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
• Organizational Acceptance Era: 1960 to 1980
• PC Technology Era: 1980 to 1990
• Globalization-Online Era: since 1990
Research Suppliers
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
Research Suppliers
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.
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, 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
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-
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