Marketing Research and Sales Forecasting

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• Chapter 8
• Marketing Research and Sales Forecasting

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Objectives

• Describe the development of the marketing
  research function and its major activities.
• List and explain the steps in the marketing
  research process
• Differentiate between the types and sources of
  primary and secondary data.
• Explain the different sampling techniques used by
  marketing researchers.
• Identify the methods by which marketing
  researchers collect primary data.

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Objectives

• Discuss the challenges of conducting marketing
  research in global markets.
• Outline important uses of computer technology and
  marketing research.
• Identify the major types of forecasting methods
  and explain the steps in the forecasting process.

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Marketing Research

• Marketing research the process of collecting and
  using information for marketing decision-making.

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Marketing ResearchSuppliers Classifications

• Syndicated Services
• An organization that regularly provides a
  standardized set of data to all customers.
• Full-Service Research Suppliers
• An organization that contracts with clients to
  conduct complete marketing research projects.
• Limited-Service Research Suppliers
• A marketing research firm that specializes in a
  limited number of activities such as conducting
  field interviews or performing data processing.

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• Mediamark Research offers comprehensive
  demographic, lifestyle, product usage and
  exposure to all forms of advertising media
  collected from a single sample.
• Source Mediamark Web Site.

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The Marketing Research Process

• A well-defined problem
• Permits the researcher to focus on securing the
  exact information needed for the solution and
  increases the speed and accuracy of the research
  process.

Perceived Information Need

• Defining the Problem

Feedback on Research and Marketing Decision
Effectiveness
Marketing Decision Based on Information Collected
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The Marketing Research Process

• Exploratory Research
• Seeks to discover the cause of a specific problem
  by discussing the problem with informed sources
  both within and outside the firm.
• Can include evaluation of company records.

Perceived Information Need

• Defining the Problem

• Conduct Exploratory Research

Feedback on Research and Marketing Decision
Effectiveness
Marketing Decision Based on Information Collected
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The Marketing Research Process
Formulate a Hypothesis A tentative explanation
for some specific event. A statement about the
relationship among variables. It sets the stage
for more in-depth research.
Perceived Information Need

• Defining the Problem

• Conduct Exploratory Research

• Formulating a Hypothesis

Feedback on Research and Marketing Decision
Effectiveness
Marketing Decision Based on Information Collected
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The Marketing Research Process

• Create a Research Design
• A master plan or model for conducting marketing
  research.
• Marketers must be sure that the study will
  measure what they intend to measure.
• Important design consideration is the selection
  of respondents.

Perceived Information Need

• Defining the Problem

• Conduct Exploratory Research

• Formulating a Hypothesis

Feedback on Research and Marketing Decision
Effectiveness

• Creating a Research Design

Marketing Decision Based on Information Collected
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Sampling TechniquesSampling is the process of
selecting survey respondents or research
participants. Samples can be classified as

• Probability Sample is one that gives every member
  of the population a chance of being selected.
  Types of probability samples include simple
  random samples, stratified samples, and cluster
  samples.
• or

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Sampling TechniquesSampling is the process of
selecting survey respondents or research
participants. Samples can be classified as

• Non-probability Sample is an arbitrary grouping
  that does not permit the use of standard
  statistical tests. Types of non-probability
  samples are convenience samples and quota samples.

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Primary Research Methods Slide 1 of 2

• Observation Method. Researchers view the overt
  actions of the subjects.
• Survey Method. Ask questions to get information
  on attitudes, motives, and opinions. Researchers
  can use either interviews or questionnaires.
• Telephone Interviews.
• A quick and inexpensive method for obtaining a
  small quantity of relatively impersonal
  information.
• Personal Interviews.
• The Best means for obtaining detailed information
  about consumers
• Focus Groups.
• Brings together 8 to 12 individuals in one
  location to discuss a subject of interest.
• Usually encourages a general discussion of a
  predetermined topic.
• Mail Surveys.
• Cost-effective alternative and also provide
  anonymity.
• Help markets track consumer attitudes through
  ongoing research.
• Response rates are typically much lower than for
  personal interviews.
• Usually takes a long time to conduct.
• Questionnaire cannot answer unanticipated
  questions that occur.
• Researchers must worry about bias.

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Primary Research Methods Slide 2 of 2

• Experimental Method. Least-used method for
  collecting primary data. Most common use of this
  method by marketers is test-marketing.
• Three Problems with test-marketing
• Expensive.
• Competitors quickly learn about the new product.
• Some products are not well-suited to
  test-marketing.

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The Marketing Decision Support System

• A marketing decision support system (MDSS)
  consists of software that helps users quickly
  obtain and apply information in a way that
  supports marketing decisions.
• MDSS can create simulations or models to
  illustrate the likely results of changes in
  marketing strategies or market conditions.

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Forecasting

• Basic to the marketing plan is forecasting.
• The two methods of forecast are
• Qualitative - these techniques rely on subjective
  data that repots opinions rather than exact
  historical data.
• Quantitative - this method uses statistical
  computations such as trend extensions, computer
  simulations, and economic models.