Marketing Research

Marketing Research
Used to identify and
define market
opportunities and
problems
Generate, refine, and
evaluate marketing
performance

Formulate strategies
 Definition of Marketing
Research
Marketing research is the systematic and objective

 identification
 collection
 analysis
 Dissemination - the opening of a subject to widespread discussion
and debate or public exposure.
 and use of information

for the purpose of improving decision making related to the

 identification and
 solution of problems and opportunities in marketing.
The Marketing Research Process

Defining
Defining the
the Developing
problem
problem and
and Developing Collect
Collect the
the
research the
the research
research information
research plan
plan information
objectives
objectives

Present
Present the
the Analyze
Analyze the
the
findings
findings information
information
 Defining the Problem & Research
Objectives
••Sheds
Shedslight
lighton
onproblem
problem--
Exploratory suggest
suggestsolutions
solutionsor
or
Research new
newideas.
ideas.

Descriptive
Research ••Ascertain
Ascertainmagnitudes.
magnitudes.

••Test
Testcause-
cause-and-effect
and-effect
Causal relationships.
relationships.
Research ••Tests
Testshypotheses
hypothesesaboutaboutcause-
cause-
and-effect
and-effectrelationships.
relationships.
Like
Likemoney
moneywillwillbring
bringlodzz
lodzzffgifts
gifts
 Research Approaches

Observational
Observational

Focus-group
Focus-group

Survey
Survey

Behavioral
Behavioral

Experimental
Experimental
 Primary Data
• Data freshly gathered for a specific
purpose or for a specific research project
 Secondary-Data Sources
• Data that are collected for another purpose and
already exist somewhere
• Internal Sources
• Government Publications
• Periodicals and Books
• Commercial Data
• On-Line
– Associations
– Business Information
 Question types
• Dichotomous
– Yes or No, Male / female, married/unmarried
• Multiple choice
– Which of the following brands do you prefer?
• A. Polo B. Tommy Hilfiger
• C. Gap D. Benetton

• Likert scale
– I like the design of this saree
– Strongly disagree Moderately disagree Neither agree or disagree moderately agree strongly agree
– 1_______________2________________3______________4________________5
• Semantic differential
– Please rate our services in the following scale.
– Satisfied 1______2______3_______4_______5 Not satisfied
• Importance scale
• After sales service is
• Extremely important very important somewhat important not very important not at all important
• 1------------------------------2-----------------------------3--------------------------4-----------------------5
• Rating scale
• Your after sales service is
• Excellent Very good Good Fair Poor
• 1___________2___________3__________4__________5
 Sampling Methods
• Probability
– Simple random sampling
– Sratified random sampling
– Area sampling
• Non probability
– Convenience sampling
– Judgemental sampling
– Quota sampling
Market Demand
Marketing Management
IMT Dubai
Measuring current market demand-
Terms
• Total market demand
– the volume of a product or service that would be
bought by a defined customer group in a defined
geographic area in a defined time period in a defined
marketing environment under a defined marketing
program.
• Market potential
– The upper limit of market demand
 Approaches
• Common method
– Total market demand=number of buyers in the market X quantity
purchased by an average buyer per year X price of an average unit
– Eg. If there are 100,000 buyers of recorded CD each year, the
average buyer buys 6 disks a year and the average price is AED 5,
then the total market demand for disks is AED 3.0 million.
• Chain ratio method
– Multiplying a base number by a chain of adjusting percentages
– Eg. Sony wants to measure demand for its new line of premium
digital cameras, which store a large no of hi quality digital images
which are later transferred to PC to be edited and printed. Sony’s
new digital cameras are priced higher than previous digital models
and ordinary film cameras. So, Sony first plans to target only serious
amateur photographers, who have computers and enough money to
afford the new cameras.
– Total number of US households X the percentage of US households
containing one or more serious amateur photographers X the
percentage of these households owning a personal computer X the
percentage of PC-owning households with enough disposable
income to buy Sony’s new digital camera
 Area market demand

Industry No of No of mines Potential no of Unit market Market

employees instruments per potential potential
class
Gold Under 10 40 1 40
mining 10-50 20 2 40
Over 50 10 3 30
110 $110,000
Silver Under 10 80 1 80
mining 10-50 50 2 100
Over 50 20 4 80
260 $260,000
$370,000
 Forecasting
– Estimating current demand will be sufficient when there is steady
sales conditions, growth rates, stable competitive situations.
– Most marketers do not have stable total and company demand
– So forecasting is important
– Art of estimating future demand by anticipating what buyers are
likely to do under a given set of future conditions.
– Three stage procedure
• Environmental forecast
– Inflation, unemployment, interest rate, consumer spending and saving,
business investment, govt expenditures, other environmental factors
• Industry forecast
– Projected per capita income would influence the industry sales
• Company sales forecast
– Assuming company will win certain percentage of the industry forecast
 Company sales forecasting
• What people say
– Surveys of buyers’ intentions
– Composite of sales force opinions
– Expert opinion
• What people do
– Test market
• What people have done
– Past sales analysis
• Survey of buyers’ intentions
– Purchase probability scale
– Do you intend to buy an automobile within the next six months?
0 0.2 0.4 0.6 0.8 1.0
No chance slight possibility fair possibility good possibility high certain
possibility

• Composite of salesforce opinions

– Company asks its salespeople to estimate sales by product for their
individual territories and then added up to arrive overall sales forecast
– Companies normally do adjustments in salespeople estimates.
– May be pessimistic or optimistic or may be unaware of environment or
may understate to get low sales target
– It may also motivate the sales people to focus toward achieving their
targets
• Expert opinion
– Obtain forecasts from experts like dealers, distributors, suppliers,
marketing consultants and trade associations
– Dealer estimates are like salesforce estimates, may be biased.
– Buy from well known consulting firms
– Inviting a group of experts to discuss and arrive at a figure
– Request the experts to give their estimates individually and an analyst
combines them into a single estimate
– Further rounds of estimating and refining is done (Delphi method)
• Test marketing
– When other methods are not reliable
– Introduce the product in restricted area as a test and see the response
as the basis
• Past sales analysis
– Using past sales data with the data of other factors
– Multiple regression
– Sales = price + income + marketing expenditures
 Practice
• A brewery is interested to in estimating
the market potential for its new light beer.
Apply chain ratio method.
 Practice
• Seagate is introducing a new portable
memory device which has the capacity
100GB, very small size and can only be
used in laptops, priced at $100. Develop
the formula for estimating the market
demand for Seagate.
• Samsung wants to ascertain the demand
for its range of home appliances in the
Indian market, like refrigerators, washing
machines, microwave ovens, TVs, & cell
phones before going for production. These
products are positioned at the urban
professionals in middle and higher income
groups. Develop the formula to estimate
market potential for above mentioned
products separately.
A marketing information system (MIS) consists of
people, equipment, and procedures to gather, sort,
analyze, evaluate, and distribute needed, timely, and
accurate information to marketing decision makers.

A marketing intelligence system is a set of

procedures and sources used by managers to obtain
everyday information about developments in the
marketing environment.
http://www.scribd.com/doc/16604559/Marketing-Resear
The
The Marketing
Marketing Information
Information System
System
Marketing Managers
Marketing Information System

Distributing Assessing Information

Information Needs
Developing Information
Marketing Decisions and

Information Internal
Analysis Data
Communications

Marketing Marketing
Research Intelligence

Marketing
MarketingEnvironment
Environment
 Ninety Types of Demand
Measurement (6 x 5 x 3)
World
Space U.S.A.
level Region
Territory
Customer
All sales
Industry sales
Product Company sales
level Product line sales
Product form sales
Product item sales
Short run Medium run Long run

Time level
 Demand

Company
Demand

Market
Demand
 Estimating Current Demand
• Total Market Potential
• Area Market Potential
• Industry Sales
• Market Share
 Estimating Future Demand
• Survey of Buyers’ Intentions
• Composite of Sales Force Opinion
• Expert Opinion
• Past Sales Analysis – time series
• Market Test Method