1. Conducting Marketing Research and Forecasting Demand4
Conducting Marketing Research and Forecasting Demand
Marketing Management, 13th ed

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?
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3. What is Marketing Research?
Marketing research is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.
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4. Types of Marketing Research Firms
Syndicated service; firms gather consumer and trade information's for a free.
Custom marketing research; hired firms for specific project :Small companies
Specialty-line; provide a special research .
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5. The Marketing Research Process
Define the problem
Develop research plan
Collect information
Analyze information
Present findings
Make decision
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6. Step 1: Define the Problem
Define the problem (symptoms & cause) (lunch internet connection for passenger aboard)
Should we offer internet?
which class should we offer?
What price should we charge?
What type of planes and length trip?
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7. Step 1: Define the Problem
Types of Researches
Exploratory; highlight on nature of problem
Descriptive; Quantify demand how many passenger buy
Causal; test the cause and the effect of relationship
Importance of research
State research objectives:
To investigate offering internet?
To Study which class should we offer?
To find What price should we charge?
To study type of planes and length trip?
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8. Step 2: Develop the Research Plan
Data sources : Primary & Secondary
Research approach
Research instruments
Sampling plan
Contact methods
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9. Research Approaches Observation: Directly ,indirectly and
Ethnographic: how the consumer live and work.
Focus group
Survey
Behavioral data : Customer database
Experimentation; Internet connection for passenger aboard
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10. Research Instruments Questionnaires Qualitative Measures
Technological Devices
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11. 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
Avoid negatives
Avoid hypotheticals
Avoid words that could be misheard
Use response bands
Use mutually exclusive categories
Allow for “other” in fixed response questions
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12. Question Types - Dichotomous
In arranging this trip, did you contact American Airlines?
 Yes  No
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13. 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
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14. 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
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15. Question Types – Semantic Differential
American Airlines
Large ………………………………...…….Small
Experienced………………….….Inexperienced
Modern……………………….…..Old-fashioned
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16. Question Types – Importance Scale
Airline food service is _____ to me.
 Extremely important
Very important
Somewhat important
Not very important
Not at all important
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17. Question Types – Rating Scale
American Airlines’ food service is _____.
 Excellent
Very good
Good
Fair
Poor
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18. 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
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19. Question Types – Completely Unstructured
What is your opinion of American Airlines?
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20. Question Types – Word Association
What is the first word that comes to your mind when you hear the following?
Airline ________________________
American _____________________
Travel ________________________
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21. Question Types – Sentence Completion
When I choose an airline, the most important consideration in my decision is: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________.
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22. 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. __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
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23. Question Types – Picture (Empty Balloons)
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24. Qualitative Measures Word association: what does BMW mean to you?
Projective techniques
Visualization; product made women feel thin
Brand personification
Laddering
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25. Technological Devices
Galvanometers
Eye cameras
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26. 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?
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27. Table 4.2 Types of Samples Probability Samples Simple random
Stratified random
Cluster
Nonprobability Samples
Convenience
Judgment
Quota
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28. Contact Methods Mail questionnaire Telephone interview
Personal interview
Online interview
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29. Pros and Cons of Online Research
Advantages
Inexpensive
Fast
Accuracy of data, even for sensitive questions
Versatility
Disadvantages
Small samples
Skewed samples
Technological problems
Inconsistencies
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30. What is a Marketing Decision Support System (MDSS)?
A marketing decision support system is a coordinated collection of data, systems, tools, and techniques with supporting hardware and software by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action.
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31. Table 4.3 Characteristics of Good Marketing Research
Scientific method
Research creativity
Multiple methods
Interdependence
Value and cost of information
Healthy skepticism
Ethical marketing
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32. What are Marketing Metrics?
Marketing metrics are the set of measures that helps marketers quantify, compare, and interpret marketing performance.
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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
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34. What is Marketing-Mix Modeling?
Marketing-mix models analyze data from a variety of sources, such as retailer scanner data, company shipment data, pricing, media, and promotion spending data, to understand more precisely the effects of specific marketing activities.
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35. Marketing Dashboards
A customer-performance scorecard records how well the company is doing year after year on customer-based measures.
A stakeholder-performance scorecard tracks the satisfaction of various constituencies who have a critical interest in and impact on the company’s performance including employees, suppliers, banks, distributors, retailers, and stockholders.
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36. 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
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37. Common Measurement Paths
Customer metrics pathway; how prospects become customers
Unit metrics pathway; to know about sales products
Cash-flow metrics pathway; how well marketing expenditures are achieving retuerns
Brand metrics pathway; development of the longer term brand equity
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38. The Measures of Market Demand
Market: A set of all actual and potential buyers of market
Potential market: a set of interest consumer in market offer
Available market: a set of consumer who have interest ,income and access to particular offer
Target market: is apart of available market the company decide to pursue
Penetrated market: a set of consumer who buy the company product
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39. Vocabulary for Demand Measurement
Market demand; the total volume that would be bought by defined customers in defend geographical area
Market forecast;
Company demand: the company’s estimated share of market demand at alternative levels of company marketing effort in a given time period.
Company sales forecast: the expected level of company sales based on a chosen marketing plan and an assumed marketing environment
Company sales potential: the sales limit approached by company demand as the company marketing effort increases relative to that of competitors.
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40. Figure 4.4 Ninety Types of Demand Measurement
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41. Figure 4.5 Market Demand Functions
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42. Figure 4.5 Market Demand Functions
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43. Estimating Future Demand
Survey of Buyers’ Intentions
Composite of Sales Force Opinions
Expert Opinion
Past-Sales Analysis
Market-Test Method
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