Marketing

1. Session 8 and 9

2. Forecasting and Demand Measurement

3.  Potential market(Interest in the market offering)
 Available market( interest, income and access to an offer)
 Target market ( Part of the available market )
 Penetrated market ( Set of consumers for a company’s product )
Market Break Down

4. A Vocabulary for Demand Measurement
Market Demand
Market Forecast
Market Potential
Company Demand
Company Sales Forecast
Company Sales Potential

5. Estimating Current Demand: Total Market Potential
Calculations
 Multiply potential number of buyers by average quantity each
purchases times price
 Chain-ratio method

6. Estimating Future Demand
Forecasts : What people say, what people do, what people have done.
 Survey of Buyers’ Intentions – market research
 Composite of Sales Force Opinions
 Expert Opinion – delphi method
 Trend projection (past sales analysis)
 Statistical demand analysis/Econometric – impact of causal factors-
price, marketing expenditure, income levels (past sales analysis)

7. Marketing Research

8. Marketing Research
for Decision Making
Marketing research is the systematic design, collection, analysis, and
reporting of data and findings relevant to a specific marketing
situation facing the company.
The systematic collection and objective recording, classification, analysis
and presentation of data concerning the behavior, needs, attitudes,
opinions, motivation etc. for individuals and organizations within the
context of their economic, social, political and everyday activities.

9. Commissioning MarketingResearch
 In house activity
 Research Agencies – Cost effective
 Mix ( Only Field and Tab)
The Research Brief :
Background summary
Problem definition ( Business decision )
Research questions ( Information needed to take business decision)
Scope of research ( What to cover, deadlines)
Tendering Procedure ( How to pitch )

10. Market Research process

11. Define the Problem
 Define the problem
 State research objectives
Sales at the New store has not met co expectations, possibly
due to emergence of a new competitor
RQ : What are the reasons for sales not meeting co
expectations?
Has customer’s disposable income gone down?
Is the new competitor taking awaycustomers?
Are customers bored of the product range availability in the store?
Are customers moving to online buying?
Was the management expectation based on overestimated market potential?

12. Step 2: Develop the Research Plan
 Data sources – Primary data and secondary data ( Field vs Desk
research)
 Research approach ( Exploratory, Descriptive and Causal Research )
 Research instruments
 Sampling plan
 Contact methods

13. Research Approaches
 Observational and ethnographic ( Bank of America – Women at home
study – Keep the change program )
 Focus group
 Survey
 Experimental research ( Shopping behavior at different levels of
available cash)

14. Research Instruments
 Questionnaires (Dichotomous, Multiple choice, Likert scale, Rating scale,
Intention-to buy scale etc.)
 Qualitative Measures( Word associations, Projective techniques, open
ended questions, Brand personification etc)
 Technological Devices ( Galvanometers, Tachistoscope, Eye Cameras)

15. 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?

16. Contact Methods
 Mail contacts
 Telephone contacts
 Personal contacts
 Online contacts

17. Ethical Issues in Marketing Research
 Participation – voluntary
 Confidentiality
 Objective and fair – Competition
 Data Collection Methods
 Adequacy of research scope