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 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 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 Page 2 of 15 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: 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 Page 3 of 15 Areas in a tertiary institution requiring market research Market research underlies the following areas: 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 Page 4 of 15 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 Page 5 of 15 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 Page 6 of 15 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 Page 7 of 15 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 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 Page 8 of 15 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 Page 9 of 15 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 Page 10 of 15 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 Page 11 of 15 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 Page 12 of 15 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 Page 14 of 15 ©Kiran Nariman 2005 ATEM Paper: CPIT Market Research Story 4 July 2005 Page 15 of 15