The CPIT Market Research Story: If a Better System is Thine

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The CPIT Market Research Story: “If a Better System is Thine, Impart
it; If Not, Make use of Mine”
Kiran Nariman
Market Research Officer, Marketing Team
Student Services & Information Division
Christchurch Polytechnic Institute of Technology
Note:
If you’re expecting a cut and dry academic paper, sorry to disappoint – this is the real
CPIT story.
Abstract
How important is it in deciding who gets to be the 'rule-maker' in the competitive
market? = The value of market research in the changing education environment.
Is it possible that half the market research has already been done? = The information
resources already available.
How do we make market research happen without the dollars and the donkeys? = The
possible structures and processes for market research to take place.
And what's on the reality show? ChCh Polytechnic Institute of Technology
Background of presenter
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B. Comm (Marketing & HRM) from University of Canterbury, Postgraduate
Diploma in Tourism Management & Marketing from NZSTT
International Marketing Coordinator at ChCh & Canterbury Marketing Limited.
Research Assistant to Head of School, Travel & Tourism, CPIT
Human Resources Administrator, CPIT
Market Research Officer, CPIT
The market research role was newly created in 2002, due to the increasing need for a
committed ‘information provider’. Historically, the Marketing Manager would carry out
strategic research projects and the Marketing Officers would carry out programme
research. Due to workloads, projects were few and far between.
My current role was initially set up to support operational research, that is, research on
specific courses and programmes. It has since evolved and now takes a more strategic
focus:
 Providing information to CEO and Senior Management Team to support strategic
planning, new initiatives and projects, discussions, decision, planning sessions and
forums. Some support for industry collaboration events as well such as the
Canterbury Tertiary Alliance (CTA) and Institute of Technology & Polytechnics
NZ (ITPNZ) forums.
©Kiran Nariman 2005
ATEM Paper: CPIT Market Research Story
4 July 2005
Page 1 of 15
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Undertaking strategic research projects – monitoring of the CPIT brand and
environmental scanning.
Training of staff in research methods and research software. Provision of tools
necessary to build up staff skill base in market research.
Managing external research contracts.
Why is market research important in the tertiary sector?
‘Market research is about understanding customers and their needs and should be a core
competence at the heart of any company with a strategic vision.’1
‘Why would you risk releasing a product to the market without verifying that it meets the
needs of the target market and does not contain significant barriers to
acceptance? Market research is a means of steering the product development process from
concept to final product, ensuring that your development team has a good grasp of
potential barriers to acceptance as well as the positive aspects of their ideas.’2
A simple fact: If you don’t understand your customers, you don’t understand their needs;
you don’t deliver the right services, you get unsatisfied customers and eventually you lose
your customers.
The tertiary sector in New Zealand is oversupplied in the number of universities,
polytechnics and private training providers. It is quite easy for a customer to ‘switch’ their
loyalties when they are unsatisfied. So how do you grapple with the competition? You can
do more aggressive marketing or offer more courses but this is unsustainable in the long
term. People are very market savvy these days, they are not easily influenced by claims
made in advertisements and commercials. Aggressive marketing only works if the
underlying educational needs of the market have ALSO been taken into account and have
been responded to in terms of programme development; THEN used as a selling point in
the advertisements. Offering more courses only works if there is the demand for those
courses. Diversification should be conducted at the right place at the right time, not
constantly.
The buzzwords in industry are ‘research and innovation’. The word ‘PBRF’ (Performance
Based Research Fund) is used nearly every day. There is more and more recognition by
industry, customers and the government that research (and its consequent outcomes) is
what would set an organisation or a country apart. It is not just about product
development or in the tertiary sector, programme development, but about ‘research and
innovation’ in all areas of an organisation – product, service, delivery, systems and
processes.
Academic research is prolific in our sector. It is carried out every day. But there is a
distinct lack of market research in our sector. Yet, knowing our market is what gives an
organisation the competitive edge in an increasingly fragmented market.
©Kiran Nariman 2005
ATEM Paper: CPIT Market Research Story
4 July 2005
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An ‘environmental scan’ is undertaken at CPIT every two years. This market research
prepares CPIT for government strategies and planning, an ageing population,
internationalisation, unemployment and skill shortages, Maori & Pasifika participation in
tertiary education, the increased interest in upskilling and multiskilling, upcoming
specialist areas in industry and the changes in learning and delivery technology. Market
research is not about just collating this information – its value lies in the interpretation of
the material. What do these trends mean for the tertiary sector as a whole and for CPIT?
What impact would these trends have on us? What aspects of our business would be
affected in the short term, medium term, long term? What do we already have in place to
counter any negative impacts? What don’t we have?
Market research is, therefore, important in the tertiary sector as:
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It helps institutions prepare strategically and operationally for the short, medium
and long term
It helps save money! (Yes! If you spend $500 on market research and you find out
that there is very little interest for that new programme in ‘Flirting For The Fainthearted’, you would have saved $2000 in programme development and marketing
costs!)
It helps with more targeted marketing campaigns – e.g. research can tell you if
more 16 year olds find out about your programme from the website or Jet
magazine.
It helps in finding gaps in the marketplace - is there a specialist area in the market
which we can offer training in? Or is there a market out there that no one is
targeting?
It monitors progress – 1999, 78% of the public perceived the CPIT brand
positively, in 2005, it stood at 88%.
It measures success – If one of CPIT’s strategic goals was to increase the brand
perceptions, then, in the example above, this has been achieved.
The cynicism around market research
Cynicism arises from the fact that some decisions based on market research have not
returned expected outcomes. This could be the case. Or it could be that the market
research was not conducted or interpreted properly.
It is also important that market research is seen in context. Market research helps a
decision-maker make a decision based on market forces and other factors rather than on
his own judgement, experience and intuition. Market research does not eliminate risk
around that decision, it only reduces the risk.
Market research is also only one part, albeit an important part, of the process used in
making a decision or in devising a strategy or plan. Examples of other parts or elements of
a decision-making process are: risk analysis, gap analysis, contingency planning,
consultation with various stakeholders, and external review of the process.
©Kiran Nariman 2005
ATEM Paper: CPIT Market Research Story
4 July 2005
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Areas in a tertiary institution requiring market research
Market research underlies the following areas:
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Strategic planning
New programme development
Programme at risk research
Media campaign measurement
Event measurement
Customer satisfaction surveys
Market segmentation
Special projects/new initiatives
Major market research projects at CPIT in the past three years have consisted of:
PROJECT
Branding
Awareness
Research
Information
Needs Research
DESCRIPTION
OUTCOME
Monitoring of public perceptions of/towards Divisional Planning
CPIT and its brand
Research into perceptions of students on Redesign
of
brochure content and format
brochures
and
marketing material
Careers Advisors Research into the information needs of careers More
defined
Research
advisors at secondary schools
support for CAs and
set up of annual
Careers
Advisors
Open Day
Engineering
Research into engineering awareness (as a Development
of
Diploma Research study option) among high school students – marketing
&
perceptions and barriers
recruitment strategy
for schools
Art & Design Research into perceptions of the school, Rebranding of CPIT
Research
teaching, course content, marketing material, School of Art &
website etc.
Design
Graduate
Research into employment and further study Graduate
Outcome Survey
outcomes of graduates
employability
monitored
and
benchmarked
against industry
Media Campaign Measurement of market response to Marketing
spend
Measurement
advertising media
more targeted
Environmental
Interpretation of 10 main trends in the Strategic and Faculty
Scan
external environment and its impact on CPIT Plans
in the medium term
Operational
Surveys in faculties and divisions on Respective outcomes
©Kiran Nariman 2005
ATEM Paper: CPIT Market Research Story
4 July 2005
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Research
programme focussed topics
achieved
Resources to carry out market research in a tertiary institution
Does market research cost money? Yes.
‘The cost of market research is like the cost of insuring your house.’2
If outsourced to an agency, a project can cost anywhere between $5,000 and $30,000
depending on the size of the project and methodologies used i.e. design and
administration of a survey to 1000 people including data entry, analysis and reporting can
cost around $10,000. Costs can be significantly reduced if the survey is a short one or if
the number of participants is smaller. The cost is also affected if it is conducted through
other methods e.g. online, phone, mail. The cost of a focus group is around $3,000-$4,000
- a large-scale project targeting 3 different markets could require four to six focus groups.
If conducted in-house, a survey project can cost under $1000 and focus groups cost around
$500 each (costs comprise of incentives to participants and services of a professional focus
group facilitator). However, when projects are conducted in-house, significant time is
required (in terms of human resource) from either existing staff or by employing
temporary staff. Tasks involved are: design of survey, printing and posting, data entry,
analysis and reporting.
There are ways to minimise resource issues!!
 Use agencies for part of the project only. A single consultation session with an
expert researcher could cost $150/hr but if you go prepared with questions, you
can come out with a solid plan of how to go about the research in the most
sensible and cost-effective way.
 Use existing staff – administrative assistants – to work on survey formatting and
data-entry – that way your time is spent on survey content, data analysis and
report-writing.
 Use Student Job Search. Advertising is free and SJS will filter applicants for you so
you get an appropriate person. Wages will be lower than market rates so a small
budget will be sufficient.
 Use current students! Most students require real-world projects to do as part of
their assessment. This is a FREE resource and they will also have an academic
supervisor to advise them. However, do promise them a written reference at least.
 Use students in other training institutes. If your project is a large one, approach
postgraduate programme coordinators in other institutions to see if their Masters
students might be interested – you will be surprised how many would welcome
the chance. Remember, these students are also entitled to grants from their
institutions (Tertiary Education Commission, Foundation for Science, Research &
Technology) to carry out such projects i.e. your project might be fully-funded by
someone else!
 Set-up an informal pool of ‘work experience’ opportunities at your institute’s
Career Centre. Recent graduates can then come in to carry out your projects while
they are building up their CV (your project would look great in it) and looking for
employment.
©Kiran Nariman 2005
ATEM Paper: CPIT Market Research Story
4 July 2005
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Importance of secondary research
Secondary data is ‘previously gathered data that might be relevant to the problem at
hand.’3 It is made up of internal data (data already collected within the organisation)
and/or external data (data collected outside the organisation).
Before you embark on a project, it is vital that you undertake secondary research because
it is likely that someone else may have already undertaken a similar project.
‘Secondary research lays the groundwork and primary research helps fill in the gaps. By
using both types of market research, business owners get a well-rounded view of their
market and have the information they need to make important business decisions.’4
Secondary research helps by:
 Clarifying the problem
 Maybe providing a solution (i.e. your project might have already been undertaken
by someone else and publicly available)
 May provide primary research methods alternatives
 May alert the researcher to potential problems and difficulties
 May provide necessary background information and build creativity.
The limitations of secondary data are:
 Lack of availability
 Lack of relevance
 Inaccuracy (purpose of study, owner of data, outdated, consistency with other
info, how was info gathered)
 Insufficient (depending on the nature of your project – if the information you are
after is very specific to your organisation, the gaps can only be filled by primary
research)3
Some useful links/websites for secondary research
The internet is now one of the largest sources of information; however, it is also the
greatest source of invalidated information and should be used with caution.
Attention should be paid to the references cited in web articles, whether the owner of the
information is a credible one (look at branding elements and ‘search’ on the organisation)
and whether they belong to an industry association e.g. MRSNZ, ATEM.
Here are some useful sites, a description of the information they provide (relevant to the
tertiary sector) and some examples of recent reports:
©Kiran Nariman 2005
ATEM Paper: CPIT Market Research Story
4 July 2005
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Website
Statistics New Zealand
www.stats.govt.nz
Ministry of Education
www.minedu.govt.nz
©Kiran Nariman 2005
Information
By age, gender, ethnicity, regional area:
Population changes
Employment – industry & occupation
Economy
Environment
Early childhood education, primary, secondary
and tertiary education information.
School statistics:
 Enrolments by school type, region and
district
 Student ethnicity
 Maori Medium Education enrolments
 Subject enrolments by Student age and
year of schooling
 Pacific Language Education
 Overseas students
Tertiary statistics on Polytechnics, Universities,
Wanangas and PTEs:
 Enrolment information
 Qualification completions
 Tertiary staff
 Community education
ATEM Paper: CPIT Market Research Story
4 July 2005
Recent reports
What you can find out from the tertiary section:
 School leavers with/without qualifications, 1991-2000
 Skill New Zealand training programmes, 1993-2000
 Tertiary students under 25 years with/without school
qualifications, 1994-2000
 First year tertiary students with/without school
qualifications, 1994-2000
 Unemployment beneficiaries, 1991, 1996 and 2000
 Unemployment trends for young people
 Student decision-making by prospective students
 Impact of student support services on student outcomes
in undergraduate study
 Living with a student loan
 Student loan scheme borrowers
 Annual Report on Maori Education
 NZ Education Sector Profile & Trends
 Participation in Tertiary Education
 Retention, Completion & Progression in Tertiary
Education
 Managing International Student Numbers at NZ Public
Universities & Polytechnics
 Pastoral Care of International Students
 Impact of international students on domestic students
and host institutions
 Moving forward in International Education
 Special Needs Education: Fact Sheet
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NZ University
Students’ Research on student debt, student loans
Association
Industry specific research e.g. medical and
www.students.org.nz
teaching
Department of Labour
www.dol.govt.nz
Work Insight NZ
www.workinsight.govt.nz
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Job vacancy monitor
 Occupation Report: By Trade (e.g. Electrician, Panel
Reports
by
Occupation:
Skill
Shortage
Beater etc)
Assessments
 Future of Work: Work Trends
Labour Market Reports:
 PeoplePower: Successful Diversity at Work
-Overview
 Migrants’ experiences of NZ
-Labour Market Outlook
-Skills in the Labour Market
-Employment and Unemployment
-Wage Growth
-External Migration
-Economic Growth
-Regional Labour Markets
-Income Survey
Quarterly Online booklets (hardcopies available Edition 5: Maori Pathways
from Dept of Labour) focussed on hot topics areas.
Five produced so far:
1. Edition 1: The Big Picture
2. Edition 2: Youth Pathways
3. Edition 3: Mature Students
Pathways
4. Edition 4: Pathways to Work
©Kiran Nariman 2005
Report on Student Income & Expenditure
Impact of Fees on Seventh Formers’ Decision-making
ATEM Paper: CPIT Market Research Story
4 July 2005
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Education NZ
www.educationnz.org.nz
Kiwi Careers Website
www.kiwicareers.co.nz
©Kiran Nariman 2005
Focus is on international students:
Market backgrounds by country
Industry facts and figures
Research outcomes on international students and
migrants
Overviews by Industry
Key Statistics by Industry
Trends by Industry
Regional Market Details
Training requirements by Industry
Training providers and courses by industry
ATEM Paper: CPIT Market Research Story
4 July 2005
 Campus-Community Linkages
 Language Learning Development
 Perceptions of Privacy & Support
 International Student Numbers
 Stocktake of NZ Literature on Export Education
 Academic Achievement Levels of International Students
 Managing Cultural Diversity in the Classroom
 Impact of Immigration Policy on enrolments
This website is useful particularly for overviews and trends, and
is an excellent base for Competitor Analyses
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Customised data
While reviewing the prepared reports (above), it is likely that you might want further
details on a specific area, or would like to use some of the graphs and visuals in your own
reports.
Most of these organisations are more than willing to help you out. Some offer assistance
free of charge.
Email the contacts in the websites above, stating exactly what you are after and ask for a
quote. Charges are reasonable – normally around a $100 per customised visual.
History of Market Research at CPIT
The Issues at CPIT – 2002
1. Lack of system
There was no system for the coordination and centralisation of market research at
CPIT. Market research was only carried out by the Marketing Manager on
strategic areas (time permitting).
2. Limited faculty research
Operational research (research on programmes and courses) was carried out
within faculties – this was limited and not conducted thoroughly. New
programmes and initiatives were introduced based on anecdotal research and as a
result, a significant number of programmes/initiatives did not live up to
expectations in terms of enrolments.
3. Lack of knowledge and skills
To a certain extent, there was a lack of knowledge and skills around market
research and its processes among staff.
4. Limited measurement within marketing
There was limited measurement of marketing activity within the Marketing
Team. Workloads were high and focus was always on marketing and recruitment.
Measurement was only provided by the advertising agency in terms of
advertisement coverage which was not sufficient enough a measure.
As with any tertiary institution, lack of financial and human resource contributed to these
issues.
A temporary market research system CPIT – 2002
A temporary system was set up to address the above issues. This system consisted of:
1. Creating more awareness among staff about the new market research capability in
the SSI Division.
©Kiran Nariman 2005
ATEM Paper: CPIT Market Research Story
4 July 2005
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2. A research request system where a form template was set up, asking specific
questions about the project/problem at hand, budget and timeframes.
3. A set of criteria set up to prioritise the requests.
This system brought the following advantages:
 An increased market research profile at CPIT
 Acknowledgement (and enthusiasm) of the importance of market research
 A threefold increase in the original market research budget
But, as the market research profile grew, so did the research requests. It was difficult for a
one-person team to cope with these requests. As a result, the system had to be reviewed to
find a better market research management model.
The solution options – 2003
A document was developed for discussion by Senior Management Team on the best model
for CPIT. The following were the alternatives proposed:
1. To remain with the status quo
Market Research Officer (MRO) undertakes a limited range of projects (prioritised)
every year. Faculties use the current forms to request research.
2. Increase human resource in market research
A second MRO or field researcher employed to focus on operational research projects,
while current MRO focuses on strategic research.
3. Faculties solely responsible for operational research
Faculties take complete responsibility for their operational research and MRO focuses
on strategic research. MRO will be able to assist in methodology design and ensures
that staff have access to market research tools and training but no funding assistance
will be provided.
4. Faculty based market research with MRO funding assistance
Faculties undertake their own operational research with MRO assistance in
methodology design and MRO contribution to project costs. MRO also ensures that
staff have access to market research tools and training to upskill themselves in the
area. MRO focuses on strategic research.
5. Increase outsourcing of market research
All operational research is outsourced to local agency while MRO focuses on strategic
research. MRO will manage the external contracts.
Option 4 was the model that was approved for the following reasons:
 It ensures that operational research (new programme feasibility and programme at
risk research) is carried out by the faculty. This is the case in most academic
institutions as the faculty holds the most information on its product.
 It ensures buy-in into the market research (from planning to implementation) by
the faculty staff. Learning about market research by ‘doing’, also helps staff
understand the value of market research and its processes.
©Kiran Nariman 2005
ATEM Paper: CPIT Market Research Story
4 July 2005
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It ensures that the MRO still has a part to play in the process, by
supervising/coordinating the research, making sure that the information is
communicated to key people at CPIT.
By partially funding the research through the MRO budget, there is an incentive
for the faculty to undertake more thorough market research.
The MRO is able to focus on strategic research, advertising research, events-based
research, internal research and other projects/initiatives.
It is an option that has low impact on budgets – faculty and main market research
budget.
Outcomes of CPIT Market Research Model
Implementation of this model started in 2003 and is now near completion.
The milestones achieved through this model include:
 A high market research profile at CPIT – people are ‘talking’ market research
everywhere.
 More focus on strategic research projects – supporting senior management team
decision-making.
 Significant information available for staff to base their strategic planning on.
 More empowerment for faculty staff to undertake their own research projects due
to financial assistance.
 Upskilling of faculty staff in market research skills through provision of (nearly
fully funded) training in research software and research methods.
 Development of an online library (database – see Appendix) of secondary research
information for staff to help kick-start their projects.
 Marketing campaigns and liaison activity measured for both recruitment periods.
Designing a similar model for your institution
As with any project - in planning, designing and implementing a similar model at your
institution - it is important to take into account:
 The culture of your organisation
Do people respond to policies and procedures or do they view it as more red tape? If
the latter, make sure the system is simple and transparent.
 Consultation with staff
In planning any system, consult widely. At the end of the day, you need to show that
the needs’ of the majority have been taken into account when designing your systems
and tools. With the CPIT MR Model, discussions were held with staff involved in
strategic planning and operational planning. Strategic research was identified as highpriority, however, operational research could not be ignored. The decision was then
made to make sure the model supported both needs – the undertaking of strategic
research by the MRO and the empowerment of staff to undertake operational
research.
©Kiran Nariman 2005
ATEM Paper: CPIT Market Research Story
4 July 2005
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 Academic research section
It is important to ensure that your market research system is not confused with
academic research systems. Find out how academic research is conducted in your
institution and make sure your processes are well differentiated, if appropriate. It may
be that you are able to use the same policies and procedures and have a set of criteria
at some stage that differentiates academic research projects from market research
projects so that it is conducted appropriately.
 Sell your system
Use the five principles of business: 1)What’s 2)in 3)it 4)for 5)me? And sell your
system to meet these drivers. Always look at the system from the client’s perspective
and point out the system’s personal benefits e.g. provision of skills by funding a
training session for them in market research, paying for the printing and postage of
their surveys etc. These are small investments that will ensure client buy-in to your
system.
 Review your system
Track the success of your system. Seek formal and informal feedback on how it is
working for people. Monitor participation in research training workshops and
monitor use of your tools like the online research library. Monitor the surveys you
assist staff with – the outcomes and how they are used. This will give you an idea of
how the system is contributing to final decision-making.
Conclusion
In summary:
How important is it in deciding who gets to be the 'rule-maker' in the competitive market?
Information underlies everything we do – making a decision, selling an idea, introducing
a new programme, revamping an old course. Access to the information gives you an
advantage. The way in which you use the information will set you apart. Monitor the
information to stay ahead of the game.
Is it possible that half the market research has already been done?
Entirely possible. Trust that people think the same way you do and trust that someone has
already done something about it. In using the information, pay attention to how the
research was conducted, the population sampled and the methodologies used.
How do we make market research happen without the dollars and the donkeys? = The
possible structures and processes for market research to take place.
The key is to work smarter not harder. For strategic research, set up collaborative work
structures to carry out strategic research like environmental scanning. The team can be a
rotating one and representative of the different sections of the institution. Each team
©Kiran Nariman 2005
ATEM Paper: CPIT Market Research Story
4 July 2005
Page 13 of 15
member contributes (and interprets) information regarding their areas. This information
can then be pooled and structured by a student or administrator.
For operational research, focus some professional development budget on market research
to upskill staff in research methods. Staff can then manage their own operational research
projects.
Alternatively, use some of the ideas outlined in this paper.
And what's on the reality show? ChCh Polytechnic Institute of Technology
“Our ‘industry’ is being reinvented before our eyes and CPIT will either become a rulemaker in a changing climate; or by default will become a rule-taker.”5
For Market Research to be where it is today at CPIT – the acknowledgement of its
importance in being prepared for the future – has been a significant step. It is allowing us
to be proactive rather than reactive to the environment. We now have the opportunity to
‘manage risk, change and uncertainty without becoming their victim.’5
REFERENCES
Dr Andrew Fearne, ‘The Strategic Importance of Market Research’ (Paper presented at
the 1999 UK Soft Fruit Conference), Food Industry Management, Wye College,
University of London.
1
Acuity Research Group Inc., Market Research Consulting
http://www.acuityresearchgroup.com/marketing_research.html
2
Paul Patterson, Marketing Internship Program, Business & Economics Division,
St Martin’s College, WA, USA.
http://homepages.stmartin.edu/fac_staff/ppatterson/)
3
All Business: Champions of Small Business, www.allbusiness.com
4
Russ Skinner, CPIT: Into the Third Millenium, 2000
5
©Kiran Nariman 2005
ATEM Paper: CPIT Market Research Story
4 July 2005
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©Kiran Nariman 2005
ATEM Paper: CPIT Market Research Story
4 July 2005
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