Role of Marketing Research

1. Role of Marketing Research Chapter 1

2. Placement The Task of Marketing Management Product Price Target Market Promotion Gilbert A. Churchill, Jr. and J. Paul Peter, Marketing: Creating Value for Customers, 2nd ed. (Burr Ridge, IL.: Irwin/McGraw Hill, 1998), p. 22. Source: SLIDE 1-1

3. The Marketing Environment Economic Environment Political/Legal Environment Marketing Mix Competitive Environment Social Environment Source: Gilbert A. Churchill, Jr. and J. Paul Peter, Marketing: Creating Value for Customers, 2nd ed. (Burr Ridge, IL.: Irwin/McGraw Hill, 1998), p. 29. Technological Environment Natural Environment SLIDE 1-2

4. Definition of Marketing Research • Marketing research is the firm’s formal communication link with the environment. SLIDE 1-3

5. Could marketing research be used to investigate the following? How? • What is our product’s per unit profit margin? • Are there more efficient channels of distribution for our products? • Which brand name projects the image we want for our product? • How many suppliers should we purchase from? • What kinds of firms use our services? • What is the most effective trade promotion program? • What is our reputation with government regulatory agencies? SLIDE 1-4

6. An outdoor advertising firm A local bank A dairy farm An athletic department A nature conservation group An alternative rock band A steel manufacturer The Food and Drug Administration A movie theater A university A direct seller of cosmetics A hospital How might each of these organizations use marketing research? SLIDE 1-5

7. Who Does Marketing Research? • Producers of Products and Services • Advertising Agencies • Marketing Research Companies • Others SLIDE 1-6

8. The World’s 10 Largest Marketing Research Firms Global Research Parent Revenues Organization Country (U.S. $ in millions) 1. VNU NV Netherlands $2,400.0 2. IMS Health Inc. U.S. 1, 171.0 3. WPP plc U.K. 1, 006.9 4. Taylor Nelson Sofres plc U.K. 813.2 5. Information Resources Inc. U.S. 555.9 6. GfK Group Germany 479.6 7. NFO Worldgroup Inc. U.S. 452.9 8. Ipsos Group SA France 429.9 9. NOP World U.K. 324.7 10. Westat Inc. U.S. 285.8 SLIDE 1-7

9. Marketing Research Job Titles and Responsibilities Research Director/Vice President of Marketing Research: This is the senior position in research. The Director is responsible for the entire research program of the company. Accepts assignments from superiors or from clients, or may, on own initiative, develop and propose research undertakings to company executives. Employs personnel and exercises general supervision of the research department. Presents research findings to clients or to company executives. Assistant Director of Research: This position usually represents a defined “second in command,” a senior staff member having responsibilities above those of other staff members. Statistician: Duties are usually those of an expert consultant on the theory and application of statistical techniques to specific research problems. Usually responsible for experimental design and data processing. SLIDE 1-8

10. Marketing Research Job Titles and Responsibilities Senior Analyst: Usually found in larger research departments. Participates with superior in initial planning of research projects and direct execution of projects assigned. Operates with minimum supervision. Prepares, or works with analysts in preparing, questionnaires. Selects research techniques, makes analyses, and writes final report. Budgetary control over projects and primary responsibility for meeting time schedules rest with the Senior Analyst. Analyst: The Analyst usually handles the bulk of the work required for the execution of research projects, often works under a Senior Analyst. The Analyst assists in questionnaire preparation, pre-tests them, and makes preliminary analyses of results. Most of the library research or work with company data is handled by the Analyst. SLIDE 1-9

11. Marketing Research Job Titles and Responsibilities Junior Analyst: Working under rather close supervision, Junior Analysts handle routine assignments. Editing and coding of questionnaires, statistical calculations above the clerical level, simpler forms of library research are among their duties. A large portion of the Junior Analyst’s time is spent on tasks assigned by superiors. Librarian: The Librarian builds and maintains a library of reference sources adequate to the needs of the research department. Clerical Supervisor: In larger departments, the central handling and processing of statistical data are the responsibility of one or more Clerical Supervisors. Duties include work scheduling, and responsibility for accuracy. SLIDE 1-10

12. Marketing Research Job Titles and Responsibilities Field Work Director: Usually only larger departments have a Field Work Director who hires, trains, and supervises field interviewers. Full-time Interviewer: The Interviewer conducts personal interviews and works under direct supervision of the Field Work Director. Few companies employ full-time interviewers. Tabulating & Clerical Help: The routine, day-to-day work of the department is performed by these individuals. SLIDE 1-11

13. Why Study Marketing Research? • Some students eventually become marketing researchers. • Everyone needs to be a smarter consumer of marketing research. • Every manager needs to understand what marketing research CAN and CANNOT do. SLIDE 1-12