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ConductingMarketing Research and

Forecasting Demand

4

Marketing Management

A South Asian Perspective, 13th

ed

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Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 4-2

Chapter Questions

What constitutes good marketingresearch?

What are good metrics for measuring

marketing productivity? How can marketers assess their return

on investment of marketing

expenditures? How can companies more accurately

measure and forecast demand

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ITC Used Extensive Market Researchbefore launching the Sunfeast range

of biscuits

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What is Marketing Research?

Marketing research is the systematicdesign, collection, analysis, and

reporting of data and findings relevant

to a specific marketing situation facingthe company.

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Types of Marketing Research Firms

Syndicated-service

CustomSpecialty-

line

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The Marketing Research Process

Define the problem

Develop research plan

Collect information

Analyze information

Present findings

Makedecision

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Step 1: Define the Problem

Define the problem

Specify decision alternatives State research objectives

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Step 2: Develop the Research Plan

DataSources

ContactMethods

ResearchInstruments

SamplingPlan

ResearchApproach

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Research Approaches

Observation

Focus Group

Survey

Behavioral Data

Experimentation

Ethnographic

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Focus Group in Session
http://04_wild_planet.mov/

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Research Instruments

QuestionnairesQualitative MeasuresTechnological Devices

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Questionnaire Dos and Donts

Ensure questions arefree of bias

Make questions simple

Make questions specific Avoid jargon

Avoid sophisticatedwords

Avoid ambiguous words

Avoid negatives

Avoid hypotheticals

Avoid words that could

be misheard Use response bands

Use mutually exclusivecategories

Allow for other in fixedresponse questions

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Question TypesDichotomous

In arranging this trip, did you contactAmerican Airlines?

Yes No

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Question TypesMultiple Choice

With whom are you traveling on this trip?

No one

Spouse

Spouse and children

Children only

Business associates/friends/relatives

An organized tour group

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Question TypesLikert Scale

Indicate your level of agreement with thefollowing statement: Small airlines generally givebetter service than large ones.

Strongly disagree

Disagree

Neither agree nor disagree

Agree

Strongly agree

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Question TypesSemantic Differential

American Airlines

Large ....Small

Experienced..Inexperienced

Modern...Old-fashioned

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Question TypesImportance Scale

Airline food service is _____ to me.

Extremely important

Very important

Somewhat important

Not very important

Not at all important

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Question TypesRating Scale

American Airlines food service is _____.

Excellent

Very good

Good

Fair

Poor

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Question TypesIntention to Buy Scale

How likely are you to purchase tickets onAmerican Airlines if in-flight Internet accesswere available?

Definitely buy

Probably buy

Not sure

Probably not buy

Definitely not buy

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Question TypesCompletelyUnstructured

What is your opinion of American Airlines?

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Question TypesWord Association

What is the first word that comes to your mindwhen you hear the following?

Airline ________________________

American _____________________

Travel ________________________

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Question TypesSentence Completion

When I choose an airline, the most importantconsideration in my decision is:

_____________________________________

____________________________________________________________________________________________________________________________________________________

_______________________________________________________.

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Question TypesStory Completion

I flew American a few days ago. I noticed that

the exterior and interior of the plane had verybright colors. This aroused in me the following

thoughts and feelings. Now complete the story._____________________________________________________________________________________________________________________

_____________________________________________________________________________________________________________________

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Question TypesPicture(Empty Balloons)

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Question TypesThematicApperception Test

Make up a story that reflects what you think ishappening in this picture.

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Qualitative Measures

Word Association

Projective Techniques

Visualization

Brand Personification

Laddering

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Technological Devices

Galvanometers

Tachistoscope

Eye cameras

Audiometers

GPS

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Nielsen Outdoor Leverages GPS toTrack Billboard Reach
http://www.nielsen.com/solutions/nielsenoutdoor.html

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Sampling Plan

Sampling unit: Who is to be surveyed?

Sample size: How many people should besurveyed?

Sampling procedure: How should the

respondents be chosen?

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Table 4.2 Types of Samples

Probability Samples

Simple random

Stratified random

Cluster

Nonprobability Samples

Convenience

Judgment

Quota

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Contact Methods

Mail Questionnaire

TelephoneInterview

PersonalInterview

OnlineInterview

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Pros and Cons of Online Research

Advantages

Inexpensive

Fast

Accuracy of data,even for sensitivequestions

Versatility

Disadvantages

Small samples

Skewed samples

Technologicalproblems

Inconsistencies

Wh t i

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What is aMarketing Decision Support System

(MDSS)?

A marketing decision supportsystem is a coordinated collection ofdata, systems, tools, and techniqueswith supporting hardware and softwareby which an organization gathers andinterprets relevant information from

business and environment and turns itinto a basis for marketing action.

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Barriers Limiting the Use ofMarketing Research

A narrow conception of the research

Uneven caliber of researchers

Poor framing of the problem Late and occasionally erroneous

findings

Personality and presentationaldifferences

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Typical Problems in Rural Research

Low literacy levels require innovations inquestionnaire design scales Wide geographical dispersion requires long

travels

A large number of languages and dialects,requiring multiple translations

Non-availability of working population atnormal places of residence

Poor access to women respondents Villages layout based on caste lines,

requiring innovative sampling

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Table 4.3 Characteristics ofGood Marketing Research

Scientific method

Research creativity

Multiple methods Interdependence

Value and cost of information

Healthy skepticism

Ethical marketing

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What is Marketing Metrics?

Marketing metrics is the set ofmeasures that helps marketersquantify, compare, and interpret

marketing performance.

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Table 4.4 Marketing Metrics

External Awareness

Market share

Relative price

Number of complaints

Customer satisfaction

Distribution

Total number ofcustomers

Loyalty

Internal Awareness of goals

Commitment to goals

Active support

Resource adequacy

Staffing levels

Desire to learn

Willingness to change Freedom to fail

Autonomy

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What is Marketing-Mix Modeling?

Marketing-mix models analyze datafrom a variety of sources, such as

retailer scanner data, company

shipment data, pricing, media, andpromotion spending data, to understand

more precisely the effects of specific

marketing activities.

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Marketing Dashboards

A customer-performance scorecardrecords how well the company is doingyear after year on customer-basedmeasures.

A stakeholder-performancescorecard tracks the satisfaction ofvarious constituencies who have a

critical interest in and impact on thecompanys performance includingemployees, suppliers, banks,distributors, retailers, and stockholders.

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Table 4.5 Sample Customer-PerformanceScorecard Measures

% of new customers to average #

% of lost customers to average #

% of win-back customers to average #

% of customers in various levels of satisfaction

% of customers who would repurchase

% of target market members with brand recall

% of customers who say brand is mostpreferred

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Common Measurement Paths

Customer Metrics Pathway

Unit Metrics Pathway

Cash-flow Metrics Pathway

Brand Metrics Pathway

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Figure 4.2 Marketing MeasurementPathways

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Figure 4.3 Example of aMarketing Dashboard

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The Measures of Market Demand

Potential

Market

Penetrated

Market

Target

Market

Available

Market

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Vocabulary for Demand Measurement

Market demand

Market forecast

Market potential

Company demand

Company sales forecast

Company sales potential

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Figure 4.4 Ninety Types ofDemand Measurement

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Figure 4.5Market Demand Functions

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Figure 4.5Market Demand Functions

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Product Penetration Percentage

H C W E i
http://www.tivo.com/jump/redir.asp?main=HPNav&sub=HP_Redirect&URL=/0.0.asphttp://www.tivo.com/

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How Can We EstimateCurrent Demand?

Total market potential

Area market potential

Market buildup method

Multiple-factor index method

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Table 4.6 Calculating theBrand Development Index (BDI)

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Estimating Future Demand

Survey of Buyers Intentions

Composite of Sales Force Opinions

Expert Opinion Past-Sales Analysis

Market-Test Method

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Marketing Debate

What is the best type of marketingresearch?

Take a position:1. Marketing research should be quantitative.

or

2. Marketing research should be qualitative.

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Marketing Discussion

When was the last time youparticipated in a survey?

How helpful do you think theinformation you provided was?

Could the research have been done

differently?

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