marketingg.research

1-1© 2007 Prentice Hall

Chapter 1

Introduction and Early Phases of Market Research


Redefining Marketing Research

The American Marketing Association (AMA) redefined Marketing Research as:

The function that links the consumer, thecustomer, and public to the marketer

through INFORMATION


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

Redefining Marketing Research


Definition of Marketing ResearchMarketing 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.


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


Classification of Marketing ResearchProblem-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.


A Classification of Marketing Research

Marketing Research

Problem Identification Research

Problem-Solving Research

Market Potential ResearchMarket Share ResearchMarket Characteristics ResearchSales Analysis ResearchForecasting ResearchBusiness Trends Research

Segmentation ResearchProduct ResearchPricing ResearchPromotion ResearchDistribution Research

Fig. 1.1


Problem-Solving Research

Determine the basis of segmentation

Establish market potential and responsiveness for varioussegments

Select target markets Create lifestyle profiles:

demography, media, and product image characteristics

SEGMENTATION RESEARCH

Test concept Determine optimal product

design Package tests Product modification Brand positioning and

repositioning Test marketing Control score tests

PRODUCT RESEARCH

Table 1.1


Problem-Solving ResearchTable 1.1 cont.

PRICING RESEARCH Pricing policies Importance of price in brand selection Product line pricing Price elasticity of demand Initiating and responding to price changes

$ALE

PROMOTIONAL RESEARCH 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


Problem-Solving ResearchTable 1.1 cont.

DISTRIBUTION RESEARCH

Determine…Types of distributionAttitudes of channel members Intensity of wholesale & resale coverage

Channel marginsLocation of retail and wholesale outlets


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


Marketing Research ProcessStep 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


The Role of Marketing Research

ControllableMarketing

•Product•Pricing•Promotion•Distribution

VariablesMarketing Research

MarketingDecisionMaking

ProvidingInformation

AssessingInformationNeeds

Marketing Managers• Market Segmentation

• Performance & Control

•Target Market Selection• Marketing Programs

UncontrollableEnvironmentalFactors

• Economy• Technology• Laws &

Regulations• Social &

Cultural Factors

• Political Factors

Fig. 1.2• Consumers• Employees• Shareholders• Suppliers

Customer Groups


ClientNeeds Fin

dSeek Pla

nAct

Solve Problem

Achieve Goal

How WeHelp

ClarifyDecisions

ResearchAnalysis

EvaluateInterpretFacilitate

RecommendMarketPlanResearch

AdviseAssistExecution

Opportunity scanOption generation

Refine optionsDecision

Fig. 1.3

Power Decisions’ Methodology

http://www.powerdecisions.com/newsletter.cfm?articleID=225

http://www.powerdecisions.com/engagementshelpimplement.cfm

http://www.powerdecisions.com/tools.cfm

http://www.powerdecisions.com/approach.cfm


Organizational Chart for VNU

Executive BoardCorporate Staff

Marketing Information

Media Measurement& Information

Business Information Directories

ACNielsenVNU Advisory ServicesBASESClaritasSpectraMarket Decisions

Nielsen Media ResearchNielsen/Net RatingsNielsen Film EntertainmentNielsen Home EntertainmentNielsen MusicNielsen Book Nielsen Entertainment IntelIMSPERO/HICScarboroughSRDS

VNU Business PublicationsVNU emedia & Information MarketingVNU ExpositionsVNU Exhibitions Europe

Golden PagesGouden GidsPaginas AmarelasPaglni AurilPromediaTelkom DirectoryVerizon Puerto Rico

Fig. 1.4


Marketing Research Suppliers & Services

LIMITED SERVICEBrandedProducts

and Services

DataAnalysisServices

Analytical

Services

Coding and Data Entry Services

Field Service

s

FULL SERVICESyndicat

eServices

Standardized

Services

Customized

Services

InternetService

s

RESEARCHSUPPLIERS EXTERNALINTERNAL

Fig. 1.5


U.S. Rank Organization Headquarters Website ($, in millions)($, in millions)revenue 2004 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

Top 50 U.S. Marketing Research Firms


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. Rank Organization Headquarters Website ($, in millions) $, in millions) revenue 2004 2003

Top 50 U.S. Marketing Research Firms (Cont…)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. Rank Organization Headquarters Website ($, in millions) $, in millions) revenue 2004 2003

Top 50 U.S. Marketing Research Firms (Cont…)Table 1.2


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


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.


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.


A Sample of Marketing Research Jobs

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