This document provides an overview of key concepts in marketing research and demand forecasting. It discusses the purpose of marketing research, different types of marketing research firms, the marketing research process, common research methods, sampling techniques, and challenges in rural marketing research. It also defines important terms like marketing decision support systems, marketing metrics, marketing-mix modeling, and issues around ethical marketing research.

1. Conducting
Marketing Research and
Forecasting Demand
Lecture 4
MS Mgt Sci

3. Marketing Research
• To obtain information about the preferences,
opinions, habits, trends, and plans of
potential customers.
• The systematic gathering, recording, and
analysis of data about issues relating to
marketing products and services.

4. NEED OF MARKETING RESEARCH
• To undertake marketing effectively
• Changes in technology
• Changes in consumer tastes
• Market demand
• Changes in the product ranges of
competitors
• Changes in economic conditions
• Distribution channels

5. Apple Used Extensive Market
Research before launching the brand-
new iPhone

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

7. Types of Marketing Research Firms
A syndicated service is a research study which
is conducted and funded by a market research
firm but not for any specific client is called a
syndicated research. The result of such research
is often provided in the form of reports,
presentations, raw data etc. and is made
available in open market for anyone to purchase.
Syndicated service
research

8. Types of Marketing Research Firms
Custom research is a kind of research that is
conducted for and funded by one company — the
client, who owns the resulting data. Market
research companies run the campaigns and
provide the data, made custom for the client
Custom research

9. Types of Marketing Research Firms
Once a market research firm has a grip on one
specialty, then the firm may be known as a
specialty market research firm. Firms providing a
specialized service to other market research
firms, e.g., a firm selling field interviewing
services
Specialty Line

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

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

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

13. Research Approaches
Observation
Focus Group
Survey
Behavioral Data
Experimentation
Ethnographic

14. Focus Group in Session

15. Research Instruments
Questionnaires
Qualitative Measures
Technological Devices

16. Questionnaire Do’s and Don’ts
• Ensure questions are
free of bias
• Make questions simple
• Make questions specific
• Avoid jargon
• Avoid ambiguous words
• Avoid negatives
• Avoid words that could
be misheard
• Use response bands
• Allow for “other” in fixed
response questions

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

18. 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

19. 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

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

21. Question Types—Importance Scale
Airline food service is _____ to me.
 Extremely important
 Very important
 Somewhat important
 Not very important
 Not at all important

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

23. 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

24. Technological Devices
Galvanometers
Microscope
Eye cameras
Audiometers
GPS

25. Nielsen Outdoor Leverages GPS to
Track Billboard Reach

26. 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?

27. Table 4.2 Types of Samples
Probability Samples
• Simple random
• Stratified random
• Cluster
Nonprobability Samples
• Convenience
• Snowball sampling

28. Table 4.2 Types of Samples

29. Contact Methods
Mail Questionnaire
Telephone
Interview
Personal
Interview
Online
Interview

30. Pros and Cons of Online Research
Advantages
• Inexpensive
• Fast
• Accuracy of data,
even for sensitive
questions
• Versatility
Disadvantages
• Small samples
• Technological
problems
• Inconsistencies

31. 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.

32. Barriers Limiting the Use of
Marketing Research
• A narrow conception of the research
• Inconsistent performance of
researchers
• Poor framing of the problem
• Late and occasionally inaccurate
findings
• Personality and presentational
differences

33. Typical Problems in Rural Research
• Low literacy levels require innovations in
questionnaire design scales
• Wide geographical dispersion requires long travels
• A large number of languages and dialects, requiring
multiple translations
• Non-availability of working population at normal
places of residence
• Poor access to women respondents
• Villages layout based on caste lines, requiring
innovative sampling (e.g., snowball)

34. Table 4.3 Characteristics of
Good Marketing Research
 Scientific method
 Research creativity
 Multiple methods
 Interconnection
 Value and cost of information
Ethical marketing

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

36. 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.
Pricing
Sales
Performance

37. 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.

39. Ethical Issues in Marketing Research
Excessive interviewing
Lack of consideration
Abuse of respondents
Delivering sales pitches
under the name of
marketing research

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