1. Conducting Marketing Research and Forecasting Demand4
Conducting Marketing Research and Forecasting Demand
Marketing Management, 13th ed

2. 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?
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

3. 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.
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

4. Types of Marketing Research Firms
Syndicated service
Custom
Specialty-line
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

5. The Marketing Research Process
Define the problem
Develop research plan
Collect information
Analyze information
Present findings
Make decision
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

6. Step 1: Define the Problem
Specify decision alternatives
State research objectives
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

7. Step 2: Develop the Research Plan
Data sources
Research approach
Research instruments
Sampling plan
Contact methods
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

8. Research Approaches Observation Ethnographic Focus group Survey
Behavioral data
Experimentation
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

9. Research Instruments Questionnaires Qualitative Measures
Technological Devices
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

10. 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
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

11. Question Types - Dichotomous
In arranging this trip, did you contact American Airlines?
 Yes  No
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

12. 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
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

13. 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
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

14. Question Types – Semantic Differential
American Airlines
Large ………………………………...…….Small
Experienced………………….….Inexperienced
Modern……………………….…..Old-fashioned
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

15. Question Types – Importance Scale
Airline food service is _____ to me.
 Extremely important
Very important
Somewhat important
Not very important
Not at all important
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

16. Question Types – Rating Scale
American Airlines’ food service is _____.
 Excellent
Very good
Good
Fair
Poor
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

17. 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
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

18. Question Types – Completely Unstructured
What is your opinion of American Airlines?
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

19. Question Types – Word Association
What is the first word that comes to your mind when you hear the following?
Airline ________________________
American _____________________
Travel ________________________
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

20. Question Types – Sentence Completion
When I choose an airline, the most important consideration in my decision is: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________.
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

21. 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. __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

22. Question Types – Picture (Empty Balloons)
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

23. Qualitative Measures Word association Projective techniques
Visualization
Brand personification
Laddering
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

24. Technological Devices
Galvanometers
Tachistoscope
Eye cameras
Audiometers
GPS
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

25. 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?
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

26. Table 4.2 Types of Samples Probability Samples Simple random
Stratified random
Cluster
Nonprobability Samples
Convenience
Judgment
Quota
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

27. Contact Methods Mail questionnaire Telephone interview
Personal interview
Online interview
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

28. 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
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

29. 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.
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

30. 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
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

31. Table 4.3 Characteristics of Good Marketing Research
Scientific method
Research creativity
Multiple methods
Interdependence
Value and cost of information
Healthy skepticism
Ethical marketing
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

32. What are Marketing Metrics?
Marketing metrics are the set of measures that helps marketers quantify, compare, and interpret marketing performance.
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

33. 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
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

34. 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.
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

35. 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.
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

36. 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
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

37. Common Measurement Paths
Customer metrics pathway
Unit metrics pathway
Cash-flow metrics pathway
Brand metrics pathway
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

38. The Measures of Market Demand
Potential market
Available market
Target market
Penetrated market
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

39. Vocabulary for Demand Measurement
Market demand
Market forecast
Market potential
Company demand
Company sales forecast
Company sales potential
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

40. How Can We Estimate Current Demand?
Total market potential
Area market potential
Market buildup method
Multiple-factor index method
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

41. Estimating Future Demand
Survey of Buyers’ Intentions
Composite of Sales Force Opinions
Expert Opinion
Past-Sales Analysis
Market-Test Method
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall