MKTG2010 Lecture 1_2010

MKTG2010 Marketing ResearchLecturer: Chong Kin Frank BOEYCourse Co-ordinator: Stacey Baxter

Course Objectives1. 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 week2 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

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

Learning ObjectivesDefine 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 designs1.

Marketing and Marketing Research

MarketingSatisfying consumers needs and wants Highlights the importance of customers

Gather information

Marketing Research

Learning Objective 1: Define and Classify Marketing Research

Defining Marketing Researchthe 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 ResearchThe 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 ResearchMarketing 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 DSSInformation 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 needsLearning Objective 2: Role of Marketing Research in Business Decision Making

The role of Marketing Research in MMIS and DSSInformation 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 ExternalFull 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 ProcessStage 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 ReportZikmund and Babin, 2010, p. 57

Learning Objective 3: Steps of the marketing research process

Marketing Research Process

Step 1: Defining the ResearchResearcher 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 DefinitionSymptoms vs. Management Decision Problem

Learning Objective 4: Activities involved in defining the research problem

Problem DefinitionMedical Model Symptoms1. 2. 3. Headache Vomiting Lack of Energy

Problem

TreatmentLearning Objective 4: Activities involved in defining the research problem

Problem DefinitionMarketing ExampleA 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.

Symptoms1. 2. Plateau in sales Plateau in site visitors Problem

Problem DefinitionMarketing ExampleA 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.

Symptoms1. 2. Plateau in sales Plateau in site visitors

MDPShould the promotional budget be increased?

Learning Objective 4: Activities involved in defining the research problem

Problem DefinitionDefining 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 DefinitionSet 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 DefinitionMarketing Example Symptoms1. 2. Plateau in sales Plateau in site visitors MDPShould the promotional budget be increased?

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

Problem DefinitionMDP vs MRP

Management Decision ProblemAction oriented

What actions should be taken Focus on symptoms

Marketing Research ProblemInformation oriented

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

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-behavio