchers


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Figure 7.8: Figure 7.8: Online Online Sources of Sources of Secondary Secondary DataData

Figure 7.8: Figure 7.8: Online Online Sources of Sources of Secondary Secondary DataData

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The Bureau of Economic Analysis- Another The Bureau of Economic Analysis- Another Potentially Useful Site for Market ResearchersPotentially Useful Site for Market ResearchersThe Bureau of Economic Analysis- Another The Bureau of Economic Analysis- Another Potentially Useful Site for Market ResearchersPotentially Useful Site for Market Researchers


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The Site for Bureau of Labor Statistics- Yet Another The Site for Bureau of Labor Statistics- Yet Another Potentially Useful Site for Market ResearchersPotentially Useful Site for Market ResearchersThe Site for Bureau of Labor Statistics- Yet Another The Site for Bureau of Labor Statistics- Yet Another Potentially Useful Site for Market ResearchersPotentially Useful Site for Market Researchers


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Sampling TechniquesSampling TechniquesSampling TechniquesSampling Techniques

• Sampling: the process of selecting survey respondents or other research participants

• Population (universe): total group that researchers want to study

• Census: a collection of data on all possible members of a population or universe

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Sampling TechniquesSampling TechniquesSampling TechniquesSampling Techniques• Probability sample: sample that gives every member of

the population a known chance of being selected• Simple random sample: basic type of probability

sample in which every individual in the relevant universe has an equal opportunity of selection

• Stratified sample: probability sample constructed to represent randomly selected subsamples of different groups within the total sample

• Cluster sample: probability sample in which researchers select geographic areas or clusters, and all of the chosen individuals within this area become respondents

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Sampling TechniquesSampling TechniquesSampling TechniquesSampling Techniques• Non-probability sample: arbitrary grouping that

produces data unsuited for most standard statistical tests• Convenience sample: nonprobability sample

selected from among readily available respondents

• Quota sample: nonprobability sample divided to insure representation of different segments or groups in the total sample

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Primary Research MethodsPrimary Research MethodsPrimary Research MethodsPrimary Research Methods

• Observation Observation MethodMethod

• Researchers actually view, or watch, the overt actions of the research subjects

• Useful in helping to understand how consumers actually behave in certain situations

• Can be as simple as counting passing cars or as sophisticated as people meters recording household TV-viewing habits

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Figure 7.9: Figure 7.9: Observation Observation Research Research Results in New Results in New ProductsProducts

Figure 7.9: Figure 7.9: Observation Observation Research Research Results in New Results in New ProductsProducts

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Primary Research MethodsPrimary Research MethodsPrimary Research MethodsPrimary Research Methods• Survey MethodSurvey Method

• Telephone Telephone InterviewsInterviews

• An inexpensive and quick method for obtaining a small quantity of relatively impersonal information

• Relatively high response rates• Limitations include:

• Only simple, clearly worded questions draw appropriate responses

• Personal information difficult to obtain

• Respondents can’t view pictures

• Bias due to households without telephones

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• PersonalPersonalInterviewsInterviews

• Best means for obtaining detailed information about consumers

• Interviewer can explain confusing or vague questions

• Offer Good Flexibility• Limitations:

• Slow • Expensive

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• Focus GroupsFocus Groups

• A Focus Group is an information gathering procedure in marketing research that typically brings together 8 to 12 individuals to discuss a given subject

• Can provide quick and relatively inexpensive insights

• May not produce completely honest responses to questions

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Figure 7.10:Figure 7.10:Using Focus Using Focus Groups to Groups to Develop Develop AdvertisingAdvertising

Figure 7.10:Figure 7.10:Using Focus Using Focus Groups to Groups to Develop Develop AdvertisingAdvertising

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• Mail SurveysMail Surveys

• Cost Effective• Provides anonymity that

may encourage respondents to give candid answers

• Limitations include:• Typically low response

rates• Take a long time to conduct• Questionnaires cannot

answer unanticipated questions that occur to respondents as they complete the forms

• Complex questions may not be suitable

• Bias from nonresponse

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• Fax SurveysFax Surveys

• Low response rates and long follow-up times associated with mail surveys have spurred interest in the alternative of faxing survey documents

• Faxing provisions may supplement mail surveys

• Or, faxing may be the primary method for contacting respondents and obtaining their answers

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• Online Surveys and Online Surveys and Focus GroupsFocus Groups

• Growing number of Internet users has sparked interest in going online to conduct surveys . . . and even focus groups

• Benefits include the lack of geographic restrictions, faster turn-around time, and dramatically lower costs

• A limitation: certain groups (e.g., females, seniors, certain minority groups) are currently underrepresented on the internet

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Primary Research MethodsPrimary Research MethodsPrimary Research MethodsPrimary Research Methods

• Survey MethodSurvey Method

• Experimental Experimental MethodMethod

• Experiment: Scientific investigation in which a researcher manipulates test group(s) and compares the results with those of a control group that did not receive the experimental controls or manipulations

• The most common use to date has been test marketing

• Major problem with controlled experiments comes from the failure to account for all variables in a real-life situation

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Figure 7.11:Figure 7.11:Testing a Global Testing a Global AdvertisementAdvertisement

Figure 7.11:Figure 7.11:Testing a Global Testing a Global AdvertisementAdvertisement

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DryelDryel

Using the Experimental Using the Experimental Primary Research Primary Research Method: P & G Test Method: P & G Test Marketed Its New Marketed Its New Product Category – Dryel Product Category – Dryel Home Dry-cleaning in Home Dry-cleaning in Columbus, Ohio and in Columbus, Ohio and in IrelandIreland

DryelDryel

Using the Experimental Using the Experimental Primary Research Primary Research Method: P & G Test Method: P & G Test Marketed Its New Marketed Its New Product Category – Dryel Product Category – Dryel Home Dry-cleaning in Home Dry-cleaning in Columbus, Ohio and in Columbus, Ohio and in IrelandIreland


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Conducting International Conducting International Marketing ResearchMarketing ResearchConducting International Conducting International Marketing ResearchMarketing Research• As corporations expand globally, they need to

gather knowledge about consumers in other countries

• The basic steps for international studies are the same as for domestic studies

• International studies do, however, face some different challenges

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Conducting International Conducting International Marketing ResearchMarketing ResearchConducting International Conducting International Marketing ResearchMarketing Research• A major secondary information source is the U.S.

Department of Commerce• Two of their publications provide useful

information for more than 100 countries:• Foreign Economic Trends and Their

Implications for the United States• Overseas Business Reports

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The Home Page for the U.S. Department of Commerce: The Home Page for the U.S. Department of Commerce: A Useful Site for International Market ResearchersA Useful Site for International Market ResearchersThe Home Page for the U.S. Department of Commerce: The Home Page for the U.S. Department of Commerce: A Useful Site for International Market ResearchersA Useful Site for International Market Researchers


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Figure 7.12:Figure 7.12:A Firm A Firm Specializing in Specializing in Global Global Marketing Marketing ResearchResearch

Figure 7.12:Figure 7.12:A Firm A Firm Specializing in Specializing in Global Global Marketing Marketing ResearchResearch

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COMPUTER TECHNOLOGY COMPUTER TECHNOLOGY IN MARKETING RESEARCHIN MARKETING RESEARCHCOMPUTER TECHNOLOGY COMPUTER TECHNOLOGY IN MARKETING RESEARCHIN MARKETING RESEARCH• The Marketing Information System (MIS) is a

planned, computer-based system designed to provide managers with a continuous flow of information relevant to their specific decisions and areas of responsibility

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COMPUTER TECHNOLOGY COMPUTER TECHNOLOGY IN MARKETING RESEARCHIN MARKETING RESEARCHCOMPUTER TECHNOLOGY COMPUTER TECHNOLOGY IN MARKETING RESEARCHIN MARKETING RESEARCH• The Marketing Decision Support System (MDSS)

consists of computer software that helps users quickly obtain information and apply that information in a way that supports marketing decisions

• An MDSS can create simulations or models to illustrate the likely results of changes in marketing strategies or marketing conditions

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Figure 7.13: Figure 7.13: Functions of Functions of

an MDSSan MDSS

Figure 7.13: Figure 7.13: Functions of Functions of

an MDSSan MDSS

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COMPUTER TECHNOLOGY COMPUTER TECHNOLOGY IN MARKETING RESEARCHIN MARKETING RESEARCHCOMPUTER TECHNOLOGY COMPUTER TECHNOLOGY IN MARKETING RESEARCHIN MARKETING RESEARCH• Data Mining is the process of searching through

computer files to detect patterns• The data is stored in a huge database called a data

warehouse• Can be an efficient way to make sense of huge

amounts of data• Can help create customer profiles, pinpoint

reasons for customer loyalty or the lack thereof, analyze the potential returns on changes in pricing or promotion, and sales forecasts

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Copyright © 2001 by Harcourt, Inc. All rights reserved. 7-1 CHAPTER SEVEN MARKETING RESEARCH AND DECISION SUPPORT SYSTEMS Text by Profs. Gene Boone & David.

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