Naresha Malothra Marekting Research Chapter 1
Transcript of 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.