4. MARKETING RESEARCH
The systematic design,
collection, analysis and
reporting of data
findings relevant to a
specific marketing
situation facing a
company.
5. SCENARIO: In-flight Amenities
• First Airline to have an in
flight telephone for First
and Business Class’
passenger use.
• Wants to install an in
flight internet service for
the First and Business
Class patrons for a fee.
6. TYPES OF MARKETING FIRMS
SYNDICATED SERVICE- gather
consumer and trade
information which they sell for
a fee.
CUSTOM- hired to carry out
specific projects. Customized
study and report of the
findings.
SPECIALTY LINE- provide
specialized research services.
Provides interviewing services
to other firms.
8. Step 1: Define the Problem, Alternatives and the
Objectives
Marketing Managers must
be careful in defining the
problem.
9. Step 2: Develop the Research Plan
Develop the most efficient
plan for gathering the
needed data and how much
it will cost .
DATA SOURCES
PRIMARY DATA
Are freshly gathered for a specific
purpose for a specific project.
SECONDARY DATA
Are collected from another
purpose and is already existing.
10. RESEARCH APPROACH
OBSERVATIONAL gathering of relevant data is
through observation of the settings
ETHNOGRAPHIC An observational research
approach that uses concepts and tools from
anthropology and other social science discipline
to provide a deep understanding of how people
live and work.
FOCUS GROUP gathering of 6-10 people carefully
selected by the researchers based on the situation
brought together to discuss certain topics at
length
SURVEY done to learn about people’s knowledge,
beliefs, preferences and satisfaction to measure
their magnitudes in general
BEHAVIORAL DATA researchers learn from
customer traces and behaviour and analyze it.
EXPERIMENTAL designed to capture cause & effect
relationships by eliminating biased explanations of
the observed findings.
11. RESEARCH INSTRUMENTS
QUESTIONNAIRES A set of questions
presented to respondents.
QUALITATIVE MEASURES are
relatively unstructured
measurement approaches that
permit a range of possible
responses.
TECHNOLOGICAL DEVICES done to
learn about people’s knowledge,
beliefs, preferences and
satisfaction to measure their
magnitudes in general.
12. Step 3: Collect the Information
The most expensive
and most prone to
errors in the
research.
13. Step 4: Analyze the Information
Extract findings by
tabulating the data
and developing
frequency
distributions.
14. Step 5: Present the Findings
The dirty work is through and this
where the final say will be based.
The researcher must have a
proactive consulting role in
presenting his findings and
translating them into insights and
recommendations.
The pros and cons of the idea will
be presented here in preparation
for the decision.
15. Step 6: Make the Decision!
Evidence from the commissioned
researchers has to be weighed.
Stats are readily available, the
decision is up to the top
management to decide.
LOW Findings- project might be
cancelled
HIGH Findings- the findings
support the inclination.
17. MARKETING METRICS
Set of measures that helps
quantify, compare and interpret
the marketing performance.
Used by managers to justify the
program and is used by the senior
management to decide on
financial allocations.
18. MARKETING MIX MODEL
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.
Help allocate expenditures.
Analysis explore which budget
are wasted, what optimal
spending levels are and the
minimum investment level.
19. MARKETING DASHBOARD
Summary of external and internal
measures for interpretation.
They are only as good as the
information on which they are
based.
Visually displaying real time
indicators to ensure proper
functioning similar to an
automobile’s dashboard.
21. FORECASTING
Is the art of
anticipating what
buyers are likely to
do under a given
set of conditions.
22. MARKET DEMAND
Is the total volume that
would be bought by a
defined customer group in
a defined geographical
area in a defined period of
time in defined marketing
environment under a
defined marketing
program.
23. MEASURES OF MARKET DEMAND
POTENTIAL MARKET Consumers
who profess a sufficient level of
interest in a market offer.
AVAILABLE MARKET Consumers
who have interest, income and
access to a particular offer
TARGET MARKET The qualified
available market that the
company wishes to pursue
PENETRATED MARKET Consumers
who are buying the product
24. VOCABULARY FOR DEMAND MESUREMENT
MARKET DEMAND is the total volume
that would be bought in a defined
customer group in a defined area in a
defined time period in a defined
marketing environment under a
defined program.
MARKET FORECAST is the market
demand corresponding to the industry
marketing expenditure.
MARKET POTENTIAL is the limit
approached by the market demand
as industry expenditures approach
infinity for a given marketing
environment.
25. MEASURES OF COMPANY DEMAND
COMPANY DEMAND is the company’s
estimated share of market demand at
alternative levels of marketing
company effort in a given time period.
COMPANY SALES FORECAST is the
expected level of company sales
based on a chosen marketing plan
and an assumed marketing
environment.
COMPANY SALES POTENTIAL is the
sales limit approached by the
company demand as company
marketing effort increases relative to
that of competitors.
26. DEMAND MEASURESMENT
TOTAL MARKET POTENTIAL is
the maximum amount of sales
that might be available to all
the firms in an industry during
a given period, under a given
level of industry marketing
effort and conditions.
AREA MARKET POTENTIAL is
the need to estimate the
market potential of different
cities, states and countries.
27. METHODS OF ASSESSING AREA MARKET POTENTIAL
MARKET BUILD-UP METHOD is to
identify all the potential buyers in
each market and estimating their
purchases.
Produces accurate results if a list
all potential buyers and good
estimate in on hand.
MULTIPLE FACTOR INDEX METHOD
the estimate allocation of how
many products will be produced
based on population size of the
market.
28. FUTURE DEMAND ESTIMATE
SURVEY OF BUYER’S INTENTION
Periodic question-answer on
how consumers feel about a
product.
COMPOSITE SALES FORCE
OPINION
The sales representative
estimate their future sales.
Inaccurate basis in
forecasting.
29. FUTURE DEMAND ESTIMATE
EXPERT OPINION is the third
party inputs on the situation,
including dealers, suppliers,
distributors and consultants.
PAST SALES ANALYSIS estimates
are based on sales from the
previous period.
MARKET TEST METHOD
Introducing a new product to
the market. Trial and error
method.
