Chapter – 3

Conducting Marketing
Research and Forecasting
Demand

1.1
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

1.2
Gillette Used Extensive Market
Research When Designing the
Venus

1.3
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.

1.4
Types of Marketing Research Firms

• Syndicated- Specialty-
Custom
• service line

1.5
The Marketing Research Process

Define the problem

Develop research plan

Collect information Make

decision
Analyze information

Present findings

1.6
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.

1.7
Step 1: Define the Problem
• Define the problem
• Specify decision alternatives
• State research objectives

1.8
Step 2: Develop the Research Plan

Data Research
Sources Approach

Research Sampling
Instruments Plan

Contact
Methods

1.9
Research Approaches
Observation
Observation

Ethnographic
Ethnographic

Focus
Focus Group
Group

Survey
Survey

Behavioral
Behavioral Data
Data

Experimentation
Experimentation

1.10
Focus Group in Session

1.11
Research Instruments

Questionnaires
Qualitative Measures
Technological Devices

1.12
Questionnaire Do’s and Don’ts

• Ensure questions are free of • Avoid negatives

bias • Avoid hypotheticals
• Make questions simple • Avoid words that could be
• Make questions specific misheard
• Avoid jargon • Use response bands
• Avoid sophisticated words • Use mutually exclusive
• Avoid ambiguous words categories
• Allow for “other” in fixed
response questions

1.13
Question Types—Dichotomous

In arranging this trip, did you contact

American Airlines?
 Yes  No

1.14
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

1.15
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

1.16
Question Types—Semantic Differential

American Airlines
Large ………………………………...…….Small
Experienced………………….….Inexperienced
Modern……………………….…..Old-fashioned

1.17
Question Types—Importance Scale

Airline food service is _____ to me.

 Extremely important
 Very important
 Somewhat important
 Not very important
 Not at all important

1.18
Question Types—Rating Scale

American Airlines’ food service is _____.

 Excellent
 Very good
 Good
 Fair
 Poor

1.19
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

1.20
Question Types—Completely
Unstructured

What is your opinion of American Airlines?

1.21
Question Types—Word Association

What is the first word that comes to your mind

when you hear the following?
Airline ________________________
American _____________________
Travel ________________________

1.22
Question Types—
Sentence Completion

When I choose an airline, the most important

consideration in my decision is:
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
__________________.

1.23
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.
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________

1.24
Question Types—Picture
(Empty Balloons)

1.25
Question Types –
Thematic Apperception Test

Make up a story that reflects what you think is

happening in this picture.
1.26
Qualitative Measures

Word
Word Association
Association

Projective
Projective Techniques
Techniques

Visualization
Visualization

Brand
Brand Personification
Personification

Laddering
Laddering

1.27
Technological Devices
Galvanometers

Tachistoscope

Eye cameras

Audiometers

GPS

1.28
Nielsen Outdoor Leverages GPS
to Track Billboard Reach

1.29
 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?

1.30
Table 4.2 Types of Samples

Nonprobability Samples
• Convenience
• Judgment
• Quota

1.31
Contact Methods
Mail Questionnaire

Telephone
Interview

Personal
Interview

Online
Interview

1.32
Pros and Cons of Online Research

1.33
MarketTools’ Research Panels

1.34
What is a Marketing Decision Support
System (MDSS)?

A marketing decision support system is a

coordinated collection of data, systems, tools,
and techniques with supporting hardware and
software by which an organization gathers
and interprets relevant information from
business and environment and turns it into a
basis for marketing action.

1.35
Barriers Limiting the Use of
Marketing Research

• A narrow conception of the research

• Uneven caliber of researchers
• Poor framing of the problem
• Late and occasionally erroneous findings
• Personality and presentational differences

1.36
1.37
1.38
1.39
1.40
1.41
1.42
1.43
1.44
1.45