Here are my thoughts on your questions: 1. While quantitative research provides measurable data, qualitative research provides important contextual insights. The best approach uses both to gain a well-rounded understanding. 2. It's been over a year since I participated in a survey. 3. I tried to provide honest and thoughtful answers. However, as an individual data point, my responses alone may not have been that helpful without broader trends. 4. The research could have been improved by using open-ended questions to allow for nuanced responses, in addition to scaled questions. Focus groups or interviews may have elicited richer perspectives than just a survey. Both qualitative and quantitative methods combined can yield the most informative marketing research.

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

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Gillette Used Extensive Market
Research When Designing the Venus

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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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Types of Marketing Research Firms
Syndicated-
service
Custom
Specialty-
line

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The Marketing Research Process
Define the problem
Develop research plan
Collect information
Analyze information
Present findings
Make
decision

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Step 1: Define the Problem
• Define the problem
• Specify decision alternatives
• State research objectives

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Step 2: Develop the Research Plan
Data
Sources
Contact
Methods
Research
Instruments
Sampling
Plan
Research
Approach

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Research Approaches
ObservationObservation
Focus GroupFocus Group
SurveySurvey
Behavioral DataBehavioral Data
ExperimentationExperimentation
EthnographicEthnographic

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Focus Group in Session

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Research Instruments
Questionnaires
Qualitative Measures
Technological Devices

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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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Question Types—Dichotomous
In arranging this trip, did you contact
American Airlines?
 Yes  No

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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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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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Question Types—Semantic Differential
American Airlines
Large ………………………………...…….Small
Experienced………………….….Inexperienced
Modern……………………….…..Old-fashioned

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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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Question Types—Rating Scale
American Airlines’ food service is _____.
 Excellent
 Very good
 Good
 Fair
 Poor

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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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Question Types—Completely
Unstructured
What is your opinion of American Airlines?

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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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Question Types—
Sentence Completion
When I choose an airline, the most important
consideration in my decision is:
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
__________________.

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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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Question Types—Picture
(Empty Balloons)

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Question Types—Thematic
Apperception Test
Make up a story that reflects what you think is
happening in this picture.

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Qualitative Measures
Word AssociationWord Association
Projective TechniquesProjective Techniques
VisualizationVisualization
Brand PersonificationBrand Personification
LadderingLaddering

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Technological Devices
Galvanometers
Tachistoscope
Eye cameras
Audiometers
GPS

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Nielsen Outdoor Leverages GPS to
Track Billboard Reach

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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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Table 4.2 Types of Samples
Probability Samples
• Simple random
• Stratified random
• Cluster
Nonprobability Samples
• Convenience
• Judgment
• Quota

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Contact Methods
Mail Questionnaire
Telephone
Interview
Personal
Interview
Online
Interview

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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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MarketTools’ Research Panels

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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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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

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Table 4.3 Characteristics of
Good Marketing Research
 Scientific method
 Research creativity
 Multiple methods
 Interdependence
 Value and cost of information
 Healthy skepticism
 Ethical marketing

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What is Marketing Metrics?
Marketing metrics is the set of
measures that helps marketers
quantify, compare, and interpret
marketing performance.

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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

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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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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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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

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Common Measurement Paths
Customer Metrics Pathway
Unit Metrics Pathway
Cash-flow Metrics Pathway
Brand Metrics Pathway

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Figure 4.2 Marketing Measurement
Pathways

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Figure 4.3 Example of a
Marketing Dashboard

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The Measures of Market Demand
Potential
Market
Penetrated
Market
Target
Market
Available
Market

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Vocabulary for Demand Measurement
• Market demand
• Market forecast
• Market potential
• Company demand
• Company sales forecast
• Company sales potential

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Figure 4.4 Ninety Types of
Demand Measurement

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Figure 4.5
Market Demand Functions

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Figure 4.5
Market Demand Functions

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Product Penetration Percentage

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How Can We Estimate
Current Demand?
• Total market potential
• Area market potential
• Market buildup method
• Multiple-factor index method

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Table 4.6 Calculating
Brand Development Index

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Estimating Future Demand
• Survey of Buyers’ Intentions
• Composite of Sales Force Opinions
• Expert Opinion
• Past-Sales Analysis
• Market-Test Method

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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.

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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?