The Marketing

1
Chapter
3
The Marketing Research Industry
2
I. Introduction

• Three major trends in todays MR industries
• 1. Globalization,
• 2. Merges and acquisitions,
• 3. Online research.

3
Globalization

• In 2004, 52.7 of top 50 MR firms revenues came
  from operations outside the U.S. ( according to
  Marketing News, June 15, 2005). Total U.S.
  revenues 6.9 billion in 2004, total worldwide
  re. 14 billion.

4
Merges and Acquisitions

• Four, merges in 2004.
• Of 10 largest MR firms, seven are owned by firms
  based outside the U.S in 2005.
• VNU Inc., based in the Netherlands, thru.
  Acquisition owns Nielsen Marketing Research,
  Nielsen Media Research, and several other U.S.
  firms, including National Research Group in L.A.
  VNU acquired IMS Health in 2005.

5
Online Research

• Online survey research accounts for approximately
  20 of all marketing research revenue by 2005.
• Online research is more efficient and effective
  than the traditional marketing research.

6
Growth in Research Spending in the U.S.

• Spending for marketing/advertising/public opinion
  research services within the U.S. was up 9.9 in
  2004. (Marketing News, June 15, 2005, H3)
• Spending in research has maintained a sustained
  growth over last 25 years.

7
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

8
Research Suppliers
9
Industry Structure Internal Suppliers

• Internal suppliers an entity within the firm
  supplies marketing research
• Methods of Organization
• Own formal departments
• Area of application
• Marketing function
• Research process
• Single individual or committee
• No responsibility assigned

10
Industry Structure External Suppliers

• External suppliers outside firms hired to
  fulfill a firms marketing research needs
• Methods of Organization
• Function
• Type of research application
• Geography
• Type of customer
• Combination of the above
• Classification
• Full-service
• Limited service

11
Industry Improvements

• Certification
• Auditing
• Education

12
Ethics and Marketing Research

• Code of Ethics
• AMA in the area of marketing research
• Prohibiting on 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 buyers and suppliers fairly

13
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

14
Case 3.1Creating Thieves in the Name of
Research(Please read case 3.1 in p.
79)VideoM/A/R/C