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
Marketing research is the problems
function which links the
Generate, refine, and
consumer, customer, and
evaluate marketing
public to the marketer
performance
through
Monitor marketing
performance

Improve understanding of
marketing as a process
Fig 1.1 The Role of Marketing Research
Customer Groups
Consumers
Employees
Shareholders
Suppliers

Uncontrollable
Controllable Environmental
Marketing Factors
Variables
Marketing Economy
Product Research Technology
Pricing
Laws & Regulation
Promotion
Social & Cultural
Distribution Factors
Assessing Providing Marketing
Political Factors
Information Information Decision
Needs Making

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 Problem Solving

Identification Research Research

Market potential research

Market share research Segmentation Research
Market characteristics research Product Research
Sales analysis research Promotion Research
Forecasting research
Business trends research Distribution Research
 Table 1.1
Problem Solving Research

Determine the basis of segmentation Test concept

Establish market potential and Determine optimal product design
responsiveness for various
segments
Package tests

Select target markets

Product modification

Create lifestyle profiles:demography,

Brand positioning and repositioning
media, and product image Test marketing
characteristics
Control score tests
Table 1.1 Contd.
PRICING RESEARCH
Importance of price in brand selection
Pricing policies
Product line pricing
$ALE
Price elasticity of demand
Initiating and responding to price changes

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 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
Figure 1.4

RESARCH
INTERNAL SUPPLIERS EXTERNAL

LIMITED SERVICE
FULL SERVICE
Field Branded
Syndicate Internet Products
Services
Services Services and Services
Customiz Coding and
Standardized
ed Data Entry Data
Services
Services Services Analysis
Analytical
Services Services
RIP 1.2 Organization of Marketing
Research at Oscar Mayer

Marketing Systems and

Brand Research
Conducts Primary & Secondary
Research
Serves As Marketing
Consultants
Analyzes Market Trends
Advances the State of the Art in
Marketing Research
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
Pe rce nt and
Total re se arch re ve nue s from Re venue s from
Rank re ve nue s* outside U.S. outs ide U.S.
1997 1996 Organization (millions) (millions) (millions )
1 1 AC Niels en Corp. $1,391.6 77.7% 1081.6
2 2 Cognizant Corp. 1,339.1 49.2 659.1
3 3 Information Res ources Inc. 456.3 19.6 89.6
4 6 Wes tat Inc. 182.0 0 0
5 8 NFO Worldwide Inc. 190.0*** 21.4 35.8
6 4 the Arbitron Co. 165.2 0 0
7 7 Maritz Marketing Res earch Inc. 146.0 20 29.2
8 9 The Kantar Group Ltd. 127.1 20.2 25.7
9 10 The NP D Group Inc. 110.3 18.3 20.2
10 11 Market facts Inc. 100.1 7 7
11 5 Pharm. Marketing Services Inc. 91.6 46.0 42.1
12 12 Audits & Surveys Worldwide Inc. 68.9 43.5 30
13 14 BASES Worldwide 57.6 19.7 11.4
14 13 The M/A/R/C Group Inc. 57.3 1.5 0.1
15 15 Opinion Res earch Corp. 53.9 32.7 17.6
16 16 SOFRES Inters earch 53.0 15 8.5
RIP 1.3 Contd.

19 22 Burke Inc. 43.8 22.8 10

20 19 Macro International Inc. 42.9 38.5 16.5
21 23 Roper Starch Worldwide Inc. 40.0 17.8 7.1
22 17 Abt Associates Inc. 39.3 0 0
23 21 Elrick & Lavidge 37.1 5.7 2.1
24 38 IntelliQuest Inc. 36.5 29 10.6
25 26 Wirthlin Worldwide 35.5 16 5.7
19 22 Burke Inc. 43.8 22.8 10
20 19 Macro International Inc. 42.9 38.5 16.5
21 23 Roper Starch Worldwide Inc. 40.0 17.8 7.1
22 17 Abt Associates Inc. 39.3 0 0
23 21 Elrick & Lavidge 37.1 5.7 2.1
24 38 IntelliQuest Inc. 36.5 29 10.6
25 26 Wirthlin Worldwide 35.5 16 5.7
26 28 Total Research Corp. 33.1 27.2 9
27 25 MORPACE International 31.2 17.9 5.6
28 27 C&R Research Services Inc. 31.1 0 0
29 24 Walker Information 30.9 21.8 6.7
30 29 Lieberman Research Worldwide 28.6 13.3 0
31 34 Diagnostic Research International Inc. 26.7 3.1 0.8
32 33 IPSOS-ASI Inc. 26.7 0 0
33 30 Yankelovich Partners Inc. 26.4 0 0
34 31 Custom Research Inc. 25.8 0 0
35 39 Harris Black International Ltd. 25.7 7.4 1.9
36 32 Market Strategies Inc. 25.2 1.6 0.4
RIP 1.3 Contd.

35 39 Harris Black International Ltd. 25.7 7.4 1.9

36 32 Market Strategies Inc. 25.2 1.6 0.4
37 37 ICR-Int'l Communications Research 22.3 0 0
38 36 Data Development Corp. 22.2 8.7 1.9
39 35 Chilton Research Services 21.5 0 0
40 40 Market Decisions 18.2 0 0
41 -- National Research Corp. 16.3 0 0
42 43 Response Analysis Corp. 15.9 0 0
43 -- Marketing and Planning Systems 14.2 6 0.9
44 46 MATRIXX Marketing Research 14.1 41.1 5.8
45 41 RDA Group Inc. 14.0 30 4.2
46 45 Guideline Research Corp. 13.3 2.3 0.3
47 48 Directions Research Inc. 13.2 0 0
48 44 Conway/Milliken & Associates 13.0 0 0
49 49 TVG Inc. 12.3 0 0
50 50 Savitz Research Center Inc. 12.0 0 0
Subtotal, Top 50 $5,479.7 39.30% $2,153.20
535.7
All other (124 CASRO member companies not included in Top 50)****
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 full-
service company, has replaced many in-house departments for end-
users 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 Director
Research Also part of senior
Part of companys top management
management
team
Heads the development
Directs companys entire market
and execution of all
research operation
research projects
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
Senior Analyst
Fig 1.5 Contd. Statistician/Data Processing
Participates in the development Serves as expert on theory and
of projects application on statistical techniques
Carries out execution of assigned Oversees experimental design, data
projects processing, and analysis
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 Field Work Director

Secondary data analysis Handles selection, training,
Edits and codes questionnaires supervision, and evaluation of
Conducts preliminary analysis of data 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, Health-
Care, 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)