2-2. Who Conducts Marketing Research?

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CHAPTER 2 • THE MARKETING RESEARCH INDUSTRY



DIY research can provide the information needed to solve the user’s problem in a costeffective way. An increasing number of tools are being developed for firms to conduct their

own marketing research. Examples of DIY marketing research tools are online survey platforms (such as Qualtrics and SurveyMonkey), statistical analysis tools (such as SPSS, SAS,

and R), social media monitoring tools (such as Hootsuite [see Chapter 5]), and data analysis and visualization dashboards (such as those offered by Burke and Tableau). Marketing

Research Insight 2.1 introduces the Digital Dashboard, by Burke, Inc., as an example of

online data tools.



MARKETING RESEARCH INSIGHT 2.1



Digital Marketing Research



Moving Beyond the Traditional Research Report: Digital Dashboard from Burke, Inc.

Burke, Inc., has developed an online reporting

tool that allows clients to

access and create reports

that are updated in near

real time as data are collected in the field. The

Digital Dashboard ® is a

Michael Webster, Senior Vice

web-based

application that

President, Research Solutions

can be accessed worldwide

and enables users to create custom views of their data as well

as access predefined reports. The flexibility of this application



allows users to analyze data themselves to help them make better decisions and ensure that everyone involved in the research

project can interact with the data. Traditionally, the client did

not see any data until all data were collected and analyzed and

the final written report was prepared. Additionally, the traditional printed research report was not interactive. The manager

who needed to examine the data differently than reported had

to make a special request and wait for further processing. In

many cases, the manager would forgo the additional work.

The Digital Dashboard is an evolution in reporting that removes

the barriers to further analyzing data that are present in traditional reporting methods. Like a driver monitoring a vehicle’s



FIGURE 2.1 Digital Dashboard



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dashboard for important information, clients using the Digital

Dashboard can monitor the entire research project and input

custom changes to make sure project results take them to the

right destination—making the correct decision.

The Digital Dashboard is comprised of modules that allow

the user to interact with data in multiple ways. The Report Builder

module enables a user to create multiple charts and tables by

following a guided wizard and to analyze and display data in

the most meaningful way. These custom reports can then be

shared with other users in the organization. Once shared, a user

can continue to work with the report to meet specific needs.

The Catalog Builder module enables a user to view respondentlevel data. The user takes advantage of the same guided wizard

available in the Report Builder to create views in this module as

well. Data can be exported or scheduled to be delivered at regular intervals by email from this portion of the tool. The Project

Background module provides a place for the client to communicate important details about the project and offer guidelines for

interpreting the results. The Digital Dashboard can be used for

online surveys as well as other data collection modes, such as

telephone and mail surveys and mall-intercept surveys.



THE INDUSTRY STRUCTURE



53



Visit Burke, Inc., at www.burke.com.

Mike Webster has played a leading role in bringing Burke

Interactive to the forefront of Internet research. A key developer of Burke’s Digital Dashboard, Webster has designed online

reporting solutions for leading-edge clients in a wide variety

of industries, including information technology, telecommunications, financial services, and consumer goods. He serves as

Burke’s resident expert on data collection and online reporting

software, working with a variety of languages and platforms.

His title is Senior Vice President, Research Solutions.

Source: Text and photos courtesy of Michael Webster, Burke, inc.



While DIY has its place, business owners and managers often do not have the time or

expertise to feel confident about using DIY for important issues and will hire marketing

research professionals to assist them with their information needs.

SUPPLY-SIDE MARKETING RESEARCH

Research that is conducted by an outside firm to fulfill a company’s marketing research

needs is called supply-side research. A firm that is engaged in supply-side marketing

research is often referred to as an agency, or simply as a supplier. These firms specialize

in marketing research and offer their services to buyers needing information to make more

informed decisions. In most cases, client-side marketing researchers also purchase research

from marketing research suppliers. General Motors, for example, while conducting research

on electric cars, may hire a research firm in California to provide feedback from consumers

who test-drive prototype cars. Large and small firms, for-profit and not-for-profit organizations, and government and educational institutions purchase research information from

suppliers.



2-3



Supply-side marketing

research is research

that is conducted by an

outside firm hired to fulfill

a company’s marketing

research needs. A supplier

firm may be referred to as

an agency or simply as a

supplier.



The Industry Structure



FIRM SIZE BY REVENUE

Every year the American Marketing Association (AMA) publishes two reports on the marketing research industry on its website and in the publication Marketing News. The AMA

Gold Global Top 50 (formerly the Honomichl Global Top 25) report ranks the top marketing

research firms in the world by revenue earned. These firms include proprietorships as well

as international corporations with tens of thousands of employees. Table 2.1 lists the top 10

revenue-producing firms from the 2015 AMA Gold Global Top 50 report.

As Table 2.1 indicates, a few firms dominate the industry in terms of size based on

employees and revenues. The 26th firm in the report has revenues under $100 million. Still,

there is extreme competition in the industry. Certainly, the larger firms have advantages, but

many small firms develop new approaches and techniques and rely on talented personnel to



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To view the AMA Gold

Global Top 50 and the

AMA Gold Top 50 reports,

go to the AMA website at

www.ama.org and search

“Top 50.”



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CHAPTER 2 • THE MARKETING RESEARCH INDUSTRY



TABLE 2.1

Rank



The Top 10 Global Marketing Research Firms



Company



Headquarters



Website



Employees



Global Revenues



1



Nielsen Holdings N.V.



New York



2



Kantar



London



Nielsen.com



42,000



$5,888,100,000



Kantar.com



23,400



$3,389,200,000



3



IMS Health Inc.



4



Ipsos S.A.



Danbury, CT



IMSHealth.com



15,000



$2,544,000,000



Paris



Ipsos-NA.com



16,530



$2,276,600,000



5

6



GfK SE



Nuremberg



GfK.com



13,380



$1,985,200,000



IRI



Chicago



IRIWorldwide.com



4,547



$845,400,000



7



Westat Inc.



Rockville, MD



Westat.com



2,011



$582,500,000



8



dunnhumby Ltd.



London



dunnhumby.com



1,000



$462,000,000



9



INTAGE Group



Tokyo



Intage.co.jp



2,283



$402,000,000



Wood MacKenize



Edinburgh



WoodMac.com



957



$360,700,000



10



Source: Bowers, D. (2015, August). 2015 AMA Global Top 25 Research Report. Marketing News, pp. 35–75. See original article for complete

details on revenues and other information. Reprinted with permission.



Full-service supplier

firms have the capability

to conduct the entire

marketing research project

for buyer firms.



© kRie/Shutterstock



Limited-service supplier

firms specialize in one or,

at most, a few marketing

research activities.



be competitive with larger firms. The AMA also publishes the AMA Gold Top 50, listing successful U.S. marketing research firms (report available on the AMA website and published in

Marketing News).

TYPES OF FIRMS AND THEIR SPECIALTIES

Firms in the research industry can be classified into two main categories: full-service and

limited service firms. Full-service supplier firms have the capability to conduct the entire

marketing research project for buyer firms. Full-service firms offer clients a broad range of

services; they often define the problem, specify the research design,

collect and analyze the data, and prepare the final written report. Typically, these are larger firms with the expertise and necessary facilities

to conduct a wide variety of research that may range from qualitative

studies to large international surveys to modeling effects of a proposed marketing mix. Most of the research firms found in the AMA

Global 25 and AMA Top 50 are full-service firms.

Limited-service supplier firms specialize in one or, at most, a

few marketing research activities. Firms can specialize in marketing

research services such as online communities, questionnaire development and pretesting, data collection, or data analysis. Some firms

specialize in specific market demographic segments such as senior

citizens or Hispanics. Other firms specialize in different types of

industries, such as airline, sports, or pharmaceuticals.

Major types of marketing research services are listed in Table 2.2.

However, industry resources are available that provide a better

understanding of the many different types of research firms and their

specialties. Three professional organization that publish these listings are GreenBook, MRA’s, Blue Book, and Quirk’s, as showcased

in the Active Learning Exercise, “Using the Marketing Research

Directories.”



Full-service supplier firms conduct a large variety

of research.



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INDUSTRY PERFORMANCE

How well has the marketing research industry performed in terms

of revenues? ESOMAR, an international association of research



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TABLE 2.2



THE INDUSTRY STRUCTURE



55



Major Types of Marketing Research Services



Type



Description



Example Firms



Syndicated Data Services



Analyze the trends and consumer behavior

within an industry and sold to many companies



The Nielsen Co., SymphonyIRI Group,

Arbitron



Packaged Services



Use a proprietary process to conduct a service

such as test marketing or measuring customer

or employee satisfaction



GfK, Video Research LTD, Burke, Inc.



Online Research Specialists



Provide client services associated with measur- Comscore, Inc., Harris Interactive, Knowledge

ing online consumer behavior and measureNetworks, Toluna, Mindfield Internet Panels,

ment or online data collection

FocusVision



Customized Services



Provide services customized to individual

clients’ needs



All of the major firms can do this. Some

examples include Burke, Inc., Kantar,

Ipsos SA, Synovate, Maritz



Industry or Market Segment

Specialists



Specialize in a particular industry or a market

segment



IMS Health, Inc., Westat Inc., Latin Facts, Inc.,

Olson Research Group, Inc.



Track eye movement to determine better

package designs, advertising copy, etc.

Conduct research using mobile devices such

as iPads or smartphones

Use different sampling methods to draw samples to suit client’s research objectives

Observe brain activity as consumers are

exposed to stimuli such as packages or ads

Determine firms’ target markets, locate these

consumers, and determine other characteristics of these consumers such as media habits

Monitor for relevant buzz over the social

media and attach meaning for companies and

their brands

Collect data using a variety of methods:

telephone, online, person to person, mall

intercept



The PreTesting Company



Technique Specialty

a. Eye Tracking

b. Mobile Research

c. Sampling

d. Neuroimaging

e. Market Segmentation



f. Social Media Monitoring



g. Field Services



Kinesis Survey Technologies,

Cint+Mobile, NPolls

SSI, uSamp, Research Now, Peanut Labs

Neurofocus (Nielsen), Sands

ESRI, Nielsen Claritas



Decooda, Conversition



MktgInc., Readex Research, I/H/R Research

Group, Focus Market Research, Irwin,

Fieldwork, Schlesinger Associates



professionals, estimates worldwide revenues for the marketing research industry at more than

$43 billion.11 The AMA Gold Report states that the top 50 marketing research firms in the

world brought in more than $28 billion in 2014.12 According to the AMA report, the top

50 firms showed a healthy growth in revenues of 10.6% from 2013 to 2014. In 2014, the largest marketing research firm in the world by far was Nielsen Inc., with its $6.3 billion revenue

accounting for over one-fourth (26.4%) of the top 50 firms’ revenue. The report also showed

a 7.9% increase in employees.13

The marketing research industry relies on derived demand. As client firms develop new

products, expand into new markets, examine new opportunities, and develop and evaluate

new promotional campaigns, they need information to guide their decisions. As the world

economy continues to improve, client firms’ businesses will grow and so will the revenues and

profits of the marketing research firms that support them.

The largest marketing research companies are truly international. The top five companies

each have offices or subsidiaries in at least 70 different nations.14 Nielsen, the largest firm, has

over 40,000 employees in more than 100 countries. Revenues vary around the world. North

America has the largest market share (43%), followed by Europe (37%) and Asia Pacific.



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To learn

about a firm

that specializes in eye

tracking, go to

www.youtube.com and type

in “benefits of eye tracking.”



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CHAPTER 2 • THE MARKETING RESEARCH INDUSTRY



Active Learning

Using the Marketing Research Directories

Three major sources of online information can allow you to explore the many different types

of research firms that operate worldwide.

GreenBook (www.greenbook.org). Many years ago the New York AMA chapter published a directory of marketing research firms in a book with a green cover. Now known as

GreenBook, it remains a key resource of industry information. This website allows you to search

for marketing research firms in several different ways. A number of specialties are listed, and

you can also search by country, state, or metro area. Under “Market Research Specialties,” you

can search under “Business Issues,” “Research Solutions,” “Industries & Demographics,”

“Related Services & Software,” or “International Expertise.” These submenus list the many

types of research and research firms in the industry. Click on a category that interests you to

see the information available on each firm.

Blue Book (www.bluebook.org). Blue Book is a marketing research services and focus groups

directory provided by the Marketing Research Association (MRA). The website allows you to

search marketing research companies by state, by type of data collection, and by several different types of specialties. Spending some time to explore this website will allow you to gain an

appreciation for the types of firms in the industry.

Quirk’s Researcher SourceBook™ (www.quirks.com). Quirk’s Marketing Research Media

publishes an online directory that provides access to research firms from more than 7,000 locations. At the website, click “Directories” in the menu bar. You can then search for marketing

research companies by geographical area, specialty, or type of industry.

By the time you finish this exercise, you will see that marketing research companies are

involved in many areas, including mystery shopping, mock trial juries, behavioral economics, airport interviews, crowdsourcing, taste tests, copy testing, new product concept testing,

competitor analysis, focus groups, brainstorming research, site selection, political polling, and

in-store interviewing.



The fastest-growing regions of the world for marketing research are Africa and the Middle

East. The five largest markets by country are United States (42%), United Kingdom (12%),

Germany (8%), France (6%), and China (4%).15



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Challenges to the Marketing Research Industry



With the fast speed of technological change, the marketing research industry is currently facing a number of important challenges. Three of those challenges include new and evolving

sources of data and methodologies, the effective communication of results, and the need for

talented and skilled employees. Each of these challenges will be discussed in the following

paragraphs.

NEW AND EVOLVING SOURCES OF DATA AND METHODS

After many years of relative stability in marketing research methods, the industry is undergoing great change due to new sources of data and technology. Traditional methods of research



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CHALLENGES TO THE MARKETING RESEARCH INDUSTRY



57



included mail and telephone surveys to gather opinions and intentions. Next, syndicated data,

focus groups and a host of other qualitative techniques, mall-intercept surveying, and marketing mix/brand equity modeling were added to the mix. In the 1990s, electronic surveys

brought about significant change, with online panels becoming a primary source of data. And

in recent years, passive data, or data that are gathered without overt questioning or other types

of interactions with consumers, have become a new and valuable source of information (see

Chapter 5).16

The new sources of data have created challenges for marketing research companies that

want to take advantage of new technology. In a 2015 survey of marketing researchers by

GreenBook, over half of respondents (56%) stated that methodologies are one of the biggest

challenges that they face.17 Data sources, such as social media websites, the Internet of Things

(IoT), and new kinds of syndicated data, have the potential to provide valuable insights. However, the methodologies necessary to analyze the data are not easy to develop and learn. Some

researchers believe that the marketing research industry has been adapting to new opportunities too slowly.18 Older and established marketing research companies find it difficult to keep

abreast of new technologies, and new, upstart marketing research companies cannot always

deliver the insights that they promise. The industry must evolve or die.19 Marketing Research

Insight 2.2 outlines the different types of social media websites and the types of consumer

research that they provide. Chapters 5 and 6 will report on types of quantitative and qualitative

data and the methodologies needed to examine these data.



MARKETING RESEARCH INSIGHT 2.2



Digital Marketing Research



Types of Social Media That Provide Sources of User-Generated Content



1. Blogs—Dated, online journal entries, usually focused on

a particular topic. Examples: Blogger, WordPress

2. Microblogs—Short posts commenting on the user’s

activities. Examples: Twitter, Weibo, Tumblr

3. Video Sharing Networks—Websites or apps that

allow the sharing of the user’s videos online. Examples:

YouTube, Vine, Vimeo

4. Photo Sharing Sites—Websites or apps that allow the

sharing of the user’s photos online. Examples: Instagram,

Flickr

5. Social Networks—Websites that enable users to connect by creating personal information profiles, inviting

friends and colleagues to access those profiles, and sending and receiving emails and instant messages. Examples:

Facebook, WeChat

6. Professional Networks—Websites that enable users

to connect by creating professional information profiles,

inviting business colleagues to access those profiles,

and sending and receiving emails and instant messages.

Example: LinkedIn

7. Product and Service Review Sites: Websites that allow

consumers to talk about and review their experiences



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with a product or service. Examples: Yelp, Amazon,

Angie’s List

8. Web-Based Communities and Forums: Communities

created online, often focused around a particular interest, whose members interact with each other online.

Examples: Gala Online, College Confidential

9. News Sharing Sites—Websites that allow users to post

and discuss news items. Examples: Digg, Reddit



© Syda Productions/Shutterstock



Social media websites are an important source of consumer

information. Following is a list of types of social media websites.



There are many different types of social media.



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