The marketing research industry by jpl7986

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									Chapter 3



      The Marketing
     Research Industry
       Marketing Research: A Brief History



• Pre-Marketing Research Era: colonization to the
  Industrial Revolution
• Early Development Era: Industrial Revolution to 1920
• Questionnaire Era: 1920-1940
• 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: Organized Around:
     • Marketing function: ad research, product research,
       pricing research, channel …
     • Research process: data analysis, data collection…
     • Area of application: brands, customers, etc.
  • Single individual or committee
  • In some cases no one is specifically assigned
    such tasks on a full time basis.
    Industry Structure: External Suppliers

• External suppliers: outside firms hired to fulfill a
  firm’s marketing research needs
• Methods of Organization:
   • Function: data analysis, data collection, etc.
   • Type of research application: ad research, etc.
   • Geography: domestic, international, etc.
   • Type of customer: finance, health
   • Combination of the above
• Classification:
   • Full-service
   • Limited service…see next slide
Research Suppliers
 Improving Industry Performance

• Industry is performing well but could stand some
  improvements
• Focus on diagnosing problems in the market
  instead of rushing to test a product/service (The
  Walkman, developed without MR, was created to
  solve need for portability. Sony diagnosed a
  need in the market).
• Need to use IT to speed up MR process
• Research efforts should be integrated..too
  splintered
• MR needs to be involved in strategic decisions
  (Should we be in this business v. Is this the best
  product feature?) Too often, MR is used to test
  tactics.
Other Suggestions For Industry Improvements




  • Certification…Being promoted by AMA
  • Auditing…Being used in other areas, i.e.
    Advertising..audits websites via Audit Bureau of
    Circulations.
  • 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.
       Ethics and Marketing Research



• AMA Code of Ethics
    • Prohibits 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 others (buyers and suppliers) fairly
      Buyers: Being sold unnecessary research, supplier firms
       sharing buyer’s confidential information. Suppliers: Being
       asked for phony RFP’s, not being paid by buyers
      Ethical Issues, cont’d

• The Public: Should researchers be
  asked to conduct research on
  consumption of potentially dangerous
  products? For example, doing research
  to find ways to increase consumption of
  high-sugar and/or high-fat content
  products by kids or ways to increase
  tobacco use by teens?
        Ethical Issues, con’t

• Respondents – example, study finds that
  refusal rates are climbing often because
  public is wary of losing privacy.
• Deception should be eliminated.
• Respondents should not be identified if they
  are promised anonymity/confidentiality
• Invasions of privacy (permission issue);
  marketing research should not invade a
  person’s privacy…
• Respondents should have right to choose to
  participate
         Invasion of Privacy

• SPAM; sending unwanted email
• Industry currently debating opt-out vs. opt-in
  (“active consent”) standards (opt-in much
  stricter)
• Online Survey Research: Abused
  respondents via SPAM initially. Today,
  industry is a leader in anti-spam legislation.
  Researchers must have a preexisting relationship
  with potential online respondents and the
  respondents must have a reasonable expectation
  that they will be contacted via email. See CASRO
  p.71-
       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
      Ethics and Marketing Research




• Your ethical views are shaped by your philosophy:
  are these actions “ethical” or not – why?
   • Observation study – choosing product in
     supermarket
   • Observation study – buying shoes in store
   • Focus group with client representatives
     watching; participants not informed

								
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