CHAPTER three The Marketing Research Industry and Research Ethics Copyright © 2000 South-Western College Publishing Co.

Learning Objectives 1. To appreciate the structure of the marketing research industry. 2. To comprehend the nature of corporate marketing research departments. 3. To learn the various types of firms and their research functions in the market research industry. 4. To learn who uses marketing research.

Learning Objectives 5. To understand the growing importance of strategic partnering. 6. To appreciate the trends in global marketing research. 7. To review contemporary ethics in the marketing research industry. 8. To discover methods by which the level of professionalism in marketing research can be raised.

Level 1. Primary Information Users (Corporate Marketing Departments) To learn about the various types of firms and their functions in research. THE EVOLVING STRUCTURE OF THE MARKETING RESEARCH INDUSTRY Level 1. Primary Information Users (Corporate Marketing Departments) The ultimate users of marketing research Marketing research data is needed to: 1. determine how targets will react to alternative marketing mixes. 2. evaluate success of operational marketing strategies. 3. assess changes in the external environment.

4. identify new target markets. To learn about the various types of firms and their functions in research. THE EVOLVING STRUCTURE OF THE MARKETING RESEARCH INDUSTRY 4. identify new target markets. 5. create new marketing mixes for new target markets. Level 2: Information Users (Ad Agencies) serves corporate clients may be ultimate users of research data main business: the development and execution of ad campaigns.

Level 3: Research Designers and Suppliers To learn about the various types of firms and their functions in research. THE EVOLVING STRUCTURE OF THE MARKETING RESEARCH INDUSTRY Level 3: Research Designers and Suppliers sell research services design research studies analyze results make recommendations to client they design research, manage its execution, and buy data collection from other firms

Figure 3.1 The Marketing Research Industry

Level 4: Data Collectors To learn about the various types of firms and their functions in research. THE EVOLVING STRUCTURE OF THE MARKETING RESEARCH INDUSTRY Level 4: Data Collectors Field service firms collect data for: syndicated research firms custom research firms ad agencies corporations

Companies are conducting less research internally. To learn about the various types of firms and their functions in research. CORPORATE MARKETING RESEARCH DEPARTMENTS Companies are conducting less research internally. Our attention will be devoted to marketing departments found in the more sophisticated, larger companies.

Level 3: The Big Marketing Research Companies To learn about the various types of firms and their functions in research. THE MARKETING RESEARCH INDUSTRY Level 3: The Big Marketing Research Companies Four largest firms in the industry: A. C. Nielsen Corporation retail measurement services IMS Health Incorporated pharmacy and hospital audits

Information Resources Incorporates To learn about the various types of firms and their functions in research. THE MARKETING RESEARCH INDUSTRY Information Resources Incorporates tracks weekly sales and price for mass merchandisers Nielsen Media Research television industry

Level 3: Custom or Ad Hoc Research Firms To learn about the various types of firms and their functions in research. THE MARKETING RESEARCH INDUSTRY Level 3: Custom or Ad Hoc Research Firms One-of-a-kind marketing research projects Level 3: Syndicated Service Firms Collect and sell the same marketing research to many firms Level 4: Field Service Firms Data collection specialists on a subcontract basis for corporate marketing research departments

Specialized Service and Support Firms To learn about the various types of firms and their functions in research. THE MARKETING RESEARCH INDUSTRY Specialized Service and Support Firms Sample Generation Secondary Data Statistical Analysis Other Organizations and Individuals government agencies university bureaus professors

New product development, pricing Top Management’s Use of Research To learn the uses of marketing research. USERS OF MARKET RESEARCH External Clients Vendors Franchisees Internal Clients New product development, pricing Top Management’s Use of Research Other Internal Users: engineers, manufacturing, finance, human resources, legal

Services provided may include: data collection tracking To appreciate the trends in global marketing research. THE GROWING ROLE OF STRATEGIC PARTNERING AND GLOBAL RESEARCH In a strategic partnership, the client and research firm work together. Services provided may include: data collection tracking specialized research activity Global Marketing Research Trends International Marketing Research is Changing

Indications of a Lack of Professionalism in the Research Industry To review contemporary ethics in the marketing research industry. MAKING ETHICAL DECISIONS IN MARKETING RESEARCH Indications of a Lack of Professionalism in the Research Industry Push Polls Sales Pitches Disguised as Research Fostering Professionalism The Efforts of CASRO The Creation of CMOR Is There a Need for Researcher Certification?

The End Copyright © 2000 South-Western College Publishing Co.