He is a fellow of The Market Research Society and is also the editor of The International Handbook of Market Research Techniques. Nigel Culkinis a fellow of The Market Research Society and member of its Professional Development Advisory Board.
KEY POINTS
The basic division is whether the purpose of the organization is to make money - that is, it is in the commercial sector - or whether it is to spend money - that is, it is in the "non-profit" sector. The differences between the commercial and "not-for-profit" sectors are those of orientation and ethos, and these are reflected in the design of the market research that is commissioned.
Types of
The market research that an organization carries out is very strongly related to the imperatives of that organization. This chapter examines the different types of organizations that exist, laying the foundation for the rest of this book.
The requirements of commercial and non-profit organizations are different, and are reflected in the way they use market research. The market research system consists of three separate parts: the market (the collection of what is sold), the research franchise (consumers) and the research stakeholders (the people within the organization, or associated with it, who have an interest in the outcome of the research ).
COMMISSIONING ENVIRONMENTS
COMMERCIAL ORGANIZATIONS
However, the long-term effect of doing so is harming the effectiveness of the organization. This does not mean that the benefit is in any way less real to the buyer of the product.
NOT-FOR-PROFIT ORGANIZATIONS
This means that increasingly, the commercial and non-profit sectors are not differentiated much in this aspect of the research system. Research stakeholders in commercial organizations typically include various levels of the marketing department and.
SUMMARY OF DIFFERENCES BETWEEN THE COMMERCIAL AND NOT-FOR-PROFIT
The research franchise of these two potential stakeholders is different, but the ostensible purpose of the research may be the same. Aspects such as justice, rights, needs, public good and other moral dimensions can come strongly into play (Hedges and Duncan, 2000) and including this in the research design increases the diversity of the research franchise.
SECTORS
Here the concept of the decision making unit (DMU) is quite well developed (that is, how different people or functions relate to each other when making a decision about a purchase), and this is clearly a very important dynamic to understand . . The research franchise in this case is difficult to define: who exactly has the power to decide whether to buy or not, and how do the different elements of the DMU relate to each other.
CONCLUSION
From all of the above, it should be clear that issues of research design, especially in terms of the sample and perhaps in terms of the orientation of the research objectives (and thus the questions posed), ultimately depend on having a clear conception of the research. the system that is applied. The importance of this debate is that a proper conception of the basis of the financial value of a company allows its proper management.
Knowledge is the most
However, what lies behind a company's value is subject to some debate, and there are quite a variety of opinions on the answer. This chapter explores the different ways in which a company's value can be described, and looks at the most contemporary expression of this, namely that a company's greatest asset is its knowledge.
Recently, the term "tacit knowledge" is being used to describe the kind of knowledge that is soft and conceptual. This essentially negates the importance of the role of conceptual information in running an organization.
COMPANY VALUE AND EARNING POWER
The market value of the company can be greater, the same or less than the money invested in it. One way of looking at this is to imagine that the company has some other 'assets' which add the extra earnings over and above what would be expected from an efficient use of the invested capital.
DIFFERENT TYPES OF ASSET
This market value is mainly related to the current and future potential earning capacity of the company, adjusted for the risk associated with the specific company and the sector in which it is located. It is also very expensive in terms of staff time required to carry out the activities. training, and the training itself is not cheap.
KNOWLEDGE AS THE ULTIMATE ASSET
This has a profound effect on the way market research is sought, thought about and used, particularly on the issue of the quantitative/qualitative divide (see Chapters 6 and 7). The meaning of the concept of "knowledge" is a philosophical point, and words such as: "facts", "information", "knowledge", "understanding", "wisdom" and so on have been thrown around for years.
MANAGEMENT OF KNOWLEDGE
However, it is noticeable that places where TQM has not been as effective are more likely to have tacit information of a modern design (that is, conceptual information) than manufacturing companies, where an older version of the meaning of tacit information (uncoded explicit information) is more likely. that it will be valid. Unfortunately, these factors still appear to be undercurrents in mitigating the effects of knowledge management systems.
DEVELOPING AN INFORMATION CLIMATE FOR MARKETING
This is because, under these circumstances, different perceptions of the market may develop within the same organization. Managing tacit information about an organization's market and people is about shared assumptions at the highest level.
Decision
This is because the resulting decision is made based on broader (and generally more assimilated) knowledge. Decisions can be deeply involved in the power politics of an organization, and when this is the case, market research is often involved, for better or for worse.
INTRODUCTION
This is usually because the external viewer is not in possession of all the information. If this is the case, strategic decision-making becomes very difficult, and doing research for it becomes extraordinarily so.
THE PSYCHOLOGY OF DECISION MAKING
Trashing the research is also a fairly explicit attempt to slander the researcher. It is at such moments that the difficulty of the market research function comes into play (Hammond, 1998).
HANDLING CHANGE
The aim is straightforward – to spoil the research so that the decision it entails must be made, thwarted. Success in dealing with these issues, which means fighting once in a while, makes the difference between e.g. that the function breaks down into a simple procurement department with low status and poor prospects, or to grow in status and influence and thus be able to contribute strongly. to the success of the organization.
THE ROLE OF MARKET RESEARCH
This is entirely because the decision is based on more information than is provided by the research. It is extremely easy to get this wrong (this will be explored in more detail in Chapter 8).
THE INTERNATIONAL COMPANY
This must be understood because it can lead to the need to emphasize various benefits in marketing communications. An example of this was the Close-Up 'kissing' campaign – this is about young people who get close to each other after using Close-Up – which ranged from an extremely vulgar kiss in Brazil to a very subdued smile in India and China, although the underlying idea and brand positioning were the same in all countries (Pawles, 1999).
The market research
The organization of market research departments becomes difficult when the company is large and there is a dilemma whether to centralize or distribute it. As the volume of market research that a business and the marketing community experiences increases, there has been an increasing amount of criticism of its ability to deliver better insights, and moves are underway to create 'consumer insight' departments.
THE MARKET RESEARCH DEPARTMENT
Not infrequently, the market research department is located within the marketing function and the research manager then reports to the marketing director or vice president of marketing. A market research department can sometimes have a leadership role in the company regarding the way the company expands its knowledge.
CONSUMER INSIGHT
The net effect is that it is increasingly recognized that the output requirements of market research and market analysis have merged, and some of the new insight departments are actively seeking to combine the 'insight' of both. While it is easy to see the term “consumer insight” as simply a relabeling, it nevertheless reflects a change in importance.
THE POWER THING AGAIN
He or she would like to participate in focus groups and know the outcome of the research before being interviewed. Purchasing can be made directly by the end user or by an entity in the organization on behalf of the end user.
Buyer supplier relationships
In the first case, where the end user is also the research commissioner, the relationship between buyer and supplier can be quite intimate, with the supplier acting as both a confidant and a consultant. It is very important that the supplier is easily contactable, that he or she signals the presence of potential problems in the field work and prepares the client for the nature of the results before the report.
TYPES OF BUYING
In this way, it can smooth the course of the entire process, and contribute to the eventual work being used successfully in the organization (see Chapter 8). This seems to happen when the organization is essentially overtly political, and the power of the research function within the organization is degraded.
PROPOSING AGAINST A WRITTEN BRIEF
It is also very useful for the agency to have some indication of the price parameters. It is an excellent thing that the commission company provides the criteria by which it intends to select the successful candidate.
COMMISSIONING QUANTITATIVE RESEARCH
In addition to being polite, it is also to the benefit of the commissioner, as it will help the agency to make more appropriate proposals in the future. First, it is obvious that basic fieldwork must be done properly and in accordance with the standards advocated by the Market Research Society, including compliance with the relevant elements of its Code.
IMPORTANT FACTORS WHEN COMMISSIONING QUALITATIVE
RESEARCH
This may be related to the nature of the techniques that work best (with which the researcher may or may not feel comfortable) or the people they have to deal with (not everyone likes working with advertising agencies, for example). , or the overall result of the required research (for example, well-defined and argumentative versus creative and more speculative). Some researchers simply do not want to do certain types of research because of the locations where the researcher might have to go.
CREATING THE QUALITATIVE LIST
This is because outreach becomes easier and more efficient, and importantly, there is also the possibility (and generally expectation) that overall knowledge of the project increases. Some believe that the process of keeping a single researcher on a single project is too restrictive for the project and places too much emphasis on the opinion of one researcher.
KEEPING THE CLIENT HAPPY
Good contact is not only taken as a sign of the researcher's dedication to the job, but is also a way in which any problems the buyer may have can be resolved. Managing this is a job the researcher has to develop and be comfortable with, as it is not helpful to the analytical process to constantly ask what the findings are.
PARTNERSHIP RELATIONSHIP
The relationship between the buyer and the supplier is much more important in the case of qualitative research than it is in quantitative research and therefore the location of the company is different. Therefore, the researcher implicitly becomes part of the research design (see Chapter 8) in a way that would be unthinkable in the case of quantitative research.
The nature and scope of
Quantitative data consists of internal production and sales data, externally purchased market size and structure data, and a whole variety of tracking and ad hoc quantitative market research studies. Quantitative market research data generally lacks insight because it is not analyzed in a holistic way.
COMPETING PARADIGMS
Market research started in the United States around the turn of the 20th century and possibly even earlier. Moreover, these early concerns of the founders of the Market Research Society have influenced thinking throughout Europe (through ESO-MAR) and most of the rest of the English-speaking world (through the former British colonies).
QUANTITATIVE DATA
Market research therefore adopted (or at least tried to) all the trappings of a full-fledged science and protected this idea through the IAS Code of Conduct. We will first look at the role of market analysis, then examine the importance of emerging "new data" and finally examine how external quantitative market research fits into this picture.
MARKET ANALYSIS
Sometimes what has happened is the result of some activity on the part of the company or its competitors; some-. The beauty of market analysis is in the eye of the beholder. As mentioned earlier in this chapter, there are many measures of the market.
THE EMERGING ‘NEW DATA’
This development must also be placed in the context of the general business culture, which welcomes the use of numbers to justify actions. Furthermore, the rate of change of the level of return could be used as an indicator of a sudden effect.
CHARACTERISTICS OF QUANTITATIVE MARKET RESEARCH DATA
The possibilities of this kind are many and it is one of the reasons that quantitative research is entering a new period of importance. However, this can be useful for tapping into market segments (assuming there really are such groups), but can fall flat when a company seeks to identify groups in order to target them.
THE TYPES OF QUANTITATIVE MARKET RESEARCH DATA
Furthermore, the original study design might have been different if this follow-up use had been envisaged. These include the nature and structure of the market which, if not included, may distort the view given in the study.
SUMMARY OF QUANTITATIVE RESEARCH
At the beginning of this chapter, the role of the Society for Marketing Research's code of conduct was mentioned, and it seems likely that this code now needs to be re-examined at a deeper philosophical level in order to restore certainty. While quantitative research is great at identifying macro aspects of a market or brand, it is ill-equipped to address the subtleties of modern marketing, in which brands are often personified.
Qualitative
The dominant paradigm of this era was the positive scientific one, and quantitative research is its manifestation in the market research world. This made qualitative research more suitable for aspects of branding work than quantitative research was.
THE ESSENTIAL CONFLICT BETWEEN QUALITATIVE AND QUANTITATIVE
This gave an impetus to the research industry in the UK, especially with respect. In fact, there seems to have been a backlash to what he did, halting (from a UK perspective) the development of qualitative research in the United States.
QUANTITATIVE RESEARCH AND QUALITATIVE RESEARCH ARE
This problem is indicated by the fact that qualitative researchers felt that they were not adequately represented by the main professional organization, MRS, and felt the lack of representation so strongly that they formed a separate organization, the Association of Qualitative Research Professionals, now AQR. Thus, even when qualitative research was at its peak, it was not fully embraced by the mainstream industry.
FUNDAMENTALLY DIFFERENT
What is needed is representation of different views, not a representative sample of people. The 'thing' therefore became the result of the sum of essences and above all their relationship.
THE CHALLENGES TO QUALITATIVE RESEARCH
This is why the samples are spread across demographic groups and across the country, not because these strata are intended to aid analysis (as would be the case with quantitative . 1995). Qualitative research is the only way to explore these matters and finds particular utility in studying brands and the advertising that supports and creates them.
FAILURES IN QUANTITATIVE RESEARCH
Of course, such a statement is anathema to those whose thinking derives from the scientific method, which believes in a god of objective truth. In the case of the quantitative market research industry, with all its historical concern and rigor, this is not true because no theory has been constructed.
THE DIFFICULTY OF PRODUCING A THEORY
They are intelligent, inquisitive and passionate about the truth and attest to the reality of the truth through their own belief interpretation of the evidence they have personally gathered. This is also why qualitative researchers should be left alone during analysis (see Chapter 9).
LOOKING FORWARD
But this very divide is at the heart of the divide between quantitative and qualitative research and the associated schism in the industry. Business cases are made and supported by numbers – the more explicit the information, the better – and qualitative research has to fight against these very strongly held beliefs.
Designing the research
Creating a good design is hindered by the generally poor quality of the research briefing from the end-user client. In addition to the different client stakeholders, the different groups involved in actual research must also be taken into account in the design.
WHAT A MARKET RESEARCH DESIGN IS
The design includes defining the purpose, establishing objectives, methodology, sample, research area or scope, incentive materials, logistical factors such as timing and costs, and the selection of the agency or researcher who will do the work. This includes the difficulty of devoting quality time to the briefing, and the difficulty of appreciating and prioritizing the diversity of perspectives from different research stakeholders.
WHO DOES THE DESIGN
This client may be very experienced and have realistic expectations of the research, in terms of cost, timing and usability. Depending on the nature of the client, the balance of involvement in the design will vary.
THE COMPONENTS OF A DESIGN OF RESEARCH
Such is the way of the world, that it is not uncommon for the researcher to be expected to know this telepathically. One of the reasons for this is that generally stimulus material is the province of another agency.
WHO HAS A STAKE IN THE DESIGN
But there are others working in the depths of the research agency whose interests and needs are largely neglected. Consideration should also be given to the discussion environment and the requirements for stimulus material (mentioned earlier in the chapter).
Managing the research
These include ensuring that the researcher has everything they need on time, access to the buyer and the end user's customers. The debrief must be managed carefully so that end-user clients do not end up unprepared to be presented with questionable findings.
HAVING SOME FORM OF PROCESS
The initial elements in the process are: being able to recognize that research is required and entering into a preliminary process where a research specification is agreed upon. Much depends on the status of the research function in the organization as to how effective it is at this (see Chapter 4).
THE ELEMENTS OF A PROCESS
However, this does not mean that it is a good process; in fact, it could be terrible. Of these three phases, the first (achieving the research specification) is the most difficult to define.
THE INITIAL STAGES: THE GENESIS OF THE RESEARCH
In general, this means checking the availability of the research supplier and pushing some of the buttons in terms of logistics. After determining that research is required, a document must be created that establishes the dimensions of the research.
MANAGING THE PROJECT THROUGH FIELDWORK
In many cases it makes sense to have the stimulus material ready so that it can be discussed at the research design stage with the researcher or agency. If the stimulus material is absolutely essential to the research, such as a concept, package, or advertisement, it is generally very helpful that the end-user client has actually seen it and formally agreed that it is what he or she expected.
TRANSFERRING THE INFORMATION FROM THE RESEARCHER TO THE
END-USER CLIENT
THE ACTUAL DEBRIEF
There can be problems with people arriving late, or tea or coffee arriving mid-discussion. It is good that you have gone through this before the debriefing begins.
POST DEBRIEF
Managing the results
These 'unsatisfactory reasons' may be because the purpose of the project has 'gone away', because the work has been commissioned for political purposes that may need to be used at some point in the future, or because it is seen to have failed. The value of the quality archives comes to the fore when the company carries out major strategic reviews.
HOW WAS IT FOR YOU?
The fact is that, as the end users see it, the results are lacking, and somehow this is usually seen as the researcher's fault. So it's clear that there are many reasons why a job can be considered a failure, and the majority of them are beyond the researcher's control.
INCORPORATION OF THE RESEARCH INTO THE KNOWLEDGE OF THE BUSINESS
One of the reasons for this is the boring nature of reports written as they are 'supposed' to be and the lack of adventure in proposing conclusions. In many cases, at the time of the debrief, there appears to be no reason why a report should be written.
Knowing the future
The process the company adopts will be colored by its expectations of the outcome. Management consultancies tend to be used when the company structure is expected to change and the "solution" will have a heavy financial component to it.
THINKING ABOUT A CONSUMER-LED FUTURE
The first stage is to get an idea of the factors operating in the market and how they may change in the near and distant future. Implementation of the strategy is then done through the normal agencies that the company uses.
TAKING CONTROL AND DETERMINING THE FUTURE
Market research is an important way in which this can be achieved, provided that the results of its various components are managed as a coherent whole. When this is done, market research and the function that manages it can develop an information climate that facilitates decision-making and aids innovation.
Conclusion
This is generally possible because people generally will not admit to being motivated by anything other than the rational good of the company. This is due to the increasing amount of information available from the company's systems that could be exploited by combining it with external quantitative data.
Appendix: The
Market Research Society Code of
This edition of the Code of Conduct has been agreed by The Market Research Society to come into force from July 1999. For the purposes of the Code, children and young people are defined as those under the age of 18.
PRINCIPLES
RULES
Conditions of Membership and Professional Responsibilities
All members may indicate, when necessary, that they belong to the appropriate category of professional body. Violations of these terms will be treated as violations of the Code and may be subject to disciplinary action.
ICC/ESOMAR Code of Marketing and Social Research Practice
