4 Conducting Marketing Research and Forecasting Demand Marketing

Chapter Questions • What constitutes good marketing research? • What are good metrics for

ITC Used Extensive Market Research before launching the Sunfeast range of biscuits Copyright ©

What is Marketing Research? Marketing research is the systematic design, collection, analysis, and reporting

Types of Marketing Research Firms Syndicatedservice Custom Copyright © 2009 Dorling Kindersley (India) Pvt.

The Marketing Research Process Define the problem Develop research plan Collect information Analyze information

Step 1: Define the Problem • Define the problem • Specify decision alternatives •

Step 2: Develop the Research Plan Data Sources Research Approach Research Instruments Sampling Plan

Research Approaches Observation Ethnographic Focus Group Survey Behavioral Data Experimentation Copyright © 2009 Dorling

Focus Group in Session Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -10

Research Instruments ØQuestionnaires ØQualitative Measures ØTechnological Devices Copyright © 2009 Dorling Kindersley (India) Pvt.

Questionnaire Do’s and Don’ts • Ensure questions are free of bias • Make questions

Question Types—Dichotomous In arranging this trip, did you contact American Airlines? Yes No Copyright

Question Types—Multiple Choice With whom are you traveling on this trip? No one Spouse

Question Types—Likert Scale Indicate your level of agreement with the following statement: Small airlines

Question Types—Semantic Differential American Airlines Large ………………. . . ……. Small Experienced…………………. …. Inexperienced

Question Types—Importance Scale Airline food service is _____ to me. Extremely important Very important

Question Types—Rating Scale American Airlines’ food service is _____. Excellent Very good Good Fair

Question Types— Intention to Buy Scale How likely are you to purchase tickets on

Question Types—Completely Unstructured What is your opinion of American Airlines? Copyright © 2009 Dorling

Question Types—Word Association What is the first word that comes to your mind when

Question Types— Sentence Completion When I choose an airline, the most important consideration in

Question Types—Story Completion “I flew American a few days ago. I noticed that the

Question Types—Picture (Empty Balloons) Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -24

Question Types—Thematic Apperception Test Make up a story that reflects what you think is

Sampling Plan • Sampling unit: Who is to be surveyed? • Sample size: How

Table 4. 2 Types of Samples Probability Samples • Simple random • Stratified random

Contact Methods Mail Questionnaire Telephone Interview Personal Interview Online Interview Copyright © 2009 Dorling

Pros and Cons of Online Research Advantages • Inexpensive • Fast • Accuracy of

What is a Marketing Decision Support System (MDSS)? A marketing decision support system is

Barriers Limiting the Use of Marketing Research • • A narrow conception of the

Typical Problems in Rural Research • Low literacy levels require innovations in questionnaire design

Table 4. 3 Characteristics of Good Marketing Research ü Scientific method ü Research creativity

What is Marketing Metrics? Marketing metrics is the set of measures that helps marketers

Table 4. 4 Marketing Metrics External Internal • • • • Awareness Market share

What is Marketing-Mix Modeling? Marketing-mix models analyze data from a variety of sources, such

Marketing Dashboards • A customer-performance scorecard records how well the company is doing year

Table 4. 5 Sample Customer-Performance Scorecard Measures • • % of new customers to

Figure 4. 2 Marketing Measurement Pathways Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.

Figure 4. 3 Example of a Marketing Dashboard Copyright © 2009 Dorling Kindersley (India)

The Measures of Market Demand Potential Market Available Market Target Market Penetrated Market Copyright

Vocabulary for Demand Measurement • • • Market demand Market forecast Market potential Company

Figure 4. 4 Ninety Types of Demand Measurement Copyright © 2009 Dorling Kindersley (India)

Figure 4. 5 Market Demand Functions Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.

Product Penetration Percentage Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -48

How Can We Estimate Current Demand? • Total market potential • Area market potential

Estimating Future Demand • • • Survey of Buyers’ Intentions Composite of Sales Force

Marketing Debate ü What is the best type of marketing research? Take a position:

Marketing Discussion ü When was the last time you participated in a survey? ü

Slides: 53

Download presentation

4 Conducting Marketing Research and Forecasting Demand Marketing Management A South Asian Perspective, 13 th ed

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

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

The Marketing Research Process Define the problem Develop research plan Collect information Analyze information Make decision Present findings Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -6

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 Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. • Avoid negatives • Avoid hypotheticals • Avoid words that could be misheard • Use response bands • Use mutually exclusive categories • Allow for “other” in fixed response questions 4 -12

Question Types—Multiple Choice With whom are you traveling on this trip? No one Spouse and children Children only Business associates/friends/relatives An organized tour group Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -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 Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -15

Question Types—Semantic Differential American Airlines Large ………………. . . ……. Small Experienced…………………. …. Inexperienced Modern……………. …. . Old-fashioned Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -16

Question Types—Importance Scale Airline food service is _____ to me. Extremely important Very important Somewhat important Not very important Not at all important Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -17

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 Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -19

Question Types—Word Association What is the first word that comes to your mind when you hear the following? Airline ____________ American ___________ Travel ____________ Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -21

Question Types— Sentence Completion When I choose an airline, the most important consideration in my decision is: ______________________________________ ______________________________________. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -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. _______________________________________ _______________________________________ Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -23

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? Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -27

Table 4. 2 Types of Samples Probability Samples • Simple random • Stratified random • Cluster Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Nonprobability Samples • Convenience • Judgment • Quota 4 -28

Pros and Cons of Online Research Advantages • Inexpensive • Fast • Accuracy of data, even for sensitive questions • Versatility Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Disadvantages • Small samples • Skewed samples • Technological problems • Inconsistencies 4 -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. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -31

Barriers Limiting the Use of Marketing Research • • A narrow conception of the research Uneven caliber of researchers Poor framing of the problem Late and occasionally erroneous findings • Personality and presentational differences Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -32

Typical Problems in Rural Research • Low literacy levels require innovations in questionnaire design scales • Wide geographical dispersion requires long travels • A large number of languages and dialects, requiring multiple translations • Non-availability of working population at normal places of residence • Poor access to women respondents • Villages layout based on caste lines, requiring innovative sampling Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -33

Table 4. 3 Characteristics of Good Marketing Research ü Scientific method ü Research creativity ü Multiple methods ü Interdependence ü Value and cost of information ü Healthy skepticism ü Ethical marketing Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -34

What is Marketing Metrics? Marketing metrics is the set of measures that helps marketers quantify, compare, and interpret marketing performance. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -35

Table 4. 4 Marketing Metrics External Internal • • • • Awareness Market share Relative price Number of complaints Customer satisfaction Distribution Total number of customers • Loyalty Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Awareness of goals Commitment to goals Active support Resource adequacy Staffing levels Desire to learn Willingness to change Freedom to fail Autonomy 4 -36

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. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -37

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. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -38

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 Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -39

Vocabulary for Demand Measurement • • • Market demand Market forecast Market potential Company demand Company sales forecast Company sales potential Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -44

Estimating Future Demand • • • Survey of Buyers’ Intentions Composite of Sales Force Opinions Expert Opinion Past-Sales Analysis Market-Test Method Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -51

Marketing Debate ü What is the best type of marketing research? Take a position: 1. Marketing research should be quantitative. or 2. Marketing research should be qualitative. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -52

Marketing Discussion ü When was the last time you participated in a survey? ü How helpful do you think the information you provided was? ü Could the research have been done differently? Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4 -53