Sunday, January 10, 2010

Top 10 Concepts on Research and Demand Forecasts

1. Marketing research is defined as the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company. Companies can either conduct their own marketing research or hire other companies to do it for them.
2. A good marketing research is characterized by the scientific method, creativity, multiple research methods, interdependence of models & data, value & cost of information, healthy skepticism, & ethical marketing
3. The marketing research process involves the following steps – Define problem & research objectives, Develop research plan, Collect info, Analyze info, Present findings, & Make decision
4. In conducting research, firms must decide whether to collect their own data or use data that already exist.
5. Firms 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.
6. They must also design a sampling plan and contact methods (by mail, phone, in person, or online).
7. There are two complimentary approaches to measuring marketing productivity – the marketing metrics & marketing-mix model to address the increasing need for accountability in marketing activities. Marketing dashboards are a structured way to disseminate the insights gathered from these two approaches.
8. Marketing is responsible for preparing sales forecasts which are based on estimates of demand. There are two types of demand – market demand and company demand
9. To aid companies in market planning, the market is broken down into: the potential market, available market, target market & penetrated market.
10. To estimate current demand, companies determine total market potential, area market potential, industry sales, & market share. To estimate future demand, companies survey buyers’ intentions, solicit sales force’s input, gather expert opinions, analyze past sales, or engage in market testing.

Zarah Katrina C. Adea, (Nov. 30, 2009)