Chapter 4

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CONDUCTING
MARKETING RESEARCH AND
FORECASTING DEMAND
Marketing research is the systematic design,
collection, analysis, and reporting of data and
findings relevant to a specific marketing situation
facing the company.
WHAT IS MARKETING RESEARCH?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

4-2
TYPES OF MARKETING RESEARCH FIRMS
Syndicated- Specialty-
Service Line
Custom
(marketing research conducted by
a firm but not for any specific
( in depth analysis on the
client ) requirements )
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THE MARKETING RESEARCH
PROCESS
Define the problem
Develop research plan
Collect information Make

decision
Analyze information
Present findings
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STEP 1: DEFINE THE PROBLEM
▶ Define the problem

▶ Specify decision alternatives
▶ State research objectives

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STEP 2: DEVELOP THE RESEARCH
PLAN
Data Research
Sources Approach
Research Sampling
Instruments Plan
Contact
Methods
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RESEARCH APPROACHES
Observation
Ethnographic
Focus Group
Survey
Behavioral Data
Experimentation
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FOCUS GROUP IN SESSION
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RESEARCH INSTRUMENTS
⮚Questionnaires
⮚Qualitative Measures
⮚Technological Devices
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▶ Avoid negatives ▶ Ensure questions are free
▶ Avoid hypotheticals of bias
▶ Avoid words that could ▶ Make questions simple
be misheard
▶ Make questions specific
▶ Use response bands
▶ Avoid jargon
▶ Use mutually exclusive
categories ▶ Avoid sophisticated
words
▶ Allow for “other” in fixed
response questions ▶ Avoid ambiguous words
QUESTIONNAIRE DO’S AND

DON’TS
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QUESTION TYPES—DICHOTOMOUS
In arranging this trip, did you contact

American Airlines?
⬜ Yes ⬜ No
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With whom are you traveling on this trip?
⬜ No one
⬜ Spouse
⬜ Spouse and children
⬜ Children only
⬜ Business associates/friends/relatives
QUESTION TYPES—MULTIPLE
⬜ An organized tour group
CHOICE
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QUESTION TYPES—LIKERT SCALE
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
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QUESTION TYPES—SEMANTIC DIFFERENTIAL
American Airlines
Large ………………………………...…….Small
Experienced………………….….Inexperienced
Modern……………………….…..Old-fashioned
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QUESTION TYPES—IMPORTANCE SCALE
Airline food service is _____ to me.

⬜ Extremely important
⬜ Very important
⬜ Somewhat important
⬜ Not very important
⬜ Not at all important
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QUESTION TYPES—RATING SCALE
American Airlines’ food service is _____.

⬜ Excellent
⬜ Very good
⬜ Good
⬜ Fair
⬜ Poor
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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
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QUESTION TYPES—COMPLETELY
UNSTRUCTURED
What is your opinion of American Airlines?
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QUESTION TYPES—WORD ASSOCIATION
What is the first word that comes to your mind

when you hear the following?
Airline ________________________
American _____________________
Travel ________________________
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QUESTION TYPES—
SENTENCE COMPLETION
When I choose an airline, the most important

consideration in my decision is:
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
__________________.
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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.
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
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QUESTION TYPES—PICTURE
(EMPTY BALLOONS)
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QUESTION TYPES—THEMATIC
APPERCEPTION TEST
Make up a story that reflects what you think is
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happening in this picture.
Word Association
Projective Techniques
Visualization
Brand Personification
QUALITATIVE MEASURES Laddering

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▶ Qualitative market research is often aimed at
increasing understanding of consumers’ thoughts and
feelings toward brands, products, concepts,
advertising, social issues and other important topics.
These techniques allow researchers to tap into
consumers’ deep motivations, beliefs, attitudes and
values. This is important because psychology has told
us for a long time that much of what drives behavior
can be emotional and irrational in nature
PROJECTIVE TECHNIQUES

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▶ Laddering is a qualitative marketing research
technique, which seeks to understand why
people buy and use products and services.
LADDERING

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Galvanometers
Tachistoscope
Eye cameras
Audiometers
TECHNOLOGICAL DEVICES
GPS
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SAMPLING PLAN
▶ Sampling unit: Who is to be surveyed?

▶ Sample size: How many people should be surveyed?
▶ Sampling procedure: How should the respondents be chosen?

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Probability Samples
▶ Simple random
▶ Stratified random
Nonprobability Samples
▶ Convenience
▶ Judgment
▶ Quota
▶ Cluster
TYPES OF SAMPLES
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Mail
Questionnaire
Telephone
Interview
Personal
Interview
Online
Interview
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A marketing decision support system is a coordinated
collection of data, systems, tools, and techniques with
supporting hardware and software by which an
organization gathers and interprets relevant information
from business and environment and turns it into a basis for
marketing action.
WHAT IS A
MARKETING DECISION SUPPORT
SYSTEM (MDSS)?
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✔ Multiple methods
✔ Scientific method
✔ Research creativity
✔ Interdependence
✔ Value and cost of information
✔ Healthy skepticism
✔ Ethical marketing
CHARACTERISTICS OF
GOOD MARKETING RESEARCH
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Marketing metrics is the set of
measures that helps marketers
quantify, compare, and
interpret marketing
performance.
WHAT IS MARKETING METRICS?

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Marketing-mix models analyze data from a
variety of sources, such as retailer scanner data,
company shipment data, pricing, media, and
promotion spending data, to understand more
precisely the effects of specific marketing
activities.
WHAT IS MARKETING-MIX
MODELING?
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▶ A customer-performance scorecard records how well the
company is doing year after year on customer-based
measures.
▶ A stakeholder-performance scorecard tracks the
satisfaction of various constituencies who have a critical
interest in and impact on the company’s performance
including employees, suppliers, banks, distributors, retailers,
and stockholders.
MARKETING DASHBOARDS

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COMMON MEASUREMENT PATHS
Customer Metrics Pathway
Unit Metrics Pathway
Cash-flow Metrics Pathway
Brand Metrics Pathway
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FIGURE 4.2 MARKETING
MEASUREMENT PATHWAYS
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THE MEASURES OF MARKET DEMAND
Potential Available
Market Market
Penetrat
Target
ed
Market
Market
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▶ Survey of Buyers’ Intentions
▶ Composite of Sales Force Opinions
▶ Expert Opinion
▶ Past-Sales Analysis
▶ Market-Test Method
ESTIMATING FUTURE DEMAND

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WHAT IS MARKETING RESEARCH?

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Define the problem

Develop research plan

Collect information Make

▶ Define the problem

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

QUESTIONNAIRE DO’S AND

In arranging this trip, did you contact

Indicate your level of agreement with the

Airline food service is _____ to me.

American Airlines’ food service is _____.

How likely are you to purchase tickets on

What is your opinion of American Airlines?

What is the first word that comes to your mind

When I choose an airline, the most important

“I flew American a few days ago. I noticed that

QUALITATIVE MEASURES Laddering

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

▶ Sampling unit: Who is to be surveyed?

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

WHAT IS MARKETING METRICS?

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Customer Metrics Pathway

Unit Metrics Pathway

Cash-flow Metrics Pathway

Brand Metrics Pathway

ESTIMATING FUTURE DEMAND

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

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