4

Conducting
Marketing Research and
Forecasting Demand

Marketing Management
 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
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 What is Marketing Research?

Marketing research is the systematic

design, collection, analysis, and
reporting of data and findings relevant
to a specific marketing situation facing
the company.

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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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 Secondary data
• May provide answers – or some
background
• Quick to gather, cheap
• Marketing research companies e.g. AC
Neilsen
• Web search engines (may’ve too much
info)
e.g. Federal Bureau of Statistics
(statpak.gov.pk)
WDI (World Development Indicators)
Economic survey of Pakistan
 Research Approaches
Observation
Observation

Ethnographic
Ethnographic

Focus
Focus Group
Group

Survey
Survey

Behavioral
Behavioral Data
Data

Experimentation
Experimentation
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 Primary Data

Research Approaches
1.Observational research
Can obtain info people are unable or
unwilling to provide
Mystery shoppers

Limitations: Cant know people’s feelings

etc.
 Primary Data
Research Approaches
2. Ethnographic research involves sending
trained observers to watch and interact
with consumers in their natural
environment
e.g. Nokia’s 1200 series for rural (multiple
phone books)
Limitation: It can’t grasp what people can’t
imagine. Henry Ford’s quote: If I’d
asked people what they wanted, they
would’ve said faster horses.
 Primary Data

Research Approaches
3. Survey research
Most widely used
Limitations: People cant answer what they
cant recall, may answer for the sake of it
etc.
4. Experimental research is best for
gathering causal information—cause-and-
effect relationships
 Focus Group in Session

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• Focus group (6-10 people with a
moderator)
• Online marketing research: Fast and
low-cost; especially good for
quantitative; also used for qualitative as
online focus groups
Multiple ways including real time
 Research Instruments

Questionnaires
Qualitative Measures
Technological Devices

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 Questionnaire Do’s and Don’ts
• Ensure questions are • Avoid negatives
free of bias • Avoid hypotheticals
• Make questions simple • Avoid words that could
• Make questions specific be misheard
• Avoid jargon • Use response bands
• Avoid sophisticated • Use mutually exclusive
words categories
• Avoid ambiguous words • Allow for “other” in fixed
response questions

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 Question Types—Dichotomous

In arranging this trip, did you contact

American Airlines?
 Yes  No

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 Question Types—Multiple Choice
With whom are you traveling on this trip?
 No one
 Spouse
 Spouse and children
 Children only
 Business associates/friends/relatives
 An organized tour group

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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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 Qualitative Measures

Word
Word Association
Association

Projective
Projective Techniques
Techniques

Visualization
Visualization

Brand
Brand Personification
Personification

Laddering
Laddering

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 Technological Devices

Galvanometers

Tachistoscope

Eye cameras

Audiometers

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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 Table 4.2 Types of Samples

Probability Samples Nonprobability Samples

• Simple random • Convenience
• Stratified random • Judgment
• Cluster • Quota

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 Contact Methods

Mail Questionnaire

Telephone
Interview

Personal
Interview

Online
Interview
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 Pros and Cons of Online Research

Advantages Disadvantages
• Inexpensive • Small samples
• Fast • Skewed samples
• Accuracy of data, • Technological
even for sensitive problems
questions • Inconsistencies
• Versatility

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