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MKTG2010 Marketing Research Lecturer: Chong Kin Frank BOEY Course Co-ordinator: Stacey Baxter

MKTG2010 Lecture 1_2010

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Page 1: MKTG2010 Lecture 1_2010

MKTG2010Marketing Research

Lecturer: Chong Kin Frank BOEY

Course Co-ordinator: Stacey Baxter

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Course Objectives1. Understand the context and environment in which

marketing research takes place; 2. Apply marketing research principles and concepts;3. Select from and utilise a range of both qualitative and

quantitative data collection techniques;

4. Demonstrate a knowledge of secondary and syndicated data sources in Australia;

5. Design a research project including a sampling plan and a survey instrument;

6. Summarise and present data orally, graphically and in a written report; and

7. Critically evaluate marketing research.

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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

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Assessment

See pages 10 – 12 of Course Outline

Assessment Item

Related Learning Outcomes

Weighting(%)

DueDate

Method of Submission

Returnable (yes/no)

Assessment Tasks 2, 6 20 On-goingTurnitin via

BlackboardYes

Class Examination 1, 3, 4 10 22 or 23 JuneDuring tutorial

Week 8No

Major Project 2, 3, 5, 6 35 30 July 2010To Lecturer, plus

TurnitinYes

Formal Examination 1 - 7 35 In exam periodFormal exam

processNo

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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

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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

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MKTG2010Marketing Research

Lecture 1

Introduction to the Research Process:

Problem Definition and Secondary Data

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Learning Objectives1. 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

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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

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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

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Function of Marketing Research

Marketing Research The function which

links the customer, consumer and public to the marketer through INFORMATION

Learning Objective 1: Define and Classify Marketing Research

Identify and define market opportunities and problems

Predict likely costs and benefits prior to making a

commitment

Monitor, evaluate and improve marketing

performance

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Classification of Marketing Research

Learning Objective 1: Define and Classify Marketing Research Malhotra et al., 2008, p. 12

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

Marketing Research

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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

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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 maker’s responsibilities, style and information needs

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

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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

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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

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Marketing Research Process

Formulating Conclusions and Preparing the ReportStage 6

Defining the Research

Research Design

Sampling

Data Collection

Data Analysis

Stage 1

Stage 2

Stage 3

Stage 6

Stage 5

Learning Objective 3: Steps of the marketing research process

Zikmund and Babin, 2010, p. 57

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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

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Problem Definition

Symptoms

vs.

Management Decision Problem

Learning Objective 4: Activities involved in defining the research problem

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Problem Definition

Medical Model

Symptoms

1. Headache

2. Vomiting

3. Lack of Energy

Problem

Treatment

Learning Objective 4: Activities involved in defining the research problem

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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. Plateau in sales

2. Plateau in site visitors Problem

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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. Plateau in sales

2. Plateau in site visitors

MDP

Should the promotional budget be increased?

Learning Objective 4: Activities involved in defining the research problem

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Problem Definition

Defining a Marketing Research Problem (MRP)

A MRP should:

1. Guide researchers to information required to address MDP

2. Assist researchers in formulating specific research objectives

3. Suggest possible ways the data could be collected (research design)

Learning Objective 4: Activities involved in defining the research problem

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Problem Definition

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

Set Decision Criteria

Learning Objective 4: Activities involved in defining the research problem

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Problem Definition

Marketing Example

Symptoms

1. Plateau in sales

2. Plateau in site visitors

Learning Objective 2: Defining the marketing research problem (MRP)

MDP

Should the promotional budget be increased?

MRP

What factors influence consumers awareness of online retail stores?

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Problem DefinitionMDP 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

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Problem DefinitionMDP vs MRP

ExamplesMDP: 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’

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Problem Definition

1. Executive Summary2. Introduction3. Background4. Management Decision Problem (MDP)5. Marketing Research Problem (MRP)6. Scope of the project (purpose, limitations)7. Proposed research design (if known)8. Reporting requirements9. Timing10. Budget11. Materials12. Contractual Agreements13. Requirements for proposals14. Project management

Research Brief

Learning Objective 4: Activities involved in defining the research problem

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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

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Problem DefinitionMarketing Example

Symptoms

1. Plateau in sales

2. Plateau in site visitors

MDP

Should the promotional budget be increased?

MRP

What factors influence consumers awareness of online retail stores?

MRO

To determine consumer awareness of current click-through advertisements.

Learning Objective 4: Activities involved in defining the research problem

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Research Objectives

MDP MRQs MROsShould the retail chain store offer in-home shopping via the Internet?

Are consumers aware of Internet home shopping systems?

What are consumers’ reactions to Internet shopping?

Determine consumer awareness with aided recall.

Measure consumer attitudes and beliefs about home shopping systems.

Should seniors be the primary target market?

Will consumers use the service?

Are there different demographic groups?

Who are the best prospects?

Measure purchase intentions.

Estimate likelihood of usage.

Compare awareness, evaluations, purchasing intentions of high vs. low income groups

Learning Objective 4: Activities involved in defining the research problem

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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

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Secondary Data

Primary and Secondary Data

Primary Data Secondary Data

Collection Purpose

For the problem at hand

For other problems

Collection Process Very Involved Rapid and Easy

Collection Cost High Relatively Low

Collection Time Long Short

Learning Objective 5: Distinguish secondary data from primary data

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Secondary DataAdvantages and Disadvantages

Advantages Disadvantages

Can be secured quickly

Inexpensive

Easily accessible

Unknown Accuracy

Relevance to problem

Learning Objective 6: Nature and scope of secondary data

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Secondary Data

Evaluating Secondary Data

1. Specifications

2. Error

3. Currency

4. Objective

5. Nature

6. Dependability

Learning Objective 6: Nature and scope of secondary data

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Secondary Data

Types of Secondary Data

Learning Objective 7: Sources of Secondary Data

Ready to Use

Requires further

processing

Internal

Published Materials

Computerised Databases

Syndicated Services

External

Secondary Data

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Secondary Data

Sales invoices Salesperson calls responses Salesperson expense account Warranty cards

Internal Sources

Internal are easily available and inexpensiveInternal secondary sources are generally the least costly of

ANY source of marketing research information

Learning Objective 7: Sources of Secondary Data

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Secondary Data

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

Learning Objective 6: Sources of Secondary Data

External Sources

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Secondary Data

Literature Review

Babbie, 2001

Research Topic

What is already known or thought about the topic

Construct the Model

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Secondary Data

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

Literature Review

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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

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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

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Classifying Research Designs

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

Research Design

Conclusive ResearchExploratory Research

Descriptive Research Causal Research

Cross-sectional Design

Single Cross-sectional

Longitudinal Design

Multiple Cross-sectional

Malhotra et al., 2008, p. 66

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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

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Three Types of Research Designs Exploratory

To understand...develop hypotheses…why…?

Descriptive To measure the state…what is...?

Causal To test hypotheses

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

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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

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Exploratory ResearchWhat 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

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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

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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

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Cross-sectional versus Longitudinal Designs

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

Evaluation CriteriaCross Sectional Research Design

Longitudinal Research Design

Detecting change - +

Large amounts of data collection - +

Accuracy - +

Representative Sampling + -

Response Bias + -

Malhotra et al., 2008, p. 73

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Causal Research A type of conclusive research

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

x y 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

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Comparing Research Designs

Exploratory Descriptive Causal

ObjectiveDiscovery of ideas and

insights

Describe market characteristics or

functions

Determine cause-and-effect-relationships

CharacteristicsFlexible and versatile

Often the front end of the total research design

Marked by the formulations of specific hypotheses

Manipulation of one or more independent

variables

Methods

Expert surveysPilot surveys

Secondary dataQualitative research

Secondary dataSurveysPanels

Observational and other data

Experiments

Malhotra et al., 2008, p. 69

Learning Objective 9: Distinguish between various research designs

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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

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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

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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

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

Refer to Malhotra et al., 2008, p. 75

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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 haven’t 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

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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

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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

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Summary Marketing research provides information about

consumers, businesses, competitors, changes and trends in the marketplace, and other aspects of the firm’s 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.

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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