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Figure 1.1 Introduction to Marketing Research: An Overview
Internet Applications
Definition of Marketing Research
Fig 1.2
A Classification of Marketing Research
Table 1.1
Fig 1.3
Marketing Research Process
Fig 1.4
The Role of Marketing Research in Decision Making
Fig 1.5
Application to Contemporary Issues
TQM
International
Technology
Ethics
Focus on Elrick & Lavidge
Opening Vignette
Figure 1.1 Introduction to Marketing Research: An Overview(cont.)
Internet Applications
Marketing Research Industry
Fig 1.6
Table 1.2
Selecting a Research Supplier
Careers in Marketing Research
Fig 1.7
The Role of Marketing Research in MIS and DSS
Figs 1.8 and 1.9
Application to Contemporary Issues
TQM
International Technology
Ethics
Focus on Elrick & Lavidge
Opening Vignette
Figure 1.2 Defining Marketing Research
Identification of
Information Needed
Identifying and
Solving Marketing
Problems
Collection of
Data
Analysis of
Data
Dissemination of
Results
Figure 1.3 A Classification of Marketing Research
Marketing
Research
Problem
Identification
Research
•Market Potential Research
•Market Share Research
•Image Research
•Market Characteristics
Research
•Forecasting Research
•Business Trends Research
Problem
Solving
Research
•Segmentation Research
•Product Research
•Pricing Research
•Promotion Research
•Distribution Research
Why Study Marketing Research?
• Marketing Research: Systematic and objective planning,
gathering, recording, and analyzing of information to
enhance the decision making of marketing managers.
• Marketing: Tool used by managers to satisfy consumer
desires. The AMA defines marketing as “the process of
planning and executing the conception, pricing, promotion,
and distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational
objectives.”
• Marketing Concept: Management philosophy stating that
to satisfy organizational objectives, the wants and needs of
target markets must be determined so that products can be
created to satisfy those desires better than competitors do.
Who Does Marketing Research?
Applied versus Basic Research
• Research: Systematic and objective investigation
of a subject or problem to discover relevant
information or principles.
• Basic research: Provides information about a
phenomenon or tests a theory or hypothesis (does
not solve a specific problem).
• Applied research: Problem-specific research that
focuses on helping managers resolve specific
problems.
Top 10 Marketing Research Companies
1. ACNielsen Corp. - $1,577.0 million
2. IMS Health Inc. - $1,131.2 million
3. Information Resources Inc. - $531.9 million
4. VNU Inc. - $526.9 million
5. NFO WorldGroup Inc. - $470.5 million
6. The Kantar Group Ltd. - $270.0 million
7. Westat Inc. - $264.4 million
8. Arbitron Inc. - $206.8 million
9. Market Facts Inc. - $190.3 million
10. Martiz Marketing Research Inc. - $172.0 million
Personal Computer Capabilities
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Computer-aided personal interviewing
Integrated survey packaging
Adaptive survey packages
Fast tabulations
Online panel/databases
Automated fieldwork administration
Online coding/data entry
Online surveying
User-friendly analysis software
Improved presentation of results
Marketing Research Companies
• Syndicated Services: Full-service agencies which
routinely collect information and report their
findings to several clients or companies that
subscribe to their service; data is not usually
problem specific.
• Standardized Research Services: Examines a
particular aspect of the market in a unique way
and uses a standard research method for different
clients, allowing for comparisons between studies
and across other evaluative standards.
• Custom Houses: “Ad hoc services” that tailor
their studies to the client’s needs.
Marketing Research Companies – cont’d
• Independent Consultants: Offer expert
knowledge and skills in specialized subjects.
• Field Services: Collect data via interviews in the
field. (A “field” is a place where information is
collected.)
• Coding and Data Entry Services: Edit collected
surveys from respondents and code the responses.
• Tabulation Houses: Quantitative specialists
which perform statistical analyses and turn raw
data into information that managers can use.
Who Uses Marketing Research?
• Company lacking information about its markets.
• AMA study revealed the average marketing
research budget was $1.9 million for marketing
research departments.
• Consumer and industrial manufacturers,
advertising agencies, and retailers/wholesalers
spend about 1.2% of sales on marketing research.
Financial services, publishers/broadcasters, health
services, and utilities spend about 0.6%.
Percentage of Companies with Formal
Marketing Research Department
1.
2.
3.
4.
5.
6.
7.
8.
9.
Retailing/Wholesaling - 91
Manufacturers of Consumer Products - 89
Publishing and Broadcasting - 86
Nonprofit Institutions - 85
Advertising Agencies - 79
Utilities - 79
Financial Services - 76
Manufacturers of Industrial Products - 66
Health Services - 43
The Marketing Manager
• Marketing Manager: Responsible for making the
decisions that will help the company achieve its objectives
in its target markets.
• Marketing Management: The analysis, planning,
implementation, and control of programs designed to
create, build, and maintain beneficial exchanges with target
buyers for the purpose of achieving organizational
objectives.
• The Decision-Making Process: Recognize the problem
or opportunity, define the problem or opportunity, search
for feasible courses of action, evaluate the options and
select the optimal course, implement the plan, and evaluate
the results.
Do Marketing Researchers Have
an Ethical Responsibility?
• Ethics : General nature of morals and of specific moral
choices: moral philosophy and the rules or standards
governing the conduct of the members of a profession.
• Business ethics: “Moral principles and standards that
guide behavior in the world of business.”
• Social responsibility: Obligation a business assumes
toward society.
– Economic responsibilities: Produce goods and
services society needs and wants at a price that can
perpetuate the business and satisfy its obligations to
investors.
Do Marketing Researchers Have
an Ethical Responsibility? – cont’d
– Legal responsibilities: Laws that businesses must obey.
– Ethical responsibilities: Behaviors or activities expected of
business by society.
– Voluntary responsibilities: Behaviors and activities society
desires and business values dictate.
• CASRO: Council of American Survey Research
Organizations – based in the United States. National trade
association for commercial research firms. 170 member
firms from United States.
• ESOMAR: European Society for Opinion and Marketing
Research - based in Amsterdam, Netherlands. Society of
over 4,000 individual members in 100 countries.
DECISION TIME!
How vital do you think business ethics and
social responsibility are to companies today?
What responsibilities do you believe
marketing providers have to be ethical and
socially responsible?
What if such behavior hurts company profits?
Training for Jobs in
Marketing Research
• Marketing research courses at universities
and training institutes
• Internships with research organizations
• Cooperative education with research
organizations
• Working in some capacity with marketing
departments within businesses
What Job Opportunities Exist
in Marketing Research?
• Vice President: Senior position, responsible for all
marketing research activities and establishing goals for the
research group.
• Director: Following the vice president, the senior position
within the research organization. Has overall responsibility
for the creation and implementation of all marketing
research projects.
• Assistant Director: Person directly behind the director in
the chain of command within the research organization.
Supervises specific research projects.
• Senior Analyst: Works closely with others in planning and
executing research projects. Also writes the final report
covering the research effort.
What Job Opportunities Exist in
Marketing Research? – cont’d
• Statistician: Expert in statistical procedures and works on
questionnaire design, sampling, and statistical analyses.
• Analyst: Closely supervised by the senior analyst and
often does much of the work associated with designing and
supervising the research studies.
• Junior Analyst: Works closely with analysts, doing
routine tasks such as editing and coding questionnaires,
running simple statistical calculations, and performing
basic library research.
• Field Work Director: Responsible for training,
supervising, and hiring interviewers “in the field.”
What Job Opportunities Exist in
Marketing Research? – cont’d
• Librarian: Responsible for building and maintaining a
reference library for use by research department staff.
• Clerical Supervisor: Oversees the handling and
processing of statistical information and prepares work
schedules.
• Full-Time Interviewers: Although very few companies
employ them, full-time interviewers tend to spend the bulk
of their time conducting personal interviews.
• Tabulators and Clerical Help: Keep the office running by
handling the daily routine work of the department, such as
tabulating, filing, and keying.
Figure 1.4 The Marketing Research Process
Step 1: Defining the Problem
Step 2: Developing an Approach to the Problem
Step 3: Formulating a Research Design
Step 4: Doing Field Work or Collecting Data
Step 5: Preparing and Analyzing Data
Step 6: Preparing and Presenting the Report
Figure 1.5 The Role of Marketing Research in Marketing Decision Making
Uncontrollable
Environmental
Factors
• Economy
• Technology
• Competition
• Laws and
Regulation
• Social and Cultural
Factors
• Political Factors
Assessing
Information
Needs
Customer Groups
• Consumers
• Employees
• Channel Members
• Suppliers
•
•
•
•
Controllable
Marketing
Variables
Product
Pricing
Promotion
Distribution
Marketing
Research
Marketing
Decision
Making
Marketing Managers
•Market Segmentation
•Marketing Programs
•Target Market Selection •Performance and Control
Providing
Information
Figure 1.6 Marketing Research Industry: Supplier and Services
Research
Suppliers
External
Internal
Full Service
Limited Service
Syndicated
Services
Customized
Services
Internet
Services
Field Services
Other Services
Figure 1.7 A Sample of Marketing Research Jobs
Figure 1.8 The Development of MIS and DSS
Internal
Billing,
Production,
and Other
Records
+
External
Market
Information
=
Marketing
Information
Systems
Decision
Support
Systems
Expert Systems
Figure 1.9 Marketing Information Systems (MIS)
vs.
Decision Support Systems (DSS)
MIS
DSS
• Structured problems
• Unstructured problems
• Use of reports
• Use of models
• Information
displaying restricted
• Adaptability
• Can improve decision
making by clarifying
new data
• Can improve decision
making by using “what
if” analysis
Figure 1.10 Stakeholders in Marketing Research:
An Ethical Perspective
Client
Marketing
Researcher
Public
Respondents
TABLE 1.1
Problem Solving Research
Segmentation Research
-
determine basis of segmentation
establish market potential and
responsiveness for various segments
select target markets and create lifestyle
profiles demography, media, and product
image characteristics
Product Research
-
test concept
determine optimal product design
package tests
product modification
brand positioning and repositioning
test marketing
control store tests
TABLE 1.1 (Cont.)
Problem Solving Research
Pricing Research
-
importance of price in brand selection
pricing policies
product line pricing
price elasticity of demand
initiating and responding to price changes
Promotional Research
-
-
optimal promotional budget
sales promotion relationship
optimal promotional mix
copy decisions
media decisions
creative advertising testing
claim substantiation
evaluation of advertising effectiveness
TABLE 1.1 (Cont.)
Problem Solving Research
Distribution Research
-
-
determine type of distribution
attitudes of channel members
intensity of wholesale and retail coverage
channel margins
location of retail and wholesale outlets
TABLE 1.2
Top 25 Global Research Organizations
2000
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
1999
1
2
3
4
5
—
6
8
10
11
9
14
12
15
13
16
18
17
19
20
—
21
25
—
—
Organization
AC Nielsen Corp.
IMS Health Inc.
The Kantar Group
Taylor Nelson Sofres plc
Information Resources Inc.
VNU Inc.
NFO WorldGroup Inc.
GfK Group
Ipsos Group SA
Westat Inc.
NOP World
Aegis Research
Arbitron Inc.
Video Research Ltd.
Maritz Research
The NPD Group Inc.
Opinion Research Corp.
INTAGE Inc.
J.D. Power and Associates
Roper Starch Worldwide Inc.
Jupiter Media Metrix Inc.
Dentsu Research Inc.
IBOPE Group
Harris Interactive Inc.
MORPACE International Inc.
Headquarters
Stamford, Conn.
Westport, Conn.
Fairfield, Conn.
London
Chicago
New York
Greenwich, Conn.
Nuremberg
Paris
Rockville, Md.
London
London
New York
Tokyo
St. Louis
Port Washington, N.Y.
Princeton, N.J.
Tokyo
Agoura Hills, Calif.
Harrison, N.Y.
New York
Tokyo
Rio de Janeiro
Rochester, N.Y.
Farmington Hills, Mich.
Parent
company
U.S.
U.S.
U.K.
U.K.
U.S.
U.S.
U.S.
Germany
France
U.S.
U.K.
U.K.
U.S.
Japan
U.S.
U.S.
U.S.
Japan
U.S.
U.S.
U.S.
Japan
Brazil
U.S.
U.S.
Total
1
Total revenues that include nonresearch activities for some companies are significantly higher.
* For fiscal year ending March 31, 2001.
Global research
Revenues1
(US$ millions)
$1,577.0
1,131.2
928.5
709.6
531.9
526.9
470.5
444.0
304.2
264.4
246.1
232.2
206.8
174.3*
172.0
164.3
123.9
119.3*
104.0
73.9
69.1
67.6
60.7
56.0
54.3
Percent of
global
revenues from
outside home
country
67.0%
62.5
71.4
75.2
25.0
2.6
62.4
62.4
78.3
0.0
60.0
32.2
3.4
0.0
31.5
17.0
28.9
1.8*
15.4
14.3
15.0
0.3
31.8
5.4
26.1
$8,812.7
49.3%