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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

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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

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
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.

Improving Industry Performance

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, cont’d
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

Ethical Issues, con’t
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-

Invasion of Privacy

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