Transcript No Slide Title - UMM Directory

Chapter Outline
1) Overview
2) What does Marketing Research Encompass
3) The Nature of Marketing Research
4) Definition of Marketing Research
5) A Classification of Marketing Research
6) The role of Marketing Research in MIS and DSS
7) Marketing Research Suppliers and Services
8) Selecting a Research Supplier
9) Careers in Marketing Research
10) Marketing Research Process
11) The Department Store Patronage Project
12) International Marketing Research
13) Ethics in Marketing Research
14) Internet and Computer Applications
15) Focus on Burke
16) Summary
17) Key Terms and Concepts
18) Acronyms
RIP 1.1
The American Marketing Association
Redefines Marketing Research
Marketing research is the
function which links the
consumer, customer, and
public to the marketer
through
used to identify and
define market
opportunities and
problems
generate, refine, and
evaluate marketing
performance
monitor marketing
performance
improve understanding of
marketing as a process
Fig 1.1
The Role of Marketing Research
Customer Groups
•
•
•
•
Consumers
Employees
Shareholders
Suppliers
Uncontrollable
Environmental
Factors
Controllable
Marketing
Variables
Marketing
Research
•Product
•Pricing
•Promotion
•Distribution
Assessing
Information
Needs
Providing
Information
Marketing
Decision
Making
Marketing Managers
• Market Segmentation
• Target Market Selection
• Marketing Programs
• Performance & Control
•Economy
•Technology
•Laws & Regulation
•Social & Cultural
Factors
•Political Factors
Market Research
•specifies the information
necessary to address these
issues
•manages and implements the
data collection process
•analyzes the results
•communicates the findings
and their implications
Fig 1.2
A Classification of Marketing Research
Marketing Research
Problem
Identification Research
•Market potential research
•Market share research
•Market characteristics research
•Sales analysis research
•Forecasting research
•Business trends research
Problem Solving
Research
•Segmentation Research
•Product Research
•Promotion Research
•Distribution Research
Table 1.1
Problem Solving Research
• determine the basis of segmentation
• establish market potential and
responsiveness for various segments
• select target markets
• create lifestyle profiles:demography,
media, and product image
characteristics
•
•
•
•
•
•
•
test concept
determine optimal product design
package tests
product modification
brand positioning and repositioning
test marketing
control score tests
Table 1.1 Contd.
PRICING RESEARCH
•
•
•
•
•
importance of price in brand selection
pricing policies
$ALE
product line pricing
price elasticity of demand
initiating and responding to price changes
PROMOTIONAL RESEARCH
0.00% APR
•
•
•
•
•
•
•
•
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 Contd.
Determine
•types of distribution
•Attitudes of Channel members
•Intensity of wholesale & resale coverage
•Channel margins
•location of retail and wholesale outlets
Fig 1.3
Management Information Systems
Versus Decision Support Systems
DSS
MIS
problems
•Structured Problems
•Unstructured Problems
•Use of Reports
•Use of Models
•Rigid Structure
•User Friendly Interaction
•Information Displaying
•Adaptability
Restricted
•Can Improve Decision
•Can Improve Decision Making by
Making by Using “What if”
Clarifying Data
Analysis
RESARCH
SUPPLIERS
INTERNAL
FULL SERVICE
Syndicate
Services
Standardized
Texts
Internet
Services
Customize
d
Services
EXTERNAL
LIMITED SERVICE
Branded
Products
and Services
Field
Services
Coding and
Data Entry
Services
Analytical
Services
Data
Analysis
Services
RIP 1.2
Organization of Marketing
Research at Oscar Mayer
Brand Research
Conducts Primary & Secondary
Research
Serves As Marketing
Consultants
Analyzes Market Trends
Advances the State of the Art in
Marketing Research
Marketing Systems and
Analytics(MSA)
Performs Sales Analysis
Based on Shipment & Store
Scanner Data
Supports Computer End
Users within Marketing
Department
Serves as Source of
Marketing Information
RIP 1.3
Rank
1997
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Top 50 Marketing
Research Organizations
Percent and
Total research
revenues from
Revenues from
revenues*
outside U.S.
outs ide U.S.
1996 Organization
(millions)
(millions)
(millions )
1 AC Nielsen Corp.
$1,391.6
77.7%
1081.6
2 Cognizant Corp.
1,339.1
49.2
659.1
3 Information Resources Inc.
456.3
19.6
89.6
6 Westat Inc.
182.0
0
0
8 NFO Worldwide Inc.
190.0***
21.4
35.8
4 the Arbitron Co.
165.2
0
0
7 Maritz Marketing Research Inc.
146.0
20
29.2
9 The Kantar Group Ltd.
127.1
20.2
25.7
10 The NPD Group Inc.
110.3
18.3
20.2
11 Market facts Inc.
100.1
7
7
5 Pharm. Marketing Services Inc.
91.6
46.0
42.1
12 Audits & Surveys Worldwide Inc.
68.9
43.5
30
14 BASES Worldwide
57.6
19.7
11.4
13 The M/A/R/C Group Inc.
57.3
1.5
0.1
15 Opinion Research Corp.
53.9
32.7
17.6
16 SOFRES Intersearch
53.0
15
8.5
RIP 1.3 Contd.
19
20
21
22
23
24
25
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
22
19
23
17
21
38
26
22
19
23
17
21
38
26
28
25
27
24
29
34
33
30
31
39
32
Burke Inc.
Macro International Inc.
Roper Starch Worldwide Inc.
Abt Associates Inc.
Elrick & Lavidge
IntelliQuest Inc.
Wirthlin Worldwide
Burke Inc.
Macro International Inc.
Roper Starch Worldwide Inc.
Abt Associates Inc.
Elrick & Lavidge
IntelliQuest Inc.
Wirthlin Worldwide
Total Research Corp.
MORPACE International
C&R Research Services Inc.
Walker Information
Lieberman Research Worldwide
Diagnostic Research International Inc.
IPSOS-ASI Inc.
Yankelovich Partners Inc.
Custom Research Inc.
Harris Black International Ltd.
Market Strategies Inc.
43.8
42.9
40.0
39.3
37.1
36.5
35.5
43.8
42.9
40.0
39.3
37.1
36.5
35.5
33.1
31.2
31.1
30.9
28.6
26.7
26.7
26.4
25.8
25.7
25.2
22.8
38.5
17.8
0
5.7
29
16
22.8
38.5
17.8
0
5.7
29
16
27.2
17.9
0
21.8
13.3
3.1
0
0
0
7.4
1.6
10
16.5
7.1
0
2.1
10.6
5.7
10
16.5
7.1
0
2.1
10.6
5.7
9
5.6
0
6.7
0
0.8
0
0
0
1.9
0.4
RIP 1.3 Contd.
35 39 Harris Black International Ltd.
36 32 Market Strategies Inc.
37 37 ICR-Int'l Communications Research
38 36 Data Development Corp.
39 35 Chilton Research Services
40 40 Market Decisions
41 -- National Research Corp.
42 43 Response Analysis Corp.
43 -- Marketing and Planning Systems
44 46 MATRIXX Marketing Research
45 41 RDA Group Inc.
46 45 Guideline Research Corp.
47 48 Directions Research Inc.
48 44 Conway/Milliken & Associates
49 49 TVG Inc.
50 50 Savitz Research Center Inc.
25.7
7.4
25.2
1.6
22.3
0
22.2
8.7
21.5
0
18.2
0
16.3
0
15.9
0
14.2
6
14.1
41.1
14.0
30
13.3
2.3
13.2
0
13.0
0
12.3
0
12.0
0
Subtotal, Top 50
$5,479.7
39.30%
All other (124 CASRO member companies not included in Top
535.7
50)****
1.9
0.4
0
1.9
0
0
0
0
0.9
5.8
4.2
0.3
0
0
0
0
$2,153.20
RIP 1.4
Full Services Versus Limited Service
Marketing Research Firms
Susan Adelman and Kevin Heaken of Survey Service, Inc. and
Heaken Research, both field survey firms, find that more often
today clients will perform the problem definition and design the
survey instrument in-house to subcontract the data collection. This
is done in order to cut costs in market research. This has also
changed the method and approach of the full-service companies to
meet new customer needs. Burke Marketing Research, a large fullservice company, has replaced many in-house departments for endusers who have cut their in-house staff because of a downsizing
trend. An example would be Ocean Spray or Quaker Oats which
have cut marketing staff and subcontract all marketing research to
companies such as Burke and Maritz Marketing Research.
RIP 1.5 Contd.
So now, the end-user simply provides the full-service company with
a management decision problem, which is interpreted and
articulated into the marketing research problem by a full-service
company and the other steps are also performed by the market
research company. Some companies believe that they can reduce
costs by going straight to the field-service companies. However,
according to Cathy Kneidl, VP for Quality Control Services, a
branch of Maritz, this is a mistake because the steps leading up to
the data collection are omitted, which renders the market research
questionable. The approach and process of market research are
critical to obtain data that can be useful or can be interpreted to
improve or make sound management decisions. The issue is
determining if the company requires a full-service company, which
would undertake the entire research process, or is field research
satisfactory, as in the case of Samsonite. Samsonite wanted to test
the market for responses to various suitcase colors. For this
research, a full-service firm was not necessary, only a survey had to
be administered to confirm trends or preferences.
Fig 1.5
Selected Marketing Research
Career Descriptions
Vice-President of Marketing Research: The senior position in marketing
research. The vice president (VP) is responsible for the entire marketing
research operation of the company and serves on the top management team.
This person sets the objectives and goals of the marketing research
department.
Research Director: Also a senior position. The research director has the
general responsibility for the development and execution of all the marketing
research projects.
Assistant Director of Research: Serves as an administrative assistant to the
director and supervises some of the other marketing research staff members.
(Senior) Project Manager: Has overall responsibility for design,
implementation, and management of research projects.
Statistician/Data Processing Specialist: Serves as an expert on theory and
application of statistical techniques. Responsibilities include experimental
design, data processing, and analysis.
Selected Marketing Research
Career Descriptions
Vice President of Marketing
Research
•
Part of company’s top management
•
• Also part of senior
management
•Heads the
team
•
Research Director
Directs company’s entire market
development and
research operation
execution of all
Sets the goals & objectives of the
research projects
marketing research department
Assistant Director of Research
•administrative assistant to director
•supervises research staff members
Senior Project Manager
•Responsible for design, implementation, &
research projects
Senior
Analyst
Fig 1.5
Contd.
• Participates in the development of
projects
• Carries out execution of assigned
projects
• Coordinates the efforts of analyst,
junior analyst, & other personnel
development of research design
and data collection
• Prepares final report
Statistician/Data Processing
•serves as expert theory and
application of statistical techniques
•oversees experimental design, data
processing, and analysis
Analyst
• handles details in execution of
project
• designs & pretests questionnaires
• conducts
• preliminary analysis of data
Junior Analyst
• Secondary data analysis
• Edits and codes questionnaires
• Conducts preliminary analysis of data
Field Work Director
•Handles selection, training,
supervision, and evaluation of
interviewers and field workers
RIP 1.5
A Sample of
Marketing
Research Jobs
RIP 1.6
Marketing Research at
Marriott Corporation
Marriott functions in three main areas: lodging (Marriott
Hotels and Resorts, Marriott Suites, Residence Inns,
Courtyard Hotels, and Fairfield Inns), contract services
(Marriott Business Food and Services, Education, HealthCare, In-Flight Services, and Host International, Inc.) and
restaurants (family restaurants, Travel Plazas, and Hot
Shops). It is probably best known, however, for its lodging
operations.
Marketing research at Marriott is done at the
corporate level through the Corporate Marketing
Services (CMS). CMS’s goals include providing
the management of the different areas of Marriott
with the information they need to better
understand the market and the customer.
RIP 1.6 Contd.
CMS conducts many different types of research. They use
quantitative and qualitative research approaches such as
telephone and mail surveys, focus groups, and customer intercept
to gain more information on market segmentation and sizing,
product testing, price sensitivity of consumers, consumer
satisfaction, and the like.
The process of research at Marriott is a simple stepwise
progression. The first step is to betterdefine the problem to be
addressed and the objectives of the client unit and to develop an
approach to the problem. The next step is to formulate a research
design and design the study. CMS must decide whether to
conduct its own research or buy it from an outside organization.
RIP 1.6 Contd.
If the latter option is chosen, CMS must decide whether or not to
use multiple firms. Once a decision is made, the research is carried
out by collecting and analyzing the data. Then, CMS presents the
study findings. The final step in the research process is to keep a
constant dialogue between the client and the CMS. During this
stage, CMS may help explain the implications of the research
findings or may make suggestions for future actions.
Marketing Research
RIP 1.7
Marketing Research Associations
Online
Domestic
AAPOR: American Association for Public Opinion Research
(www.aapor.org)
AMA: American Marketing Association (www.ama.org)
ARF: The Advertising Research Foundation (www.amic.com/arf)
CASRO: The Council of American Survey Research Organizations
(www.casro.org)
MRA: Marketing Research Association (www.mra-net.org)
QRCA: Qualitative Research Consultants Association
(www.qrca.org)
RIC: Research Industry Coalition (www.research industry.org)
RIP 1.7 Contd.
International
ESOMAR: European Society for Opinion and Marketing Research
(www.esomar.nl)
MRS: The Market Research Society (UK)
(www.marketresearch.org.uk)
MRSA: The Market Research Society of Australia
(www.mrsa.com.au)
PMRS: The Professional Marketing Research Society (Canada)
(www.pmrs-aprm.com)