REPORTED BY: ELLAINE JOY DALUZ

CONDUCTING
MARKETING RESEARCH
AND FORECASTING
DEMAND
CHAPTER 4
What is Marketing Research?
- Is the systematic design, collection, analysis, and
reporting of data and findings relevant to a specific marketing
situation facing the company.
Marketing Research Process
 Is a series of steps used to plan and conduct relevant and
informative research for marketing purposes.
 It increases the chance of success from your marketing efforts,
as research allows for more informed decision making and
strategizing.
Define the problem and
Analyze Information
Research Objectives

Develop Research
Present Findings
Plan

Collect Information Make Decision

“The Marketing Research

Process”
Define the problem and Research Objectives
 Purpose of the study
 Relevant background information and all
necessary data
 State research objectives
Develop Research Plan
Data Sources
- Primary Data
- Secondary Data
Research Approach
- Observational Research
- Ethnographic
- Focus Groups
- Survey
- Behavioral Data
- Experimentation
Research Instrument
- Questionnaires
- Qualitative Measures
- Technological Devices
Sampling Plan
- Probability
- Non Probability
Contact Methods
- Mail
- Telephone Interview
- Personal Interview
- Online Interview
Data Collection
 Phase in marketing research that is generally the
most expensive and the most prone to error.
Analyze the Information
 The researcher extract findings by tabulating the
data and developing frequency distributions.
 The aim of data analysis in research is to discover
useful information from a set of data and
conclusions that can be used to form insights.
Present the Findings
 A sign of customization is relating the research
findings to the purposes people would have for
accessing the findings
 Researchers increasingly are being asked to play
a more proactive, consulting role in translating
data and information into insights and
recommendations.
Make the Decisions
“Marketing Decision Support System (MDSS)”
 A coordinated collection of data, 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
actions.
Barrier 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
The 7 Characteristics of Good
Marketing Research
1. Scientific Method
2. Research Activity
3. Multiple Methods
4. Interdependence of model and data
5. Value and Cost of Information
6. Healthy Skepticism
7. Ethical Marketing
Marketing Metrics
 The set of measures that helps marketers
quantify, compare, and interpret marketing
performance.
 Measurable values that are used by marketing
teams to demonstrate the effectiveness of
campaigns across all marketing channels.
Why Marketing Metrics Is Important?
The Marketing metrics has become a key to
success for many of the organizations, as it helps in
performance measurement and give a proper insights
of the business operations.
Use to assess the marketing plan, and achieve
improved performance of the firm.
Sample of Marketing
Metrics
EXTERNAL
 Awareness
 Market Share
 Relative Price
 Number of Complaints
 Customer Satisfaction
 Distribution
 Total Number of Customer
 Loyalty
INTERNAL
 Awareness of Goals
 Commitment to Goals
 Active Support
 Resource Adequacy
 Staffing Levels
 Desire to Learn
 Willingness to Change
 Freedom to fail
 Autonomy
Marketing Mix Model
Analyze data from a variety sources such as:
- retailer scanner data - media
- company shipment data - promotion spending data
- pricing
It helps to understand more precisely the effects of specific
marketing activities.
IMPORTANCE:
- A significant tool for creating the right MARKETING
STRATEGY and its implementation through effective tactics.
- The assessment of the roles of PRODUCT, PROMOTION,
PRICE and PLACE plays a vital part in overall marketing
appoach.
Marketing Dashboards
Customer – performance scorecard
- records how well the company is doing year after
year on customer based measures.
- a tool that is being used to measure “CUSTOMER
SATISFACTION “.
Stakeholders – performance scorecard
- tracks the constituencies who have a critical
interest in and impact on the company’s performance including
employees, suppliers, banks, distributors, retailers and
stockholders.
 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 level of satisfaction
 % of customers who would purchase
 % of target market members with brand recall
 % of customers who say brand is most preferred
FORECASTING
AND DEMAND
MEASUREMENT
 Forecasting is the art of estimating future demand by
anticipating what buyers are likely to do under a given
set of future conditions.
 Forecasting and Demand Measurements requires an
analysis of the market with an aim of expressing it in
quantitative (numeric) quantities both present and in
future.
 The importance of Forecasting and Demand
Measurements is it reduces risk related to business
activities and helps it to take efficient decisions.
 Businesses are forced to look well ahead in order to plan
their investments, launch a new product, decide when to
close or withdraw products.
Vocabulary for Demand Measurement
• Market Demand – is the sum of the individual demand
for a product from buyers in the market.
- the more buyers enter in the market and have an
ability to pay for items on sale, the market demand at
each price level will rise.
• Market Forecast – is a core component of a market
analysis. It projects the future numbers, characteristics,
and trends in your target market.
• Market Potential – is the entire size of the market for a
product at a specific time. It represents the upper limit
of the market for a product.
- it is usually measured either by sales value or sales
volume.
• Company Demand – is the company’s estimated share
of market demand at alternative levels of company
marketing effort in a given period of time.
• Company Sales Forecast – the process of estimating
future sales. It gives insight into how the company should
manage its workforce, cash flow and resources.
• Company Sales Potential – the maximum level of sales a
company can expect to achieve in the forecast period
with its present and planned levels of marketing effort
and expenditure and the given set of market conditions.
Current Demand
- the maximum level of sales available to all the firms
in a market during a given period time, with a given level of
marketing effort and under a given set of market conditions.
Estimating Current Demand
• Total Market Potential – calculation the greatest amount
of potential sales of a particular product industry in a
specific period of time.
• Area Market Potential – estimate of the amount of sales,
in units and in dollars that might be possible in a given
TERITORY or REGION.
• Market Build Up method
- estimating the revenue potential of
an industrial market by identifying the
number of potential buyers in the market
and the purchase requirements of each.
• Multiple Factor Index Method
 Estimating Future Demand
• Surveys of Buyers Intentions
• Composite of Sales Force Opinions
• Expert opinions
• Past Sales Analysis
• Market – Test Method
CREATING
CUSTOMER VALUE,
SATISFACTION AND
LOYALTY
CHAPTER FIVE
Customer Value
- is the perception of what a product
or service is WORTH to a CUSTOMER
versus the possible alternatives.
IMPORTANCE:
- The results of your efforts to create
value are measured in the CUSTOMERS’
PERCEPTION of that value.
How Do You Give Value To The Customers?
5 Steps:
1. Understand what drives value for your customers

2. Understand your value proposition

3. Identify the customers and segments where are

you can create more value relative to competitors
4. Create a win – win price

5. Focus investments on your most valuable customers

 Determinants of
Customer Value

Total Customer Benefit Total Customer Cost

• Product benefit • Monetary cost
• Service benefit • Time cost
• Personal benefit • Energy cost
• Image benefit • Psychological cost
Customer Satisfaction
- is a measure of how products and services
supplied by a company meet or surpass CUSTOMER
EXPECTATION.
How important is Customer Satisfaction?
- When customers share their story, they're not
just sharing pain points. They're actually teaching you
how to make your product, service, and business
better. Your customer service organization should be
designed to effectively communicate those issues.
How Do You Achieve Customer Satisfaction?
1. Understand your customers. Make them special
2. Commit wholeheartedly
3. Measure success

Loyalty
- is a deeply held commitment to re-buy or re-patronize a
preferred product or service in the future situational influences and
marketing efforts having the potential to cause switching behavior.
IMPORTANCE:
- impacts almost every metric important to running a business.
Without happy customers that continue to buy from you, the business
won't survive. New customers tend to cost more to acquire, and don't
spend as much money as loyal, repeat customers.
THE 150 – 20 RULE
Customer Relationship Management (CRM)
- the process of carefully managing detailed information
about individual customers and all customer touch points to
maximize customer loyalty.
- it is a technology for managing all your company’s
relationships and interactions with customers and potential
customers.
Framework for CRM
• Identify prospects and customers
• Differentiate customers by needs and value to company
• Interact to improve knowledge
• Customize for each customer
ANALYZING
CONSUMER
MARKETS
CHAPTER 6
How does Consumer Behavior
affect marketing?
- Companies that tailor their marketing efforts
to match consumer behavior are more likely to
understand their customers and provide products or
services that appeal to them. To
understand consumer behavior, marketers must
understand the factors that affect it, including
psychological, personal and social factors.