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

Chapter Outline (cont.)

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

Used to identify and define market opportunities and problems Generate, refine, and evaluate marketing performance Monitor marketing performance

Marketing research is the function which links the consumer, customer, and public to the marketer through

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 Product Pricing Promotion Distribution Assessing Information Needs

Marketing Research

Providing Information

Marketing Decision Making

Economy Technology Laws & Regulation Social & Cultural Factors Political Factors

Marketing Managers Market Segmentation Target Market Selection Marketing Programs Performance & Control

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

Problem Solving Research

Market potential research Market share research Market characteristics research Sales analysis research Forecasting research Business trends 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

Product line pricing

Price elasticity of demand Initiating and responding to price changes

$ALE
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

MIS DSS
problems

Structured Problems Use of Reports Rigid Structure Information Displaying Restricted

Unstructured Problems Use of Models User Friendly Interaction Adaptability

Can Improve Decision Making

by Clarifying Data

Can Improve Decision Making

by Using What if Analysis

Figure 1.4

INTERNAL

RESARCH SUPPLIERS

EXTERNAL

FULL SERVICE
Syndicate Services Standardized Services Internet Services Customize d Services

LIMITED SERVICE
Field Services Coding and Data Entry Services Branded Products and Services Data Analysis Services

Analytical 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

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

Rank 1997 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

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.

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)**** 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. 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

Research Director
Also part of senior management

Part of companys top management

team Directs companys entire market research operation Sets the goals & objectives of the marketing research department

Heads the development

and execution of all research projects

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.

Statistician/Data Processing
Serves as expert on theory and application on statistical techniques Oversees experimental design, data processing, and analysis

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

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). CMSs 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 better define 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)