MARKETING MANAGEMENT 12 th edition 4 Conducting Marketing Research and Forecasting Demand Chapter Questions What constitutes good marketing research? What are good metrics for measuring marketing productivity? How can marketers assess their return on investment of marketing expenditures? How can companies more accurately measure and forecast demand? Kotler Keller 4-2 Marketing Research Defined Build-A-Bear Workshop makes the most of interactive entertainment retailing Systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing a company. 4-3 4-4
Karmaloop.com Types of Marketing Research Firms Custom Syndicatedservice Specialtyline 4-5 4-6 The Marketing Research Process Step 1 Define the problem Develop research plan Collect information Analyze information Present findings Make decision Define the problem Specify decision alternatives State research objectives 4-7 4-8
Step 2 Research Approaches Data Sources Research Instruments Research Approach Sampling Plan Observation Focus Group Survey Behavioral Data Contact Methods Experimentation 4-9 4-10 Focus Group in Session Research Instruments Questionnaires Qualitative Measures Mechanical Devices 4-11 4-12
Questionnaire Do s and Don ts Question Types - Dichotomous 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 Allow for other in fixed response questions In arranging this trip, did you contact American Airlines? Yes No 4-13 4-14 Question Types Multiple Choice Question Types Likert Scale With whom are you traveling on this trip? No one Spouse Spouse and children Children only Business associates/friends/relatives An organized tour group Indicate your level of agreement with the following statement: Small airlines generally give better service than large ones. Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree 4-15 4-16
Question Types Semantic Differential Question Types Importance Scale American Airlines Large....Small Experienced..Inexperienced Modern...Old-fashioned Airline food service is to me. Extremely important Very important Somewhat important Not very important Not at all important 4-17 4-18 Question Types Rating Scale American Airlines food service is. Excellent Very good Good Fair Poor Question Types Intention to Buy Scale How likely are you to purchase tickets on American Airlines if in-flight Internet access were available? Definitely buy Probably buy Not sure Probably not buy Definitely not buy 4-19 4-20
Question Types Completely Unstructured What is your opinion of American Airlines? Question Types Word Association What is the first word that comes to your mind when you hear the following? Airline American Travel 4-21 4-22 Question Types Sentence Completion When I choose an airline, the most important consideration in my decision is:. Question Types Story Completion I flew American a few days ago. I noticed that the exterior and interior of the plane had very bright colors. This aroused in me the following thoughts and feelings. Now complete the story. 4-23 4-24
Question Types Picture (Empty Balloons) Question Types Thematic Apperception Test Make up a story that reflects what you think is happening in this picture. 4-25 4-26 Qualitative Measures Mechanical Devices Shadowing Behavior mapping Consumer journey Camera journals Extreme user interviews Storytelling Unfocused groups Galvanometers Tachistoscope Eye cameras Audiometers GPS 4-27 4-28
Sampling Plan Types of Samples Sampling unit: Who is to be surveyed? Sample size: How many people should be surveyed? Sampling procedure: How should the respondents be chosen? Probability Simple random Stratified random Cluster Nonprobability Convenience Judgment Quota 4-29 4-30 Contact Methods Characteristics of Good Marketing Research Mail Questionnaire Telephone Interview Personal Interview Online Interview Scientific method Research creativity Multiple methods Interdependence Value and cost of information Healthy skepticism Ethical marketing 4-31 4-32
Table 4.4 Marketing Metrics External Internal Awareness Awareness of goals Market share Commitment to goals Relative price Active support Number of complaints Resource adequacy Customer satisfaction Staffing levels Distribution Desire to learn Total number of Willingness to change customers Freedom to fail Loyalty Autonomy Table 4.5 Sample Customer- Performance Scorecard Measures % of new customers to average # % of lost customers to average # % of win-back customers to average # % of customers in various levels of satisfaction % of customers who would repurchase % of target market members with brand recall % of customers who say brand is most preferred 4-33 4-34 Tools to Measure Marketing Plan Performance Sales Analysis Sales Analysis Market Share Analysis Expenseto-Sales Analysis Financial Analysis Sales- Variance Analysis Micro- Sales Analysis 4-35 4-36
Market Share Analysis Figure 4.2 The Control-Chart Model Overall market share Served market share Relative market share 4-37 4-38 Figure 4.3 Financial Model of Return on Net Worth Marketing-Profitability Analysis Step 1: Identifying Functional Expenses Step 2: Assigning Functional Expenses to Marketing Entities Step 3: Preparing a Profit-and-Loss Statement for each Marketing Entity 4-39 4-40
Table 4.6 Simplified Profit-and-Loss Statement Table 4.7 Mapping Natural Expenses into Functional Expenses 4-41 4-42 Table 4.8 Bases for Allocating Functional Expenses to Channels Table 4.9 Profit-and-Loss Statements for Channels 4-43 4-44
Distinguishing Types of Costs Direct Traceable common Nontraceable common Gladware uses marketing-mix modeling to test advertising effectiveness 4-45 4-46 The Measures of Market Demand Figure 4.4 Ninety Types of Demand Measurement Potential Market Available Market Target Market Penetrated Market 4-47 4-48
Figure 4.5 Market Demand Functions Figure 4.5 Market Demand Functions 4-49 4-50 Product Penetration Percentage Estimating Current Demand Total market potential Area market potential Market buildup method Multiple-factor index method Brand development index 4-51 4-52
Table 4.10 Calculating Brand Development Index Estimating Future Demand Survey of Buyers Intentions Composite of Sales Force Opinions Expert Opinion Past-Sales Analysis Market-Test Method 4-53 4-54 Purchase Probability Scale Marketing Debate Do you intend to buy an automobile within the next 6 months? 0.00 No 0.20 Slight possibility 0.40 Fair possibility 0.60 Good possibility 0.80 High possibility 1.00 Certain What is the best type of marketing research? Take a position: 1. Marketing research should be quantitative. 2. Marketing research should be qualitative. 4-55 4-56
Marketing Discussion When was the last time you participated in a survey? How helpful do you think was the information you provided? Could the research have been done differently? 4-57