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
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
The American Marketing Association
Redefines Marketing Research
RIP 1.1
Marketing research is the function which links the consumer, customer, and public to the marketer through
used to identify and define market
opportunities and problems
generate, refine, and evaluate marketing performance
monitor marketing performance
Customer Groups
Marketing Managers
•
• Consumers
• Employees
• Shareholders Suppliers Controllable Marketing Variables Uncontrollable Environmental Factors Marketing Decision Making Providing Information Assessing Information Needs Marketing Research
• Market Segmentation
• Target Market Selection
• Marketing Programs
• Performance & Control
The Role of Marketing Research
Fig 1.1•Economy •Technology
•Laws & Regulation •Social & Cultural
•
specifies the information
necessary to address these
issues
•
manages and implements the
data collection process
•
analyzes the results
•
communicates the findings
and their implications
Marketing Research
A Classification of Marketing Research
Fig 1.2
Problem
Identification Research
•Market potential research
•Market share research
•Market characteristics research
•Sales analysis research
•Forecasting research
•Business trends research
Problem Solving Research
•Segmentation Research
•Product Research
•Promotion Research
Problem Solving Research
Table 1.1
•
test concept•
determine optimal product design•
package tests•
product modification•
brand positioning and repositioning•
test marketing•
control score tests• determine the basis of segmentation • establish market potential and responsiveness for various segments • select target markets
• create lifestyle profiles:demography, media, and product image
PRICING RESEARCH
PRICING RESEARCH
•
importance of price in brand selection•
pricing policies•
product line pricing•
price elasticity of demand•
initiating and responding to price changesTable 1.1 Contd.
PROMOTIONAL RESEARCH
PROMOTIONAL RESEARCH
•
optimal promotional budget•
sales promotion relationship•
optimal promotional mix•
copy decisions•
media decisions•
creative advertising testing•
claim substantiation•
evaluation of advertising effectiveness$ALE
Table 1.1 Contd.
Determine
•types of distribution
•Attitudes of Channel members
•Intensity of wholesale & resale coverage
•Channel margins
problems
•Unstructured Problems
•Use of Models
•User Friendly Interaction
•Adaptability
•Can Improve Decision
Making by Using “What if”
Analysis
MIS
DSS
Management Information Systems
Versus Decision Support Systems
Fig 1.3
•Structured Problems
•Use of Reports
•Rigid Structure
•Information Displaying Restricted
RESARCH
SUPPLIERS EXTERNAL
FULL SERVICE LIMITED SERVICE
Organization of Marketing
Research at Oscar Mayer
RIP 1.2
Brand Research
Conducts Primary & Secondary Research
Serves As Marketing Consultants
Analyzes Market Trends
Advances the State of the Art in Marketing Research
Marketing Systems and Analytics(MSA)
Performs Sales Analysis Based on Shipment & Store Scanner Data
Supports Computer End Users within Marketing Department
Top 50 Marketing
Research Organizations
RIP 1.3Pe rce nt and
Total re se arch re ve nue s from Revenues from
Rank re ve nue s* outside U.S. outs ide U.S.
1997 1996 Organization (millions) (millions) (millions )
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
Full Services Versus Limited Service
Marketing Research Firms
RIP 1.4
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
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.
Selected Marketing Research
Career Descriptions
Fig 1.5
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.
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, &
Fig 1.5 Contd.
Senior Analyst
• Participates in the development of projects
• Carries out execution of assigned projects
• 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
• Secondary data analysis
• Edits and codes questionnaires
• Conducts preliminary analysis of data
Field Work Director
•Handles selection, training, supervision, and evaluation of interviewers and field workers
Statistician/Data Processing
•serves as expert theory and
application of statistical techniques
A Sample of
Marketing
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 Corporation
RIP 1.6Marketing research at Marriott is done at the
corporate level through the Corporate Marketing Services (CMS). CMS’s goals include providing the management of the different areas of Marriott with the information they need to better
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 betterdefine 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.
RIP 1.6 Contd.
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)
Marketing Research Associations
Online
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)
