Eva Lyn F. Carmona

September 25, 2013

Chapter 4Conducting

Marketing Research and Forecasting Demand

OUTLINE

• 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?

THE MARKETING RESEARCH PROCESSStep 1: Define the Problem

Identify the food.

THE MARKETING RESEARCH PROCESSStep 2: Develop Research Plan

Formulate the RecipeAPPLE PIE RECIPEIngredients4 whole-wheat flour tortillas 1/4 cup peanut butter 1/2 (21-ounce) can apple pie filling 1 tablespoon sugar 2 tablespoons cream cheese, room temperature 1 tablespoon milk 1 tablespoon powdered sugar 1/2 teaspoon pumpkin pie spice DirectionsPreheat the oven to 350 degrees F. Warm the tortillas in a microwave to make them pliable. Spread each tortilla with 1 tablespoon of peanut butter. Divide the apple filling between the 4 tortillas. Fold in sides and then roll up each tortilla. Transfer to an ungreased baking sheet and make a couple of slashes in the top to allow the steam to vent. Sprinkle the tops of tortillas with 1 tablespoon sugar and bake until lightly browned, about 10 minutes. Remove from the oven and put the tortillas on a serving platter.

This is where we develop the most efficient plan for gathering the needed information and what will be the cost.

THE MARKETING RESEARCH PROCESSStep 2: Develop Research Plan

Decisions are based on the following:

1.Data Sources

2.Research Approach• Observation• Ethnographic• Focus Group• Survey• Behavioral Data

3.Experimentation

4.Research Instruments

5.Sampling Plan

6.Contact Methods• Mail Questionnaires• Phone Interview• Personal Interview• Online Interview

Ethnographic

ONLINE SURVEY

THE MARKETING RESEARCH PROCESSStep 3: Collect the Information

Internationally, one of the biggest obstacles to collecting is consistency.

Gather the ingredients

THE MARKETING RESEARCH PROCESSStep 4: Analyze the Information

The researchers now compute averages and measures of dispersion for the major variables and apply some advanced

statistical techniques and decision models.

Combine the ingredients and bake the pie.

THE MARKETING RESEARCH PROCESSStep 5: Present Findings

Present the food.

Researchers present a finding relevant to the major marketing decisions facing management.

THE MARKETING RESEARCH PROCESSStep 6: Make the Decision.

Choose how you want the food to be served.

THE MARKETING RESEARCH PROCESS

1. Define the problem.2.Develop research plan. 3. Collect information.

4. Analyze information. 5. Present findings.6. Make a decision.

MARKETING METRICS

• Marketing metrics is the set of measures that helps to quantify, compare and interpret marketing importance.

Internal• Awareness of goals• Commitment to goals• Active support• Resource adequacy• Staffing levels• Desire to learn• Willingness to change• Freedom to fail• Autonomy

External• Awareness• Market share• Relative price• Number of complaints• Customer satisfaction• Distribution• Total number of

customers• Loyalty

MARKETING MEASUREMENT PATHWAY

MEASURING CURRENT DEMAND• Companies attempt to determine

– Total Market Potential

– Area Market Potential

– Industry Sales

– Market Share

FORECASTING DEMAND• Survey buyer’s intentions

• Solicit sales force’s input

• Gather expert opinions

• Analyze past sales

• Engage in market testing

Eva Lyn F. Carmona

September 25, 2013

Chapter 4Conducting

Marketing Research and Forecasting Demand