MARKETING MANAGEMENT
MHRM- 2022
MARKET RESEARCH AND DEMAND FORECASTING
Prof. Aby Abraham
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The Scope of
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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• https://www.youtube.com/watch?v=JVqISa-
267Y&ab_channel=P%26G%28Procter%26Ga
mble%29
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The Scope of
marketing research
• Importance of marketing insights
– Generating insights (how and why we observe
certain effects in the marketplace)
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The Scope of
marketing research
• Overcoming Barriers
to the Use of
Marketing Research
– Many companies
still fail to use it
sufficiently or
correctly
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Figure 4.1
The Marketing Research Process
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Step 1
• Define the problem
• Define the decision alternatives
• Define the research objectives
– exploratory—its goal is to identify the problem and to
suggest possible solutions
– descriptive—it seeks to quantify demand
– causal—its purpose is to test a cause-and-effect
relationship
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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
Observational research
Focus group research
Survey research
Behavioral research
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Step 2: Develop the Research Plan
• Research instruments
Questionnaires
Qualitative measures
Technological devices
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Questionnaire
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Questionnaire
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Qualitative measures
ZMET Word
approach association
Projective
Laddering techniques
Brand
Visualization
personification
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Step 2: Develop the Research Plan
• Technological devices
– Galvanometer
– Tachistoscope
– Eye-tracking
– Facial detection
– Skin sensors
– Brain wave scanners
– Audiometer
– GPS
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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
Mail
Telephone
Personal
Online
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Online Research
• Advantages • Disadvantages
– Inexpensive – Small
– Expansive – Skewed
– Fast – Excessive turnover
– Honest – Technological
– Thoughtful problems
– Versatile – Technological
inconsistencies
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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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Table 4.2
Good Marketing Research
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Measuring Marketing Productivity
• Marketing metrics
• Marketing-mix
modeling
• Marketing dashboards
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Marketing metrics
• Measures that help marketers quantify,
compare, and interpret performance
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MARKETING-MIX MODELING
• Analyzes 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
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Marketing Dashboards
• “A concise set of interconnected performance
drivers to be viewed in common throughout
the organization.”
Customer-performance scorecard
Stakeholder-performance scorecard
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Table 4.4
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Components of a
Modern Marketing
Information System (MIS)
Internal company records
Marketing intelligence activities
Marketing research
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Internal records
• Internal reports of orders
• Sales
• Prices
• Costs
• Inventory levels
• Receivables
• Payables
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Market demand vocabulary
• Market share
• Market-penetration index
– the current and potential levels of market
demand
• Share-penetration index
– current and potential market shares yields
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Demand measurement vocabulary
Market forecast
Market potential
Company demand
Company sales forecast
Company sales potential
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Estimating Current Demand
• Total market potential
– Chain-ratio method
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Estimating Current Demand
• Area market potential
– Market-buildup method
• for identifying all the potential buyers in each
market and estimating their potential purchases
– Multiple-factor index method
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Estimating Current Demand
• Industry sales and market share
• https://www.siam.in/statistics.aspx?mpgid=8
&pgidtrail=14
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Estimating future demand
• Survey of buyers’ intentions
– Forecasting and purchase probability scale
• Composite of sales force opinions
• Expert opinion
• Past-sales analysis
• Market-test method
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