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Marketing Research340 : 

Marketing Research340 Nature of Marketing Research Research Process

Nature of Marketing ResearchWHO DOES IT? : 

Nature of Marketing ResearchWHO DOES IT? INSTITUTIONS INTERNAL DEPARTMENTS CONSUMER BUSINESS- BUSINESS SUPPORT AD AGENCIES GOVERNMENT CONSULTANTS SUPPLIERS FULL SERVICE FIELD SERVICE SYNDICATED

US MARKETING RESEARCH INDUSTRY PROFILE : 

US MARKETING RESEARCH INDUSTRY PROFILE US NON-US REVENUES REVENUES 51%. 49% 1997 64% 36% FOR 2000 Overall Industry $7.7 Bill Growth - 5.6% Top 50 $7.1 Bill Growth - 7.4% SOURCE: Honomichl Report: Marketing News, June 8, 1998,Aug. 14, 2000, June 4, 2001, and August 14, 2001

US MARKETING RESEARCH INDUSTRY PROFILE : 

US MARKETING RESEARCH INDUSTRY PROFILE US NON-US GROWTH REVENUES REVENUES 1999 $4.22 Bill. $4.08Bill 7.5% 1997 $3.85 Bill. $2.2Bill 12.6% 1996 5.7% 1999 - 8.3 BILLION DOLLAR INDUSTRY 1997 - 6 BILLION DOLLAR INDUSTRY SOURCE: Honomichl Report: Marketing News, June 8, 1998 and Aug. 14, 2000

PERCENT OF MARKET RESEARCH REVENUES BY CLIENT INDUSTRY : 

PERCENT OF MARKET RESEARCH REVENUES BY CLIENT INDUSTRY 2000 1998 CONSUMER PACKAGED GOODS 28.0 32.7% MEDIA ADVERTISING 21.0 18.7 PHARMACEUTICAL, HEALTH CARE 17.3 17.2 GOVERNMENT 6.5 6.0 TELECOMMUNICATIONS 2.6 4.6 CONSUMER DURABLES 3.0 4.4 AUTOMOTIVE 5.1 3.6 FINANCIAL SERVICES 4.3 3.4 RETAILERS 1.5 1.4 TRAVEL, TOURISM, HOSPITALITY 1.1 1.1 ENTERTAINMENT 1.1 1.0 POLITICAL .2 .2 SOURCE: Honomichl Report: Marketing News, June 8, 1998; JUNE 4, 2001

TOP 50 RESEARCH SUPPLIERS2000 : 

TOP 50 RESEARCH SUPPLIERS2000 COMPANY US NON-US % (millions) REVENUE REVENUE NON-US 1. ACNielsen Corp. $520.4 $ 1,056.6 67% 2. VNU $513.1 $ 13.8 26% 3. IMS $424.4 $ 707.0 63% 4. Information Resources $398.9 $ 133.0 25% 5. NFO RESEARCH $176.9 $ 293.6 62% 9. MARKETFACTS $116.7 $ 19.8 15% 10. MMRI (Maritz) $156.9 $ 33.4 18% 23. BURKE $ 34.4 $ 14.2 29% 50 .SAVITZ $ 13.8 --------- --------- SOURCE: Marketing News, June 4, 2001

TOP 100 RESEARCH SUPPLIERS1999 : 

TOP 100 RESEARCH SUPPLIERS1999 COMPANY US NON-US % (millions) REVENUE REVENUE NON-US 1. IMS $412.2 $ 671.7 62% 2. Nielsen Media Research $401.9 --------- --------- 3. Information Resources $397.0 $ 114.3 22% 4. ACNielsen Corp. $390.4 $1,035.0 73% 5. VNU $343.0 $ 85.0 20% 9. NFO RESEARCH $180.0 $ 270.0 60% 10. MMRI (Maritz) $126.8 $ 42.3 25% 12. MARKETFACTS $116.7 $ 19.8 15% 34. CUSTOM RESEARCH $ 26.5 $ 3.7 12% 111.GCA Consulting $ .2 --------- --------- SOURCE: Ad Age, Aug, 11, 1999

TOP 100 RESEARCH SUPPLIERS1998 : 

TOP 100 RESEARCH SUPPLIERS1998 COMPANY US NON-US % (millions) REVENUE REVENUE NON-US 1. IMS $378.6 $ 602.2 61% 2. Information Resources $366.7 $ 89.6 20% 3. Nielsen Media Research $358.6 --------- --------- 4. ACNielsen Corp. $310.0 $1,081.6 78% 5. VNU $220.0 $ 65.0 23% 8. GALLUP $151.4 $ 35.8 19% 9. NFO RESEARCH $141.4 $ 49.1 26% 12. MARKETFACTS $ 97.8 $ 8.7 8% 36. CUSTOM RESEARCH $ 25.8 --------- --------- 113. DAVID MILLER $ .2 --------- --------- SOURCE: Ad Age, May 25, 1998

GLOBAL MARKETING RESEARCH:PERCENTAGE OF 1997-99 REVENUES FOR TOP 25 FIRMS BY FIRM’S HOME COUNTRY : 

GLOBAL MARKETING RESEARCH:PERCENTAGE OF 1997-99 REVENUES FOR TOP 25 FIRMS BY FIRM’S HOME COUNTRY SOURCE: HOnomichl Global 25: Marketing News, Aug. 17, 1998/ Aug. 16, 1999

1999 TOP 25 GLOBAL RESEARCH ORGANIZATIONS : 

1999 TOP 25 GLOBAL RESEARCH ORGANIZATIONS 1. ACNIELSEN CORP USA $1,525.4 68.1% 2. IMS HEALTH USA $1,275.7 60.7% 3. THE KANTAR GROUP UK $ 773.5 74.8% 4. TAYLOR NELSON SOFRES UK $601.3 72.3% 5. INFORMATION RESOURCES, INC. USA $546.3 23.7% TOP 5 WORLDWIDE SOURCE: HOnomichl Global 25: Marketing News, Aug. 14, 2000 TOTAL REVENUE (millions) % REVENUE GENERATED OUTSIDE OF HOME COUNTRY

1998 TOP 25 GLOBAL RESEARCH ORGANIZATIONS : 

1998 TOP 25 GLOBAL RESEARCH ORGANIZATIONS 1. ACNIELSEN CORP USA $1,391.6 77.7% 2. COGNIZANT CORP. USA $1,339.1 47.7% 3. THE KANTAR GROUP UK $ 539.8 61.4% 4. TAYLOR NELSON SOFRES UK $463.4 47.3% 5. INFORMATION RESOURCES, INC. USA $456.3 19.6% TOP 5 WORLDWIDE SOURCE: HOnomichl Global 25: Marketing News, Aug. 17, 1998 TOTAL REVENUE (millions) % REVENUE GENERATED OUTSIDE OF HOME COUNTRY

RESEARCH SUPPLIERS1997 : 

RESEARCH SUPPLIERS1997 COMPANY US NON-US % (millions) REVENUE REVENUE NON-US 1. Information Resources $344.6. $ 60.9 15% 2. Nielsen Media Research $319.4 --------- --------- 3. IMS $316.5 $ 587.9 65% 4. ACNielsen Corp. $286.5 $1,072.1 79% 5. SRI $280.7 $ 45.3 14% 9. GALLUP $135.8 $ 33.0 20% 12. NFO RESEARCH $104.4 --------- --------- 13. MARKETFACTS $ 77.5 $ 6.3 8% 36. CUSTOM RESEARCH $ 22.8 --------- --------- 121. DAVID MILLER $ .1 --------- --------- SOURCE: Ad Age, May 19, 1997

INTERNAL MARKETING RESEARCH DEPARTMENTS : 

INTERNAL MARKETING RESEARCH DEPARTMENTS Average Annual Research Budgets (millions) Total Packaged Non-Packaged Goods Goods 1995 4.2 5.3 3.2 1993 3.6 5.5 2.1 Percentage of Sales Total Packaged Non-Packaged Goods Goods 1995 .1 .3 .05 1993 .1 .29 .04 source: ARF/AMA Marketing Research Industry Survey, T. Dunn and B. Peters, March 1996.

MARKETING RESEARCH DEPARTMENT PROFILE : 

MARKETING RESEARCH DEPARTMENT PROFILE BUDGETS AVG. SIZE GROWTH 1997 $ 11 Mill 38% 1996 $ 8 Mill 79% 1995 $ 4.3 Mill --- STAFFING CONSUMER NON-CONSUMER PACKED GOODS GOODS 1997 12.3 11.4 1996 14.1 11.4 SOURCE: CCG Group Survey: Marketing News, June 8, 1998

PERSONNEL SHORTAGE : 

PERSONNEL SHORTAGE 25% OF BUDGETED POSITIONS WERE UNFILLE D IN 1999 MOVE TO CONTRACT EMPLOYEES CONSUMER NON-CONSUMER (people) (people) 1999 3.8 2.9 1997 3.8 2.0 SOURCE: CCG Group Survey: Marketing News, Aug. 14, 2000

NATURE OF MARKETING RESEARCH STAFFING : 

NATURE OF MARKETING RESEARCH STAFFING % SENIOR LEVEL EARNING $60,000 AND MORE ANNUALLY 1999 82% 1997 71% 1996 60% 1995 47% 1994 52% SOURCE: CCG Group Survey: Marketing News, June 8, 1998, Aug, 14, 20000 % MAKING $100,000 AND MORE ANNUALLY 1999 25% 1994 10%

SALARIES FOR MARKETINGRESEARCHERS : 

SALARIES FOR MARKETINGRESEARCHERS $62,800 $64,800 $74,200 SOURCE: CCG Group Survey: Marketing News, June 8, 1998 and Aug. 14, 2000 $62,800 $64,000 $74,200 $87,000 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 1995 1996 1997 1999

ENTRY LEVEL POSITIONS : 

ENTRY LEVEL POSITIONS ENTRY LEVEL STARTING SALARY FOR UNDERGRADUATE DEGREE IN BUSINESS OR STATISTICS 1999 $ 40,000 % OF FIRMS HIRING CONSUMER NON-CONSUMER ENTRY LEVEL HIRING FOR 1997 19% 28% (UPPER $20’S - MID $40’S) SOURCE: CCG Group Survey: Marketing News, June 8, 1998, Aug, 14, 20000

PERCENT OF US MARKET RESEARCH REVENUES BY TYPE OF MARKETING RESEARCH : 

PERCENT OF US MARKET RESEARCH REVENUES BY TYPE OF MARKETING RESEARCH MARKET MEASURMENT 34.6 % MEDIA AUDIENCE RESEARCH 17.4 CUSTOMER SATISFACTION RESEARCH 8.5 NEW PRODUCT/SERVICE DEVELOPMENT 6.4 MARKET MODELING 4.9 ADVERTISING/BRAND TRACKING 4.9 ATTITUDE AND USAGE STUDIES 4.5 QUALITATIVE 3.5 ADVERTISING PRE-TESTING 2.9 BUSINESS TO BUSINESS STUDIES 2.5 SYNDICATED STUDIES 1.5 OPINION RESEARCH POLLING 1.1 SOURCE: Honomichl Report: Marketing News, June 8, 1998

Churchill TextMarketing Research Techniques : 

Churchill TextMarketing Research Techniques Secondary research Experience survey Analysis of selected cases Group interviews Depth interviews Observation Panels Surveys Experimentation Laboratory Field

PROFILES OF TWO MARKETING RESEARCH DEPARTMENTS : 

PROFILES OF TWO MARKETING RESEARCH DEPARTMENTS

Structure 3M Dental Products Division Marketing Research : 

Structure 3M Dental Products Division Marketing Research Initial/Concept Focus groups Co-Travel/field work Trade shows Quantitative surveys Conjoint analysis Package Design Controlled Use Sim-Ops Actual field trials Test marketing Product/Concept Testing

Structure 3M Dental Products Division Marketing Research : 

Structure 3M Dental Products Division Marketing Research Total Size Product Categories Dental Procedure/Techniques Market Size/Opportunity Secondary Data Torrey SMI Quantitative surveys Trade associations

Slide 24: 

Structure of HP Marketing Research Process Prioritizing strategic ideas Controlled behavioral experimentation Quantitative choice modeling Creating strategic ideas Industry analyst’s reports Trade reports Sales data Customer visits Focus groups Market Research Techniques Goal accomplishment Sales data Quantitative surveys

Slide 25: 

Issues in Implementation of HP Marketing Research Customer end user purchasing agent executive managers OEM’s VAR’s Retail dealers

Churchill TextMarketing Research Techniques : 

Churchill TextMarketing Research Techniques Secondary research Experience survey Analysis of selected cases Group interviews Depth interviews Observation Panels Surveys Experimentation Laboratory Field

Churchill TextMarketing Research Techniques : 

Churchill TextMarketing Research Techniques Secondary research Experience survey Analysis of selected cases Group interviews Depth interviews Observation Panels Surveys Experimentation Laboratory Field EXPLORATORY DESCRIPTIVE CAUSAL

Churchill TextMarketing Research Techniques : 

EXPLORATORY DESCRIPTIVE CAUSAL UNSTRUCTURED STRUCTURED LIMITED KNOWLEDGE GREATER KNOWLEDGE Churchill TextMarketing Research Techniques

RESEARCH PROCESS : 

Research process Problem formulation Research design Design of data collection methods and forms Sample design and data collection Analysis and interpretation of data Research report RESEARCH PROCESS

Price Sensitivity Study : 

Objectives To determine how sensitive property and casualty insureds are to price or premiums To assess the potential for the deregulation of property & casualty insurance To assess the profitability implications of operating in a more price competitive deregulated environment Price Sensitivity Study

Price Sensitivity Study : 

Data Sampling frame: NFO consumer panels Stratified by: US census region annual income age of panel member size of household population density Price Sensitivity Study

Price Sensitivity Study : 

Research Method Descriptive study — Mail survey of 6 pages Sample size Mailed to 1543 households 1250 or 81 percent responded Price Sensitivity Study

Slide 33: 

Total Error

IMPLICATIONS : 

IMPLICATIONS ERROR OCCURS AT EACH STAGE OF THE RESEARCH PROCESS REDUCING ERRORS AT ONE STEP MAY INCREASE ERROR IN ANOTHER STEP DESIGN RESEARCH TO MINIMIZE TOTAL ERROR