Marketing Management

By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha

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SUMMARY by

Chapter 4
Conducting Marketing Research
and Forecasting Demand

Why Marketing Research?

Successful Marketing Managers need timely, accurate and actionable information about
consumers, competition and their brands to assess past performance, plan future
activities and take strategic decisions leading to successful product launch or increase
growth of a brand.

What is What are the major steps of Marketing Research

Process?
Marketing
Step 1 : Define the problem, the decision alternative and the research objective
Research?
Systematic Design, Step 2 : Develop the research plan
collection, analysis
and reporting of
data and findings Step 3 : Collect the information
relevant to a
specific marketing
Step 4 : Analyze the information
situation facing the
company.

Step 5 : Present the findings

Step 6 : Make the decision

 Chapter 4 - Conducting Marketing Research and Forecasting
Step 1:
Achieve clarity on the content, the scope of market research and what all decisions are
to be made on the basis of research.

Step 2:
Primary Data ccan be collected through following:
Secondary
Data: Research Methods Research Tools

Already existing •Observational

Observational Research: Observing
•Questionnaires:
Questionnaires: A set of questions
consumers, informal interviews, using
somewhere which soliciting responses that is of relevance
tools from anthropology to provide
to market situation. They can be either
was collected for deeper understanding of consumers.
open-ended
ended or closed-ended.
closed
some other •Focus
Focus Group Research: A meeting of a
•Qualitative
Qualitative Measures: Relatively
purpose group of people who represent potential
unstructured measurement approach
customers or important actors for
research discussing issues relevant to for exploring consumer’s responses
research •Technological
Technological Devices: devices like skin
•Survey
Survey Research: Companies undertake sensors brain wave scanners to
descriptive research to learn about capture consumer’s response.
people’s beliefs, preferences and
Primary satisfaction.
•Sampling
Sampling Plan: A plan addressing
questions like whom all to survey, how
•Behavioral
Behavioral Data: Customer’s actual
Data: purchases do not match their
many people to survey, how should we
select people for survey.
Freshly gathered statements made in surveys always
•Contact
Contact Methods: Mail Questionnaire,
hence certain techniques help in
data for research exposing these discrepancies
Telephone Interview, Personal
only. Expensive to Interview, Online Interview.
•Experimental
Experimental Research: This captures
collect. cause and effect relationship in
observed findings.

Step 3:
Data collection is one of the most expensive, time
time-taking
taking and most error prone phase of
market research as it entirely depends on availability, honesty and consistency of
respondents. However technology has eased the problem to a great extent.

Step 4:
This is the process to extract findings by tabulating the data and developing frequency
distributions
stributions in hope of discovering additional findings.

Step 5:
The researcher presents finding relevant to the major marketing decisions facing
management
management.
 Chapter 4 - Conducting Marketing Research and Forecasting
Step 6:
Types of Market research is just a tool to provide insight to the managers. Depending on their
confidence in the findings, managers decide to use it
Market
Barriers to Marketing Research
Potential • Narrow approach to Marketing Research
• Uneven Caliber of researchers
market • Poor framing of problem
Set of consumers who • Late and occasionally erroneous findings
profess a sufficient • Personality & presentational differences
level of interest in a
Measuring Marketing Productivity
market offer.
To assess the efficiency and effectiveness of marketing of marketing activities there are
• Marketing metrics to assess marketing effects
Available • Marketing mix modeling to estimate casual relationships and measure how
marketing activity affect outcomes
market • Marketing Dashboard are a structured way to disseminate the insights gleaned
Set of consumers who from these two approaches within the organizations

have interest income

Types of Demand
and access to a Market Demand
particular offer. • It is the total volume that would be bought by a defined customer group in a
defined geographical area in a defined time period in a defined marketing
environment under a defined marketing program
Target market Company Demand
The part of the • It is the company’s estimated share of the market demand at alternative levels of
company marketing effort in a given time period
qualified available
Current Demand
market the company
• It is the demand that companies attempt to determine by measuring total
decides to pursue. market potential, area market potential industry sales and market share
Future Demand
• It is the demand that companies determine by surveying buyer’s intentions,
Penetrated solicit their sales force’s input, gather expert opinions, analze past sales or
market engage in market testing mathematical models, advanced statistical techniques
and computerized data collection procedures
Set of consumers who
are buying the To estimate current demand companies attempt to determine total market potential,
company's product. area market potential industry sales and market share

To estimate future demand companies’ survey buyer’s intentions solicit their sales
force’s input, gather expert opinions, analyze past sales or engage in market testing
mathematical models, advanced statistical techniques and computerized data collection
procedures are essential to all types of demand and sales forecasting.