MARKETING MANAGEMENT 12 th edition 4 Conducting Marketing Research and Forecasting Demand KotlerKeller

4-2 Chapter Questions What constitutes good marketing research? 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?

4-3 Build-A-Bear Workshop makes the most of “interactive entertainment retailing”

4-4 Marketing Research Defined Systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing a company.

4-5 Karmaloop.com

4-6 Types of Marketing Research Firms Syndicated- service Custom Specialty- line

4-7 The Marketing Research Process Define the problem Develop research plan Collect information Analyze information Present findings Make decision

4-8 Step 1 Define the problem Specify decision alternatives State research objectives

4-9 Step 2 Data Sources Contact Methods Research Instruments Sampling Plan Research Approach

4-10 Research Approaches Observation Focus Group Survey Behavioral Data Experimentation

4-11 Focus Group in Session

4-12 Research Instruments  Questionnaires  Qualitative Measures  Mechanical Devices

4-13 Avoid negatives Avoid hypotheticals Avoid words that could be misheard Use response bands Use mutually exclusive categories Allow for “other” in fixed response questions Questionnaire Do’s and Don’ts Ensure questions are free of bias Make questions simple Make questions specific Avoid jargon Avoid sophisticated words Avoid ambiguous words

4-14 Question Types - Dichotomous In arranging this trip, did you contact American Airlines?  Yes  No

4-15 Question Types – Multiple 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

4-16 Question Types – Likert Scale Indicate your level of agreement with the following statement: Small airlines generally give better service than large ones.  Strongly disagree  Disagree  Neither agree nor disagree  Agree  Strongly agree

4-17 Question Types – Semantic Differential American Airlines Large ………………………………...…………….Small Experienced………………….………….Inexperienced Modern………………………..………….Old-fashioned

4-18 Question Types – Importance Scale Airline food service is _____ to me.  Extremely important  Very important  Somewhat important  Not very important  Not at all important

4-19 Question Types – Rating Scale American Airlines’ food service is _____.  Excellent  Very good  Good  Fair  Poor

4-20 Question Types – Intention to Buy Scale How likely are you to purchase tickets on American Airlines if in-flight Internet access were available?  Definitely buy  Probably buy  Not sure  Probably not buy  Definitely not buy

4-21 Question Types – Completely Unstructured What is your opinion of American Airlines?

4-22 Question Types – Word Association What is the first word that comes to your mind when you hear the following? Airline ________________________ American _____________________ Travel ________________________

4-23 Question Types – Sentence Completion When I choose an airline, the most important consideration in my decision is: ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________.

4-24 Question Types – Story Completion “I flew American a few days ago. I noticed that the exterior and interior of the plane had very bright colors. This aroused in me the following thoughts and feelings.” Now complete the story. ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________

4-25 Question Types – Picture (Empty Balloons)

4-26 Question Types – Thematic Apperception Test Make up a story that reflects what you think is happening in this picture.

4-27 Qualitative Measures Shadowing Behavior mapping Consumer journey Camera journals Extreme user interviews Storytelling Unfocused groups

4-28 Mechanical Devices Galvanometers Tachistoscope Eye cameras Audiometers GPS

4-29 Sampling Plan Sampling unit: Who is to be surveyed? Sample size: How many people should be surveyed? Sampling procedure: How should the respondents be chosen?

4-30 Types of Samples Probability Simple random Stratified random Cluster Nonprobability Convenience Judgment Quota

4-31 Contact Methods Mail Questionnaire Telephone Interview Personal Interview Online Interview

4-32 Characteristics of Good Marketing Research Scientific method Research creativity Multiple methods Interdependence Value and cost of information Healthy skepticism Ethical marketing

4-33 Table 4.4 Marketing Metrics External Awareness Market share Relative price Number of complaints Customer satisfaction Distribution Total number of customers Loyalty Internal Awareness of goals Commitment to goals Active support Resource adequacy Staffing levels Desire to learn Willingness to change Freedom to fail Autonomy

4-34 Table 4.5 Sample Customer- Performance Scorecard 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 most preferred

4-35 Tools to Measure Marketing Plan Performance Sales Analysis Financial Analysis Expense- to-Sales Analysis Market Share Analysis

4-36 Sales Analysis Micro- Sales Analysis Sales- Variance Analysis

4-37 Market Share Analysis Overall market share Served market share Relative market share

4-38 Figure 4.2 The Control-Chart Model

4-39 Figure 4.3 Financial Model of Return on Net Worth

4-40 Marketing-Profitability Analysis Step 1: Identifying Functional Expenses Step 2: Assigning Functional Expenses to Marketing Entities Step 3: Preparing a Profit-and-Loss Statement for each Marketing Entity

4-41 Table 4.6 Simplified Profit-and-Loss Statement

4-42 Table 4.7 Mapping Natural Expenses into Functional Expenses

4-43 Table 4.8 Bases for Allocating Functional Expenses to Channels

4-44 Table 4.9 Profit-and-Loss Statements for Channels

4-45 Distinguishing Types of Costs Direct Nontraceable common Traceable common

4-46 Gladware uses marketing-mix modeling to test advertising effectiveness

4-47 The Measures of Market Demand Potential Market Penetrated Market Target Market Available Market

4-48 Figure 4.4 Ninety Types of Demand Measurement

4-49 Figure 4.5 Market Demand Functions

4-50 Figure 4.5 Market Demand Functions

4-51 Product Penetration Percentage

4-52 Estimating Current Demand Total market potential Area market potential –Market buildup method –Multiple-factor index method Brand development index

4-53 Table 4.10 Calculating Brand Development Index

4-54 Estimating Future Demand Survey of Buyers’ Intentions Composite of Sales Force Opinions Expert Opinion Past-Sales Analysis Market-Test Method

4-55 Purchase Probability Scale Do you intend to buy an automobile within the next 6 months? 0.00 No 0.20 Slight possibility 0.40 Fair possibility 0.60 Good possibility 0.80 High possibility 1.00 Certain

4-56 Marketing Debate What is the best type of marketing research? Take a position: 1.Marketing research should be quantitative. 2. Marketing research should be qualitative.

4-57 Marketing Discussion When was the last time you participated in a survey? How helpful do you think was the information you provided? Could the research have been done differently?