Marketing Management Chapter 3 and 4

PRESENTOR: ANN LOUELEN B.
ESTRADA
FROM ROXAS ORIENTAL MINDORO
BS IN BUSINESS ADMINISTRATION- MAJOR IN FINANCIAL MANAGEMENT
PARADIGM COLLEGES OF SCIENCE AND TECHNOLOGY
AREA FINANCE ASSOCIATE- TAYTAY SA KAUSWAGAN (A MICROFINANCE NGO.) INC.
FORMER ACCOUNTING STAFF AT SUNMADE, STA. ROSA LAGUNA AND CALAPAN TELEPHONE SYSTEM
MEMBER OF PL COMMUNITY
WRITER AT UGLY WRITERS
Hugot Muna Tayo!
Nagkamali ka na ba dahil hindi mo muna

TINANONG?
INALAM?
CHAPTER 3
MARKETING
RESEARCH
MARKETING RESEARCH
 Is the function which links the consumer, customer, and public to
the marketer through information- information used to identify
and define marketing opportunities and problems, generate,
refine, and evaluate marketing actions, monitor marketing
performance, and improve understanding of marketing as a
process.
 Mission: To gather, analyze, and interpret marketing and other
relevant information needed for decision making at all levels of
management.
Three Major Functions of Marketing
Research
1. Scanning for Opportunities and Threats
A good research operation collects and analyzes information
about customers, competitors, technology, global economic
conditions, and other factors.
TARGETS: Markets
Competitors
Technology
Environment
Economic (regulatory, political, social and cultural)
2. Risk Assessment of future programs
When considering alternative marketing strategies, the marketing manager should
test them against different scenarios.
TARGETS: Own Customers
Competitors’ customers
Nonusers
3. Monitoring of current programs
Marketing research plays a key role in monitoring the progress of the plan toward
its objectives.
TARGETS:
Tracking performance evaluation among all intended segments including
(Own Customers, Competitors’ customers, Nonusers)
Used of Marketing Research
 Forecast the sales of existing and new products
 Refine new product concepts
 Develop a new strategy for an existing product
 Understand competitors
 Identify market segmentation opportunities
 Understand how customers in different market segments make buying decision
 Evaluate how customers in the target audience react to various advertising
messages and executions
 Determine what price to charge
 Understand how customers perceive the product and the company.
Marketing Research Process
Problem
Definition
Information
Needs
Research
Objectives
Type of
Study
Test
Instrument
Analysis
Plan
Data Collection
Analysis
Conclusions
Reporting
Kinds of Research Information
Secondary Information
sources that are already exist and were not developed for
particular problem at hand.
Sources:
Internal,
External
Internal Sources
Examples: Past Marketing Plans (Marketing Department)
Call Reports (Sales Department)
Amount of Detailed Information (Accounting Dept.)
Product ideas to market, competitors’ products or services (Research and Development Dept.
Logfiles- company’s website, customer visit information (IT Department)
External Sources
 Trade associations
 General Business publications
 Academic Publications
 Corporate Reports
 Government Publications
Primary Information
sources are those that are generated for the specific problem
under study.
Sources:
Informal, Qualitative, Introspection, Depth interviews, Focus
Groups, Internet, Panels, Continuous Reporting, Special Purpose,
Scanner
Informal
It is often useful to collect information from friends, relatives,

customers and informal observation.
Qualitative Research vs. Quantitative Research
Focus Groups
are small groups of people typically chosen for their

membership in various target groups of interest. It could be
consumers, influencers of buying decisions in organization, former
customers or personal characteristics (Ex. Teenager)
Surveys
A major portion of many research budgets is devoted to survey research, performed by administering
questionnaires to people.
Ex. Questionnaire:
1. Are you familiar with Jollibee?
 yes
 No
2. What would you most likely to purchase from their menu? (please choose all that apply)
 chicken
 spaghetti
 burger
 pie
 halo-halo
 palabok
 burger steak
 spam
 corned beef
 pork sausage
Electronic Sources
 materials in digital format accessible electronically.

News Websites
Government Websites
Business & Marketing Websites
Blogs
If you do a research, you will gain
knowledge!
Forecasting Vs Potential
These quantities aid the marketing manager in setting quotas for the sales force,
setting product objectives, and performing a number of other tasks.
Forecasting Potential
Expectations Possibility
How much will we sell? How much could be sold?
Three Steps in Estimating Market Potential
1. Determine the potential buyers or users of the product.
Who are the potential customers?
2. Determine how many individual customers are in the potential groups of
buyers.
How many are there?
3. Estimate the potential purchasing or usage rate.
How much they can use/consume?
Formula: Market Potential= Potential Customers (Step2) x Potential Buying Rate

(Step3)
Market Potential of Disposable Diapers per year
Step 1: Who are the potential customers?
Babies: 0-3 years old less than who are allergic to the liner
Step 2: How many there?
0-1 years old- 3,762,000 1-2 years old-3,724,390 2-3 years old- 3,687,136
Step 3: How much they consume?
0-1 - 10 diapers per day
1-2- 7 diapers per day
2-3 – 3 diapers per day
Market Potential?
0-1 years old 3,762,000 x 10 37,620,000.00
1-2 years old 3,724,390 x 7 26,070,730.00
2-3 years old 3,687,136 x 3 11,061,408.00
74,752,138.00 1 day
27,284,530,370.00 market potential per year
Chapter 4
Analyzing Consumer
Behavior
A customer analysis addresses five questions:
1. Who are the current and potential customers for the product or
service?
2. Why do they buy?
3. How do they make purchasing decision?
4. Where do they buy the product or service, that is, what channels
of distribution are used?
5. When do they buy?
Who are the Consumers?
Market segmentation breaks mass markets into segments that

have different buying habits. In grouping customers by many
different variables or characteristics, we acknowledge that
customers are different. Therefore they should be treated differently
in terms of marketing.
Segmentation Variables is a task facing the marketing manager
is to identify variables that describe the customers in terms of their
inherent characteristics, called descriptors, and to link those
variables to customer behavior toward the product or service.
Kinds of Variables
1. Geographic segmentation enables a company to serve their customers in a
specific area. In this segment the customer base is broad, and they have
preferences based on their location.
Variables: Continent, Country, Region, Climate, City
Examples:
Victoria’s Secret is not only operating in America but expended
it to geographies like UK and Europe. The currently have more than a dozen
stores.
Victoria’s lingerie brand is operating in almost 75 countries with
more or less 1000 stores globally. It also has 990 sales points in USA. This
company also expanded its geographical segments to China. It is expanding
lingerie market.
2. Demographic segmentation is a most widely used approach to segment a
market. This strategy enables the company to divide a large market into subsets
based on distinct characteristics, need and wants. Some common variables of
demographic segments are
Age
Gender
Marital Status
Occupation
Example:
3. Psychographic Segmentation allows marketers to segment market based on consumer
personality traits, lifestyle and social class. People have different interest and attitudes
and personality traits.
segmentation are:
Social class
Life style
Culture
Personality
Attitude
Interests
Ex: Diet Coke for those who are health conscious people
Coke also provide a variety of energy drinks who need energy specially in sport
Real Gold targets busy people in offices
Segmenting in Technology-Based Markets:
The Diffusion of Innovations
Customers react to the characteristic of innovations and perceived risk differently.
Some customers are risk takers and some risk-averse. Some customers have the vision to
see the relative advantage of a technological innovation earlier than others. In other words,
some customers will adopt an innovation sooner than others. In addition, the rate of
adoption of new technologies is highly dependent on how many customers are in this early
adopter group.
Marketing Research Implications: Data Collection
The marketing manager can use either primary or secondary data. It is common
for the manager to use a survey designed in-house by a marketing research firm to
better understand the customer base.
Marketing Research Implications: Developing Target

Markets
Market segmentation is an intuitively appealing process and it makes a great
deal of sense to try to find different segments of the market that are more
interested in your product than others or to develop products specifically for those
segments.
Why Do Consumers Buy?
How Do Consumers Make Purchase
Decisions?
Internal Sources of Information
1. Past Experience with Products

2. Past Conversations with Experts
3. Magazine/Articles
External Sources
1. Advice from a travel agent

2. Recommendations from friends and relatives
3. Advertisements
4. Information from Websites
Purchase Influences
Purchase Influences
Other Reference Groups
1. Bachelor Stage- young, single people not living at home
2. Newly married couples- young, no children
3. Full nest I- young married couples with younger child under six
4. Full nest II- young married couples with youngest child six or over.
5. Full nest III- older married couples with dependent children
6. Empty nest I- older married couples, no children living with them, household
head in the labor force.
7. Empty nest II-older married couples, no children living with them, household
head retired.
8. Solitary survivor in labor force
9. Solitary Survivor retired
Buying Roles in such a group buying
decision are:
Where do consumers buy?
What is driving purchasing decisions?

 Consumers continue to focus on saving money as they are making purchasing
decisions. However, less of them are focusing solely on low price. Across the
majority of consumer types, there are other specific features taken into account
alongside price, such as well-known and premium brands, green and eco-
friendly claims, unique shopping experiences and rapidly changing fashion
trends.
When do consumers buy?
Time of day- Ex: Food, Utilities

Day of Week Ex: shopping, movies
Month or Season– Seasonal Products Ex: ice cream, wine,
beers
Cycles defined in Years- Durable goods Replacement
People Do not Buy Goods and Services.
They buy Relations, Stories and Magic
-Seth Godin
Thank you!

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PRESENTOR: ANN LOUELEN B.

Nagkamali ka na ba dahil hindi mo muna

It is often useful to collect information from friends, relatives,

are small groups of people typically chosen for their

 materials in digital format accessible electronically.

Formula: Market Potential= Potential Customers (Step2) x Potential Buying Rate

Market segmentation breaks mass markets into segments that

Marketing Research Implications: Developing Target

1. Past Experience with Products

1. Advice from a travel agent

What is driving purchasing decisions?

Time of day- Ex: Food, Utilities

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