Chapter

3
Marketing
Research and
Analysis

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Learning Objectives
1. What are the components of a modern
marketing information system?
2. How can companies collect marketing
intelligence?
3. What constitutes good marketing research?
4. How can companies accurately measure and
forecast market demand?
5. What are some influential developments in the
macroenvironment?

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 Modern Marketing
Information System (MIS)

ü Internal company records

ü Marketing intelligence activities
ü Marketing research

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 Internal Records
• Order-to-payment cycle
• Sales information systems
• Databases
• Data warehousing
• Data mining

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 Marketing Intelligence
• A set of procedures and sources that managers
use to obtain everyday information about
developments in the marketing environment

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 Improving Marketing
Intelligence

ü Motivate sales force to report new developments

ü Motivate intermediaries to pass along intelligence
ü Hire external experts to collect intelligence
ü Network internally and externally
ü Set up a customer advisory panel
ü Take advantage of government-related data
ü Purchase information from outside research vendors
ü Collect marketing intelligence on Internet

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 The Marketing Research
System
• Marketing insights
– Provide diagnostic information about how and
why we observe certain effects in the
marketplace

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 Defining Marketing Research
• American Marketing Association
– Marketing research is the function that links
the consumer, customer, and public to the
marketer through information—information
used to identify and define marketing
opportunities and problems; generate, refine,
and evaluate marketing actions; monitor
marketing performance; and improve
understanding of marketing as a process

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 Defining Marketing Research
• Three categories of marketing research
firms

ü Syndicated-service research firms

ü Custom marketing research firms
ü Specialty-line marketing research firms

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 Figure 3.1
The Marketing Research
Process
Develop
Define
research
problem
plan

Make Collect
decision information

Present Analyze
findings information

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 Step 1: Define Problem,
Alternatives, and Objectives
• Define the problem

• Define the decision

alternatives

• Define the research objectives

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 Step 2: Develop the Research
Plan
• Data sources
– Secondary data vs. primary data

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 Step 2: Develop the Research
Plan
• Research approaches

ü Observational research
ü Focus group research
ü Survey research
ü Behavioral research
ü Experimental research

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 Step 2: Develop the Research
Plan
• Research instruments

Questionnaires

Qualitative measures

Technological devices

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 Step 2: Develop the Research
Plan
• Sampling plan
– Sampling unit: Whom should we survey?

– Sample size: How many people should we

survey?

– Sampling procedure: How should we choose

the respondents?

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 Step 2: Develop the Research
Plan
• Contact methods

ü Mail
ü Telephone
ü In person
ü Online

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 Step 3 to Step 6

Step 3: Collect the Information

Step 4: Analyze the Information

Step 5: Present the Findings

Step 6: Make the Decision

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 Forecasting and
Demand Measurement
• Market demand measures
– Potential market

– Available market

– Target market

– Penetrated market

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 The Market Demand Function
• Market demand

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 The Market Demand Function
• Market share

• Market forecast

• Market potential

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The Market Demand Function

Company demand

Company sales forecast

Sales quota

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 Estimating Current Demand
• Total market potential

• Area market potential

– Market-buildup method
– Multiple-factor index method

• Industry sales and market share

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 Estimating Future Demand
• Methods of sales forecasting
– Survey of buyers’ intentions
– Composite of sales force opinions
– Expert opinion
– Past-sales analysis
– Market-test method

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 Analyzing the
Macroenvironment
• Trends

• Fads

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 Identifying the Major Forces
• Six major forces in the broad environment

Demographic Natural

Economic Technological

Socio-cultural Political-legal

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The Demographic Environment
• Worldwide population growth

• Population age mix

• Diversity within markets

• Educational groups

• Household patterns
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The Economic Environment

CONSUMER PSYCHOLOGY

INCOME DISTRIBUTION

INCOME, SAVINGS, DEBT, CREDIT

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 Income Distribution
• Subsistence • Very low incomes
economies • Mostly low
• Raw-material- incomes
exporting • Very low, very
economies high incomes
• Industrializing • Low, medium, high
economies incomes
• Industrial • Mostly medium
economies incomes

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The Sociocultural Environment

Views of Views of
ourselves society

Views of Views of
others nature

Views of Views of the

organizations universe

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 The Sociocultural Environment
• Core cultural values
– Values are passed from parents to children
and reinforced by social institutions

• Subcultures
– Groups with shared values, beliefs,
preferences, and behaviors emerging from
their special life experiences or circumstances

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 The Natural Environment
• Corporate environmentalism
– Opportunities await those who can reconcile
prosperity with environmental protection

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The Technological Environment

Accelerating pace of change

Unlimited opportunities
for innovation

Varying R&D budgets

Increased regulation of
technological change

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The Political-Legal Environment

LAWS

GOVERNMENT AGENCIES

PRESSURE GROUPS

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