MARKETING RESEARCH PART 3 pot

Ch 3 2The Marketing Research Industry: Evolution of the Industry • Charles Coolidge Parlin is known as the “father of marketing research.”... The Marketing Research Industry: Evolution

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.”

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

Honomichl Top 50

• Limited Service Suppliers

• Full Service Suppliers

The Marketing Research Industry

Classification of Marketing Research Suppliers

Ch 3 10

Industry Structure:

Internal Suppliers

• Internal suppliers: an entity within the

firm supplies marketing research

– Function: data analysis & collection…

– Type of research application: ad

research…

– Geography: domestic, international…

– Types of customers, finance, health

– Combination of the above

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

strategic issues.

• Other criticisms – lack of creativity,

too survey oriented, lack of

understanding of real problems, lack

of concern for respondents

• 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

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

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?

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

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

Ch 3 26

Is this Ethical?

7 In the appendix of the final report,

the researcher lists the names of all respondents who took part in the

survey, and places an asterisk

beside the names of those who

Ethical Issues with Online

Surveys

• Spam surveys…

• Opt-In vs Opt-Out

Illegal!

Ch 3 28

Why are Ethical Issues

Problematic?

• Two competing ethical philosophies:

– Deontology holds that if an (any)

individual's rights are violated, then

the behavior is not ethical

– Teleology says to judge a given

behavior in terms of its benefits and costs to society: if there are individual costs but group benefits, then there are net gains (versus net losses) and the behavior is judged to be ethical

Why are Ethical Issues

Problematic?

Marketing Research

Situation or Practice

Deontologist says…

Teleologist says…

Ethical Issues

• Sugging

• Frugging

• Misrepresentation and omission of

pertinent research data

• Treating clients, suppliers & the

public unfairly

• Marketing researchers should:

– Eliminate or keep deception to a

• Marketing research companies are

making greater use of panels

• Recruiting respondents who agree to participate in future studies

• Panel Equity, the value of having

access to a large number of

consumers willing to cooperate in

studies, will increase in the future

Ch 3 34

Some Internet Sites About

Careers in Marketing Research

• Quirk’s

• www.burke.com

• Occupational Outlook Handbook