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Chapter
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The Marketing Research Industry
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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

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Research Suppliers
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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.

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Industry Structure External Suppliers

• External suppliers outside firms hired to
  fulfill a firms 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 servicesee next slide

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Research Suppliers
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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.

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Other Suggestions For Industry Improvements

• CertificationBeing promoted by AMA
• AuditingBeing used in other areas, i.e.
  Advertising..audits websites via Audit Bureau of
  Circulations.
• EducationMR industry has made much progress
  here. Examples include AMAs Notre Dame School
  of Marketing Research, Burke Institute,
  Advertising Research Foundation seminars, etc.

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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 buyers confidential information.
  Suppliers Being asked for phony RFPs, not being
  paid by buyers

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Ethical Issues, contd

• 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?

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Ethical Issues, cont

• 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 persons
  privacy
• Respondents should have right to choose to
  participate

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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-

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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

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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