This document discusses marketing research and forecasting demand. It covers the marketing research process, which includes defining the problem, developing a research plan, collecting information, analyzing the information, presenting findings, and making a decision. It describes different types of research approaches, instruments, question types, sampling plans, and contact methods used in marketing research. It also discusses metrics for measuring marketing performance and productivity, as well as techniques for marketing-mix modeling and using marketing dashboards.

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

2. 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?
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3. 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.
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4. Types of Marketing Research Firms
• Syndicated service
• Custom
• Specialty-line
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5. The Marketing Research Process
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Define the problem
Develop research plan
Collect information
Analyze information
Present findings
Make decision
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6. Step 1: Define the Problem
• Define the problem
• Specify decision alternatives
• State research objectives
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7. Step 2: Develop the Research Plan
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Data sources
Research approach
Research instruments
Sampling plan
Contact methods
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8. Research Approaches
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Observation
Ethnographic
Focus group
Survey
Behavioral data
Experimentation
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9. Research Instruments
• Questionnaires
• Qualitative Measures
• Technological Devices
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10. 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
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11. Question Types - Dichotomous
In arranging this trip, did you contact
American Airlines?
 Yes  No
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12. 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
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13. 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
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14. Question Types – Semantic Differential
American Airlines
Large ………………………………...…….Small
Experienced………………….….Inexperienced
Modern……………………….…..Old-fashioned
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15. Question Types – Importance Scale
Airline food service is _____ to me.
 Extremely important
 Very important
 Somewhat important
 Not very important
 Not at all important
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16. Question Types – Rating Scale
American Airlines’ food service is _____.
 Excellent
 Very good
 Good
 Fair
 Poor
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17. 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
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18. Question Types –
Completely Unstructured
What is your opinion of American Airlines?
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19. Question Types –
Word Association
What is the first word that comes to your mind
when you hear the following?
Airline ________________________
American _____________________
Travel ________________________
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20. Question Types –
Sentence Completion
When I choose an airline, the most important
consideration in my decision is:
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
__________________.
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21. 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.
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
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22. Question Types –
Picture (Empty Balloons)
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23. Qualitative Measures
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Word association
Projective techniques
Visualization
Brand personification
Laddering
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24. Technological Devices
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Galvanometers
Tachistoscope
Eye cameras
Audiometers
GPS
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25. 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?
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26. Table 4.2 Types of Samples
Probability Samples
• Simple random
• Stratified random
• Cluster
Nonprobability Samples
• Convenience
• Judgment
• Quota
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27. Contact Methods
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Mail questionnaire
Telephone interview
Personal interview
Online interview
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28. 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
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29. 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.
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30. Barriers Limiting the Use of
Marketing Research
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A narrow conception of the research
Uneven caliber of researchers
Poor framing of the problem
Late and occasionally erroneous
findings
• Personality and presentational
differences
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31. Table 4.3 Characteristics of
Good Marketing Research
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Scientific method
Research creativity
Multiple methods
Interdependence
Value and cost of information
Healthy skepticism
Ethical marketing
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32. What are Marketing Metrics?
Marketing metrics are the set of
measures that helps marketers
quantify, compare, and interpret
marketing performance.
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33. Table 4.4 Marketing Metrics
External
Internal
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Awareness
Market share
Relative price
Number of complaints
Customer satisfaction
Distribution
Total number of
customers
• Loyalty
Awareness of goals
Commitment to goals
Active support
Resource adequacy
Staffing levels
Desire to learn
Willingness to change
Freedom to fail
Autonomy
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34. 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.
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35. 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.
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36. Table 4.5 Sample Customer-Performance
Scorecard Measures
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% 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
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37. Common Measurement Paths
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Customer metrics pathway
Unit metrics pathway
Cash-flow metrics pathway
Brand metrics pathway
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38. The Measures of Market Demand
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Potential market
Available market
Target market
Penetrated market
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39. Vocabulary for Demand Measurement
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Market demand
Market forecast
Market potential
Company demand
Company sales forecast
Company sales potential
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40. How Can We Estimate
Current Demand?
• Total market potential
• Area market potential
• Market buildup method
• Multiple-factor index method
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41. Estimating Future Demand
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Survey of Buyers’ Intentions
Composite of Sales Force Opinions
Expert Opinion
Past-Sales Analysis
Market-Test Method
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