Transcript The Marketing Research Industry

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The Marketing Research Industry:
Evolution of the Industry
• Charles Coolidge Parlin is known as the
“father of marketing research.”
• Parlin conducted the first continuous
marketing research in the early 1900s
for the Curtis Publishing Company.
• The purpose of Parlin’s research was to
increase advertising for The Saturday
Evening Post magazine.
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Growth of the Need for Marketing
Research
• The Industrial Revolution led to
manufacturers producing goods for
distant markets.
• Manufacturers needed to know about
faraway consumers.
• This led to the growing need for
marketing research.
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The Marketing Research Industry Today
• World Revenues
– The marketing research industry
today accounts for about $21.5
billion spent annually.
– The top 25 firms can be found in the
report Honomichl Global Top 25 (See
page 44.)
– The top 50 U.S. firms can be found in
the Honomichl Top 50. (See page 46.)
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Classifying Firms in the Marketing
Research Industry
• Research Suppliers
– Internal Suppliers
– External Suppliers
• Limited Service Suppliers
• Full Service Suppliers
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The Marketing Research Industry
Outside
May
Can or
perform
may
firmnot
all
be
hired
marketing
only
a formal
limited
to
department
perform
researchsome
marketing
sort
functions
research
of
for
Syndicated
data
marketing
the client for
functions
service
firms
Standardized
research
the client
collect
service
firms
information
that is
provide
syndicated
Customized
made available to
marketing
service firms offer
multiple
research
services,
a variety
of
subscribers.
as research
opposed
Online
to
research
services
syndicated
data,
firms
to to
thatservices
are tailored
clients.
specialize
in
meet
the client’s
providing
specific
needs.services
online.
Classification of Marketing Research
Suppliers
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Industry Structure:
Internal Suppliers
• Internal suppliers: an entity within the
firm supplies marketing research
• Methods of Organization
– Own formal departments: organized
around:
• Marketing function: ad research,
product research, pricing research,
channel…
• Research process: data analysis, data
collection…
• Area of application: brands,
customers...
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Industry Structure:
Internal Suppliers
• Methods of Organization
– Single individual or committee
– No responsibility assigned
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Industry Structure:
External Suppliers
• External suppliers: outside firms hired to
fulfill a firm’s marketing research needs
• Methods of Organization
– Function: data analysis & collection…
– Type of research application: ad
research…
– Geography: domestic, international…
– Types of customers, finance, health
– Combination of the above
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Industry Structure:
External Suppliers
• Classification
– Full service
– Limited service
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Where to Find External
Research Suppliers
• www.greenbook.org
• www.quirks.com
• www.bluebook.org
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Challenges to the
Marketing Research Industry
• Marketing researchers should focus on
diagnosing problems in the
market…need for portability led to
Walkman, Watchman.
• Marketing researchers should speed up
marketing research by using IT.
• Marketing researchers should take an
integrative approach…avoid being
“silos” of isolated information.
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Challenges to the
Marketing Research Industry
• Marketing researchers should expand
their strategic impact...get away from
standard reports & get involved in
strategic issues.
• Other criticisms – lack of creativity, too
survey oriented, lack of understanding
of real problems, lack of concern for
respondents.
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Suggested Improvement:
Certification
• For several years, certification has
been debated.
• The MRA started a certification
program in February 2005.
• Professional Researcher Certification –
go to www.mra-net.org, and see menu
item “Certification.”
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Other Suggestions for
Industry Improvements
• Education…MR industry has made much
progress here. Examples include
Southern Illinois University –
Edwardsville’s Master of Marketing
Research, AMA’s Notre Dame School of
Marketing Research, Burke Institute,
Advertising Research Foundation
seminars, etc.
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Some Ethical Marketing Research
Situations: Class Exercises
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Is this Ethical?
1. A research company decides to leave
a message on prospective
respondents’ answering machines
telling them that if they call back in
the next 24 hours, they will receive a
valuable prize if they take part in a
survey.
Ethical as long as true
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Is this Ethical?
2. Upon completion of an interview, the
respondent is asked to provide the
names and telephone numbers of
others he or she thinks should take
part in the survey.
Ethical - snowball sampling,
referral sampling
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Is this Ethical?
3. A door-to-door salesman finds that by
telling people that he is conducting a
survey, they are more likely to listen
to his sales pitch.
Unethical – sugging
What is frugging?
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Is this Ethical?
4. The cover letter of a mail
questionnaire says that it will "only
take a few minutes to fill out." But
pretests have shown that at least
fifteen minutes are needed to fill it
out.
Unethical as “few” is vague
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Is this Ethical?
5. Telephone interviewers are instructed
to assure the respondent of
confidentiality only if the respondent
asks about it.
Ethical as long as confidentiality is
true
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Is this Ethical?
6. A client insists on inspecting the
completed questionnaires to assess
their validity, but the researcher
suspects that the client is really
interested in finding out what
specific respondents said about the
client.
Unethical if the survey is
confidential or anonymous
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Is this Ethical?
7. In the appendix of the final report,
the researcher lists the names of all
respondents who took part in the
survey, and places an asterisk beside
the names of those who indicated
agreement to be contacted by the
client's sales personnel.
Ethical…They agreed to this.
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Ethical Issues with Online Surveys
• Spam surveys… Illegal!
• Opt-In vs. Opt-Out
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Why are Ethical Issues
Problematic?
• Two competing ethical philosophies:
– Deontology holds that if an (any)
individual's rights are violated, then
the behavior is not ethical.
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Why are Ethical Issues
Problematic?
• Two competing ethical philosophies:
– Teleology says to judge a given
behavior in terms of its benefits and
costs to society: if there are
individual costs but group benefits,
then there are net gains (versus net
losses) and the behavior is judged to
be ethical.
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Why are Ethical Issues Problematic?
Marketing Research
Situation or Practice
Deontologist
says…
Teleologist
says…
Mystery shopper
Frugging
Disguised survey
Unethical
No problem
Wrong!
Okay if it
helps folks
Unethical
Okay if it gets
to the truth
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Marketing Research Code of Ethics
•
•
•
•
CASRO:
MRA:
ESOMAR:
PMRS:
www.casro.org
www.mra-net.org
www.esomar.org
www.pmrs-aprm.com
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Ethical Issues – Research Integrity
• Sugging – selling under the guise of
conducting research
• Frugging – fund-raising under the guise
of conducting research
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Ethical Issues – Research Integrity
• Misrepresentation and omission of
pertinent research data
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Ethical Issues – Research Integrity
• Treating clients, suppliers, and the
public unfairly
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Ethical Issues with Respondents
• Respondent cooperation has been going
down
• Marketing researchers should:
– Eliminate or keep deception to a
minimum
– If promised, guarantee anonymity or
confidentiality
– Fight invasions of privacy such as
telemarketing and SPAM
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Panels
• Marketing research companies are
making greater use of panels
• Recruiting respondents who agree to
participate in future studies
• Panel Equity, the value of having
access to a large number of consumers
willing to cooperate in studies, will
increase in the future
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Some Internet Sites About
Careers in Marketing Research
• Quirk’s
• www.burke.com
• Occupational Outlook Handbook
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