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									               Marketing Research

                              Dr. David M. Andrus
                                    Exam 2
                                   Lecture 2
                                                    1
Marketing Research Exam 2 Lecture 2
       Themes of My Presentation
♦   Internal Suppliers of Marketing Research
♦   Marketing Research Industry Growth
♦   Marketing Research Proposals
♦   Business Ethics




    Marketing Research Exam 2 Lecture 2        2
 Who Uses Marketing Research?
♦ Company lacking information about its markets.
♦ AMA study revealed the average marketing research
  budget was $1.9 million for marketing research
  departments.
♦ Consumer and industrial manufacturers, advertising
  agencies, and retailers/wholesalers spend about 1.2%
  of sales on marketing research. Financial services,
  publishers/broadcasters, health services, and utilities
  spend about 0.6%.
♦ Federal Agencies spend $4.5 billion per year on
  marketing research.


 Marketing Research Exam 2 Lecture 2                        3
      Percentage of Companies with Marketing
               Research Department
1.   Retailing/Wholesaling - 91
2.   Manufacturers of Consumer Products - 89
3.   Publishing and Broadcasting - 86
4.   Nonprofit Institutions - 85
5.   Advertising Agencies - 79
6.   Utilities - 79
7.   Financial Services - 76
8.   Manufacturers of Industrial Products - 66
9.   Health Services - 43
Marketing Research Exam 2 Lecture 2              4
    Users of Marketing Research
Companies with Formal Departments (%)




Marketing Research Exam 2 Lecture 2     5
         Top Ten Marketing Research Companies of
                        the World
   Research Company                         Global Revenues       Head Office
1. VNU Inc.                                        3,429           Netherlands
2. Taylor Nelson Sofries.                          1,720           England
3. IMS Health Inc.                                 1,569           USA
4. The Kantar Group                                1,136           USA
5. GFK Group                                       835.5           Germany
6. Ipsos Group                                     753.2           France
7. Information Resources                           572.8           USA
8. Synovate.                                       499.3           England
9. NOP World                                407.1           England
10.Westat Inc.                                     397.8           USA



      Marketing Research Exam 2 Lecture 2                                 6
Growth in Research Spending (US)




Marketing Research Exam 2 Lecture 2   7
     Industry Growth and Trends
♦ 67% of Global Top 25 revenues were from
  outside the United States.
♦ Top 50 USA research firms had US-only
  revenues of $6.3 billion in 2004.
♦ USA firms had worldwide revenues of
  $13.3 billion in 2004.
♦ The average annual real growth rate is
  5.17% for the past 16 years.

 Marketing Research Exam 2 Lecture 2        8
    Top 10 Markets in Value of Marketing Research Data

♦   United States
♦   United Kingdom
♦   Germany
♦   France
♦   Japan
♦   Italy
♦   Canada
♦   Spain
♦   Brazil
♦   Australia



Marketing Research Exam 2 Lecture 2                      9
Good Sources for Marketing Information

The Arbitron Company                    Maritz Marketing Research,
Bureau of Labor Statistics              Inc.
Bureau of Transportation                Nielsen Media Research
Statistics                              J.D. Power & Associates
Census Bureau                           Roper Starch Worldwide
The Conference Board                    SRI International
Donnelley Marketing                     Teenage Research Unlimited
Dun & Bradstreet                        Total Research Corporation
Hispanic Market Connections,
Inc.


  Marketing Research Exam 2 Lecture 2                                10
The New York Chapter of the AMA Publishes a
   Directory of Marketing Research firms




 Marketing Research Exam 2 Lecture 2   11
    Survey of Buying Power
♦Effective Buying Income (EBI) is income after taxes
♦Buying Power Index (BPI)
♦How to calculate BPI:
   BPI = (Population of Market Area A/Total U.S. Population * 2)
            + (EBI of Market Area A/Total U.S. EBI) * 5
            + (Retail Sales of Market Area A/Total U.S. Retail Sales) *3
♦Demographics USA provides several other indices for measuring
 a market’s buying power
   ■ Hi-Tech BPI
   ■ Manufacturing BPI
   ■ BPI’s for Premium, Moderate and Economy Priced products


    Marketing Research Exam 2 Lecture 2                                    12
Statistical Product and Service Solutions (SPSS)
♦ Headquartered in Chicago.
♦ Has more than 40 offices, over 900 employees, and
  1999 revenues of $140 million.
♦ Claims to make marketing research easier by providing
  solutions that discover what customers want and
  predict what they will do.
♦ Products integrate and analyze marketing, customer,
  and operational data.
♦ Developed its own marketing research line of products
  called SPSS MR.
♦ SPSS MR provides users with a complete complement
  of integrated software solutions that cover the entire
  research process.
 Marketing Research Exam 2 Lecture 2                       13
 SPSS Marketing Expertise Abilities
♦ Survey Design: Creates questionnaires using a graphical
  interface and drag-and-drop techniques. Once data is
  gathered the results will be available almost instantaneously.
♦ Data Collection: Can help gather data through either the
  Internet, computer-assisted telephone interviews, or
  computer-assisted personal interviews. After data collection
  is completed, it has software to input the data into the
  computer.
♦ Analysis: Can turn data into information using software
  packages that tabulate and manipulate data, create tables,
  analyze and create statistical models, and data mine.
♦ Publishing: Will turn traditional papers into multimedia
  presentations.


   Marketing Research Exam 2 Lecture 2                             14
 Formulate the Marketing Research Proposal


♦ A marketing research proposal or ITB: Invitation to Bid or
  RFP: Request for Proposal
   ■ defines the marketing management problem
   ■ specifies the research objectives
   ■ details the research method proposed by the researcher
     to accomplish the research objectives
   ■ Summarizes major points in the study




  Marketing Research Exam 2 Lecture 2                          15
     Define the Marketing Manager’s Problem

Speculate on anticipated consequences of the action.
   ♦ What will be the impact on the problem at hand and
     throughout the marketing program if a specific
     marketing action is implemented?
   ♦ What additional problems will be created if a proposed
     solution to the current problem is implemented?




 Marketing Research Exam 2 Lecture 2                          16
   Formulate the Marketing Research Proposal:
      Detail the Proposed Research Method

The proposed research method identifies:
♦ data collection mode
♦ questionnaire design
♦ Sample plan
♦ Dummy tables
♦ Analysis techniques




  Marketing Research Exam 2 Lecture 2           17
              3 Functions of Proposal
♦   Descriptive
♦   Contractual
♦   Selling
♦   Outside clients require more detail




    Marketing Research Exam 2 Lecture 2   18
     Research Proposal Questions
♦ What are the research objectives? Always keep them in
  mind
♦ What are possible primary and secondary data sources?
♦ Which date collection method is best to test your ideas?
♦ What kinds of questions about consumer behavior do you
  want to ask your sample?
♦ How large a sample is needed and what statistics will you
  use to analyze the data?
♦ Set deadlines for completing each stage of the research
  process
♦ Always keep the cost of the study in mind
♦ Managers are usually interested in the first and last stages
  of the research process
  Marketing Research Exam 2 Lecture 2                            19
   Ethics and Marketing Research
♦ AMA Code of Ethics
    ■ Prohibiting 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

 Marketing Research Exam 2 Lecture 2                         20
            Do Marketing Researchers Have
              an Ethical Responsibility?
♦ Ethics : General nature of morals and of specific moral choices:
  moral philosophy and the rules or standards governing conduct of
  a profession.
♦ Business ethics: Moral principles and standards that guide
  behavior in business and good business values dictate..
♦ Social responsibility: Obligation a business assumes toward
  society.
♦ Economic responsibilities: Produce goods and services society
  needs and wants at a price that can perpetuate the business and
  satisfy its obligations to investors.




Marketing Research Exam 2 Lecture 2                                  21
                         Ethical Issues

♦ The Public: Researchers are asked to
  conduct research on dangerous products.
♦ Research to increase tobacco product
  sales to kids?
♦ Research to increase bourbon
  consumption of teens?


Marketing Research Exam 2 Lecture 2         22
                         Ethical Issues
♦ Respondent refusal rates are climbing. Public
  is wary of losing privacy.
♦ Deception should not be used.
♦ Respondents should not be identified if they are
  promised anonymity/confidentiality
♦ Marketing research does invade privacy




Marketing Research Exam 2 Lecture 2                  23
                 Invasion of Privacy
♦ SPAM; sending unwanted email
♦ Industry currently debating opt-out v. opt-in
  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
♦ Respondents must have a reasonable
  expectation they will be contacted via email.

Marketing Research Exam 2 Lecture 2                 24

								
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