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CHALLENGES TO THE MARKETING RESEARCH INDUSTRY



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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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EFFECTIVE COMMUNICATION OF RESULTS

With the multiple new types of data and methods now in use, marketing researchers not only

need to be skilled at gathering and analyzing data but also at communicating results effectively.

Marketing researchers sometimes feel that they are not treated with respect by managers.20

At the same time, marketing research clients often complain that researchers are not knowledgeable about their businesses.21 In a 2015 survey by Quirk’s, fully half of marketing research

clients stated that they have had trouble with research suppliers who “did not take time to

understand our business.”22 A need exists for marketing researchers who can dig deeper into

data and who can deliver strategic insights with their results.23

In addition, there is an increasing demand that marketing researchers provide simple

and straightforward reports that “tell a story” rather than give their clients lengthy, complex

documents. Researchers are asked to present their results in unambiguous, understandable,

easy-to-grasp reports.24 Increasingly, researchers use “storytelling” techniques, along with

pictures, videos, animations, and other visual and aural techniques, to deliver their results in

compelling ways that will be remembered by management. Chapter 16 will discuss methods

for presenting written and oral reports.

NEED FOR TALENTED AND SKILLED EMPLOYEES

Another challenge for the marketing industry is employing qualified individuals. As suggested by the first two challenges to the marketing industry, a 2015 survey by GreenBook

notes a need for individuals who can combine tech savviness and analytical skills with the

ability to synthesize data and communicate results in a compelling way. At the same time,

the survey points to the need for people who have a good foundational understanding of the

basics of research.25 Some established marketing researchers complain that younger employees have not been trained in basic statistics and methodologies.26 Only 4% of the members of

ESOMAR, a global marketing research trade organization, are less than 30 years old versus

39% who are over 50 years old.27 According to ESOMAR, very few people plan a career in

marketing research while in college, but once they find themselves in that industry they are

very satisfied.28



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Industry Initiatives



The marketing research industry has been proactive in terms of self-improvement, largely

through industry initiatives, extensive continuing education programs, and certification.

INDUSTRY PERFORMANCE INITIATIVES

Led by some active professional associations, several initiatives have been undertaken to

improve industry performance. We summarize a few of these in the following paragraphs.

Best Practices The move toward Total Quality Management in the 1990s spawned an

increase in companies’ awareness of methods leading to improvement. One such method was

spelling out best practices to help companies set benchmarks for performance in key areas.

Many of the professional organizations serving the marketing research industry have a program of best practices. The MRA, for example, publishes best practices regarding issues such

as privacy, calling cell phones, and online surveying.29

Sugging, or “selling under

the guise of research,” is

illegal. Frugging, or “fund

raising under the guise of

research,” is unethical but

not yet illegal.



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Maintaining Public Credibility of Research Researchers are concerned about the

general public’s trust of research information. Public disgust with telemarketing and political telemarketing known as “push polling”30 is often inappropriately directed at marketing

researchers. Several industry initiatives are directed at keeping the public informed about the

value of research, the appropriateness of research methods, and the ethics the industry uses in

collecting research information. The industry has fought to make sugging—or the practice of



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“selling under the guise of research”—illegal. Telemarketers used sugging for years to entice

the public into taking what they thought was an opinion survey but actually was a lead-in for

a sales pitch. Though not illegal, the industry has fought the use of enticing unknowing consumers into taking a survey when the real intent is to raise funds. This practice is known as

frugging, for “fund raising under the guise of research.”

The Council of American Survey Research Organizations (CASRO) offers an online

guide, “What Survey Participants Need to Know,” to provide the public with information

about the conduct and use of survey research.31 The Transparency Initiative was launched in

2014 by the American Association for Public Opinion Research (AAPOR) to encourage the

routine disclosure of methods used in research information that is released to the public.32 As

you will learn by taking this course, surveys can be conducted so that they deliberately lead to

biased responses. It is important for the marketing research industry to discourage the practice

of conducting biased surveys.

In 2003 the National Do Not Call Registry was established that allows U.S. residents

to register their telephone numbers to be protected from receiving unsolicited telemarketing

calls. Note, however, that unsolicited phone calls for the purpose of conducting surveys are

exempt from the restrictions imposed by the Do Not Call Registry. In other words, researchers

conducting surveys can still legally call U.S. residents.



INDUSTRY INITIATIVES



59



The Transparency Initiative

is a program by the

AAPOR to encourage

the routine disclosure of

methods used in research

that is released to the

public.

Calling U.S. residents to

conduct surveys is exempt

from the Do Not Call

Registry.



Monitoring Industry Trends For many years, GreenBook has monitored trends in the

industry. Published annually as the GreenBook Research Industry Trends (GRIT) report, data

are provided to the industry in terms of what techniques are being used as well as what drives

their use. The report provides insights by contrasting supplier (marketing research firms)

views on issues with buyer (client) views. The report examines perceived threats and attitudes toward changes in the industry, forecasts revenues, and profiles innovations. ESOMAR

publishes an annual Global Market Research report that includes many measures of industry

performance.

Improving Ethical Conduct The professional associations serving the marketing research

industry have all established rules, standards, or codes of ethical conduct. These associations have been proactive in maintaining and updating these standards. For example, when

the Internet made possible online surveys, the industry moved to adopt standards governing conduct in this area. Most industry codes of ethics are for the purpose of self-regulating

professionals’ behavior. In some cases associations may impose penalties, including censure,

suspension, or expulsion. Certified professionals may lose their certification if they are found

to have violated the granting association’s standards. Each organization has its own standards,

although some associations coordinate these codes of conduct. There are differences in the

codes but also some commonalities among the major associations. Some of the most important marketing research codes are listed as follows:

I. Fair Dealings with Respondents

a. Respondents should understand that they may elect to not participate in a research

request. Participation is always voluntary and respondents should understand they

have the right to withdraw or refuse to cooperate at any stage during the study.

b. Respondent confidentiality must be maintained. Respondent identity should not be

revealed without proper authorization.

c. Respondents will be treated professionally. Should respondents be required to use a

product or service, researchers will ensure that the product/service will be safe and

fit for intended use and labeled in accordance with all laws and regulations.

d. Respondents will not be given dishonest statements to secure their cooperation,

and researchers will honor any promises made to respondents given to secure their

cooperation.

e. Special provisions are required for doing research on minors (under 18 years of age).



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CHAPTER 2 • THE MARKETING RESEARCH INDUSTRY



II. Fair Dealings with Clients and Subcontractors

a. All information obtained from clients shall remain confidential.

b. All research will be carried out according to the agreement with the client.

c. Client identity will not be revealed without proper authorization.

d. Secondary research will not be presented to the client as primary research.

e. Research results are the sole property of the client and will never be shared with

other clients.

f. Researchers will not collect information for more than one client at the same time

without explicit permission from the clients involved.

g. Clients will be provided the opportunity to monitor studies in progress to ensure

research integrity.

h. Researchers will not ask subcontractors to engage in any activity that does not

adhere to professional codes, applicable laws, or regulations.

III. Maintaining Research Integrity

a. Data will never be falsified or omitted.

b. Research results will be reported accurately and honestly.

c. Researchers will not misrepresent the impact of the sampling method and its impact

on sample data.

IV. Concern for Society

a. Research released for public information will contain information to ensure transparency (i.e., disclosure of method of data collection, the sample frame, sample

method, sample size, and margin of error, if appropriate).

b. Researchers will not abuse public confidence in research (e.g., no push polling).

c. Researchers will not represent a nonresearch activity (e.g., sales effort, debt collection) to be research for the purpose of gaining respondent cooperation.

You may want to see the entire standards of ethical conduct of some of these associations:

AAPOR (www.aapor.org): Go to Standards & Ethics.

MRA (www.marketingresearch.org): MRA Code of Marketing Research Standards.

CASRO (www.casro.org): Go to Resources, then The CASRO Code.

MRIA (www.mria-arim.ca): Go to Standards.

ESOMAR (www.esomar.org): Go to Knowledge and Standards.

MRS (www.mrs.org.uk): Go to Standards.

We will examine ethical issues in this book by highlighting a particular standard from

the MRA’s “Code of Marketing Research Standards” where it applies to the subject matter

discussed in each chapter. This text also presents Marketing Research Insights, Ethical Considerations, such as Marketing Research Insight 2.3, which discusses the ethics of retailers

using in-store video cameras to track customers.

Beyond the general standards, an issue that may pose an ethical problem for researchers is working on a project in which the outcome may not be in the best interests of society.

Imagine, for example, that a client asks a researcher to help identify advertising messages that

are persuasive in getting young teens to try their first cigarette. Or a firm might be asked to

develop effective promotions to encourage children to eat more candy. The decisions researchers must make are sometimes difficult. This quandary is rarely discussed professionally.

Certification of Qualified Research Professionals Certification programs assure that

certified individuals have passed some standard(s) of performance. Certification programs in

accounting (CPA) and finance (CFA) and other professional areas in business have been in place

for many years and give clients confidence in the credibility of those certified professionals.



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MARKETING RESEARCH INSIGHT 2.3



INDUSTRY INITIATIVES



61



Ethical Consideration



Monitoring and measuring “actual” consumer behavior has

gained a more prominent role in marketing research in the retail

industry lately. A key driving force is new or improved technology that opens up numerous opportunities to study consumer

behavior in a store environment. Traffic counters, handheld

shopping systems, beacons, radio frequency identification (RFID)

tags, infrared sensing devices, and high-resolution video surveillance cameras are all examples of this technology. The value of

the new technology lies in its ability to constantly deliver more

accurate and non-disruptive accounts of how consumers behave

in a store and how they react to marketing stimuli. By studying

consumer activity (where customers go, their paths, their interactions with the store shelves, etc.), retailers can detect problems

with store layouts, signage, product organization, and so on.

Since data from surveillance cameras gives retailers insights

that are relevant for optimizing their store layout and merchandising approach, it is easy to see why many retailers are using

video cameras to track and capture every detail about the customers in their store. However, this has raised ethical concerns.

Many have expressed concerns about the increasing use of surveillance cameras in public places, especially when such use is

concealed or when people being monitored cannot opt out. The

European Society for Opinion and Marketing Research (ESOMAR), which has developed an international code for market and

social research, advises market researchers to inform respondents

of their intentions, except for instances where these techniques

are openly used in a public place and where obtaining informed

consent from individuals is beyond the bounds of possibility. Norway has specifically included the use of video surveillance cameras in its Personal Data Act, which categorizes any data acquired

from the use of video cameras as a form of personal information.



© PhotonCatcher/Shutterstock



Video Surveillance Research: New Insights and the Ethics Involved



Certain retailers use in-store cameras to track consumer

behavior.

It does not matter whether the data is recorded, stored, or just

streamed in real time, as the individual’s face can be used to

identify her or him and disclose personal information.

In most cases, authorities accept video surveillance as a theftpreventing measure. In European legislation, the legality of using

video surveillance technology for other purposes is contingent

on whether the data is important in terms of the performance

of a task carried out in public interest. A legitimate cause might

be that the results lead to ways to improve a customer’s shopping experience. It would, for instance, be in the customer’s own

interest to spend less time navigating and searching for products.

Do more rewarding consumer experiences outweigh the

ethical concerns? What do you think?



Sources: Kirkup, M. and Carrigan, M. (2000). Video surveillance research in retailing: Ethical issues. International Journal of Retail and Distribution Management,

28(11), 470–480; Burke, R. (2005). Retail shoppability: A measure of the world’s best stores. Indiana University. Retrieved from www.kelley.iu.edu/CERR/files/

shoppability.pdf; Williams, J. (2013, August 1). In-store cameras: From security aids to sales tools. INSEAD Knowledge. Retrieved from http://knowledge.insead.

edu/innovation/technology-manufacturing/in-store-cameras-from-security-aids-to-sales-tools-2559; ESOMAR (2009), Passive Data Collection, Observation,

and Recording, pp. 1–20; European Data Protection Supervisor (2010, March 17). The EDPS Video-Surveillance Guidelines. Retrieved from https://secure.edps.

europa.eu/EDPSWEB/webdav/shared/Documents/Supervision/Guidelines/10-03-17_Video-surveillance_Guidelines_EN.pdf; Datatilsynet. (2015, January 10).

Retrieved from https://www.datatilsynet.no/English/Regulations/Personal-Data-Act-/#Chapter 7.



In the United States, professionals may earn the Professional Researcher Certification

(PRC). You can read about the PRC in Marketing Research Insight 2.4. In Canada, the

designation of Certified Marketing Research Professional (CMRP) is granted through

the MRIA.

Continuing Education The marketing research industry does an exceptional job of providing conferences, workshops, courses, webinars, and many other forms of continuing education for industry professionals. All of the professional organizations listed offer programs

designed to keep members up-to-date on skills needed in the industry. The Burke Institute, a

division of Burke, Inc., has been providing high-quality training seminars since 1975. You can

see the seminars the institute offers professionals at www.burkeinstitute.com.



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The MRIA in Canada

certifies researchers

through the Certified

Marketing Research

Professional (CMRP)

program. Read about

the qualifications for this

program at www.mriaarim.ca. Go to the link for

Institute for Professional

Development/

Certification.



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MARKETING RESEARCH INSIGHT 2.4



Practical Application



Professional Researcher Certification

Responding to a need to establish a credentialing program

in the industry, several organizations, led by the Marketing

Research Association, established a certification program

for marketing researchers. The process took several years,

and the program started in February 2005. The Professional

Researcher Certification program (PRC) is designed to recognize the qualifications and expertise of marketing and opinion

research professionals. The goal of PRC is to encourage high

standards within the survey profession to raise competency,

establish an objective measure of an individual’s knowledge

and proficiency, and encourage professional development.

Achieving and maintaining PRC validates the knowledge of

the market research industry and puts researchers in a select

group of like-minded professionals. It’s a visible badge of distinction, demonstrating professional skill, commitment, and

dedication.



• Renewal of the PRC requires 20 hours in PRC-approved



training (18 in research; 2 in legal). Certifications must be

renewed every two years.



Requirements for Professional Researcher Certification



• A minimum of three years of industry experience in the



marketing research industry

• 12 hours of PRC-approved training within the last two years

• Passing the PRC exam



2-6



You can read more about the PRC at

www.marketingresearch.org/certification.

Source: Marketing Research Association,

by permission.



A Career in Marketing Research



You may be interested in exploring a career in marketing research. A recent study by

ESOMAR of young researchers found that new recruits to the marketing industry are overwhelmingly happy in their jobs. The young researchers described their jobs as “empowering”

and “meaningful” and noted that “you get to make a difference.”33

IBIS World predicts that the number of employees in the marketing research industry will

expand at an average annual rate of 2.1% through 2020, with wages predicted to increase at an

average annual rate of 2.5%.34 The research industry workforce is expected to grow at an average annual rate of 2.1% to 154,250 employees. Similarly, total industry wages are expected to

increase at an annualized rate of 2.5% to $7.3 billion over the same period.

Following graduation, some students go directly into a marketing research job with a

bachelor’s degree in marketing, statistics, business analytics, computer science, psychology,

sociology, or another related field. Some marketing research jobs, particularly those in clientside companies, require a graduate degree for new employees who have no direct experience in the field. There are some excellent master’s degree programs in marketing research.

One of those master’s program is the University of Georgia’s Master of Marketing Research

(MMR) program, which is profiled in the introduction to the chapter. You can find more information about programs that offer degrees in marketing research on the Quirk’s Marketing

Research Media website. Quirk’s maintains a directory of colleges and universities that offer

certificates, concentrations, programs, or degrees in marketing research. Quirk’s website also

provides an active job-posting service that allows you to explore the types and locations of

current job openings in marketing research.



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KEY TERMS



WHERE YOU'VE BEEN AND WHERE

YOU'RE HEADED!

This concludes our two introductory chapters

on marketing research. In Chapter 1 you learned

how marketing research is defined and how it

fits into a firm’s marketing information systems.

This chapter provided an overview of the marketing research industry. Now you should be familiar with the types and numbers of firms and the

professional organizations that serve the industry.

You’ve learned about issues facing the industry

as well as the ethical issues that face all marketing researchers. Now, you are ready to learn

about the 11-step process that characterizes marketing research. That process and its first steps

are discussed in Chapter 3. Each of the remaining chapters addresses additional steps in the

process.



63



There are many different directions you can take with your degree, such

as going straight into the marketing research industry or going on to earn

a master’s degree in marketing research.



Summary

Gathering information dates back to the earliest days of

recorded history. Surveys were used for politics in the

United States in the early 1800s. The first known application of research to a business/marketing/advertising problem was conducted by an ad agency in 1879, and the first

continuous, organized research was started in 1911 by

Charles Coolidge Parlin. The industry began to grow in the

early 1900s as the Industrial Revolution separated business owners from customers. Many developments occurred

during the 20th century that allowed marketing research to

evolve into a mature industry.

Marketing research may be divided into client-side

research and supply-side research. Client-side research is marketing research that is conducted within and for a firm (such

as research that is conducted by a marketing research department within a manufacturing firm). Supply-side research is

research that is conducted by an outside firm to fulfill a company’s marketing research needs. Firms that conduct supplyside marketing research are also called agencies, or simply

suppliers. The industry is characterized by a few large firms



and many small firms. The largest firms have revenues in

the billions of dollars. Firms are classified as full-service or

limited-service supplier firms. Several online directories are

available to help clients locate marketing research firms.

The marketing research industry had total revenues of

$43 billion in 2014. North America led the global market

with the largest share of revenues (43%) by region, and the

United States led all countries. Some of the fastest growth

rates are in the Middle East and Africa.

Challenges facing the marketing research industry

include keeping up with the many new sources of data and

types of methods that have emerged in recent years. Other

challenges include effectively communicating research

results and hiring talented and skillful employees. The

industry strives for self-improvement via efforts to identify

and disseminate best practices, maintain public credibility of research, monitor trends, improve ethical conduct of

members, support programs to certify professionals, and

offer education programs. The marketing research industry offers excellent careers for recent college graduates.



Key Terms

Charles Coolidge Parlin (p. 50)

Client-side research (p. 51)

Do-it-yourself (DIY) research (p. 51)

Supply-side research (p. 53)

Supplier (p. 53)

Agency (p. 53)

Full-service supplier firms (p. 54)



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Limited-service supplier firms (p. 54)

Sugging (p. 58)

Frugging (p. 59)

Transparency Initiative (p. 59)

National Do Not Call Registry (p. 59)

AAPOR (p. 60)

MRA (p. 60)



CASRO (p. 60)

MRIA (p. 60)

ESOMAR (p. 60)

MRS (p. 60)

Professional Researcher

Certification (PRC) (p. 61)



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