Chapter 1

Introduction and Early Phases

of Market Research

2007 Prentice Hall

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

2007 Prentice Hall

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
2007 Prentice Hall

1-3

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

2007 Prentice Hall

1-4

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
2007 Prentice Hall

1-5

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.
2007 Prentice Hall

1-6

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

2007 Prentice Hall

1-7

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.
2007 Prentice Hall

1-8

A Classification of Marketing Research

Fig. 1.1

Marketing Research

Problem
Identification Research
Market Potential Research
Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research
2007 Prentice Hall

Problem-Solving
Research

Segmentation Research

Product Research
Pricing Research
Promotion Research
Distribution Research
1-9

Problem-Solving Research
Table 1.1
SEGMENTATION 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

PRODUCT RESEARCH
Test concept
Determine optimal product design
Package tests
Product modification
Brand positioning and repositioning

Test marketing
Control score tests
2007 Prentice Hall

1-10

Problem-Solving Research
Table 1.1 cont.

0.00%

APR

PROMOTIONAL RESEARCH
Optimal promotional budget

Sales promotion relationship

Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing

PRICING RESEARCH
Pricing policies

Evaluation of advertising effectiveness

Claim substantiation

Importance of price in brand selection

Product line pricing
Price elasticity of demand

$ALE

Initiating and responding to price changes

2007 Prentice Hall

1-11

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

2007 Prentice Hall

1-12

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

2007 Prentice Hall

1-13

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

2007 Prentice Hall

1-14

The Role of Marketing Research

Fig. 1.2

Customer Groups
Consumers
Employees
Shareholders
Suppliers

Controllable
Marketing
Variables

Marketing
Research

Product
Pricing
Promotion
Distribution
Assessing
Information
Needs

Providing
Information

Marketing
Decision
Making

Uncontrollable
Environmental
Factors
Economy
Technology
Laws &
Regulations
Social & Cultural
Factors
Political Factors

Marketing Managers
Market Segmentation
Target Market Selection
Marketing Programs
Performance & Control
2007 Prentice Hall

1-15

Power Decisions Methodology

Fig. 1.3
Opportunity scan

Solve Problem

Client
Needs

Option generation
Refine options
Decision

Find

Seek

Plan

Act

Achieve Goal

How We
Help

2007 Prentice Hall

Research Evaluate
Clarify
Decisions Analysis Interpret
Facilitate

Advise
Market
Assist
Recommend Plan
Research Execution

1-16

Organizational Chart for VNU

Fig. 1.4

Executive Board
Corporate Staff

Marketing
Information
ACNielsen
VNU Advisory
Services
BASES
Claritas
Spectra
Market Decisions

2007 Prentice Hall

Media Measurement
& Information

Business
Information

Nielsen Media Research VNU Business

Nielsen/Net Ratings
Publications
Nielsen Film
VNU emedia &
Entertainment
Information Marketing
Nielsen Home
VNU Expositions
Entertainment
VNU Exhibitions Europe
Nielsen Music
Nielsen Book
Nielsen Entertainment Intel
IMS
PERO/HIC
Scarborough
SRDS

Directories
Golden Pages
Gouden Gids
Paginas Amarelas
Paglni Auril
Promedia
Telkom Directory
Verizon Puerto Rico

1-17

Marketing Research Suppliers & Services

Fig. 1.5

RESEARCH
SUPPLIERS

INTERNAL

FULL SERVICE
Syndicate
Services
Standardized
Services

2007 Prentice Hall

Internet
Services
Customized
Services

EXTERNAL

LIMITED SERVICE
Branded
Products
and Services

Field
Services
Coding and
Data Entry
Services

Analytical
Services

Data
Analysis
Services
1-18

Top 50 U.S. Marketing Research Firms

Table 1.2
U.S.

Rank

2004 2003
1
1

Organization

Headquarters

Website

($, in millions)

($, in millions)

revenue

VNU Inc.

New York

www.vnu.com

$1,794.4

$3,429.2

47.7%

IMS Health Inc.

Fairfield, Conn.

www.imshealth.com

571.0

$1,569.0

63.6

Westat Inc.

Rockville, Md.

www.westat.com

397.8

397.8

TNS U.S.

New York

www.tns-global.com

396.0

1,732.7

77.2

Information Resources Inc.

Chicago

www.infores.com

379.6

572.8

33.6

The Kantar Group

Fairfield, Conn.

www.kantargroup.com

365.7*

1,136.3*

67.8*

Arbitron Inc.

New York

www.arbitron.com

284.7

296.6

4.0

NOP World US

New York

www.nopworld.com

213

408.5

47.9

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

2007 Prentice Hall

1-19

Top 50 U.S. Marketing Research Firms

(Cont)

Table 1.2
U.S.

Rank Organization

2004 2003
17
17

Headquarters

Website

($, in millions)

$, in millions)

revenue

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

2007 Prentice Hall

1-20

Top 50 U.S. Marketing Research Firms

(Cont)

Table 1.2

U.S. Rank Organization

2004 2003
33
27
Walker Information Inc.

Headquarters

Website

($, in millions)

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

$6,291.0

$13,307.7

52.7%

656.6

$737.7

11.0%

$6,947.6

$14,045.4

50.5%

Total
All other (138 CASRO companies not included in the Top 50) 3
Total (188 companies)

$, in millions)

revenue

*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

2007 Prentice Hall

1-21

Selected Marketing Research

Career Descriptions
Fig. 1.6
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.
2007 Prentice Hall

1-22

Selected Marketing Research Career

Descriptions
Fig. 1.6 cont.

Vice President of Marketing

Research
Part of companys top
management team
Directs companys entire market
research operation

Research Director
Also part of senior
management
Heads the
development and
execution of all
research projects

Sets the goals & objectives of the

marketing research department

Assistant Director of Research

Administrative assistant to director
Supervises research staff members

Senior Project Manager

Responsible for design, implementation, &

research projects
2007 Prentice Hall

1-23

Selected Marketing Research

Career
Descriptions
Fig. 1.6 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

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
2007 Prentice Hall

Statistician/Data Processing

Serves as expert on theory and

application on statistical techniques
Oversees experimental design, data
processing, and analysis

Fieldwork Director

Handles selection, training,

supervision, and evaluation of
interviewers and field workers
1-24

Marketing Research Suppliers & Services

Internal suppliers
External suppliers

2007 Prentice Hall

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
1-25

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.
2007 Prentice Hall

1-26

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.

2007 Prentice Hall

1-27

A Sample of Marketing Research Jobs

2007 Prentice Hall

1-28

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.

2007 Prentice Hall

1-29

Management Information Systems

Vs. Decision Support Systems
Fig. 1.7

DSS

MIS
Structured Problems
Use of Reports
Rigid Structure
Information Displaying
Restricted
Can Improve Decision Making
by Clarifying Data

2007 Prentice Hall

Unstructured Problems
Use of Models
User Friendly Interaction

Adaptability
Can Improve Decision
Making by Using What if

Analysis
1-30

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.
2007 Prentice Hall

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)

2007 Prentice Hall

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)

2007 Prentice Hall

1-33