University of Lethbridge Faculty of Management Management 3220Y Marketing Research Project Guidelines Objective The primary objective of this project is to gain experience using the basic methods of market research by applying them to a real-life, business management decision situation. Project description Students will work in teams of four or five to complete a market research project for a local business or organization. Teams will be formed the second week of class and some time will be given in class to work on the project. The project involves contacting a local business or organization and defining the research problem, designing the project, collecting primary and secondary data, analyzing the data, and writing a comprehensive research report. Given that the information provided both by the business and generated through the report should remain confidential, a presentation to the class is not required. Businesses that work best for this project tend to be small business to consumer enterprises rather than those involved in business to business. It is easier too if the target market is well defined and readily accessible. Because this project constitutes a large percentage of the grade for this course (i.e. 50%), and because it is not the sort of project that can be left until the last two weeks of the semester it must be completed in 3 phases. It is also crucial that the team develop a time line for completion of phases. Phase One: Research Objectives and Design (15% of the final grade) Phase one is perhaps the most crucial since it will guide the rest of the research project. It has been said “a problem well defined is half-solved.” In this phase you must define the problem clearly and state the objectives precisely. Defining the problem can be one of the most difficult parts of the research. An incorrectly defined problem can lead to incorrect research objectives and consequently a poor decision. Not only is it important for the right problem to be identified, but also the definition should be specific. Many people define symptoms of the problem as the problem (for example, declining sales) instead of the defining the real problem (for example, declining quality). This phase therefore involves contacting a local business or organization to understand the nature and context of the business problem and to agree with them on what will be done, and whether there are any particular people to be included or excluded in the research. The organization will need to provide relevant background information on the problem as well as the company's knowledge and understanding of the market at the moment. See the section below on expectations for information on what they and you should expect from the relationship 1 In this phase you must also specify the information needed to solve the problem and the methods and procedures for acquiring that information, i.e. the research design. Research designs may be identified as exploratory, descriptive and causal. Exploratory research is used to gain ideas and insights to help define the problem and suggest hypotheses. It is particularly helpful in breaking broad, vague problem statements into smaller, more precise problem statements. Typically, it involves colleting secondary data, interviewing experts, pilot surveys, and qualitative research such as focus groups, interviews and observation. Descriptive research, in contrast, is concerned with describing the characteristics of certain groups, to estimate the proportion of people who behave in a certain way, or to make predictions. Usually conducted after exploratory research it is marked by well-formulated hypotheses, and usually involves a pre-planned structured design and the collection of data through surveys. Descriptive information is often useful for predictive purposes, but the causes (reasons why) of what is being predicted improves understanding. Causal research tests relationships of causal factors to the effects predicted. “Does X cause Y?” For example, does a lower price cause an increase in sales? Exploratory research often involves experiments, and is not a requirement for this project. Completion of Phase One involves writing a short (maximum 7 pages) research proposal and should provide the following 1. A brief background to the business or management decision problem. Most marketing research is done because information is needed to help make a decision or identify and opportunity. Often, the organization is at a crossroads where a decision to act or not to act, or to act one way rather than another, needs to be made. What is required at this stage is a brief (no more than one page) outline of the immediate circumstances that has led the organization to this decision crossroad. It should not be a history of the organization. 2. A concise statement of the management decision the organization faces. (No more than two sentences). 3. A discussion of alternative courses of action the organization could take. A restaurant facing static patronage could, for example, decide to offer specials, change the menu, or increase advertising to improve sales. Or, it could decide that these changes will reduce profits and decide to do nothing. What to do requires information on why sales are static. Discussing alternative choices will help you to understand the nature of the problem and the information required. In this example, for instance, you would want to know if it is the high prices, limited menu, or perhaps because people are unaware of the restaurant, that is limiting sales. (No more than ½ a page) 4. A statement of the overall research objective. What sort of information, in general, is required to help make the management decision. No more than two sentences. 5. A list of subsidiary objectives, i.e. additional information that is required. (no more than ½ a page) 6. A discussion of hypotheses about the information you will gather. For example, one hypothesis might be that the restaurant’s static patronage is because the menu is too limited. General knowledge about human nature, the market in general, and the specific circumstances will help in generated these hypotheses (No more than ½ a page) 2 7. A general discussion of how you propose to gather the necessary information, and in what order. For example, do you plan to conduct secondary market research on market trends, and then hold a focus group or in-depth interviews? Do you plan to conduct a survey, and if so how many people do you plan on surveying, and where and when; do you plan to pre-test the survey. Basically, what do you propose to do. (No more than one page) 8. A schedule or time line with deadlines for the phases of the project and the various tasks that need to be done, and who will be responsible for them. (no more than ½ a page) 9. A budget. The purpose here is to give you some idea of the actual costs of doing a research project. Give yourselves a reasonable hourly wage (check industry standards); estimate the number of hours you will work on the project. Add in any other anticipated expenses, e.g. printing, etc. Since you don’t have an office to maintain you don’t have to add in any general overhead expenses, or profit margin. Keep track of the actual number of hours each of you spend on the project and compare this with your estimate. Include this as an appendix in phase III. (no more than ½ a page) Summary of Phase One Clearly define the marketing problem through discussion with the business decision maker State the research objectives giving a clear idea of the single overall objective Background to the market Specify the information needed to solve the problem Outline the research steps to be taken Develop a project plan and budget Deliverable is a short (maximum 7 pages) research proposal. The phase one document should be looked upon as a working document that will change as a greater understanding of the problem is achieved and more information acquired. Phase Two: Detailed Data Collection Plan By the time phase two is due all secondary research such as reviews of the literature, published results of similar research, demographic information etc., as well any exploratory research, such as interviews or focus groups, should have been completed. Phase two, which is worth 10% of the final grade, involves a summary of the results of this research as well as the development of a questionnaire and sampling plan. The nature of the research objectives and information needed, along with the nature of the target population will determine who you select to gather the information from, how you select them, and what sort of information you will collect. This section should therefore explain the sample, instruments, and procedures used, and the data collected. The questionnaire should be pre-tested before it submitted or administered to the target sample. Time will be provided in class for this. Feedback from the class will help to fine tune it. This section should be 5-7 pages long and should also include a revision of the phase one proposal based on feedback received and any changes in the plan that may have occurred. It should also contain a coding sheet. 3 Summary of Phase Two Summary of any exploratory or secondary research Identify the target population Determine the sampling frame Select the sampling procedure Include a moderator’s guide, and in-depth interview questions if applicable. Questionnaire Coding sheet Phase Three: Analysis and Report (25% of the final grade) All that should remain after completing phase two is the actual collection, processing, analysis and interpretation of the data, and the write up of the final report. The deliverable for phase three is a comprehensive report based on the sum of the research and analysis. This section should be 10-15 pages long. The total project should not exceed 30 pages double-spaced, excluding any appendices (e.g. copies of questionnaires used, computer output etc.). Again, it should include revisions based on feedback of phases one and two. Don’t forget to change the future tense to the past tense. With regards to the analysis, begin by looking at the data. What questions can be asked of it? What information can be gleaned from it by manipulating it? Look for associations. Do any of the variables need to be transformed? Create frequency tables and pie charts using SPSS to make it easily understandable. Remember, the report, although it will be graded, is really for the organization it is done for and must therefore be readable. This means that the statistical information must be condensed. The most valuable aspect of the report for the organization will be your results. Instead of just summarizing them, the report should present the results in such a way that they can be used directly as input into decision-making. Wherever appropriate, conclusions should be drawn and recommendations that management can act upon should be made. Recommendations should be based on your understanding and analysis of the situation and the data collected. The report for management should emphasize the strategic aspects of the research project rather than the operating details. In other words, stress what you discovered and its strategic implications, not what you did. The final report must also have a cover letter. The cover letter should provide details of the enclosed research report, who is responsible for the report, and who is receiving copies. You should also thank them for allowing you to do the work and indicate that you are happy to answer any questions arising from it. The company needs to sign-off on the final report so you should also ask them to sign the letter or the report to indicate that they have received a copy. A suggested format for the report is presented below. Expectations The research team will have to meet with the decision maker(s) initially to get agreement in principle to proceed with the project, to help you understand the marketing management decision problem, and to help you to define the market research project. 4 They should also be expected to provide you with background information on the company and industry, recommend industry experts or other people you could talk to, and also possibly provide you with internal secondary data, (or access to it) such as sales reports, accounting records, operation reports etc. that may help to understand the problem and/or design the research problem. It is not unreasonable for them therefore to require the team members to sign a non-disclosure form. You should let them know that there is no requirement to present the results to the class but that the instructor will read and mark the report. If required I am happy to sign a non-disclosure agreement as well. The decision maker(s) should expect to meet with you at least three times for about two hours each time. The first time will be to enable you to explore and understand the management decision that needs to be made. The second time will be to discuss your plan of action, and third time to present the report. Although not a requirement for this course, it is also not unreasonable for the organization to ask you to make a presentation to them. Evaluation Phase One 2 marks 2 marks 2 marks 2 marks 3 marks 1 mark 2 marks 1 mark 15 marks Background info on company leading to decision crossroads Statement of management decision faced Statement of research/project problem Objectives Information needed Hypotheses Plan of action timeline, budget. Phase Two 2 marks 2 marks 5 marks 1 mark 10 marks Summary of any exploratory or secondary research Sampling frame and procedures Questionnaire suitability, design, structure, accuracy Coding sheet. Phase Three 1 mark 4 marks 5 marks 10 marks 5 marks 25 marks Cover letter Executive Summary Spelling, punctuation, and grammar Analysis and Results Conclusions, Limitations, Recommendations 5 Sample Report Table of Contents Cover letter Executive Summary Define the Problem concisely Describe approach briefly Major findings Conclusions Recommendations Problem definition Background to the problem Secondary data summarized Statement of the problem Approach to the problem Broad approach taken to the problem Theoretical foundations Research questions and hypotheses Research design Details of how the research was conducted Information needs Data collection and secondary sources Data collection from primary sources Scaling techniques Questionnaire development and pre-testing Sampling techniques Data analysis Methods used Results Presented at aggregate level Also at market segment, geographic etc level. Geared to problem And to information needs Presented in tables and graphs Main findings discussed in text Limitations and Caveats Due to time, budget etc. Limitations due to error types (e.g. sampling non-sampling) How far can results be taken 6 Conclusions and Recommendations In light of problem being addressed Based on the results and conclusions the researcher may make recommendations to the decision makers. Exhibits/Appendices Questionnaires Statistical output Budget 7