MARKETING RESEARCH

MARKETING INSIGHTProvides the diagnostic information about how and why we observe certain effects in the market place and the meaning of it.

MARKETING RESEARCH

The systematic design, collection, analysis and reporting of data findings relevant to a specific marketing situation facing a company.

SCENARIO: In-flight Amenities

• First Airline to have an in flight telephone for First and Business Class’ passenger use.

• Wants to install an in flight internet service for the First and Business Class patrons for a fee.

TYPES OF MARKETING FIRMSSYNDICATED SERVICE- gather consumer and trade information which they sell for a fee.

CUSTOM- hired to carry out specific projects. Customized study and report of the findings.

SPECIALTY LINE- provide specialized research services. Provides interviewing services to other firms.

Define the Research Problem

Develop the Research

Plan

Collect the Information

Analyze the

Information

Present the Findings

Make the

Decision

MARKETING RESEARCH PROCESS

Step 1: Define the Problem, Alternatives and the Objectives

Marketing Managers must be careful in defining the problem.

Step 2: Develop the Research Plan

Develop the most efficient plan for gathering the needed data and how much it will cost .

DATA SOURCES

PRIMARY DATA

Are freshly gathered for a specific purpose for a specific project.

SECONDARY DATA

Are collected from another purpose and is already existing.

RESEARCH APPROACHOBSERVATIONAL gathering of relevant data is through observation of the settings

ETHNOGRAPHIC An observational research approach that uses concepts and tools from anthropology and other social science discipline to provide a deep understanding of how people live and work.

FOCUS GROUP gathering of 6-10 people carefully selected by the researchers based on the situation brought together to discuss certain topics at length

SURVEY done to learn about people’s knowledge, beliefs, preferences and satisfaction to measure their magnitudes in general

BEHAVIORAL DATA researchers learn from customer traces and behaviour and analyze it.

EXPERIMENTAL designed to capture cause & effect relationships by eliminating biased explanations of the observed findings.

RESEARCH INSTRUMENTSQUESTIONNAIRES A set of

questions presented to respondents.

QUALITATIVE MEASURES are relatively unstructured

measurement approaches that permit a range of possible

responses.

TECHNOLOGICAL DEVICES done to learn about people’s knowledge,

beliefs, preferences and satisfaction to measure their

magnitudes in general.

Step 3: Collect the Information

The most expensive and most prone to errors in the research.

Step 4: Analyze the Information

Extract findings by tabulating the data and developing frequency distributions.

Step 5: Present the Findings

The dirty work is through and this where the final say will be based.

The researcher must have a proactive consulting role in presenting his findings and translating them into insights and recommendations.

The pros and cons of the idea will be presented here in preparation for the decision.

Step 6: Make the Decision!

Evidence from the commissioned researchers has to be weighed.

Stats are readily available, the decision is up to the top management to decide.

LOW Findings- project might be cancelled

HIGH Findings- the findings support the inclination.

MEASURING MARKETING PRODUCTIVITY

MARKETING METRICS

Set of measures that helps quantify, compare and interpret the marketing performance.

Used by managers to justify the program and is used by the senior management to decide on financial allocations.

MARKETING MIX MODEL

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.

Help allocate expenditures.

Analysis explore which budget are wasted, what optimal spending levels are and the minimum investment level.

MARKETING DASHBOARD

Summary of external and internal measures for interpretation.

They are only as good as the information on which they are based.

Visually displaying real time indicators to ensure proper functioning similar to an automobile’s dashboard.

FORECASTING and DEMAND MESUREMENT

FORECASTING

Is the art of anticipating what buyers are likely to do under a given set of conditions.

MARKET DEMAND

Is the total volume that would be bought by a defined customer group in a defined geographical area in a defined period of time in defined marketing environment under a defined marketing program.

MEASURES OF MARKET DEMAND

POTENTIAL MARKET Consumers who profess a sufficient level of interest in a market offer.

AVAILABLE MARKET Consumers who have interest, income and access to a particular offer

TARGET MARKET The qualified available market that the company wishes to pursue

PENETRATED MARKET Consumers who are buying the product

VOCABULARY FOR DEMAND MESUREMENT

MARKET DEMAND is the total volume that would be bought in a defined customer group in a defined area in a defined time period in a defined marketing environment under a defined program.

MARKET FORECAST is the market demand corresponding to the industry marketing expenditure.

MARKET POTENTIAL is the limit approached by the market demand as industry expenditures approach infinity for a given marketing environment.

MEASURES OF COMPANY DEMAND

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

COMPANY SALES FORECAST is the expected level of company sales based on a chosen marketing plan and an assumed marketing environment.

COMPANY SALES POTENTIAL is the sales limit approached by the company demand as company marketing effort increases relative to that of competitors.

DEMAND MEASURESMENT

TOTAL MARKET POTENTIAL is the maximum amount of sales that might be available to all the firms in an industry during a given period, under a given level of industry marketing effort and conditions.

AREA MARKET POTENTIAL is the need to estimate the market potential of different cities, states and countries.

METHODS OF ASSESSING AREA MARKET POTENTIAL

MARKET BUILD-UP METHOD is to identify all the potential buyers in each market and estimating their purchases.

Produces accurate results if a list all potential buyers and good estimate in on hand.

MULTIPLE FACTOR INDEX METHODthe estimate allocation of how many products will be produced based on population size of the market.

FUTURE DEMAND ESTIMATE

SURVEY OF BUYER’S INTENTION Periodic question-answer on how consumers feel about a product.

COMPOSITE SALES FORCE OPINION The sales representative estimate their future sales. Inaccurate basis in forecasting.

FUTURE DEMAND ESTIMATE

EXPERT OPINION is the third party inputs on the situation, including dealers, suppliers, distributors and consultants.

PAST SALES ANALYSIS estimates are based on sales from the previous period.

MARKET TEST METHOD Introducing a new product to the market. Trial and error method.

A Presentation by

CARLO MIGUEL A. NARBONETA