Chapter 1

Introduction and Early

Phases
of Market
Research

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Chapter Outline
1) Overview
2) Definition of Marketing Research
3) A Classification of Marketing Research
4) Marketing Research Process
5) The Role of Marketing Research in Marketing
Decision Making
6) Marketing Research and Competitive
Intelligence
7) The Decision to Conduct Research
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Chapter Outline
8)

Marketing Research Suppliers and Services

9)

Selecting a Research Supplier

10) Careers in Marketing Research

11) The Role of Marketing Research in MIS and DSS
12) The Department Store Project
13) International Marketing Research
14) Ethics in Marketing Research
15) Summary
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Redefining Marketing
Research
The American Marketing Association (AMA)
redefined Marketing Research as:

The function that links the consumer, the

customer, and public to the marketer
through INFORMATION

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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
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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.

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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

Helps managers use this information to make

decisions

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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.
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A Classification of Marketing
Research
Fig. 1.1
Marketing Research

Problem
Identification Research
Market Potential Research
Market Share Research
Market Characteristics
Research
Sales Analysis Research
Forecasting Research
Business Trends Research
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Problem-Solving
Research

Segmentation
Research
Product Research
Pricing Research
Promotion Research
Distribution Research

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Problem-Solving Research
Table 1.1
SEGMENTATION RESEARCH
Determine the basis of
segmentation
Establish market potential and
PRODUCT RESEARCH
Test concept
responsiveness for various
segments
Select target markets

Determine optimal product

design

Package tests
Create lifestyle profiles:
demography, media, and
Product modification
product image characteristics
Brand positioning and
repositioning
Test marketing
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Problem-Solving Research
Table 1.1 cont.

0.00% APR

PROMOTIONAL RESEARCH
Optimal promotional budget
Sales promotion relationship
Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing

PRICING RESEARCH
Pricing policies

Evaluation of advertising
effectiveness

Claim substantiation
Importance of price in brand selection
Product line pricing
Price elasticity of demand

$ALE

Initiating and responding to price changes

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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

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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

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Marketing Research
Process
Step 1: Defining the
Problem
Step 2: Developing an Approach to the Problem
Step 3: Formulating a Research Design
Step 4: Doing Field Work or Collecting Data
Step 5: Preparing and Analyzing Data
Step 6: Preparing and Presenting the Report

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The Role of Marketing

Fig. 1.2
Research
Customer Groups
Consumers
Employees
Shareholders
Suppliers

Controllable
Marketing
Variables
Product
Pricing

Marketing
Research

Promotion
Distribution

Marketing
Assessing
Providing
Information Information Decision
Making
Needs

Uncontrollable
Environmenta
lFactors
Economy
Technology
Laws &
Regulations
Social &
Cultural
Factors
Political Factors

Marketing Managers
Market Segmentation
Target Market Selection
Marketing Programs
Performance & Control
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Power Decisions
Methodology
Fig. 1.3

Opportunity scan

Solve Problem

Client
Needs

Option generation
Refine options
Decision

Fin
d

Seek

Pla
n

Act

Achieve Goal

How We
Help

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Advise
Market
Research Evaluate
Clarify
Assist
Plan
Decisions Analysis Interpret Recommend
Research Execution
Facilitate

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Organizational Chart for VNU

Fig. 1.4

Executive Board
Corporate Staff

Marketing Media Measurement

& Information
Information

Business
Information

Directories

ACNielsen
Nielsen Media Research
VNU Business
Golden Pages
VNU Advisory Nielsen/Net Ratings Publications
Gouden Gids
Services
Nielsen Film
VNU emedia &
Paginas Amarelas
BASES
Entertainment
Information Marketing Paglni Auril
Claritas
Nielsen Home
VNU Expositions
Promedia
Spectra
Entertainment
VNU Exhibitions Europe
Telkom Directory
Market DecisionsNielsen Music
Verizon Puerto Ric
Nielsen Book
Nielsen Entertainment Intel
IMS
PERO/HIC
Scarborough
SRDS

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Marketing Research Suppliers &

Fig. 1.5
Services
INTERNAL

RESEARCH
SUPPLIERS

FULL SERVICE
Syndicat
e
Services
Standardize
d
Services

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Internet
Service
s
Customiz
ed
Services

EXTERNAL

LIMITED SERVICE
Field
Service
s
Coding and
Data Entry
Analytica
Services
l
Services

Branded
Products
and
Services
Data
Analysis
Services
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Top
50 U.S. Marketing Research
Table 1.2
Firms

U.S. Rank Organization

revenue
2004 2003
1
1
VNU Inc.

Headquarters

Website

($, in millions) ($, in millions)

New York

www.vnu.com

$1,794.4

$3,429.2

47.7%

IMS Health Inc.

Fairfield, Conn.

www.imshealth.com

571.0

$1,569.0

63.6

3
4

4
5

Westat Inc.
TNS U.S.

Rockville, Md.
New York

www.westat.com
www.tns-global.com

397.8
396.0

397.8
1,732.7

77.2

Information Resources Inc.

Chicago

www.infores.com

379.6

572.8

33.6

The Kantar Group

Fairfield, Conn.

www.kantargroup.com

365.7*

1,136.3*

67.8*

Arbitron Inc.

New York

www.arbitron.com

284.7

296.6

4.0

NOP World US

New York

www.nopworld.com

213

408.5

47.9

Ipsos

New York

www.Ipsos-na.com

193.9

752.8

74.2

10

10

Synovate

Chicago

www.synovate.com

193.5

499.3

61.3

11

Harris Interactive Inc.

Rochester, N.Y.

www.harrisinteractive.com

154.8

208.9

25.9

13

Harris Interactive Inc.

Rochester, N.Y.

www.harrisinteractive.com

116.7

155.4

24.9

20

Wirthin Worldwide

McLean, Va.

www.harrisinteractive.com

38.1

53.5

28.8

12

11

Maritz Research

Fenton, Mo.

www.maritzresearch.com

136.6

185.8

26.2

13

12

J.D. Power and Associates

Westlake Village, Calif.

www.jdpower.com

133.5

167.6

20.4

14

14

The NPD Group Inc.

Port Washington, N.Y.

www.npd.com

110.5

139.2

20.6

15

16

GfK Group USA

Nuremberg, Germany

www.gfk.com

93.0

834.6

88.9

16

15

Opinion Research Corp.

Princeton, N.J.

www.opinionresearch.com

91.5

147.5

38.3

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Top
50 U.S. Marketing Research Firms
Table 1.2

U.S. Rank
Organization
(Cont)
millions)
2004 2003 revenue
17

Headquarters

Website

($, in millions)

$, in

17

Lieberman Research Worldwide

Los Angeles

www.lrwonline.com

67.2

77.7

13.5

18

18

Abt Associates Inc.

Cambridge, Mass.

www.abtassociates.com

41.5

41.5

19

21

Market Strategies Inc.

Livonia, Mich.

www.marketstrategies.com

37.9

39.5

4.1

20

22

Burke Inc.

Cincinnati

www.burke.com

37.1

43.4

14.5

21

30

comScore Networks Inc.

Reston, Va.

www.comscore.com

34.9

34.9

22

24

MORPACE International Inc.

Farmington Hills, Mich. www.morpace.com

31.1

34.5

9.9

23

25

Knowledge Networks Inc.

Menlo Park, Calif.

www.knowledgenetworks.com

29.8

29.8

23

34

OTX Research

Los Angeles

www.otxresearch.com

29.8

29.8

25

23

ICR/Int'l Communications Research Media, Pa.

www.icrsurvey.com

29.0

29.4

1.4

26

36

Directions Research Inc.

Cincinnati

www.directionsrsch.com

27.3

27.3

27

28

National Research Corp.

Lincoln, Neb.

www.nationalresearch.com

26.7

29.7

10.1

28

32

Marketing Research Services Inc.

Cincinnati

www.mrsi.com

25.4

25.4

29

29

Lieberman Research Group

Great Neck, N.Y.

www.liebermanresearch.com

25.1

25.5

1.6

30

33

Peryam & Knoll Research Corp.

Chicago

www.pk-research.com

22.5

22.7

0.1

31

National Analysts Inc.

Philadelphia

www.nationalanalysts.com

22.3

22.3

32

Public Opinion Strategies LLC

Alexandria, VA

www.pos.org

21.2

21.2

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Top
50 U.S. Marketing Research Firms
Table 1.2

U.S. Rank
Organization
(Cont)
2004
2003 revenue
millions)
33
27
Walker Information Inc.

Indianapolis

www.walkerinfo.com

20.4

23.8

14.3

34

39

The PreTesting Co. Inc.

Tenafly, N.J.

www.pretesting.com

19.8

20.4

2.9

35

19

C&R Research Services Inc.

Chicago

www.crresearch.com

19.7

19.7

36

35

Flake-Wilkerson Market Insights

Little Rock, Ark.

www.mktinsights.com

18.8

18.8

37

37

Data Development Worldwide

New York

www.datadw.com

18.3

20.7

11.6

38

41

Schulman, Ronca & Bucuvalas Inc.

New York

www.srbi.com

17.2

17.2

39

45

Cheskin

Redwood Shores, Calif.

www.cheskin.com

16.5

19.0

13.2

40

38

RDA Group Inc.

Bloomfield Hills, Mich.

www.rdagroup.com

15.4

17.0

9.4

41

47

Marketing Analysts Inc.

Charleston, S.C.

www.marketinganalysts.com

15.2

15.6

2.6

42

46

Market Probe Inc.

Milwaukee

www.marketprobe.com

14.1

24.6

42.7

43

44

Savitz Research Cos.

Dallas

www.savitzresearch.com

14.0

14.0

44

42

The Marketing Workshop Inc.

Norcross, Ga.

www.mwshop.com

13.9

13.9

45

48

Ronin Corp.

Princeton, N.J.

www.ronin.com

13.5

13.9

2.9

46

49

MarketVision Research Inc.

Cincinnati

www.marketvisionresearch.com 11.8

11.8

47

RTI-DFD Inc.

Stanfordd, Conn.

www.rti-dfd.com

11.5

11.5

48

Q Research Solutions Inc.

Old Bridge, N.J.

www.qresearchsolutions.com

11.2

11.2

49

50

Data Recognition Corp.

Maple Grove, Minn.

www.datarecognitioncorp.com

10.8

10.8

50

Phoenix Marketing International

Rhinebeck, N.Y.

www.phoenixmi.com

10.6

10.6

$6,291.0

$13,307.7

52.7%

656.6

$737.7

11.0%

$6,947.6

$14,045.4

50.5%

Headquarters

Website

($, in millions)

Total
All other (138 CASRO companies not included in the Top 50)3
Total (188 companies)

$, in

*Estimated by Top 50 1U.S. and worldwide revenue may include nonresearch activities for some companies that are significantly higher. See
individual company profiles for details. 2Rate of growth from year to year has been adjusted so as not to includer

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Selected Marketing
Research
Fig. 1.6
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.
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Selected Marketing Research

Career
Descriptions
Fig. 1.6 cont.
Vice President of Marketing
Research

Research Director
Also part of senior
management

Part of companys top

management team

Heads the
development and
execution of all
research projects

Directs companys entire

market research operation
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
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Selected Marketing Research

Career
Fig. 1.6 cont. Descriptions
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

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
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Statistician/Data
Processing

Serves as expert on theory and

application on statistical
techniques
Oversees experimental design,
data processing, and analysis

Fieldwork Director

Handles selection, training,

supervision, and evaluation of
interviewers and field workers
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Marketing Research Suppliers &

Services
Internal suppliers
External suppliers

2007 Prentice Hall

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
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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 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)

Careers in business and non-business firms and

agencies with in-house marketing research
departments (e.g., Procter & Gamble, Coca-Cola,
the Federal Trade Commission, United States
Census Bureau)

Advertising agencies (e.g., BBDO International,

Ogilvy & Mather, J. Walter Thompson)

Positions: VP of marketing research, research

director/assistant director, project manager, field
work director, statistician/data processing
specialist, senior/junior analyst, and supervisor.

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A Sample of Marketing Research

Jobs

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Preparation for a Career in Marketing

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.

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Management Information
Systems Vs. Decision Support
Fig. 1.7
Systems
DSS

MIS

Structured Problems
Use of Reports
Rigid Structure
Information Displaying
Restricted
Can Improve Decision
Making
by Clarifying Data
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Unstructured Problems
Use of Models
User Friendly Interaction
Adaptability
Can Improve Decision
Making by Using What
if
Analysis
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The Department Store

Project
The following information was solicited:
1. Familiarity with the ten department stores.

2. Frequency with which household members shopped at

each of the ten stores.
3. Relative importance attached to each of the eight
factors of the choice criteria.
4. Evaluation of the ten stores on each of the eight factors
of the choice criteria.
5. Preference ratings for each store.
6. Rankings of the ten stores (from most preferred to least
preferred).
7. Degree of agreement with 21 lifestyle statements.
8. Standard demographic characteristics (age, education,
etc.)
9. Name, address, and telephone number.
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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.mranet.org)
QRCA

: Qualitative Research Consultants Association

(www.qrca.org)

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Marketing Research Associations

Online
International
ESOMAR:
Marketing

European Society for Opinion and

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)
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