MARKETING ENVIRONMENT, DEMAND

FORECASTING AND CONDUCTING

MARKETING RESEARCH
What managers want to know
and marketing managers have to know?
 Are my customers satisfied?
 Who are my competitors?
 Target audience?
 Why isn’t my product sold?
 How should I set up price for my product / service?
 Where should I sell my product
 How should I communicate the benefits of my offering
Marketing research problem – Air purifiers

Management decision Marketing research problems

 Should a Air purifiers be introduced  To determine consumer preferences

into the market? and purchase intentions for the
proposed new product.
 Should the advertising campaign be
changed?  To determine the effectiveness of the
 What should be the price of Air current advertising campaign.
purifiers?
 To determine the price elasticity of
demand and the impact on sales and
profits of various levels of prices.
4
Business Intelligence
Business Intelligence

Financial Management Marketing Accounting ....................

Intelligence Intelligence Intelligence Intelligence

Marketing Customer Relationship

Research Marketing/ Database Marketing

Primary Sources Secondary Sources Standardized Sources

Provide data on

Prospects Customers Competition Products/Markets

Marketing Information System consists of
People
Procedures

Equipment
to collect information about
Customers

External Factors
Competitors
Relies on
Internal Records

Marketing Research

Insight

Marketing Intelligence
Internal Records
Order-to-Payment Cycle

Databases / Data Mining

Sales Information Systems

 Marketing Intelligence
News and Trade Publications

Meet with customers,

suppliers, distributors,
and other managers
Monitor social
media sites
Improving Marketing Intelligence
Sales Force
Establish industry network

External Experts

Customer Advisory Panel

Marketing Intelligence & the Internet

Independent Online Forums

Distributor or sales agents feedback sites

Customer review and expert opinion

sites

Customer complaint sites

Using Marketing Intelligence
Share Information

Quickly
13
Business Intelligence
Business Intelligence

Financial Management Marketing Accounting ....................

Intelligence Intelligence Intelligence Intelligence

Marketing Customer Relationship

Research Marketing/ Database Marketing

Primary Sources Secondary Sources Standardized Sources

Provide data on

Prospects Customers Competition Products/Markets

 Business Intelligence – Marketing research
and CRM analytics
14

Business Intelligence

Financial Management Marketing Accounting ....................

Intelligence Intelligence Intelligence Intelligence

Marketing Customer Relationship

Research Marketing/ Database Marketing

Customer churn
Primary Sources Secondary Sources Standardized Sources Cross sell
Need Identification
Provide data on Life time value
Customer Satisfaction
Segmentation
Service Quality
Complaint resolution
Prospects Customers Competition Products/Markets
Brand positioning
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Domains of Marketing Intelligence
Identify and define marketing opportunity and
problem
 Problem
 SBI:Banker to every Indian
 Minimal base of HNI’s do personal banking with SBI

 Perceived Service quality of SBI amongst HNI’s very low

 Marketing response
 Can they offer premium services?
 Will it contradict its Brand Image?

 Service redesign
Generate refine and evaluate marketing actions

 Effectiveness of Marketing campaigns ? Telephone campaigns / Online

promotional campaigns
 Changes in pricing – Should banks offer rebates or charge fees for
online transactions?
 Addition / deletion of alternate channels of banking
 Changes in Physical Branches / Showrooms – Nexa / Maruti / SBI
Exclusif Branches
 Identifying homogenous clusters of consumers
Monitor Marketing Performance
 Brand Tracking studies
 Customer satisfaction studies
 Service Quality studies
Improve understanding of marketing as a process

 Understanding consumer journeys

 Onlinehome loan experience
 Consumer reaction to humanoids / Chatbots
Let us understand the step by step process of
marketing research
The Marketing Research system
Marketing research is the systematic design, collection, analysis, and
reporting of data and findings relevant to a specific marketing
situation facing the company.
Types of Marketing Research Firms

Syndicated- Specialty-
Custom
service line
The Marketing Research Process
Define the problem

Develop research plan

Collect information Make

decision
Analyze information

Present findings
 Define the Problem: Research Question
24

 Specify decision alternatives

 State research objectives
 India Bulls Ad

Sample questions to determine if a specific

advertisement should be run:

• Will the advertisement be noticed?

• Will it be interpreted accurately?

• Will it influence attitudes?

Step 2: Develop the Research Plan

Data Research
Sources Approach

Research Sampling
Instruments Plan

Contact
Methods
Research Approaches
Observation

Ethnographic

Focus Group

Survey

Behavioral Data

Experimentation
Research approach: Types of market
research

By objective By data source By methodology

 Exploratory  Primary  Quantitative

 Descriptive  Secondary  Qualitative
 Causal
Market research by objective
 Exploratory
 Takes place where there is little or no prior knowledge of a phenomenon
 This type of research attempts to gain some familiarity with the
appropriate concepts and looks for patterns or ideas without any
preconceived ideas or explanation
 Example – Intelligence, market orientation
 Descriptive research
focusing upon the issue of what is happening, or how much of it has
happened,
rather than why it is happening
Example – Introduction of organisational change, what is historic sales
trend
 Explanatory research
 This type of research is involved in explaining why something happens, and
assessing causal relationships between variables
Salesperson Job
training Performance
Market research by data source
Primary data is data we collect ourselves and Secondary data is that
collected by others.
Secondary analysis is done on secondary data.
In other words, someone else gathered the data – for their own purposes –
and then we analyse it for our own purposes.
Market research by methodology

Quantitative Qualitative

 Involves numbers  Involves understanding words

 Objectivity and meanings
 Statistical tools  Subjectivity
 Analysis of words and
quotation marks
Focus Group in Session
Research Instruments

Questionnaires
Qualitative Measures
Technological Devices
Designing a questionnaire
 Sample questionnaire
 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?
Types of Samples
Probability Samples Nonprobability Samples
 Simple random  Convenience

 Stratified random  Judgment

 Cluster  Quota
Contact Methods

Mail Questionnaire

Telephone
Interview

Personal
Interview

Online
Interview
Pros and Cons of Online Research

Advantages Disadvantages
 Inexpensive  Small samples

 Fast  Skewed samples

 Accuracy of data, even for  Technological problems

sensitive questions  Inconsistencies
 Versatility
What is Marketing Metrics?
Marketing metrics is the set of measures that helps marketers
quantify, compare, and interpret marketing performance.
Marketing Metrics
External
 Awareness
 Market share
 Relative price
 Number of complaints
 Customer satisfaction
 Distribution
 Total number of customers
 Loyalty
Internal
 Awareness of goals
 Commitment to goals
 Active support
 Resource adequacy
 Staffing levels
 Desire to learn
 Willingness to change
 Freedom to fail
 Autonomy
Sample Customer-Performance Scorecard Measures

 % of new customers to average #

 % of lost customers to average #
 % of win-back customers to average #
 % of customers in various levels of satisfaction
 % of customers who would repurchase
 % of target market members with brand recall
 % of customers who say brand is most preferred
Secondary Research: Forecasting and Demand Measurement

Market
- Size
- Growth
- Profit potential
Market Types
Potential Market

Available Market

Target Market

Penetrated Market
 Ninety Types of Demand Measurement

6 different product
levels, 5 space levels,
and 3 time periods =
6*5*3
Demand Measurement

Market Demand

Company Demand
Market Demand Functions
Estimating Current Demand
Area market potential
Total market potential
Average
Potential Average
X purchase X
Buyers price
quantity

Chain-ratio method
Average percentage of income spent on:

Demand Expected % of
Alcoholic
for new X Population X Food X Beverages X X spending on
beverages
light beer Light beer
Estimating Future Demand

Sales Force Opinions

Buyer’s Intentions Forecasting

Past Sales Analysis

Expert Opinions
Secondary Research: Analyzing the Macroenvironment
Needs and Trends
Fad
• Unpredictable, short-lived, and without social, economic, and
political significance. Fads are measured in months, rather than
years.

Trend
• Offer a view of the future due to their momentum and
durability
Megatrend
• Changes that are slow to form but once established
last for 7 – 10 years (or more). Megatrends
influence all factors of life that impact business,
culture, economics, society, and personal lives.
Major Environmental Forces to monitor

Demographics Economic

Technological

Natural Political-Legal
Sociocultural
 Demographic Environment

Worldwide population growth

Population age mix

Ethnic and other markets

Educational Groups

Household patterns
The World as a Village
If the world were a village of 100 people:
61 – Asian (20 Chinese, 17 Indian)
18 – Unable to read (33 have cell phones)
18 – Under 10 years of age (11 over 60 years old)
18 – Cars in the village
63 – Inadequate sanitation
67 – Non-Christian
30 – Unemployed or underemployed
53 – Live on less than $2 a day
26 – Smoke
14 – Obese
01 – Have AIDS

Source: David J. Smith and Shelagh Armstrong, If the World Were a Village: A
Book About the World’s People, 2nd ed. (Tonawanda, NY: Kids Can Press, 2002)
Economic Environment

Consumer
Psychology

Income
Distribution
 Ourselves

Nature Others

Sociocultural
Environment
Society Universe

Organizations
Natural Environment

Environmental Regulations
Technological Environment
 Accelerated pace of change
 Unlimited opportunities for innovation

 Varying R&D budgets

 Increased regulation of technological change

Political-Legal Environment

Increase in business legislation

Special Interest Groups

 Thank you