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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

Conducting Marketing Research and

Forecasting Demand

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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.

Types of Marketing Research Firms

• Syndicated service

• Custom

• Specialty-line

The Marketing Research Process

• Define the problem

• Develop research plan

• Collect information

• Analyze information

• Present findings

• Make decision

Step 1: Define the Problem

• Define the problem

• Specify decision alternatives

• State research objectives

Step 2: Develop the Research Plan

Research Instruments

• Questionnaires

• Qualitative Measures

• Technological Devices

Questionnaire Do’s and Don’ts

• Ensure questions are

free of bias

• Make questions simple

• Make questions specific

• Use response bands

• Use mutually exclusive categories

• Allow for “other” in fixed response questions

Question Types - Dichotomous

In arranging this trip, did you contact

American Airlines?

 Yes  No

Question Types – Multiple Choice

With whom are you traveling on this trip?

Question Types – Likert Scale

Indicate your level of agreement with the

following statement: Small airlines generally give better service than large ones

Question Types – Semantic Differential

American AirlinesLarge ……… …….SmallExperienced……….….InexperiencedModern……….… Old-fashioned

Question Types – Importance Scale

Airline food service is _ to me

 Extremely important

 Very important

 Somewhat important

 Not very important

 Not at all important

Question Types – Rating Scale

American Airlines’ food service is _

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

Question Types – Completely Unstructured

What is your opinion of American Airlines?

Question Types – Word Association

What is the first word that comes to your mind when you hear the following?

Airline

American _

Travel

Question Types – Sentence Completion

When I choose an airline, the most important consideration in my decision is:

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

Question Types – Picture (Empty Balloons)

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?

Table 4.2 Types of Samples

Pros and Cons of Online Research

• Inconsistencies

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.

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

Table 4.3 Characteristics of Good Marketing Research

What are Marketing Metrics?

Marketing metrics are the set of

measures that helps marketers quantify, compare, and interpret

marketing performance.

Table 4.4 Marketing Metrics

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.

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

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

Common Measurement Paths

• Customer metrics pathway

• Unit metrics pathway

• Cash-flow metrics pathway

• Brand metrics pathway

The Measures of Market Demand

• Potential market

• Available market

• Target market

• Penetrated market

Vocabulary for Demand Measurement

• Market demand

• Market forecast

• Market potential

• Company demand

• Company sales forecast

• Company sales potential

How Can We Estimate

Current Demand?

• Total market potential

• Area market potential

• Market buildup method

• Multiple-factor index method

Estimating Future Demand

• Survey of Buyers’ Intentions

• Composite of Sales Force Opinions

• Expert Opinion

• Past-Sales Analysis

• Market-Test Method