For Marketing Management course

1. Conducting
Marketing Research and
Forecasting Demand
Marketing Management, 13th
ed
4

2. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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

3. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Gillette Used Extensive Market
Research When Designing the Venus

4. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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.

5. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Types of Marketing Research Firms
Syndicated-
service
Custom
Specialty-
line

6. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
The Marketing Research Process
Define the problem
Develop research plan
Collect information
Analyze information
Present findings
Make
decision

7. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Step 1: Define the Problem
• Define the problem
• Specify decision alternatives
• State research objectives

8. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Step 2: Develop the Research Plan
Data
Sources
Contact
Methods
Research
Instruments
Sampling
Plan
Research
Approach

9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Research Approaches
ObservationObservation
Focus GroupFocus Group
SurveySurvey
Behavioral DataBehavioral Data
ExperimentationExperimentation
EthnographicEthnographic

10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Focus Group in Session

11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Research Instruments
Questionnaires
Qualitative Measures
Technological Devices

12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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
• Avoid negatives
• Avoid hypotheticals
• Avoid words that could
be misheard
• Use response bands
• Use mutually exclusive
categories
• Allow for “other” in fixed
response questions

13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Question Types—Dichotomous
In arranging this trip, did you contact
American Airlines?
 Yes  No

14. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Question Types—Multiple Choice
With whom are you traveling on this trip?
 No one
 Spouse
 Spouse and children
 Children only
 Business associates/friends/relatives
 An organized tour group

15. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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

16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Question Types—Semantic Differential
American Airlines
Large ………………………………...…….Small
Experienced………………….….Inexperienced
Modern……………………….…..Old-fashioned

17. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Question Types—Importance Scale
Airline food service is _____ to me.
 Extremely important
 Very important
 Somewhat important
 Not very important
 Not at all important

18. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Question Types—Rating Scale
American Airlines’ food service is _____.
 Excellent
 Very good
 Good
 Fair
 Poor

19. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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

20. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Question Types—Completely
Unstructured
What is your opinion of American Airlines?

21. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Question Types—Word Association
What is the first word that comes to your mind
when you hear the following?
Airline ________________________
American _____________________
Travel ________________________

22. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Question Types—
Sentence Completion
When I choose an airline, the most important
consideration in my decision is:
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
__________________.

23. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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.
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________

24. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Question Types—Picture
(Empty Balloons)

25. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Question Types—Thematic
Apperception Test
Make up a story that reflects what you think is
happening in this picture.

26. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Qualitative Measures
Word AssociationWord Association
Projective TechniquesProjective Techniques
VisualizationVisualization
Brand PersonificationBrand Personification
LadderingLaddering

27. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Technological Devices
Galvanometers
Tachistoscope
Eye cameras
Audiometers
GPS

28. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Nielsen Outdoor Leverages GPS to
Track Billboard Reach

29. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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?

30. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Table 4.2 Types of Samples
Probability Samples
• Simple random
• Stratified random
• Cluster
Nonprobability Samples
• Convenience
• Judgment
• Quota

31. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Contact Methods
Mail Questionnaire
Telephone
Interview
Personal
Interview
Online
Interview

32. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Pros and Cons of Online Research
Advantages
• Inexpensive
• Fast
• Accuracy of data,
even for sensitive
questions
• Versatility
Disadvantages
• Small samples
• Skewed samples
• Technological
problems
• Inconsistencies

33. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
MarketTools’ Research Panels

34. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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.

35. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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

36. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Table 4.3 Characteristics of
Good Marketing Research
 Scientific method
 Research creativity
 Multiple methods
 Interdependence
 Value and cost of information
 Healthy skepticism
 Ethical marketing

37. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
What is Marketing Metrics?
Marketing metrics is the set of
measures that helps marketers
quantify, compare, and interpret
marketing performance.

38. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Table 4.4 Marketing Metrics
External
• Awareness
• Market share
• Relative price
• Number of complaints
• Customer satisfaction
• Distribution
• Total number of
customers
• Loyalty
Internal
• Awareness of goals
• Commitment to goals
• Active support
• Resource adequacy
• Staffing levels
• Desire to learn
• Willingness to change
• Freedom to fail
• Autonomy

39. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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.

40. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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.

41. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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

42. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Common Measurement Paths
Customer Metrics Pathway
Unit Metrics Pathway
Cash-flow Metrics Pathway
Brand Metrics Pathway

43. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Figure 4.2 Marketing Measurement
Pathways

44. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Figure 4.3 Example of a
Marketing Dashboard

45. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
The Measures of Market Demand
Potential
Market
Penetrated
Market
Target
Market
Available
Market

46. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Vocabulary for Demand Measurement
• Market demand
• Market forecast
• Market potential
• Company demand
• Company sales forecast
• Company sales potential

47. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Figure 4.4 Ninety Types of
Demand Measurement

48. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Figure 4.5
Market Demand Functions

49. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Figure 4.5
Market Demand Functions

50. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Product Penetration Percentage

51. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
How Can We Estimate
Current Demand?
• Total market potential
• Area market potential
• Market buildup method
• Multiple-factor index method

52. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Table 4.6 Calculating
Brand Development Index

53. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Estimating Future Demand
• Survey of Buyers’ Intentions
• Composite of Sales Force Opinions
• Expert Opinion
• Past-Sales Analysis
• Market-Test Method

54. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Marketing Debate
 What is the best type of marketing
research?
Take a position:
1. Marketing research should be quantitative.
or
2. Marketing research should be qualitative.

55. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Marketing Discussion
 When was the last time you
participated in a survey?
 How helpful do you think the
information you provided was?
 Could the research have been done
differently?