Chapter One: Introduction to Marketing Research

1. Chapter One: Introduction to Marketing Research Chapter One Introduction to Marketing Research

2. Figure 1.1 Introduction to Marketing Research: An Overview Figure 1.1 Introduction to Marketing Research: An Overview Opening Vignette Definition of Marketing Research Fig 1.2 A Classification of Marketing Research Focus on Elrick & Lavidge Table 1.1 Internet Applications Fig 1.3 Marketing Research Process Fig 1.4 The Role of Marketing Research in Decision Making Fig 1.5 Application to Contemporary Issues Ethics TQM International Technology

3. Figure 1.1 Introduction to Marketing Research: An Overview Continued Figure 1.1 Introduction to Marketing Research: An Overview(cont.) Opening Vignette Marketing Research Industry Fig 1.6 Table 1.2 Selecting a Research Supplier Focus on Elrick & Lavidge Internet Applications Careers in Marketing Research Fig 1.7 The Role of Marketing Research in MIS and DSS Figs 1.8 and 1.9 Application to Contemporary Issues TQM International Technology Ethics

4. Figure 1.2Defining Marketing Research Figure 1.2 Defining Marketing Research Identification of Information Needed Identifying and Solving Marketing Problems Collection of Data Analysis of Data Dissemination of Results

5. Figure 1.3 A Classification of Marketing Research Figure 1.3 A Classification of Marketing Research Marketing Research Problem Identification Research Problem Solving Research • Market Potential Research • Market Share Research • Image Research • Market Characteristics Research • Forecasting Research • Business Trends Research • Segmentation Research • Product Research • Pricing Research • Promotion Research • Distribution Research

6. Why Study Marketing Research? • Marketing Research: Systematic and objective planning, gathering, recording, and analyzing of information to enhance the decision making of marketing managers. • Marketing: Tool used by managers to satisfy consumer desires. The AMA defines marketing as “the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.” • Marketing Concept: Management philosophy stating that to satisfy organizational objectives, the wants and needs of target markets must be determined so that products can be created to satisfy those desires better than competitors do.

7. Who Does Marketing Research?Applied versus Basic Research • Research: Systematic and objective investigation of a subject or problem to discover relevant information or principles. • Basic research: Provides information about a phenomenon or tests a theory or hypothesis (does not solve a specific problem). • Applied research: Problem-specific research that focuses on helping managers resolve specific problems.

8. Top 10 Marketing Research Companies • ACNielsen Corp. - $1,577.0 million • IMS Health Inc. - $1,131.2 million • Information Resources Inc. - $531.9 million • VNU Inc. - $526.9 million • NFO WorldGroup Inc. - $470.5 million • The Kantar Group Ltd. - $270.0 million • Westat Inc. - $264.4 million • Arbitron Inc. - $206.8 million • Market Facts Inc. - $190.3 million • Martiz Marketing Research Inc. - $172.0 million

9. Personal Computer Capabilities • Computer-aided personal interviewing • Integrated survey packaging • Adaptive survey packages • Fast tabulations • Online panel/databases • Automated fieldwork administration • Online coding/data entry • Online surveying • User-friendly analysis software • Improved presentation of results

10. Marketing Research Companies • Syndicated Services: Full-service agencies which routinely collect information and report their findings to several clients or companies that subscribe to their service; data is not usually problem specific. • StandardizedResearch Services: Examines a particular aspect of the market in a unique way and uses a standard research method for different clients, allowing for comparisons between studies and across other evaluative standards. • Custom Houses: “Ad hoc services” that tailor their studies to the client’s needs.

11. Marketing Research Companies – cont’d • Independent Consultants: Offer expert knowledge and skills in specialized subjects. • Field Services: Collect data via interviews in the field. (A “field” is a place where information is collected.) • Coding and Data Entry Services: Edit collected surveys from respondents and code the responses. • Tabulation Houses: Quantitative specialists which perform statistical analyses and turn raw data into information that managers can use.

12. Who Uses Marketing Research? • Company lacking information about its markets. • AMA study revealed the average marketing research budget was $1.9 million for marketing research departments. • Consumer and industrial manufacturers, advertising agencies, and retailers/wholesalers spend about 1.2% of sales on marketing research. Financial services, publishers/broadcasters, health services, and utilities spend about 0.6%.

13. Percentage of Companies with Formal Marketing Research Department • Retailing/Wholesaling - 91 • Manufacturers of Consumer Products - 89 • Publishing and Broadcasting - 86 • Nonprofit Institutions - 85 • Advertising Agencies - 79 • Utilities - 79 • Financial Services - 76 • Manufacturers of Industrial Products - 66 • Health Services - 43

14. The Marketing Manager • Marketing Manager: Responsible for making the decisions that will help the company achieve its objectives in its target markets. • Marketing Management: The analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives. • The Decision-Making Process: Recognize the problem or opportunity, define the problem or opportunity, search for feasible courses of action, evaluate the options and select the optimal course, implement the plan, and evaluate the results.

15. Do Marketing Researchers Havean Ethical Responsibility? • Ethics: General nature of morals and of specific moral choices: moral philosophy and the rules or standards governing the conduct of the members of a profession. • Business ethics:“Moral principles and standards that guide behavior in the world of business.” • Social responsibility: Obligation a business assumes toward society. • Economic responsibilities: Produce goods and services society needs and wants at a price that can perpetuate the business and satisfy its obligations to investors.

16. Do Marketing Researchers Havean Ethical Responsibility? – cont’d • Legal responsibilities: Laws that businesses must obey. • Ethical responsibilities: Behaviors or activities expected of business by society. • Voluntary responsibilities: Behaviors and activities society desires and business values dictate. • CASRO:Council of American Survey Research Organizations – based in the United States. National trade association for commercial research firms. 170 member firms from United States. • ESOMAR:European Society for Opinion and Marketing Research - based in Amsterdam, Netherlands. Society of over 4,000 individual members in 100 countries.

17. DECISION TIME! How vital do you think business ethics and social responsibility are to companies today? What responsibilities do you believe marketing providers have to be ethical and socially responsible? What if such behavior hurts company profits?

18. Training for Jobs in Marketing Research • Marketing research courses at universities and training institutes • Internships with research organizations • Cooperative education with research organizations • Working in some capacity with marketing departments within businesses

19. What Job Opportunities Exist in Marketing Research? • Vice President: Senior position, responsible for all marketing research activities and establishing goals for the research group. • Director: Following the vice president, the senior position within the research organization. Has overall responsibility for the creation and implementation of all marketing research projects. • Assistant Director: Person directly behind the director in the chain of command within the research organization. Supervises specific research projects. • Senior Analyst: Works closely with others in planning and executing research projects. Also writes the final report covering the research effort.

20. What Job Opportunities Exist in Marketing Research? – cont’d • Statistician: Expert in statistical procedures and works on questionnaire design, sampling, and statistical analyses. • Analyst: Closely supervised by the senior analyst and often does much of the work associated with designing and supervising the research studies. • Junior Analyst: Works closely with analysts, doing routine tasks such as editing and coding questionnaires, running simple statistical calculations, and performing basic library research. • Field Work Director: Responsible for training, supervising, and hiring interviewers “in the field.”

21. What Job Opportunities Exist in Marketing Research? – cont’d • Librarian: Responsible for building and maintaining a reference library for use by research department staff. • Clerical Supervisor: Oversees the handling and processing of statistical information and prepares work schedules. • Full-Time Interviewers: Although very few companies employ them, full-time interviewers tend to spend the bulk of their time conducting personal interviews. • Tabulators and Clerical Help: Keep the office running by handling the daily routine work of the department, such as tabulating, filing, and keying.

22. Figure 1.4 The Marketing Research Process Figure 1.4 The 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

23. Figure 1.5 The Role of Marketing Research in Marketing Decision Making Figure 1.5 The Role of Marketing Research in Marketing Decision Making • Uncontrollable Environmental Factors • Economy • Technology • Competition • Laws and Regulation • Social and Cultural Factors • Political Factors • Customer Groups • Consumers • Employees • Channel Members • Suppliers • Controllable Marketing Variables • Product • Pricing • Promotion • Distribution Marketing Research Providing Information Assessing Information Needs • Marketing Decision • Making • Marketing Managers • Market Segmentation •Marketing Programs • Target Market Selection •Performance and Control

24. Figure 1.6 Marketing Research Industry: Supplier and Services Figure 1.6 Marketing Research Industry: Supplier and Services Research Suppliers External Internal Full Service Limited Service Syndicated Services Internet Services Field Services Other Services Customized Services

25. Figure 1.7 A Sample of Marketing Research Jobs Figure 1.7 A Sample of Marketing Research Jobs

26. Figure 1.8 The Development of MIS and DSS Figure 1.8 The Development of MIS and DSS Internal Billing, Production, and Other Records External Market Information Marketing Information Systems + = Decision Support Systems Expert Systems

27. Figure 1.9 Marketing Information Systems (MIS) vs. Decision Support Systems (DSS) Figure 1.9 Marketing Information Systems (MIS) vs. Decision Support Systems (DSS) • MIS • Structured problems • Use of reports • Information displaying restricted • Can improve decision making by clarifying new data • DSS • Unstructured problems • Use of models • Adaptability • Can improve decision making by using “what if” analysis

28. Figure 1.10 Stakeholders in Marketing Research: An Ethical Perspective Figure 1.10 Stakeholders in Marketing Research: An Ethical Perspective Client Marketing Researcher Public Respondents

29. Table 1.1 Problem Solving Research

30. Table 1.1 Problem Solving Research (Cont.)

31. Table 1.1 Problem Solving Research (Cont.)

32. Table 1.2 Top 25 Global Research Organizations