Conducting marketing research & forecasting demand 04
Marketing Management By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha logo copy.tif SUMMARY by Chapter 4 Conducting Marketing Research and Forecasting Demand Why Marketing Research? Successful Marketing Managers need timely, accurate and actionable information about consumers, competition and their brands to assess past performance, plan future activities and take strategic decisions leading to successful product launch or increase growth of a brand.What is What are the major steps of Marketing Research Process?Marketing Step 1 : Define the problem, the decision alternative and the research objectiveResearch?Systematic Design, Step 2 : Develop the research plancollection, analysisand reporting ofdata and findings Step 3 : Collect the informationrelevant to aspecific marketing Step 4 : Analyze the informationsituation facing thecompany. Step 5 : Present the findings Step 6 : Make the decision
Chapter 4 - Conducting Marketing Research and Forecasting Step 1: Achieve clarity on the content, the scope of market research and what all decisions are to be made on the basis of research. Step 2: Primary Data c be collected through following: canSecondaryData: Research Methods Research ToolsAlready existing •Observational Research: Observing Observational •Questionnaires: A set of questions Questionnaires: consumers, informal interviews, usingsomewhere which soliciting responses that is of relevance tools from anthropology to provide to market situation. They can be eitherwas collected for deeper understanding of consumers. open-ended or closed-ended. ended closedsome other •Focus Group Research: A meeting of a Focus •Qualitative Measures: Relatively Qualitativepurpose group of people who represent potential unstructured measurement approach customers or important actors for research discussing issues relevant to for exploring consumer’s responses research •Technological Devices: devices like skin Technological •Survey Research: Companies undertake Survey sensors brain wave scanners to descriptive research to learn about capture consumer’s response. people’s beliefs, preferences andPrimary satisfaction. •Sampling Plan: A plan addressing Sampling questions like whom all to survey, how •Behavioral Data: Customer’s actual BehavioralData: purchases do not match their many people to survey, how should we select people for survey.Freshly gathered statements made in surveys always •Contact Methods: Mail Questionnaire, Contact hence certain techniques help indata for research exposing these discrepancies Telephone Interview, Personalonly. Expensive to Interview, Online Interview. •Experimental Research: This captures Experimentalcollect. cause and effect relationship in observed findings. Step 3: Data collection is one of the most expensive, time taking and most error prone phase of time-taking market research as it entirely depends on availability, honesty and consistency of respondents. However technology has eased the problem to a great extent. Step 4: This is the process to extract findings by tabulating the data and developing frequency distributions in hope of discovering additional findings. stributions Step 5: The researcher presents finding relevant to the major marketing decisions facing management management.
Chapter 4 - Conducting Marketing Research and Forecasting Step 6:Types of Market research is just a tool to provide insight to the managers. Depending on their confidence in the findings, managers decide to use itMarket Barriers to Marketing ResearchPotential • Narrow approach to Marketing Research • Uneven Caliber of researchersmarket • Poor framing of problemSet of consumers who • Late and occasionally erroneous findingsprofess a sufficient • Personality & presentational differenceslevel of interest in a Measuring Marketing Productivitymarket offer. To assess the efficiency and effectiveness of marketing of marketing activities there are • Marketing metrics to assess marketing effectsAvailable • Marketing mix modeling to estimate casual relationships and measure how marketing activity affect outcomesmarket • Marketing Dashboard are a structured way to disseminate the insights gleanedSet of consumers who from these two approaches within the organizationshave interest income Types of Demandand access to a Market Demandparticular offer. • It is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing programTarget market Company DemandThe part of the • It is the company’s estimated share of the market demand at alternative levels of company marketing effort in a given time periodqualified available Current Demandmarket the company • It is the demand that companies attempt to determine by measuring totaldecides to pursue. market potential, area market potential industry sales and market share Future Demand • It is the demand that companies determine by surveying buyer’s intentions,Penetrated solicit their sales force’s input, gather expert opinions, analze past sales ormarket engage in market testing mathematical models, advanced statistical techniques and computerized data collection proceduresSet of consumers whoare buying the To estimate current demand companies attempt to determine total market potential,companys product. area market potential industry sales and market share To estimate future demand companies’ survey buyer’s intentions solicit their sales force’s input, gather expert opinions, analyze past sales or engage in market testing mathematical models, advanced statistical techniques and computerized data collection procedures are essential to all types of demand and sales forecasting.