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Ch 4.Sol Capala


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Ch 4.Sol Capala

  1. 1. TOP 10 Learning ConceptsCh 4: Conducting Marketing Research And Forecasting Demand Mirasol Capala September 2011
  2. 2. Concept Outline1. Effective Marketing Research System for Large and Small companies2. Effective Marketing Research Follows the 6 Marketing Research Steps3. Choosing the Research Approaches for your Marketing Research4. Different Types of Research Instruments5. Sampling Plan6. Contact Methods7. Forecasting and Demand Measurement- Why Study Demand?8. Types of Market Demands9. Company Demand10. Estimating Current and Future Demand 9/8/2011 2
  3. 3. Effective Marketing Research System for Large Companies Custom marketing Syndicated-service Specialty-line marketing research firm research firm research firm Firms that gather consumer and trade information, which they sell for a fee. Zpryme, a leading global research firm, today announced its latest market research practice launch, China Insights, servicefocused on the China consumer and business marketplace. 9/8/2011 3
  4. 4. Example of Marketing Research for Large Companies Syndicated Research•Streaming video is an 97% of smart phonesindication of the future should come touchof consumer screens by 2016entertainment•Research used byMicrosoft (MSFT)and Sony(SNE)- reasonwhy they focus on thegame console. 9/8/2011 4
  5. 5. Effective Marketing Research System for Small Companies Crowdcasting Using the Internet Checking out rivals Research conducted in creative and affordable ways.9/8/2011 5
  6. 6. Example of Marketing Research for Small Companies Using the Internet•Small companies use Twitter tocreate niche markets•Twitter is a great place to look atwhat people are discussing,buying, suggesting and current Use the Topoverall trends. 50 of All Time, Tweetstats to see fresh, relevant and current trends for free. 9/8/2011 6
  7. 7. Effective Marketing Research Follows the 6 Marketing Research Steps •Firms should set specific research objectives. •Firms must decide whether to collect their own data or use data that already exist. •They must also decide which research approach, which research instruments to use. •They must decide on a sampling plan and contact methods.9/8/2011 7
  8. 8. Example of Company following the 6 Steps of Marketing Research Process Step 1: P&G wanted to enter the Chinese market with a sound strategy after Chinese experts warned the company that nobody in China could afford Head & Shoulders. Step 2: P&G developed a Step 5: The companys market research research plan to know the revealed that though there were several common problem among shampoo marketers in China, there was no Chinese consumers. shampoo that could remove dandruff from the scalp. Dandruff was a common hair problem among the Chinese consumers. Step 3: P&G collected information through online research, surveys and telephone Step 6: P&G hence launched Head & interviews. Shoulders, a brand that was known for its anti-dandruff properties. Step 4: They have analyze the Within three years of its launch, information and did several Head & Shoulders became Chinas analysis to test the strength of bestselling shampoo, even though it the conclusions. was priced three times higher than the local brands.9/8/2011 8
  9. 9. Choosing the Research Approaches for your Marketing Research Observation Behavioural Data Experiments Focus Group Discussion Surveys9/8/2011 9
  10. 10. Example of Use of Different Marketing Research Approaches Focus Group Discussion Surveys Findings: Dinner party guests Survey Reveals: Online were bringing their host Coupon Sites Remain Top flowers instead of chocolate, in Consumer Choice for Deals a nod to current concerns over 68 % of daily deal users obesity & health. reported using daily deal sites for impulse rather than planned purchases.9/8/2011 10
  11. 11. Different Types of Research Instruments Qualitative Research QuestionnaireTechnological Devices 9/8/2011 11
  12. 12. Example of Use of Different Research Instruments •Mapping Bush and Kerry to well-known product and Qualitative Research corporate brands reveals how each candidate is viewed and suggests brand strategies each can employ to potentially sway the critical undecided voter group. •Bush is associated with the positive attributes of established mainstay brands like Bud Light, IBM and Ford ("reliable", "humble", "heritage", "solid"); Kerry is associated with the positive attributes of premium brands like Heineken, Apple, and BMW ("high-quality", "high-performance", "hip", "young") •To win undecided voters, Kerry must prove that he has substance, that hes not all flash and marketing. Bush, on the other hand, must focus on emphasizing that his strengths – stability and reliability – are more important than being ultra-modern or progressive9/8/2011 12
  13. 13. Sampling Plan Sampling Size How many people should we survey? Sampling UnitWho should we survey? Sampling Procedure How should we choose the respondents? 9/8/2011 13
  14. 14. Example of Sampling Plan When times are tough, Pinoys commuteSampling Unit: The survey focused on the travelhabits of commuters on the Metro Rail Transit (MRT)and Light Rail Transit (LRT) systems. What this meansSample Size: Nielsen conducted interviews with 500 for advertisers?MRT3 passengers, 250 LRT1 passengers and 250 LRT2passengers in February 2009.Sample Procedure: The survey used random With Nielsens surveysampling methods and has a 5 percent margin of error. findings proving that consumers spend more time outside the home, it is a go signal for more advertisers to invest in "out-of-home" advertisements. 9/8/2011 14
  15. 15. Contact Methods Mail Questionnaire Personal Interview Telephone Interview Online Interview9/8/2011 15
  16. 16. Example of Contact Methods in Conducting Marketing Research Personal InterviewGround coffee reviewCHOICE’s expert tasters find some of thebest brews at very affordable prices.Tester brews each coffee in the same way usinga Breville ESP8B Café Roma espresso machine.Three experts rate the coffees, giving themscores for the colour and thickness of the crema,aroma, flavour, mouthfeel and aftertaste. 9/8/2011 16
  17. 17. Forecasting and Demand Measurement Why Study Demand? FINANCE OPERATIONS PURCHASING HR MARKETINGThe cash that To establish To get the To get the To prepareis required for capacity and right amount right number sales forecastsoperations output levels of supplies of workersandinvestments 9/8/2011 17
  18. 18. Example of Wrong Sales Forecast Xerox commissioned three independent consultants to explore the opportunity for a copier. Two consultants advised against the launch and the third consultant forecast sales of 8,000 units over 6 years. Xerox chose to ignore the recommendations of the consultants, launched the copier and installed 80,000 machines within just 3 years. The market research had underestimated demand as respondents were unable to provide their views on a new product that they had never experienced.9/8/2011 18
  19. 19. Types of Market DemandsPotential Available Penetrated Market Market Target Market Market Consumers have Consumers have interest, income Qualified income, access to and access to Sets of customers available product product who are buying market the company company’s decides to products pursue9/8/2011 19
  20. 20. Example of Market Research for Different Market Demands Potential MarketA researcher at 3M was eager to create the worlds best glue, but actuallyended up creating one of the worst glues ever – one that didnt stick – whichnevertheless ended up as one of 3Ms most successful products: that of theubiquitous Post-it notes. 9/8/2011 20
  21. 21. Company DemandIt is the company’s estimated share of market demand at alternative levels of company marketing effort at a given time period. Sales Forecast Is the expected level of company sales based on a chosen marketing plan and an assumed marketing environment. Sales Potential Is the sales limit approached by company demand as company marketing effort increases relative to that of competitors.9/8/2011 21
  22. 22. Example of Sales Forecast Christmas Sales Forecast Gets More Grim Buyers expected to stay frugal through holiday season Of those consumers Only 35.6 who normally give gift percent said they cards but wont this would give gifts year, 64.4 % will give instead, money instead Of those consumers Seventy percent of consumers who will give fewer said that they stayed within gift cards, over a their budgets, an indicator of third say that there this years disciplined shopper. is a chance they could give nothing at all.9/8/2011 22
  23. 23. Example of Sales PotentialRetail sales rise 3.6% during holidays Romance novels embrace Christmas spirit and sales potential 9/8/2011 23
  24. 24. Estimating Current Demand Practical methods for estimating current market demand Total Market Potential Area Market Potential Maximum amount of sales that might be Maximum amount of sales that might beavailable to all firms in an industry during a available in different cities, states, and nations. period of time. 9/8/2011 24
  25. 25. Example of Estimating Current Demand Baby Car Seat Manufacturer Understand the total market potential of infant car seats in both units and Pesos. If two million babies are expected in a year, the market for infant seats is 2m units. However some of the households may be two carhouseholds and decide to buy two seats. If 50% of the households buy two seats, then the market is really 3m units. 9/8/2011 25
  26. 26. Estimating Future Demand All forecasts are built on one of 3 information bases: what people say, what people do, or what people have done. Good forecasting is a key factor in success of the companies. Survey of Buyer’s Past- Sales Analysis Expert Opinion Intention Firms can develop sales Obtain forecasts fromUseful in estimating demand forecasts on the basis of past experts, including dealers, for industrial products, sales. distributors, suppliers,consumer durables and new marketing consultants, and products. trade associations. 9/8/2011 26
  27. 27. Example of Estimating Future Demand Survey of Buyer’s Intention Farmers intentions regarding fertilizer usageIn the fertilizer business it is possible to assess farmersintentions through retailers. Many retailers are located in villages and are in daily touch with farmers. Being close to the scene of action, they have a good assessment of produce price trends, available purchasing power, likely crop shifts, etc. It should be possible to ascertain from each retailerdirectly or through a large sample, the likely fertilizer demand. Through enquiry from their own outlets,marketing organisations can produce a fairly accurate sales forecast. 9/8/2011 27
  28. 28. TOP 10 Learning ConceptsCh 4: Conducting Marketing Research And Forecasting Demand Mirasol Capala September 2011