Chapter3 The Marketing Research Industry. I. Introduction Three major trends in today’s MR industries: 1. Globalization, 2. Merges and acquisitions, 3.

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Presentation transcript:

Chapter3 The Marketing Research Industry

I. Introduction Three major trends in today’s MR industries: 1. Globalization, 2. Merges and acquisitions, 3. Online research.

Globalization In 2004, 52.7% of top 50 MR firms’ revenues came from operations outside the U.S. ( according to Marketing News, June 15, 2005). Total U.S. revenues = $6.9 billion in 2004, total worldwide re.= $14 billion.

Merges and Acquisitions Four, merges in Of 10 largest MR firms, seven are owned by firms based outside the U.S in VNU Inc., based in the Netherlands, thru. Acquisition owns Nielsen Marketing Research, Nielsen Media Research, and several other U.S. firms, including National Research Group in L.A. VNU acquired IMS Health in 2005.

Online Research Online survey research accounts for approximately 20% of all marketing research revenue by Online research is more efficient and effective than the traditional marketing research.

Growth in Research Spending in the U.S. Spending for marketing/advertising/public opinion research services within the U.S. was up 9.9% in (Marketing News, June 15, 2005, H3) Spending in research has maintained a sustained growth over last 25 years.

Marketing Research: A Brief History Pre-Marketing Research Era: colonization to the Industrial Revolution Early Development Era: Industrial Revolution to 1920 Questionnaire Era: Quantitative Era: 1940 to 1960 Organizational Acceptance Era: 1960 to 1980 PC Technology Era: 1980 to 1990 Globalization-Online Era: since 1990

Research Suppliers

Industry Structure: Internal Suppliers Internal suppliers: an entity within the firm supplies marketing research Methods of Organization: Own formal departments Area of application Marketing function Research process Single individual or committee No responsibility assigned

Industry Structure: External Suppliers External suppliers: outside firms hired to fulfill a firm’s marketing research needs Methods of Organization: Function Type of research application Geography Type of customer Combination of the above Classification: Full-service Limited service

Industry Improvements Certification Auditing Education

Ethics and Marketing Research Code of Ethics AMA in the area of marketing research: Prohibiting on selling (sugging) or fund raising (frugging) under the guise of conducting research Maintaining research integrity by avoiding misrepresentation and omission of pertinent research data Treating buyers and suppliers fairly

Ethics and Marketing Research Your ethical views are shaped by your philosophy: Deontology: concerned with the rights of the individual Teleology: analyzes a given behavior in terms of its benefits and costs to society

Case 3.1 Creating Thieves in the Name of Research (Please read case 3.1 in p. 79) Video:M/A/R/C