1-1 Copyright 2010 Pearson Education, Inc.

Introduction and Early

Phases of Marketing
esearch
Chapter 1
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Redefining Marketing Research
!he "#erican Marketing "ssociation $"M"%
redefined Marketing Research as&
!he function that links the consu#er, the
custo#er, and pu'lic to the #arketer
through INFORMATION
1-( Copyright 2010 Pearson Education, Inc.
)sed to identify and
define #arket
opportunities and
pro'le#s
*enerate, refine, and
e+aluate #arketing
perfor#ance
Monitor #arketing
perfor#ance
I#pro+e understanding
of #arketing as a
process
Redefining Marketing Research
1-, Copyright 2010 Pearson Education, Inc.
Definition of Marketing Research
Marketing research is the syste#atic and o'-ecti+e

identification

collection

analysis

disse#ination

and use of infor#ation

.or the purpose of i#pro+ing decision #aking related to the

identification and

solution of pro'le#s and opportunities in #arketing

1-/ Copyright 2010 Pearson Education, Inc.
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
Helps managers use this information to
make decisions
1-0 Copyright 2010 Pearson Education, Inc.
Classification of Marketing Research
Problem-Identification Research
1
esearch undertaken to help identify pro'le#s 2hich are
not necessarily apparent on the surface and yet e3ist or
are likely to arise in the future. E3a#ples& #arket
potential, #arket share, i#age, sales analysis,
forecasting, and trends research.
Problem-ol!ing Research
1
esearch undertaken to help sol+e specific #arketing
pro'le#s. E3a#ples& seg#entation, product, pricing,
pro#otion, and distri'ution research.
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A Classification of Marketing Research
Marketing esearch
Pro'le#
Identification esearch
Pro'le#-5ol+ing
esearch
Market Potential esearch
Market 5hare esearch
5ales "nalysis esearch
.orecasting esearch
6usiness !rends esearch
5eg#entation esearch
Product esearch
Pricing esearch
Pro#otion esearch
7istri'ution esearch
.ig. 1.1
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Problem-Solving Research

7eter#ine the 'asis of seg#entation

Esta'lish #arket potential and

responsi+eness for +arious
seg#ents

5elect target #arkets

Create lifestyle profiles&

de#ography, #edia, and
product i#age characteristics
"#M"NTATION R""ARC$

!est concept

7eter#ine opti#al product design

Package tests

Product #odification

6rand positioning and repositioning

!est #arketing
PRO%&CT R""ARC$
!a'le 1.1
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Problem-Solving Research
!a'le 1.1 cont.
PRICIN# R""ARC$

I#portance of price in 'rand selection

Product line pricing

Price elasticity of de#and

Initiating and responding to price changes

'A("
PROMOTIONA( R""ARC$

:pti#al pro#otional 'udget

5ales pro#otion relationship

:pti#al pro#otional #i3

Copy decisions

Media decisions

Creati+e ad+ertising testing

E+aluation of ad+ertising effecti+eness

)*))+
"P
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Problem-Solving Research
!a'le 1.1 cont.
%ITRI,&TION R""ARC$
7eter#ine;

!ypes of distri'ution

"ttitudes of channel #e#'ers

Intensity of 2holesale < resale co+erage

Channel #argins

=ocation of retail and 2holesale outlets

1-11 Copyright 2010 Pearson Education, Inc.
Marketing Research Process
5tep 1 & Pro'le# 7efinition
5tep 2 & 7e+elop#ent of an "pproach to the Pro'le#
5tep ( & esearch 7esign .or#ulation
5tep , & .ield2ork or 7ata Collection
5tep / & 7ata Preparation and "nalysis
5tep 0 & eport Preparation and Presentation
1-12 Copyright 2010 Pearson Education, Inc.
Marketing Research Process
tep 1- %efining the Problem
tep .- %e!eloping an Approach to the Problem
tep /- Form0lating a Research %esign
tep 1- %oing Field 2ork or Collecting %ata
tep 3- Preparing and Anal45ing %ata
tep 6- Preparing and Presenting the Report
1-1( Copyright 2010 Pearson Education, Inc.
The Role of Marketing Research
Controllable
Marketing
1 Product
1 Pricing
1 Pro#otion
1 7istri'ution
7ariables
Marketing
Research
Marketing
%ecision
Making
Pro!iding
Information
Assessing
Information
Needs
Marketing Managers
1 Market egmentation
1 Performance 8 Control
1Target Market election
1 Marketing Programs
&ncontrollable
"n!ironmental
Factors
1 Econo#y
1 !echnology
1 =a2s <
egulations
1 5ocial < Cultural
.actors
1 Political .actors
.ig. 1.2
1 Cons0mers
1 "mplo4ees
1 hareholders
1 0ppliers
C0stomer #ro0ps
7ecisions for #arketing #grs
is co#plicated 'y Controlling +aria'les
1-1, Copyright 2010 Pearson Education, Inc.
Client
Needs
Find eek Plan Act
ol!e Problem
Achie!e #oal
$o9 2e
$elp
Clarif4
%ecisions
Research
Anal4sis
"!al0ate
Interpret
Facilitate
Recommend
Market
Plan
Research
Ad!ise
Assist
":ec0tion
Opport0nit4 scan
Option generation
Refine options
%ecision
.ig. 1.(
Po9er %ecisions; Methodolog4
1-1/ Copyright 2010 Pearson Education, Inc.
Marketing Research Suppliers & Services
(IMIT"% "R7IC"
:ther
5er+ice
s
!echnical
and "nalytical
5er+ices
.ocus *roups
and >ualitati+e
5er+ices
.ield
5er+ice
s
F&(( "R7IC"
5yndicate
5er+ices
5tandardi?ed
5er+ices
Custo#i?
ed
5er+ices
Internet
5er+ice
s
R""ARC$
&PP(I"R
"<T"RNA(
INT"RNA(
.ig. 1.,
Mktg research depts in the fir#
Co@s hired to supply data
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2
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1-18 Copyright 2010 Pearson Education, Inc.
&** Rank Organi5ation $ead=0arters 2ebsite &** #lobal Non-&**
.))> .))6

Table 1*. Top 3) &** Marketing Research Firms
1 1 The Nielsen Co. New York nielsen.com $2,173.0 $4,220.0 48.5%
2 2 IM !e"l#h Inc. Norw"lk, Conn. imshe"l#h.com 801.0 2,1$2.% %3.5
3 3 &"n#"r 'ro()* +"ir,iel-, Conn. k"n#"r.ro().com 52%.8 1,551.4 %%.0
4 5 /es#"# Inc. 0ock1ille, M2 wes#"#.com 4%7.8 4%7.8 3
5 4 I0I Chic".o in,ores.com 441.0 702.0 37.2
% % TN 4.. New York #ns.lo5"l.com 37$.8 2,137.2 82.2
7 7 6r5i#ron Inc. New York "r5i#ron.com 338.5 352.1 3.$
8 8 ',& 6' 46 N(rem5er., 'erm"n7 .,k.com 31$.7 1,%03.00 80.1
$ $ I)sos New York i)sos8n".com 281.2 1,270.30 77.$
10 10 7no1"#e 9on-on s7no1"#e.com 250.4 8%7.0 71.1
11 11 M"ri#: 0ese"rch +en#on, Mo. m"ri#:rese"rch.com 187.4 223.3 1%.1
12 13 ;.2. <ower "n- 6ssoci"#es*
/es#l"ke =ill".e,
C"li,. >-)ower.com 184.5 2%0.5 2$.2
13 12 !"rris In#er"c#i1e Inc. 0oches#er, N.Y. h"rrisin#er"c#i1e.com 1%1.0 227.0 2$.1
14 14 The N<2 'ro() Inc. <or# /"shin.#on, N.Y. n)-.com 1%0.4 211.1 24.0
15 3
?)inion 0ese"rch@
'(i-eline 'ro() ?m"h", Ne5. in,o(s".com 124.7 20%.7 3$.7
15 ?)inion 0ese"rch Cor). <rince#on, N.;. o)inionrese"rch.com $7.5 17$.5 45.7
e+enue, A, in #illions
e+enue, A, in #illions e+enue
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&** Rank Organi5ation $ead=0arters 2ebsite &** #lobal Non-&**
.))> .))6
Table 1*. Top 3) &** Marketing Research Firms ?Cont@A
38
'(i-eline Inc. New York .(i-eline.com 2%.8 2%.8 3
1% 18 comcore Inc. 0es#on, =". comscore.com 77.0 87.2 11.7
17 20 M"rke# #r"#e.ies Inc. 9i1oni", Mich. m"rke#s#r"#e.ies.com 75.7 80.4 5.8
20
M"rke# #r"#e.ies Inc. 9i1oni", Mich. m"rkes#r"#e.ies.com 53.4 58.1 8.1
37

+l"ke8/ilkerson M"rke#
Insi.h#s 9i##le 0ock, 6rk. ,w8mi.com 22.3 22.3 3
18 17 9ie5erm"n 0ese"rch /orl-wi-e 9os 6n.eles Irwonline.com 71.0 87.4 18.8
1$ 3 65# 6ssoci"#es Inc. C"m5ri-.e, M"ss. "5#"ssoci"#es.com 55.1 55.1 3
1$

65# 6ssoci"#es Inc. C"m5ri-.e, M"ss. "5#"ssoci"#es.com 33.0 33.0 3
41
65# 0AI Inc. New York sr5i.com 22.1 22.1 3
20 23 ?TB 9os 6n.eles o#Crese"rch.com 50.8 54.5 %.8
21 21 A(rke Inc. Cincinn"#i 5(rke.com 47.0 53.1 11.5
22 22 M=9 'ro() Inc. ;()i#er, +l". m1l.ro().com 42.3 42.3 3
23 2% &nowle-.e Ne#works Inc. Menlo <"rk, C"li,. knowle-.ene#works.com 37.3 37.3 3
23 25 N"#ion"l 0ese"rch Cor). 9incoln, Ne5. n"#ion"lrese"rch.com 37.3 41.3 $.7
25 24 2irec#ions 0ese"rch Inc. Cincinn"#i -irec#ionsrese"rch.com 37.2 37.2 3
2% 40 <hoeniC M"rke#in. In#ern"#ion"l 0hine5"ck, N.Y. )hoeniCmi.com 33.5 34.$ 4.0
1-20 Copyright 2010 Pearson Education, Inc.
&** Rank Organi5ation $ead=0arters 2ebsite &** #lobal Non-&**
.))> .))6
Table 1*. Top 3) &** Marketing Research Firms ?Cont@A
27
34 9ie5erm"n 0ese"rch 'ro() 're"# Neck, N.Y. lie5erm"nrese"rch.com 30.1 30.1 3
28
27
IC0@In#Dl Comm(nic"#ions
0ese"rch Me-i", <". icrs(r1e7.com 28.8 2$.7 3.0
2$
28 Mor)"ce Inc.
+"rmin.#on !ills,
Mich. mor)"ce.com 28.7 33.2 13.%
30
33 M"rke#C"s# 9os 6n.eles m"rke#c"s#online.com 25.1 25.1
31
3% 2"#" 2e1elo)men# /orl-wi-e New York -"#"-w.com 25.0 25.3 1.2
32
3$ CE0 0ese"rch er1ices Inc. Chic".o crrese"rch.com 23.% 23.% 3
33
32 In,orm" 0ese"rch er1ices Inc. C"l"5"s"s, C"li,. in,orm"rs.com 23.5 23.5 3
34
31 N"#ion"l 6n"l7s#s /orl-wi-e <hil"-el)hi" n"#ion"l"n"l7s#s.com 23.3 23.3 3
35
44 er1ice M"n".emen# 'ro() &"ns"s Ci#7, Mo. ser1icem"n".emen#.com 22.4 23.0 2.%
3%
34 M"rke# <ro5e Inc. Milw"(kee m"rke#)ro5e.com 21.7 41.4 47.%
37 3 !i#wise New York hi#wise.com 21.% 4$.$ 5%.7
38
42 /"lker In,orm"#ion In-i"n")olis w"lkerin,o.com 21.2 25.5 1%.$
3$
43 &E0 Inc. 7r"c(se, N.Y. ksrinc.com 17.1 21.0 18.%
40
47 Aellom7 0ese"rch Inc. /ins#on8"lem, N.C. 5ellom7rese"rch.com 1%.7 1%.7 3
41
4% M"rke#=ision 0ese"rch Inc. Cincinn"#i m"rke#1isionrese"rch.com 1%.4 1%.4 3
42
28 <(5lic ?)inion #r"#e.ies 6leC"n-r", =". )os.or. 15.5 15.5 3
1-21 Copyright 2010 Pearson Education, Inc.
&** Rank Organi5ation $ead=0arters 2ebsite &** #lobal Non-&**
.))> .))6
Table 1*. Top 3) &** Marketing Research Firms ?Cont@A
43 3 Com)e#e Inc. Aos#on com)e#e.com 14.$ 14.$ 3
44 45 "1i#: 0ese"rch Com)"nies 2"ll"s s"1i#:rese"rch.com 14.8 14.8 3
45 48 026 'ro() Inc.
Aloom,iel- !ills,
Mich. r-".ro().com 13.7 1%.8 18.5
4% 3 'on.os 0ese"rch Inc.
6(5(rn !ills,
Mich. .on.os.com 13.3 13.3 3
47 3 F 0ese"rch ol(#ions Inc. ?l- Ari-.e, N.;. whoisG.com 13.0 13.2 1.5
48 4$ M"rke#in. 6n"l7s#s Inc. Ch"rles#on, .C. m"rke#in."n"l7s#s.com 12.8 13.% 5.$
4$ 50
0Ti M"rke# 0ese"rch E Ar"n-
#r"#e.7 #"m,or-, Conn. r#irese"rch.com 12.2 12.2 3
50 3 The 9ink 'ro() 6#l"n#" #he8link8.ro().com 11.$ 13.3 10.5
To#"l $7.828.7 $17,%38.0 55.%%
6ll o#her H150 C60? com)"nies no#
incl(-e- in #he To) 50I $774.3 $870.1 11.0%
To#"l H200 com)"niesI $8,%03.0 $18,508.1 53.5%
BEsti#ated 'y !op /0. ).5. and 2orld2ide re+enue #ay include nonresearch acti+ities for so#e co#panies that are significantly higher. ate of gro2th fro#
year to year has 'een ad-usted so as not to include re+enue gains or losses fro# acCuisitions or di+estitures. !otal re+enue of 1/0 sur+ey research co#panies
that pro+ide financial infor#ation on a confidential 'asis to C"5:.
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1-2( Copyright 2010 Pearson Education, Inc.
Selected Marketing Research Career Descriptions
ice President of Marketing Research! The senior position in
marketing research. The vice president (!" is responsi#le for the
entire marketing research operation of the company and serves on
the top management team. This person sets the o#$ectives and
goals of the marketing research department.
Research Director! Also a senior position. The research director has
the general responsi#ility for the development and e%ecution of all
the marketing research pro$ects.
Assistant Director of Research! Serves as an administrative
assistant to the director and supervises some of the other
marketing research staff mem#ers.
"Senior# Pro$ect Manager! Has overall responsi#ility for design&
implementation& and management of research pro$ects.
Statistician%Data Processing Specialist! Serves as an e%pert on
theory and application of statistical techni'ues. (esponsi#ilities
include e%perimental design& data processing& and analysis.
.ig. 1./
1-2, Copyright 2010 Pearson Education, Inc.
elected Marketing Research Career %escriptions
7ice President of Marketing
Research
1 Part of co#panyDs top #anage#ent
tea#
1 7irects co#panyDs entire #arket
research operation
1 5ets the goals < o'-ecti+es of the
#arketing research depart#ent
Research %irector
1 "lso part of senior
#anage#ent
1 Eeads the de+elop#ent
and e3ecution of all
research pro-ects
Assistant %irector of Research
1 "d#inistrati+e assistant to director
1 5uper+ises research staff #e#'ers
enior ProBect Manager
1 esponsi'le for design, i#ple#entation, < research
pro-ects
.ig. 1./ cont.
1-2/ Copyright 2010 Pearson Education, Inc.
Anal4st
1 Eandles details in e3ecution of
pro-ect
1 7esigns < pretests Cuestionnaires
1 Conducts preli#inary analysis of data
C0nior Anal4st
1 5econdary data analysis
1 Edits and codes Cuestionnaires
1 Conducts preli#inary analysis of data
Field9ork %irector
1 Eandles selection, training,
super+ision, and e+aluation of
inter+ie2ers and field 2orkers
enior Anal4st
1 Participates in the de+elop#ent of pro-ects
1 Carries out e3ecution of assigned pro-ects
1 Coordinates the efforts of analyst, -unior analyst, < other personnel in the
de+elop#ent of research design and data collection
1 Prepares final report
.ig. 1./ cont.
tatisticianD%ata Processing
1 5er+es as e3pert on theory and
application on statistical techniCues
1 :+ersees e3peri#ental design, data
processing, and analysis
elected Marketing Research Career %escriptions
1-20 Copyright 2010 Pearson Education, Inc.
Marketing Research Suppliers & Services
1
Internal s0ppliers
1
":ternal s0ppliers
1
F0ll-ser!ice s0ppliers
1
4ndicated ser!ices
1
tandardi5ed ser!ices
1
C0stomi5ed ser!ices
1
Internet ser!ices
1
(imited-ser!ice s0ppliers
1
Field ser!ices
1
Foc0s gro0ps and =0alitati!e ser!ices
1
Technical and anal4tical ser!ices
1
Other ser!ices
1-24 Copyright 2010 Pearson Education, Inc.
Criteria for Selecting a Research Supplier

)hat is the reputation of the supplier*

+o they complete pro$ects on schedule*

Are they kno,n for maintaining ethical standards*

Are they fle%i#le*

Are their research pro$ects of high 'uality*

)hat kind and ho, much e%perience does the supplier

have* Has the firm had e%perience ,ith pro$ects similar
to this one*

+o the supplier-s personnel have #oth technical and

non.technical e%pertise*

Can they communicate ,ell ,ith the client*

Competitive #ids should #e compared on the #asis of
'uality as ,ell as price.
1-28 Copyright 2010 Pearson Education, Inc.
Careers in Marketing Research
Career opportunities are availa#le ,ith marketing research
firms (e.g.& AC /ielsen& 0urke"
Careers in #usiness and non.#usiness firms and agencies
,ith in.house marketing research departments (e.g.& !rocter
1 2am#le& Coca.Cola& the 3ederal Trade Commission& 4nited
States Census 0ureau"
Advertising agencies (e.g.& 00+5 6nternational& 5gilvy 1
Mather& 7. )alter Thompson"
!ositions8 ! of marketing research& research
director9assistant director& pro$ect manager& field ,ork
director& statistician9data processing specialist& senior9$unior
analyst& and supervisor
1-29 Copyright 2010 Pearson Education, Inc.
A Sample of Marketing Research &obs
1-(0 Copyright 2010 Pearson Education, Inc.
Preparation for a Career in Marketing Research
Take all the marketing courses you can.
Take courses in statistics and 'uantitative methods.
Ac'uire 6nternet and computer skills. :no,ledge of
programming languages is an added asset.
Take courses in psychology and consumer #ehavior.
Ac'uire effective ,ritten and ver#al communication skills.
Think creatively. Creativity and common sense command a
premium in marketing research.
1-(1 Copyright 2010 Pearson Education, Inc.