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G RESEARCH AND FORECASTING DEMAND 4 C H A P T E R LEARNING OBJECTIVES After reading this chapter, students should: Know what constitutes good marketing research Know what are good metrics for measuring marketing productivity Know how marketers can assess their returns on investment of marketing expenditures Know how companies can more accurately measure and forecast demand CHAPTER SUMMARY Companies can conduct their own marketing research or hire other companies to do it for them. Good marketing research is characterized by the scientific method, creativity, multiple research methods, accurate model building, cost-benefit analysis, healthy skepticism, and an ethical focus. The marketing research process consists of defining the problem, decision alternatives, and research objectives, developing the research plan, collecting the information, analyzing the information, presenting the findings to management, and making the decision. In conducting research, firms must decide whether to collect their own data or use data that already exist. They must also decide which research approach (observational, focus group, survey, behavioral data, or experimental) and which research instruments (questionnaire, qualitative measures, or technological devices) to use. In addition, they must decide on a sampling plan and contact methods (by mail, by phone, in person, or online). Two complementary approaches to measuring marketing productivity are: (1) marketing metrics to assess marketing effects and (2) marketing-mix modeling to estimate causal relationships and measure how marketing activity affects outcomes. Marketing dashboards are a structured way to disseminate the insights gleaned from these two approaches within the organization. There are two types of demand: market demand and company demand. To estimate current demand, companies attempt to determine total market potential, area market potential, industry sales and market share. To estimate future demand, companies survey buyers’ intentions, solicit their sales force’s input, gather expert opinions, analyze past sales, or engage in market testing. Mathematical models, advanced statistical techniques, 169
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Chapter-by-Chapter Instructional Material and computerized data collection procedures are essential to all types of demand and sales forecasting. DETAILED CHAPTER OUTLINE Good marketers want insights to help them interpret past performance as well as plan future activities. They need timely, accurate, and actionable information on consumers, competition, and their brands. They also need to make the best possible tactical decisions in the short run and strategic decisions in the long run. MARKETING RESEARCH SYSTEM Marketing managers often commission formal marketing studies of specific problems and opportunities. Marketing insights provide diagnostic information about how and why we observe certain effects in the marketplace, and what that means to marketers. A)
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This note was uploaded on 11/29/2010 for the course KELLER MM522 taught by Professor Kissi during the Spring '10 term at Keller Graduate School of Management.

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