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Chapter One
Introduction to Marketing Research
Be an MR!
Be a DM!

Opening Vignette
Definition of Marketing Research
Fig.
1.2

A Classification of Marketing Research
Fig 1.3

Marketing Research Process
Fig 1.4

The Role of Marketing Research in Decision Making
Fig
1.5

The Information Value Chain for Marketing Research
Fig 1.6

Application to Contemporary Issues
International

Technology

Ethics

What Would You Do?

Experiential Learning

Figure 1.1 Introduction to Marketing Research: An Overview
Be an MR!
Be a DM!

Opening Vignette
Marketing Research Industry
Fig
1.7

What Would You Do?

Experiential Learning

Figure 1.1 Introduction to Marketing Research: An Overview (cont.)

Table
1.1

Selecting a Research Supplier

Careers in Marketing Research

The Role of Marketing Research in MIS and DSS

Fig. 1.8 and 1.9

Application to Contemporary Issues
International

Technology

Ethics
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.
Figure 1.2 Defining Marketing Research
Identification of
Information
Needed

Identifying and
Solving Marketing
Problems

Collection of
Data

Analysis of
Data
Dissemination of
Information
Use of
Information
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
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.
Figure 1.3 A Classification of Marketing Research

Marketing
Research
Problem
Identificatio
n Research

•
•
•
•

Market Potential Research
Market Share Research
Image Research
Market Characteristics

Research
• Forecasting Research
• Business Trends Research

Problem
Solving
Research

• Segmentation
Research
• Product Research
• Pricing Research
• Promotion Research
• Distribution Research
Table 1.1

Problem Solving Research
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
Table 1.1 (cont.)

Problem Solving Research
PROMOTIONAL RESEARCH



Sales promotion relationship



Optimal promotional mix



Copy decisions



Media decisions



PRICING RESEARCH

Optimal promotional budget

Creative advertising testing



Evaluation of advertising effectiveness



Claim substantiation



Pricing policies



Importance of price in brand selection



Product line pricing



Price elasticity of demand



Initiating and responding to price changes
Problem Solving Research
DISTRIBUTION RESEARCH
Determine…
 Types of distribution
 Attitudes of channel members
 Intensity of wholesale & resale coverage
 Channel margins
 Location of retail and wholesale outlets
Problem Solving Research
Segmentation Research
- determine basis of segmentation
- establish market potential and responsiveness for various segments
- select target markets and create lifestyle profiles for 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 store tests
Problem Solving Research (Cont.)
Pricing Research
-

importance of price in brand selection
pricing policies

-

product line pricing

-

price elasticity of demand
initiating and responding to price changes
Problem Solving Research (Cont.)
• Promotional Research
optimal promotional budget
sales promotion relationship
optimal promotional mix
copy decisions
media decisions
creative advertising testing
claim substantiation
evaluation of advertising effectiveness
Problem Solving Research (Cont.)
Distribution Research
-

-

determine type of distribution
attitudes of channel members
intensity of wholesale and retail coverage
channel margins
location of retail and wholesale outlets
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
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

Assessing
Information
Needs

Customer Groups
• Consumers
• Employees
• Channel Members
• Suppliers

Controllable
Marketing
Variables
• Product
• Pricing
• Promotion
• Distribution

Marketing
Research
Marketing
Decision
Making

Marketing Managers
• Market Segmentation
• Marketing Programs
• Target Market Selection • Performance and
Control

Providing
Information
Figure 1.6 The Information Value Chain

Data

The Information Value
Chain

Information

Knowledge

Data with structure

Information endowed
with meaning

Decision
Making

Implementing
Action

Processes
Outcomes

Expertise
in measurement
Figure 1.7 Marketing Research Industry: Supplier and Services
Research
Suppliers

External

Internal

Full Service
Limited Service
Syndicated
Services
Customized
Services

Internet
Services
Field Services

Other Services
Marketing Research Suppliers & Services
• Internal suppliers
• External suppliers
– 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
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 obtained and compared on
the basis of quality as well as price.
Careers in Marketing Research
• Career opportunities are available with marketing
research firms (e.g., AC Nielsen, Burke, Inc., M/A/R/C)
• Careers in business and non-business firms and
agencies with in-house marketing research departments
(e.g., Procter & Gamble, Coca-Cola, AT & T, the Federal
Trade Commission, United States Census Bureau)
• Advertising agencies (e.g., BBDO International, Ogilvy &
Mather, J. Walter Thompson, Young & Rubicam)
• Positions: vice president of marketing research, research
director, assistant director of research, project manager,
field work director, statistician/data processing specialist,
senior analyst, analyst, junior analyst, and operational
supervisor.
Selected Marketing Research Career Descriptions
Research Director

Vice President of Marketing
Research
•

• Also part of senior
management

Part of company’s top

• Heads the development

management team

•

Directs company’s entire market

and execution of all

research operation

•

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
Selected Marketing Research Career Descriptions
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

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

Junior Analyst

Fieldwork Director

• Secondary data analysis
• Edits and codes questionnaires
• Conducts preliminary analysis of data

• Handles selection, training,
supervision, and evaluation of
interviewers and field workers
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.
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
Figure 1.9 Marketing Information Systems (MIS)
vs.
Decision Support Systems (DSS)

MIS

DSS

• Structured problems

• Unstructured problems

• Use of reports

• Use of models

• Information
displaying restricted

• Adaptability

• Can improve
decision making by
clarifying new data

• Can improve decision
making by using “what
if” analysis
Figure 1.10 Stakeholders in Marketing Research:
An Ethical Perspective

Client

Marketing
Researcher

Public

Respondents
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)

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Marketing research

  • 1. Chapter One Introduction to Marketing Research
  • 2. Be an MR! Be a DM! Opening Vignette Definition of Marketing Research Fig. 1.2 A Classification of Marketing Research Fig 1.3 Marketing Research Process Fig 1.4 The Role of Marketing Research in Decision Making Fig 1.5 The Information Value Chain for Marketing Research Fig 1.6 Application to Contemporary Issues International Technology Ethics What Would You Do? Experiential Learning Figure 1.1 Introduction to Marketing Research: An Overview
  • 3. Be an MR! Be a DM! Opening Vignette Marketing Research Industry Fig 1.7 What Would You Do? Experiential Learning Figure 1.1 Introduction to Marketing Research: An Overview (cont.) Table 1.1 Selecting a Research Supplier Careers in Marketing Research The Role of Marketing Research in MIS and DSS Fig. 1.8 and 1.9 Application to Contemporary Issues International Technology Ethics
  • 4. 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.
  • 5. Figure 1.2 Defining Marketing Research Identification of Information Needed Identifying and Solving Marketing Problems Collection of Data Analysis of Data Dissemination of Information Use of Information
  • 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
  • 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.
  • 8. Figure 1.3 A Classification of Marketing Research Marketing Research Problem Identificatio n Research • • • • Market Potential Research Market Share Research Image Research Market Characteristics Research • Forecasting Research • Business Trends Research Problem Solving Research • Segmentation Research • Product Research • Pricing Research • Promotion Research • Distribution Research
  • 9. Table 1.1 Problem Solving Research 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
  • 10. Table 1.1 (cont.) Problem Solving Research PROMOTIONAL RESEARCH   Sales promotion relationship  Optimal promotional mix  Copy decisions  Media decisions  PRICING RESEARCH Optimal promotional budget Creative advertising testing  Evaluation of advertising effectiveness  Claim substantiation  Pricing policies  Importance of price in brand selection  Product line pricing  Price elasticity of demand  Initiating and responding to price changes
  • 11. Problem Solving Research DISTRIBUTION RESEARCH Determine…  Types of distribution  Attitudes of channel members  Intensity of wholesale & resale coverage  Channel margins  Location of retail and wholesale outlets
  • 12. Problem Solving Research Segmentation Research - determine basis of segmentation - establish market potential and responsiveness for various segments - select target markets and create lifestyle profiles for 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 store tests
  • 13. Problem Solving Research (Cont.) Pricing Research - importance of price in brand selection pricing policies - product line pricing - price elasticity of demand initiating and responding to price changes
  • 14. Problem Solving Research (Cont.) • Promotional Research optimal promotional budget sales promotion relationship optimal promotional mix copy decisions media decisions creative advertising testing claim substantiation evaluation of advertising effectiveness
  • 15. Problem Solving Research (Cont.) Distribution Research - - determine type of distribution attitudes of channel members intensity of wholesale and retail coverage channel margins location of retail and wholesale outlets
  • 16. 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
  • 17. 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 Assessing Information Needs Customer Groups • Consumers • Employees • Channel Members • Suppliers Controllable Marketing Variables • Product • Pricing • Promotion • Distribution Marketing Research Marketing Decision Making Marketing Managers • Market Segmentation • Marketing Programs • Target Market Selection • Performance and Control Providing Information
  • 18. Figure 1.6 The Information Value Chain Data The Information Value Chain Information Knowledge Data with structure Information endowed with meaning Decision Making Implementing Action Processes Outcomes Expertise in measurement
  • 19. Figure 1.7 Marketing Research Industry: Supplier and Services Research Suppliers External Internal Full Service Limited Service Syndicated Services Customized Services Internet Services Field Services Other Services
  • 20. Marketing Research Suppliers & Services • Internal suppliers • External suppliers – 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
  • 21. 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 obtained and compared on the basis of quality as well as price.
  • 22. Careers in Marketing Research • Career opportunities are available with marketing research firms (e.g., AC Nielsen, Burke, Inc., M/A/R/C) • Careers in business and non-business firms and agencies with in-house marketing research departments (e.g., Procter & Gamble, Coca-Cola, AT & T, the Federal Trade Commission, United States Census Bureau) • Advertising agencies (e.g., BBDO International, Ogilvy & Mather, J. Walter Thompson, Young & Rubicam) • Positions: vice president of marketing research, research director, assistant director of research, project manager, field work director, statistician/data processing specialist, senior analyst, analyst, junior analyst, and operational supervisor.
  • 23. Selected Marketing Research Career Descriptions Research Director Vice President of Marketing Research • • Also part of senior management Part of company’s top • Heads the development management team • Directs company’s entire market and execution of all research operation • 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
  • 24. Selected Marketing Research Career Descriptions 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 Statistician/Data Processing • Serves as expert on theory and application on statistical techniques • Oversees experimental design, data processing, and analysis Junior Analyst Fieldwork Director • Secondary data analysis • Edits and codes questionnaires • Conducts preliminary analysis of data • Handles selection, training, supervision, and evaluation of interviewers and field workers
  • 25. 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.
  • 26. 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) MIS DSS • Structured problems • Unstructured problems • Use of reports • Use of models • Information displaying restricted • Adaptability • Can improve decision making by clarifying new data • Can improve decision making by using “what if” analysis
  • 28. Figure 1.10 Stakeholders in Marketing Research: An Ethical Perspective Client Marketing Researcher Public Respondents
  • 29. 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)