marketing research module 1 introduction

8/14/2019 Marketing Research Module 1 Introduction

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1-1 2007 Prentice Hall

Cha pter 1Introduction and Early Phases

of Market Research


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Ch apter O utl ine1) Overview

2) Definition of Marketing Research

3) A Classification of Marketing Research

4) Marketing Research Process

5) The Role of Marketing Research in MarketingDecision Making

6) Marketing Research and Competitive Intelligence

7) The Decision to Conduct Research


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Cha pter Ou tl ine8) 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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Used to identify anddefine market

opportunities and

problems

Generate, refine, andevaluate marketing

performance

Monitor marketing

performance

Improve understanding

of marketing as a

process

Redefi ning M arketi ng Rese ar ch


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De fi niti on o f Ma rke ti ngRese ar chMarketing 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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Ma rket Rese arc h 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 makedecisions



Cl assi fi catio n of Mar ket ingRese ar chProblem-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: marketpotential, 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.



Resea rc hMarketing Research

Problem

Identification Research

Problem-Solving

Research

Market Potential ResearchMarket Share Research

Market Characteristics ResearchSales Analysis ResearchForecasting ResearchBusiness Trends Research

Segmentation Research

Product ResearchPricing Research

Promotion Research

Distribution Research

Fig. 1.1



Pr obl em-S olving Res ea rch

Determine the basis of segmentation

Establish market potential and

responsiveness for varioussegments

Select target markets

Create lifestyle profiles:

demography, media, andproduct image characteristics

SEGMENTATI ON RES EARCH

Test concept

Determine optimal product design

Package tests

Product modification

Brand positioning and repositioning

Test marketing

Control score tests

PROD UCT RES EAR CH

Table 1.1



Pr obl em-S olving Res ea rchTable 1.1 cont.

PR ICI NG RES EAR CH Pricing policies

Importance of price in brand selection

Product line pricing

Price elasticity of demand

Initiating and responding to price changes

$ALE

PR OMOTIO NAL RE SE ARCH

Optimal promotional budget Sales promotion relationship

Optimal promotional mix

Copy decisions

Media decisions

Creative advertising testing

Evaluation of advertising effectiveness

Claim substantiation

0.00% APR



Pr obl em-S olving Res ea rchTable 1.1 cont.

DISTRIBUT ION RESE ARCHDetermine

Types of distribution

Attitudes of channel members

Intensity of wholesale & resale coverage

Channel margins

Location of retail and wholesale outlets



Ma rketing Res ea rc h Pr oce ssStep 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



Ma rketing Res ea rc h Pr ocessStep 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



Th e Rol e of Mark eti ng Rese ar ch

Co ntro ll ab leMar keting

Product

Pricing

Promotion

Distribution

Var iab les Marketing Research

MarketingDecisi onMakingProvi dingInf ormatio n

As ses si ngInf or mat ionNeeds

Mar keting Ma nagers Market Seg mentatio n

Perfo rmance & Contr olTarg et Mar ket Sel ectio n Marketi ng P ro gra ms

Un contro llab leEnvir on mentalFacto rs Economy

Technology Laws &

Regulations

Social & CulturalFactors

Political Factors

Fig. 1.2 Co nsumer s Emp lo yee s Shar eho ld ers Sup plier s

Cus tomer Gro up s



ClientNeeds Find Seek Pla n ActSolv e Problem

Ach iev e Goa l

How WeHelpClarifyDeci si ons

ResearchAnaly si s

Eval uat eInt erpretFaci l itate Re commendMark etPlanResearch

AdviseAssi stExecution

Oppo rtunity scanOption g ene ratio n

Refine optionsDecis io n

Fig. 1.3

Po wer De ci sio ns Me tho dol ogy
http://www.powerdecisions.com/newsletter.cfm?articleID=225http://www.powerdecisions.com/tools.cfmhttp://www.powerdecisions.com/approach.cfmhttp://www.powerdecisions.com/tools.cfmhttp://www.powerdecisions.com/engagementshelpimplement.cfmhttp://www.powerdecisions.com/newsletter.cfm?articleID=225



Orga nizat iona l Chart for VNUExe cuti ve Boar d

Corporate Staff

MarketingInformation

Media Measurement& Information

BusinessInformation

Directories

ACNielsenVNU AdvisoryServicesBASESClaritasSpectraMarket Decisions

Nielsen Media ResearchNielsen/Net RatingsNielsen FilmEntertainmentNielsen HomeEntertainmentNielsen MusicNielsen BookNielsen Entertainment IntelIMSPERO/HICScarboroughSRDS

VNU BusinessPublicationsVNU emedia &Information MarketingVNU ExpositionsVNU Exhibitions Europe

Golden PagesGouden GidsPaginas AmarelasPaglni AurilPromediaTelkom DirectoryVerizon Puerto Rico

Fig. 1.4



Services

LIMIT ED SERVI CEBrandedProducts

and Services

DataAnalysisServices

AnalyticalServices

Coding andData Entry

Services

FieldServices

FU LL SERV ICESyndicate

Services

StandardizedServices

CustomizedServices

Internet

Services

RESEAR CHSUPPLIERS EXT ERN ALINTERNAL

Fig. 1.5



U.S. Rank Organization Headquarters Website ($, in millions)($, in millions)revenue2004 2003

1 1 VNU Inc. New York www.vnu.com $1,794.4 $3,429.2 47.7%

2 2 IMS Health Inc. Fairfield, Conn. www.imshealth.com 571.0 $1,569.0 63.6

3 4 Westat Inc. Rockville, Md. www.westat.com 397.8 397.8

4 5 TNS U.S. New York www.tns-global.com 396.0 1,732.7 77.2

5 3 Information Resources Inc. Chicago www.infores.com 379.6 572.8 33.6

6 6 The Kantar Group Fairfield, Conn. www.kantargroup.com 365.7* 1,136.3* 67.8*

7 7 Arbitron Inc. New York www.arbitron.com 284.7 296.6 4.0

8 8 NOP World US New York www.nopworld.com 213 408.5 47.9

9 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

Table 1.2

Fir ms



17 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

U.S. RankOrganization Headquarters Website ($, in millions) $, inmillions) revenue2004 2003

. .(Co nt )Table 1.2



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

Total $6,291.0 $13,307.7 52.7% All other (138 CASRO companies not included in the Top 50)3 656.6 $737.7 11.0%

Total (188 companies) $6,947.6 $14,045.4 50.5%*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

U.S. RankOrganization Headquarters Website ($, in millions) $, inmillions) revenue2004 2003

. .(Co nt )Table 1.2



Se lected Mar ke ting Res earc hCar eer Desc ript io nsVice Pres id en t of Marketi ng Res ea rch : The senior position in

marketing research. The vice president (VP) is responsible for theentire marketing research operation of the company and serves onthe top management team. This person sets the objectives and goalsof the marketing research department.

Resea rch Di rector: Also a senior position. The research director hasthe general responsibility for the development and execution of allthe marketing research projects.

Ass is tant D ire ctor of Res earch : Serves as an administrativeassistant to the director and supervises some of the other marketing

research staff members.(Seni or) Projec t Ma nager: Has overall responsibility for design,implementation, and management of research projects.

Sta ti sti cian/Data Proces sing Speciali st: Serves as an expert ontheory and application of statistical techniques. Responsibilities

include experimental design, data processing, and analysis.

Fig. 1.6


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Se lect ed M ar ket ing Res earch Ca re erDescriptionsVice Pres ident of Mark eti ng

Res earch Part of companys top

management team Dire ct s com pa ny s entir e marke t

res earc h ope ra tion Set s th e goals & objec ti ve s of

the marketing researchdepa rt men t

Res ea rch Di rec to r Also part of seniorma nagem ent Hea ds th edev el opm en t and

ex ecu ti on of allres ea rch projec tsAs sis tan t D ir ector of Research Adm in is tra ti ve assis tant to

dire ct or Superv is es res earch staff

membersSe nio r Project Ma nager Res pon sibl e for des ign , imple men tation , &res earc h projec ts

Fig. 1.6 cont.


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An aly st Handles details in execution of

project Designs & pretests questionnaires Conducts preliminary analysis of data

Juni or An aly st Secondary data analysis Edits and codes questionnaires Conducts preliminary analysis of data

Fiel dwork Di rec torHandles selection, training,supervision, and evaluation ofinterviewers and field workers

Se nio r A naly st 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 finalreport

Fig. 1.6 cont.

Sta ti sti cian/Data Proces sing Serves as expert on theory and

application on statistical techniques Oversees experimental design, data

processing, and analysis

Se lected Ma rke ti ng Resea rc hCa ree r D esc ri pti ons


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Se rvic es 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


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Suppl ie r 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 thesupplier have? Has the firm had experience withprojects 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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Ca ree rs in Marke ti ng Resea rch Career opportunities are available with marketing

research firms (e.g., AC Nielsen, Burke)

Careers in business and non-business firms andagencies with in-house marketing researchdepartments (e.g., Procter & Gamble, Coca-Cola, the

Federal Trade Commission, United States CensusBureau)

Advertising agencies (e.g., BBDO International,Ogilvy & Mather, J. Walter Thompson)

Positions: VP of marketing research, researchdirector/assistant director, project manager, fieldwork director, statistician/data processing specialist,senior/junior analyst, and supervisor.


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Jobs


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Prepa ra tion for a C ar eer in M ar ke ting Re sear ch

Take all the marketing courses you can.

Take courses in statistics and quantitative methods.

Acquire Internet and computer skills. Knowledge ofprogramming languages is an added asset.

Take courses in psychology and consumer behavior.

Acquire effective written and verbal communication skills.

Think creatively. Creativity and common sensecommand a premium in marketing research.


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Ma nage ment I nfo rm atio n S ys temsVs . De cisio n Sup port S ys tems

Unstructured Problems

Use of Models

User Friendly Interaction

Adaptability

Can Improve Decision

Making by Using What if

Analysis

DSSIS Structured Problems

Use of Reports

Rigid Structure

Information Displaying

Restricted

Can Improve Decision Making

by Clarifying Data

Fig. 1.7


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ProjectThe f oll owi ng informa tion w as soli cit ed: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 leastpreferred).

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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DomesticAAPOR :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 ResearchOrganizations (www.casro.org)

MRA : Marketing Research Association (www.mra-net.org)QRCA : Qualitative Research Consultants Association

(www.qrca.org)

RIC : Research Industry Coalition

(www.researchindustry.org)

Onl ine


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InternationalESOMAR: 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)

Ma rke ti ng Resea rch A ss ociatio nsOnlin e

marketing research module 1 introduction

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