This document discusses marketing research and demand forecasting. It defines marketing research as the systematic process of designing, collecting, analyzing and reporting data to help solve specific marketing problems. The key steps in the marketing research process are defining the problem, developing a research plan, collecting information, analyzing the findings and making decisions. Different research methods are discussed, including surveys, experiments and focus groups. Good marketing metrics and marketing-mix modeling can help companies quantify and understand the impact of their marketing activities.

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?