CHAPTER 5: MARKETING RESEARCH

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CHAPTER 5 MARKETING RESEARCH

• Hudson Rogers
• Florida Gulf Coast University

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MARKETING INFORMATION SYSTEM

• Marketing has three main sub-systems
• 1) Internal Accounting System provides
  financial data
• 2) Marketing Intelligence System supplies data
  about what is currently taking place
• 3) Marketing Research System formal information
  gathering and analyzing process

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MARKETING RESEARCH

• Marketing Research is the systematic design of
  data collection, analysis, and reporting of data
  and findings relevant to a specific marketing
  situation facing the company.

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MARKETING RESEARCH PROCESS

• 1) Define Problem research objectives.
•  2) Develop the Research Plan
• 3)  Collect the Information
• 4) Analyze the Information
• 5) Present the Findings

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CHARACTERISTICS OF GOOD MARKETING RESEARCH

• Research may have to overcome many problems chief
  of which are
• 1. Narrow Conception of Marketing Research
  some managers view research as act finding
  without clearly defined problems rather than
  information gathering
• 2. Uneven Caliber of Researchers marketing
  research is not a clerical activity.
• 3. Late and Erroneous Results managers need
  timely results that are accurate, takes time and
  money.
• 4. Intellectual Differences - difference in
  style between managers and researchers can get in
  the way

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OVERCOMING PROBLEMS

• Rely on
• 1) The scientific method - helps objectivity
• 2)  Research Creativity quality of researcher.
• 3)  Use of multiple methods helps reliability
  4)   Interdependence of explicit model and data
  select data gathering and research model best
  suited to analyzing the problem.
• Consider the cost versus the information when
  marking marketing research decisions. This is
  really a trade off.

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TYPES OF RESEARCH

• Exploratory you do not have a precise problem
  formulation or do not know the problem. Mostly
  qualitative, lacks formal design. Should not be
  used for decision-making. Secondary data,
  experts, focus groups
• Conclusive Research These are used for decision
  making. Does not show cause and effect you
  never know all the alternatives.
• Descriptive (describes characteristics of
  thing studies), Case History, statistical methods
  (set objectives, formal design, representative
  sample, quantitative data gathered and analyzed,
  reliability).
• Causal Research

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DATA SOURCES

• Secondary Data
• Focus Groups
• Interviews
• Experts
• Knowledgeable Persons (Psych Tests) to get at
  underlying motivations
• Surveys (Mail, Telephone, E-mail, Mall)
• Simulations
• Case Histories

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DATA COLLECTION

• Sampling
• Non-Probability convenience, quota, snowball,
  judgment, shopping mall.
• Probability Systematic data collection process
  simple random, stratified, cluster, area,
  multi-stage, proportional

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DATA ANALYSIS

• Descriptive Analysis
• Cross Tabulations
• Analysis of Variance (ANOVA)
• T-Test
• Regression Analysis
• Discriminant Analysis

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DEMAND MEASUREMENT

• Potential Market set of consumers who indicate
  a sufficient level of interest to something
  offered in the marketplace
•  Available Market consumers with interest,
  income, and access to a given product.
•  Qualified available Market consumers with
  interest, income, access and qualification to
  purchase a given product

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DEMAND MEASUREMENT (Contd)

• Target Market (served market). Target market
  is the set of consumers that the firm wishes to
  go after with its marketing effort.
•  Penetrated Market set of consumers actually
  buying the firms product.  If not satisfied with
  current sales, a firm can take actions geared
  toward affecting the target market, or the
  potential market.
•  Market Demand number of units that will be
  sold to a defined customer group in geographic
  area for a defined period of time under a defined
  marketing program. To modify demand seek to
  adjust any or all of the defined factors on
  which the total volume is based.

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DEMAND MEASUREMENT

• 1.  Market demand
• 2.  Market forecast
• 3.  Market potential
• 4.  Company demand
• 5. Company sales forecast
• 6.  Company sales potential

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ESTIMATING CURRENT DEMAND

• Estimating current demand
• 1.   Total market potential
• 2.   Area market potential
• a)  Market-buildup method
• b)  Multiple-factor index method
• 3.  Estimating industry sales and market shares
• a)                  a) identifying competitors
  and estimating their sales

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ESTIMATING FUTURE DEMAND

• Estimating Future Demand All forecast are built
  upon three information bases (1) what people say
  they will do (2) what people do, and (3) what
  people have done.

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ESTIMATING FUTURE DEMAND (Contd)

• Five main ways to assess future demand
• 1)  Survey of Buyer Intentions determine what
  buyers are likely to do under certain conditions.
• 2)  Composite of Sales Force Opinion ask sales
  representatives to estimate their future sales
  and sum the individual estimates to arrive at the
  firms forecast
• 3) Expert Opinion/Delphi Method ask the experts
  what they think
• 4)  Past-Sales Analysis use time series
  analysis, statistical demand analysis or
  econometric analysis to predict.
• 5) Market Test Method observing what buyers do
  in a test market using information to project
  to wider market.