MKTG2010 Marketing Research

Lecturer: Chong Kin Frank BOEY

Course Co-ordinator: Stacey Baxter

Course Objectives
1. 2. 3.

4.

5.

6.

7.

Understand the context and environment in which marketing research takes place; Apply marketing research principles and concepts; Select from and utilise a range of both qualitative and quantitative data collection techniques; Demonstrate a knowledge of secondary and syndicated data sources in Australia; Design a research project including a sampling plan and a survey instrument; Summarise and present data orally, graphically and in a written report; and Critically evaluate marketing research.

Course Structure
 Three hours per week
2 Hour Lecture 1 Hour Tutorial/Lab
  

Activities, discussion, project work Week 2 8 Tutorial Room Week 9 12 Computer Lab

 Text:
Zikmund and Babin (2010) "Exploring Marketing Research" 10th edition, ISBN: 978-0-324-59376-1

Assessment
Assessment Item Assessment Tasks Class Examination Major Project Formal Examination Related Learning Outcomes 2, 6 1, 3, 4 2, 3, 5, 6 1-7 Weighting (%) 20 10 35 35 Due Date On-going 22 or 23 June 30 July 2010 In exam period Method of Submission Turnitin via Blackboard During tutorial Week 8 To Lecturer, plus Turnitin Formal exam process Returnable (yes/no) Yes No Yes No

See pages 10 12 of Course Outline

Assessment: Tutorial Tasks



Begin in Week 2!
 Task 1 (5%): Secondary Data (Week 4)  Task 2 (7%): Qualitative Analysis (Week 6)  Task 3 (8%): Model Development and Quantitative Survey (Week 9)

 All activities are required for your major project

Assessment: Major Project



Group hands-on project that will demonstrate your knowledge of the marketing research process A project brief will be given to you in Week 2

MKTG2010 Marketing Research

Lecture 1 Introduction to the Research Process: Problem Definition and Secondary Data

Learning Objectives
Define and classify marketing research 2. Explain the role of marketing research in business management decision making 3. List and explain the steps of the marketing research process 4. Describe the activities involved in defining the research problem (MDP, MRP and MROs) 5. Distinguish secondary data from primary data 6. Define the nature and scope of secondary data 7. Describe different sources of secondary data 8. Identify the link between research problem and research design 9. Classify and distinguish between various research designs: exploratory, descriptive and causal 10. Identify potential causes of error in research designs
1.

Marketing and Marketing Research



Marketing
Satisfying consumers needs and wants Highlights the importance of customers

Gather information

Marketing Research

Learning Objective 1: Define and Classify Marketing Research

Defining Marketing Research

the application of the scientific method in searching for the truth about marketing phenomena. These activities include defining marketing opportunities and problems, generating and evaluating marketing ideas, monitoring performance, and understanding the marketing process
(Zikmund and Babin, 2010, p. 7)

the systematic and objective identification , collection, analysis and dissemination of information undertaken to improve managerial decision making related to the solution of problems and opportunities in marketing
(Malhotra et al., 2008, p. 6-7)
Learning Objective 1: Define and Classify Marketing Research

Function of Marketing Research



Marketing Research
The function which links the customer, consumer and public to the marketer through INFORMATION

Identify and define market opportunities and problems Predict likely costs and benefits prior to making a commitment Monitor, evaluate and improve marketing performance

Learning Objective 1: Define and Classify Marketing Research

Classification of Marketing Research

Marketing Research

Problem identification research - Market potential research - Market share research - Image research - Market characteristics research - Sales analysis research - Forecasting research - Business trends research

Problem solving research - Segmentation research - Product research - Pricing research - Promotion research - Distribution research

Learning Objective 1: Define and Classify Marketing Research

Malhotra et al., 2008, p. 12

Who uses Marketing Research?



      

Manufacturers of non-durable goods - Colgate, Procter & Gamble Manufacturers of durables - Compaq, Sony Manufacturers of business products - Telstra Service companies - Banks, Hotels Non-profit organisations - Barnardos Retailers - David Jones, Coles-Meyer Advertising Agencies - Peach, Saatchi & Saatchi Media - Television stations

Learning Objective 2: Role of Marketing Research in Business Decision Making

The role of Marketing Research in MMIS and DSS

Information obtained via MR and sources, e.g., internal records and marketing intelligence, becomes an integral part of the management information system (MIS)


Marketing Management Information System (MMIS)

A formalised set of procedures for generating, analysing, storing and distributing pertinent information to marketing decision makers on an ongoing basis MMIS design focuses upon each decision makers responsibilities, style and information needs
Learning Objective 2: Role of Marketing Research in Business Decision Making

The role of Marketing Research in MMIS and DSS

Information obtained via MR and sources, e.g., internal records and marketing intelligence, becomes an integral part of the management information system (MIS)


Decision Support System (DSS)

An information system, which enables decision makers to interact directly with both databases and analysis models

Learning Objective 2: Role of Marketing Research in Business Decision Making

Marketing Research Suppliers

 

Internal: in-house marketing department External

Full Service: syndicated services, standardised services, customised ad hoc services, Internet services Limited Service: field services, coding and data entry services, analytical services, e-mail and Internet services, data analysis services, branded products and services

Learning Objective 2: Role of Marketing Research in Business Decision Making

Marketing Research Process

Stage 1 Stage 2 Stage 3 Stage 6 Stage 5 Stage 6 Defining the Research Research Design Sampling Data Collection Data Analysis Formulating Conclusions and Preparing the Report
Zikmund and Babin, 2010, p. 57

Learning Objective 3: Steps of the marketing research process

Marketing Research Process




Step 1: Defining the Research

Researcher accounts for:
Relevant background information Environmental context Information from problem or opportunity audit Project purpose Specific management decisions to be made Information needed to make the decisions Value of the project Project budget

Learning Objective 3: Steps of the marketing research process

Problem Definition
Symptoms vs. Management Decision Problem

Learning Objective 4: Activities involved in defining the research problem

Problem Definition
Medical Model
 Symptoms
1. 2. 3. Headache Vomiting Lack of Energy

Problem

Treatment
Learning Objective 4: Activities involved in defining the research problem

Problem Definition
Marketing Example
A newly established online retailer is has noticed a plateau in sales. Managers have also identified that the number of site hits has not increased in the past six months.

 Symptoms
1. 2. Plateau in sales Plateau in site visitors Problem

Problem Definition
Marketing Example
A newly established online retailer is has noticed a plateau in sales. Managers have also identified that the number of site hits has not increased in the past six months.

 Symptoms
1. 2. Plateau in sales Plateau in site visitors

MDP
Should the promotional budget be increased?

Learning Objective 4: Activities involved in defining the research problem

Problem Definition
Defining a Marketing Research Problem (MRP)
 A MRP should:
1. 2. 3. Guide researchers to information required to address MDP Assist researchers in formulating specific research objectives Suggest possible ways the data could be collected (research design)

Learning Objective 4: Activities involved in defining the research problem

Problem Definition
Set Decision Criteria


Decision maker has specified that they want their new advertisement to achieve:
Recall brand name Recall nutrition information Recall shape of product

An advertisement will be selected if:

25% of respondents correctly recall brand name Of those who recall the brand name, 80% must remember nutritional information 50% of respondents must recall the product has a unique shape

Learning Objective 4: Activities involved in defining the research problem

Problem Definition
Marketing Example
 Symptoms
1. 2. Plateau in sales Plateau in site visitors MDP
Should the promotional budget be increased?

MRP
What factors influence consumers awareness of online retail stores?
Learning Objective 2: Defining the marketing research problem (MRP)

Problem Definition
MDP vs MRP


Management Decision Problem

Action oriented

 What actions should be taken  Focus on symptoms

Marketing Research Problem

Information oriented

 What information is needed  How can it be obtained in the most feasible way?  Focus on underlying cause

Problem Definition
MDP vs MRP Examples
MDP: What should be done to increase sales of product Y? MRP: Determine the relative strengths and weaknesses of product Y against those of competitors MDP: Should the price be cut in response to a price cut by a competitor? MRP: Determine buyer-behaviour at various levels of price.

MDP: Should product X be introduced into the market? MRP: Assess possible market share and profit for product X

Problem Definition
Research Brief
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Executive Summary Introduction Background Management Decision Problem (MDP) Marketing Research Problem (MRP) Scope of the project (purpose, limitations) Proposed research design (if known) Reporting requirements Timing Budget Materials Contractual Agreements Requirements for proposals Project management

Learning Objective 4: Activities involved in defining the research problem

Research Objectives
 

Exact and specific description of information requirements Objectives should be practical, measureable and attainable Marketing research objectives contain words such as:
To determine, To measure To establish, To rate To rank, To compare

Marketing research objectives are the starting point for formulating

Who should be the target respondents and The range of questions to be asked
Learning Objective 4: Activities involved in defining the research problem

Problem Definition
Marketing Example
 Symptoms
1. 2. Plateau in sales Plateau in site visitors MRP
What factors influence consumers awareness of online retail stores?

MDP
Should the promotional budget be increased?

MRO
To determine consumer awareness of current click-through advertisements.
Learning Objective 4: Activities involved in defining the research problem

Research Objectives
MDP
Should the retail chain store offer in-home shopping via the Internet?

MRQs
Are consumers aware of Internet home shopping systems? What are consumers reactions to Internet shopping?

MROs
Determine consumer awareness with aided recall. Measure consumer attitudes and beliefs about home shopping systems. Measure purchase intentions. Estimate likelihood of usage. Compare awareness, evaluations, purchasing intentions of high vs. low income groups

Should seniors be the primary target market?

Will consumers use the service? Are there different demographic groups? Who are the best prospects?

Learning Objective 4: Activities involved in defining the research problem

Secondary Data
 Primary Data
Data originated by the researcher specifically to address the research problem

 Secondary Data
Data collected for some purpose other than the problem at hand

Learning Objective 5: Distinguish secondary data from primary data

Secondary Data
Primary and Secondary Data
Primary Data
Collection Purpose Collection Process Collection Cost Collection Time

Secondary Data

For the problem For other problems at hand Very Involved High Long Rapid and Easy Relatively Low Short

Learning Objective 5: Distinguish secondary data from primary data

Secondary Data
Advantages and Disadvantages
 Can be secured quickly  Inexpensive  Easily accessible  Unknown Accuracy  Relevance to problem

Advantages

Disadvantages

Learning Objective 6: Nature and scope of secondary data

Secondary Data
Evaluating Secondary Data
1. 2. 3. 4. 5. 6. Specifications Error Currency Objective Nature Dependability

Learning Objective 6: Nature and scope of secondary data

Secondary Data
Types of Secondary Data
Secondary Data

Internal

External

Ready to Use

Requires further processing

Published Materials

Computerised Databases

Syndicated Services

Learning Objective 7: Sources of Secondary Data

Secondary Data
Internal Sources
   

Sales invoices Salesperson calls responses Salesperson expense account Warranty cards

Internal are easily available and inexpensive Internal secondary sources are generally the least costly of ANY source of marketing research information
Learning Objective 7: Sources of Secondary Data

Secondary Data
External Sources
    

Books and Periodicals Government Sources Media Sources Trade Association Sources Commercial Sources

Learning Objective 6: Sources of Secondary Data

Secondary Data
Literature Review
Research Topic

What is already known or thought about the topic

Construct the Model

Babbie, 2001

Secondary Data
Literature Review


Reviewing literature helps in establishing theoretical frameworks and constructs/variables of interest Active Review Goal-oriented searching for particular issues, relevant to the problem at hand Passive Review On-going process of keeping up-to-date by reading recent publications and attending industry conferences

Marketing Research Process



Step 2 and 3: Research Design and Sampling

Framework for conducting the research involving:
     

Target market definition Qualitative and quantitative data-collection methods Sampling process and size Measurement and scaling procedures Questionnaire design Data analysis approach

After formulation costs estimated and compared to budget and then compilation of a research proposal
Learning Objective 3: Steps of the marketing research process

Research Design
How will the research be done?


A framework/blueprint for conducting the marketing research project.

It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve marketing research problems.

Learning Objective 8: Identify link between research problem and research design

Classifying Research Designs

Research Design

Exploratory Research

Conclusive Research

Descriptive Research

Causal Research

Longitudinal Design

Cross-sectional Design

Single Cross-sectional

Multiple Cross-sectional
Malhotra et al., 2008, p. 66

Learning Objective 8: Identify link between research problem and research design

What design will be used?



The type of research you use will depend on:

The nature of the problem Your research goals/objectives/questions The type of analysis you wish/need to do Time, cost and capabilities of researchers

Which one?


What helps employees deliver high levels of service quality? Which advertisements for chocolate, A or B, produce better recall of information?
Learning Objective 8: Identify link between research problem and research design

Three Types of Research Designs



Exploratory
To understand...develop hypotheseswhy?

Descriptive
To measure the statewhat is...?

Causal
To test hypotheses

Learning Objective 8: Identify link between research problem and research design

Exploratory Research


One type of research design which has as its primary objective the provision of insights into and comprehension of the problem situation confronting the researcher. Secondary data is often used

Learning Objective 9: Distinguish between various research designs

Exploratory Research
What is it and what is it not?


Initial research conducted to clarify and define the nature of a problem. May be a single investigation or series of informal studies to provide background information. Most provide qualitative data focusing on words and observations NOT quantification. Purpose is to gain greater understanding of a concept or crystallise a problem NOT to determine the amount or extent of some phenomenon in terms of numbers.
Learning Objective 9: Distinguish between various research designs

Descriptive Research


Describes something
usually market characteristics or functions
 

segment & target markets e.g. identify differences in needs, attitudes, behaviours

Clear specification needed of The Six Ws who, what, when, where, why, way Assumes: prior knowledge of the subject by the researcher Is pre-planned, structured & quantitative Based on large, representative samples

  

Learning Objective 9: Distinguish between various research designs

Descriptive Research


Cross-sectional Research Design

One questioning One sample or multiple? True reflection of behaviour or attitude? Traditional marketing research

Longitudinal Research Design

Repeated questioning Actual behaviour over time Changes in individual or group behaviour or attitude

Learning Objective 9: Distinguish between various research designs

Cross-sectional versus Longitudinal Designs

Evaluation Criteria Cross Sectional Research Design Longitudinal Research Design

Detecting change Large amounts of data collection Accuracy Representative Sampling Response Bias

+ +

+ + + Malhotra et al., 2008, p. 73

Learning Objective 8: Identify link between research problem and research design

Causal Research


A type of conclusive research

the major objective is to obtain evidence regarding cause-and-effect (causal) relationships

x
 

Requires a planned and structured design Independent variables are manipulated in a relatively controlled environment
Experiments are the main method

Learning Objective 9: Distinguish between various research designs

Comparing Research Designs

Exploratory Objective
Discovery of ideas and insights Flexible and versatile Often the front end of the total research design Expert surveys Pilot surveys Secondary data Qualitative research

Descriptive
Describe market characteristics or functions Marked by the formulations of specific hypotheses Secondary data Surveys Panels Observational and other data

Causal
Determine cause-andeffect-relationships Manipulation of one or more independent variables

Characteristics

Methods

Experiments

Malhotra et al., 2008, p. 69

Learning Objective 9: Distinguish between various research designs

Marketing Research Process



Step 4: Data Collection

Data collection involves using a field team or collecting via mail, Web Selection, training, supervision, output validation and evaluation vital to fieldwork Process managed to minimise interviewing errors and maintain quality

Learning Objective 3: Steps of the marketing research process

Potential Sources of Error



Total error
Variation between true mean value in the population variable of interest and the observed mean obtained during the marketing research project

Total Error = True mean value + Observed mean value

Learning Objective 10: Identify potential causes of error in research designs

Potential Sources of Error



Total error is comprised of:

Random Sampling Error Non-sampling Error  Response Error
Researcher errors Interviewer errors Respondent errors


Non-response Error
Refer to Malhotra et al., 2008, p. 75

Learning Objective 6: Identify potential causes of error in research designs

Potential Sources of Error



Good design attempts to control error sources

Understand how to get a suitable sample, and explain the process Take great care in developing interview questions and/or surveys and pre-test (pilot) them Talk about non-response error in survey research (What do all the people you havent consulted think?) Discuss the limitations of your design what are the issues?
 

Qualitative researcher bias / interpretation of data Quantitative designs cross-sectional surveys (one snap-shot)

Learning Objective 10: Identify potential causes of error in research designs

Marketing Research Process



Step 5: Data Preparation and Analysis

Data preparation is concerned with having a complete set of valid data Data analysis gives meaning to the data Tasks include:
 

Checking, editing, coding Transcription, verification, data cleaning

Learning Objective 3: Steps of the marketing research process

Marketing Research Process



Step 6: Report Preparation and Presentation

Written reports include:
     

Research questions Description of the approach Research design Data collection and analysis procedures Results and major findings Executive summary

Presentations often used

Learning Objective 3: Steps of the marketing research process

Summary


Marketing research provides information about consumers, businesses, competitors, changes and trends in the marketplace, and other aspects of the firms external environment. The purpose of marketing research is to help management make informed decisions. Marketing research is systematic and objective in its quest to identify and help solve marketing problems. A research design is a framework or blueprint for conducting the marketing research project.

Summary continued
  

 

Research designs may be broadly classified as exploratory, descriptive or causal. Exploratory research provides insights into problems. Descriptive research describes market characteristics or functions and requires a clear specification of who, what, when, where, why, and way of the research. Causal research is designed for the primary purpose of obtaining evidence. Non-sampling error consists of non-response and response errors. Response error encompasses errors made by researchers, interviewers and respondents