The Marketing Research Industry The Marketing Research Industry: Evolution of the Industry • Charles Coolidge Parlin is known as the “father of marketing research.” Ch 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 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 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 Ch page 46.) Honomichl Top 25 Ch Honomichl Top 50 Ch Classifying Firms in the Marketing Research Industry • Research Suppliers – Internal Suppliers – External Suppliers • Limited Service Suppliers • Full Service Suppliers Ch The Marketing Research Industry Outside firm May or may Can perform hired to formal not belimited only a all marketing perform some department marketing research sort of research functions for marketing for functions the client research the client Classification of Marketing Research Suppliers Online research Standardized Syndicatedfirms Customized services data service firms service firmsin offer service specialize provide firms collect a variety services providing syndicated of informationservices research online marketing that is madeareservices, that available research tailored to multiplethe asto meet to opposed subscribers data, client’s specific syndicated toneeds clients Ch Industry Structure: Internal Suppliers • Internal suppliers: an entity within the firm supplies marketing research • Methods of Organization – Own formal departments: organized around: Ch • Marketing function: ad research, product research, pricing research, channel… • Research process: data analysis, data collection… 10 • Area of application: brands, customers Is this Ethical? 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 Ch 20 Is this Ethical? 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 21 Is this Ethical? 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? Ch 22 Is this Ethical? 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 23 Is this Ethical? Telephone interviewers are instructed to assure the respondent of confidentiality only if the respondent asks about it Ethical as long as confidentiality is true Ch 24 Is this Ethical? 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 25 Is this Ethical? 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 indicated agreement to be contacted by the client's sales personnel Ethical…They agreed to this Ch 26 Ethical Issues with Online Surveys • Spam surveys… Illegal! • Opt-In vs Opt-Out Ch 27 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 Ch the behavior is judged to be ethical 28 Why are Ethical Issues Problematic? Marketing Research Situation or Practice Deontologist says… Teleologist says… Unethical No problem Wrong! Okay if it helps folks Unethical Okay if it gets to the truth Mystery shopper Frugging Disguised survey Ch 29 Marketing Research Code of Ethics • • • • Ch CASRO: MRA: ESOMAR: PMRS: www.casro.org www.mra-net.org www.esomar.nl www.pmrs-aprm.com 30 Ethical Issues • Sugging • Frugging • Misrepresentation and omission of pertinent research data • Treating clients, suppliers & the public unfairly Ch 31 Ethical Issues with Respondents • Respondent cooperation has been going down • Marketing researchers should: – Eliminate or keep deception to a minimum – If promised, guarantee anonymity or confidentiality – Fight invasions of privacy such as telemarketing and SPAM Ch 32 Panels • 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 33 Some Internet Sites About Careers in Marketing Research • Quirk’s • www.burke.com • Occupational Outlook Handbook Ch 34 ... belimited only a all marketing perform some department marketing research sort of research functions for marketing for functions the client research the client Classification of Marketing Research Suppliers... supplies marketing research • Methods of Organization – Own formal departments: organized around: Ch • Marketing function: ad research, product research, pricing research, channel… • Research. ..The Marketing Research Industry: Evolution of the Industry • Charles Coolidge Parlin is known as the “father of marketing research. ” Ch The Marketing Research Industry: Evolution