Chapter 2: The Marketing Research Industry and Research Ethics

Examples of Marketing Research industry members:
• Consumer and industrial goods and services producers
• Media companies
• Syndicated service firms
• Custom research firms
• Field service firms
• Specialized service firms
• Online and mobile tracking firms
• Big data analytic firms
Other
3 Primary Marketing Research categories
• Information Users
• Marketing Research Suppliers
• Marketing Research Supplier SERVICE firms
Subheading categories for INFORMATION USERS
– Consumer and Industrial goods and services producers
– Federal, state, and local governments
– Media companies
– Retailers and wholesalers
Subheading categories for MARKETING RESEARCH SUPPLIERS
– Custom research firms
– Syndicated research firms
– Limited function research firms
– Online, mobile tracking firms
– Big data analytic firms
Subheading categories for MARKETING RESEARCH SUPPLIER SERVICE FIRMS
– Field service firms
– Specialized service firms
Define SYNDICATED SERVICE RESEARCH firms

Give an example.

• Conducted and funded by a market research firm, but not for any specific client
• E.g. Scanner-based data; TV ratings; Public opinion surveys
Example of syndicated service research firms.
Nielsen Company
– Top marketing research firm
– 2 divisions: Consumer Watch and Consumer Buy
Marketing Research Supplier Service firms:

FIELD SERVICE firms vs. SAMPLING firms vs. SOFTWARE firms vs. OTHER SERVICE companies

• Field service: Firms that collect data
• Sampling firms: generate samples
• Software firms: sells software for analysis
• Other service companies: consulting, magazines and directories
INTERNAL vs. EXTERNAL clients of Marketing Research
Internal:
• Company’s vendors
• Franchisees
• Marketing Dpt.
– Logistics
– Sales
– Advertising & Promotion
– New product development
– Brand managers
– Pricing committee

External:
• Other Depts.
• Sr. Mgmt.
– Product engineers
– Finance
– Manufacturing
– Legal
– HR Mgmt.

Define STRATEGIC PARTNERSHIP
• alliance formed by 2+ firms with unique skills and resources
– offers a new service for clients
– provides strategic support for each firm
– creates mutual benefits
Advantages of STRATEGIC PARTNERSHIP
• Appropriate use of synergy between partners
• Personal compatibility greatly enhances effectiveness
• Sharing the same visions and goals is important
• About half of large MR firms engage in strategic partnering
• Can greatly improve productivity and customer service
• Will help the company to target its resource more effectively
Define ETHICS
• moral principles or values generally governing the conduct of an individual or group
– requires input from all parties
– concerns should be forwarded to research associations or vet suppliers
Examples of unethical behavior of FIELD SERVICE providers
• Low-ball pricing
• Allowing subjectivity in the research process
• Abusing responses
• Selling unnecessary research
• Violating client confidentiality
• Black-box branding

• Requesting bigs
– after supplier has been predetermined
– to obtain free advice
• Making false promises
• Requesting proposals without authorization
• Unethical behaviors by retailers

• Using professional respondents
• Failing to properly record info, follow sampling procedures
• Overstating qualifications, inflating references

Respondent Rights
• Choice to Participate
• Right to Safety
• Right to Be Informed
• Right to Privacy