MARKETING MANAGEMENT BY KOTLER AND KELLER (12TH ED.)
LECTURE NOTES
Chapter 4. Conducting Marketing Research
 The Marketing Research System
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Marketing Research System is the systematic design, collection, analysis, and reporting of data and
findings relevant to a specific marketing situation facing the company.
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Companies use either their own marketing research departments or marketing reserch firms.
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Marketing research firms
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Syndicated – service research firms
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Custom marketing research firms
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Specialty – line marketing research firms
Small companies have several cheap and affordable ways for conducting research
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Engaging students or proferssors to design and carry out projects
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Using the internet
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Checking out rivals
 The Marketing Research process
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Define the problem, the Decision Alternatives, and the Research Objectives
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Define the problem(not too broadly or narrowly), spell out decisions, set specific research
objectives( American Airlines (AA)).
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Exploratory, descriptive and causal research
Develop the Research Plan
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Decide on the data sources, research spproaches, research instruments, sampling plan, and
contact methods.
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Data sources
Primary data
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Secondary data
Research Approaches
Observational Research(Ogilvy&Mather’s Discovery Group)
Survey
Behavioral Data
Focus Group
Experimental Research
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Research Instruments
Questionaries(closed – end and open – end questions)
Qualitative measures(shadowing, behavior mapping, consumer journey, camera journals,
extreme user interviews, storytelling, unfocus groups)
Mechanical devices(galvanometer, tachistoscope, eye camera, audiometer, GPS)
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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? (Probability and Nonprobability
Samples, Table 4.2, 110)
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Collect the Information
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Analyze the Information
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Present the Findings
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Make the Decision
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Markting decision support system(MDSS) is a coordinated collection of data, systems, tools,
and techniques with supporting software and hardware by wich an organization gathers and
interprets relevant information from business and enviroment and turns it into a basis for
marketing action.
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CALLPLAN is example of MDSS
Overcoming Barriers to the Use of Marketing Research
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A narrow conception of the research
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Uneven caliber of researchers
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Poor framing of the problem
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Late and occasionaly erroneous findings
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Personality and presentational differences
 Measuring Marketing Productivity
70 percent of marketing executives stated that they did not have a handle on the return on their marketing
investments.
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Approaches to measure marketing productivity:
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Marketing metrics
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Marketing – mix modeling
Marketing metrics
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Marketing metrics is the set of measures that helps firms to quantify, compare, and interpret
their marketing performance.
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Marketing metrics relate to costumer – level, brand – level, and internal to the company
concerns.
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Marketing dashboard
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Costumer – performance scorecard; records how well the company is doing year after year
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Stakeholder – performance scorecard; tracks satisfaction of employees, suppliers, banks,
distributors, retailers, stockholders.
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Measuring Marketing Plan Performance
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Sales Analysis
Sales – variance analysis measures the relative contribution of different factors to a gap in
sales performance.
Microsales analysis looks at specific products, territories, and so forth that failed to produce
expected sales.
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Market share analysis
Overall market share
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Served market share
Marketing expense – to – sales analysis; consists of five ratios:
Sales force – to – sales
Advertising – to – sales
Marketing research – to – sales
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Relative market share
Sales promotion – to – sales
Sales administration – to – sales
Control chart
Financial analysis
Profitability Analysis
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Companies can benifit from deeper financial analysis, and should measure the profitability of
their products, territories, customer groups, segments, trade channels, and other sizes.
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Marketing – profitability analysis
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Identifying functional expenses
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Assigning functional expenses to marketing
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Preparing a profit – and – loss statement for each marketing entity
Direct costs
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Traceable common costs
Nontraceable common costs
Marketing – Mix Modeling
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Marketing – mix models analyze data from a variety of sources, such as retailer scanner data,
company shipment data, pricing, media, and promotion spending data, to understand more
precisely the effects of specific marketing activities.