Chapter One

Introduction to Marketing Research

vddf 1
 1-2

Chapter Outline
1) Overview
2) Definition of Marketing Research
3) A Classification of Marketing Research
4) Marketing Research Process
5) The Nature of Marketing Research
6) Marketing Research Suppliers and
Services
7) Selecting a Research Supplier
8) Careers in Marketing Research
 1-3

Chapter Outline
9) The Role of Marketing Research in MIS and
DSS
10) The Department Store Project
11) Marketing Research Associations Online
12) Summary
 1-4

Redefining Marketing Research

The American Marketing Association

(AMA) redefined Marketing Research as:

The function which links the consumer, the

customer, and public to the marketer
through INFORMATION
 1-5

Redefining Marketing Research

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
 1-6

Definition of Marketing Research

Marketing research is the systematic and objective

 identification
 collection
 analysis
 dissemination
 and use of information

for the purpose of improving decision making related to

the

 identification and
 solution of problems and opportunities in
marketing.
 1-7

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
 1-8

Classification of Marketing Research

Problem Identification Research
 Research undertaken to help identify problems
which are not necessarily apparent on the
surface and yet exist or are likely to arise in the
future. Examples: market potential, market
share, image, market characteristics, sales
analysis, forecasting, and trends research.

Problem Solving Research

 Research undertaken to help solve specific
marketing problems. Examples: segmentation,
product, pricing, promotion, and distribution
research.
 1-9

A Classification of Marketing Research

Fig 1.1
Marketing Research

Problem Problem Solving

Identification Research Research

Market Potential Research

Segmentation Research
Market Share Research
Market Characteristics Research Product Research
Sales Analysis Research Promotion Research
Forecasting Research Distribution Research
Business Trends Research
 1-10

Problem Solving Research

Table 1.1
SEGMENTATION RESEARCH

 Determine the basis of segmentation

 Establish market potential and
PRODUCT RESEARCH
responsiveness for various
segments  Test concept
 Select target markets
 Determine optimal product design
 Create lifestyle profiles:
 Package tests
demography, media, and
product image characteristics  Product modification
 Brand positioning and
repositioning
 Test marketing
 Control score tests
 1-11

Problem Solving Research

Table 1.1 cont. PROMOTIONAL RESEARCH
 Optimal promotional budget
0.00% APR  Sales promotion relationship
 Optimal promotional mix
 Copy decisions
 Media decisions
 Creative advertising testing
 Evaluation of advertising effectiveness
PRICING RESEARCH  Claim substantiation
 Pricing policies
 Importance of price in brand selection
 Product line pricing
 Price elasticity of demand $ALE
 Initiating and responding to price changes
 1-12

Problem Solving Research

Table 1.1 cont.

DISTRIBUTION RESEARCH

Determine…
 Types of distribution
 Attitudes of channel members
 Intensity of wholesale & resale coverage
 Channel margins
 Location of retail and wholesale outlets
 1-13

Marketing Research Process

Step 1: Problem Definition

Step 2: Development of an Approach to

the Problem
Step 3: Research Design Formulation
Step 4: Fieldwork or Data Collection
Step 5: Data Preparation and Analysis
Step 6: Report Preparation and
Presentation
 1-14

The Role of Marketing Research

Fig 1.2 Customer Groups
• Consumers
• Employees
• Shareholders
• Suppliers Uncontrollable
Controllable Environmental
Marketing Factors
Variables
Marketing •Economy
•Product
Research •Technology
•Pricing
•Laws &
•Promotion Regulations
•Distribution •Social & Cultural
Assessing Marketing Factors
Providing
Information Information Decision •Political Factors
Needs Making

Marketing Managers
• Market Segmentation
• Target Market Selection
• Marketing Programs
• Performance & Control
 1-15

Marketing Research Suppliers & Services

Fig 1.3

RESEARCH
INTERNAL SUPPLIERS EXTERNAL

FULL SERVICE LIMITED SERVICE

Field
Syndicate Internet
Services
Services Services

Customiz Coding and

Standardized
ed Data Entry
Services
Services Services Analytical
Services
 1-16

Top 50 U.S. Marketing Research Firms

U.S. rank Organization Headquarters Web site Worldwide research Non-U.S. research Percent
2001 2000 revenues* revenues* non-U.S.
($, in millions) ($, in millions) revenues
1 2 VNU, Inc. New York vnu.com $2,400.00 $1,100.00 45.80%
2 3 IMS Health, Inc. Fairfield, Conn. imshealth.com 1,171.00 702 60
3 4 Information Resources, Inc. Chicago infores.com 555.9 135.6 24.4
4 6 The Kantar Group Fairfield, Conn. kantargroup.com 962.3 663.2 68.9
5 5 Westat, Inc. Rockville, Md. westat.com 285.8 ─ ─
6 7 Arbitron, Inc. New York arbitron.com 227.5 7.9 3.5
7 ─ NOP World US New York nopworld.com 224.1 17.5 7.8
8 8 NFO WorldGroup Greenwich, Conn. nfow.com 452.9 289.9 64
9 9 Market Facts, Inc. Arlington Heights, Ill. marketfacts.com 189.7 33.5 17.7
10 11 Taylor Nelson Sofres USA London tnsofres.com 166.9 16.4 9.8
11 11 Maritz Research Fenton, MO. maritzresearch.com 181.7 54.6 30
12 23 Ipsos New York ipsos.com 204.3 91.4 44.7
13 15 J.D. Power and Associates Westlake Village, Calif. jdpa.com 128 18.7 14.6
14 14 Opinion Research Corp. Princeton, N.J. opinionresearch.com 133.6 42.2 31.6
15 10 The NPD Group, Inc. Port Washington, N.Y. npd.com 101.7 13 12.8
16 17 Jupiter Media Metrix, Inc. New York jmm.com 85.8 17.2 20
17 18 Harris Interactive, Inc. Rochester, N.Y. harrisinteractive.com 75.4 10.5 13.9
18 20 Abt Associates, Inc. Cambridge, Mass. abtassociates.com 62.8 9.4 15
19 19 C&R Research Services, Inc. Chicago crresearch.com 43.6 ─ ─
20 22 Wirthlin Worldwide McLean, Va. wirthlin.com 46.8 7.2 15.4
21 24 Lieberman Research Worldwide Los Angeles lrwonline.com 43.1 4.3 10
22 25 Burke, Inc. Cincinnati burke.com 45.5 11.2 24.6
23 21 MORPACE International, Inc. Farmington Hills, Mich. morpace.com 48.3 15.9 32.9
24 26 Market Strategies, Inc. Livonia, Mich. marketstrategies.com 31.7 1.5 4.7
25 30 GfK Custom Research, Inc. Minneapolis customresearch.com 29.8 0.9 3.9
 1-17

Top 50 U.S. Marketing Research Firms

U.S. rank Organization Headquarters Web site Worldwide research Non-U.S. research Percent
2001 2000 revenues* revenues* non-U.S.
($, in millions) ($, in millions) revenues
26 32 ICR/Int’l Communications Research Media, Pa. icsurvey.com 28.8 0.3 1
27 29 M/A/R/C Research Irving, Texas marcresearch.com 24.5 0.5 2
28 31 Elrick & Lavidge Marketing Research Tucker, Ga. elrickandlavidge.com 22.9 ─ ─
29 36 RDA Group, Inc. Bloomfield Hills, Mich. rdagroup.com 26 3.6 13.8
30 33 Lieberman Research Group Great Neck, N.Y. liebermanresearch.com 22.3 0.5 2.2
31 ─ Knowledge Networks, Inc. Menlo Park, Calif. knowledgenetworks.com 21.4 ─ ─
32 34 W alker Information Indianapolis walkerinfo.com 26.8 5.5 20.5
33 37 National Research Corp. Lincoln, Neb. nationalresearch.com 17.7 ─ ─
34 38 Directions Research, Inc. Cincinnati directionsrsch.com 16.7 ─ ─
35 48 Marketing and Planning Systems, Inc. Waltham, Mass. mapsnet.com 19.7 3.2 16.2

36 ─ Alliance Research, Inc. Crestview Hills, Ky. allianceresearch.com 15.4 ─ ─

37 40 Data Development Corp. New York datadc.com 15.6 0.3 1.9
38 46 Marketing Analysts, Inc. Charleston, S.C. marketinganalysts.com 15.1 0.4 2.6
39 ─ Marketing Research Services, Inc. Cincinnati mrsi.com 14.3 ─ ─
40 43 Greenfield Online, Inc. Wilton, Conn. greenfield.com 14.2 ─ ─
41 42 Greenfield Consulting Group, Inc. Westport, Conn. greenfieldgroup.com 14 0.1 1
42 45 Savitz Research Companies Dallas savitzresearch.com 13.2 ─ ─
43 44 The PreTesting Co., Inc. Tenafly, N.J. pretesting.com 13.1 0.7 5.3
44 39 Schulman, Ronca, & Bucuvalas, Inc. New York srbi.com 12.1 0.7 5.8
45 49 Cheskin Redwood Shores, Calif. cheskin.com 14.3 3.1 22
46 ─ The Marketing W orkshop, Inc. Norcross, Ga. mwshop.com 10.6 ─ ─
47 ─ Symmetrical Holdings, Inc. Deerfield Beach, Fla. symmetrical.com 10.4 ─ ─
48 ─ comScore Networks, Inc. Reston, Va. comscore.com 10 ─ ─
48 ─ MarketVision Research, Inc. Cincinnati marketvisionresearch.com 10 ─ ─

50 47 The B/R/S Group, Inc. San Rafael, Calif. brsgroup.com 10.9 2.2 20
Selected Marketing Research
1-18

Career Descriptions
Fig 1.4

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.
 1-19

Selected Marketing Research Career Descriptions

Fig 1.4 cont.
Research Director
Vice President of Marketing
Research • Also part of senior

• Part of company’s top management

management team • Heads the development

• Directs company’s entire market and execution of all

research operation research projects

• Sets the goals & objectives of the

marketing research department Assistant Director of Research
•Administrative assistant to director
•Supervises research staff members

Senior Project Manager

• Responsible for design, implementation, &
research projects
 1-20

Selected Marketing Research Career Descriptions

Fig 1.4 cont.

Senior Analyst
• Participates in the development of projects
• Carries out execution of assigned projects
• Coordinates the efforts of analyst, junior analyst, & other personnel in the
development of research design and data collection
• Prepares final report

Analyst Statistician/Data Processing

• Handles details in execution of • Serves as expert on theory and
project application on statistical techniques
• Designs & pretests questionnaires • Oversees experimental design, data
• Conducts preliminary analysis of processing, and analysis
data

Junior Analyst Fieldwork Director

• Secondary data analysis • Handles selection, training,
• Edits and codes questionnaires supervision, and evaluation of
• Conducts preliminary analysis of data interviewers and field workers
 1-21

Marketing Research Suppliers & Services

 Internal suppliers
 External suppliers
 Full-service suppliers
 Syndicated services
 Standardized services
 Customized services
 Internet services
 Limited-service suppliers
 Field services
 Coding and data entry services
 Analytical services
 Data analysis services
 Branded marketing research products
 1-22

Criteria for Selecting a Research Supplier

 What is the reputation of the supplier?
 Do they complete projects on schedule?
 Are they known for maintaining ethical standards?
 Are they flexible?
 Are their research projects of high quality?
 What kind and how much experience does the
supplier have? Has the firm had experience with
projects similar to this one?
 Do the supplier's personnel have both technical
and non-technical expertise?
 Can they communicate well with the client?

Competitive bids should be obtained and

compared on the basis of quality as well as price.
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Careers in Marketing Research

 Career opportunities are available with marketing
research firms (e.g., AC Nielsen, Burke, Inc., M/A/R/C)
 Careers in business and non-business firms and
agencies with in-house marketing research
departments (e.g., Procter & Gamble, Coca-Cola, AT
& T, the Federal Trade Commission, United States
Census Bureau)
 Advertising agencies (e.g., BBDO International, Ogilvy
& Mather, J. Walter Thompson, Young & Rubicam)
 Positions: vice president of marketing research,
research director, assistant director of research,
project manager, field work director, statistician/data
processing specialist, senior analyst, analyst, junior
analyst, and operational supervisor.
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A Sample of Marketing Research Jobs

 1-25

Preparation for a Career in Mktg. Research

 Take all the marketing courses you can.

 Take courses in statistics and quantitative methods.

 Acquire Internet and computer skills. Knowledge of

programming languages is an added asset.

 Take courses in psychology and consumer behavior.

 Acquire effective written and verbal communication

skills.

 Think creatively. Creativity and common sense

command a premium in marketing research.
 1-26
Management Information Systems vs.
Decision Support Systems

MIS DSS

 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
Making by Using “What if”
by Clarifying Data
Analysis
 1-27

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)
 1-28

Marketing Research Associations Online

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)