Naresha Malothra Marekting Research Chapter 1

8/11/2019 Naresha Malothra Marekting Research Chapter 1

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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


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9) Careers in Marketing Research

10) Marketing Research Process11) The Department Store Patronage Project

12) International Marketing Research

13) Ethics in Marketing Research

14) Internet and Computer Applications

15) Focus on Burke16) Summary

17) Key Terms and Concepts

18) Acronyms

Chapter Outline (cont.)


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The American Marketing AssociationRedefines Marketing Research

RIP 1.1

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 marketingperformance

Improve understanding of

marketing as a process


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Customer Groups

Marketing Managers

Consumers

Employees Shareholders

Suppliers

Controllable

Marketing

Variables

Uncontrollable

Environmental

Factors

MarketingDecision

Making

ProvidingInformation

AssessingInformation

Needs

MarketingResearch

Market Segmentation

Target Market Selection

Marketing ProgramsPerformance & Control

The Role of Marketing ResearchFig 1.1

EconomyTechnology

Laws & Regulation

Social & CulturalFactors

Political Factors

Product

Pricing

Promotion

Distribution


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Specifies the information

necessary to address theseissues

Manages and implements the

data collection processAnalyzes the results

Communicates the findings

and their implications

Market Research


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Marketing Research

A Classification of Marketing ResearchFig 1.2

ProblemIdentification Research

Market potential research

Market share researchMarket characteristics research

Sales analysis researchForecasting research

Business trends research

Problem SolvingResearch

Segmentation ResearchProduct Research

Promotion Research

Distribution Research


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Problem Solving ResearchTable 1.1

Test concept

Determine optimal product design

Package tests

Product modification

Brand positioning and repositioning

Test marketing

Control score tests

Determine the basis of segmentation

Establish market potential andresponsiveness for various

segments

Select target markets

Create lifestyle profiles:demography,

media, and product imagecharacteristics


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PRICING RESEARCH

Importance of price in brand selection

Pricing policies

Product line pricing

Price elasticity of demand

Initiating and responding to price changes

Table 1.1 Contd.

PROMOTIONAL RESEARCH

Optimal promotional budget

Sales promotion relationship

Optimal promotional mix

Copy decisions

Media decisions

Creative advertising testing

Claim substantiation

Evaluation of advertising effectiveness

$ALE

0.00% APR


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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


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problems

Unstructured Problems

Use of Models

User Friendly Interaction

Adaptability

Can Improve Decision Making

by Using What if Analysis

MIS DSS

Management Information SystemsVersus Decision Support Systems

Fig 1.3

Structured Problems

Use of Reports

Rigid Structure

Information Displaying Restricted

Can Improve Decision Making

by Clarifying Data


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RESARCH

SUPPLIERSEXTERNAL

FULL SERVICELIMITED SERVICE

INTERNAL

Syndicate

Services

Standardized

Services

Customize

d

Services

Internet

Services

Branded

Products

and Services

Data

Analysis

ServicesAnalytical

Services

Coding and

Data Entry

Services

Field

Services

Figure 1.4


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Organization of Marketing

Research at Oscar Mayer

RIP 1.2

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 EndUsers within Marketing

Department

Serves as Source of

Marketing Information

T 50 M k ti


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Top 50 MarketingResearch Organizations

RIP 1.3

Percent and

Total research revenues from Revenues from

Rank revenues* outside U.S. outside U.S.

1997 1996 Organization (millions) (millions) (millions )

1 1 AC Nielsen Corp. $1,391.6 77.7% 1081.6

2 2 Cognizant Corp. 1,339.1 49.2 659.1

3 3 Information Resources Inc. 456.3 19.6 89.6

4 6 Westat Inc. 182.0 0 0

5 8 NFO Worldwide Inc. 190.0*** 21.4 35.8

6 4 the Arbitron Co. 165.2 0 0

7 7 Maritz Marketing Research Inc. 146.0 20 29.2

8 9 The Kantar Group Ltd. 127.1 20.2 25.7

9 10 The NPD Group Inc. 110.3 18.3 20.2

10 11 Market facts Inc. 100.1 7 7

11 5 Pharm. Marketing Services Inc. 91.6 46.0 42.1

12 12 Audits & Surveys Worldwide Inc. 68.9 43.5 30

13 14 BASES Worldwide 57.6 19.7 11.4

14 13 The M/A/R/C Group Inc. 57.3 1.5 0.1

15 15 Opinion Research Corp. 53.9 32.7 17.6

16 16 SOFRES Intersearch 53.0 15 8.5


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RIP 1.3 Contd.

19 22 Burke Inc. 43.8 22.8 10

20 19 Macro International Inc. 42.9 38.5 16.5

21 23 Roper Starch Worldwide Inc. 40.0 17.8 7.1

22 17 Abt Associates Inc. 39.3 0 023 21 Elrick & Lavidge 37.1 5.7 2.1

24 38 IntelliQuest Inc. 36.5 29 10.6

25 26 Wirthlin Worldwide 35.5 16 5.7

19 22 Burke Inc. 43.8 22.8 10

20 19 Macro International Inc. 42.9 38.5 16.5

21 23 Roper Starch Worldwide Inc. 40.0 17.8 7.1

22 17 Abt Associates Inc. 39.3 0 023 21 Elrick & Lavidge 37.1 5.7 2.1

24 38 IntelliQuest Inc. 36.5 29 10.6

25 26 Wirthlin Worldwide 35.5 16 5.7

26 28 Total Research Corp. 33.1 27.2 9

27 25 MORPACE International 31.2 17.9 5.6

28 27 C&R Research Services Inc. 31.1 0 0

29 24 Walker Information 30.9 21.8 6.7

30 29 Lieberman Research Worldwide 28.6 13.3 0

31 34 Diagnostic Research International Inc. 26.7 3.1 0.8

32 33 IPSOS-ASI Inc. 26.7 0 0

33 30 Yankelovich Partners Inc. 26.4 0 0

34 31 Custom Research Inc. 25.8 0 0

35 39 Harris Black International Ltd. 25.7 7.4 1.9

36 32 Market Strategies Inc. 25.2 1.6 0.4


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35 39 Harris Black International Ltd. 25.7 7.4 1.9

36 32 Market Strategies Inc. 25.2 1.6 0.4

37 37 ICR-Int'l Communications Research 22.3 0 038 36 Data Development Corp. 22.2 8.7 1.9

39 35 Chilton Research Services 21.5 0 0

40 40 Market Decisions 18.2 0 0

41 -- National Research Corp. 16.3 0 0

42 43 Response Analysis Corp. 15.9 0 0

43 -- Marketing and Planning Systems 14.2 6 0.9

44 46 MATRIXX Marketing Research 14.1 41.1 5.8

45 41 RDA Group Inc. 14.0 30 4.2

46 45 Guideline Research Corp. 13.3 2.3 0.3

47 48 Directions Research Inc. 13.2 0 0

48 44 Conway/Milliken & Associates 13.0 0 0

49 49 TVG Inc. 12.3 0 0

50 50 Savitz Research Center Inc. 12.0 0 0

Subtotal, Top 50 $5,479.7 39.30% $2,153.20

All other (124 CASRO member companies not includ 535.7

RIP 1.3 Contd.


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Full Services Versus Limited ServiceMarketing Research Firms

RIP 1.4

Susan Adelmanand Kevin Heakenof 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 alsochanged the method and approach of the full-service companies to

meet new customer needs. Burke Marketing Research, a large full-

service company, has replaced many in-house departments for end-

users who have cut their in-house staff because of a downsizing

trend. An example would beOcean Spray or Quaker Oats whichhave cut marketing staff and subcontract all marketing research to

companies such as Burke and Maritz Marketing Research.


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So now, the end-user simply provides the full-service company witha management decision problem, which is interpreted and

articulated into the marketing research problem by a full-servicecompany and the other steps are also performed by the marketresearch company. Some companies believe that they can reducecosts 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 tothe data collection are omitted, which renders the market researchquestionable. The approach and process of market research arecritical to obtain data that can be useful or can be interpreted toimprove or make sound management decisions. The issue is

determining if the company requires a full-service company, whichwould undertake the entire research process, or is field researchsatisfactory, as in the case of Samsonite. Samsonite wanted to testthe market for responses to various suitcase colors. For thisresearch, a full-service firm was not necessary, only asurvey had to

be administered to confirm trends or preferences.

RIP 1.5 Contd.


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Selected Marketing ResearchCareer 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 thegeneral 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 ResearchCareer 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


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A S l f


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A Sample ofMarketingResearch Jobs

RIP 1.5

Marketing Research at


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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, Health-

Care, In-Flight Services, and Host International, Inc.) and

restaurants(family restaurants, Travel Plazas, and Hot

Shops). It is probably best known, however, for itslodgingoperations.

Marketing Research atMarriott Corporation

RIP 1.6

Marketing research at Marriott is done at the

corporate level through the Corporate Marketing

Services (CMS). CMSs goals include providingthe management of the different areas of Marriott

with the information they need to better

understand the market and the customer.


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CMS conducts many different types of research. They use

quantitative and qualitative research approaches such astelephone and mail surveys, focus groups, and customer intercept

to gain more information onmarket segmentation and sizing,

product testing, price sensitivity of consumers, consumer

satisfaction, and the like.

The process of research at Marriott is asimple 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.RIP 1.6 Contd.


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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 thestudy 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.

RIP 1.6 Contd.

Marketing Research

M k ti R h A i ti


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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)

Marketing Research AssociationsOnline

RIP 1.7


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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)

RIP 1.7 Contd.

Documents

Naresha Malothra Marekting Research Chapter 1