1. Learning Objectives 1 The Marketing Research Industry Copyright © 2002 South-Western/Thomson Learning CHAPTER two

2. Learning Objectives 2 1. To appreciate the structure of the marketing research industry. 2. To comprehend the nature of corporate marketing research departments. 3. To learn the various types of firms and their research functions in the market research industry. 4. To understand the impact of the Internet on the marketing research industry. 5. To learn who uses marketing research. 6. To understand the growing importance of strategic partnering. 7. To appreciate the trends in global marketing research.

3. Learning Objectives 3 Level 1. Primary Information Users (Corporate Marketing Departments) The ultimate users of marketing research Marketing research data is needed to: 1. Determine how targets will react to alternative marketing mixes. 2. Evaluate success of operational marketing strategies. 3. Assess changes in the external environment. To learn about the various types of firms and their functions in research. The Evolving Structure

4. Learning Objectives 4 To learn about the various types of firms and their functions in research. The Evolving Structure Corporate Marketing Research Departments The Marketing Research Industry The Internet Impact Users of Marketing Research Strategic Partnering and Global Research General Categories of Institutions Involved in Marketing Research Kraft General Foods Institution Activities, Functions, and Services Level 1. Corporate marketing departments Table 2.1 Level 2. Ad agencies Level 3. Syndicated service firms Custom or ad hoc research firms Level 4. Field service firms Specialized firms Others J. Walter Thompson AC Neilson Market Facts subcontract specialized support services government, universities

5. Learning Objectives 5 Corporate Client A Corporate Client B Custom Research Firm A Custom Research Firm B Syndicated Research Firm X Syndicated Research Firm Y Ad Agency Field Office X Field Service Firm X Field Office Y Field Service Firm Y RRRRRR Interviewer Level 1 Level 2 Level 3 Level 4 Information Users Research Designers and Suppliers Data Collectors Respondents Figure 2.1 RRRR The Structure of the Marketing Research Industry

6. Learning Objectives 6 4. Identify new target markets. 5. Create new marketing mixes for new target markets. Level 2: Information Users (Ad Agencies) serves corporate clients may be ultimate users of research data main business: the development and execution of ad campaigns. To learn about the various types of firms and their functions in research. The Evolving Structure Level 1: Primary Information Users (Cntd)

7. Learning Objectives 7 Level 3: Research Designers and Suppliers sell research services design research studies analyze results make recommendations to client they design research, manage its execution, and buy data collection from other firms To learn about the various types of firms and their functions in research. The Evolving Structure

8. Learning Objectives 8 Level 4: Data Collectors Field service firms collect data for: syndicated research firms custom research firms ad agencies corporations To learn about the various types of firms and their functions in research. The Evolving Structure

9. Learning Objectives 9 Only 15 percent of service companies such as Federal Express and Delta Airlines have marketing departments with more than 10 employees. Companies are conducting less research internally. Our attention will be devoted to marketing departments found in the more sophisticated, larger companies. To learn about the various types of firms and their functions in research. Corporate Marketing Research Departments

10. Learning Objectives 10 Level 3: The Big Marketing Research Companies Four largest firms in the industry: A. C. Nielsen Corporation retail measurement services IMS Health Incorporated pharmacy and hospital audits To learn about the various types of firms and their functions in research. The Marketing Research Industry

11. Learning Objectives 11 Information Resources Incorporates Tracks weekly sales and price for mass merchandisers Nielsen Media Research Television industry To learn about the various types of firms and their functions in research. The Marketing Research Industry

12. Learning Objectives 12 Level 3: Custom or Ad Hoc Research Firms One-of-a-kind marketing research projects Level 3: Syndicated Service Firms Collect and sell the same marketing research to many firms Level 4: Field Service Firms Data collection specialists on a subcontract basis for corporate marketing research departments To learn about the various types of firms and their functions in research. The Marketing Research Industry

13. Learning Objectives 13 Cybermarketing Research Firms Greenfield Online - claims to have the world’s largest Internet-based marketing research panel. Vividence - evaluates the effectiveness of websites. Tracking the popularity of websites: Media Metrix, Relevant Knowledge, Net Ratings Nielson Media Research The Internet Impact To understand the impact of the internet on the marketing research industry.

14. Learning Objectives 14 Cyber Support Firms To provide support in conducting Internet surveys. WebSurveyor Cyberdata: The Internet is Changing the Way Old-Line Marketing Research Support Organizations Deliver Their Product. Sample firms: Survey Sampling Incorporated (SSI) Claritas To understand the impact of the internet on the marketing research industry The Internet Impact

15. Learning Objectives 15 Other Organizations and Individuals Special contributions to marketing research government agencies university bureaus professors To understand the impact of the Internet on the marketing research industry. The Internet Impact

16. Learning Objectives 16 To learn who uses marketing research. External Clients Vendors Franchisees (Using mystery shoppers) Internal Clients New product development, pricing Top Management’s Use of Research Other Users of Marketing Research (Rest of Corp.) Users of Marketing Research

17. Learning Objectives 17 Figure 2.3 Marketing Research Customers LogisticsSales Advertising and Promotion New Product Dev. Brand Managers Pricing Committee Product Engineers Finance Manufac- turing Legal H.R. Mgmt. Other Dept. Senior Mgmt. Marketing Dept. Franchisees Company Vendors External Users or Customers of Marketing Research Internal

18. Learning Objectives 18 To learn about the various types of firms and their functions in research. The Evolving Structure Corporate Marketing Research Departments The Marketing Research Industry The Internet Impact Users of Marketing Research Strategic Parterning and Global Research Ford’s Marketing Research on Sample New Technology Features Sample features are shown below: Table 2.4 Fingerprint Passive Entry Night Vision System Sun Tracking Visor Front Impact Warning Infinite Door Check Skin Temperature Sensor

19. Learning Objectives 19 To appreciate the trends in global marketing research. Global Marketing Research Trends In a strategic partnership, the client and research firm work together. Services provided may include: data collection tracking specialized research activity Strategic Partnering and Global Research

20. Learning Objectives 20 SUMMARY Corporate Marketing Research Departments The Marketing Research Industry Users of Marketing Research Strategic Partnering and Global Research The Evolving Structure

21. Learning Objectives 21 The End Copyright © 2002 South-Western /Thomson Learning