Marketing Managemet Chapter 4

Conducting Marketing
Research and. Forecasting Demand

Chapter 4
What managers want to know
and marketing managers have to
know?
• Are my customers satisfied?
• Who are my competitors?
• Why isn’t my product sold?
• Target audience?
• How should I set up price for my product?
• Where should I sell my product?
From where to get the knowledge?
Purpose of Marketing Research
• Identify changes in the existing market
• Build up a knowledge bank
• Improve market awareness & opportunities
• Reduce risk and uncertainty
• Support marketing mix decisions
• Support marketing planning and controls
• Improve understanding of marketing
what is Marketing Research?
• Marketing research is the systematic design,

collection, analysis, and reporting of data
relevant to a specific marketing situation
facing an organization.
Types of Marketing Research firms
• Syndicated-
firms.
syndicated Specialty-line
Custom
Custom
The Marketing Research Process
Step1. Defining the problem and
research objective
• Define the problem.

• Specify decision alternatives.
• State research objectives.
Step2: Develop the Research Plan
• What, how, when, who, where?????
• Includes:
– Determining the exact information needed
– Developing a plan for gathering it efficiently
– Deciding the form of the final results presentation
• Outlines:
– Sources of data and information
– Specific research approaches
– Contact methods
– Sampling plans
– Instruments for data collection
Step2: Develop the Research Plan
Types and surces of data and
information
Using secondary data
• Secondary data consist of information that
already exists somewhere, having been
collected for another purpose.
TYPES OF SECONDARY DATA
Examples
•Sales invoice
Internal
•Salesperson’s call reports
•Salesperson’s expense account
•Credit memos
•Warranty cards
Secondary
General works
Data
•Directories
Published •Periodicals
•Statistical sources
•Financial records
External
•Geodemographic data
Commercial •Diary panel data
•Store audit data
•Scanner data
•Advertising exposure data
Research approaches
The gathering of
primary data by
observing relevant
people, actions, and
situations.
Ethnographic research:
- Observation in
“natural
environment”
Mechanical
observation:
- People meters
- Checkout
Research Instruments
• Questionnaires
• Qualitative measure
• Technological devices
Closed-End Questions
• There are several types of questionnaire and
each is designed to explore different aspects
or elicit different responses. Some of the more
common include also different type of
questions/answers:
• Dichotomous
• Importance (Rates the importance of some
attribute)
• Multiple choice
• Likert scale(Respondents show agreement/disagreement)
• Semantic differential scale (A scale connecting two bipolar

words, respondents selects the point that represents his/her opinion).
• Rating scale (Rates some attributes from 1 – 5)
Buying propensity (Rates the intentions to buy)

• B. Open-End Questions
• Completely unstructured – opinion
• Word Association
• What is the first word that comes to your mind
when you hear the following?
• Airline ____________________
• Pakistani ____________________
• Travel ____________________
Sentence completion
When I choose an airline, the most important
consideration in my decision is:
_____________________________________
______________________________
Story telling empty balloons
• Thematic Apperception Test - What
do you think is happening in this picture?
Qualitative measures
• seeks in-depth, open-ended and

unquantifiable information describing
opinions, values etc., rather than sizes and
amounts in numerical form.
Technological devices
• Galvanometers.
• Tachistoscope.
• Eye cameras.
• Audiometers.
• Gps.
Choosing the Sample/ Sampling Plan
• Requires 3 Decisions:
– Who is to be surveyed?
• Sampling unit
• Sample – segment of the – How many people

population selected to should be surveyed?
• Sample size
represent the population as
a whole. – How should the people
in the sample be
chosen?
• Sampling procedure
– Sampling
• Population—all the elements, units, or individuals of
interest to researchers for specific study
• Sample—a limited number of units chosen to represent
the characteristics of a total population
– Types of sampling
– Probability—each element has an known chance for study
– Random—each element has an equal chance for study
– Stratified—study population divided into like groups
– Nonprobability: element’s likelihood of study is unknown
– Quota: population is grouped and elements are arbitrarily
chosen
Contact methods
• Communication
– Mail questionnaires
– Telephone interviews
– Face-to-face interviews
– Online questionnaires
• Observation + recording
– Personal interviews.
– Online interviews.
• Step3:Collect the information.
• Step4: analyze the results.
• Step5: Present the findings.
• Step6: Make the decision.

Barriers Limiting the Use of Marketing
Research.
Marketing metrics:is the set of measures that helps marketers quantify, compare,
and interpret marketing performance.
External Internal
• Awareness • Awareness of goals.

• Market share • Commitment to goals
• Relative price(market • Resource adequacy
share value/volume)
• No of complaints(level of • Staffing/Skill levels
dissatisfaction). • Desire to learn
• Consumer satisfaction. • Willingness to change
• Distribution/Availability. • Freedom to fail
• Total no of customers. • Autonomy
• Perceived quality. • Relative employee satisfaction
• Loyalty/Retention
• Relative perceived quality.
What Is Marketing-Mix Modeling
• Marketing-mix model analyze data from a variety
of sources i.e. retailer scanner data, company
shipment data, pricing, media & promotion
spending data to understand more preciously the
effects of specific marketing activities.
Customer or stakeholders
performance scorecard/dashboards
The Measures of Market Demand
Defining the market
• Market = the set of all actual and potential buyers of a product or
service
• Industry = a group of firms which offer a product or a class of
products that are close substitutes for each other
• Potential market = the set of customers who profess some level of
interest in a particular product or service
• Available market = the set of customers who have nterest, income
and access to a particular product or service
• served market = the part of market that the company decides to
pursue (target)
• Penetrated market = the set of customers who have already bought
a particular product or service
• TOTAL MARKET DEMAND Q= n x q x p
number of buyuers in the market
quantity purchased by an average buyer per year
price of an average unit.
Forecasting future demands
WHAT PEOPLE SAY?
• Survey of Buyers’ Intentions
• Composite of Sales Force Opinions
• Expert Opinion
WHAT PEOPLE HAVE DONE?

• Past-Sales Analysis
WHAT PEOPLE DO?

• Market-Test Method

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Conducting Marketing

Research and. Forecasting Demand

• Marketing research is the systematic design,

• Define the problem.

• Semantic differential scale (A scale connecting two bipolar

Buying propensity (Rates the intentions to buy)

• seeks in-depth, open-ended and

• Sample – segment of the – How many people

• Step4: analyze the results.

• Step5: Present the findings.

• Step6: Make the decision.

• Awareness • Awareness of goals.

WHAT PEOPLE HAVE DONE?

WHAT PEOPLE DO?

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