Marketing Research

and Competitive Intelligence

Key Questions
• What constitutes good marketing research?
• What are the best metrics for measuring marketing
productivity?
• How can marketers assess their return on investment (ROI)
of marketing expenditures?
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.

• Marketing research firms can be in-house/internal or

external firms, which can provide a full range of services or a
few specific services like data collection only or data analysis
only.
The Marketing Research Process
• Define the problem (research questions and objectives)
• Develop research plan
• Collect information (primary and secondary sources)
• Analyze information
• Present findings
• Make decision
Types of Research (Some examples)
• Exploratory (usually qualitative research to explore something)
• Descriptive (to describe the characteristics of something,
which is usually a qualitative study without testing any
hypotheses through inferential statistics)
• Causal (quantitative research to explain cause and effect
relationship among some variables; also called correlational
studies)
• Exploratory and exploratory studies (mixed methods’ studies
comprising qualitative and quantitative researches)
Research Approaches/Techniques (Some examples)
• Interviews (containing open-ended, structured or semi-
structured questions used for a qualitative study)
• Focus group (an interview simultaneously from a group of 8-12
people)
• Observational and ethnographic studies (qualitative or
quantitative)
• Survey (containing close-ended, structured questions on a scale
used for a quantitative study with a large sample, which tests
hypotheses through inferential statistics)
• Experimental (a quantitative study)
Focus Group
Marketing Research and Competitive
Intelligence
• Consumer insights (complaints and feedback, social media
reviews, trends, needs and wants, demands, gaps or sweet
spots)
• Rival and competitors’ offers, network, and capabilities
• Market news and updates (from published sources to sales and
distribution network, expert opinions, trade associations,
consultants, government sources, etc.)
• New entrants, minor, and major players
• Alliances, joint ventures, mergers, acquisitions, takeovers, etc.
Marketing Metrics
• Marketing metrics are the set of measures that helps
marketers quantify, compare, and interpret marketing
performance. One simple bottom line is ROI.
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.
 Demand Forecasting,
Segmentation, Targeting, and
Positioning (STP)
Forecasting and Demand Measurement

• How can we measure market demand?

• Potential market
• Available market
• Target market
• Penetrated market
Demand Measurement
Demand Measurement (examples)
Estimating Future Demand
• Survey of Buyers’ Intentions
• Composite of Sales Force Opinions
• Expert Opinion
• Past-Sales Analysis
• Market-Test Method

• Formula: average quantity bought by each customer in a

given period times price
Segmentation and Market-Driven Strategy
SEGMENTS

VALUE
OPPORTUNITIES

CAPABILITIES/
SEGMENT
MATCH

TARGET(S)

POSITIONING
STRATEGY
 Product Variant Segmentation (ex. Tata Nano)
Product Type Segmentation (ex. cars only)
Generic Segmentation (ex. all automobiles)
Benefits of Segmentation
• Effective use of resources
• Gain a focus
• Create Value for a target market
• Analyze the competitors, do research, and select the target market
that is profitable, large enough to be attractive, and growth-oriented
• Positioning
Market Segmentation - Levels of Market
Segmentation

Through market segmentation, companies divide large, heterogeneous markets

into smaller segments that can be reached more efficiently and effectively with
products and services that match their unique needs.
(no segmentation, i.e. a commodity)
Same product to all consumers
Mass Marketing
(some segmentation, i.e. Marriott)
Different products to one or more segments
Segment Marketing
Illustrative Segmentation Variables
Consumer Industrial/
Markets Organizational Markets
Characteristics Age, gender, income, Type of industry, size,
of people/ family size, lifecycle geographic location,
organizations stage, geographic corporate culture, stage of
location, development, producer/
lifestyle intermediary
Use situation Occasion, importance of Application, purchasing
purchase, prior procedure (new buy, modified
experience with product, rebuy, or straight rebuy)
user status
Buyers’ needs/ Brand loyalty status, brand Performance requirements,
preferences preference, benefits sought, brand preferences, desired
quality, price, proneness to features, price, service
make a deal requirements
Purchase Size of purchase, Volume, frequency
behavior frequency of purchase of purchase, on cash or credit
Basis of Market Segmentation
S# Type Sub-type (or basis of segmentation)
1 Geographic Segmentation region, province, city, urban, rural, semi-urban, and
climate

2 Demographic Segmentation age, gender, family size, family life cycle, income,
occupation, race, religion, and nationality or ethnic
mix

3 Psychographic Segmentation social class, personality, and lifestyle

4 Behavioral Segmentation occasion to use the product, benefits sought, user
status (non-user or user), usage rate, loyalty status,
readiness to use stage (to become aware or desirous
Source: Adapted from David (2009); Kotler (1984); Qureshi (2014)
to use), and attitude toward the product
Segment Dimensions for Hotel Lodging
Services
Creating New Categories of Products,
Niches, and Industries
Positioning Strategy
• Deciding the desired perception/association of an
organization/ brand by target buyers…and designing the
marketing program to meet (and exceed) buyers’ value
requirements.
• Some examples: positioning by differentiation, perceived
value/value proposition/unique sales proposition (USP),
pricing, premium price and quality, product
characteristics/features/benefits, use or application,
product class, cultural symbols, matching with the
competitors’ offers, etc.
Developing the Positioning Strategy

The positioning strategy places the

marketing program (mix)
components into a coordinated
set of actions designed to
deliver superior customer
value
PRODUCT
VALUE CHAIN
PROMOTION
PRICE
Positioning Issues
1. The positioning concept applies to a specific brand
rather than all the competing brands that compose a
product classification.

2. The concept is used to guide positioning decisions

over the life of the brand.

3. Multiple concepts are likely to confuse buyers and

may weaken the effectiveness of positioning actions
(Ex. Small size Mercedes Benz cars).

4. Under-positioning and over-positioning the brand