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

2. Chapter Outline 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
) Selecting a Research Supplier 1

3. Chapter Outline (cont.)
9) Careers in Marketing Research
10) Marketing Research Process
11) The Department Store Patronage Project
12) International Marketing Research
13) Ethics in Marketing Research
14) Internet and Computer Applications
15) Focus on Burke
16) Summary
17) Key Terms and Concepts
18) Acronyms 2

4. The American Marketing Association Redefines Marketing Research
RIP 1.1
Used to identify and define market opportunities and problems
The New Definition
Marketing research is the function which links the consumer, customer, and public to the marketer through
Generate, refine, and evaluate marketing performance
Monitor marketing performance
Information
Improve understanding of marketing as a process 12

5. The Role of Marketing Research
Fig 1.1
Customer Groups
Consumers
Employees
Shareholders
Suppliers
Uncontrollable
Controllable
Environmental
Marketing
Factors
Variables
Marketing
Economy
Technology
Laws & Regulation
Social & Cultural Factors
Political Factors
Product
Pricing
Promotion
Distribution
Research
Assessing
Marketing
Providing
Information
Decision
Information
Needs
Making
Marketing Managers
Market Segmentation
Target Market Selection
Marketing Programs
Performance & Control 3

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. A Classification of Marketing Research
Fig 1.2
Marketing Research
Problem
Identification Research
Problem Solving Research
Market potential research
Market share research
Market characteristics research
Sales analysis research
Forecasting research
Business trends research
Segmentation Research
Product Research
Promotion Research
Distribution Research 4

8. Problem Solving Research
Table 1.1
Segmentation Research
Product Research
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 and responsiveness for various segments
Select target markets
Create lifestyle profiles:demography, media, and product image characteristics 9

9. 0.00% $ALE APR Table 1.1 Contd. PRICING RESEARCH PROMOTIONAL RESEARCH
Importance of price in brand selection
Pricing policies
Product line pricing
Price elasticity of demand
Initiating and responding to price changes
$ALE
PROMOTIONAL RESEARCH
Optimal promotional budget
Sales promotion relationship
Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing
Claim substantiation
Evaluation of advertising effectiveness
0.00%
APR 10

10. Distribution Research
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

11. Management Information Systems Versus Decision Support Systems
Fig 1.3
MIS
DSS
Structured Problems
Use of Reports
Rigid Structure
Information Displaying Restricted
Can Improve Decision Making
by Clarifying Data
Unstructured Problems
Use of Models
User Friendly Interaction
Adaptability
Can Improve Decision Making
by Using “What if” Analysis
problems 5

12. Marketing Research Supplier and Services
Figure 1.4
EXTERNAL
INTERNAL
RESARCH
SUPPLIERS
LIMITED SERVICE
FULL SERVICE
Branded
Products
and Services
Field
Services
Syndicate
Services
Internet
Services
Coding and
Data Entry
Services
Standardized
Services
Customized
Services
Data
Analysis
Services
Analytical
Services

13. Organization of Marketing Research at Oscar Mayer
RIP 1.2
Marketing Systems and Analytics (MSA)
Performs Sales Analysis Based on Shipment & Store Scanner Data
Supports Computer End Users within Marketing Department
Serves as Source of Marketing Information
Brand Research
Conducts Primary & Secondary Research
Serves As Marketing Consultants
Analyzes Market Trends
Advances the State of the Art in Marketing Research 16

14. Research Organizations
Top 50 Marketing
Research Organizations
RIP 1.3 18

15. RIP 1.3 Contd. 18

16. RIP 1.3 Contd.

17. Full Services Versus Limited Service Marketing Research Firms
RIP 1.4
Susan Adelman and Kevin Heaken of 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 also changed 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 be Ocean Spray or Quaker Oats which have cut marketing staff and subcontract all marketing research to companies such as Burke and Maritz Marketing Research.

18. RIP 1.5 Contd.
So now, the end-user simply provides the full-service company with a management decision problem, which is interpreted and articulated into the marketing research problem by a full-service company and the other steps are also performed by the market research company. Some companies believe that they can reduce costs 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 to the data collection are omitted, which renders the market research questionable. The approach and process of market research are critical to obtain data that can be useful or can be interpreted to improve or make sound management decisions. The issue is determining if the company requires a full-service company, which would undertake the entire research process, or is field research satisfactory, as in the case of Samsonite. Samsonite wanted to test the market for responses to various suitcase colors. For this research, a full-service firm was not necessary, only a survey had to be administered to confirm trends or preferences.

19. Selected Marketing Research
Career 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 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. 7

20. Selected Marketing Research
Career Descriptions
Vice President of Marketing Research
Part of company’s top management team
Directs company’s 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

21. Statistician/Data Processing
Senior Analyst
Participates in the development of projects
Carries out execution of assigned projects
Coordinates the efforts of analyst, junior analyst, & other personnel development of research design and data collection
Prepares final report
Statistician/Data Processing
Serves as expert on theory and application on statistical techniques
Oversees experimental design, data processing, and analysis
Fig 1.5 Contd.
Analyst
Handles details in execution of project
Designs & pretests questionnaires
Conducts
Preliminary analysis of data
Field Work Director
Handles selection, training, supervision, and evaluation of interviewers and field workers
Junior Analyst
Secondary data analysis
Edits and codes questionnaires
Conducts preliminary analysis of data 8

22. A Sample of Marketing Research Jobs
RIP 1.5 9

23. Marketing Research at Marriott Corporation
RIP 1.6
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 its lodging operations.
Marketing research at Marriott is done at the corporate level through the Corporate Marketing Services (CMS). CMS’s goals include providing the management of the different areas of Marriott with the information they need to better understand the market and the customer.

24. RIP 1.6 Contd.
RIP 1.6 Contd.
CMS conducts many different types of research. They use quantitative and qualitative research approaches such as telephone and mail surveys, focus groups, and customer intercept to gain more information on market segmentation and sizing, product testing, price sensitivity of consumers, consumer satisfaction, and the like.
The process of research at Marriott is a simple 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.

25. RIP 1.6 Contd.
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 the study 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.
Marketing Research

26. Marketing Research Associations Online
RIP 1.7
Domestic
AAPOR: American Association for Public Opinion Research (
AMA: American Marketing Association (
ARF: The Advertising Research Foundation (
CASRO: The Council of American Survey Research Organizations (
MRA: Marketing Research Association (
QRCA: Qualitative Research Consultants Association (
RIC: Research Industry Coalition ( industry.org)

27. RIP 1.7 Contd.
International
ESOMAR: European Society for Opinion and Marketing Research (
MRS: The Market Research Society (UK) (
MRSA: The Market Research Society of Australia (
PMRS: The Professional Marketing Research Society (Canada) (