Marketing Research & Forecasting Demand

MARKETING RESEARCH
&
FORECASTING DEMAND
MARKET RESEARCH
Systematic gathering of information
• about consumers,
• understanding consumers, and
• getting insights about consumers

MARKET RESEARCH TYPES
Quantitative Research
Uses a fixed questionnaire, to
enable statistical analysis of
data
Qualitative Research
Uses interviews to explore and
understand customers
MARKET RESEARCH
Research issues
1. Consumers do not always know what they
really want
2. Never, Never expect research to take
decisions for you. It is a tool.
MARKET RESEARCH METHODS
A. STRATEGIC
UNDERSTANDING
1.OBSERVATION STUDIES
2.HABITS & ATTITUDES STUDY

B. DEVELOPING IDEAS
1.QUALITATIVE RESEARCH
2.CONSUMER CLINICS
3.SEQUENTIAL RECYCLING
C. EVALUATING
MARKETING MIX
1.BENEFIT & REASON TEST
2.INNOVATION CHECK
3.PRODUCT TESTING
4.TVC PREVIEW
5.STM
D. MARKET MONITORING
1.1.BRAND HEALTH CHECKS

2.2.POST LAUNCH EVALUATION
3.3.RETAIL AUDIT
4.4.CONSUMER PANELS
MARKET RESEARCH PROCESSFLOW
OBSERVATIONAL
DEFINE SPELL OUT DEVELOP FOCUS GROUPS

THE ISSUE RESEARCH RESEARCH
OBJECTIVE SURVEY
PLAN
BEHAVIORAL DATA
DECISION ! PRESENTATION ANALYSIS

MARKETING PROFITABLY
MARKETING MANGERS ARE INCREASINGLY BEING

HELD ACCOUNTABLE FOR THEIR BUDGETS
MARKETERS USE COST-BENEFIT ANALYSIS TO

CALCULATE MARKETING ROI
MARKETING ROI IS CALCULATED FOR:

•STRATEGIC MARKETING PLANNING
•PROMOTIONAL ACTIVITIES
•MEDIA CHOICES
•ADVERTISING CAMPAIGNS
•SPONSORSHIPS
•TARGET MARKET CHOICES
FORECASTING DEMAND
Marketers are responsible for giving the sales forecast

for company-wide planning
Market potential
the total market
Estimate competitors sales- research data
Company’s market share
Future demand estimate

Estimate growth factors
Estimate income/ expenditure trends
Corporate targets
Statistical techniques
FORECASTING DEMAND
• Demand Chain Planning

1. The customers’ perspective
2. start point is the target market
3. Identify more profitable areas e.g. upstream or

downstream
4. More responsive to sudden changes in the CHAIN
5. On-line connectivity with PARTNERS
6. IT based, needs E R Ps
CREATING
CUSTOMER VALUE SATISFACTION
&
CUSTOMER LOYALTY
CUSTOMER VALUE SATISFACTION MODEL
Customers
Front-line
managers
Middle
management
Top
management
14
CAPTURING CUSTOMER VALUE
CPV
Customers evaluation of all benefits
minus
All the cost of the offering
and
The perceived alternatives
Customers are value maximisers

15
CAPTURING CUSTOMER VALUE THE HOLISTIC MODEL
Value Exploration
Identify new value opportunities
Value creation
Efficiently create new Value Offerings
Value delivery
Deliver new Value Offerings efficiently
16
CUSTOMER VALUE CUSTOMER SATISFACTION
Customer satisfaction is
Performance = expectations
Delighted Customers
Measuring Customer Satisfaction

Self & Competition
17
CUSTOMER VALUE CUSTOMER SATISFACTION
Customer loyalty
The consequence of high customer satisfaction
Total Quality
The total attributes of product/service that act to satisfy the
needs.
Total Quality leads to value creation

and customer satisfaction
18
CUSTOMER VALUE TOTAL QUALITY MANAGEMENT
T Q M is a philosophy
Company-wide commitment to Quality
Quality excellence in
Products
Services
Processes
Behavior
LOYAL
TQM DELIGHTFUL
CUSTOMER CUSTOMERS
19
CUSTOMER VALUE THE TOYOTA WAY
CONTINOUS IMPROVEMENT
CHALLENGE
We form a long tern vision, Meeting challenges with Courage and
creativity to Realize our dreams.
KAIZEN
Continuous improvement
We improve our business operations Continuously, always driving
for Innovation & evolution.
GENCHI GENBUTSU
Go and see for yourself We go to the source to find the facts to
make correct decisions, built consensus and achieve our goals
20
CUSTOMER VALUE THE TOYOTA WAY
RESPECT FOR PEOPLE
RESPECT
We respect others, make every Effort to understand each other,
take responsibility And do our best to build mutual trust.
TEAMWORK
We stimulate personal and Professional growth, share the
Opportunities of development And maximize individual and
team performance.
21
CUSTOMER VALUE CUSTOMER LIFETIME VALUE
Desired Objective
Consumers continue to profitably deliver value to
the company over their lifetime.
.
Customers Lifetime Value

A quantitative tool for marketing managers for
long-term strategy to exchange value with the
consumers
22
Customer Retention
. Cost of attracting new

customers is often very high
compared to the cost of
retaining existing consumers.
23
Customer Equity
Value equity ( objective) …….quality , price
& convenience
Brand equity ……. awareness & Loyalty

perception &
perceived quality
Relationship equity ……. Loyalty programs
Relational Equity concept
24
CUSTOMER VALUE PERCEIVED VALUE
Value Proposition
the core positioning
+
Other benefits
Brand Promise depends on the Value Delivery System
25
CUSTOMER VALUE CUSTOMER RELATIONSHIPS
Building long-term relationships maximizes

Value for customers
Point of contact with a consumer should be

a delightful experience
26
Existing customers have to be retained

96 % dissatisfied customers do not
complain
C R M process to meet individual needs of

valued customers
27
Marketing Management goal is

to
build & maintain
customer relationships
28
29
MARKET
SEGMENTATION
&
TARGETING
MARKET SEGMENTS NEED
Mass markets
one product for everybody
Micro markets
Splintering of proliferation of
masses, products
MARKET SEGMENTS NEED
Marketers do not create,

Only
IDENTIFY segments
MARKET SEGMENTS LEVELS
Segment markets
people with similar

•needs,
•wants,
•preferences
Niche markets
A sub –segment that is attractive

only if highly profitable
Local markets
•Segments geographically
clustered
•Experiential markets - memorable

time for consumers in services
Customerization
The ultimate segment –

tailored to individual
needs/wants
MARKET SEGMENTS WHY?
Consumer Market Segments

1.Consumer characteristics differ
2.Consumer Responses are different
THE VALUE OFFERING HAS TO BE
ADJUSTED PROFITABLY
TO RECOGNISE CONSUMER DIFFERENCES

MARKET SEGMENTS WHY?
THE CONVERSION DILEMMA
HOW CAN THE CONSUMER BE INDUCED TO
MAKE ANOTHER CHOICE ?

MARKET SEGMENTS HOW?
GEOGRAPHIC
PROVINCE, DISTRICT CITY URBAN/RURAL CLUSTERS
DEMOGRAPHIC
GENDER, AGE, INCOME, EDUCATION, GENERATION X/Y/Z
PSYCHOGRAPHIC
LIFESTYLE, PERSONALITY TRAITS, VALUES
BEHAVIORAL
INFLUENCERS, DECISION MAKERS, USERS, BUYERS
MARKET SEGMENTS TARGETING
Market Segmentation Criteria

M easurable
S ubstantial
A ccessible
D ifferentiable
A ctionable
DYNAMICS
SEGMENTS CHANGE WITH TIME
MARKET SEGMENTS STRATEGIES
1. SINGLE SEGMENT CONCENTRATION
2. MULTI SEGMENT APPROACH

DIVERSIFIES THE RISKS
3. SPECIALIZED PRODUCT SEGMENT

e.g. microscopes
4. SPECIALIZED MARKET SEGMENT

e.g. laboratories
MARKET SEGMENTS STRATEGIES
FULL MARKET COVERAGE

• UN DIFFERENTIATED MARKETING
…ignore segment differences
• DIFFERENTIATED MARKETING
..several segments

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MARKETING RESEARCH

Systematic gathering of information

• understanding consumers, and

• getting insights about consumers

2.HABITS & ATTITUDES STUDY

1.1.BRAND HEALTH CHECKS

DEFINE SPELL OUT DEVELOP FOCUS GROUPS

DECISION ! PRESENTATION ANALYSIS

MARKETING MANGERS ARE INCREASINGLY BEING

MARKETERS USE COST-BENEFIT ANALYSIS TO

MARKETING ROI IS CALCULATED FOR:

Marketers are responsible for giving the sales forecast

Future demand estimate

• Demand Chain Planning

2. start point is the target market

3. Identify more profitable areas e.g. upstream or

4. More responsive to sudden changes in the CHAIN

5. On-line connectivity with PARTNERS

Customers are value maximisers

Efficiently create new Value Offerings

Measuring Customer Satisfaction

Total Quality leads to value creation

RESPECT FOR PEOPLE

Customers Lifetime Value

. Cost of attracting new

Brand equity ……. awareness & Loyalty

Relationship equity ……. Loyalty programs

Relational Equity concept

Brand Promise depends on the Value Delivery System

Building long-term relationships maximizes

Point of contact with a consumer should be

Existing customers have to be retained

C R M process to meet individual needs of

Marketing Management goal is

Marketers do not create,

people with similar

A sub –segment that is attractive

•Experiential markets - memorable

The ultimate segment –

Consumer Market Segments

THE VALUE OFFERING HAS TO BE

TO RECOGNISE CONSUMER DIFFERENCES

THE CONVERSION DILEMMA

HOW CAN THE CONSUMER BE INDUCED TO

MAKE ANOTHER CHOICE ?

Market Segmentation Criteria

1. SINGLE SEGMENT CONCENTRATION

2. MULTI SEGMENT APPROACH

3. SPECIALIZED PRODUCT SEGMENT

4. SPECIALIZED MARKET SEGMENT

FULL MARKET COVERAGE

…ignore segment differences

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