Punjab College of Technical Education, Ludhiana
Course Module
SUBJECT: Marketing Research (BB 504)
CLASS: BBA Vth Semester
COURSE INSTRUCTOR: Anshu Singh (email id : knowanshu@gmail.com )
MARKETING RESEARCH
Research is essential in every field of management. Business decisions cannot be taken without proper research and all forms of organizations need research in some form of the other. Research highlights the problems of business so that corrective measures can be taken. Further, it shows path for growth and opportunity in business. Hence this course helps in analyzing business problems and opportunities in a more scientific manner.
Course Objectives
To introduce students to the field of marketing research and how it can help managers make better marketing decisions
To teach students data collection and analysis techniques so that they can apply it to real life business situations
Classroom Policies
Cell Phones!! Not to be used under any circumstances during the lecture
Assignments!! All assignments have to be submitted on time and no excuses for late submissions will be entertained. The class representative has to collect the same and submit it on the scheduled date.
Punctuality - I am a firm believer of this policy. Once I have entered the class and the attendance is complete, no one will be allowed to enter the class.
Active participation is required in the class. Students are expected to ask question in a disciplined manner by raising their hands or standing up at their place.
Copying of assignments is not allowed and. Your hard work will pay you in the long run and will go a long way in developing your creative thinking and empowering your minds.
Grading and performance evaluation
External assessment – 60 marks
Internal assessment – 40 marks
Weight age of Internal Assessment (40 marks):
Mid semester examination – 15 Marks
Tests – 10 Marks
Assignments – 5 Marks
Presentation / Project Report – 10 Marks
No of Assignments: 03
Case Studies: 05
Project Report: 1
The students will be required to give a brief presentation of their project reports. The students can choose an area of research as per their choice in any field of management (marketing, human resource, finance etc.) The format of the report will be told to them during the semester. The report will be submitted by them on scheduled date towards the end of the semester when they have learnt all the data collection and analysis techniques.
Lectures
S. No. Topics Assignment Test Case Study
1 Introduction of the class
Overview of the Subject- Relevance of the subject, Requirements of the course, Project
2 Definitions of Marketing Research
- Scope of Marketing Research
Marketing Research Companies
Assignment 1
3
Types of Research
- Analytical
Analyse the facts to make critical evaluation
- Descriptive
Describe the state of affairs as it exists at present
- Applied
Finding a solution for an immediate problem facing society or business
- Fundamental
Concerned with generalization & with the formulation of a theory
- Quantitative
Applicable to the phenomena that can be expressed in terms of quantity
- Qualitative
Phenomena relating to quality or kind. Important In behavioural sciences
- Conceptual
Related to some abstract idea or theory
- Empirical
Relies on experience or observation, it is data based research
4 Defining the Research Problem
-Statement of problem in general way
-Understanding the nature of the problem
-Surveying the available literature
-Developing the ideas through discussions
-Rephrasing the research problem
Difference between Management Problem and Marketing Research Problem
5 Case study- Lexus 1
6 Research Designs
Meaning & Concept of Research Design
-Blueprint for the collection, measurement & analysis of data
Research Design: Exploratory Research
For formulating a problem
For discovery of ideas & insights
- Focus Group Interview
- In -depth Interview
- Projective Techniques
- Cartoon Tests
7,8 Concepts relating to research design
-Dependent & Independent Variable
-Extraneous variable
-Control
-Confounded relationship
-Experimental & Control Groups
-Treatment
Research design : Causal research
Informal Research Designs:
- Before & after without control
- Before & after with control
- After only with control
9, 10 Activity- Conducting Focus Group Interview
11 Case: Central Library
12 Application of Marketing Research
Product Research
New Product Development Process
Test Marketing
13 Case- Mc Ketchup in Europe 2
14,15 Sales Analysis
-refers to the analysis of actual sales results
Market Potential Analysis
Sales Forecasting
16,17 Advertising Research
Media Research
Copy Testing
Activity- Conducting Advertising Recall test
18 Distribution Research
Warehouse Research
Retail Location Research
19 Sampling Design:
It is a definite plan for obtaining a sample from a given population
Population
Basic concepts of Sampling
- Sampling unit
- Sample size
- Sampling Frame
Types of sampling:
Non-Probability sampling techniques
- Every item of the population does not have equal chance of being selected in the sample
-Sample are selected deliberately by the researcher
• Convenience Sampling
Based on the convenience of the researcher
• Judgement Sampling
Sample is purposively selected
• Quota Sampling
Population is divided into independent or interrelated quotas by researcher. Sample is selected from these quotas
20 Probability Sampling techniques
- Every item of the universe has an equal chance of inclusion in the sample
• Simple Random sampling
• Systematic Sampling
First unit selected randomly & the remaining selected at fixed intervals
• Cluster sampling
Divide the population into small areas called clusters
Selecting few clusters as sample
• Area sampling
If clusters formed are geographic subdivisions then known as area sampling
• Multistage Sampling
Sampling is done in stages
• Stratified sampling
Population divided into homogeneous sub-groups known as strata. Items are selected from these strata using random techniques.
21 Case study- A Three Star Hotel 3
22 Primary Scaling techniques
- Nominal
- Ordinal
- Interval
- Ratio
Comparative scales
- Paired comparison
- Rank order
- Constant Sum scale
- Q-Sort
Non-Comparative scales
- Likert
- Semantic
Stapel
23 Methods of collecting primary data:
- Observation method
Researcher observes the situations without asking from the respondent
- Interview method
Researcher has face to face contact with respondents and ask their views
- Schedules
24 Questionnaire method
- Main aspects of a questionnaire
- Guidelines for construction of a Questionnaire
Secondary data collection
- Sources
- Benefits
Assignment 2
25 Data preparation :
Processing of data – Editing
- process of examining the collected raw data to detect errors & omissions.
Coding
- process of assigning numerals or other symbols to answers
Classification of Data
- placing the data with common characteristics into a number of groups or classes
26 Tabulation of data
-summarising raw data and displaying the same in the form of statistical tables for further analysis
27 Case Assignment - Analysis of Data 3
28 Analysis of data using simple measures – percentage, mean, standard deviation
29 Hypothesis
- A mere assumption or some supposition to be proved or disproved.
Null & Alternate hypothesis
Level of significance
Confidence Level
Type I and Type II error
30 Case- Comparative advertising 5
31 Parametric test
- These tests assume that parameters such as mean, std. deviation, etc. exist & are used in testing a hypothesis.
Z-test
- used for judging the significance of different statistical measures like mean, median, mode, etc.
-used when sample is large or when population variance is known
32 T-test
-used for judging the significance of a sample mean or for judging the significance of difference between the means of two samples
-used in case of small samples or when population variance is not known
33 Problems related to hypothesis testing
34 Non-Parametric tests
- these are distribution-free tests
- Chi-Square test
35 Test from whole syllabus
Total Lectures for Course Planned: 35
In addition to this some lectures will be planned for guiding students for their projects.
TESTS
There will be short answer test before every chapter that has already been covered by students in Research Methodology subject in their 4th semester
ASSIGNMENT TOPICS
1. Importance of Research in Management.
2. Conduct an online data search to obtain background information on an industry of your choice. Search should encompass both qualitative and quantitative information.
3. A case (attached) will be given to do tabulation based on some information.
ACTIVITIES
1. Students will be divided in group of four and they need to conduct focus group interviews for any product or service and present findings in the class.
2. Conducting advertising recognition and recall test- unaided and aided.
3. Students will be divided into groups of four and are suppose to act as entrepreneurs and will be asked to discuss the various parameters that they would want to research upon before starting any business of their own choice.
Suggested Readings:
1. Marketing Research by G.C Beri
2. Marketing Research by D.D Sharma
Books for additional reference:
1. Marketing Research by Naresh Malhotra
2. Business Research Methods by Donald R. Cooper and Pamela S. Schindler
CASE STUDIES
Following case studies will be covered during the semester and has been attached with course module:
S.No. Case study Description
1 Lexus: Imparting Value to Luxury and Luxury to Value Identifying Management decision problem and formulating marketing research problem.
Drafting Research Questions.
2 Central Library Selection of Research Design for the study
3 McKetchup in Europe Use of experimental and test marketing techniques
4 A Three Star Hotel Understanding Sampling techniques
5 Comparative Advertising Understanding concept of null and alternate hypothesis
CASE – 1
Lexus: Imparting Value to Luxury and Luxury to Value!
In the 1980’s Toyota developed a concept for a new car that was destined to be a success. The concept of the car, which was to be called Lexus, was based on the observation that there was a large affluent market for cars that could boast exceptional performance. A significant portion of that market ranked value highly. However they were unwilling to pay the extraordinary expensive prices that Mercedes charged for its high performance vehicles. Toyota planned to target this market by creating a car that matched Mercedes on the performance criteria but was priced much more reasonably, providing consumers the value they desired and making them feel that they were smart buyers.
Toyota introduced the Lexus(www.lexus.com) in 1989with much fun fare. A clever advertising campaign announced the arrival of this new car. For example, one ad showed the Lexus next to a Mercedes with the headline,” The First Time in History That Trading a $73,000 Car for a $36,000 Car Could be Considered Trading Up”. Of course, Lexus had all the details that Mercedes did: a sculptured form, a quality finish, and a plush interior. The detail was not, however, limited to the car. Separate dealerships were created that had the type of atmosphere that affluent consumers expected from a luxury car maker, including a grand showroom, free refreshments, and professional sales people.
Toyota placed a strong emphasis on performance of the new car. A package was sent to potential new customers that included a 12-minute video displaying Lexus’ superior engineering. The video showed that when a glass of water was placed on the engine block of Mercedes and Lexus, the water shook on the Mercedes while the Lexus had a virtually still glass of water. This visually told the viewer that the stability of Lexus was far more extraordinary than even one of the most expensive cars around. Another video showed a Lexus making a sharp turn with a glass of water on its dashboard. The glass remained upright; again, the Lexus proved itself. These videos were successful in bringing in customers, whose expectations were surpassed.
As a result of its continued success, Lexus decided to raise the prices of their vehicles. However, this strategy did not work out as well as Lexus had hoped. Lexus realized that it lacked the heritage for prestige that European Luxury cars command and that people are once again willing to pay extra for it. It has, as a result, turned to a new advertising campaign to inspire an emotional response to its cars. The campaign was exceptionally powerful because it had to also combat the decrease in growth of the luxury car market compared to the auto industry’s overall growth. Partly responsible for this decline the “near luxury” autos have skimmed away potential luxury auto consumers. Included in this group are the Toyota Avalon, the Nissan Maxima, and the Mazda Millennia. BMW and Mercedes also introduced products for this segment: the BMW 3 Series and the Mercedes C Class.
In response to this competition, Lexus emphasized non traditional advertising and promotion, in addition to more mainstream luxury car advertisements. While many companies that rely heavily on commercial advertising are upset with Tivo (the new television viewing system that allows users to filter out commercials), Lexus positioned Tivo to its advantage. Lexus sponsored a “New world of Luxury” sweepstakes where the prize was a new ES300. Tivo users used their system to search for Lexus commercials to search for clues to questions that Lexus posted on Tivo promotional page. The sweepstakes ran from November 12-december 14, 2001 and kept Tivo users watching Lexus commercials rather than filtering them out.
Lexus continues to show the automobile industry and its current customers that it is building vehicles with luxury, performance and style. In 2001, JD Power & Associates ranked the Lexus luxury car number one in durability for the seventh year in a row. The award was based on the number of problems reported by 40,000users of small trucks and passenger cars. Also in 2001, Lexus was ranked number one in retention of customers for the second year in a row and named number one in customer satisfaction with dealer service by JD Power & Associates.
As a result of Lexus’ marketing efforts, in 2001 Lexus set a record of its own by selling a sizzling 206,037 units, which was an all-time sales record for the luxury automaker. With this, Lexus became the top selling luxury brand, edging out Mercedes Benz . in 2001, Lexus was named best selling luxury brand for the second year in a row. The company sold 223,983 new vehicles, an increase of 8.7 percent over 2000.
CASE STUDY-2
The Central Library
In a metropolitan city, the Municipal Corporation is seriously considering to boost up the ‘library movement’ in the city. It is already having a Central Library with four branches in different locations of the city. It feels that the existing libraries are not fully utilized. Most of the people who visit the libraries spend their time in reading newspapers and magazines for which a separate room is allocated within the libraries. The Chief Librarian along with four branch librarians recently discussed several issues relating to their libraries. They almost unanimously decided to know precisely who the users of the library are, what is their educational background, social status, job etc. For this purpose, they want to sponsor a research study. A marketing research agency has been approached, which, in fact, suggested that an exploratory study is called for in this regard.
The agency felt that the scope of the research should be widened. It would like the study to be conducted into three phases. According to it, Phase I will be an exploratory research but instead of confining to users of library, non users should be covered, for this purpose. It suggested that two focus groups- one for users and another for non users be used. Each such group should have 8-10 persons. The users group should have persons from different branches as well as from the Central Library. As regards non users, it would be desirable to ensure that their group is broadly comparable with the user group.
The exploratory phase of the study should be followed by Phase II which would be confined to employees working in libraries. The agency felt that as the library staff is directly in touch with the users, they understand better the interests and problems, if any, of the users. They should also be encouraged to offer suggestions based on their experience in dealing with the public.
The Agency recommended Phase III of the study exclusively fro the general public. The respondents can be split into two categories, viz. those having telephones and those who have no telephones. The questions will be on their attitudes towards libraries, how important and useful can be in improving their knowledge as well as the feeling that the time spent in reading books borrowed from libraries is well-spent. In addition, they will be asked to indicate the subjects in which they are interested and the timings that suit them most
Questions
1. Evaluate each phase of the research proposal indicating how far it is feasible and appropriate.
2. Is it possible to improve the research design comprising all the three phases as given above? If so, what improvements would you recommend?
CASE- 3
McKetchup in Europe
McDonald’s is the largest and best known global food service retailer with more than 26,000 restaurants in 119 countries. Yet on any day, even as the market leader, McDonald’s serves less than 1% of the world population. McDonalds’ vision is “To be the world’s best quick service restaurant experience. Being the best means providing outstanding quality service, cleanliness and value, so that we make every customer in every restaurant smile”. The company also operates other restaurant concepts including aroma café, Chipotle Mexican Grill and Donatos Pizza.
The company seems to be doing quite well. It has produced high return to shareholders with a compound annual total return of 21%over the past ten years. But in some European markets, the numbers are not so rosy. McDonald’s is trying to make up for sluggish restaurant sales thereby introducing a strategic extension program, starting with the launch of its own brand ketchup, which is a popular product world wide. Consider the following examples:
• United states—Ketchup is a must with the American icons, hamburgers and French fries.
• Sweden—Swedes pour ketchup on plain pasta such as ziti. Sweden also buys the most ketchup on a per capita basis, followed by Australia , the united states, Canada and Germany
• Thailand—teens in Thailand dip potato chips in ketchup for a snack.
• Asia—Asians like ketchup with seafood, especially when deep-fried or stir fried.
• Canada—Canadians love ketchup on hot dogs, sausages, and brats.
• Eastern Europe—in eastern Europe ketchup is a favorite pizza topping.
• Great Britain—Brits like their fish and chips with ketchup and they like it very sweet.
• Spain and India—both Spaniards and Indians pour ketchup on omelets and other egg dishes.
McDonald’s is test marketing its ketchup in supermarkets located in Germany, Austria and Poland. It has also launched a range of branded children’s clothing and shoes through Wal-Mart stores in the United States. Jake Greenberg , chief executive at McDonald’s, said “we have an obligation to explore ways to leverage our brand. This is an enormous opportunity to find new streams of income”.
After only a few months on the market, McDonald’s ketchup has captured 3% of the German ketchup market, lagging far behind Heinz with 22% market share. It fairs about the same in other markets.
Case Questions
1. You have been hired by McDonald’s to test market its ketchup in other European markets. Your goal is to find out how target consumers feel about the taste of ketchup. Which type of experimental design will you use if any? Which test market technique(s)will you use? Why?
2. Do you feel it is necessary to use different technique to test market the product in different countries? If so, why? If not, why not?
CASE STUDY- 4
A Three-Star Hotel
A three- star hotel located in Delhi has been experiencing a decline in its occupancy during the past one year. The management has recently reviewed the problem and is seriously considering to attract business executives as also to provide adequate facilities for holding business conferences, workshops, etc.
Since this would involve some renovation of the existing building in addition to new furniture and equipment, the management wants to be cautious in undertaking such as expenditure. Since its inception several years ago, the hotel has been maintaining a complete record of its guests. When a person visits the hotel for the first time, details such as his name, age, sex, permanent address, purpose of visit and duration of stay along with dates are entered on a card. All subsequent visits along with the duration of stay are dated and recorded on the same card.
The guest file has expanded tremendously containing over 8000 cards. The management wants to make use of this readily available information along with any additional information necessary in this regard.
Questions
Assuming that the management has entrusted you with this job, answer the following questions:
1. Specify the statistical universe implicit in the management’s choice of the sample.
2. If a sample is to be drawn from the guest file, describe the procedure you would adopt in each of the following sample designs:
a. Simple Random Sampling
b. Systematic Random Sampling
c. Stratified Random Sampling
d. Cluster Sampling
3. Which one of these sampling designs would you select and why?
4. Specify the nature of data that you would collect from the sample respondents.
CASE – 5
Comparative Advertising: Can It Be Used in Foreign Markets?
Comparative ads in the united states are nothing new. Wendy’s “where’s the beef?” taunted rival McDonald’s. coke and Pepsi have battled on-the-air for decades through taste tests and preference insinuations. Dominos Pizza has lightheartedly compared its delivery service to Pizza Hut’s. indeed, comparative advertisements are popular in the United states, particularly since their usage was encouraged in a Federal Trade Commission ruling in the early 1970’s. it has been estimated that 30% to 40% of all advertisements are comparative. But what would happen if an American company wanted to go to another country and compare its products with a competitors products? After all, American companies are venturing abroad in record numbers. A researcher sought to find the answers by examining cross country differences in comparative advertising effectiveness.
The point was made that the legal aspect of comparative advertising is an important concern. But cultural differences may make product comparisons taboo. In many countries the advertising, community has an implicit understanding that comparative advertisements will not be used. It is often assumed that such advertising is not effective and that the people will not like it. To obtain a clear understanding of comparative advertising and attitudes towards them, the researcher obtained data from a variety of sources (books, and articles, interviews with ad agencies, personal interviews with residents) in 17 countries. The following hypotheses were offered:
o Comparative advertisements are recalled more than non-comparative ads.
o Respondents’ country of origin affects their recall of comparative advertisements
o Attitude toward comparative advertisements is more negative than the attitude toward non-comparative advertisements
o Attitude towards comparative advertisements is especially negative in countries where they r not widely used or not used at all.
The following conclusions were stated:
• Comparative ads were recalled more than non comparative advertisements.
• Respondents’ country of origin did not seem to affect the recall of comparative advertising. Even respondents in countries where comparative advertising is rarely used recalled comparative advertisements.
• All respondents tended to have a more negative attitude toward comparative advertisements than toward non comparative ads.
• Attitude towards comparative ads was especially negative for respondents in countries where comparative ads are not widely used or are used rarely.
Case Questions
1. State the null hypothesis (or null hypotheses)
2. Which hypotheses were supported and which were unsupported?
3. Does this study appear to use univariate statistical techniques? Support your claim
