CONDUCTING MARKETING RESEARCH AND FORECASTING DEMAND

MARIA TERESA JUSON
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES MBA

Outline:
 What is Marketing research?
 What is the marketing research process?  How to conduct a marketing research?

 How to overcome Barriers to the Use of

Marketing Research ?  How can we measure Marketing Productivity?

Outline:
 What is Forecasting?
 Why do we need to study forecasting and

demand measurement?

Marketing Research

 The systematic design, collection, analysis, and

reporting of data and findings relevant to a specific marketing situation facing the company.

MARKETING RESEARCH FIRMS FALL INTO THREE CATEGORIES

1. Syndicated-service research firms 2. Custom marketing research firms 3. Specialty-line marketing research firms

Using the Internet 3. SUCH AS: 1.SMALL COMPANIES CAN HIRE THE SERVICES OF A MARKETING RESEARCH FIRM OR CONDUCT RESEARCH IN CREATIVE AND AFFORDABLE WAYS. Checking out rivals . Engaging students or professors to design and carry out projects 2.

MARKETING RESEARCH AND DEMAND FORECASTING HOW TO CONDUCT A MARKETING RESEARCH? 1 2 3 4 5 6 .

MARKETING RESEARCH AND DEMAND FORECASTING HOW TO CONDUCT A MARKETING RESEARCH? 1 Define the problem DEFINE THE PROBLEM AND RESEARCH OBJECTIVES .

MARKETING RESEARCH AND DEMAND FORECASTING HOW TO CONDUCT A MARKETING RESEARCH? 2 Develop the research plan DEVELOP THE RESEARCH PLAN .

MARKETING RESEARCH AND DEMAND FORECASTING HOW TO CONDUCT A MARKETING RESEARCH? DATA RESOURCES > Primary data > Secondary data .

Survey Research 4. Behavioral Data 5.MARKETING RESEARCH AND DEMAND FORECASTING THE MARKETING RESEARCH PROCESS 1. Observational Research 2. Focus Group Research 3. Experimental Research .

Avoid questions with a negative in them 8. Avoid jargon or shorthand 5. Do not use words that could be misheard 10.MARKETING RESEARCH AND DEMAND FORECASTING QUESTIONNAIRE DOS AND DON'TS 1. Steer clear of sophisticated or uncommon words 6. Make the questions specific 4. Desensitize questions by using response bands 11. Allow for "other" in fixed response questions . Make the questions as simple as possible 3. Avoid ambiguous words 7. Ensure that fixed responses do not overlap 12. Avoid hypothetical questions 9. Ensure that questions are without bias 2.

MARKETING RESEARCH AND DEMAND FORECASTING RESEARCH INSTRUMENTS Questionnaires Closed-end questions Open-end questions .

MARKETING RESEARCH AND DEMAND FORECASTING RESEARCH INSTRUMENTS Qualitative Measures Here are seven techniques employed by design firm IDEO for understanding the customer experience:  Shadowing  Behavior mapping  Consumer journey  Camera journals  Extreme user interviews  Storytelling  Unfocus groups .

GETTING INTO CONSUMERS' HEADS WITH QUALITATIVE RESEARCH 1. Laddering. Visualization. Word associations 2. . Brand personification. 4. 5. Projective techniques 3.

To check how many billboards a person may walk by or drive by during a day. After each exposure. Global Positioning System (GPS) technology.    Eye cameras study respondents' eye movements to see where their eyes land first. . how long they linger on a given item. the respondent describes everything he or she recalls. ex. and so on. Audiometers can be attached to television sets in participating homes to record when the set is on and to which channel it is tuned.MARKETING RESEARCH AND DEMAND FORECASTING RESEARCH INSTRUMENTS Technological Devices   Galvanometer .can measure the interest or emotions aroused by exposure to a specific ad or picture Tachistoscope flashes an ad to a subject with an exposure interval that may range from less than one hundredth of a second to several seconds.

This calls for three decisions:    Sampling unit: Who is to be surveyed? Sample size: How many people should be surveyed? Sampling procedure: How should the respondents be chosen? .SAMPLING PLAN After deciding on the research approach and instruments. the marketing researcher must design a sampling plan.

MARKETING RESEARCH AND DEMAND FORECASTING CONTACT METHODS Mail Questionnaire Telephone Interview Personal Interview Online Interview .

MARKETING RESEARCH AND DEMAND FORECASTING Research Plan DATA SOURCES • Primary • Secondary RESEARCH APPROACH • Observational • Ethnographic • Focus Group • Survey • Behavioral • Experimental RESEARCH INSTRUMENT • Questionnaire • Qualitative Measures • Technological Devices SAMPLING PLAN • Sampling unit • Sample size • Sampling procedure CONTACT METHODS • Mail Questionnaire • Telephone interview • Personal interview • Online interview .

. Virtual reality lets visitors inspect 3-D models of products.MARKETING RESEARCH AND DEMAND FORECASTING PROS and Cons of Online Research Advantages:     Inexpensive – cost is between 20-50% less than the convensional survey cost. Fast – transmit results immediately People tend to be honest online Versatile – ex. Disadvantages:  Samples can be small and skewed  Prone to technological problems and inconsistencies.

MARKETING RESEARCH AND DEMAND FORECASTING HOW TO CONDUCT A MARKETING RESEARCH? 3 Collect the info COLLECT THE INFORMATION .

MARKETING RESEARCH AND DEMAND FORECASTING HOW TO CONDUCT A MARKETING RESEARCH? 4 Analyze the info ANALYZE THE INFORMATION .

MARKETING RESEARCH AND DEMAND FORECASTING HOW TO CONDUCT A MARKETING RESEARCH? 5 Present the findings PRESENT THE FINDINGS .

MARKETING RESEARCH AND DEMAND FORECASTING HOW TO CONDUCT A MARKETING RESEARCH? 6 Make the decision MAKE THE DECISION .

Healthy skepticism 7. Interdependence of models and data 5. Value and cost of information 6. Ethical marketing . Scientific method 2.The Seven Characteristics of Good Marketing Research 1. Research creativity 3. Multiple methods 4.

Overcoming Barriers to 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 .

Measuring Marketing Productivity Two complementary approaches to measure marketing productivity are: 1. marketing-mix modeling to estimate causal relationships and how marketing activity affects outcomes . Marketing metrics to assess marketing effects 2.

Sample Marketing Metrics I External  Awareness  Market share (volume or value)  Relative price (market share value/volume)  Number of complaints (level of dissatisfaction)  Consumer satisfaction  Distribution/availability  Total number of customers  Perceived quality/esteem  Loyalty/retention  Relative perceived quality II. Internal  Awareness of goals  Commitment to goals  Active innovation support  Resource adequacy  Staffing/skill levels  Desire to learn  Willingness to change  Freedom to fail  Autonomy Relative employee satisfaction .

Measuring Marketing Plan Performance SALES ANALYSIS OVERALL >Sales-variance analysis >Microsales analysis MARKET SHARE ANALYSIS  A useful way to analyze market share movements is in terms of four components: X CUSTOMER MARKET PENETRATION X CUSTOMER LOYALTY X CUSTOMER SELECTIVITY X PRICE SELECTIVITY .

Forecasting and Demand Measurement One major reason for undertaking marketing research is to identify market opportunities Marketing is responsible for preparing the sales forecasts Sales forecasts are based on estimates of demand .

Forecasting and Demand Measurement The Measures of Market Demand • The potential market • The available market • The target market • The penetrated market .

A VOCABULARY FOR DEMAND MEASUREMENT MARKET DEMAND MARKET FORECAST MARKET POTENTIAL COMPANY DEMAND COMPANY SALES FORCAST COMPANY SALES POTENTIAL .

ESTIMATING CURRENT DEMAND ESTIMATED POTENTIAL NUMBER OF BUYERS QUANTITY PURCHASED BY A BUYER TOTAL MARKET POTENTIAL PRICE AREA MARKET POTENTIAL Two major methods of assessing area market potential: 1. Multiple-Factor Index Method . Market-Buildup Method 2.

ESTIMATING CURRENT DEMAND TOTAL MARKET POTENTIAL AREA MARKET POTENTIAL Two major methods of assessing area market potential: 1. Multiple-Factor Index Method . Market-Buildup Method 2.

ESTIMATING CURRENT DEMAND INDUSTRY AND MARKET SHARES .

ESTIMATING FUTURE DEMAND SURVEY OF BUYERS' INTENTIONS COMPOSITE OF SALES FORCE OPINIONS EXPERT OPINION PAST-SALES ANALYSIS MARKET-TEST METHODS .

THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING WHAT IS MARKETING RESEARCH? • Systematic design .

THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING WHAT IS MARKETING RESEARCH? • Systematic design •Collection .

THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING WHAT IS MARKETING RESEARCH? • Systematic design •Collection •Analysis .

THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING WHAT IS MARKETING RESEARCH? • Systematic design •Collection •Analysis Reporting .

A.R of data and findings relevant to a specific marketing situation of the company .C.THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING WHAT IS MARKETING RESEARCH? • Systematic design •Collection •Reporting •Analysis S.

THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING WHY MARKETING RESEARCH? • It is a system to produce INSIGHTS into the customers’ ATTITUDES and buying BEHAVIOR .

THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING WHEN TO SAY WE HIT THE MARKET? Marketing Metrics Marketing Mix Modeling Marketing Dashboards Measured Market Productivity .

THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING WHEN TO SAY WE HIT THE MARKET? Marketing Metrics Consumer behavior Competitors .

THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING WHEN TO SAY WE HIT THE MARKET? Marketing Mix Modeling Market share Customer satisfaction Employee satisfaction .

THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING WHEN TO SAY WE HIT THE MARKET? Marketing Metrics Stakeholder performance scorecard Customer performance scorecard .

THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING WHERE TO SET SIGHTS IN THE MARKET? .

THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING WHERE TO SET SIGHTS IN THE MARKET? MEASURE OF MARKET DEMAND POTENTIAL MARKET .

THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING WHERE TO SET SIGHTS IN THE MARKET? MEASURE OF MARKET DEMAND AVAILABLE MARKET .

THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING WHERE TO SET SIGHTS IN THE MARKET? MEASURE OF MARKET DEMAND TARGET MARKET .

THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING WHERE TO SET SIGHTS IN THE MARKET? MEASURE OF MARKET DEMAND PENETRATED MARKET .

THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING DEMAND MEASUREMENT CONCEPTS COMPANY DEMAND MARKET DEMAND COMPANY SALES POTENTIAL MARKET AND COMPANY SALES FORECAST .

THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING ESTIMATING FUTURE AND CURRENT DEMAND CURRENT DEMAND and FUTURE DEMAND .

THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING ESTIMATING FUTURE AND CURRENT DEMAND ESTIMATING CURRENT DEMAND .

THE 4 Ws and H of MARKETING RESEARCH AND DEMAND FORECASTING ESTIMATING FUTURE AND CURRENT DEMAND ESTIMATING CURRENT DEMAND TOTAL Total Market MARKET Potential POTENTIAL Area Market Potential Industry Sales Market Shares .

Thank You! MARIA TERESA JUSON MBA 636 .

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