MARKETING MANAGEMENT

PART 2: UNDERSTANDING THE

MARKET
Chapter 5: Conducting Marketing Research

Subject Expert : Dr. Masri bin Abdul Lasi

Module Lecturer : Dr. Masri bin Abdul Lasi
SCAN ME FOR LECTURER’S INFORMATION

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
Learning Outcome
After studying this chapter you should be able to
• Define the Scope of Marketing Research.
• Explain the Marketing Research Process, how to Gather and Analyze Market Data,
and how to Develop a Research Plan.
• Explain how to Measure and Forecast Market Demand.
• Define the Different Approaches to Measuring Marketing Productivity.

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
The Scope of Marketing Research
• Marketing research
• the function that links the consumer, customer, and public to the marketer
through information—information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing
actions; monitor marketing performance; and improve understanding of
marketing as a process
• Importance of marketing insights
• Generating insights (how and why we observe certain effects in the
marketplace)

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
The Scope of Marketing Research
• Who Does Marketing Research?
• Marketing departments in big firms
• Syndicated-service research firms
• Custom marketing research firms
• Specialty-line marketing research firms

Figure 5.1 The Marketing Research Process

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
Defining the Problem
• Define the decision alternatives and Define the research objectives
• Marketing managers must be careful not to define the problem too
broadly or too narrowly for the marketing researcher.
• To help design the research, management should first spell out the
decisions it might face and then work backward. Now management
and marketing researchers are ready to set specific research
objectives.
• Some research is exploratory—its goal is to identify the problem and
to suggest possible solutions. Some is descriptive—it seeks to
quantify demand, such as how many first-class passengers would
purchase ultra high-speed Wi-Fi service at $25. Some research is
causal—its purpose is to test a cause-and-effect relationship.

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
Developing the Research Plan
• Data sources
• Secondary data
• Data that were collected for another purpose and already exist somewhere
• Primary data
• Data freshly gathered for a specific purpose or project
• Research approaches Research instruments
• Observational research • Questionnaires
• Ethnographic research
• Closed-ended questions
• Focus group research
• Open-ended questions
• Survey research
• Behavioral research

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
Table 5.1 Types of Questions

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
Table 5.1 Types of Questions

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
Developing the Research Plan
• Research instruments
• Qualitative measures
• Word associations
• Projective techniques
• Visualization
• Brand personification
• Laddering
• Measurement devices
• Neuromarketing
• EEG technology
• MRI

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
Collecting the Information
• Sampling plan
• Sampling unit: Whom should we survey?
• Sample size: How many people should we survey?
• Sampling procedure: How should we choose the respondents?
• Contact methods
• Online
• In person
• Mail and email
• Telephone

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
Collecting the Information
• Data Mining
• To identify prospects
• To decide which customers should receive a particular offer
• To deepen customer loyalty
• To reactivate customer purchases
• To avoid serious customer mistakes

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
Analysis and Decision Making
• Analyzing the information and making the decision
• Tabulate the data and develop summary measures
• Market data vs. market insights

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
Measuring Market Demand
• Measure and forecast the size, growth, and profit potential of new
opportunities
• Define “market demand”
• Market demand
• the total volume that could be bought by a defined customer group in a
defined geographic area in a defined time period in a defined marketing
environment under a defined marketing program
• Market potential
• the maximum sales available to all firms in an industry during a given period,
under a given level of industry marketing effort, and under extant
environmental conditions

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
 Demand Measurement Concepts
• Company demand
• the company’s estimated share of market demand at alternative levels of company
marketing effort in a given time period
• Market forecast
• the market demand corresponding to the actual level of industry marketing
expenditure
• Company sales forecast
• the expected level of company sales based on a chosen marketing plan and an
assumed marketing environment
• Sales quota
• Sales budget

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
Forecasting Market Demand
• Anticipating what buyers are likely to do
• Forecasts
• Macroeconomic
• Industry
• Company sales
• Industry sales and market shares
• Survey of buyers’ intentions
• Composite of sales force opinions
• Expert opinion
• Past-sales analyses
• Market-test method

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
Measuring Marketing Productivity
• Measuring marketing productivity
• Marketing metrics
• Marketing mix modeling
• Marketing dashboards
• Marketing metrics
• the set of measures that help marketers quantify, compare, and interpret their
performance
• Marketing mix modeling
• analyze data from a variety of sources such as retailer scanner data, company
shipment data, as well as pricing, media, and promotion expenditure data, to
understand more precisely the effects of specific marketing activities

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
Measuring Marketing Productivity
• Marketing dashboards
• provide all the up-to-the-minute information necessary to run the business
operations for a company—such as sales versus forecast, distribution channel
effectiveness, brand equity evolution, and human capital development

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
 Marketing Dashboards
• Customer metrics pathway
• looks at how prospects become customers, from awareness to preference to trial to
repeat purchase or some less linear model
• Unit metrics pathway
• reflects what marketers know about sales of product/service units—how much is sold
by product line and/or by geography, the marketing cost per unit sold as an efficiency
yardstick, and where and how margin is optimized in terms of characteristics of the
product line or distribution channel
• Cash-flow metrics pathway
• focuses on how well marketing expenditures are achieving short-term returns.
Program and campaign ROI models measure the immediate impact or net present
value of profits expected from a given investment

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
 Marketing Dashboards
• Brand metrics pathway
• tracks the longer-term impact of marketing through brand-equity measures that
assess both the perceptual health of the brand from customer and prospective
customer perspectives and the overall financial health of the brand

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
Discussion Questions
• People celebrate traditions in December in many different ways. For some
people, that includes holiday drinks at Starbucks.
• Why has Starbucks had so much success with its holiday beverages?
• How would you describe the market research process used by Starbucks for its holiday
drink program?
• How do you think Starbucks forecasts demand for its holiday campaign?

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia
Discussion Questions
• Think about the last car you or your family purchased. What features were
important in the buying decision? Discuss the market research instruments
and data sources used by automakers.
• Which data sources are likely to be important to automakers? Why?
• Do automakers rely on questionnaires, qualitative measures, technological devices,
or some combination of these? Explain.

All Rights Reserved

No part of this document may be reproduced without written approval from City Graduate School, City University Malaysia