Marketing ResearchSlide 2Marketing Research History & BackgroundThe Marketing ConceptMarketing Research DefinedAspects of the DefinitionInformation & Decision-MakingWhy Do Marketing Research?Slide 9Another Way of Looking at ThisMarketing Research IndustryTypes of FirmsSlide 13Unethical Activities by the Client/Research UserEthical IssuesEthical or Unethical?Slide 17Five Major TrendsThe Marketing Research ProcessMarketing ResearchIntroductionAngela D’Auria Stanton, Ph.D.Marketing ResearchAnybody Can Do ItMarketing ResearchHistory & BackgroundMarketing research is not something new‑‑it goes a long way back.The children of Israel sent interviewers to sample the market and the produce of Canaan.1308 the Johann Fugger family used marketing research in their international sale of textiles.1720 Daniel Defoe's "A Tour Through the Whole Island Of Great Britain" presented a careful inventory of the business and economic resources of England and Scotland.July 24, 1824 The Harrisburg Pennsylvania reported a straw vote at Wilmington, Delaware. Andrew Jackson received 335, John Quincy Adams 169, Henry Clay 19, and William H. Crawford 9.1879 N. W. Ayer and Son applied marketing research to advertising problems.1895 Professor Barlow Gale of the University of Minnesota is credited with the first mail questionnaire to advertising practitioners.Curtis Publishing Company established the first marketing research department at the turn of the century – the Campbell’s Soup story.1911 R. O. Eastman working for the Kellogg Company conducted a postcard survey to determine which magazines were read by different classification of people.1917 Eastman conducted a survey to determine the market value for the trade name MAZDA for General Electric.Etc., etc.The Marketing ConceptWhat is it?Where/How does Marketing Research fit in?The case of the quarter inch drill bit…did they follow the marketing concept?Marketing Research DefinedThe difference between market research and marketing researchDefinition from the American Marketing Association:Marketing research is the function which links the consumer, customer, and public to the marketer through information‑‑ information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.A simpler definition:Marketing research is the process of gathering data and transforming it into information for the purpose of marketing management decision making.Aspects of the DefinitionIt is a logical, systematic, empirical and replicatable processDesigning methods for collecting informationManaging the information collection processAnalyzing and interpreting resultsCommunicating findings to decisionIt aids in decision-making – BUT it does NOT make decisions!It is a large importer of methodologiesInformation & Decision-MakingFrom a practical point of view, information must possess certain characteristics if it is to be useful for decision making. This information must be:CurrentSufficientAvailableRelevantAccurateReliableWhy Do Marketing Research?To learn something newTraditionTo gain agreementLegal CasesEvaluate elements of the marketing mixSTRATEGIC DECISION AREASFOR MARKETING RESEARCHPRODUCT PLACE PROMOTION PRICEFeaturesAccessoriesInstallationInstructionsServiceWarrantyProduct LinesPackagingBrandingObjectivesChannelsMarket ExposureKinds of MiddlemenKinds and Locations of StoresWho Handles Transporting and StoringService LevelsObjectivesMarket ExposureSales PeopleKindNumberSelectionTrainingMotivationAdvertising TargetsKinds of AdsMedia TypeCopy ThrustPrepared by Whom Sales PromotionPublicityObjectivesFlexibilityLevelChanges Over Product Life CycleGeographic TermsDiscountsAllowancesAnother Way of Looking at ThisMarketing Research IndustryThere’s still growth (http://www.marketingpower.com/ResourceLibrary/publications/MarketingNews/2008/42/11/Hono50-08.pdf) Revenue Increases attributed:To post sale customer satisfaction studiesTo retail driven product scanning systemsTo database development for long-term brand managementTo international research studiesTypes of FirmsTypes of Marketing Research FirmsInternalExternal (the Honomichl 50)Full Service Research FirmsCustomized – provides highly specialized servicesStandardized – provides syndicated business services which include purchase diary panel audits and advertising recall data made or developed from a common data pool or databaseFacilitating AgenciesField servicesIndependent consultantsAdvertising agenciesFundamental Business skillsCommunication skillsInterpersonal skillsStatistical skillsMarketing Research skillsAbility to understand and interpret secondary dataPresentation skillsForeign-language competencyNegotiation skillsComputer proficiencyCritical thinkingChanging Skills For A Changing Industry++Soliciting bids with no intentions of hiringUsing the information from the proposals yourselfPromising a prospective research provider a long-term relationship or additional projects to get a low priceUnethical Activities by the Client/Research UserUnethical Activities by the Research Provider or Research CompanyUnethical pricing practicesDo not provide the promised incentiveCreate respondent abuseSelling unnecessary research serviceFalsifying dataDuplicating actual response dataManipulating the data inappropriatelyUnethical Activities by the RespondentProviding dishonest answers or faking behaviorEthical Issueshttp://www.mra-net.org/pdf/expanded_code.pdf http://www.mra-net.org/pdf/internet_ethics_guidelines.PDFhttp://www.casro.org/codeofstandards.cfm http://www.esomar.org/uploads/pdf/ESOMAR_Codes&Guidelines_OpinionPolling_v5.pdfEthical or Unethical?A food warehouse club advertises “savings up to 30% after a survey showed a range of savings from 2 to 30% below average prices for selected items.A researcher tells a potential respondent that an interview will last 10 minutes rather than the 30 minutes he or she actually anticipates?A radio station broadcasts the following message during a syndicated rating service’s rating period: “Please fill out your diary” (which lists what media the consumer has been watching or