Ii mm.04.10

04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi

1

Marketing ManagementMBA CP 205


2

Conducting Marketing Research


3

Learning Objectives:

• Know what constitutes good marketing research.• Know what are good metrics for measuring

marketing productivity.• Know how companies can more accurately measure

and forecast demand.



4


Marketing Research

Market research may be defined as the systematic design, collection, analysis and

reporting of data and findings relevant to a specific marketing situation

facing the company.


5


Markets

Market research

Market entry strategy

Product strategy Pricing strategy

Distribution strategy

Communication strategy


6

Types of Marketing Research firms


Syndicated-service

CustomSpecialty-

line


7

The Marketing Research Process


Define the problem

Develop research plan

Collect information

Analyze information

Present findings

Makedecision


8

Step one:

• Define the problem: The problem should not be defined too narrowly or too broadly.

• Specify the decision alternatives: The purpose of research is to generate meaningful information that will help in taking effective decisions.

• State research objectives: The marketing researcher should then set specific objectives of the study.



9

Step Two:

Data Sources

ContactMethods

ResearchInstruments

SamplingPlan

Research Approaches

Research Plan



10

Research approaches:

ObservationObservation

Focus GroupFocus Group

SurveySurvey

Behavioral DataBehavioral Data

ExperimentationExperimentation



11

A focus group in session

with marketing people observing through a

oneway mirror



12

Research Instruments


Questionnaires

Qualitative Measures

Mechanical Devices


13

Questionnaire Dos and Don’ts

Ensure questions are free of bias

Make questions simple Make questions specific Avoid jargon Avoid sophisticated words Avoid ambiguous words

Avoid negatives Avoid hypotheticals Avoid words that could be

misheard Use response bands Use mutually exclusive

categories



14

Question types:

• Dichotomous: A question with two possible answers.

• In arranging this trip, did you personally phone Air India?

Yes No • Multiple choice: A question with three or more answers.

• Likert scale: A statement with which the respondent shows the amount of agreement/disagreement. (Scale 1-5).

• Semantic differential: A scale connecting two bipolar words. The respondent selects the point that represents his or her opinion.



15

• Importance scale: A scale that rates the importance of some attribute.

• Rating scale: A scale that rates some attribute from ‘poor’ to ‘excellent’.

• Intention to buy scale: A scale that describes the respondent’s intention to buy.

• Completely unstructured: A question that respondents can

answer in an almost unlimited number of ways.

• Sentence completion: An incomplete sentence is presented and respondents complete the sentence.



16

• Story completion: An incomplete story is presented, and the respondents are asked to complete it.

• Picture: A picture of two characters is presented, with one making a statement. Respondents are asked to identify with the other and fill in the empty call out.

• Thematic Apperception Test (TAT): A picture is presented and respondents are asked to make up a story about what they think is happening or may happen in the picture.



17

Qualitative measures

ShadowingShadowing

Behavior mappingBehavior mapping

Consumer journeyConsumer journey

Camera journalsCamera journalsExtreme user

interviewsExtreme user

interviewsStorytellingStorytelling

Unfocused groupsUnfocused groups



18

Qualitative measures

• Shadowing: Observing people using products, shopping, visiting hospitals or using cell phones.

• Behavior mapping: Photographing people within a space, say a hospital waiting room, for two/three days.

• Consumer journey: Keeping track of all the interactions a consumer has with a product, service, or service.



19

• Camera journals: Asking consumers to keep visual diaries of their activities and impressions relating to a product.

• Extreme user interviews: Talking to people who really know – or know nothing – about a product and evaluating their experience using it.

• Story telling: Prompting people to tell personal stories about their consumer experiences.

• Unfocused group: Interviewing a diverse group of people.



20

Mechanical devices

GalvanometersGalvanometers

TechistoscopeTechistoscope

Eye camerasEye cameras

AudiometersAudiometers



21

Mechanical devices

• Galvanometers: To measure the interest or emotions aroused by exposure to a specific ad or picture.

• Techistoscope: It flashes an ad to a subject with exposure interval of 1/100th of a second to several seconds. After every exposure the respondent describes what he/she recalls.

• Eye cameras: These study the respondents eye movements to see where the eyes land first, how long they linger on an item.

• Audiometers attached to TVs can record when the set is on and to which channel it is tuned in.



22

Sampling Plan

• It calls for three decisions

Sampling unit: who is to be surveyed?

Sample size: How many people should be surveyed? Large samples give more reliable results.

Sampling procedure: How should the respondents be chosen?

Probability (simple random, stratified random or cluster area) or Non-probability (convenience, judgment or quota) samples.



23

Contact methods:

MailQuestionnaires

PersonalInterview

TelephoneInterviews

Online Interview



24

• The data collection phase of the market research is the most expensive and the most prone to error.

• Analyzing the information involves extracting findings from the collected data.

• The concluding steps are presenting the findings and

making the decision.

• Marketing decision support system (MDSS) is being used increasingly to make better decisions.



25

Measuring Marketing Productivity


Marketing Metrics Internal

• Awareness of goals• Commitment to goals• Active support• Resource adequacy• Staffing levels• Desire to learn• Willingness to change• Freedom to fail• Autonomy

External• Awareness• Market share• Relative price• Number of complaints• Customer satisfaction• Distribution• Total number of

customers• Loyalty


26

Tools to measure Marketing Plan Performance

SalesAnalysis

FinancialAnalysis

Marketing Expense to

Sales Analysis

Market shareAnalysis



27

Sales Analysis


Micro-Sales

Analysis

Sales-VarianceAnalysis


28

• Sales analysis involves comparing actual sales in relation to goals. Two specific tools are used: Sales variation analysis and Microsales analysis.

• Sales variation measures relative contribution of various factors to a gap in sales performance.

• Microsales analysis looks at specific products, territories that failed to produce expected sales.

• Market share can be measured in three ways: Overall market share, Served market share and Relative market share.



29

• One way to analyze market share movements is in terms of four components.

• Overall Market share is product of Customer penetration, Customer loyalty, Customer selectivity and Price selectivity.

• Customer penetration: Percentage Customers who buy from the company.

• Customer loyalty: Purchases from the company by its customers expressed as a percentage of their total purchases from all



30

all suppliers of the same products.

• Customer selectivity: Size of the average customer purchase from the company expressed as a percentage of the size of the average customer purchase from an average company.

• Price selectivity: Average price charged by the company expressed as a percentage of the average price charged by all companies.

• Marketing expense to sales analysis involves making sure that the company is not over spending to achieve its marketing goals. It requires monitoring sales force to sales, advertising to sales, sales promotion to sales, marketing research to sales and sales administration to sales ratios.



31

.

. ...India

Ninety Types of demand

Measurement (6X5X3)


Forecasting Demand


32

The measures of Market Demand

PotentialMarket

PenetratedMarket

TargetMarket

AvailableMarket


Forecasting Demand


33

• Potential market, set of consumers who have sufficient interest in the market offer. However, it is not enough to define a market.

• Available market, set of consumers who have sufficient interest, income and access to a particular offer.

• Target market, part of the available market the company decides to pursue.

• Penetrated market, set of consumers who are buying the company’s product.



34

• The key concepts in demand measurement are market demand and company demand. Within each, one has to distinguish among a demand function, a sales forecast and a potential.

• Market demand for a product is the total volume that would be bought by a defined customer group in a defined geographical area, time period, marketing environment and under a marketing plan.

• Market demand is not a fixed number but is a function of stated conditions. These may include industry marketing expenditures in a given time period. Thus it can be called a demand function.



35

Market Demand Function



36

Market Demand Function



37

• Only one level of industry marketing expenditure will occur. The demand corresponding to this level is called the market forecast. It shows expected market demand.

• The market potential is the limit approached by market demand as industry expenditures approach infinity for a given marketing environment.

• Distinction must be made between the position of the market demand function and movement along it. The position depends on the marketing environment. Particular location on the demand function depends on the expenditure company decides to incur.



38

• Company demand is the company’s estimated share of market demand at alternative levels of company marketing effort in a given time period.

• The company’s share of market demand depends on how its products, services, prices and communications are perceived by consumers relative to the competition.

• If other things are equal, the company’s market share will depend on the size and effectiveness of the of its marketing expenditures relative to competitors.



39

• The marketer’s next task is to choose a level of marketing effort. The company Sales forecast is the expected level of company sales based on a chosen marketing plan in a given marketing environment.

• Sales quota is the sales goal set for a product line, company division or a sales representative. It is a managerial tool to stimulate sales effort and is usually set slightly higher than sales forecast.

• Company sales potential is the sales limit approached by company demand as company marketing effort increases relative to that of competitors, the absolute limit being market potential.



40

Recap:

• Know what constitutes good marketing research.• Know what are good metrics for measuring

marketing productivity.• Know how companies can more accurately measure

and forecast demand.


Business

Ii mm.04.10