Transcript chapter 5: marketing research - Florida Gulf Coast University

CHAPTER 5: MARKETING
RESEARCH
Hudson Rogers
Florida Gulf Coast University
MARKETING INFORMATION
SYSTEM

Marketing has three main sub-systems:
 1) Internal Accounting System – provides
financial data
 2) Marketing Intelligence System –
supplies data about what is currently
taking place
 3) Marketing Research System – formal
information gathering and analyzing
process
MARKETING RESEARCH
 Marketing
Research is the systematic
design of data collection, analysis,
and reporting of data and findings
relevant to a specific marketing
situation facing the company.
MARKETING RESEARCH
PROCESS
 1)
Define Problem & research
objectives.
 2) Develop the Research Plan
 3) Collect the Information
 4) Analyze the Information
 5) Present the Findings
GOOD MARKETING
RESEARCH

Research may have to overcome many
problems chief of which are:
 1. Narrow Conception of Marketing
Research – some managers view research as
act finding without clearly defined problems
rather than information gathering

2. Uneven Caliber of Researchers –
marketing research is not a clerical activity.
 3. Late and Erroneous Results – managers
need timely results that are accurate, takes time
and money.
 4. Intellectual Differences - difference in
style between managers and researchers can get
in the way
OVERCOMING PROBLEMS

Rely on:
 1) The scientific method - helps objectivity
 2) Research Creativity – quality of
researcher.
 3) Use of multiple methods – helps
reliability 4) Interdependence of explicit
model and data – select data gathering
and research model best suited to
analyzing the problem.
 Consider the cost versus the information
when marking marketing research
decisions. This is really a trade off.
TYPES OF RESEARCH

Exploratory –you do not have a precise
problem formulation or do not know the problem.
Mostly qualitative, lacks formal design. Should
not be used for decision-making. Secondary data,
experts, focus groups
 Conclusive Research – These are used for
decision making. Does not show cause and
effect & you never know all the alternatives.
Descriptive (describes characteristics of
thing studies), Case History, statistical methods
(set objectives, formal design, representative
sample, quantitative data gathered and analyzed,
reliability).

Causal Research
DATA SOURCES

Secondary Data
 Focus Groups
 Interviews
 Experts
 Knowledgeable Persons (Psych Tests) to
get at underlying motivations
 Surveys (Mail, Telephone, E-mail, Mall)
 Simulations
 Case Histories
DATA COLLECTION
 Sampling:
– convenience,
quota, snowball, judgment, shopping
mall.
 Probability – Systematic data
collection process: simple random,
stratified, cluster, area, multi-stage,
proportional
 Non-Probability
DATA ANALYSIS
 Descriptive Analysis
 Cross
Tabulations
 Analysis of Variance (ANOVA)
 T-Test
 Regression Analysis
 Discriminant Analysis
DEMAND MEASUREMENT
Potential Market – set of consumers who
indicate a sufficient level of interest to
something offered in the marketplace
 Available Market – consumers with interest,
income, and access to a given product.
 Qualified available Market – consumers
with interest, income, access and qualification
to purchase a given product

DEMAND MEASUREMENT
(Cont’d)

Target Market – (served market). Target
market is the set of consumers that the firm
wishes to go after with its marketing effort.
 Penetrated Market – set of consumers
actually buying the firm’s product. If not satisfied
with current sales, a firm can take actions geared
toward affecting the target market, or the
potential market.
 Market Demand – number of units that will be
sold to a defined customer group in geographic
area for a defined period of time under a defined
marketing program. To modify demand seek to
adjust any or all of the “defined” factors on which
the total volume is based.
DEMAND MEASUREMENT
 1.
 2.
 3.
 4.
 5.
 6.
Market demand
Market forecast
Market potential
Company demand
Company sales forecast
Company sales potential
ESTIMATING CURRENT
DEMAND

Estimating current demand
 1. Total market potential
 2. Area market potential:



a) Market-buildup method
b) Multiple-factor index method
3. Estimating industry sales and market
shares
a)
a) identifying competitors and estimating
their sales
ESTIMATING FUTURE
DEMAND
Future Demand – All
forecast are built upon three
information bases (1) what people
say they will do (2) what people do,
and (3) what people have done.
 Estimating
ESTIMATING FUTURE
DEMAND (Cont’d)

Five main ways to assess future demand:
 1) Survey of Buyer Intentions – determine
what buyers are likely to do under certain conditions.

2) Composite of Sales Force Opinion – ask
sales representatives to estimate their future sales and sum
the individual estimates to arrive at the firms forecast

3) Expert Opinion/Delphi Method – ask the
experts what they think

4) Past-Sales Analysis – use time series analysis,
statistical demand analysis or econometric analysis to
predict.

5) Market Test Method – observing what buyers
do in a test market & using information to project to wider
market.