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 .

refine. and evaluate marketing performance Monitor marketing performance Improve understanding of marketing as a process . customer.RIP 1.1 The American Marketing Association Redefines Marketing Research Marketing research is the function which links the consumer. and public to the marketer through Used to identify and define market opportunities and problems Generate.

Fig 1.1 The Role of Marketing Research Customer Groups • • • • Consumers Employees Shareholders Suppliers Uncontrollable Environmental Factors Controllable Marketing Variables Marketing Research •Product •Pricing •Economy •Technology •Laws & Regulation •Promotion •Distribution Assessing Information Needs Providing Information Marketing Decision Making Marketing Managers • Market Segmentation • Target Market Selection • Marketing Programs • Performance & Control •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 .

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 .Fig 1.

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 Problem Solving Research • Determine the basis of segmentation • Establish market potential and responsiveness for various segments • Select target markets • Create lifestyle profiles:demography.

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.Table 1.1 Contd.00% APR • • • • • • • • Optimal promotional budget Sales promotion relationship Optimal promotional mix Copy decisions Media decisions Creative advertising testing Claim substantiation Evaluation of advertising effectiveness .

Determine… •Types of distribution •Attitudes of Channel members •Intensity of wholesale & resale coverage •Channel margins •Location of retail and wholesale outlets .1 Contd.Table 1.

3 Management Information Systems Versus Decision Support Systems MIS DSS problems • Structured Problems • Unstructured Problems • Use of Reports • Use of Models • Rigid Structure • User Friendly Interaction • Information Displaying Restricted • Adaptability • Can Improve Decision Making • Can Improve Decision Making by Clarifying Data by Using “What if” Analysis .Fig 1.

4 RESARCH SUPPLIERS INTERNAL FULL SERVICE Syndicate Services Standardized Services Internet Services Customiz ed Services EXTERNAL LIMITED SERVICE Branded Products and Services Field Services Coding and Data Entry Services Analytical Services Data Analysis Services .Figure 1.

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 .

146.1 20. 100.339.0*** 21.6 77. 110. 68.S.3 20. outs ide U.7% 1081.2 11 Market facts Inc.4 35.0 15 8. 182. 127.7 11.5 . 91.6 46.391.RIP 1.0 20 29.3 1. 456.6 16 SOFRES Inters earch 53.0 0 0 8 NFO Worldwide Inc.3 Rank 1997 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Top 50 Marketing Research Organizations Pe rce nt and Total re se arch re ve nue s from Re venue s from re ve nue s* outside U.5 30 14 BASES Worldwide 57.9 43.2 659.3 18.5 0. 190.S.6 2 Cognizant Corp.4 13 The M/A/R/C Group Inc.2 25. 1.3 19. $1.6 19.1 12 Audits & Surveys Worldwide Inc.8 4 the Arbitron Co.9 32.1 15 Opinion Res earch Corp. 57. Marketing Services Inc.1 7 7 5 Pharm.1 49. 53.7 17.6 6 Wes tat Inc.2 9 The Kantar Group Ltd.6 89.1 3 Information Res ources Inc.0 42. 1996 Organization (millions) (millions) (millions ) 1 AC Niels en Corp.7 10 The NP D Group Inc. 165.2 0 0 7 Maritz Marketing Res earch Inc.

1 31. Abt Associates Inc.3 3.1 0 2.4 .1 30.1 0 2. 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.6 5.3 37.5 35.4 25.1 10.9 28.6 26.1 36.2 22.8 0 5. Elrick & Lavidge IntelliQuest Inc.7 29 16 27. Harris Black International Ltd.6 10 16. Custom Research Inc.7 9 5.6 0 6.3 Contd.RIP 1.8 13. Roper Starch Worldwide Inc. Wirthlin Worldwide Total Research Corp.0 39.7 26.9 0.9 40.2 31. Macro International Inc.6 5.4 1. Walker Information Lieberman Research Worldwide Diagnostic Research International Inc.8 42.5 17.0 39.1 36. Elrick & Lavidge IntelliQuest Inc.5 7.8 38.8 25.2 17. 43. Abt Associates Inc.7 26. Market Strategies Inc. Roper Starch Worldwide Inc.9 0 21. Macro International Inc. Yankelovich Partners Inc.5 17.8 0 5.9 40.5 43.7 25.3 37.5 33. MORPACE International C&R Research Services Inc.7 29 16 22.7 10 16.8 38. IPSOS-ASI Inc.8 0 0 0 1.7 0 0. Wirthlin Worldwide Burke Inc.1 0 0 0 7.1 10.8 42.5 35.5 7.

2 0 16.9 0 14.2 0. 39 35 Chilton Research Services 40 40 Market Decisions 41 -. 48 44 Conway/Milliken & Associates 49 49 TVG Inc.2 0 13.RIP 1. 50 50 Savitz Research Center Inc. Top 50 535.Marketing and Planning Systems 44 46 MATRIXX Marketing Research 45 41 RDA Group Inc.0 30 13.153. 35 39 Harris Black International Ltd.6 22.9 0 0 0 0 0.0 0 $5.3 2. 36 32 Market Strategies Inc.5 0 18.4 0 1.20 .0 0 12.National Research Corp.2 1.2 8.3 0 22.2 6 14.3 13. 42 43 Response Analysis Corp.3 0 0 0 0 $2.30% Subtotal.7 All other (124 CASRO member companies not included in Top 50)**** 1.9 5.9 0.3 0 15.3 Contd.7 39. 37 37 ICR-Int'l Communications Research 38 36 Data Development Corp.8 4.3 0 12.1 14. 46 45 Guideline Research Corp. 43 -.479. 25.7 21. 47 48 Directions Research Inc.7 7.4 25.1 41.

. has replaced many in-house departments for endusers who have cut their in-house staff because of a downsizing trend. This has also changed the method and approach of the full-service companies to meet new customer needs.4 Full Services Versus Limited Service Marketing Research Firms Susan Adelman and Kevin Heaken of Survey Service. This is done in order to cut costs in market research. Burke Marketing Research. and Heaken Research. find that more often today clients will perform the problem definition and design the survey instrument in-house to subcontract the data collection. both field survey firms. Inc.RIP 1. a large fullservice company. 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.

a full-service firm was not necessary. Some companies believe that they can reduce costs by going straight to the field-service companies. 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. or is field research satisfactory. . according to Cathy Kneidl. a branch of Maritz. So now. the end-user simply provides the full-service company with a management decision problem. The issue is determining if the company requires a full-service company.5 Contd. 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. only a survey had to be administered to confirm trends or preferences. VP for Quality Control Services. For this research. which renders the market research questionable. However. which would undertake the entire research process. as in the case of Samsonite. Samsonite wanted to test the market for responses to various suitcase colors. this is a mistake because the steps leading up to the data collection are omitted.RIP 1.

The research director has the general responsibility for the development and execution of all the marketing research projects. (Senior) Project Manager: Has overall responsibility for design. Research Director: Also a senior position. The vice president (VP) is responsible for the entire marketing research operation of the company and serves on the top management team. data processing.Fig 1. Responsibilities include experimental design.5 Selected Marketing Research Career Descriptions Vice-President of Marketing Research: The senior position in marketing research. and management of research projects. Statistician/Data Processing Specialist: Serves as an expert on theory and application of statistical techniques. implementation. . Assistant Director of Research: Serves as an administrative assistant to the director and supervises some of the other marketing research staff members. This person sets the objectives and goals of the marketing research department. and analysis.

Selected Marketing Research Career Descriptions Vice President of Marketing Research • Part of company’s top management team • Directs company’s entire market research operation • Sets the goals & objectives of the marketing research department Research Director • Also part of senior management • 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. & research projects . implementation.

supervision. 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. junior analyst. & other personnel development of research design and data collection • Prepares final report Statistician/Data Processing • Serves as expert on theory and application on statistical techniques • Oversees experimental design. training.5 Contd. • Participates in the development of projects • Carries out execution of assigned projects • Coordinates the efforts of analyst. data processing.Senior Analyst Fig 1. and evaluation of interviewers and field workers .

5 A Sample of Marketing Research Jobs .RIP 1.

It is probably best known. Marriott Suites. In-Flight Services. HealthCare. Marketing research at Marriott is done at the corporate level through the Corporate Marketing Services (CMS). and Fairfield Inns). 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. Residence Inns. however. Courtyard Hotels. and Host International.6 Marketing Research at Marriott Corporation Marriott functions in three main areas: lodging (Marriott Hotels and Resorts. Education. and Hot Shops). for its lodging operations. Inc. contract services (Marriott Business Food and Services.) and restaurants (family restaurants. . Travel Plazas.RIP 1.

focus groups. They use quantitative and qualitative research approaches such as telephone and mail surveys. The next step is to formulate a research design and design the study. . 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. CMS must decide whether to conduct its own research or buy it from an outside organization.6 Contd. and customer intercept to gain more information on market segmentation and sizing. The process of research at Marriott is a simple stepwise progression. product testing. CMS conducts many different types of research. consumer satisfaction.RIP 1. price sensitivity of consumers. and the like.

If the latter option is chosen. the research is carried out by collecting and analyzing the data. CMS presents the study findings. Then. During this stage. Marketing Research . CMS must decide whether or not to use multiple firms. The final step in the research process is to keep a constant dialogue between the client and the CMS.RIP 1. CMS may help explain the implications of the research findings or may make suggestions for future actions.6 Contd. Once a decision is made.

mra-net.casro.aapor.org) ARF: The Advertising Research Foundation (www.amic.qrca.org) .org) RIC: Research Industry Coalition (www.7 Marketing Research Associations Online Domestic AAPOR: American Association for Public Opinion Research (www.ama.org) AMA: American Marketing Association (www.research industry.com/arf) CASRO: The Council of American Survey Research Organizations (www.org) QRCA: Qualitative Research Consultants Association (www.RIP 1.org) MRA: Marketing Research Association (www.

marketresearch.com.au) PMRS: The Professional Marketing Research Society (Canada) (www.mrsa.7 Contd.org.pmrs-aprm.RIP 1.esomar. International ESOMAR: European Society for Opinion and Marketing Research (www.uk) MRSA: The Market Research Society of Australia (www.nl) MRS: The Market Research Society (UK) (www.com) .