1. Chapter 3 Gathering Information and Measuring Market Demand by Ung Veasna, DBA candidate

2. Kotler on Marketing
Marketing is becoming a battle based more on information than on sales power.

3. Why Research?
The primary job of marketing managers is the design and execution of marketing programme
Before programmes can be designed, the market situation must be understood
In order to understand the market, the manager must have information
Before the marketing manager can have information, there must be data

4. Interpreting the information Determining what action should be taken
Managers face three important problems in making more effective marketing decisions:
Obtaining the information they need for the flood of data that is available.
Interpreting the information
Determining what action should be taken

5. The Importance of Information
Companies need information about their:
Marketing environment
Competition
Customer needs
Managers don’t need more information, they need better information.

6. The Importance of Information
Why
Information Is
Needed
Marketing
Environment
Strategic
Planning
Customer Needs
Competition

7. Research and Intelligence provide information necessary to clarify the “unknown.”

8. The Benefit of Research
Discovering useful information about your customers, competition and environment
Reduces risk and uncertainty when making decisions
The “eyes” and “ears” of the corporation
Helps you get close to your customers

9. What is a Marketing Information System (MIS)?
A MIS consists of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers.
The MIS helps managers to:
Assess Information Needs,
Develop Needed Information,
Distribute Information.

10. The MIS and DATA DATA INTERNAL EXTERNAL PRIMARY SECONDARY
Data obtained from sources within
the firm
EXTERNAL
Data obtained from sources outside
of the firm
DATA
PRIMARY
Data collected for
the first time
SECONDARY
Pre-existing data

11. Marketing Information System Components
Internal Records
Marketing Intelligence
Marketing Decision Support Systems
Marketing Research

12. Internal Record Systems
The Order-to-Payment Cycle
Sales Information Systems
Databases, Data Warehouses And Data-Mining
Customer records
Financial statements
Inventory records
Research reports
Credit data

13. The Marketing Intelligence System
A Marketing Intelligence System is a set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment.
Intelligence: ongoing information

14. Marketing Decision Support System
Marketing Decision Support System (MDSS)
A computer program - an interface - between the manager and the MIS
Makes it easy to obtain needed information
Makes it easy to analyse the information
May involve marketing models - to show the relationships among different marketing variables

15. See text for complete table
Table 3-1: Quantitative Tools Used in Marketing Decision Support Systems
Statistical Tools
1. Multiple regression:
A statistical technique for estimating a “best fitting” equation showing how the value of a dependent variable varies with changing values in a number of independent variables. Example: A company can estimate how unit sales are influenced by changes in the level of company advertising expenditures, sales force size, and price.
2. Discriminant analysis:
A statistical technique for classifying an object or persons into two or more categories. Example: A large retail chain store can determine the variables that discriminate between successful and unsuccessful store locations.
3. Factor analysis:
A statistical technique used to determine the few underlying dimensions of a larger set of intercorrelated variables. Example: A broadcast network can reduce a large set of TV programs down to a small set of basic program types.
See text for complete table

16. Marketing Research is :
a collection, processing and analysis of information on topics relevant to marketing. It begins with problem definition and ends with a reports and action recommendations (Lehmann, Gupta and Steckel 1998)

17. A Model of Marketing Research
Problem Definition
Research Design
Secondary
Data
Primary Data
Qualitative
Quantitative
Data Analysis
Create Conclusions & Present

18. Figure 3-2: The Marketing Research Process

19. The Marketing Research Process
Step 1: Define the Problem, the Decision Alternatives, and the Research Objectives
Step 2: Develop the
Research Plan
Data Sources
Research Approaches
Observational research
Focus group research
Survey research
Behavioral data
Experimental research

20. Gathering Information
Secondary
Both Must Be:
Relevant
Accurate
Current
Impartial
Primary
Information That Already Exists Somewhere.
+ Obtained More Quickly, Lower Cost.
- Might Not be Usable Data.
Information Collected for the Specific Purpose at Hand.

21. Observational Research Experimental Research
Planning Primary Data Collection
Research Approaches
Observational Research
Gathering data by observing people,
actions and situations
(Exploratory)
Survey Research
Asking individuals about attitudes, preferences or
buying behaviors
(Descriptive)
Experimental Research
Using groups of people to
determine cause-and-effect
relationships
(Causal)

22. Sampling Plan
Sampling unit
Sample size
Sampling procedure

23. Sample representative
Sampling Plans
Who is to be
surveyed?
(What Sampling
Unit?)
How many
should be
How should the
sample be
chosen?
Probability or
Non-probability
sampling?
Sample representative
segment of the
population

24. Research Instruments Mechanical Devices People Meters
Supermarket Scanners
Eye Cameras
Questionnaire
What questions to ask?
Form of each question?
Closed-end
Open-end
Wording?
Ordering?

25. Table 5-2: Types of Questions
1_____ _____ _____ _____ _____
Small airlines generally give better service than large ones.
Strongly Disagree Neither agree Agree Strongly
disagree nor disagree agree
A statement with which the respondent shows the amount of agreement/ disagreement.
Likert scale
An organized tour group
Spouse and children
Business associates/friends/relatives
Spouse
Children only
No one
With whom are you traveling on this flight?
A question with three or more answers.
Multiple Choice
In arranging this trip, did you personally phone American?
Yes No
A question with two possible answers.
Dichotomous
Example
Description
Name
A. Closed-end Questions

26. Step 3. Implementing the Research Plan
Collecting the
Data
Processing the
Analyzing the
Research Plan

27. Step 1. Interpret the Findings Step 3. Report to Management
Step 4. Interpreting & Reporting Findings
Researcher Should Present Important Findings that are Useful in the Major Decisions Faced by Management.
Step 1. Interpret the Findings
Step 2. Draw Conclusions
Step 3. Report to Management

28. Market Demand Definition
Market demand for a product is the total volume that would be
Bought by a defined customer group
In a defined geographical area
In a defined time period
In a defined marketing environment
Under a defined marketing program

29. Forecasting and Demand Measurement
The Measures of Market Demand
Figure 3-3: Ninety Types of Demand Measurement (6X5X3)

30. Sales Forecasting Methods
Executive Opinion
Customer Survey
Analysis of
market factors
Sales Force
Composite
Trend Projection

31. Estimating Current Demand
Total Market Potential
100 mil buyers X 3 books X $10/book
Area Market Potential
Above estimate by city,state,nation
Industry Sales
Market Build-up Method
Market Share
% of industry sales you expect to do.