Chapter 1

Introduction and Early

Phases of Marketing
Research

Copyright 2010 Pearson Education, Inc. 1-1

 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

Copyright 2010 Pearson Education, Inc. 1-2
 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

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 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

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 Redefining Marketing Research

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
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 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

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 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

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 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.

Problem-Solving Research
Research undertaken to help solve specific marketing
problems. Examples: segmentation, product, pricing,
promotion, and distribution research.

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 A Classification of Marketing Research

Fig. 1.1
Marketing Research

Problem Problem-Solving
Identification Research Research

Market Potential Research Segmentation Research

Market Share Research Product Research
Market Characteristics Research
Pricing Research
Sales Analysis Research
Forecasting Research Promotion Research
Business Trends Research Distribution Research
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 Problem-Solving Research

Table 1.1

SEGMENTATION RESEARCH
Determine the basis of segmentation
Establish market potential and
responsiveness for various
PRODUCT RESEARCH
segments
Test concept
Select target markets
Determine optimal product design
Create lifestyle profiles:
demography, media, and Package tests
product image characteristics Product modification
Brand positioning and repositioning
Test marketing
Control score tests
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 Problem-Solving Research

Table 1.1 cont. PROMOTIONAL RESEARCH

Optimal promotional budget
0.00% APR
Sales promotion relationship
Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing
PRICING RESEARCH Evaluation of advertising effectiveness
Pricing policies Claim substantiation
Importance of price in brand selection
Product line pricing
Price elasticity of demand $ALE
Initiating and responding to price changes
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 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

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 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

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 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

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 The Role of Marketing Research

Fig. 1.2 Customer Groups

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

Marketing Managers

Market Segmentation
Target Market Selection
Marketing Programs
Performance & Control
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 Power Decisions Methodology
Fig. 1.3

Opportunity scan
Option generation
Solve Problem
Refine options
Decision
Client
Needs Find Seek Plan Act

Achieve Goal

Research Evaluate Market Advise

How We Clarify
Recommend Plan Assist
Decisions Analysis Interpret
Help Facilitate Research Execution

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 Marketing Research Suppliers & Services
Fig. 1.4

RESEARCH
INTERNAL SUPPLIERS
EXTERNAL

FULL SERVICE LIMITED SERVICE

Field Other
Syndicate Internet
Services Services
Services Services

Standardized Customized Focus Groups

Services Services Technical
and Qualitative and Analytical
Services Services
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Table 1.2 Top 50 U.S. Marketing Research Firms
U.S. Rank Organization Headquarters Website U.S. Global Non-U.S.
2007 2006

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

Westlake Village,
12 13 J.D. Power and Associates* 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
Opinion Research/
15 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

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Table 1.2 Top 50 U.S. Marketing Research Firms (Cont)
U.S. Rank Organization Headquarters Website U.S. Global Non-U.S.
2007 2006

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

Flake-Wilkerson Market
37 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

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Table 1.2 Top 50 U.S. Marketing Research Firms (Cont)
U.S. Rank Organization Headquarters Website U.S. Global Non-U.S.
2007 2006

27 34 Lieberman Research Group Great Neck, N.Y. liebermanresearch.com 30.1 30.1

ICR/Int'l Communications
28 27 Research Media, Pa. icrsurvey.com 28.8 29.7 3.0

Farmington Hills,
29 28 Morpace Inc. 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

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Table 1.2 Top 50 U.S. Marketing Research Firms (Cont)
U.S. Rank Organization Headquarters Website U.S. Global Non-U.S.
2007 2006

43 Compete Inc. Boston compete.com 14.9 14.9

44 45 Savitz Research Companies Dallas savitzresearch.com 14.8 14.8

Bloomfield Hills,
45 48 RDA Group Inc. Mich. rdagroup.com 13.7 16.8 18.5
Auburn Hills,
46 Gongos Research Inc. 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

RTi Market Research & Brand
49 50 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.

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 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.
Statistician/Data Processing Specialist: Serves as an expert on
theory and application of statistical techniques. Responsibilities
include experimental design, data processing, and analysis.

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 Selected Marketing Research Career Descriptions
Fig. 1.5 cont.
Research Director
Vice President of Marketing
Research Also part of senior
Part of companys top management management

team Heads the development

and execution of all
Directs companys entire market
research projects
research operation
Sets the goals & objectives of the
Assistant Director of Research
marketing research department
Administrative assistant to director
Supervises research staff members

Senior Project Manager

Responsible for design, implementation, & research
projects
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 Selected Marketing Research Career Descriptions

Fig. 1.5 cont.

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

Analyst Statistician/Data Processing

Handles details in execution of Serves as expert on theory and
project application on statistical techniques
Designs & pretests questionnaires Oversees experimental design, data
Conducts preliminary analysis of data processing, and analysis

Junior Analyst Fieldwork Director

Secondary data analysis Handles selection, training,
Edits and codes questionnaires supervision, and evaluation of
Conducts preliminary analysis of data interviewers and field workers
Copyright 2010 Pearson Education, Inc. 1-24
 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

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 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.

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 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

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 A Sample of Marketing Research Jobs

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 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.

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 Management Information Systems Vs. Decision
Support Systems

Fig. 1.6

MIS DSS

Structured Problems
Unstructured Problems
Use of Reports
Use of Models
Rigid Structure
User Friendly Interaction
Information Displaying
Adaptability
Restricted
Can Improve Decision
Can Improve Decision Making
Making by Using What if
by Clarifying Data
Analysis
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 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

Copyright 2010 Pearson Education, Inc. 1-31

 Marketing Research Associations Online
Domestic
AAPOR : American Association for Public Opinion Research
(www.aapor.org)
AMA : American Marketing Association (www.ama.org)
ARF : The Advertising Research Foundation
(www.amic.com/arf)
CASRO : The Council of American Survey Research
Organizations (www.casro.org)
MRA : Marketing Research Association (www.mra-net.org)
QRCA : Qualitative Research Consultants Association
(www.qrca.org)
RIC : Research Industry Coalition (www.researchindustry.org)
Copyright 2010 Pearson Education, Inc. 1-32
 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)
Copyright 2010 Pearson Education, Inc. 1-33
 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
Copyright 2010 Pearson Education, Inc. 1-34
 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
Copyright 2010 Pearson Education, Inc. 1-35
 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
Copyright 2010 Pearson Education, Inc. 1-36
Copyright 2010 Pearson Education, Inc. 1-37
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States of America.

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