1. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-1 Chapter One Introduction to Marketing Research

2. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-2 Application to Contemporary Issues TechnologyEthicsInternational Be a DM! Be an MR! Experiential Learning Opening Vignette What Would You Do? Figure 1.1 Introduction to Marketing Research: An Overview Definition of Marketing Research Fig. 1.2 A Classification of Marketing Research Marketing Research Process The Role of Marketing Research in Decision Making The Decision to Conduct Marketing Research Fig. 1.3 Fig. 1.4 Fig. 1.5

3. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-3 Figure 1.1 Introduction to Marketing Research: An Overview (cont.) Application to Contemporary Issues (Fig 1.9) TechnologyEthics (Fig 1.10, Tab 1.2) International Be a DM! Be an MR! Experiential Learning Opening Vignette Marketing Research Industry Selecting a Research Supplier Fig 1.6 Table 1.1 Careers in Marketing Research The Role of Marketing Research in MIS and DSS Fig. 1.7 and 1.8 What Would You Do?

4. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-4 Definition of Marketing Research Marketing research is the systematic and objective  identification,  collection,  analysis,  dissemination, and  use of information for the purpose of improving decision making related to the  identification and  solution of problems and opportunities in marketing.

5. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-5 Identification of Information Needed Collection of Data Analysis of Data Dissemination of Information Identifying and Solving Marketing Problems Figure 1.2 Defining Marketing Research Use of Information

6. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-6 Market Research Specifies the information necessary to address these issues Manages and implements the data collection process Analyzes the results Communicates the findings and their implications

7. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-7 Classification of Marketing Research Problem Identification Research Research undertaken to help identify problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research. Problem Solving Research Research undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.

8. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-8 Problem- Identification Research Market Potential Research Market Share Research Image Research Market Characteristics Research Forecasting Research Business Trends Research Marketing Research Figure 1.3 A Classification of Marketing Research Problem- Solving Research Segmentation Research Product Research Pricing Research Promotion Research Distribution Research

9. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-9 Problem-Solving Research  Determine the basis of segmentation  Establish market potential and responsiveness for various segments  Select target markets  Create lifestyle profiles: demography, media, and product image characteristics SEGMENTATION RESEARCH  Test concept  Determine optimal product design  Package tests  Product modification  Brand positioning and repositioning  Test marketing  Control score tests PRODUCT RESEARCH

10. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-10 Problem-Solving Research PRICING RESEARCH  Pricing policies  Importance of price in brand selection  Product line pricing  Price elasticity of demand  Initiating and responding to price changes $ALE PROMOTIONAL RESEARCH  Optimal promotional budget  Sales promotion relationship  Optimal promotional mix  Copy decisions  Media decisions  Creative advertising testing  Evaluation of advertising effectiveness  Claim substantiation 0.00% APR

11. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-11 Problem-Solving Research DISTRIBUTION RESEARCH Determines…  Types of distribution  Attitudes of channel members  Intensity of wholesale & resale coverage  Channel margins  Location of retail and wholesale outlets

12. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-12 Figure 1.4 The Marketing Research Process Step 1: Defining the Problem Step 2: Developing an Approach to the Problem Step 3: Formulating a Research Design Step 4: Doing Field Work or Collecting Data Step 5: Preparing and Analyzing Data Step 6: Preparing and Presenting the Report

13. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-13 Uncontrollable Environmental Factors Economy Technology Competition Laws and Regulation Social and Cultural Factors Political Factors Assessing Information Needs Customer Groups Consumers Employees Channel Members Suppliers Marketing Research Marketing Managers Market Segmentation Marketing Programs Target Market Selection Performance and Control Controllable Marketing Variables Product Pricing Promotion Distribution Marketing Decision Making Providing Information Figure 1.5 The Role of Marketing Research in Marketing

14. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-14 Figure 1.6 Marketing Research Industry: Suppliers and Services Research Suppliers Internal Limited Service Full Service External Other Services Analytical Services Customized Services Syndicated Services Internet Services Field Services Qualitative Services

15. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-15 Marketing Research Suppliers & Services Internal suppliers External suppliers –Full-service suppliers Syndicated services Standardized services Customized services Internet services –Limited-service suppliers Field services Focus groups and Qualitative services Technical and Analytical services Other services

16. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-16 Rank 2006 2005 OrganizationHeadquartersParent country Web site (www.)No. of count ries 1 Global Revenue 3 (USD millions) Percent of global revenue 1 1The Nielsen Co. New YorkU.S.Nielsen.com108$3,696.046.7% 2 3IMS Health Inc. Norwalk, Conn. U.S.Imshealth.com761,958.663.4 3 2Taylor Nelson Sofres plc LondonU.K.tns-global.com751,851.185.0 4 5The Kantar Group* London & Fairfield, U.K.kantargroup.com591,401.463.7 5 4GfKAGNurembergGermanygfk.com571,397.375.8 6 6Ipsos Group SA ParisFranceipsos.com501,077.088.4 7 8SynovateLondonU.K.synovate.com52739.691.1 8 7IRIChicagoU.S.infores.com8665.035.0 9 9Westat Inc.Rockville, Md.U.S.westat.com1425.8─ 10 10Arbitron Inc.New YorkU.S.arbitron.com2329.34.0 11 11INTAGE Inc.**TokyoJapanintage.co.jp2264.80.7 12 14J.D. Power and Associates* Westlake Village, Calif. U.S.jdpa.com8232.626.7 Table 1.1 TOP 25 GLOBAL RESEARCH ORGANIZATIONS

17. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-17 13 12Harris Interactive Inc. Rochester, N.Y.U.S.harrisinteractive.com5216.822.0 14 13Maritz ResearchFenton, Mo.U.S.maritzresearch.com4216.417.7 15 16The NPD Group Inc.Port Washington, N.Y. U.S.npd.com13186.922.1 16 15Video Research Ltd.** TokyoJapanvideor.co.jp3173.70.1 17 17Opinion Research Corp. Princeton, N.J.U.S.opinionresearch.com3154.737.4 18 18IBOPE GroupSao PauloBrazilibope.com.br16103.920.4 19 19Lieberman Research Los AngelesU.S.lrwonline.com478.319.4 20 ─Telephia Inc.San FranciscoU.S.telephia.com171.82.8 21 23comScore Inc.Reston, Va.U.S.comscore.com566.38.6 22 20Dentsu Research Inc. TokyoJapandentsuresearch.co.jp161.2─ 23 22AbtAssociates Inc.Cambridge, Mass.U.S.abtassociates.com153.6─ 24 21Nikkei Research Inc. TokyoJapannikkei-r.co.jp450.7─ 25 25Burke Inc.CincinnatiU.S.burke.com150.013.0 Total$15,522.855.8% Table 1.1 TOP 25 GLOBAL RESEARCH ORGANIZATIONS (Cont.)

18. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-18 Criteria for Selecting a Research Supplier  What is the reputation of the supplier?  Do they complete projects on schedule?  Are they known for maintaining ethical standards?  Are they flexible?  Are their research projects of high quality?  What kind and how much experience does the supplier have? Has the firm had experience with projects similar to this one?  Do the supplier's personnel have both technical and non-technical expertise?  Can they communicate well with the client? Competitive bids should be obtained and compared on the basis of quality as well as price.

19. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-19 Careers in Marketing Research Career opportunities are available with marketing research firms (e.g., AC Nielsen, Burke, Inc., M/A/R/C) Careers in business and non-business firms and agencies with in-house marketing research departments (e.g., Procter & Gamble, Coca-Cola, AT&T, the Federal Trade Commission, the U.S. Census Bureau) Advertising agencies (e.g., BBDO International, Ogilvy & Mather, J. Walter Thompson, Young & Rubicam) Positions: vice president of marketing research, research director, assistant director of research, project manager, field work director, statistician/data processing specialist, senior analyst, analyst, junior analyst, and operational supervisor

20. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-20 Selected Marketing Research Career Descriptions Vice President of Marketing Research Part of company’s top management team Directs company’s 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

21. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-21 Analyst Handles details in execution of project Designs & pretests questionnaires Conducts preliminary analysis of data Junior Analyst Secondary data analysis Edits and codes questionnaires Conducts preliminary analysis of data Fieldwork Director Handles selection, training, supervision, and evaluation of interviewers and field workers Senior Analyst Participates in the development of projects Carries out execution of assigned projects Coordinates the efforts of analyst, junior analyst, & other personnel in the development of research design and data collection Prepares final report Statistician/Data Processing Serves as expert on theory and application on statistical techniques Oversees experimental design, data processing, and analysis Selected Marketing Research Career Descriptions

22. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-22 Preparation for a Career in Marketing Research Take all the marketing courses you can. Take courses in statistics and quantitative methods. Acquire Internet and computer skills. Knowledge of programming languages is an added asset. Take courses in psychology and consumer behavior. Acquire effective written and verbal communication skills. Think creatively. Creativity and common sense command a premium in marketing research.

23. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-23 Expert Systems Internal Billing, Production, and Other Records Decision Support Systems Marketing Information Systems Figure 1.7 The Development of MIS and DSS = External Market Information +

24. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-24 MIS Structured problems Use of reports Information displaying restricted Can improve decision making by clarifying new data Figure 1.8 Marketing Information Systems (MIS) vs. Decision Support Systems (DSS) Figure 1.9 Marketing Information Systems (MIS) vs. Decision Support Systems (DSS)Figure 1.9 Marketing Information Systems (MIS) vs. Decision Support Systems (DSS) DSS Unstructured problems Use of models Adaptability Can improve decision making by using “what if” analysis

25. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-25

26. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-26 Figure 1.10 Stakeholders in Marketing Research: An Ethical Perspective Client Marketing Researcher Public Respondents

27. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-27

28. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-28

29. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-29

30. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-30 Domestic AAPOR: American Association for Public Opinion Research (www.aapor.org) AMA: American Marketing Association (www.ama.org) ARF: The Advertising Research Foundation (www.thearf.org) 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.researchindustry.org) Marketing Research Associations Online

31. © 2009 Pearson Education, Inc publishing as Prentice Hall 1-31 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) Marketing Research Associations Online