The Marketing Research
Industry
Ch 3 2
The Marketing Research Industry:
Evolution of the Industry
•
Charles Coolidge Parlin
is known as the “father
of marketing research.”
Ch 3 3
The Marketing Research Industry:
Evolution of the Industry
•
Parlin conducted the first continuous
marketing research in the early
1900s for the Curtis Publishing
Company.
•
The purpose of Parlin’s research was
to increase advertising for The
Saturday Evening Post magazine.
Ch 3 4
Growth of the Need for
Marketing Research
•
The Industrial Revolution led to
manufacturers producing goods for
distant markets.
•
Manufacturers needed to know about
faraway consumers.
•
This led to the growing need for
marketing research.
Ch 3 5
The Marketing Research
Industry Today
•
World Revenues
–
The marketing research industry
today accounts for about $21.5 billion
spent annually.
–
The top 25 firms can be found in the
report Honomichl Global Top 25 (See
page 44.)
–
The top 50 U.S. firms can be found in
the Honomichl Top 50. (See page 46.)
Ch 3 6
Honomichl Top 25
Ch 3 7
Honomichl Top 50
Ch 3 8
Classifying Firms in the
Marketing Research Industry
•
Research Suppliers
–
Internal Suppliers
–
External Suppliers
•
Limited Service Suppliers
•
Full Service Suppliers
Ch 3 9
The Marketing Research Industry
Classification of Marketing Research
Suppliers
May or may not
be a formal
department
Outside firm
hired to
perform some
sort of
marketing
research
Can perform all
marketing
research
functions for
the client
Can perform
only limited
marketing
research
functions for
the client
Syndicated data
service firms
collect information
that is made
available to
multiple
subscribers.
Standardized
service firms
provide syndicated
marketing
research services,
as opposed to
syndicated data, to
clients.
Customized
service firms offer
a variety of
research services
that are tailored to
meet the client’s
specific needs.
Online research
services firms
specialize in
providing services
online.
Ch 3 10
Industry Structure:
Internal Suppliers
•
Internal suppliers: an entity within the firm
supplies marketing research
•
Methods of Organization
–
Own formal departments: organized
around:
•
Marketing function: ad research, product
research, pricing research, channel…
•
Research process: data analysis, data
collection…
•
Area of application: brands, customers
Ch 3 11
Industry Structure:
Internal Suppliers
•
Methods of Organization…
–
Single individual or committee
–
No responsibility assigned
Ch 3 12
Industry Structure:
External Suppliers
•
External suppliers: outside firms hired to
fulfill a firm’s marketing research needs
•
Methods of Organization:
–
Function: data analysis & collection…
–
Type of research application: ad
research…
–
Geography: domestic, international…
–
Types of customers, finance, health
–
Combination of the above
Ch 3 13
Industry Structure:
External Suppliers
•
Classification:
–
Full service
–
Limited service
Ch 3 14
Where to Find External
Research Suppliers
•
www.greenbook.org
•
www.quirks.com
•
www.bluebook.org
Ch 3 15
Challenges to the Marketing
Research Industry
•
Marketing researchers should focus on
diagnosing problems in the market…
need for portability led to Walkman,
Watchman.
•
Marketing researchers should speed
up marketing research by using IT.
•
Marketing researchers should take an
integrative approach…avoid being
“silos” of isolated information.
Ch 3 16
Challenges to the Marketing
Research Industry
•
Marketing researchers should
expand their strategic impact get
away from standard reports & get
involved in strategic issues.
•
Other criticisms – lack of creativity,
too survey oriented, lack of
understanding of real problems, lack
of concern for respondents.
Ch 3 17
Suggested Improvement:
Certification
•
For several years certification has
been debated.
•
The MRA started a certification
program in February 2005.
•
Professional Researcher Certification
– go to www.mra-net.org, and see
menu item “Certification.”
Ch 3 18
Other Suggestions for Industry
Improvements
•
Auditing…being used in other areas,
i.e. Advertising…audits websites via
Audit Bureau of Circulations.
•
Education…MR industry has made
much progress here. Examples
include AMA’s Notre Dame School of
Marketing Research, Burke Institute,
Advertising Research Foundation
seminars, etc.
Ch 3 19
Some Ethical Marketing Research
Situations: Class Exercises
Ch 3 20
Is this Ethical?
1. A research company decides to
leave a message on prospective
respondents’ answering machines
telling them that if they call back in
the next 24 hours, they will receive
a valuable prize if they take part in a
survey.
Ethical as long as true
Ch 3 21
Is this Ethical?
2. Upon completion of an interview,
the respondent is asked to provide
the names and telephone numbers
of others he or she thinks should
take part in the survey.
Ethical - snowball sampling,
referral sampling
Ch 3 22
Is this Ethical?
3. A door-to-door salesman finds that
by telling people that he is
conducting a survey, they are more
likely to listen to his sales pitch.
Unethical – sugging
What is
frugging?
Ch 3 23
Is this Ethical?
4. The cover letter of a mail
questionnaire says that it will "only
take a few minutes to fill out." But
pretests have shown that at least
fifteen minutes are needed to fill it
out.
Unethical as “few” is vague
Ch 3 24
Is this Ethical?
5. Telephone interviewers are
instructed to assure the respondent
of confidentiality only if the
respondent asks about it.
Ethical as long as confidentiality is
true
Ch 3 25
Is this Ethical?
6. A client insists on inspecting the
completed questionnaires to assess
their validity, but the researcher
suspects that the client is really
interested in finding out what
specific respondents said about the
client.
Unethical if the survey is confidential
or anonymous