MARKETING MANAGEMENT
Ateneo Standard MBA Program
S33 SPMARKMA. SAT 9:00am - 12:00nn.
Part 2: Capturing Marketing Insights
Chapter 3: Collecting
Information
and Forecasting Demand
Conducting Marketing
Chapter 4:
Research
A Critical Thinking Framework
1. WHAT?
2. SO WHAT?
3. NOW WHAT?
A Critical Thinking Framework
WHAT?
1. internal records system (includes information on the
order-to- payment cycle and sales information systems)
2. marketing intelligence system (set of procedures and
sources used by managers to obtain everyday
information about pertinent developments in the
marketing environment)
3. marketing research system that allows for the
systematic design, collection, analysis, and reporting of
data and findings relevant to a specific marketing
situation.
A Critical Thinking Framework
WHAT?
Monitor 6 major environmental forces:
1. demographic
2. economic
3. social-cultural
4. natural
5. technological
6. political-legal.
A Critical Thinking Framework
Example:
The Philippines has a young population with
a median age of 24 and comprised by
more than 30% of millennials.
Consumer behaviors are constantly evolving
and the younger generation is looking for a
brand they can call their own.
Source: Nielsen Executive Director John Patrick Cua
A Critical Thinking Framework
Example:
On traditional trade, nine out of 10 Filipinos continue to patronize sari-
sari stores. Developing markets like the Philippines continue see
shoppers visit traditional trade 28 times a month. The sari-sari store is
informal than our Southeast Asian neighbors where Filipinos can open
a window, sell a few categories such as softdrinks and cigarettes and
start calling themselves sari-sari stores. It is still very much a part of
the Filipino community where the stores act as a pantry extension,
credit or “pa-lista” is given and “tingi” sales are common, between the
bigger bi-weekly supermarket shopping. Sari-sari stores also continue
to thrive with the support of semi-retailers such as Puregold and other
regional players that provide support in the form of credit, store
delivery and special promotions.
Source: Nielsen Executive Director John Patrick Cua
A Critical Thinking Framework
SO WHAT?
Identify trends and themes (directions or sequences
of events that have some momentum and durability) and
megatrends (major social, economic, political, and
technological changes that have long-lasting influence).
what are the key implications to your business? products?
brands?
what opportunities can be exploited?
what are your insights?
A Critical Thinking Framework
Example:
WHAT?
In the recent Nielsen Shopper Trends Study, 3 out of 10 Filipinos patronize a
convenience store compared to less than 10%, 5 years ago.
In 2016, more than 30,500 Filipinos share a CVS compared to South Korea
with 1,643 people per CVS or Thailand which is at 5,000 people per CVS.
SO WHAT?
This means that there is still room for CVS to grow in the Philippines as the
middle class continue to expand and urbanization further rises. Convenience
stores fulfill many other roles particularly answering time-strapped consumers’
immediate or urgent needs so they are not seen to replace the role of the sari-
sari store. CVS also draw a big portion of their revenue from ready-to-eat
meals.
Source: Nielsen Executive Director John Patrick Cua
CASE: VELCRO
CASE: LIQUID PAPER
It was originally called “mistake out” and was the invention of
a woman named Bette Nesmith Graham, a divorcee who went
to work in 1951 as an office secretary.
She offered Mistake Out to IBM
which turned it down.
Over the next 25 years she
would build the Liquid Paper
Corporation into a multimillion
dollar international company
which she finally sold to
Gillette in 1980 for $48 million
USD.
CASE: PAWNSHOP
A Critical Thinking Framework
WHAT NOW?
relevant and coherent decisions or
actions to be made?
what are the risks and contingencies of
each decision?
Common Research Issues
♦ Is product X good enough to sell?
♦ Do consumers believe my product is bad?
♦ How widely used is product X?
♦ How do users use this product category?
Basic Components of Research
♦ What for – decision & action to take
♦ Who to talk to – the respondent
♦ What and how to ask –the questionnaire
♦ How many respondents
♦ Report and analysis
What Research For
♦ Action you want to take, eg
♦ Select a one or two product formula alternatives
for final testing
♦ Go or no go with new product formulation
♦ Objective
♦ Check whether a lower cost formulation change
is at least as acceptable as the current product
♦ Check which of several alternatives meet a
benchmark acceptance level
Common Types of Research
♦ Product concept and usage test – to check our product or
service ideas when a test product is already available
♦ Can be done in central location
♦ Test your product against a benchmark
(“control”) preferably a successful competitor
♦ Often two products tested by each respondent
♦ If several for test, can have several tried by
each respondent, depending on usage conditions
Sample Concept
A new food company is planning to
introduce a delicious drink that will be
made from coconut water and mango
juice.
Available at only P10 for a 250 ml tetra.
It will combine the health benefits of coconut water
and mangos and have a unique delicious flavor.
Plus it will last for a month without refrigeration.
Common Types of Research
♦ Usage – what % of target market in your catchment area
are using
♦ Usage and Attitude – to find out
♦ what % of target market are aware of,
♦ What % using your product or others in the
category,
♦ What they like or do not like about the product
♦ what is important to them when choosing brands
Common Types of Research
♦ Habits – to find out how people use a product or product
category, to help develop product or service ideas
♦ Traffic flow – To see how many people pass by your
store/site, which parts of the store people go to, what
attracts them inside a store, what % buy from each
section
Common Types of Research
♦ Census – Listing of competitors in the area you are or
considering being in, etc
♦ Desk research – getting data from published sources
Some Kinds of Questions
♦ In terms of tendency of bias
♦ Leading questions (you don’t want to do this)
♦ Non-leading questions
♦ In terms of focusing attention
♦ Voluntary
♦ Direct
♦ Rating scales
Leading Questions
♦ Leading questions – questions that suggest that you
prefer to hear some answers more than others. DO NOT
DO THIS.
♦ Non-leading questions - questions that do not suggest
that you prefer certain answers. DO THIS.
Leading Questions Examples
♦ Bakit ayaw ninyo ang siopao ko?
♦ Better: Bakit ayaw ninyo ang siopao na ito?
♦ Gusto ninyo ito, di ba?
♦ Better: Gusto ninyo ba ito o hindi?
♦ Mas gusto mo ba ito?
♦ Better: Alin sa dalawang siopao and mas gusto
ninyo?
Its Not Just the Words
♦ Your manner matters - you might look
too eager to get a favorable answer.
So even if your words are good, the
overall effect is bad
Non-Leading Questions
♦ Those that do not make the respondent
aware you are really interested in only one
or a few brands, eg
♦ Ano ang mga brands ng siopao na alam
ninyo?
♦ Bakit ayaw ninyo ang siopao na ito?
♦ Gusto ninyo ba ito o hindi?
♦ Alin sa dalawang siopao and mas gusto
ninyo?
Last Example, Non-Leading
♦ Please tell me which brands of
herbal teas do you know
advertise on tv, newspapers,
magazines, radio, billboard, on
line or in other ways?
Voluntary
♦ Some questions are meant to get
what respondents are aware of, or
use, without reminding them of any
one brand
♦ What brand of siopao do you buy
most often?
When Asking for Lists
♦ When asking respondents for lists of
items/brands, it is helpful to have follow
up questions
♦ Paki sabi lang po lahat ng brand ng
siopao na natatandaan ninyo. Ano pa po?
Meron pa po ba?
♦ Paki sabi lang po lahat ng brand ng
siopao na nasubukan na ninyo. Ano pa
po? Meron pa po ba?
Direct
♦ Some questions are meant to focus on specific
brands or characteristics.
♦ Are you aware of Pao Tsin siomai or not?
♦ Have you ever tried Pao Tsin siomai or not?
♦ Important: ask Direct Questions only after you
have asked all the voluntaries that you need to
ask
♦ To avoid biasing answer to the Voluntaries
that follow the Direct
Comments on Awareness and Usage
♦ People usually can easily voluntarily
recall only a few brands in a category
♦ But if you focus their attention on a
specific brand, they may remember it
only after you remind them
♦ Clearly, not as strong a kind of
awareness as purely voluntary
awareness (or usage, or trial)
Common Marketing Situation
Strong Weak
Brand Brand
% %
Aware - Voluntary 50 25
Ever Tried - Voluntary 40 10
Aware – Directed + Voluntary 90 60
Ever Tried – Directed + Voluntary 70 15
Used most often 15 3
Willing to recommend 12 1
Probing Questions
♦ On many Voluntary questions, the
answers of respondents will be vague or
not specific enough
♦ So you follow up with a probing question
until you get an answer that can help you
♦ But some people just will be unable to
clarify so stop probing when the
respondent looked uncomfortable or
stuck
Probing Questions Examples
♦ Bakit Greenwich pizza and pinakagusto ninyo?
♦ Kasi masarap kasi pizza nila.
♦ Usually not helpful for marketing or
product development people
♦ Probing Question: Bakit ninyo sinabi na
masarap ang Greenwich pizza
♦ Kai tama lang ang cheese nila, di sobra at di
kulang. Isa pa, di sobrang maalat ang keso
nila. At lumilitaw ang lasa ng green pepper
na gusto ko.
Another Probing Question Example
♦ Paki sabi lang po kung ano ang ayaw
ninyo sa XYZ Pizza.
♦ Ans: Pangit kasi lasa, di mazara
♦ Probing Question: Bakit po ninyo
sinabi na di masarap ang XYZ Pizza?
♦ Ans: Sobra kasi langis at sobra din
ang alat.
Rating Scales
♦ For importance or performance
♦ 10 point scale (1 to 10 where 10 is perfect, most
important)
1 10
Terrible Perfect
Ayaw na Gustong
ayaw gusto
Performance On The Important
Attribute Rating of Food
Importance* Outlets**
A B C
Juicy, beefy taste 9.5 9.0 8.0 7.5
Tama lang ang alat 8.0 8.5 8.3 7.0
Kaya ko presyo 8.0 8.2 8.6 9.5
Mabilis ang service 7.0 7.5 9.3 6.8
* Ave rating on 10 point importance scale
** Ave brand rating on 10 point performance scale
Poor or Excellent or
Not At All Impt Very Impt
1 10
Questionnaire for Usage/Attitude
♦ Start with questions that verify
whether the respondent is part of
your target market
♦ Then Voluntaries on usage and
attitude
♦ Then Direct focused on areas of
special interest to you
Questionnaire for 2-Product Test
♦ Start with questions that verify
whether the respondent has used the
product (if you have not confirmed by
observation)
♦ Then ask for overall preference
♦ Ask for reasons for preference
♦ Direct questions on areas of special
interest to you
Sample Questionnaire Part 1
♦ Good afternoon Ma’am, can you spare a
little time to help us develop a better
siomai?
♦ Here are two kinds of siomai
♦ We’d like to ask you to try each one and tell
us which you like.
♦ Let us start with the one on your right
♦ Now please sip this drink to cleanse the
flavor of the first siomai
Sample Questionnaire Part 2
♦ Now please try the other siomai
♦ Now can you please tell us which of
the two you prefer?
♦ Can you please tell us what you like
better about this siomai?
♦ Was there anything else you like
better about this siomai?
Sample Questionnaire Part 3
♦ Now can we talk about the other siomai
for a minute
♦ Was this other siomai better than the
other siomai in any way or not
♦ How was it better?
♦ Please tell me which of the two siomai
tasted more salty?
♦ Thank you very much for your time
Tone of Voice & Manner
♦ Try to maintain a steady volume and
speed
♦ Avoid sounding like you prefer one or
dislike one especially when referring to
one of them in questioning
♦ Keep your facial expressions neutral
♦ Don’t keep looking at one product
♦ Even if you are blessed with loving hands,
avoid caressing your own product
Packaging Materials
♦ Keep the products being tested in the
same packaging.
♦ For all products, same color,
materials, container, spoon, etc
♦ If one is a well known brand, remove
it from its packaging to avoid
identifying it and biasing the results
Be Neutral in Arranging Products
♦ Put them side by side in front of the
respondent
♦ Don’t hold your product close to
yourself while exiling the competitive
product farther away
♦ Alternate the ones on your right
♦ Alternate the order of giving
Who to Interview
♦ Test on your target market eg
♦ The class of people who go to the mall where
your store is
♦ People who seem to need the service offered by
your category
♦ People whose usage habits are those of your
target
How to Get a Good Sample
♦ Random choice of respondents
♦ You choose the sample while minimizing bias
♦ For example, big companies often use
♦ the list of barangays,
♦ then pick a random number to start on the list,
♦ then use a fixed interval to get the rest of the
sample
♦ And limit the number per barangay, eg 6, to
spread out the sample and avoid risk of bias
Random Choice
♦ If you have a store, you might pick every
fifth visitor, or every third passer-by who
meets an age target and socio economic
profile
♦ Not only to spread your sample
♦ But also to avoid having one respondent
watch the previous one being tested,
hearing the questions and becoming biased
Family and Friends
♦ Many small businessmen cannot afford even going out to
test so they test on friends or relatives
♦ I recommend you avoid friends
♦ They may not want to offend and avoid giving
negative comments
♦ Better to get relatives but emphasize to them that you
want them to be honest
How Many to Get
♦ Big enough for decision you need to
make
♦ Formal research by big companies often
use
♦ 300 for go/no go to market decisions
♦ 100 for screening tests where another
test will follow which can confirm the
findings
How Many to Get?
♦ Suggest minimum of
♦ 60 for big decisions, more if you can get
them
♦ 30 for small or screening decisions
♦ But frankly, I strongly recommend you find a
way to do research even if you get just 10 to
20.
♦ Will give you better basis for decision
making than not doing any
Part 2: Capturing Marketing Insights
Group Presentation: Present an actual marketing
research data and discuss actual insights
obtained from information generated.
