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This document outlines the key topics covered in Chapter 1 of a marketing research textbook. It includes definitions of marketing research, the marketing research process, types of marketing research problems, and the role of marketing research in marketing decision making. It also provides a classification of marketing research and lists the top 50 US marketing research firms.

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1-1 Copyright © 2010 Pearson Education, Inc. Marketing Research Ain Shams University, Business Administration Department.
1-2 Copyright © 2010 Pearson Education, Inc. Course Outline • Part I: Introduction and Early Phases of Marketing Research. • Ch1: Introduction
1-3 Copyright © 2010 Pearson Education, Inc. Introduction and Early Phases of Marketing Research Chapter 1
1-4 Copyright © 2010 Pearson Education, Inc. 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
1-5 Copyright © 2010 Pearson Education, Inc. 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
1-6 Copyright © 2010 Pearson Education, Inc. 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
1-7 Copyright © 2010 Pearson Education, Inc. 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
1-8 Copyright © 2010 Pearson Education, Inc. 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
1-9 Copyright © 2010 Pearson Education, Inc. • Identification: involves defining the marketing research problem (or opportunity) and determining the information that is needed to address it. • 2. Collection: data must be obtained from relevant sources. • 3. Analysis: data are analyzed, interpreted, and inferences are drawn. • 4. Dissemination of information: the findings, implications, and recommendations are provided in a format that makes this information actionable and directly useful as an input into decision making.
1-10 Copyright © 2010 Pearson Education, Inc. 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
1-11 Copyright © 2010 Pearson Education, Inc. 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. • Ex: a declining market potential indicates that the firm is likely to have a problem achieving its growth targets. • A problem exists if the market potential is increasing but the firm is losing market share.
1-12 Copyright © 2010 Pearson Education, Inc. Classification of Marketing Research Problem-Identification Research • The recognition of economic, social or cultural trends such as changes in consumer behavior, may point to underlying problems or opportunities. Problem-Solving Research • Research undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.
1-13 Copyright © 2010 Pearson Education, Inc. A Classification of Marketing Research Marketing Research Problem Identification Research Problem-Solving Research Market Potential Research Market Share Research Market Characteristics Research Sales Analysis Research Forecasting Research Business Trends Research Segmentation Research Product Research Pricing Research Promotion Research Distribution Research Fig. 1.1
1-14 Copyright © 2010 Pearson Education, Inc. Problem-Solving Research § Determine the basis of segmentation § Establish market potential and responsiveness for various segments § 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
1-15 Copyright © 2010 Pearson Education, Inc. Problem-Solving Research Table 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
1-16 Copyright © 2010 Pearson Education, Inc. 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
1-17 Copyright © 2010 Pearson Education, Inc. Figure 1.2 Defining Marketing Research Copyright © 2012 Pearson Education, Inc. Chapter Identification of Information Needed Collection of Data Analysis of Data Dissemination of Information Identifying and Solving Marketing Problems Use of Information
1-18 Copyright © 2010 Pearson Education, Inc. 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
1-19 Copyright © 2010 Pearson Education, Inc. 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
1-20 Copyright © 2010 Pearson Education, Inc. • Problem definition: defining the marketing research problem to be addressed is the most important step because all other steps will be based on this definition. • 2. Developing an approach to the problem: development of a broad specification of how the problem will be addressed allows the researcher to break the problem into salient issues and manageable pieces. • Includes formulating an objective or theoretical framework, analytical models, research questions, and hypotheses and identifying the information needed.
1-21 Copyright © 2010 Pearson Education, Inc. 3. Research design formulation: a framework for conducting the marketing research project that specifies the procedures necessary for obtaining the required information. It details the statistical methodology needed to solve the problem and thus the data requirements needed from data collection. Ø Definition of the information needed Ø Secondary data analysis Ø Qualitative research Ø Methods of collecting quantitative data (survey, observation and experimentation) Ø Measurement and scaling procedures Ø Questionnaire design Ø Sampling process and sample size Ø Plan of data analysis.
1-22 Copyright © 2010 Pearson Education, Inc. 4.Fieldwork or data collection: a field force (personal interviewing, phone, mail, or electronic surveys) gathers project data. While seemingly trivial in nature, to obtain meaningful results field workers must be accurate and thorough in data collection. 5.Data preparation and analysis: the editing, coding, transcription, and verification of data allow researchers to derive meaning from the data. 6.Report preparation and presentation: the findings are communicated to the client. The report should address the specific research questions identified in the problem definition, describe the approach, the research design, data collection and the data analysis procedures adopted, and present the results and the major findings.
1-23 Copyright © 2010 Pearson Education, Inc. The Role of Marketing Research Controllable Marketing •Product •Pricing •Promotion •Distribution Variables Marketing Research Marketing Decision Making Providing Information Assessing Information Needs Marketing Managers • Market Segmentation • Performance & Control •Target Market Selection • Marketing Programs Uncontrollable Environmental Factors • Economy • Technology • Laws & Regulations • Social & Cultural Factors • Political Factors Fig. 1.2 • Consumers • Employees • Shareholders • Suppliers Customer Groups
1-24 Copyright © 2010 Pearson Education, Inc. Client Needs Find Seek Plan Act Solve Problem Achieve Goal How We Help Clarify Decisions Research Analysis Evaluate Interpret Facilitate Recommend Market Plan Research Advise Assist Execution Opportunity scan Option generation Refine options Decision Fig. 1.3 Power Decisions’ Methodology
1-25 Copyright © 2010 Pearson Education, Inc. Marketing Research Suppliers & Services LIMITED SERVICE Other Services Technical and Analytical Services Focus Groups and Qualitative Services Field Services FULL SERVICE Syndicate Services Standardized Services Customized Services Internet Services RESEARCH SUPPLIERS EXTERNAL INTERNAL Fig. 1.4
1-26 Copyright © 2010 Pearson Education, Inc. U.S. Rank Organization Headquarters Website U.S. Global Non-U.S. 2007 2006 Table 1.2 Top 50 U.S. Marketing Research Firms 1 1 The Nielsen Co. New York nielsen.com $2,173.0 $4,220.0 48.5% 2 2 IMS Health Inc. Norwalk, Conn. imshealth.com 801.0 2,192.6 63.5 3 3 Kantar Group* Fairfield, Conn. kantargroup.com 526.8 1,551.4 66.0 4 5 Westat Inc. Rockville, MD westat.com 467.8 467.8 — 5 4 IRI Chicago infores.com 441.0 702.0 37.2 6 6 TNS U.S. New York tnsglobal.com 379.8 2,137.2 82.2 7 7 Arbitron Inc. New York arbitron.com 338.5 352.1 3.9 8 8 GfK AG USA Nuremberg, Germany gfk.com 319.7 1,603.00 80.1 9 9 Ipsos New York ipsos-na.com 281.2 1,270.30 77.9 10 10 Synovate London synovate.com 250.4 867.0 71.1 11 11 Maritz Research Fenton, Mo. maritzresearch.com 187.4 223.3 16.1 12 13 J.D. Power and Associates* Westlake Village, Calif. jdpower.com 184.5 260.5 29.2 13 12 Harris Interactive Inc. Rochester, N.Y. harrisinteractive.com 161.0 227.0 29.1 14 14 The NPD Group Inc. Port Washington, N.Y. npd.com 160.4 211.1 24.0 15 — Opinion Research/ Guideline Group Omaha, Neb. infousa.com 124.7 206.7 39.7 15 Opinion Research Corp. Princeton, N.J. opinionresearch.com 97.5 179.5 45.7
1-27 Copyright © 2010 Pearson Education, Inc. U.S. Rank Organization Headquarters Website U.S. Global Non-U.S. 2007 2006 Table 1.2 Top 50 U.S. Marketing Research Firms (Cont…) 38 Guideline Inc. New York guideline.com 26.8 26.8 — 16 18 comScore Inc. Reston, Va. comscore.com 77.0 87.2 11.7 17 20 Market Strategies Inc. Livonia, Mich. marketstrategies.com 75.7 80.4 5.8 20 Market Strategies Inc. Livonia, Mich. markestrategies.com 53.4 58.1 8.1 37 Flake-Wilkerson Market Insights Little Rock, Ark. fw-mi.com 22.3 22.3 — 18 17 Lieberman Research Worldwide Los Angeles Irwonline.com 71.0 87.4 18.8 19 — Abt Associates Inc. Cambridge, Mass. abtassociates.com 55.1 55.1 — 19 Abt Associates Inc. Cambridge, Mass. abtassociates.com 33.0 33.0 — 41 Abt SRBI Inc. New York srbi.com 22.1 22.1 — 20 23 OTX Los Angeles otxresearch.com 50.8 54.5 6.8 21 21 Burke Inc. Cincinnati burke.com 47.0 53.1 11.5 22 22 MVL Group Inc. Jupiter, Fla. mvlgroup.com 42.3 42.3 — 23 26 Knowledge Networks Inc. Menlo Park, Calif. knowledgenetworks.com 37.3 37.3 — 23 25 National Research Corp. Lincoln, Neb. nationalresearch.com 37.3 41.3 9.7 25 24 Directions Research Inc. Cincinnati directionsresearch.com 37.2 37.2 — 26 40 Phoenix Marketing International Rhineback, N.Y. phoenixmi.com 33.5 34.9 4.0
1-28 Copyright © 2010 Pearson Education, Inc. U.S. Rank Organization Headquarters Website U.S. Global Non-U.S. 2007 2006 Table 1.2 Top 50 U.S. Marketing Research Firms (Cont…) 27 34 Lieberman Research Group Great Neck, N.Y. liebermanresearch.com 30.1 30.1 — 28 27 ICR/Int'l Communications Research Media, Pa. icrsurvey.com 28.8 29.7 3.0 29 28 Morpace Inc. Farmington Hills, Mich. morpace.com 28.7 33.2 13.6 30 33 MarketCast Los Angeles marketcastonline.com 25.1 25.1 31 36 Data Development Worldwide New York datadw.com 25.0 25.3 1.2 32 39 C&R Research Services Inc. Chicago crresearch.com 23.6 23.6 — 33 32 Informa Research Services Inc. Calabasas, Calif. informars.com 23.5 23.5 — 34 31 National Analysts Worldwide Philadelphia nationalanalysts.com 23.3 23.3 — 35 44 Service Management Group Kansas City, Mo. servicemanagement.com 22.4 23.0 2.6 36 34 Market Probe Inc. Milwaukee marketprobe.com 21.7 41.4 47.6 37 — Hitwise New York hitwise.com 21.6 49.9 56.7 38 42 Walker Information Indianapolis walkerinfo.com 21.2 25.5 16.9 39 43 KS&R Inc. Syracuse, N.Y. ksrinc.com 17.1 21.0 18.6 40 47 Bellomy Research Inc. Winston-Salem, N.C. bellomyresearch.com 16.7 16.7 — 41 46 MarketVision Research Inc. Cincinnati marketvisionresearch.com 16.4 16.4 — 42 28 Public Opinion Strategies Alexandra, Va. pos.org 15.5 15.5 —
1-29 Copyright © 2010 Pearson Education, Inc. U.S. Rank Organization Headquarters Website U.S. Global Non- U.S. 2007 2006 Table 1.2 Top 50 U.S. Marketing Research Firms (Cont…) 43 — Compete Inc. Boston compete.com 14.9 14.9 — 44 45 Savitz Research Companies Dallas savitzresearch.com 14.8 14.8 — 45 48 RDA Group Inc. Bloomfield Hills, Mich. rdagroup.com 13.7 16.8 18.5 46 — Gongos Research Inc. Auburn Hills, Mich. gongos.com 13.3 13.3 — 47 — Q Research Solutions Inc. Old Bridge, N.J. whoisq.com 13.0 13.2 1.5 48 49 Marketing Analysts Inc. Charleston, S.C. marketinganalysts.com 12.8 13.6 5.9 49 50 RTi Market Research & Brand Strategy Stamford, Conn. rtiresearch.com 12.2 12.2 — 50 — The Link Group Atlanta the-link-group.com 11.9 13.3 10.5 Total $7.828.7 $17,638.0 55.6% All other (150 CASRO companies not included in the Top 50) $774.3 $870.1 11.0% Total (200 companies) $8,603.0 $18,508.1 53.5% *Estimated by Top 50. U.S. and worldwide revenue may include nonresearch activities for some companies that are significantly higher. Rate of growth from year to year has been adjusted so as not to include revenue gains or losses from acquisitions or divestitures. Total revenue of 150 survey research companies that provide financial information on a confidential basis to CASRO.
1-30 Copyright © 2010 Pearson Education, Inc. 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. Fig. 1.5
1-31 Copyright © 2010 Pearson Education, Inc. 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, implementation, & research projects Fig. 1.5 cont.
1-32 Copyright © 2010 Pearson Education, Inc. 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 Fieldwork Director •Handles selection, training, supervision, and evaluation of interviewers and field workers 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 Fig. 1.5 cont. Statistician/Data Processing • Serves as expert on theory and application on statistical techniques • Oversees experimental design, data processing, and analysis Selected Marketing Research Career Descriptions
1-33 Copyright © 2010 Pearson Education, Inc. Marketing Research Suppliers & Services • Internal suppliers • External suppliers • Full-service suppliers • Syndicated services • Standardized services • Customized services • Internet services • Limited-service suppliers • Field services • Focus groups and qualitative services • Technical and analytical services • Other services
1-34 Copyright © 2010 Pearson Education, Inc. 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.
1-35 Copyright © 2010 Pearson Education, Inc. 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
1-36 Copyright © 2010 Pearson Education, Inc. A Sample of Marketing Research Jobs
1-37 Copyright © 2010 Pearson Education, Inc. 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.
1-38 Copyright © 2010 Pearson Education, Inc. Management Information Systems Vs. Decision Support Systems § Unstructured Problems § Use of Models § User Friendly Interaction § Adaptability § Can Improve Decision Making by Using “What if” Analysis DSS MIS § Structured Problems § Use of Reports § Rigid Structure § Information Displaying Restricted § Can Improve Decision Making by Clarifying Data Fig. 1.6
1-39 Copyright © 2010 Pearson Education, Inc. 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
1-40 Copyright © 2010 Pearson Education, Inc. 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.researchindustry.org) Marketing Research Associations Online
1-41 Copyright © 2010 Pearson Education, Inc. 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) Marketing Research Associations Online
1-42 Copyright © 2010 Pearson Education, Inc. Overview of Ethical Issues in Marketing Research Table 1.3 I Problem definition - Using surveys as a guise for selling or fundraising - Personal agendas of the researcher or client - Conducting unnecessary research II Developing an approach - Using findings and models developed for specific clients or projects for other projects - Soliciting proposals to gain research expertise without pay - Inaccurate reporting
1-43 Copyright © 2010 Pearson Education, Inc. Overview of Ethical Issues in Marketing Research (Cont.) Table 1.3 cont. III Research Design - Formulating a research design more suited to the researcher's rather than the client's needs - Using secondary data that are not applicable or have been gathered through questionable means - Disguising the purpose of the research - Soliciting unfair concessions from the researcher - Not maintaining anonymity of respondents - Disrespecting privacy of respondents - Misleading respondents - Disguising observation of respondents - Embarrassing or putting stress on respondents - Using measurement scales of questionable reliability & validity - Designing overly long/sensitive questionnaires - Using inappropriate sampling procedures and sample size
1-44 Copyright © 2010 Pearson Education, Inc. Overview of Ethical Issues in Marketing Research Table 1.3 cont. IV Field Work - Increasing discomfort level of respondents - Following unacceptable field work procedures V Data Preparation and Analysis - Identifying and discarding unsatisfactory respondents - Using statistical techniques when the underlying assumptions are violated - Interpreting the results and making incorrect conclusions and recommendations VI Report Preparation and Presentation - Incomplete reporting - Biased reporting - Inaccurate reporting
1-45 Copyright © 2010 Pearson Education, Inc.
1-46 Copyright © 2010 Pearson Education, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc.

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Malhotra_MR6e_01_2.pdf

  • 1. 1-1 Copyright © 2010 Pearson Education, Inc. Marketing Research Ain Shams University, Business Administration Department.
  • 2. 1-2 Copyright © 2010 Pearson Education, Inc. Course Outline • Part I: Introduction and Early Phases of Marketing Research. • Ch1: Introduction
  • 3. 1-3 Copyright © 2010 Pearson Education, Inc. Introduction and Early Phases of Marketing Research Chapter 1
  • 4. 1-4 Copyright © 2010 Pearson Education, Inc. 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
  • 5. 1-5 Copyright © 2010 Pearson Education, Inc. 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
  • 6. 1-6 Copyright © 2010 Pearson Education, Inc. 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
  • 7. 1-7 Copyright © 2010 Pearson Education, Inc. 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
  • 8. 1-8 Copyright © 2010 Pearson Education, Inc. 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
  • 9. 1-9 Copyright © 2010 Pearson Education, Inc. • Identification: involves defining the marketing research problem (or opportunity) and determining the information that is needed to address it. • 2. Collection: data must be obtained from relevant sources. • 3. Analysis: data are analyzed, interpreted, and inferences are drawn. • 4. Dissemination of information: the findings, implications, and recommendations are provided in a format that makes this information actionable and directly useful as an input into decision making.
  • 10. 1-10 Copyright © 2010 Pearson Education, Inc. 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
  • 11. 1-11 Copyright © 2010 Pearson Education, Inc. 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. • Ex: a declining market potential indicates that the firm is likely to have a problem achieving its growth targets. • A problem exists if the market potential is increasing but the firm is losing market share.
  • 12. 1-12 Copyright © 2010 Pearson Education, Inc. Classification of Marketing Research Problem-Identification Research • The recognition of economic, social or cultural trends such as changes in consumer behavior, may point to underlying problems or opportunities. Problem-Solving Research • Research undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.
  • 13. 1-13 Copyright © 2010 Pearson Education, Inc. A Classification of Marketing Research Marketing Research Problem Identification Research Problem-Solving Research Market Potential Research Market Share Research Market Characteristics Research Sales Analysis Research Forecasting Research Business Trends Research Segmentation Research Product Research Pricing Research Promotion Research Distribution Research Fig. 1.1
  • 14. 1-14 Copyright © 2010 Pearson Education, Inc. Problem-Solving Research § Determine the basis of segmentation § Establish market potential and responsiveness for various segments § 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
  • 15. 1-15 Copyright © 2010 Pearson Education, Inc. Problem-Solving Research Table 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
  • 16. 1-16 Copyright © 2010 Pearson Education, Inc. 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
  • 17. 1-17 Copyright © 2010 Pearson Education, Inc. Figure 1.2 Defining Marketing Research Copyright © 2012 Pearson Education, Inc. Chapter Identification of Information Needed Collection of Data Analysis of Data Dissemination of Information Identifying and Solving Marketing Problems Use of Information
  • 18. 1-18 Copyright © 2010 Pearson Education, Inc. 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
  • 19. 1-19 Copyright © 2010 Pearson Education, Inc. 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
  • 20. 1-20 Copyright © 2010 Pearson Education, Inc. • Problem definition: defining the marketing research problem to be addressed is the most important step because all other steps will be based on this definition. • 2. Developing an approach to the problem: development of a broad specification of how the problem will be addressed allows the researcher to break the problem into salient issues and manageable pieces. • Includes formulating an objective or theoretical framework, analytical models, research questions, and hypotheses and identifying the information needed.
  • 21. 1-21 Copyright © 2010 Pearson Education, Inc. 3. Research design formulation: a framework for conducting the marketing research project that specifies the procedures necessary for obtaining the required information. It details the statistical methodology needed to solve the problem and thus the data requirements needed from data collection. Ø Definition of the information needed Ø Secondary data analysis Ø Qualitative research Ø Methods of collecting quantitative data (survey, observation and experimentation) Ø Measurement and scaling procedures Ø Questionnaire design Ø Sampling process and sample size Ø Plan of data analysis.
  • 22. 1-22 Copyright © 2010 Pearson Education, Inc. 4.Fieldwork or data collection: a field force (personal interviewing, phone, mail, or electronic surveys) gathers project data. While seemingly trivial in nature, to obtain meaningful results field workers must be accurate and thorough in data collection. 5.Data preparation and analysis: the editing, coding, transcription, and verification of data allow researchers to derive meaning from the data. 6.Report preparation and presentation: the findings are communicated to the client. The report should address the specific research questions identified in the problem definition, describe the approach, the research design, data collection and the data analysis procedures adopted, and present the results and the major findings.
  • 23. 1-23 Copyright © 2010 Pearson Education, Inc. The Role of Marketing Research Controllable Marketing •Product •Pricing •Promotion •Distribution Variables Marketing Research Marketing Decision Making Providing Information Assessing Information Needs Marketing Managers • Market Segmentation • Performance & Control •Target Market Selection • Marketing Programs Uncontrollable Environmental Factors • Economy • Technology • Laws & Regulations • Social & Cultural Factors • Political Factors Fig. 1.2 • Consumers • Employees • Shareholders • Suppliers Customer Groups
  • 24. 1-24 Copyright © 2010 Pearson Education, Inc. Client Needs Find Seek Plan Act Solve Problem Achieve Goal How We Help Clarify Decisions Research Analysis Evaluate Interpret Facilitate Recommend Market Plan Research Advise Assist Execution Opportunity scan Option generation Refine options Decision Fig. 1.3 Power Decisions’ Methodology
  • 25. 1-25 Copyright © 2010 Pearson Education, Inc. Marketing Research Suppliers & Services LIMITED SERVICE Other Services Technical and Analytical Services Focus Groups and Qualitative Services Field Services FULL SERVICE Syndicate Services Standardized Services Customized Services Internet Services RESEARCH SUPPLIERS EXTERNAL INTERNAL Fig. 1.4
  • 26. 1-26 Copyright © 2010 Pearson Education, Inc. U.S. Rank Organization Headquarters Website U.S. Global Non-U.S. 2007 2006 Table 1.2 Top 50 U.S. Marketing Research Firms 1 1 The Nielsen Co. New York nielsen.com $2,173.0 $4,220.0 48.5% 2 2 IMS Health Inc. Norwalk, Conn. imshealth.com 801.0 2,192.6 63.5 3 3 Kantar Group* Fairfield, Conn. kantargroup.com 526.8 1,551.4 66.0 4 5 Westat Inc. Rockville, MD westat.com 467.8 467.8 — 5 4 IRI Chicago infores.com 441.0 702.0 37.2 6 6 TNS U.S. New York tnsglobal.com 379.8 2,137.2 82.2 7 7 Arbitron Inc. New York arbitron.com 338.5 352.1 3.9 8 8 GfK AG USA Nuremberg, Germany gfk.com 319.7 1,603.00 80.1 9 9 Ipsos New York ipsos-na.com 281.2 1,270.30 77.9 10 10 Synovate London synovate.com 250.4 867.0 71.1 11 11 Maritz Research Fenton, Mo. maritzresearch.com 187.4 223.3 16.1 12 13 J.D. Power and Associates* Westlake Village, Calif. jdpower.com 184.5 260.5 29.2 13 12 Harris Interactive Inc. Rochester, N.Y. harrisinteractive.com 161.0 227.0 29.1 14 14 The NPD Group Inc. Port Washington, N.Y. npd.com 160.4 211.1 24.0 15 — Opinion Research/ Guideline Group Omaha, Neb. infousa.com 124.7 206.7 39.7 15 Opinion Research Corp. Princeton, N.J. opinionresearch.com 97.5 179.5 45.7
  • 27. 1-27 Copyright © 2010 Pearson Education, Inc. U.S. Rank Organization Headquarters Website U.S. Global Non-U.S. 2007 2006 Table 1.2 Top 50 U.S. Marketing Research Firms (Cont…) 38 Guideline Inc. New York guideline.com 26.8 26.8 — 16 18 comScore Inc. Reston, Va. comscore.com 77.0 87.2 11.7 17 20 Market Strategies Inc. Livonia, Mich. marketstrategies.com 75.7 80.4 5.8 20 Market Strategies Inc. Livonia, Mich. markestrategies.com 53.4 58.1 8.1 37 Flake-Wilkerson Market Insights Little Rock, Ark. fw-mi.com 22.3 22.3 — 18 17 Lieberman Research Worldwide Los Angeles Irwonline.com 71.0 87.4 18.8 19 — Abt Associates Inc. Cambridge, Mass. abtassociates.com 55.1 55.1 — 19 Abt Associates Inc. Cambridge, Mass. abtassociates.com 33.0 33.0 — 41 Abt SRBI Inc. New York srbi.com 22.1 22.1 — 20 23 OTX Los Angeles otxresearch.com 50.8 54.5 6.8 21 21 Burke Inc. Cincinnati burke.com 47.0 53.1 11.5 22 22 MVL Group Inc. Jupiter, Fla. mvlgroup.com 42.3 42.3 — 23 26 Knowledge Networks Inc. Menlo Park, Calif. knowledgenetworks.com 37.3 37.3 — 23 25 National Research Corp. Lincoln, Neb. nationalresearch.com 37.3 41.3 9.7 25 24 Directions Research Inc. Cincinnati directionsresearch.com 37.2 37.2 — 26 40 Phoenix Marketing International Rhineback, N.Y. phoenixmi.com 33.5 34.9 4.0
  • 28. 1-28 Copyright © 2010 Pearson Education, Inc. U.S. Rank Organization Headquarters Website U.S. Global Non-U.S. 2007 2006 Table 1.2 Top 50 U.S. Marketing Research Firms (Cont…) 27 34 Lieberman Research Group Great Neck, N.Y. liebermanresearch.com 30.1 30.1 — 28 27 ICR/Int'l Communications Research Media, Pa. icrsurvey.com 28.8 29.7 3.0 29 28 Morpace Inc. Farmington Hills, Mich. morpace.com 28.7 33.2 13.6 30 33 MarketCast Los Angeles marketcastonline.com 25.1 25.1 31 36 Data Development Worldwide New York datadw.com 25.0 25.3 1.2 32 39 C&R Research Services Inc. Chicago crresearch.com 23.6 23.6 — 33 32 Informa Research Services Inc. Calabasas, Calif. informars.com 23.5 23.5 — 34 31 National Analysts Worldwide Philadelphia nationalanalysts.com 23.3 23.3 — 35 44 Service Management Group Kansas City, Mo. servicemanagement.com 22.4 23.0 2.6 36 34 Market Probe Inc. Milwaukee marketprobe.com 21.7 41.4 47.6 37 — Hitwise New York hitwise.com 21.6 49.9 56.7 38 42 Walker Information Indianapolis walkerinfo.com 21.2 25.5 16.9 39 43 KS&R Inc. Syracuse, N.Y. ksrinc.com 17.1 21.0 18.6 40 47 Bellomy Research Inc. Winston-Salem, N.C. bellomyresearch.com 16.7 16.7 — 41 46 MarketVision Research Inc. Cincinnati marketvisionresearch.com 16.4 16.4 — 42 28 Public Opinion Strategies Alexandra, Va. pos.org 15.5 15.5 —
  • 29. 1-29 Copyright © 2010 Pearson Education, Inc. U.S. Rank Organization Headquarters Website U.S. Global Non- U.S. 2007 2006 Table 1.2 Top 50 U.S. Marketing Research Firms (Cont…) 43 — Compete Inc. Boston compete.com 14.9 14.9 — 44 45 Savitz Research Companies Dallas savitzresearch.com 14.8 14.8 — 45 48 RDA Group Inc. Bloomfield Hills, Mich. rdagroup.com 13.7 16.8 18.5 46 — Gongos Research Inc. Auburn Hills, Mich. gongos.com 13.3 13.3 — 47 — Q Research Solutions Inc. Old Bridge, N.J. whoisq.com 13.0 13.2 1.5 48 49 Marketing Analysts Inc. Charleston, S.C. marketinganalysts.com 12.8 13.6 5.9 49 50 RTi Market Research & Brand Strategy Stamford, Conn. rtiresearch.com 12.2 12.2 — 50 — The Link Group Atlanta the-link-group.com 11.9 13.3 10.5 Total $7.828.7 $17,638.0 55.6% All other (150 CASRO companies not included in the Top 50) $774.3 $870.1 11.0% Total (200 companies) $8,603.0 $18,508.1 53.5% *Estimated by Top 50. U.S. and worldwide revenue may include nonresearch activities for some companies that are significantly higher. Rate of growth from year to year has been adjusted so as not to include revenue gains or losses from acquisitions or divestitures. Total revenue of 150 survey research companies that provide financial information on a confidential basis to CASRO.
  • 30. 1-30 Copyright © 2010 Pearson Education, Inc. 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. Fig. 1.5
  • 31. 1-31 Copyright © 2010 Pearson Education, Inc. 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, implementation, & research projects Fig. 1.5 cont.
  • 32. 1-32 Copyright © 2010 Pearson Education, Inc. 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 Fieldwork Director •Handles selection, training, supervision, and evaluation of interviewers and field workers 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 Fig. 1.5 cont. Statistician/Data Processing • Serves as expert on theory and application on statistical techniques • Oversees experimental design, data processing, and analysis Selected Marketing Research Career Descriptions
  • 33. 1-33 Copyright © 2010 Pearson Education, Inc. Marketing Research Suppliers & Services • Internal suppliers • External suppliers • Full-service suppliers • Syndicated services • Standardized services • Customized services • Internet services • Limited-service suppliers • Field services • Focus groups and qualitative services • Technical and analytical services • Other services
  • 34. 1-34 Copyright © 2010 Pearson Education, Inc. 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.
  • 35. 1-35 Copyright © 2010 Pearson Education, Inc. 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
  • 36. 1-36 Copyright © 2010 Pearson Education, Inc. A Sample of Marketing Research Jobs
  • 37. 1-37 Copyright © 2010 Pearson Education, Inc. 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.
  • 38. 1-38 Copyright © 2010 Pearson Education, Inc. Management Information Systems Vs. Decision Support Systems § Unstructured Problems § Use of Models § User Friendly Interaction § Adaptability § Can Improve Decision Making by Using “What if” Analysis DSS MIS § Structured Problems § Use of Reports § Rigid Structure § Information Displaying Restricted § Can Improve Decision Making by Clarifying Data Fig. 1.6
  • 39. 1-39 Copyright © 2010 Pearson Education, Inc. 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
  • 40. 1-40 Copyright © 2010 Pearson Education, Inc. 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.researchindustry.org) Marketing Research Associations Online
  • 41. 1-41 Copyright © 2010 Pearson Education, Inc. 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) Marketing Research Associations Online
  • 42. 1-42 Copyright © 2010 Pearson Education, Inc. Overview of Ethical Issues in Marketing Research Table 1.3 I Problem definition - Using surveys as a guise for selling or fundraising - Personal agendas of the researcher or client - Conducting unnecessary research II Developing an approach - Using findings and models developed for specific clients or projects for other projects - Soliciting proposals to gain research expertise without pay - Inaccurate reporting
  • 43. 1-43 Copyright © 2010 Pearson Education, Inc. Overview of Ethical Issues in Marketing Research (Cont.) Table 1.3 cont. III Research Design - Formulating a research design more suited to the researcher's rather than the client's needs - Using secondary data that are not applicable or have been gathered through questionable means - Disguising the purpose of the research - Soliciting unfair concessions from the researcher - Not maintaining anonymity of respondents - Disrespecting privacy of respondents - Misleading respondents - Disguising observation of respondents - Embarrassing or putting stress on respondents - Using measurement scales of questionable reliability & validity - Designing overly long/sensitive questionnaires - Using inappropriate sampling procedures and sample size
  • 44. 1-44 Copyright © 2010 Pearson Education, Inc. Overview of Ethical Issues in Marketing Research Table 1.3 cont. IV Field Work - Increasing discomfort level of respondents - Following unacceptable field work procedures V Data Preparation and Analysis - Identifying and discarding unsatisfactory respondents - Using statistical techniques when the underlying assumptions are violated - Interpreting the results and making incorrect conclusions and recommendations VI Report Preparation and Presentation - Incomplete reporting - Biased reporting - Inaccurate reporting
  • 45. 1-45 Copyright © 2010 Pearson Education, Inc.
  • 46. 1-46 Copyright © 2010 Pearson Education, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc.