2-6. A Career in Marketing Research

www.downloadslide.com

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)



M02_BURN3261_08_GE_C02.indd 63



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)



27/08/16 4:28 pm



www.downloadslide.com

64



CHAPTER 2 • THE MARKETING RESEARCH INDUSTRY



Review Questions/Applications

2-1. Who is known as the “Father of Marketing Research”

and why?

2-2. Why did marketing research expand by the 1930s?

2-3. What was the technology that revolutionized market

research in the 1950s?

2-4. Define client-side research.

2-5. What are some advantages and disadvantages of DIY

research?

2-6. Who are the buyers who purchase research information from suppliers?

2-7. What is common to most of the top-rated marketing

research agencies in the world?

2-8. Describe limited-service supplier firms.

2-9. Explain the meaning of the statement that the “marketing research industry thrives off derived demand.”



2-10. What began to drastically change the marketing

research industry in the 1990s? Why?

2-11. Why is employing qualified individuals a challenge

for the marketing industry?

2-12. Is it ethical for retailers to use video cameras in

their stores to study the behavior of their customers?

Explain.

2-13. Most marketing industry codes of ethics are for the

purpose of self-regulation. What are the penalties that

can be imposed in case these codes are breached?

2-14. Outline the marketing research code for maintaining

research integrity.

2-15. Explain how market researchers can ensure that their

research is in the interest of society.

2-16. What is the PRC, and what is it designed to do?



CASE 2.1

Heritage Research Associates

Tim Colley and John Williams had not been in business

long as Heritage Research Associates, a small marketing

research firm they started in their hometown. They were

barely making ends meet by taking on very small accounts

such as start-up retailers. Their marketing research experience was limited, but they knew the basics. Since they

had not taken any specialized training beyond a college

course in marketing research, they decided to join the

Marketing Research Association. Tim explained, “We can

tell clients we have the necessary credentials to be members of the most notable marketing research organization

in North America.” The partners thought this was a good

way to persuade clients they knew what they were doing.

They added the MRA logo to their promotional materials

along with the line “Heritage is a Certified Member of the

MRA.” They used their limited funds to promote Heritage

Research Associates and even took out a quarter-page ad in

a national business magazine.

A phone call early one morning marked a real opportunity for Heritage. The potential client represented his organization as a “privately funded foundation that promoted

business rights and the maintenance of a laissez faire probusiness environment.” They were interested in Heritage

doing some research that would disprove some universitysponsored research findings that had been in the news. The

findings were unfavorable toward one of their prominent

member industries. The caller stated, “Our patrons are

upset that such erroneous information is being fed to the



M02_BURN3261_08_GE_C02.indd 64



American people, and we are quite prepared to fund additional research to clarify the facts. In fact, we are willing

to fund several studies if we get the results we are looking

for. Are you up to it?” Tim and John assured the caller that

the foundation could be certain that Heritage Research Associates could deliver quality, objective research that would

clear up any misconceptions in the minds of the public. The

call ended with a promise to send the biased university research reports immediately. A second call was set up to follow in three days.

In the follow-up call the potential client got more specific. His foundation had hired some independent scientists

who were willing to testify that certain environmental conditions were not being caused by the concerned industry

group. “We have had little problem in getting three scientists, with doctoral degrees from well-known universities,

to make statements affirming that firms in one of our major

industry groups are not doing any significant harm to our

environment.” The client went on to say, “What we want

now is a study from an independent research firm, such

as Heritage, to report attitudes of consumers in terms of

whether they are in favor of more industry regulation. We

are willing to fund a small pilot study and, if we find Heritage is capable of delivering objective data, we are ready

to sign on for a series of perhaps a dozen studies. Furthermore, we are well financed, and I am quite certain we can

meet your bid to do this work.” The caller went on to ask for

a proposal that would outline methods to select the survey



05/09/16 11:15 AM



www.downloadslide.com

REVIEW QUESTIONS/APPLICATIONS



sample, research questions, and a sample analysis, including how Heritage would word the report. “Remember, we

want this to be an independently prepared project using all

your abilities to craft an objective research study,” the client

stated. Tim and John agreed to deliver a proposal within

10 working days.

Tim and John were thrilled that this opportunity had

fallen to them. “Did you hear what he said in terms of

‘being certain to accept our bid’?” John exclaimed. “He’s

telling us he is going to pay whatever we ask. This isn’t a

penny-pinching client.”

Tim said, “Just a minute, though. He’s talking about

the studies after the pilot study. What if they don’t like the

first study? We won’t ever get to the big accounts.”

John agreed. “We’ve got to design a study they will

like so we can get the additional work at a premium. This

could set our little firm off in a totally new direction!”



M02_BURN3261_08_GE_C02.indd 65



65



“This can make us the most talked-about research firm

in the world!” Tim said.

1. Do you think it is ethical to use membership in an

association that doesn’t require any demonstration of

expertise to lead customers into thinking the membership conveys some automatic claim of competency?

2. Consult the MRA Code of Marketing Research

Standards. Is the answer to question 1 covered?

Explain.

3. What problems do you see in the future for Tim and

John and Heritage Research Associates? Do you think

they are likely to become the “most talked-about

research firm in the world”?

4. Consult the MRA Code of Marketing Research Standards. Are there any standards that back up your

answers to question 3?



27/08/16 4:28 pm



www.downloadslide.com



3



The Marketing Research Process

and Defining the Problem

and Research Objectives



LEARNING OBJECTIVES

In this chapter you will learn:



General Mills: A Well-Defined Problem

Is Half the Solution



3-1 The steps of the marketing

research process



It is an adage as old as scientific inquiry: A



3-2 The importance and process of

defining the problem



well-defined problem is half the solution.



3-3 How to formulate research

objectives



Mills, we partner with professionals in mar-



In Global Consumer Insights at General



3-4 What an action standard is and

why it can be helpful



keting, advertising, product development,



3-5 The components of the marketing

research proposal



decisions. At times, the problems business



“WHERE WE ARE”



▶



1 Establish the need for marketing



▶

▶



2 Define the problem.



research.

3 Establish research objectives.

4 Determine research design.

5 Identify information types and



and beyond to inform smart, consumer-first

partners bring us are vague, broad, diffiCarrie Breisach is

a Global Consumer

Insights Manager at

General Mills, Inc. Ms.

Breisach has an M.B.A.

from the University of

Wisconsin-Madison

and has 10 years of

experience in the

marketing research field.



data.



The need for quick answers can entice us to

jump into research design and execution so

hastily that the results we get back will not

really help answer the true question.

Instead, having the discipline to dig

into the true business problem, including

what has already been learned, explored, or

decided, helps us as researchers to create a



sources.

6 Determine methods of accessing



cult to tackle, and—all too often—urgent.



meaningful series of learning objectives and research questions. A good

rule of thumb in the research design phase is “go slow to go fast.” It is



7 Design data collection forms.



worth spending time in the beginning gaining clarity and alignment on



8 Determine the sample plan and size.



the true problem and questions in order to facilitate meaningful learning



9 Collect data.



that ultimately illuminates the path forward and enables better, faster



10 Analyze data.

11 Prepare and present the final



research report.



decisions.

To illustrate, let’s use the example of a recent consulting engagement our central Global Consumer Insights team took on with business

partners on our Snacks team. They wanted help deciding where to focus

next in building a pipeline of new products for a top-priority brand. The

business team knew the consumer they were focused on and the brand

was a given, but the possible product categories for innovation were



M03_BURN3261_08_GE_C03.indd 66



27/08/16 4:39 pm



www.downloadslide.com



nearly limitless. Should they create a new granola bar? A new cookie?

New fruit snacks? New yogurt? What would be the next biggest opportunity for the brand?

Rather than jumping straight into “problem-solving mode,” our

central consulting team first reviewed the intake brief, a standardized

template that captures the background, objective, key stakeholders,

time line, and existing knowledge. The consulting team then set up a



Visit General Mills at www.generalmills.com.



scoping meeting with the client team to talk through the brief and have

conversations to clarify the scope, intended outcome, success criteria, and any other issues

that might impact the project design. The consulting team then worked with internal subject

matter experts to design the optimal research and learning plan, which they shared with the

business team for feedback and alignment before starting the project.

In this example and so many others, the Global Consumer Insights team acted not just as

research designers and executors but also as expert partners who can help a business team

gain clarity on the real business issue and question that will unlock opportunity. In so doing,

we were able to design an approach to help the team identify a robust pipeline of new product ideas to explore and further develop.

—Carrie Breisach

Source: Text and photos courtesy of Carrie Breisach and General Mills, Inc.



T



here are many facets to what we call marketing research, with many different research

choices: forecasting models that predict sales of new products, measures of customer

satisfaction, online communities to discover consumers’ concerns, mobile surveys, and

experiments to determine the most eye-catching package design, to name just a few examples.

Researchers choose from many seemingly disorganized sets of alternative approaches in tackling a research project. Fortunately, there is a process, and understanding and adhering to that

process will provide researchers with direction.

This chapter introduces the steps of the research process and then focuses on the first

three steps in the process: establishing the need for marketing research, defining the problem,

and developing research objectives. The chapter concludes with a discussion of the document that is usually prepared after the problem statement and research objectives have been

defined: the marketing research proposal.



3-1



The Marketing Research Process



THE 11-STEP PROCESS

We, among many, believe the marketing research process should be viewed as a series of

steps. Knowledge of these steps provides a road map for planning a research project. The

value in characterizing research projects in terms of successive steps is twofold. First, the

steps give researchers and others an overview of the process. Second, they provide a procedure in the sense that a researcher knows what tasks to complete and in what order.

67



M03_BURN3261_08_GE_C03.indd 67



27/08/16 4:39 pm



www.downloadslide.com

68



CHAPTER 3 • THE MARKETING RESEARCH PROCESS AND DEFINING THE PROBLEM AND RESEARCH OBJECTIVES



Our introduction to these steps also provides a preview of what is in store for you in upcoming

chapters of this book.

We identify the 11 steps in the marketing research process in Figure 3.1:1 (1) establish

the need for marketing research, (2) define the problem, (3) establish research objectives,

(4) determine research design, (5) identify information types and sources, (6) determine methods of accessing data, (7) design data collection forms, (8) determine the sample plan and

size, (9) collect data, (10) analyze data, and (11) prepare and present the final research report.

We will discuss each of these steps in the following section. As we summarize each step, we

will briefly introduce vocabulary that is associated with the text. Those vocabulary words will

be placed in italics to signal that we will define those words in more detail in later chapters in

the text. But prior to introducing the steps, we should first consider some cautions associated

with using a step-by-step approach to the process of marketing research.

CAVEATS TO A STEP-BY-STEP PROCESS

Why 11 Steps? There is nothing sacred about 11 steps. Although we conceptualize the

research process as entailing 11 steps, others may present it in fewer or more steps. For example, the process could be distilled into three steps: defining the problem, collecting and analyzing data, and presenting the results. We think this short list oversimplifies the research

process. On the other hand, the research process could be set out in 20 or more steps. In our

opinion, this provides more detail than is needed. Eleven steps set out the process explicitly without being overly detailed. But you should know that everyone does not present the

research process in the same way we present it here.



FIGURE 3.1 11 Steps

in the Marketing

Research Process



Step 1: Establish the need for marketing research

Step 2: Define the problem

Step 3: Establish research objectives

Step 4: Determine research design



Step 5: Identify information types and sources

Step 6: Determine methods of accessing data

Step 7: Design data collection forms

Step 8: Determine the sample plan and size

Step 9: Collect data

Step 10: Analyze data

Step 11: Prepare and present the final research report



M03_BURN3261_08_GE_C03.indd 68



27/08/16 4:39 pm