Chapter Outline

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

Chapter Outline (cont.)

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
18) Acronyms

RIP 1.1

The American Marketing Association

Redefines Marketing Research

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
Improve understanding of
marketing as a process

Fig 1.1

The Role of Marketing Research

Customer Groups

Consumers
Employees
Shareholders
Suppliers
Uncontrollable
Environmental
Factors

Controllable
Marketing
Variables

Marketing
Research

Product
Pricing

Economy
Technology
Laws & Regulation

Promotion
Distribution

Assessing
Information
Needs

Providing
Information

Marketing
Decision
Making

Marketing Managers
Market Segmentation
Target Market Selection
Marketing Programs
Performance & Control

Social & Cultural

Factors
Political Factors

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

Fig 1.2

A Classification of Marketing Research

Marketing Research

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
Distribution Research

Table 1.1

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

Test concept
Determine optimal product design
Package tests
Product modification
Brand positioning and repositioning
Test marketing
Control score tests

Table 1.1 Contd.

PRICING RESEARCH

Importance of price in brand selection

Pricing policies

$ALE

Product line pricing

Price elasticity of demand
Initiating and responding to price changes

PROMOTIONAL RESEARCH

0.00% APR

Optimal promotional budget

Sales promotion relationship
Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing
Claim substantiation
Evaluation of advertising effectiveness

Table 1.1 Contd.

Determine
Types of distribution
Attitudes of Channel members
Intensity of wholesale & resale coverage
Channel margins
Location of retail and wholesale outlets

Fig 1.3

Management Information Systems

Versus Decision Support Systems
MIS

DSS
problems

Structured Problems

Unstructured Problems

Use of Reports

Use of Models

Rigid Structure

User Friendly Interaction

Information Displaying Restricted

Adaptability

Can Improve Decision Making

Can Improve Decision Making

by Clarifying Data

by Using What if Analysis

Figure 1.4

RESARCH
SUPPLIERS

INTERNAL

FULL SERVICE
Syndicate
Services
Standardized
Services

Internet
Services
Customiz
ed
Services

EXTERNAL

LIMITED SERVICE
Branded
Products
and Services

Field
Services
Coding and
Data Entry
Services

Analytical
Services

Data
Analysis
Services

RIP 1.2

Organization of Marketing
Research at Oscar Mayer

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
Serves as Source of
Marketing Information

RIP 1.3

Rank
1997
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Top 50 Marketing
Research Organizations
Pe rce nt and
Total re se arch
re ve nue s from
Re venue s from
re ve nue s*
outside U.S.
outs ide U.S.
1996 Organization
(millions)
(millions)
(millions )
1 AC Niels en Corp.
$1,391.6
77.7%
1081.6
2 Cognizant Corp.
1,339.1
49.2
659.1
3 Information Res ources Inc.
456.3
19.6
89.6
6 Wes tat Inc.
182.0
0
0
8 NFO Worldwide Inc.
190.0***
21.4
35.8
4 the Arbitron Co.
165.2
0
0
7 Maritz Marketing Res earch Inc.
146.0
20
29.2
9 The Kantar Group Ltd.
127.1
20.2
25.7
10 The NP D Group Inc.
110.3
18.3
20.2
11 Market facts Inc.
100.1
7
7
5 Pharm. Marketing Services Inc.
91.6
46.0
42.1
12 Audits & Surveys Worldwide Inc.
68.9
43.5
30
14 BASES Worldwide
57.6
19.7
11.4
13 The M/A/R/C Group Inc.
57.3
1.5
0.1
15 Opinion Res earch Corp.
53.9
32.7
17.6
16 SOFRES Inters earch
53.0
15
8.5

RIP 1.3 Contd.

19
20
21
22
23
24
25
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36

22
19
23
17
21
38
26
22
19
23
17
21
38
26
28
25
27
24
29
34
33
30
31
39
32

Burke Inc.
Macro International Inc.
Roper Starch Worldwide Inc.
Abt Associates Inc.
Elrick & Lavidge
IntelliQuest Inc.
Wirthlin Worldwide
Burke Inc.
Macro International Inc.
Roper Starch Worldwide Inc.
Abt Associates Inc.
Elrick & Lavidge
IntelliQuest Inc.
Wirthlin Worldwide
Total Research Corp.
MORPACE International
C&R Research Services Inc.
Walker Information
Lieberman Research Worldwide
Diagnostic Research International Inc.
IPSOS-ASI Inc.
Yankelovich Partners Inc.
Custom Research Inc.
Harris Black International Ltd.
Market Strategies Inc.

43.8
42.9
40.0
39.3
37.1
36.5
35.5
43.8
42.9
40.0
39.3
37.1
36.5
35.5
33.1
31.2
31.1
30.9
28.6
26.7
26.7
26.4
25.8
25.7
25.2

22.8
38.5
17.8
0
5.7
29
16
22.8
38.5
17.8
0
5.7
29
16
27.2
17.9
0
21.8
13.3
3.1
0
0
0
7.4
1.6

10
16.5
7.1
0
2.1
10.6
5.7
10
16.5
7.1
0
2.1
10.6
5.7
9
5.6
0
6.7
0
0.8
0
0
0
1.9
0.4

RIP 1.3 Contd.

35 39 Harris Black International Ltd.
36 32 Market Strategies Inc.
37 37 ICR-Int'l Communications Research
38 36 Data Development Corp.
39 35 Chilton Research Services
40 40 Market Decisions
41 -- National Research Corp.
42 43 Response Analysis Corp.
43 -- Marketing and Planning Systems
44 46 MATRIXX Marketing Research
45 41 RDA Group Inc.
46 45 Guideline Research Corp.
47 48 Directions Research Inc.
48 44 Conway/Milliken & Associates
49 49 TVG Inc.
50 50 Savitz Research Center Inc.

25.7
7.4
25.2
1.6
22.3
0
22.2
8.7
21.5
0
18.2
0
16.3
0
15.9
0
14.2
6
14.1
41.1
14.0
30
13.3
2.3
13.2
0
13.0
0
12.3
0
12.0
0
$5,479.7 39.30%
Subtotal, Top 50
535.7
All other (124 CASRO member companies not included in Top
50)****

1.9
0.4
0
1.9
0
0
0
0
0.9
5.8
4.2
0.3
0
0
0
0
$2,153.20

RIP 1.4

Full Services Versus Limited Service

Marketing Research Firms

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 fullservice company, has replaced many in-house departments for endusers who have cut their in-house staff because of a downsizing
trend. An example would be Ocean Spray or Quaker Oats which
have cut marketing staff and subcontract all marketing research to
companies such as Burke and Maritz Marketing Research.

RIP 1.5 Contd.

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.

Fig 1.5

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.

Selected Marketing Research

Career Descriptions
Vice President of Marketing
Research

Part of companys top management

team

Directs companys 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

Senior
Analyst
Fig 1.5
Contd.

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

Statistician/Data Processing
Serves as expert on theory and
application on statistical techniques
Oversees experimental design, data
processing, and analysis

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

RIP 1.5

A Sample of
Marketing
Research Jobs

RIP 1.6

Marketing Research at
Marriott Corporation

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, HealthCare, 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 is done at the
corporate level through the Corporate Marketing
Services (CMS). CMSs goals include providing
the management of the different areas of Marriott
with the information they need to better
understand the market and the customer.

RIP 1.6 Contd.

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 better define 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.
Marketing Research

RIP 1.7

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.research industry.org)

RIP 1.7 Contd.

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)