MKTG2010Marketing Research
Lecturer: Chong Kin Frank BOEY
Course Co-ordinator: Stacey Baxter
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.
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
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
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
MKTG2010Marketing Research
Lecture 1
Introduction to the Research Process:
Problem Definition and Secondary Data
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
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
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
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
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 maker’s 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
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
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. Headache
2. Vomiting
3. 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. Plateau in sales
2. 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. 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
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
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
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?
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
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’
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
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 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
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
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 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
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
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
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
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
Secondary Data
Books and Periodicals Government Sources Media Sources Trade Association Sources Commercial Sources
Learning Objective 6: Sources of Secondary Data
External Sources
Secondary Data
Literature Review
Babbie, 2001
Research Topic
What is already known or thought about the topic
Construct the Model
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
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
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
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 hypotheses…why…?
Descriptive To measure the state…what 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 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
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
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
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
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
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
Learning Objective 6: Identify potential causes of error in research designs
Refer to Malhotra et al., 2008, p. 75
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
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 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.
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