Redefining Marketing Research

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

The function that links the consumer, thecustomer, and public to the marketerthrough INFORMATION

Used to identify and define market opportunities and problems

Generate, refine, and evaluate marketing performance

Monitor marketing performance

Improve understanding of marketing as a process

Redefining Marketing Research

Definition of Marketing ResearchMarketing research is the systematic and objective

identification collection analysis dissemination and use of information

For the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing.

Market Research• Specifies the information necessary to address these

issues

• Manages and implements the data collection process

• Analyzes the results

• Communicates the findings and their implications

• Helps managers use this information to make decisions

Classification of Marketing ResearchProblem-Identification Research• Research undertaken to help identify problems which are

not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research.

Problem-Solving Research• Research undertaken to help solve specific marketing

problems. Examples: segmentation, product, pricing, promotion, and distribution research.

A Classification of Marketing Research

Marketing Research

Problem Identification Research

Problem-Solving Research

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

Segmentation ResearchProduct ResearchPricing ResearchPromotion ResearchDistribution Research

Problem-Solving Research

Determine the basis of segmentation

Establish market potential and responsiveness for varioussegments

Select target markets Create lifestyle profiles:

demography, media, and product image characteristics

SEGMENTATION RESEARCH

Test concept Determine optimal product

design Package tests Product modification Brand positioning and

repositioning Test marketing Control score tests

PRODUCT RESEARCH

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

Problem-Solving ResearchTable 1.1 cont.

DISTRIBUTION RESEARCH

Determine…Types of distributionAttitudes of channel members Intensity of wholesale coverageChannel marginsLocation of retail and wholesale outlets

Marketing Research ProcessStep 1 : Problem Definition

Step 2 : Development of an Approach to the Problem

Step 3 : Research Design Formulation

Step 4 : Fieldwork or Data Collection

Step 5 : Data Preparation and Analysis

Step 6 : Report Preparation and Presentation

Marketing Research ProcessStep 1: Defining the Problem

Step 2: Developing an Approach to the Problem

Step 3: Formulating a Research Design

Step 4: Doing Field Work or Collecting Data

Step 5: Preparing and Analyzing Data

Step 6: Preparing and Presenting the Report

The Role of Marketing Research

ControllableMarketing

• Product• Pricing• Promotion• Distribution

VariablesMarketing Research

MarketingDecisionMaking

ProvidingInformation

AssessingInformationNeeds

Marketing Managers

• Market Segmentation

• Performance & Control

•Target Market Selection• Marketing Programs

UncontrollableEnvironmentalFactors

• Economy• Technology• Laws &

Regulations• Social &

Cultural Factors

• Political Factors

• Consumers• Employees• Shareholders• Suppliers

ClientNeeds Find Seek Plan Act

Solve Problem

Achieve Goal

How WeHelp

ClarifyDecisions

Research

Analysis

EvaluateInterpretFacilitate

RecommendMarketPlanResearch

AdviseAssistExecution

Opportunity scanOption generation

Refine options

Decision

Marketing Research Suppliers & Services

LIMITED SERVICEBrandedProductsand Services

DataAnalysisServices

AnalyticalServices

Coding and Data Entry Services

Field Services

FULL SERVICESyndicateServices

StandardizedServices

CustomizedServices

InternetServices

RESEARCHSUPPLIERS EXTERNALINTERNAL

Fig. 1.5

U.S. Rank Organization Headquarters Website ($, in millions)($, in millions)revenue 2004 2003 1 1 VNU Inc. New York www.vnu.com $1,794.4 $3,429.2 47.7%

2 2 IMS Health Inc. Fairfield, Conn. www.imshealth.com 571.0 $1,569.0 63.6

3 4 Westat Inc. Rockville, Md. www.westat.com 397.8 397.8 — 4 5 TNS U.S. New York www.tns-global.com 396.0 1,732.7 77.2

5 3 Information Resources Inc. Chicago www.infores.com 379.6 572.8 33.6

6 6 The Kantar Group Fairfield, Conn. www.kantargroup.com 365.7* 1,136.3* 67.8*

7 7 Arbitron Inc. New York www.arbitron.com 284.7 296.6 4.0

8 8 NOP World US New York www.nopworld.com 213 408.5 47.9

9 9 Ipsos New York www.Ipsos-na.com 193.9 752.8 74.2

10 10 Synovate Chicago www.synovate.com 193.5 499.3 61.3

11 — Harris Interactive Inc. Rochester, N.Y. www.harrisinteractive.com 154.8 208.9 25.9

— 13 Harris Interactive Inc. Rochester, N.Y. www.harrisinteractive.com 116.7 155.4 24.9

— 20 Wirthin Worldwide McLean, Va. www.harrisinteractive.com 38.1 53.5 28.8

12 11 Maritz Research Fenton, Mo. www.maritzresearch.com 136.6 185.8 26.2

13 12 J.D. Power and Associates Westlake Village, Calif. www.jdpower.com 133.5 167.6 20.4

14 14 The NPD Group Inc. Port Washington, N.Y. www.npd.com 110.5 139.2 20.6

15 16 GfK Group USA Nuremberg, Germany www.gfk.com 93.0 834.6 88.9

16 15 Opinion Research Corp. Princeton, N.J. www.opinionresearch.com 91.5 147.5 38.3

Table 1.2Top 50 U.S. Marketing Research Firms

17 17 Lieberman Research Worldwide Los Angeles www.lrwonline.com 67.2 77.7 13.5

18 18 Abt Associates Inc. Cambridge, Mass. www.abtassociates.com 41.5 41.5 —

19 21 Market Strategies Inc. Livonia, Mich. www.marketstrategies.com 37.9 39.5 4.1

20 22 Burke Inc. Cincinnati www.burke.com 37.1 43.4 14.5

21 30 comScore Networks Inc. Reston, Va. www.comscore.com 34.9 34.9 —

22 24 MORPACE International Inc. Farmington Hills, Mich. www.morpace.com 31.1 34.5 9.9

23 25 Knowledge Networks Inc. Menlo Park, Calif. www.knowledgenetworks.com 29.8 29.8 —

23 34 OTX Research Los Angeles www.otxresearch.com 29.8 29.8 —

25 23 ICR/Int'l Communications Research Media, Pa. www.icrsurvey.com 29.0 29.4 1.4

26 36 Directions Research Inc. Cincinnati www.directionsrsch.com 27.3 27.3 —

27 28 National Research Corp. Lincoln, Neb. www.nationalresearch.com 26.7 29.7 10.1

28 32 Marketing Research Services Inc. Cincinnati www.mrsi.com 25.4 25.4 —

29 29 Lieberman Research Group Great Neck, N.Y. www.liebermanresearch.com 25.1 25.5 1.6

30 33 Peryam & Knoll Research Corp. Chicago www.pk-research.com 22.5 22.7 0.1

31 — National Analysts Inc. Philadelphia www.nationalanalysts.com 22.3 22.3 —

32 — Public Opinion Strategies LLC Alexandria, VA www.pos.org 21.2 21.2 —

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

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

Table 1.2

33 27 Walker Information Inc. Indianapolis www.walkerinfo.com 20.4 23.8 14.3

34 39 The PreTesting Co. Inc. Tenafly, N.J. www.pretesting.com 19.8 20.4 2.9

35 19 C&R Research Services Inc. Chicago www.crresearch.com 19.7 19.7 —

36 35 Flake-Wilkerson Market Insights Little Rock, Ark. www.mktinsights.com 18.8 18.8 —

37 37 Data Development Worldwide New York www.datadw.com 18.3 20.7 11.6

38 41 Schulman, Ronca & Bucuvalas Inc. New York www.srbi.com 17.2 17.2 —

39 45 Cheskin Redwood Shores, Calif. www.cheskin.com 16.5 19.0 13.2

40 38 RDA Group Inc. Bloomfield Hills, Mich. www.rdagroup.com 15.4 17.0 9.4

41 47 Marketing Analysts Inc. Charleston, S.C. www.marketinganalysts.com 15.2 15.6 2.6

42 46 Market Probe Inc. Milwaukee www.marketprobe.com 14.1 24.6 42.7

43 44 Savitz Research Cos. Dallas www.savitzresearch.com 14.0 14.0 —

44 42 The Marketing Workshop Inc. Norcross, Ga. www.mwshop.com 13.9 13.9 —

45 48 Ronin Corp. Princeton, N.J. www.ronin.com 13.5 13.9 2.9

46 49 MarketVision Research Inc. Cincinnati www.marketvisionresearch.com 11.8 11.8 —

47 — RTI-DFD Inc. Stanfordd, Conn. www.rti-dfd.com 11.5 11.5 —

48 — Q Research Solutions Inc. Old Bridge, N.J. www.qresearchsolutions.com 11.2 11.2 —

49 50 Data Recognition Corp. Maple Grove, Minn. www.datarecognitioncorp.com 10.8 10.8 —

50 — Phoenix Marketing International Rhinebeck, N.Y. www.phoenixmi.com 10.6 10.6 —

Total $6,291.0 $13,307.7 52.7%

All other (138 CASRO companies not included in the Top 50)3 656.6 $737.7 11.0%

Total (188 companies) $6,947.6 $14,045.4 50.5%

*Estimated by Top 50 1U.S. and worldwide revenue may include nonresearch activities for some companies that are significantly higher. See individual company profiles for details. 2Rate of growth from year to year has been adjusted so as not to includer

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

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

Selected Marketing ResearchCareer 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. 1.6

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 membersSenior Project Manager

• Responsible for design, implementation, & research projects

Fig. 1.6 cont.

Analyst• Handles details in execution of

project• Designs & pretests questionnaires• Conducts preliminary analysis of

dataJunior 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. 1.6 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

Marketing Research Suppliers & Services

• Internal suppliers • External suppliers

• Full-service suppliers • Syndicated services• Standardized services• Customized services• Internet services

• Limited-service suppliers • Field services• Coding and data entry services • Analytical services • Data analysis services• Branded marketing research products

Criteria for Selecting a Research Supplier

What is the reputation of the supplier? Do they complete projects on schedule? Are they known for maintaining ethical standards? Are they flexible? Are their research projects of high quality? What kind and how much experience does the supplier

have? Has the firm had experience with projects similar to this one?

Do the supplier's personnel have both technical and non-technical expertise?

Can they communicate well with the client?

Competitive bids should be compared on the basis of quality as well as price.

Careers in Marketing Research• Career opportunities are available with marketing research

firms (e.g., AC Nielsen, Burke)

• Careers in business and non-business firms and agencies with in-house marketing research departments (e.g., Procter & Gamble, Coca-Cola, the Federal Trade Commission, United States Census Bureau)

• Advertising agencies (e.g., BBDO International, Ogilvy & Mather, J. Walter Thompson)

• Positions: VP of marketing research, research director/assistant director, project manager, field work director, statistician/data processing specialist, senior/junior analyst, and supervisor.

A Sample of Marketing Research Jobs

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.

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

DSSMIS

Structured Problems

Use of Reports

Rigid Structure

Information Displaying

Restricted

Can Improve Decision Making

by Clarifying Data

Fig. 1.7

The Department Store ProjectThe 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.

DomesticAAPOR : 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

InternationalESOMAR: 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