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Lecture 1
Introduction

Dr. Steven Lu
Teaching Staff
     Dr Steven Lu
     Economics & Business Bldg, Level 5, Room 503
     Tel: 90365260
     Email: Steven.Lu@sydney.edu.au
     Consultation: Tuesday 1-3pm or by appointment




2
Dr Steven Lu
 Education
       M.A. in Economics, York Uni., Canada
       Ph.D. in Marketing, Uni. of Toronto, Canada

 Published in Marketing Science and Statistical Science
 Presented papers at many conferences in Australia,
  New Zealand, Singapore, Europe, Canada, and the US.
 Awarded the 2009 ANZMAC Emerging Researcher of
  the Year Award.
 Consulted for many companies and organizations
  (e.g., Oracle, Dell, Sydney City Toyota, hotels, and
  gaming clubs).
This class
 Introduce the course
   Objectives
   Structure
   Assessments
 What is marketing research?
 Ethics in marketing research
Class Times and Locations
 Weeks 1-6: Badham 145 Tutorial Room 2
 Weeks 7-13: Economics & Business
 Laboratory 4
Course Objectives
    Introduce the applied research tools used
     by marketers
    Learn the fundamentals of producing
     quality market research
    Increase sensitivity to the biases and
     limitations of marketing data
Text
 Prescribed Text: McDaniel and
  Gates, Marketing Research, 9th
  edition, Sydney, Wiley & Sons (ISBN
  9781118074619)
 Recommended Text: Coakes, et al. SPSS v.20
  for Windows: Analysis without
  Anguish, Sydney, John Wiley & Sons (ISBN
  9781118337769)
Grading
Grading Breakdown:
Exam #1               20%
Exam #2               30%
Term Project:
 Stage 1              20%
 Stage 2              20%
Class Participation   10%
Total               100%

Unless otherwise specified, all assignments must be
   submitted
in hard copy, and electronically, via Blackboard
Exams
 Two exams (week 7 and finals period)
 Exams are not cumulative
 Exams are closed book and notes
 Variety of question types (not decided
  yet)
   Closed form tend to come from text
   Essay come from lecture and text
Term Project
 In Australia, only a very small percentage (around
  2-3%) of the eligible population donates blood.
  This year’s term project will focus on how to
  broaden the blood donor base of the Australian
  Red Cross Blood Service (ARCBS).
http://www.youtube.com/watch?v=86yxeFF5RC8
 Groups (3 – 4 students) will work together
  (Hands-on experience learning about a common
  consumer behaviour)
 Projects involve two stages:
   Stage 1: Planning & executing market research
   Stage 2: Analysing quantitative data
 Stages due dates listed on syllabus
Class Participation
 To promote a learning and knowledge sharing
  atmosphere, students are encouraged to prepare and
  participate in class discussions. Marks awarded will
  be based on one’s preparation and contributions
  during class discussions. Students will also be
  provided with opportunities to discuss their research
  & learning experiences through engagement of the
  term project. This includes two key activities:
 Survey Critique
   Each of you needs to critique a survey assigned to you (due
    week 8).
 Survey Completion
   Each of you needs to finish a survey online as a respondent
    (due week 9).
Topic schedule
Week           Lecture Topic              Readings
1              Course Intro               Chap 1, 2
4 Mar
2              Research Process           Chap 3, 4
11 Mar         Secondary Data Research
3              Qual Res: Focus Group      Chap 5, 8
18 Mar           interviews
               Observational Res.
4              Survey Research            Chap 6, 12
25 Mar

                 Common week 1 to 7 Apr
Topic schedule
Week              Lecture Topic                Readings

 5                Measurement                  Chap 10,11
 8 Apr
6                 Revision
15 Apr
7                 Exam 1
22 Apr
8                  Online data collection      Chap 7
29 Apr             Sampling                    Chap 13
 9                 Experimentation             Chap 9
 6 May
10                Data Coding & Preparation    Chap 15
13 May            Data Analysis: Descriptive
                    Analysis
Topic schedule
Week            Lecture Topic                Readings


11              Data Analysis: Testing for   Chap 16
20 May            Difference
                  T-tests
12              Data Analysis: Testing for   Chap 18
27 May            Association
                  Correlation Analysis
                  Regression Analysis
13              Revision
3 Jun
Exam Period     Exam 2
Intro. to marketing research
Reviving an Ailing Giant
---Chrysler
 Founded by Walter P. Chrysler in 1925
 In 1979 The Chrysler Corporation petitioned the US
  government for $US1.5 billion loan to avoid
  bankruptcy.
 In the early 1980s, Chrysler was fighting for survival
 By marketing research its marketing department
  found that consumers needed “a reliable, spacious and
  convenient mode of transportation”.
 http://www.youtube.com/watch?v=afvn-
  2NJSy8&feature=related
Marketing Research Defined
  Marketing Research is the function that links the consumer, customer, and public
  to the marketer through information that is used to identify and define marketing
  opportunities and problems; generate, refine, and evaluate marketing actions;
  monitor marketing performance; and improve understanding of marketing as a
  process. Marketing research specifies the information required to address these
  issues, designs the method for collecting information, manages and implements
  the data collection process, analyzes the results, and communicates the findings
  and their implications. (AMA)
Broadly, Marketing Research is the planning, collection, and analysis
of data relevant to marketing decision making and the communication
of the results of this analysis to management.
Marketing Research Associations

 Australian Market & Social Research
 Society (AMSRS)
   http://www.amsrs.com.au/
 American Marketing Research Association
 (RMA)
   http://www.mra-net.org/about/index.cfm
 European Society for Opinion and
 Marketing Research (ESOMAR)
   http://www.esomar.org/
The Marketing Research Impact
                  Its Importance to Management – Three Critical Roles




                     Descriptive:
                         • The gathering and presenting of statements of fact;



           Diagnostic:
               • The explanation of data or actions;


Predictive:
    • The specification of how to use descriptive and diagnostic
    research to predict the results of a planned marketing decision.
Types of Research Studies

           Applied                             Basic




Research aimed at solving a        Research aimed at expanding
specific, pragmatic problem—       the frontiers of knowledge
better understanding of the        rather than solving a specific,
marketplace, determination of      pragmatic problem.
why a strategy or tactic failed,
or reduction of uncertainty in
management decision making.
Harrah's Entertainment Inc
 History of Las Vegas
    1950s: Flamingo (Benjamin Siegel)
    1980s: Mirage (Stephen Wynn)
 Harrah’s: Founded by William Harrah in 1937
 Gary Loveman
    Who was a professor at HBS
    Joined Harrah’s as COO in 1998
    Built CRM (Database marketing & Loyalty Card
     Program)
    Profit doubled at the end of 1999
Decision to Conduct Marketing Research

• It is not always a good idea to conduct marketing research. Reconsider
conducting marketing research under the following circumstances:


   The resources are lacking to do proper research;
   The research results might not be useful to management;
   The opportunity has passed;
   The decision has already been made;
   Managers cannot agree on what they need to know to make a decision;
   Decision-making information already exists;
   The research cost outweighs the benefits of the research;
   You do not have the time to do the research right;
The Development of Marketing Research
                                       Understanding the Historical Context

                                                     Mature Years - 1950-Present:
                                                          • Change from seller’s market to buyer’s market is key
                                                          •1960s predictive and descriptive mathematics employed




                                   Adolescent Years - 1920-1950:
                                        • A.C. Nielsen begins research in 1922
                                        • 1940s focus groups and random sampling selection begin




                   Early Growth - 1900-1920:
                         • Curtis Publishing started first research department in 1911
                         • Recall measures and scaling introduced



Inception - Pre-1900:
      • Harrisburg, PA - first research survey in 1824
      • Mail surveys introduced in 1895 with 10% response rate
Top 40 Marketing Research Firms




                                  2-6
Marketing Research Ethics
                Suppliers Should not Engage in:



• Allowing subjectivity into the research
• Violating client and respondent confidentiality;
• Selling unnecessary research
• Using Professional Respondents;
• Failing to Properly Validating the Data;
• Using Others’ Research as Original Work;
Marketing Research Ethics
                Clients Should Not Engage in:




• Requesting Bids When a Supplier Has Been Predetermined;

• Requesting Bids to Obtain Free Advice and Methodology;

• Requesting Proposals without Authorization;
Next Class
 Research Process
 Secondary Data

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Marketing research

  • 2. Teaching Staff  Dr Steven Lu  Economics & Business Bldg, Level 5, Room 503  Tel: 90365260  Email: Steven.Lu@sydney.edu.au  Consultation: Tuesday 1-3pm or by appointment 2
  • 3. Dr Steven Lu  Education  M.A. in Economics, York Uni., Canada  Ph.D. in Marketing, Uni. of Toronto, Canada  Published in Marketing Science and Statistical Science  Presented papers at many conferences in Australia, New Zealand, Singapore, Europe, Canada, and the US.  Awarded the 2009 ANZMAC Emerging Researcher of the Year Award.  Consulted for many companies and organizations (e.g., Oracle, Dell, Sydney City Toyota, hotels, and gaming clubs).
  • 4. This class  Introduce the course  Objectives  Structure  Assessments  What is marketing research?  Ethics in marketing research
  • 5. Class Times and Locations  Weeks 1-6: Badham 145 Tutorial Room 2  Weeks 7-13: Economics & Business Laboratory 4
  • 6. Course Objectives  Introduce the applied research tools used by marketers  Learn the fundamentals of producing quality market research  Increase sensitivity to the biases and limitations of marketing data
  • 7. Text  Prescribed Text: McDaniel and Gates, Marketing Research, 9th edition, Sydney, Wiley & Sons (ISBN 9781118074619)  Recommended Text: Coakes, et al. SPSS v.20 for Windows: Analysis without Anguish, Sydney, John Wiley & Sons (ISBN 9781118337769)
  • 8. Grading Grading Breakdown: Exam #1 20% Exam #2 30% Term Project: Stage 1 20% Stage 2 20% Class Participation 10% Total 100% Unless otherwise specified, all assignments must be submitted in hard copy, and electronically, via Blackboard
  • 9. Exams  Two exams (week 7 and finals period)  Exams are not cumulative  Exams are closed book and notes  Variety of question types (not decided yet)  Closed form tend to come from text  Essay come from lecture and text
  • 10. Term Project  In Australia, only a very small percentage (around 2-3%) of the eligible population donates blood. This year’s term project will focus on how to broaden the blood donor base of the Australian Red Cross Blood Service (ARCBS). http://www.youtube.com/watch?v=86yxeFF5RC8  Groups (3 – 4 students) will work together (Hands-on experience learning about a common consumer behaviour)  Projects involve two stages:  Stage 1: Planning & executing market research  Stage 2: Analysing quantitative data  Stages due dates listed on syllabus
  • 11. Class Participation  To promote a learning and knowledge sharing atmosphere, students are encouraged to prepare and participate in class discussions. Marks awarded will be based on one’s preparation and contributions during class discussions. Students will also be provided with opportunities to discuss their research & learning experiences through engagement of the term project. This includes two key activities:  Survey Critique  Each of you needs to critique a survey assigned to you (due week 8).  Survey Completion  Each of you needs to finish a survey online as a respondent (due week 9).
  • 12. Topic schedule Week Lecture Topic Readings 1 Course Intro Chap 1, 2 4 Mar 2 Research Process Chap 3, 4 11 Mar Secondary Data Research 3 Qual Res: Focus Group Chap 5, 8 18 Mar interviews Observational Res. 4 Survey Research Chap 6, 12 25 Mar Common week 1 to 7 Apr
  • 13. Topic schedule Week Lecture Topic Readings 5 Measurement Chap 10,11 8 Apr 6 Revision 15 Apr 7 Exam 1 22 Apr 8 Online data collection Chap 7 29 Apr Sampling Chap 13 9 Experimentation Chap 9 6 May 10 Data Coding & Preparation Chap 15 13 May Data Analysis: Descriptive Analysis
  • 14. Topic schedule Week Lecture Topic Readings 11 Data Analysis: Testing for Chap 16 20 May Difference T-tests 12 Data Analysis: Testing for Chap 18 27 May Association Correlation Analysis Regression Analysis 13 Revision 3 Jun Exam Period Exam 2
  • 16. Reviving an Ailing Giant ---Chrysler  Founded by Walter P. Chrysler in 1925  In 1979 The Chrysler Corporation petitioned the US government for $US1.5 billion loan to avoid bankruptcy.  In the early 1980s, Chrysler was fighting for survival  By marketing research its marketing department found that consumers needed “a reliable, spacious and convenient mode of transportation”.  http://www.youtube.com/watch?v=afvn- 2NJSy8&feature=related
  • 17. Marketing Research Defined Marketing Research is the function that links the consumer, customer, and public to the marketer through information that is used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications. (AMA) Broadly, Marketing Research is the planning, collection, and analysis of data relevant to marketing decision making and the communication of the results of this analysis to management.
  • 18. Marketing Research Associations  Australian Market & Social Research Society (AMSRS)  http://www.amsrs.com.au/  American Marketing Research Association (RMA)  http://www.mra-net.org/about/index.cfm  European Society for Opinion and Marketing Research (ESOMAR)  http://www.esomar.org/
  • 19. The Marketing Research Impact Its Importance to Management – Three Critical Roles Descriptive: • The gathering and presenting of statements of fact; Diagnostic: • The explanation of data or actions; Predictive: • The specification of how to use descriptive and diagnostic research to predict the results of a planned marketing decision.
  • 20. Types of Research Studies Applied Basic Research aimed at solving a Research aimed at expanding specific, pragmatic problem— the frontiers of knowledge better understanding of the rather than solving a specific, marketplace, determination of pragmatic problem. why a strategy or tactic failed, or reduction of uncertainty in management decision making.
  • 21. Harrah's Entertainment Inc  History of Las Vegas  1950s: Flamingo (Benjamin Siegel)  1980s: Mirage (Stephen Wynn)  Harrah’s: Founded by William Harrah in 1937  Gary Loveman  Who was a professor at HBS  Joined Harrah’s as COO in 1998  Built CRM (Database marketing & Loyalty Card Program)  Profit doubled at the end of 1999
  • 22. Decision to Conduct Marketing Research • It is not always a good idea to conduct marketing research. Reconsider conducting marketing research under the following circumstances:  The resources are lacking to do proper research;  The research results might not be useful to management;  The opportunity has passed;  The decision has already been made;  Managers cannot agree on what they need to know to make a decision;  Decision-making information already exists;  The research cost outweighs the benefits of the research;  You do not have the time to do the research right;
  • 23. The Development of Marketing Research Understanding the Historical Context Mature Years - 1950-Present: • Change from seller’s market to buyer’s market is key •1960s predictive and descriptive mathematics employed Adolescent Years - 1920-1950: • A.C. Nielsen begins research in 1922 • 1940s focus groups and random sampling selection begin Early Growth - 1900-1920: • Curtis Publishing started first research department in 1911 • Recall measures and scaling introduced Inception - Pre-1900: • Harrisburg, PA - first research survey in 1824 • Mail surveys introduced in 1895 with 10% response rate
  • 24. Top 40 Marketing Research Firms 2-6
  • 25. Marketing Research Ethics Suppliers Should not Engage in: • Allowing subjectivity into the research • Violating client and respondent confidentiality; • Selling unnecessary research • Using Professional Respondents; • Failing to Properly Validating the Data; • Using Others’ Research as Original Work;
  • 26. Marketing Research Ethics Clients Should Not Engage in: • Requesting Bids When a Supplier Has Been Predetermined; • Requesting Bids to Obtain Free Advice and Methodology; • Requesting Proposals without Authorization;
  • 27. Next Class  Research Process  Secondary Data