MKT 473 1nd EditionExam # 1 Study Guide Chapters: 1-3Chapter 1 (January 9 & 14)Introduction to Marketing ResearchWhy is marketing research important? How can we use marketing research? Where do we find marketing research?The Role of Marketing Research: - Every decision is better informed by the use of marketing research- Marketing uses the use of research to better understand the customers and in turn cater the business to those customers. Marketing Research turns research into usable data.- Marketing creates values for the customers because customers make purchases when the benefits exceed the costs, and the products or services offer superior value compared to the alternatives. This is why there is continued use need for information pertaining to the customer. - Marketing Research is involved in all phases of the information process:o The specification of what information is neededo The collection and analysis of the information o The interpretation of the info with respect to the objectives that motivated the study in the first place- MR assists in all aspects of marketing including product, pricing, distribution, promotion, buyer behavior, and general corporate research- Marketing Research has become even more important now that we’ve moved to a competitive global economy. Globalization of marketing research naturally follows the globalization of large multinational clients. Who does Marketing research?- Most firms and corporations have a marketing research department - It is also conducted through specialized marketing research and consulting firms, government agencies, and universities. - Some firms only provide a ‘field service’ collecting data for the client. Some collect and analyze the data. Others are full service suppliers that help the client design the research, collect the data, and analyze the data. Organization of Marketing Research- The form of marketing research depends on what size of the structure of the individual company. Organization can include: o Area of application o Function performedo Research technique- Centralized firm vs. decentralized firm:o Centralization is greater coordination and control, greater usefulness to management planning o Group level location allows research personnel to acquire valuable knowledge about divisional markets, products, practices and problemso Some companies will incorporate both in attempt to fulfill all advantages. Employment Opportunities in Marketing Research - Increasing need for skilled marketing researchers aka data crunchers- Successful researchers need human relations, communication, conceptual and analytical skills. - Successful marketing researchers that the research they are finding is used solely to make better marketing decisions. Review figures 1.2, 1.2, 1.3, and 1.4Chapter 2 (January 16 & 21) How can we find insight to the customers needs and wants? How are databases designed to be effective? In a marketing information system (MIS) or decision support system (DSS) there is a constant monitoring of consumer and market behavior so that the necessary information is always available. These systems can be narrowed down to find specific information, or used to see a broad spectrum in the market. Both systems can be used to predict and understand complex consumer behavior. Marketing information systems and Decision support systems- MIS and DDS provide a steady flow of information to the client for analytic purposes rather than on a periodic basis. - The design of these systems begins with the key decision-makers preferences and the type of information to be required.- Once the system is designed, debugged and put online constant updates are needed to keep the system up to date. - The cost and time needed to create a database for a company is substantial and often underestimated since there is continual updating necessary as well as many changes that need to take place within the company through the information obtained. Components of MISs and DDSs- Data- what info do you need?- Models-How does the market work?- Interface- How does the manager unput and extract info?Using the data, model and interface- Simulations can be programmed to be as complex and realistic as there are variables, data, experience, and assumptions to help support the interrelationships among the elements of the stimulation. This can include: o Data estimates on certain market characteristicso Customer preferenceso Loyalties o Competitor’s positions on matching products/serviceso Competitors’ access to customersComparing Marketing information technologies and marketing research projects- Both types of marketing research (short term projects and long term monitoring systems) are important approaches to marketing intelligence. Data Mining- Defined as analyzing large databases to boost sales and profits by better understanding acustomer- Data mining begins with scanner data so that a company can know more about its customers- Uses massively parallel processing (MPP) and symmetrical multiprocessing (SMP) by condensing the massive databases into more manageable sized information pools - Traditional techniques:o Regression o Forecasting sales as a function of season, price, promotions, sales force and competitor factorso Analyze who used their promotional campaigns vs. who didn’t take to the campaigns. o Cluster analysis for segmentation and neural networks to supplement forecasting- The explosion in databases, computer hardware, and software for accessing those databases and the internet are changing the way that marketing intelligence is being obtained Model System - Programs, which allow the user to manipulate the stored data. Programs include simple summing, complex statistical analysis, and optimization algorithms. Operational, tactical,and strategic formal decision models are used by entry, mid, and upper-level marketing management respectivelyDialog System - Language systems that permit managers to develop individual models and reports without the assistance of a programmer.Figures: 2.1, 2.2Chapter 3 (January 23 & 28) What is the difference between a program study and a project strategy to research? How does the research process unfold? What are the steps and how are they related?A program strategy addresses the question of what types of studies the firm should conduct andfor what purposes, whereas a project strategy deals with how a study should be conducted.