Marketing Research and Decision Support SystemsLearning ObjectivesIMS HealthWhat is Marketing Research?Marketing ResearchMarketing Research QuestionsThe New MillenniumMarket Research ProcessProblem DefinitionResearch DesignsThree General Research DesignsData Collection Methods & ExamplesData Collection MethodsData Collection Methods (con’t)Slide 15Slide 16Data Collection InstrumentsFive Errors in Question DesignSample DesignInternational ConsiderationsEvaluating Marketing ResearchEthical Issues in Marketing ResearchMarketing Decision Support SystemsSlide 24Database MarketingSummaryC H A P T E RC H A P T E R© 2007 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinMarketing Researchand DecisionSupport SystemsMarketing Researchand DecisionSupport Systems66-2© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdLearning ObjectivesLearning ObjectivesLearning ObjectivesLearning ObjectivesAfter studying this chapter, you should be able to: Understand the purpose and functions of marketing research.Be familiar with the stages of the marketing research process. Discuss different types of research designs, data collection methods, and sources of secondary and primary marketing research data.Understand many of the major issues involved with survey design and sampling.Appreciate the role of marketing research within decision support systems.6-3© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdIMS HealthIMS HealthIMS HealthIMS HealthIMS Health is the second largest marketing research firm in the United States and the largest provider of research information to the global pharmaceutical industry. IMS is expertly positioned to supply data and business solutions to organizations throughout the health care environment.6-4© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdWhat is Marketing Research?What is Marketing Research?What is Marketing Research?What is Marketing Research?Marketing research links the consumer, the customer, and the public through information used toIdentify and define marketing opportunities.Generate, refine, and evaluate marketing actions.Monitor marketing performance.Improve understanding of marketing as a process.6-5© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdMarketing ResearchMarketing ResearchMarketing ResearchMarketing ResearchMarketing research:Specifies the information required to address these issues.Designs the methods for collecting information.Manages and implements the data collection process.Analyzes the results.Communicates the findings and implications.6-6© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdMarketing Research QuestionsMarketing Research QuestionsMarketing Research QuestionsMarketing Research Questions6-7© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdThe New MillenniumThe New MillenniumThe New MillenniumThe New MillenniumMarketing Research in the New Millennium:Environmental Phenomena will affect the marketing research industry in the next decade and beyond.The traditional time line of 4 to 6 weeks for the typical research project will not be acceptable.Marketing research is becoming a part of the marketing strategy development process.Interactivity, e-commerce, and the Internet are affecting the practice of marketing research.How will data be managed?Marketing research industry itself is in transition6-8© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdMarket Research ProcessMarket Research ProcessMarket Research ProcessMarket Research ProcessThe exhibit below shows the stages of the marketing research process. The sequence begins with an understanding of the problem and ends with analysis and interpretation. The overall objective should be to generate useful, timely, and cost-effective information.Exhibit 6-26-9© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdProblem DefinitionProblem DefinitionProblem DefinitionProblem DefinitionProblem Definition:The first step in any marketing research project and is critical to its success.All parties involved must: Focus on the real research problem, not the symptoms.Anticipate how the information will be used.Avoid prescribing a specific study until the problem is fully understood and defined.6-10© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdResearch DesignsResearch DesignsResearch DesignsResearch DesignsDescriptiveDescriptiveResearchResearchCasualCasualResearchResearchNormally directed by one or more formal research questions or hypotheses.1. Cross-sectional study2. Longitudinal researchExperiments in which researchers manipulate independent variables and then observe or measure the dependent variable or variables of interest.ExploratoryExploratoryResearchResearchTypically carried out to satisfy the researcher’s desire for better understanding, or to develop preliminary background and suggest issues for a more detailed follow-up study.6-11© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdThree General Research DesignsThree General Research DesignsThree General Research DesignsThree General Research DesignsMarketing research designs are general strategies or plans of action for addressing the research problem and the data collection and analysis process.6-12© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdData Collection Methods & ExamplesData Collection Methods & ExamplesData Collection Methods & ExamplesData Collection Methods & ExamplesMarketing research information can also be categorized as either primary data or secondary data. Interrelationships among the different types of data and the various data collection methods are summarized below:6-13© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdTelephoneTelephoneSurveysSurveysTelephone interviews are relatively cost-effective; a large number of them over a wide geographical area can be conducted quickly and efficiently. Many firms use telephone interviews as their primary means of conducting survey research.FocusFocusGroupsGroupsThe most common exploratory procedure is the focus group. Focus