1. TOP 10 Learning Concepts
Ch 4: Conducting Marketing Research And
Forecasting Demand
Mirasol Capala
September 2011
http://solcapala.blogspot.com/
2. Concept Outline
1. Effective Marketing Research System for Large and Small companies
2. Effective Marketing Research Follows the 6 Marketing Research Steps
3. Choosing the Research Approaches for your Marketing Research
4. Different Types of Research Instruments
5. Sampling Plan
6. Contact Methods
7. Forecasting and Demand Measurement- Why Study Demand?
8. Types of Market Demands
9. Company Demand
10. Estimating Current and Future Demand
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3. Effective Marketing Research System for
Large Companies
Custom marketing Syndicated-service Specialty-line marketing
research firm research firm research firm
Firms that gather consumer and trade information, which they sell for a fee.
Zpryme, a leading global research
firm, today announced its latest
market research practice
launch, China Insights, service
focused on the China consumer and
business marketplace.
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4. Example of Marketing Research for Large Companies
Syndicated Research
•Streaming video is an 97% of smart phones
indication of the future should come touch
of consumer screens by 2016
entertainment
•Research used by
Microsoft (MSFT)
and Sony(SNE)- reason
why they focus on the
game console.
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5. Effective Marketing Research System for
Small Companies
Crowdcasting Using the Internet Checking out rivals
Research conducted in creative and affordable ways.
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6. Example of Marketing Research for Small Companies
Using the Internet
•Small companies use Twitter to
create niche markets
•Twitter is a great place to look at
what people are discussing,
buying, suggesting and current Use the Top
overall trends. 50 of All
Time,
Tweetstats
to see
fresh,
relevant and
current
trends for
free.
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7. Effective Marketing Research Follows the 6 Marketing
Research Steps
•Firms should set specific research objectives.
•Firms must decide whether to collect their own
data or use data that already exist.
•They must also decide which research approach,
which research instruments to use.
•They must decide on a sampling plan and
contact methods.
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8. Example of Company following the 6 Steps of Marketing
Research Process
Step 1: P&G wanted to enter the Chinese market with a sound
strategy after Chinese experts warned the company that
nobody in China could afford Head & Shoulders.
Step 2: P&G developed a Step 5: The company's market research
research plan to know the revealed that though there were several
common problem among shampoo marketers in China, there was no
Chinese consumers. shampoo that could remove dandruff from
the scalp. Dandruff was a common hair
problem among the Chinese consumers.
Step 3: P&G collected
information through online
research, surveys and telephone
Step 6: P&G hence launched Head &
interviews.
Shoulders, a brand that was known
for its anti-dandruff properties.
Step 4: They have analyze the Within three years of its launch,
information and did several Head & Shoulders became China's
analysis to test the strength of bestselling shampoo, even though it
the conclusions. was priced three times higher than
the local brands.
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9. Choosing the Research Approaches for your Marketing
Research
Observation Behavioural Data Experiments
Focus Group Discussion Surveys
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10. Example of Use of Different Marketing Research
Approaches
Focus Group Discussion Surveys
Findings: Dinner party guests Survey Reveals: Online
were bringing their host Coupon Sites Remain Top
flowers instead of chocolate, in Consumer Choice for Deals
a nod to current concerns over
68 % of daily deal users
obesity & health. reported using daily deal sites
for impulse rather than
planned purchases.
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11. Different Types of Research Instruments
Qualitative Research
Questionnaire
Technological Devices
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12. Example of Use of Different Research Instruments
•Mapping Bush and Kerry to well-known product and
Qualitative Research corporate brands reveals how each candidate is viewed
and suggests brand strategies each can employ to
potentially sway the critical undecided voter group.
•Bush is associated with the positive attributes of
established mainstay brands like Bud Light, IBM and
Ford ("reliable", "humble", "heritage", "solid"); Kerry is
associated with the positive attributes of premium
brands like Heineken, Apple, and BMW ("high-quality",
"high-performance", "hip", "young")
•To win undecided voters, Kerry must prove that he has
substance, that he's not all flash and marketing. Bush,
on the other hand, must focus on emphasizing that his
strengths – stability and reliability – are more important
than being ultra-modern or progressive
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13. Sampling Plan
Sampling Size
How many people should we survey?
Sampling Unit
Who should we survey?
Sampling Procedure
How should we choose the
respondents?
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14. Example of Sampling Plan
When times are tough, Pinoys commute
Sampling Unit: The survey focused on the travel
habits of commuters on the Metro Rail Transit (MRT)
and Light Rail Transit (LRT) systems. What this
means
Sample Size: Nielsen conducted interviews with 500 for advertisers?
MRT3 passengers, 250 LRT1 passengers and 250 LRT2
passengers in February 2009.
Sample Procedure: The survey used random With Nielsen's survey
sampling methods and has a 5 percent margin of error. findings proving that
consumers spend more time
outside the home, it is a go
signal for more advertisers to
invest in "out-of-home"
advertisements.
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15. Contact Methods
Mail Questionnaire Personal Interview
Telephone Interview
Online Interview
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16. Example of Contact Methods in Conducting Marketing
Research
Personal Interview
Ground coffee review
CHOICE’s expert tasters find some of the
best brews at very affordable prices.
Tester brews each coffee in the same way using
a Breville ESP8B Café Roma espresso machine.
Three experts rate the coffees, giving them
scores for the colour and thickness of the crema,
aroma, flavour, mouthfeel and aftertaste.
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17. Forecasting and Demand Measurement
Why Study Demand?
FINANCE OPERATIONS PURCHASING HR MARKETING
The cash that To establish To get the To get the To prepare
is required for capacity and right amount right number sales forecasts
operations output levels of supplies of workers
and
investments
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18. Example of Wrong Sales Forecast
Xerox commissioned three independent
consultants to explore the opportunity for a
copier. Two consultants advised against
the launch and the third consultant
forecast sales of 8,000 units over 6 years.
Xerox chose to ignore the
recommendations of the consultants,
launched the copier and installed 80,000
machines within just 3 years.
The market research had underestimated
demand as respondents were unable to
provide their views on a new product that
they had never experienced.
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19. Types of Market Demands
Potential Available Penetrated
Market Market Target Market
Market
Consumers have
Consumers have interest, income
Qualified
income, access to and access to Sets of customers
available
product product who are buying
market the
company company’s
decides to products
pursue
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20. Example of Market Research for Different Market
Demands
Potential Market
A researcher at 3M was eager to create the world's best glue, but actually
ended up creating one of the worst glues ever – one that didn't stick – which
nevertheless ended up as one of 3M's most successful products: that of the
ubiquitous Post-it notes.
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21. Company Demand
It is the company’s estimated share of market demand at alternative
levels of company marketing effort at a given time period.
Sales Forecast
Is the expected level of company sales based on a
chosen marketing plan and an assumed marketing
environment.
Sales Potential
Is the sales limit approached by company demand as
company marketing effort increases relative to that
of competitors.
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22. Example of Sales Forecast
Christmas Sales Forecast Gets More Grim
Buyers expected to stay frugal through
holiday season
Of those consumers Only 35.6
who normally give gift percent said they
cards but won't this would give gifts
year, 64.4 % will give instead,
money instead
Of those consumers
Seventy percent of consumers who will give fewer
said that they stayed within gift cards, over a
their budgets, an indicator of third say that there
this year's disciplined shopper. is a chance they
could give nothing
at all.
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23. Example of Sales Potential
Retail sales rise 3.6% during holidays Romance novels embrace
Christmas spirit and sales
potential
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24. Estimating Current Demand
Practical methods for estimating current market demand
Total Market Potential Area Market Potential
Maximum amount of sales that might be Maximum amount of sales that might be
available to all firms in an industry during a available in different cities, states, and nations.
period of time.
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25. Example of Estimating Current Demand
Baby Car Seat Manufacturer
Understand the total market potential
of infant car seats in both units and Pesos.
If two million babies are expected in a year, the
market for infant seats is 2m units.
However some of the households may be two car
households and decide to buy two seats. If 50% of
the households buy two seats, then the market is
really 3m units.
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26. Estimating Future Demand
All forecasts are built on one of 3 information bases: what people say, what people do,
or what people have done. Good forecasting is a key factor in success of the
companies.
Survey of Buyer’s Past- Sales Analysis Expert Opinion
Intention Firms can develop sales Obtain forecasts from
Useful in estimating demand forecasts on the basis of past experts, including dealers,
for industrial products, sales. distributors, suppliers,
consumer durables and new marketing consultants, and
products. trade associations.
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27. Example of Estimating Future Demand Survey of
Buyer’s Intention
Farmers' intentions regarding fertilizer
usage
In the fertilizer business it is possible to assess farmers'
intentions through retailers. Many retailers are located
in villages and are in daily touch with farmers.
Being close to the scene of action, they have a good
assessment of produce price trends, available
purchasing power, likely crop shifts, etc.
It should be possible to ascertain from each retailer
directly or through a large sample, the likely fertilizer
demand. Through enquiry from their own outlets,
marketing organisations can produce a fairly accurate
sales forecast.
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28. TOP 10 Learning Concepts
Ch 4: Conducting Marketing Research And
Forecasting Demand
Mirasol Capala
September 2011
http://solcapala.blogspot.com/