SAMPLE. Not for training purposes. Student Workbook. BSBMKG506 Plan market research. 1 st Edition 2016

Transcription

1 Student Workbook BSBMKG506 Plan market research 1 st Edition 2016 Part of a suite of support materials for the BSB Business Services Training Package

2 Acknowledgement Innovation and Business Industry Skills Council (IBSA) would like to acknowledge Box Hill Institute of TAFE for their assistance with the development of the resource for BSBMKG506B. BSBMKG506B Writer: Tracy Willis Revised by IBSA for BSBMKG506 (2016) Industry reviewer: Arthur D Aprano Copyright and Trade Mark Statement 2016 Innovation and Business Industry Skills Council Ltd All rights reserved. Apart from any use permitted under the Copyright Act 1968, no part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, or otherwise, without written permission from the publisher, Innovation and Business Industry Skills Council Ltd ( IBSA ). Use of this work for purposes other than those indicated above, requires the prior written permission of IBSA. Requests should be addressed to Products and Services Manager, IBSA, Level 11, 176 Wellington Pde, East Melbourne VIC 3002 or sales@ibsa.org.au. Innovation and Business Skills Australia, IBSA and the IBSA logo are trade marks of IBSA. Disclaimer Care has been taken in the preparation of the material in this document, but, to the extent permitted by law, IBSA and the original developer do not warrant that any licensing or registration requirements specified in this document are either complete or up-to-date for your State or Territory or that the information contained in this document is error-free or fit for any particular purpose. To the extent permitted by law, IBSA and the original developer do not accept any liability for any damage or loss (including loss of profits, loss of revenue, indirect and consequential loss) incurred by any person as a result of relying on the information contained in this document. The information is provided on the basis that all persons accessing the information contained in this document undertake responsibility for assessing the relevance and accuracy of its content. If this information appears online, no responsibility is taken for any information or services which may appear on any linked websites, or other linked information sources, that are not controlled by IBSA. Use of versions of this document made available online or in other electronic formats is subject to the applicable terms of use. To the extent permitted by law, all implied terms are excluded from the arrangement under which this document is purchased from IBSA, and, if any term or condition that cannot lawfully be excluded is implied by law into, or deemed to apply to, that arrangement, then the liability of IBSA, and the purchaser s sole remedy, for a breach of the term or condition is limited, at IBSA s option, to any one of the following, as applicable: (a) if the breach relates to goods: (i) repairing; (ii) replacing; or (iii) paying the cost of repairing or replacing, the goods; or (b) if the breach relates to services: (i) re-supplying; or (ii) paying the cost of re-supplying, the services. Published by: Innovation and Business Industry Skills Council Ltd Level Wellington Pde East Melbourne VIC 3002 Phone: Fax: reception@ibsa.org.au ISBN: Stock code: BSBMKG5061W 1 st edition published: st edition version: 1 Release date: 2016

3 Student Workbook Introduction Table of Contents Introduction...1 Features of the training program...1 Structure of the training program...1 Recommended reading...1 Section 1 Identify Market Research Needs...3 What skills will you need?...3 The role of market research in enterprise operations...4 The contribution of market research to enterprise activity...6 Determining market research needs...8 Targeting your research...9 Developing a statement of market research needs Drafting research objectives Section summary Further reading Section checklist Section 2 Define Market Research Objectives What skills will you need? Consulting with relevant personnel on draft objectives Undertaking preliminary project scoping Reviewing and finalising objectives Section summary Further reading Section checklist Section 3 Define Data-gathering Approaches What skills will you need? Designing effective research Identifying types of data required to inform objectives Determining combinations of data types to best inform objectives Identifying and evaluating suitable data gathering methods Sources of data Sampling Identifying and evaluating suitable data processing methods Making decisions about data gathering approaches Section summary Further reading Section checklist BSBMKG506 Plan market research 1 st edition version: 1 Innovation and Business Industry Skills Council Ltd

4 Introduction Student Workbook Section 4 Develop Market Research Plan What skills will you need? Estimating time and resources Determining the feasibility of market research projects Preparing a market research plan Obtaining approval for plan Section summary Further reading Section checklist Glossary Appendices Appendix 1: Useful websites for marketing and communication st edition version: 1 BSBMKG506 Plan market research Innovation and Business Industry Skills Council Ltd

5 Student Workbook Introduction Introduction Features of the training program The key features of this program are: Student Workbook Self-paced learning activities to help you understand key concepts and terms. The Student Workbook is broken down into several sections. Facilitator-led sessions Challenging and interesting learning activities that can be completed in the group session or by distance learning that will help you consolidate and apply what you have learned in the Student Workbook. Assessment tasks Summative assessments where you can apply your new skills and knowledge to solve authentic workplace tasks and problems. Structure of the training program This training program introduces you to the skills, knowledge and attributes required to plan market research. Specifically, you will develop the skills and knowledge in the following topic areas. 1. Identify market research needs 2. Define market research objectives 3. Define data gathering approaches 4. Develop market research plan. Your facilitator may choose to combine or split sessions. For example, in some cases, this training program may be delivered in two or three sessions, or in others, as many as eight sessions. Recommended reading Some recommended reading for this unit includes: Belch, G. E., and Belch, M. A., 2011, Advertising and promotion: an integrated marketing communication perspective, 9th edn, McGraw-Hill, New York. Boyce, J., 2002, Market research in practice, McGraw-Hill, Roseville, NSW. Chitty, W., Barker, N., and Shimp, T. A., 2008, Integrated marketing communications, 2nd edn, Cengage Learning Australia, South Melbourne. Gillies, P., and Selvadurai, N., 2008, Marketing law, The Federation Press, Annandale, NSW. This text covers Australian and applicable international laws applying to manufacturing, packaging, labelling, advertising, promotion, pricing and the sale of goods and services. BSBMKG506 Plan market research 1 st edition version: 1 Innovation and Business Industry Skills Council Ltd Page 1 of 56

6 Introduction Student Workbook Jobber, D., and Ellis-Chadwick, F., 2012, Principles and practice of marketing, 7th edn, McGraw-Hill Higher Education, Maidenhead, Berkshire, UK. This edition offers a contemporary perspective on marketing, with the latest digital developments and ethical accountability emphasised throughout. Kitchen, P. J., and Burgmann, I., 2010, Integrated marketing communication, in J. Sheth (Ed.), Wiley international encyclopedia of marketing, John Wiley & Sons Ltd. Kotler, P., and Lane Keller, K., 2016, Marketing management, Global edn, 15th edn, Pearson, Boston. Kotler, P., Adam, S., Denize, S., and Armstrong, G., 2014, Principles of marketing, 6th edn, Pearson Australia, Frenchs Forest, NSW. Kotler, P., Adam, S., Denize, S., and Armstrong, G., 2011, Principles of marketing, 5th edn, Pearson Australia, Frenchs Forest, NSW. Kotler, P., 2014, Kotler on marketing: how to create, win, and dominate markets, Free Press, New York. Perreault, W., Cannon, J., and McCarthy, E., 2013, Basic marketing; a marketing strategy planning approach, 19th edn, McGraw-Hill/Irwin. Scott, D. M., 2013, The new rules of marketing and PR: how to use social media, online video, mobile applications, blogs, news releases, and viral marketing to reach buyers directly, 4th edn, John Wiley & Sons, Hoboken, New Jersey. Solomon, M. R., Hughes, A., Chitty, B., Marshall, G. W., and Stuart, E. W., 2016, Marketing: real people, real choices, Global edn, 8th edn, Pearson Australia, Frenchs Forest NSW. Tong, E., and Taylor, D., 2004, Understanding marketing research, Pearson Education, Frenchs Forest, NSW. Zikmund, W. G., 2003, Essentials of marketing research, 2nd edn, Thompson South Western, Mason, Ohio, USA. Zikmund, W. G., and Babin, B. J., 2013, Essentials of marketing research, 5th edn, Cengage Learning, USA. Please note that any URLs contained in the recommended reading, learning content and learning activities of this publication were checked by IBSA and correct at the time of publication. Note, however, that IBSA cannot vouch for the ongoing currency of URLs. Every endeavour has been made to provide a full reference for all web links. Where URLs are not current we recommend using the reference information provided to search for the source in your chosen search engine. 1 st edition version: 1 BSBMKG506 Plan market research Page 2 of 56 Innovation and Business Industry Skills Council Ltd

7 Student Workbook Section 1 Identify Market Research Needs Section 1 Identify Market Research Needs This section is about identifying market research needs. Scenario: Mary s research needs Mary is the marketing director of a division within a large, diversified company in the health services industry. Her division sells, among other products, surgical instruments, dressings, pads, and drug delivery devices. She has a range of customers in clinics, hospitals, and nursing homes. The market in which Mary s division competes is considered mature, so there is little room for growth without new or innovative products. Recently, Mary was contacted by a Swiss supplier of monitoring devices designed for use by outpatients. These devices have unique features that will have definite competitive advantages in the health services sector. Mary is keen on exploring the potential of these devices before she makes a final decision on whether to enter into a partnership with the supplier and makes plans to market the new products and associated services. She contacts the in-house marketing researcher for assistance. Mary will need to work with the in-house team to determine whether market research can help, or whether an external market research consultancy is better placed to conduct the research. If research is appropriate, she will need to determine research needs and work with market researchers to craft an initial scope, including draft objectives for the research. What skills will you need? In order to work effectively as a market researcher, you must be able to: communicate the role of market research in enterprise operations identify the contribution of market research to enterprise activity determine research needs develop a statement of market research needs draft research objectives. BSBMKG506 Plan market research 1 st edition version: 1 Innovation and Business Industry Skills Council Ltd Page 3 of 56

8 Section 1 Identify Market Research Needs Student Workbook The role of market research in enterprise operations Information is the most important asset an organisation can have in our current highly competitive environment. After all, poor decision-making results in wastage of resources and high costs. For an organisation to make better decisions, it needs information that is current, accurate, reliable, relevant and valid. Research provides this information. Research is the systematic collection and interpretation of data to increase your understanding. Market research can be seen as the systematic collection and interpretation of information and data that an enterprise needs to solve a problem and make operational and strategic decisions such as: what customers the enterprise has, or what customers it wants to target what markets it operates in or what markets it wants to target the products or services it offers any new products or services to be developed who the competitors to the enterprise are how to promote and distribute its products or services what techniques or methods work best, or will work best in relation to the sales of the products or services what external influences will affect the enterprise and its products or services. Marketing research versus market research Market and marketing research are terms often seen in publications with little explanation of the distinction, mostly due to the fact that the methodology used to undertake each type of research is the same. Some publications will note that there is no difference; others, however, will recognise that there is a slight technical difference between these terms. Marketing research is about obtaining information regarding characteristics, situations, events, attributes, attitudes and opinions that may assist an enterprise to make marketing-related decisions. This information is specific to the customers, or proposed customers, of the enterprise. Market research is generally considered to have a wider approach, looking at the same factors as marketing research, but for people in general, not simply those customers of an enterprise. Market research also commonly obtains information about other factors such as economic, political and social factors. Learning activity: Market research organisations Using the internet or other sources, identify five organisations in Australia that provide market research. For each organisation, list two examples of market research that they have conducted in the last two years. 1 st edition version: 1 BSBMKG506 Plan market research Page 4 of 56 Innovation and Business Industry Skills Council Ltd

9 Student Workbook Section 1 Identify Market Research Needs Document your findings below. Communicating the role of market research When planning market research, you will need to ensure that you can communicate the role of the research to various groups of people both internal and external to the organisation. Internally you will need to communicate with managers, supervisors and enterprise owners in order to have the research approved. This will include advising them of: the purpose and objectives of the planned research the processes, costs, timelines and resource requirements. Externally you may need to communicate with the supplier, customer and clients to obtain their cooperation or participation in the research. They also may have an interest in the outcomes of the research. BSBMKG506 Plan market research 1 st edition version: 1 Innovation and Business Industry Skills Council Ltd Page 5 of 56

10 Section 1 Identify Market Research Needs Student Workbook Learning activity: Overview of marketing research Go to the Know This website < and review the Marketing Research tutorial under Marketing Tutorials, then Marketing Research. Answer the following questions. What are two types of research that are appropriate for making decisions about promotion? What are the risks in market research? The contribution of market research to enterprise activity While the general purpose of market research is to provide an enterprise with the information and data needed to solve a problem, market research also contributes to an enterprise through information on: best practices competitors, clients, stakeholders strategic planning forecasting of: marketing policy making product or service development and delivery. 1 st edition version: 1 BSBMKG506 Plan market research Page 6 of 56 Innovation and Business Industry Skills Council Ltd

11 Student Workbook Section 1 Identify Market Research Needs Best practices Best practices can be defined as the activities, techniques, processes or procedures that produce the best performance or optimal results. For marketing, best practices may relate to: product mixes sales processes promotional activities fulfilment services loyalty programs. Market research can assist you in identifying best practices either through direct research into some of these areas, or through an analysis of results from a market research exercise. Learning activity: Best practices Using the internet or other sources, identify at least two current best practices in marketing. Describe each best practice and explain how it might be used in your workplace, or in a workplace with which you are familiar. Document your findings below. Competitors, clients and stakeholders Understanding the competitors, clients and stakeholders of an enterprise is essential for success. Market research can be helpful to you in identifying these groups, but it may also assist you in better understanding the needs of each of these groups. BSBMKG506 Plan market research 1 st edition version: 1 Innovation and Business Industry Skills Council Ltd Page 7 of 56

12 Section 1 Identify Market Research Needs Student Workbook Determining market research needs Determining market needs can be seen through the lenses of forecasting and strategic planning. Forecasting Forecasting is a key activity of business planning. All successful enterprises undertake planning on a regular basis, and part of the plan usually relates to market activities of the enterprise. Market research can provide an enterprise with information that will assist in forecasting decision such as: identifying trends in marketing identifying product or service changes that will require related marketing activities identifying market or customer changes that may require the development of new markets enabling issues to be identified that are currently not supported by policy, or where policy is currently outdated. Strategic planning Strategic planning refers to the high-level planning that most successful enterprises undertake. It shares some aspects of forecasting but is more focused on identifying the objectives, goals and strategic plans of an organisation for the medium-term (3 5 years) and long-term (5 10 year) periods. Learning activity: Strategic planning Using the internet or other sources, identify the content of a strategic plan. Explain how market research could contribute to each item. Document your findings below. 1 st edition version: 1 BSBMKG506 Plan market research Page 8 of 56 Innovation and Business Industry Skills Council Ltd

13 Student Workbook Section 1 Identify Market Research Needs Targeting your research The initial step in planning any market research is to determine your research needs; i.e. to determine what you really need to find out. Determining your research needs will also make it easier for you to determine the type of research that needs to be done, and to therefore plan other details such as budgets and timelines. In order to determine the research needs of the organisation, you will first need to identify and define a market research problem. There are five key steps involved in this process. In this section we will look in details at steps 1 4. Step 5 is covered in more detail in the next section, Develop a statement of market research needs. 1. Define management problem 1. Define the management problem 2. Understand the research problem 3. Find the cause of the management problem 2. Understand research problem 3. Find cause of management problem 4. Determine research objectives 5. Use research hypothesis The reason why the research is being requested; e.g. sales fell by 20% this quarter, or we want to expand our market share. This step will assist all parties in agreeing on the initial purpose of the research and why it is being undertaken. A description of the management problem from a research perspective and an action plan of what will be done. This step may involve some exploratory research on the part of the researcher and is aimed at understanding if research is required, or will be required to address the problem and to assist in developing an approach to the research; e.g. an investigation has found that competitors conducted an aggressive campaign during the last quarter. Discover the cause or underlying reason for the management problem. Additional exploratory research may be required here in order to narrow the research focus down to key issues, although a broad research project may be appropriate. The main purpose of this step is to clarify the breadth of the research, as this will affect the budget, time and resources required; e.g. sales fell due to products not addressing consumer needs. 4. Determine the research objectives The data required from the research project and what will be done to obtain it. This should enable you to determine the research project name, the data that will be required and the tasks that will be needed to obtain the data. This is a statement of the overall project objective; e.g. to determine the consumer needs of the product. BSBMKG506 Plan market research 1 st edition version: 1 Innovation and Business Industry Skills Council Ltd Page 9 of 56

14 Section 1 Identify Market Research Needs Student Workbook 5. Use a research hypothesis The assumptions used to establish the exact data requirements. Typically, this is a further statement of the research objectives, with the addition of numerical expressions, and phrased as a statement to be proved or disproved by the research; e.g. sales will improve if consumer needs are met in relation to the product. Sources of defining a management problem In order to define the management problem (step 1) you have two main avenues of information: analysing enterprise documents consulting with staff. Enterprise documents such as correspondence, financial reports, sales and sales performance data and internal reports can assist in identifying potential problems or issues that may require market research. Complaint letters, returns or service records may identify a systemic problem with a product or service. Sales data can show if particular products or services are not doing well or if there has been a change in sales performance. Similarly, financial reports can also highlight patterns or changes in product or service performance or matters related to the sales of products or services. Staff are also an excellent source of information on issues that may not catch the attention of management or appear in documentation. Changes in customer behaviours or attitudes to products or services that are affecting sales, enterprise reputation or supply issues may not be recorded, but could be experienced by staff. Research methodologies There are three main types of market research: exploratory descriptive causal. Exploratory (or diagnostic research) is research aimed at gaining a better understanding of a problem or the factors surrounding the problem. It can also assist in identifying the underlying causes of a problem. Exploratory research could involve: finding out about competitors determining demographic changes in populations observing factors affecting the issue, such as supply, access or service talking to customers about general matters. Descriptive research obtains information and data in the form of facts and figures related to a specific topic or problem. Descriptive research is pre-planned and provides definitive data that can be used to draw conclusions. 1 st edition version: 1 BSBMKG506 Plan market research Page 10 of 56 Innovation and Business Industry Skills Council Ltd

15 Student Workbook Section 1 Identify Market Research Needs Descriptive data often provides the answer to questions of who, what, where, when, how and why. Descriptive research may include observations and surveys. Causal (or predictive) research is aimed at identifying cause and effect relationships between actions and reactions. Commonly, causal research involves a combination of exploratory and descriptive research. Learning activity: Determine research needs Obtain the sales performance data for your workplace or a workplace with which you are familiar. Review the data provided, and apply required steps to determine the research needs for a product or service offered by the enterprise. Document your findings below. BSBMKG506 Plan market research 1 st edition version: 1 Innovation and Business Industry Skills Council Ltd Page 11 of 56

16 Section 1 Identify Market Research Needs Student Workbook Developing a statement of market research needs The hypothesis you develop for your research should be in the form of a statement that is to be proven or disproven. While there are no definitive rules for constructing this statement, you should consider what the overall aim of your research is and consider this in developing your statement. The following table provides some suggestions on the type of information that could be included or the possible structure of your statement for various research situations. Research situation Possible statement inclusions/structure Competition Consumers Place Pricing Products and services comparing consumer attitudes to an enterprise s services and those of competitors identifying frequency of use of competitors products and services identifying key competitors and their strengths measuring awareness. developing detailed consumer profiles identifying changes in attitudes and behaviour patterns identifying existing, potential or lapsed consumers. identifying attitudes towards location identifying cooperative opportunities for distribution of information or services identifying demand for products or services at other locations. identifying attitudes towards prices identifying costs testing alternative pricing strategies. evaluating competitors products evaluating consumer attitudes towards presentation and packaging identifying potential new products or services or ones which may be at the end of their life cycle measuring attitudes towards existing products or services. 1 st edition version: 1 BSBMKG506 Plan market research Page 12 of 56 Innovation and Business Industry Skills Council Ltd

17 Student Workbook Section 1 Identify Market Research Needs Research situation Promotion Possible statement inclusions/structure measuring advertising and promotion effectiveness testing alternative messages testing and comparing different media options. Learning activity: Statements of research needs Locate a market research proposal from your workplace, a workplace with which you are familiar, or by using the internet. What was the research situation? What was the statement of research needs? Learning activity: Mary s research Refer back to the case study presented at the start of this section. Assume you are the in-house researcher with the resources of a larger company available to you and answer the following. What types of market research would you employ? BSBMKG506 Plan market research 1 st edition version: 1 Innovation and Business Industry Skills Council Ltd Page 13 of 56

18 Section 1 Identify Market Research Needs Student Workbook What kinds of information would you be looking for, both internally and externally, and from whom? Draft a statement of market research needs for this project. Drafting research objectives Draft research objectives are first created during the identification of the research needs of a market research project. Before proceeding with your research project, you will need to further define your research objectives in order to: undertake preliminary scoping of your project finalise your objectives and obtain approval for the research project. Ascertain the decision makers objectives Having drafting the objectives of your research project, you need to determine the objectives of the decision makers, as they will need to approve your project. It will not matter if the decision makers are internal or external clients, or management; if there is a misalignment between the objectives you drafted, and what they are seeking, you are unlikely to gain approval for your project. When reviewing your draft objectives against the initial brief provided to you, you should consider the process undertaken to determine the objectives. 1 st edition version: 1 BSBMKG506 Plan market research Page 14 of 56 Innovation and Business Industry Skills Council Ltd

19 Student Workbook Section 1 Identify Market Research Needs In particular you should focus on ensuring that you: have isolated and identified the problem, not the symptoms. It is often easier to focus on the symptoms of an issue, rather than understanding what is causing it. This could be due to you not being fully conversant with how the client environment operates, or because the initial brief provided to you focused on resolving the symptoms. A market research project will be unsuccessful if it does not uncover the causes and focus the research on understanding these causes. fully understand all aspects of the problem and that any assumptions you made to determine the objective have been documented. Part of your initial exploratory research may have required you to make assumptions. Documenting these assumptions can ensure that you are able to explain these decisions and will make it easier to make adjustments to your objectives as part of the approval process. have identified all key variables or factors that may change either your assumptions or the outcomes. Learning activity: Research objectives Locate two market research proposals for a workplace you are familiar with or by using the internet. What are the research objectives? BSBMKG506 Plan market research 1 st edition version: 1 Innovation and Business Industry Skills Council Ltd Page 15 of 56

20 Section 1 Identify Market Research Needs Student Workbook Section summary You should now understand how to identify market research needs. Further reading ACMA (Australian Communications and Media Authority), Anti-spam, < Australian Competition and Consumer Commission, Advertising and selling guide 2014: a guide for business, < Advertising%20and%20selling_FA_2015.pdf>. Australian Competition and Consumer Commission, 2016, Advertising and promoting your business, < All About Market Research, Marketing Research tutorials, e-learning tips and guides, < Bizfilings, Without market research you will miss valuable opportunities, < Boyce, J., 2002, Market research in practice, McGraw-Hill, Roseville, NSW. Inbound, The top 50 marketing blogs on the web, < blogs>. Office of the Australian Information Commissioner, Privacy fact sheet 17: Australian Privacy Principles, < Tong, E., and Taylor, D., 2004, Understanding marketing research, Pearson Education, Frenchs Forest, NSW. Zikmund, W. G., and Babin, B. J., 2013, Essentials of marketing research, 5th edn, Cengage Learning, USA. Section checklist Before you proceed to the next section, make sure that you are able to: communicate the role of market research in enterprise operations identify the contribution of market research to enterprise activity determine research needs develop a statement of market research needs draft research objectives. 1 st edition version: 1 BSBMKG506 Plan market research Page 16 of 56 Innovation and Business Industry Skills Council Ltd