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04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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Marketing ManagementMBA CP 205
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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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.
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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Conducting Marketing Research
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.
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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Conducting Marketing Research
Markets
Market research
Market entry strategy
Product strategy Pricing strategy
Distribution strategy
Communication strategy
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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Types of Marketing Research firms
Conducting Marketing Research
Syndicated-service
CustomSpecialty-
line
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The Marketing Research Process
Conducting Marketing Research
Define the problem
Develop research plan
Collect information
Analyze information
Present findings
Makedecision
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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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.
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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Step Two:
Data Sources
ContactMethods
ResearchInstruments
SamplingPlan
Research Approaches
Research Plan
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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Research approaches:
ObservationObservation
Focus GroupFocus Group
SurveySurvey
Behavioral DataBehavioral Data
ExperimentationExperimentation
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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A focus group in session
with marketing people observing through a
oneway mirror
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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Research Instruments
Conducting Marketing Research
Questionnaires
Qualitative Measures
Mechanical Devices
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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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
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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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.
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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• 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.
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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• 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.
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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Qualitative measures
ShadowingShadowing
Behavior mappingBehavior mapping
Consumer journeyConsumer journey
Camera journalsCamera journalsExtreme user
interviewsExtreme user
interviewsStorytellingStorytelling
Unfocused groupsUnfocused groups
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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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.
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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• 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.
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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Mechanical devices
GalvanometersGalvanometers
TechistoscopeTechistoscope
Eye camerasEye cameras
AudiometersAudiometers
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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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.
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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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.
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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Contact methods:
MailQuestionnaires
PersonalInterview
TelephoneInterviews
Online Interview
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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• 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.
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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Measuring Marketing Productivity
Conducting Marketing Research
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
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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Tools to measure Marketing Plan Performance
SalesAnalysis
FinancialAnalysis
Marketing Expense to
Sales Analysis
Market shareAnalysis
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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Sales Analysis
Conducting Marketing Research
Micro-Sales
Analysis
Sales-VarianceAnalysis
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• 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.
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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• 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
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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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.
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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.
. ...India
Ninety Types of demand
Measurement (6X5X3)
Conducting Marketing Research
Forecasting Demand
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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The measures of Market Demand
PotentialMarket
PenetratedMarket
TargetMarket
AvailableMarket
Conducting Marketing Research
Forecasting Demand
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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• 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.
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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• 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.
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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Market Demand Function
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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Market Demand Function
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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• 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.
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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• 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.
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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• 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.
Conducting Marketing Research
04/10/23 12:57 Prof. U.M. Amin,CMS, JMI University, New Delhi
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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.
Conducting Marketing Research