5 B2B Ind Mkt Research

8/12/2019 5 B2B Ind Mkt Research

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Industrial Market Research

Consumer Market research studies the

buying habits of people

Industrial Market research investigates

the market for products sold by one

business to another


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Industrial Market Research

Primary dataExperimental andobservational methodNon-technicalLarge sample size due to

large universeEasy definition of respondentsIndividuals and householdsEasy accessability ofrespondents for data collection

Secondary dataDescriptive or survey methodfor data collectionTechnical factors assessedSmall sample sizeDefining respondents difficultTime constraints and limitedaccessability to respondents

Consumer MR Business MR


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Scope of Business MR

Development of Market Potential

Market share analysis

Sales Analysis Forecasting

Competitor Analysis

Benchmarking New product acceptance and potential

Business trend analysis

Sales quota determination


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Market Research ProcessDefine researchobjective

1 Informationneeded

Identify sourcesOf information

Techniques forAcquiring info

Gather & processinformation

Data analysis &interpretation

Report &

communicate

2

3

4

5

6

7


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MR Process Design elements:

Secondary or primary or both in sequence

Sampling plan Q design (if applicable)

Field work

Tabulation

Secondary search:

From published sources and internal records

SIC: Standard Industrial Code

(exim.indiamart.com)


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STANDARD INDUSTRIAL CODE (INDIA)

Division D: Manufacturing

Major Group 33: Primary Metal Industries

Major Group 34: Fabricated Metal Products, Except Machinery

And Transportation Equipment

Major Group 35: Industrial And Commercial Machinery And

Computer Equipment

Major Group 36: Electronic And Other Electrical Equipment And

Components, Except Computer Equipment

Major Group 37: Transportation EquipmentMajor Group 38: Measuring, Analysing, And Controlling

Instruments; Photographic, Medical And Optical Goods; Watches

And Clocks

Major Group 39: Miscellaneous Manufacturing Industries


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Major Group 35: Industrial And Commercial Machinery And

Computer Equipment

Industry Group 351: Engines And Turbines

Industry Group 352: Farm And Garden Machinery And

Equipment

Industry Group 353: Construction, Mining, And Materials

Handling

Industry Group 354: Metalworking Machinery And Equipment

Industry Group 355: Special Industry Machinery, ExceptMetalworking

Industry Group 356: General Industrial Machinery And

Equipment

Industry Group 357: Computer And Office Equipment


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Industry Group 356: General Industrial Machinery AndEquipment3561 Pumps And Pumping Equipment

3562 Ball And Roller Bearings

3563 Air And Gas Compressors

3564 Industrial And Commercial Fans And Blowers And AirPurification

3565 Packaging Machinery

3566 Speed Changers, Industrial High-speed Drives, And Gears

3567 Industrial Process Furnaces And Ovens

3568 Mechanical Power Transmission Equipment, Not Elsewhere

Classified

3569 General Industrial Machinery And Equipment, Not

Elsewhere


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Forecasting Process

Identifying forecasting objectives

Short-range (3 to 6 months); Mid-range (1

to 2 years) and Long-range (>2 years)

General economy forecast

Industry sales forecast

Company sales forecast

Sales forecast for the product lines


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Forecasting Process

Determining independent and dependent

variables Developing forecasting procedure

Select forecast analysis method


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Sales Forecasting Methods

Qualitative:

Experts opinion

Delphi Method

Survey of buyers expectation

Sales force composite method

Historical analogy method for new products


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Time Series Analysis

Nave or simple method based on rate of change of

sales of previous periods

Free hand or Graphic method

Method of semi averages

Method of moving averages

Method of least square

Using seasonality index (Decomposition method)

Exponential smoothing method

Correlation analysis

Regression analysis


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Hypothesis Testing The purpose of hypothesis testing is to determine whethera claimed (hypothesized) value for population parametershould be accepted based on sample evidence.

Null Hypothesis: H0: is the hypothesized parameter

value which is compared with the sample result. While formulating H0 usually thewords no, not or same will be

part of the hypothesis.

Alternative Hypothesis: H1or Ha: is accepted only ifthe null hypothesis is rejected.

Select desired level of significance (0.01, 0.05 or 0.1corresponding to confidence coefficients of 99%, 95% or90% respectively) and tolerable error level


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Hypothesis Testing Type I error: If the 5% level of significance is

used, there is probability of 0.05 of rejecting thenull hypothesis, when it is in fact true. This is

called Type I error. Type II error: occurs if the null hypothesis is not

rejected, and therefore accepted, when it is in factfalse.

Consequences of decisions in hypothesis testing isgiven in next slide Statistical decision is not necessarily is a

managerial decision


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Hypothesis Testing

Null hypothesis falseNull hypothesis true

Correctly rejectedType I error

(Alpha error)

Reject null hypothesis

Type II error

(-Beta error)

Correctly acceptedAccept null hypothesis

Possible states

Possible Decision

Consequences of decisions in Hypothesis Testing


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Market Research Application ANOVA

Correlation and Regression

Discriminant Analysis Factor Analysis

Cluster Analysis

Multi-dimensional Scaling (MDS) Conjoint Analysis

Perceptual Mapping


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Market Research Application ANOVA

Independent variables are nominal

scales

Dependent variables are continuous

Used analysing design of experiments


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Market Research Application Correlation and Regression

Used for sales estimates

Explains causation

Establishes degree of association

between quantitative data


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Market Research Application Discriminant Analysis

Assigns objects to groups

Selects, classifies and predicts

Used for identifying potential/non-

potential customer or low-risk/high-

risk customers


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Market Research Application Factor Analysis

Reduction of variables

Factor extraction

Used for establishing purchase

criterion

Classifies attributes


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Market Research Application Cluster Analysis

Combines similar objects

Segmentation application


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Market Research Application Multi-dimensional Scaling (MDS)

Used for brand positioning

Attribute based

similarity/dissimilarity based


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Market Research Application Conjoint Analysis

Used for product design and pricing

Works on utility levels


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Market Research Application Perceptual Mapping

Attribute based

Extension of discriminant analysis

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5 B2B Ind Mkt Research