2. Budgeting the research project
•budget is a portion of your overall marketing budget
•popularly allocate a small percentage of gross sales for the most
recent year. This usually amounts to about 2% for an existing
business.
•planning on launching a new product or business, budget figure
may be as much as 10% of expected gross sales
Where to Begin?
•Define what you need to know.
•Define whom you need the information from.
•Ask yourself, does anyone else have the information? Is the
information available from another source?
•What would be the best way to get information from the target
group?
3. Look Internally First
• Has anyone else captured this information before?
• Are there any existing databases that provide the information?
• Are there any existing data collection procedures that could be
amended? Internal Data Collection Options
• Internal surveys or interviews with employees
• Talk to "front line" employees to hear what your customers are
saying.
• Have your employees distribute surveys to customers — BUT
Beware of bias
• Be your own "mystery shopper"
• professional whose identity is not known
• visits stores in search of information to assist companies in
their marketing efforts
• report back
4. Secondary Research
•Look to other similar companies/ organizations. What have they
done? Do they have any information that would apply to you?
•Census Data
•Industry Organizations
•Internet
Low Cost Options
•Local or Regional Studies
•Check out your local University Marketing Research Department
•Go to places where your target market congregates
•Interactive Voice Response Systems (IVR)
5. Sometimes you just have to spend a lot
•Partner with other entities that would benefit from getting the
same information from the same populations.
•Be efficient in your questionnaire design — separate what you
WANT to know from what you NEED to know.
•Get competitive bids, but remember, cheaper is not always better.
Things to Remember
•Many times there are untapped resources at your fingertips
•Be willing to invest when its time to spend the money. Bad
research is worse than no research
•Find a research partner you can trust
6. Scheduling the research project
•Setting the project start date
•Setting the project completion date
•Selecting the project methodology or project life cycle to be used
•Determining the scope of the project in terms of the phases of the
selected project methodology or project life cycle
•Identifying or selecting the project review methods to be used
•Identifying any predetermined interim milestone or other critical
dates which must be met.
•Listing tasks, by project phase, in the order in which they might
be accomplished.
7. •Estimating the personnel necessary to accomplish each task
•Estimating the personnel available to accomplish each task
•Determining skill level necessary to perform each task
•Determining task dependencies
- Which tasks can be done in parallel
- Which tasks require the completion of other tasks before they can
start
•Project control or review points
•Performing project cost estimation and cost-benefit analysis
Gantt chart consists of a horizontal bar for each task connecting
the period start and period ending columns
8. Month Oct, Nov, 05 Dec, 05 Jan,
05 06
Week 5 1 2 3, 4 5 1, 2 3 4 5 1
Activity
Formation of groups + deciding the
project + submission of names +
submission of hypothetical
perceptual map
FGD
Draft of questionnaire 1 based on FGD
findings – to be shown to the
instructor
Survey based on questionnaire 1
PCA results and draft of questionnaire
2 based on– to be shown to the
instructor
Survey based on questionnaire 2
MDA results – Perceptual Map - brief
presentation in class – viva voce
9.
10. RESEARCH PROPOSAL
• It is a specific document that serves as a written contract
between the decision maker and the researcher
• It communicates to the decision maker the overall
research framework including the important activities that
would be under-taken and the expenses that are likely to be
incurred
• Proposals are often used to make a choice among
competing suppliers
• Proposals are also used to influence positively the
decision to oppose research
• The final research report may deviate from the research
proposal
• There is no one acceptable way of writing the research
proposal
11. General outline of a Research Proposal
•Tittle of the Research Proposal
•Purpose of the Proposed Research Project
•Type of Study
•Definition of the target population and sample Size
•Sample Design, Technique, and data Collection Method
•Specific Research Instruments
•Potential Managerial Benefits of the Proposed Study
•Proposed Cost Structure for the Total Project
•Profile of the Researcher and Company
•Optional Dummy Tables of the Projected Results
12. Example
1) Title
The JP Hotel Preferred Guest Card Information Research Proposal
2) Purpose of the Proposed Research Topic
To collect specific attitudinal, behavioural, motivational and general
demographic information to be used in addressing several key
questions jointly posed by management of Louis Benito Advertis-
ing and W.B.Johnson Properties, Inc., concerning the J P Hotel
PGC, a newly implemented marketing strategy within J P Hotel’s
overall marketing programme.
The key questions are:
• To what extent is PGC being used by card holders?
• How do card holders evaluate the card on the basis of the specific
privileges associated with it?
• What are the perceived benefits and weaknesses of the card?
Why?
13. • To what extend does PGC serve as an important factor in select-
ing a hotel?
• How often do the card holders use their PGC?
• When do the card holders use the card?
• Of those who have used the card what privileges have been used?
• How often were the privileges used?
• What general or specific improvements should be made regard-
ing card or the specific extended privileges?
• How do the card holders obtain the card?
• Should the PGC membership be complementary or should card
holders pay an annual fee?
• If latter, how much should it be? How much is the card holder
willing to pay?
• What is the demographic profile of the card holders?
14. 3) Type of Study
• The research should be structured, non-disguised, descriptive,
exploratory, explanatory
• descriptive - questions identifying perceptual awareness, attitude
and image pattern of JP Hotel PGC; demographic profiles of
current card holders
• exploratory - investigation of possible improvements to the card ,
its present privileges and the price structure considerations
• explanatory - perceived benefits and weaknesses of the present
features of the card
4) (a) Target Population
are current cardholders of the PGC
Adults who Population frame is approximately 17,000 individuals
located across the USA
15. (b) Sample size
Statistically: 384
Realistically: 1,500
• assessment of likely response rate that could be expected by
using current methodological and control factors in the sampling
and questionnaire designs
• predetermined level of precision of not more than ± 5% sampling
error
• desired level confidence level of 95%
• general administrative costs and trade-offs
• desirability of having a prespecified minimum number of
randomly selected cardholders included in the analyses
16. 5) (a) Sample Design
(b) Sampling Technique - probabilistic random sampling
(c) Data Collection Method -
~ Direct-mail survey
~ specifically tailored self-administered questionnaire
~ + a carefully designed cover letter that explains the generalities of
the research and inducements for respondent participation
6) Questionnaire
17. 7) Potential Managerial Benefits of the Proposed Study
Data and information gathered from the research would provide
JPHotel with meaningful and useful insights toward:
• Better understanding what type of people hold and use PGC
• The extent of usage of the PGC
• Identifying specific feature problems that could serve as
indicators for evaluating (and possibly modifying) current
marketing and management strategies, policies or tactics
pertaining to PGC and its privileges
• Identifying specific insights concerning the promotion and
distribution of PGC to expanded marketable segments
The proposed research project would functionally serve:
• To initiate a customer-oriented database and collection system
to assist JPHotel’s better understanding its customers’ needs and
wants
18. • Database thus created would prove vital for the firm’s promotional
strategies
• Database would be important for future pricing and service
selection
19. 8) Proposed Cost Structure for the Total Research Project
Source Cost ($)
Development 2,800
Questionnaire,Cover Typing
Letter Design and Pretest
Reproduction Reproduction (1,500)
Envelopes (3,000)
Sample Design and 1,620
Plan
Coding, setting of final codes 4,000
Data Entry
Coding and Predata Table Development
Analysis Computer Programming
Computer Time
Administration and Questionnaire Packet 3,840
Data Collection Assembly
Postage,P.O. Box Rental
Address Labels
Data Analysis, 6,500
Interpretation
Written Report, 2,850
Presentation
Total Proposed Research Project 21,610
20. 9) Principal Researcher’s Profile
• Name and other details of the Research Organisation
• Name, academic and experience profile of the Research Project
Leader
10) Dummy Table of Data Results
Summary of ocerall Importance Differences of Selected Hotel-
Choice Criteria used by First-Time and Repeat Business Patrons
Importance Scale: A 6-point scale from 6 (“extremely important”) to
1 (“not at all important”)
SG: Significant groupings
(A): “Definitely strong factor” (C): “Moderately strong
factor”
(B): “Strong factor” (D): “Weak factor”
21. TOTAL FIRST-TIME REPEAT PATRON
(N=880) PATRON (N=440)
(N=440)
SELECTION Mean (SG) Mean SE (SG) Mean SE (SG) Z
CRITERIA TEST
Cleanliness 5.65 (A) 5.75 .06 (A) 5.50 .05 (A) *
Quality 5.60 (A) 5.55 .06 (A) 5.62 .07 (A)
bedding etc.
Guest Card 5.57 (A) 5.42 .07 (A) 5.71 .06 (A) *
Options
Friendly Staff 5.10 (B) 4.85 .09 (B) 5.45 .07 (B) *
Free VIP 5.06 (B) 4.35 .10 (B) 5.38 .11 (B) *
Services
Convenient 5.04 (B) 5.25 .09 (B) 4.92 .10 (B) *
Location
In-room 3.63 (D) 3.30 .13 (D) 4.56 .11 (C) *
entertainment
* Mean importance difference between the two patron groups is
significant at p< 0.5
22. Criteria of a Good Research
Systematic, Logical, Empirical, Replicable
• Purpose of research should be absolutely devoid of ambiguity.
• Steps in the research process should be described and explained in
sufficient detail to enable another researcher to conduct a similar research.
• The research process should be sufficiently clear and lucid, so that
another researcher can take up the research at any stage.
•The qualitative and quantitative methodologies, tools and techniques
should be as objective as possible to ensure objective and unbiased
results.
• Researcher should have sound knowledge of any theoretical and practical
aspect related to the research.
• Personnel involved in every stage of the research process should be well
trained and well versed in his task.
23. • Conclusions drawn from the research should not be confined to those
derived from the data used in the research.
• Researcher should be able to detect any fallacy in the research
process.
• Researcher should report candidly about his research findings –
whether favourable or otherwise.
Misuse of Research
Sometimes research is used to validate an already existing idea or
notion – more often a person’s personal opinion.
• Data are collected, analysed and interpreted in a distorted manner to
deliberately prove or disprove certain ideas.
•The process of research is deliberately delayed in order to delay
decision making.
•The business problem and research problem is purposely made
ambiguous and complex to bring forth confusion.
24. Management of Scotty’s Inc., a popular hardware dealer
wanted to know about the overall image among known
customers within the Atlanta metropolitan market. The
initial question was “What marketing strategies need to
be either developed or modified to increase satisfaction
among our current and future segments?”
It thus became imperative to know if the present
‘satisfaction level’ of Scotty’s among its customers.
The logic was simple - if the ‘satisfaction level’ which
was 3.9 the previous year, shows any improvement this
year, then Scotty’s would adopt the same marketing
strategies as it done for the last few months!
25. Limitations of Research
• A research may be so fragmentary in nature, that it becomes difficult to
have an overall and focused perspective in which it is to studied.
• Research might be too superficial and artificial to reflect the true problem
it is intended to analyse.
• Research results and findings may have no practical implications.
• Suggestions and recommendations given by the research is too
expensive for implementation.
• Absence or inadequacy of communication between the researcher and
his client may lead to misunderstanding the correct problem.
• Research often deals with ambiguous and unfathomable factors which
can not be measured.
• Analytical tools of research are still not sufficient enough and hence
cannot give us clear and precise idea (especially on psychological
aspects) of the true situation.
26. • Personnel conducting and analysing the research tend to take a casual
view towards research.
• Sometimes they are not be competent or skilled enough to conduct a
research.
• An on-going research may trigger off ideas in the minds of competitors,
and thus create unwanted opportunities for the latter.
• Internal or external policies is a hurdle to the management to act on the
results.
• Bickering and under-currents of discordance hamper the acceptance of
the suggestions and recommendations given by the research. .
27. Ethics in Research
•Sincerity and integrity should be the fundamental characteristics of a
researcher.
•During the phase of data collection, the persons engaged in doing so
should exhibit responsible conduct.
•Respondents and informers should be treated cordially with due
respect and nothing should be said or done so as to offend.
•Proper and adequate payments / remunerations / honorarium must be
given to respondents if such a rule exists.
•Although in reality the researcher has to encounter several inevitable
and unavoidable circumstances during the research process, every
effort should be made to avoid bias, unfairness and subjectivity.
•Rules, regulations, copy-rights and other similar protocols must be
respected and adhered to. Violations of such may lead to undesired
legal complications.
28. Situations in which Research might not be needed
•The problem is too diverse to set up a formal plan for solving it.
• The problem itself is a mammoth compilation of enumerable micro
problems - in such situations it is sometimes recommended that the
micro problems be solved at their own levels – a formal structured plan
may not be required.
• Relevant and pertinent information about the problem is already
available.
• A similar research has been conducted and the results tried and tested.
• The time required for arriving at a solution may be grossly insufficient.
• The resources needed for information is inadequate.
• The cost of information exceeds the value of information.
