C H A P T E R

What Is Marketing Research and How Does It Work?

Do not play this piece fast. It was never right to play ragtime fast. Scott Joplin
What will you learn in this chapter?
1. To appreciate the variety of marketing contributions made by marketing research. 2. What activities are performed during a marketing research project? 3. The definition of marketing research. 4. Who uses marketing research?
(L) REEL REEL CANADA Board member Atom Egoyan with guests Jerry Ciccoritti and Nicholas Campbell at Marshall McLuhan Catholic Secondary School in Toronto. (R) Bon Cop Bad Cops Colm Feore with some REEL CANADA student volunteers

5. Who conducts marketing research? 6. How marketing research fits into the flow of marketing decision-making? 7. The difference between primary and secondary research.

REEL CANADA is a not-for-profit initiative of members of our national film and television industry, designed to bring Canadian films into Canadian classrooms. It is endorsed and supported by National Honourary Patron, the Right Honourable Adrienne Clarkson and a Board of Directors and an Advisory Committee that includes some of our most prominent filmmakers and producers; Atom Egoyan, David Cronenberg, Norman Jewison, Robert Lantos, Don McKellar, Sarah Polley, Jean-Marc Valle and many others have all put their personal endorsement on this vital project.

8. How marketing research societies began in Canada? 9. What are the opportunities for marketing research education in Canada?

Essentially, REEL CANADA is a day-long traveling film festival that moves from one school to another. Each event includes films chosen by the students themselves from a curated program of features, documentaries, animated programs and shorts. Special guest speakers such as actors, directors and other prominent personalities present the films and take part in Q&As with the students. The program was founded only two years ago by the non-profit corporation, Canadian Film in the Schools Inc. with an initial focus on Toronto but with aims to expand straight across Canada; a successful pilot program happened this past semester in Vancouver. As the program grows into new communities across the country in future years, REEL CANADA leadership believes they can not only increase audiences for our films and help move our education system forward into the modern currency of screen based media, but also, most crucially, nurture a sense of cultural identification among young Canadians.

THE CHALLENGE:
REEL CANADAs main purpose, as described in their mandate, is to counteract the continuing dominance of foreign (particularly American) cinema and television by creating future audiences and instilling in young people a sense of pride in Canadian cinema, as well as some understanding of Canadas place in the world with regards to what is, in the 21st Century, the dominant cultural medium. A heady and important purpose but is it working? And how can we measure this efficacy now and into the future? It is with these initial objectives that REEL CANADA approached Youthography in 2008 to help them quantify their success of huge import for their organizations ongoing search for new patrons and funding (in the public and private sector). We responded to this challenge with an in-kind spirit of support for this initiative as well as a proposal to provide REEL CANADA with a potent, two phase, quantitative methodology predominantly designed to: establish trackable national benchmark measures of general youth population attitudes related to Canadian cinema and television; and, establish complementary and comparative benchmark measures linked to responses from actual REEL CANADA participants to gauge efficacy and impact Secondary objectives included a statistical look into responses from REEL CANADA participants related to their personal experience with the actual program itself. All of these services were, and continue to be, provided to REEL CANADA on a pro bono basis by Youthography.

THE PROJECT:
This initial two-phase comparative study involved two waves of fielding: a national benchmark general population study (conducted online) in February 2008 with an aggregate sample size of 2965 respondents aged 9-34
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involving a sub-sample of high school students aged 14-19 of 748 (weighted to reflect StatsCan projections) a linked comparative study of participating high school students conducted immediately after the REEL CANADA program had visited their school (conducted both on and offline from March through May of 2008) with an aggregate sample size of 873 participating high school students aged 14-19

THE RESULTS:
This benchmark comparative study provided some strong statistical support for the benefits of the REEL CANADA program as an important cultural education tool. Across ALL key comparative data points, REEL CANADA participants registered more excitement for Canadian film and television than their non-participating national counterparts In terms of overall interest in Canadian film and television we saw an 11% lift for Canadian movies and a 7% lift for Canadian television when REEL CANADA participants are compared to the national norms established in this study; pretty impressive for a program still in its infancy and only a part of young Canadians lives physically for a single day of school. The good news story continued when looking at a wide variety of responses to attitudinal statements about Canadian film specifically Particularly impressive results for the REEL Canada program could be seen in terms of: building excitement for the Canadian film and movie industry understanding and appreciating the uniquely Canadian perspective that Canadian films and movies provide for the young viewer increasing the coolness factor of Canadian films and movies articulating a latent need for more Canadian films and movies Dramatically, REEL CANADA participants showed a 60% increase in expressing an active interest in learning more about Canadian movies and the people that make them when compared to non-participants. And the hits just kept coming across almost all criteria studied REEL CANADA showed real results in terms of turning young Canadians on to Canadian film.

THE IMPACT:
These benchmark statistics painted a very clear picture; the REEL CANADA program shows huge potential as a vehicle to generate awareness of, and interest in, Canadian film amongst Canadian teens. Indeed, its already showing solid strength to move opinion in a positive direction here in Ontario boding well for rollout beyond provincial borders and development into a truly important national program. As a potent case example it was our research results that helped to secure a pilot program being launched in Vancouver this past term. Of course, as far as looking at true impact we could do no better than to simply provide the Committee with the verbatim perspective on our work straight from Jack Blum, the Executive Director of REEL CANADA; The pro bono work that Youthography has done with REEL CANADA has been of incalculable benefit to the program. First of all, one has to realize that arts/education projects like ours generally have neither the resources nor the expertise to pursue this level of project evaluation. When
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Youthography approached us, REEL CANADA was using a more or less standard method for determining how participants responded to the project. Youthography proposed a whole other level of evaluation, one that would measure a change in attitude among our participants as compared to national control group data. Happily, the results were extremely positive and the study that Youthography published has subsequently been distributed widely and consumed with great interest by a wide range of our stakeholder groups. As a result, not only are we able to demonstrate statistically that the program is achieving its stated goals, we are also able to establish ourselves as being a cut above the rest when it comes to project tracking. There are other ramifications to Youthography's contribution that go beyond the validation of REEL CANADA's process: the study has attracted enormous interest in both the Canadian film and the educational communities. For the former, it has opened up this methodology to an industry that has hitherto neglected this kind of market research, and for the latter, similarly, it has established higher standards of project tracking for other projects and their funders. As a coda, the study was recently passed to an official at the Ministry of Canadian Heritage, to be included in an upcoming report to cabinet on Youth Engagement. Youthography, as a result of its vision and social conscience, has made a huge contribution to the REEL CANADA program. Jack Blum, Executive Director, REEL CANADA April, 2009
This study was awarded The Murray Philp Altruistic Award 2009 for a market research project done on a pro-bono or reduced profit basis, for a not-for-profit organization that has contributed positively to the individuals, groups or communities, within our Canadian Association, that it was meant to help. The research was conducted for REEL Canada by Youthography (Mike Farrell, partner and chief strategy officer, and Mike DAbramo, director of research & strategy).

Introduction and Welcome to Marketing Research

Marketing research deals with the collection, processing, analysis, and communication of information regarding peoples attitudes, feelings, intentions, and behaviour toward products, services, and those organizations and people involved in any aspect of marketing.

Many organizations use marketing research; some on a regular basis and others when the need arises. Marketing research has a broad base of support in Canada and in many countries around the world. The procedures that marketing researchers use to obtain and provide information to marketing decision makers is tremendously diverse. While many marketing researchers spend much of their lives working for consulting firms, many others work for companies that provide the products and services that we, as consumers, use in our businesses our daily lives as in our daily lives. Consider the following marketing activities that rely on marketing research for information: 1. A community health organization needs to know how to better develop parenting classes for parents of mentally challenged children. 2. The president of an energy company needs to understand the concerns of the companys employees as the jurisdiction goes through deregulation. 3. A wine merchant can save $250,000 a year by changing the bottle shape for one of its wines. However, will changing the shape cause consumers to buy more or less of that brand, and by how much? 4. A pharmaceutical firm needs to know which form of a new drug to market.
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5. A manufacturer of bar code-readers wants to expand its product line by having other companies integrate bar-code readers into their products. 6. A religious organization needs to understand the perceptions and preferences its members. The people you will meet next are marketing research consultants and have been prominent in marketing research in Canada. Youll find that each has an interesting perspective on marketing research that may help you better understand this important field of business.

Why Consider Marketing Research as a Career?

In late 1984, I had occasion to have a quick flip through a then recently published book authored by renowned advertising guru, David Ogilvy, entitled, Ogilvy on Advertising. The small section within concerning the practice of marketing research was my only textbook on the subject and, in fact, the first time I had ever heard or even thought of marketing research as a career. I was hooked by a good book. You hold in your hands the better hook. John Ball, Past President, MRIA This is the latest edition of Modern Marketing Research the definitive and comprehensive source for the critical techniques and approaches necessary to produce the art and science of marketing research in Canada. Our professional association, The Marketing Research and Intelligence Association (MRIA), is the self-regulatory body that governs, represents, and sets professional standards for Canadas marketing, survey and public opinion research and market intelligence industry, and is its single authoritative voice. At the time of this edition, our growing membership included over 1,900 individual practitioners and more than 350 corporate members, comprised of research agencies of all sizes; major corporations in a wide range of industries; and suppliers to the industry. Whether working with consumers on the front line or bringing analysis and insights to users, our expertise is coveted by everyone from policy makers and decision makers in local government to CEOs of major corporations. And so, it is with great envy and pleasure that I introduce to you the joys of our chosen career with this latest text containing as it does a level of detail and pragmatism absent when I began my journey. I do so with rapt anticipation that some of you will find within its pages the inspiration to carry on and choose marketing research as a rewarding and stimulating life endeavour. For others, it would be my fervent hope that, at a minimum, you gain an appreciation for the value of marketing research techniques and approaches that, when intelligently applied, bring the voice of Canadians to bear on decisions affecting our schools, governments, and the goods and services we all enjoy. At MRIA, we raise public awareness of our profession through our VoxPop campaign which polls Canadians on key issues. Our motto is, You speak. We listen. Things improve. As an industry, marketing research practitioners in Canada represent the voice of customers, employees, business partners, and consumers whoever and wherever they might be. As practitioners, it is our obligation to keep pace with the latest and greatest techniques and approaches. Whether you are reading this text to refresh or to learn for the first time, you will have accomplished this. It is filled with real examples and case studies from practicing research professionals and is authored by two of our industrys leading educators and practitioners; themselves both fellows of our association.
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It has been my privilege to practice research in my chosen career and to have had the honour of introducing this course material to you as a means for you to one day possibly do the same. Enjoy and bon voyage!

As the President and CEO as well as cofounder of Corporate Research Associates Inc. and Vice Chairman of the CCL Group of Companies, Don is one of Canada's leading public opinion and market research professionals. He has been involved with all phases of primary and secondary research activities since the early 1970s and has personally been involved in hundreds of studies including regional, national and international work in both the private and public sectors. Recognized as an expert in his field of public opinion and market research, he is a frequent media commentator on public opinion issues. Believing strongly in volunteerism, Don is actively involved in numerous boards and organizations including President of The Canadian Association of Marketing Research Organizations (CAMRO), Chair of the Greater Halifax Partnership, Past Chair of The Arthritis Society, Board Member of the HIAA and Dalhousie University. He has a BBA from Bishop's University and an MBA in Marketing from Dalhousie University. Don was selected 2001 Business Person of the Year by the Metropolitan Halifax Chamber of Commerce as well as one of The Top 50 CEOs in Atlantic Canada for 2001 and 2002 by Atlantic Business Magazine. Don Mills, President & CEO, Corporate Research Associates Inc. Corporate Research Associates Inc., Past-President MRIA

Marketing is the set of activities involved in initiating, enhancing, and supporting the exchange of goods, services, and money between providers and customers. Exchange occurs when one person provides something of value to another person who in turn gives something back of equal value.

WHY DOES MARKETING RESEARCH EXIST?

Marketing research exists for only one reason to help managers make better marketing decisions. So, first we need to consider the core of marketing. Marketing is the set of activities involved in initiating, enhancing and supporting the exchange of goods, services and money between providers and customers. To be fully effective, marketing needs relevant information about consumers. Marketing research provides that information. Of course, many marketers make excellent marketing decisions without marketing research. Those marketing managers who have rich experience, a diversity of background, intelligence, good contacts and tremendous insight can consistently perform very well in the market. Marketing managers are paid to make good marketing decisions, whether or not they have marketing research to rely upon. Every marketer must consider a wide range and depth of phenomena in order to understand the environment, competition, customers and prospective customers. Marketing research allows the marketer to depend on objective market information gathered and analyzed specifically to help with the impending decisions. The marketer can then pay more attention to all of those other facets of the decision for which there is no objective market information. Most human interactions are very complex and marketing is no exception. Those involved in marketing often see the world as being comprised of relationships, each of which began at some time for a specific reason. These relationships either persist because the parties involved continue to get what they want from the transactions or
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A distribution channel is the process through which a product passes on its way from the manufacturer to the end-use customer.

they are terminated when one of the parties decides that their needs can be satisfied better in some other way. The diagram in Exhibit 1-1 shows the three primary parties in most business to consumer (B2C) relationships. The customer can be an individual, a household or some other entity that is the end user of a product or service obtained through some type of distribution channel. This channel often leads to a retail store but could be a factory outlet or internet site. The provider might be a manufacturer who uses intermediaries, called business partners here, to distribute the product or service to the end-use customers. Of course, the channel might be extremely short if a manufacturer sells directly to customers either through its own brick-and-mortar retail outlets, direct mail or over the internet. Lengthy channels exist in industries such as tools and home repair products. Home Depot is one retail model where household customers purchase a variety of products for their homes and the tools with which to install those products. Tool manufacturers, such as Black and Decker, Makita and Porter-Cable, never directly sell to the public and, consequently, never actually ever see or talk to end-use customers. They rely on their business partners to offer their tools to the public, to complete transactions and to maintain those positive relationships that motivate customers to return to the store.
EXHIBIT 1-1

Multiple-Party Exchange Transactions

?
Customers Business Partners

? Why? ? ?
Employees

Provider
The question marks in Exhibit 1-1 can be replaced with variations of the question, Why would the ____ (customer/business partner/provider) _____ (buy from/ sell to) that ____ (provider/ business partner / customer)? Answering these questions occupies much of the time of marketers and marketing researchers. For example, Why would Ian Thompson buy a Makita cordless drill from Home Depot? Addressing that question for Ian, Makita and Home Depot can occupy a great deal of each partys time. Ian has probably considered and answered in his own mind all of the questions that Makita needs answered. He might have consciously thought about some of these questions and unconsciously developed answers to others. And, of course, he is liable to discuss this decision with only one other person, most likely Mrs. Thompson. So, neither Home Depot nor Makita get information about the Thompsons decision unless they ask. This could be the beginning of a marketing research project. Either Makita or Home Depot could begin this marketing research project for their own reasons. If Makita initiates the research, they will be concerned primarily about the
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EXHIBIT 1-2

connection between the Thompsons and Makita. Of course, this might always remain an indirect relationship. The Thompsons might feel pride in owning a high quality Makita product, or not. Whether this ever occurs can be discovered only through research. Makita benefits from the money that flows to it from Home Depot, perhaps directly or indirectly. Also, of course, Makita would like the Thompsons to tell their neighbors, friends, family and acquaintances about their purchase, if they are pleased. Once again, research is needed to determine if the Thompsons were pleased or displeased with their purchase, and whether they told anyone about the purchase and their attitude toward Makita and Home Depot. The Thompsons relationship with Makita might remain indirect forever or they might need a direct connection for warranty work. However, many manufacturers subcontract warranty and other customer contact work to relationship management firms. So, even a warranty call might connect the Thompsons to a third party call center rather than to Makita directly. Naturally, Makita should concentrate their research on all possible connections between purchasers of Makita products and relevant business partners. Any glitch in these interactions can have severe negative ramifications on Makitas future sales. Makita should also be very interested in the linkage between the Thompsons and Home Depot, since this company provides the direct transaction of product for money and might be the only connection that the Thompsons ever have with Makita. If this is true, Makita should be concerned about how their products are represented to the Thompsons and what image Makita tools garner by being represented in this manner by Home Depot. Once again, a marketing research project initiated by Makita is needed to obtain this information. If Home Depot were enticed by Makita to cooperate in the project, both companies, as well as their customers, would benefit from the research. The Internet has spawned another marketing channel for many products. As Exhibit 1-2 shows, Makita tools are now sold on-line by Amazon.com and by other web providers. This connection is a realistic extension of marketing distribution to provide coverage of as many customer segments as possible. How do you think Home Depot and other bricks-and-mortar retailers feel about competing against internet retailing? Marketers have a tremendous need for relevant, timely and insightful marketing information. Producers of goods and services need information about the market and marketing. For example, the manufacturer of a breakfast cereal may want to know about the potential buyers, their abilities to pay a given price, their breakfast habits, their likes and dislikes. The manufacturer of computer software may want to know the requirements of a given type of business so that efficient computer programs can be written and marketed. Many companies are very interested in the using the Internet as an additional, or alternative, marketing channel. Marketing researchers have found the internet to be a very powerful and flexible media for conducting marketing research. Broadcasting surveys over the Internet to prerecruited members of internet consumer panels has provided a relatively faster, often less expensive and, sometimes, more agreeable way to understand the behaviour, attitudes and characteristics of individual and business consumers. However, few, if any, methods to conduct surveys are without problems and we will review internet surveys later in the book.

What is Marketing Research?

Marketing research deals with the collection, processing, analysis and communication of information regarding people's attitudes, feelings, intentions and behaviour towards products, services and those organizations and people involved in any aspect of marketing. The following is one commonly accepted definition of marketing research:
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Marketing research is the function which links the consumer, customer, and public to the marketer through informationinformation used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. (American Marketing Association, 1987).

When defining the term in the Code of Conduct of the Marketing Research and Intelligence Association, Canadas professional association for marketing research, research is defined as follows.
Research is the collection and analysis of data from a sample of individuals or organizations relating to their characteristics, behaviour, attitudes, opinions or possessions. All forms of marketing and social research are included such as consumer and business, qualitative and observational studies, competitor intelligence, sociological and psychological investigations.

There are several ways to dissect the area of marketing research. One of these is by the source of the information. Primary research refers to those projects that are executed to specifically obtain information to meet the objectives of a current marketing problem. This type of research always generates new data and information. Whether the research is a survey, a focus group or mystery shopping, it produces primary data. Two weeks after the primary research project is finished, someone else might retrieve and use that data for a slightly different purpose and they are then called secondary data. Secondary research refers to the search, retrieval, use and analysis of information not collected specifically for the purpose at hand. The original data might have been collected using any of the marketing research methodologies that are used for primary research (e.g., surveys, focus groups, etc.). The distinguishing difference between primary and secondary information is secondary information was at one time the primary focus of a marketing research project. It was conducted in the past for some reason other than the one that is motivating the current research. Secondary research is also called "desk research" because the researcher can very often call for the data or access it over the internet and perform the analysis without getting up from the desk. Chapter 3 will focus on secondary research while the rest of this book will deal almost exclusively with primary research. In more specific terms, marketing research:

Primary research is a marketing research study that is designed and executed to address a current need for additional information on which to base a marketing decision.

specifies the information required to address the relevant marketing issues; designs the methods for collecting the pertinent information; manages and implements the data collection process; analyzes the data; transforms the findings into usable marketing information; communicates the information and its implications to the marketing managers. (See Exhibit 1-3).

These and other similar definitions characterize marketing research from an academic perspective. However, marketing research is not a discipline that fits into neatly defined boundaries. Nor is its scope clearly defined and static. The subject matter can and usually does include diverse areas such as social research, psychological research, health services research, advertising research, political polling, and analysis of historical data records. It also includes competitive research, data mining, and several other related research areas. Students of marketing research can get a better idea of what marketing research is by understanding what market researchers do. The purpose of this book is to explore the activities of marketing researchers and the tools and techniques they use. We will also investigate the wide variety of applications that occupy marketing research practitioners. The bulk of marketing research is carried out with a view to improving the marWhat Is Marketing Research and How Does It Work?

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EXHIBIT 1-3

The Basic Steps of Marketing Research

Communicates Transforms Analyzes Manages Designs

Specifies

keting of goods and services through better marketing decision making. However, marketing research significantly contributes to the development and refinement of public policy based on more informed decisions by public sector managers and politicians. To assess the scope of marketing research, consider the problems that are routinely handled by marketing decision makers that need market and marketing information, as listed in Exhibit 1-4. Marketing research can contribute important information to all the situations described in Exhibit 1-4. In addition, there are hundreds of other ways in which marketing research can be used. Additional examples of marketing research projects are used throughout the book.

WHAT IS MARKET RESEARCH?

Market research is a subcategory of the broader field of marketing research. Sometimes the phrase market research is used in place of marketing research. The term market research should be used when the need is to describe the market for a good or service. This is in contrast to marketing research, which serves the broader function of providing information that will help the organization to develop and implement more effective marketing strategies, tactics and procedures. Of course, to provide good marketing research, adequate knowledge of the market is needed as well. Market research is based on secondary information as well as primary marketing research. A quick profile of the market might be obtainable from reports produced for members of a marketing association or from Statistics Canada reports. More detailed and focused information might necessitate a marketing research survey specifically tailored to the organizations needs. Often marketing research surveys provide both types of information. For example, almost all surveys contain questions that fall into a category called demographic information. Demographic variables include residence location, residence type, education, age, income, marital status, occupation, household composition as well as other variables that help to describe the individuals who provide survey answers. Sometimes, behavioural information such as shopping locations, usage amounts and the frequency of purchase are obtained. All of this helps the organization to better understand the environment in which it operates or intends to operate.
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EXHIBIT 1-4

Some Typical Marketing Problems

You want to design new ways for electricity customers to buy electricity. You need to determine the best long range strategy within a specific category of pharmaceuticals. You want to discover whether consumers would find a perfume desirable. You want to determine on which features your grocery supermarket chain and its four main competitors excel and how best to compete. You need to discover the transition of tastes for wine in Canada. You want to understand the quality of the experience of customers who have stayed at the Marriott in Calgary during the past week. You want to design parenting courses to maximize the uptake and ideally suit the needs of parents of children with mental disabilities. You would like to know whether the DVD writer market is large enough for a new brand. You want to determine the best marketing strategy so that you can expand the number of women in the 19 to 35 year old group who buy and read your womens magazine. You need to understand the needs of members of the Baptist conference in Ontario. You want to identify the potential impact on the sales of fuel at your FBOs (service stations for airplanes) across Canada if a dominant chain from the USA decides to enter the Canadian market. You need to determine the best price at which your new subcompact car should enter the Canadian market and with which other subcompacts this car will compete against most directly. You would like to know if the market for snow boards and wake boards is growing or declining. You would like to understand what image your Crown corporation has among the public. You want to know how much public support your corporation has garnered due to its environmental policies. You would like to identify what makes customers loyal to your bank and especially the effect of managers of branches on customer satisfaction and loyalty. You want to explore the reasons for residents likes and dislikes of your community recreation programs. You want to find out how the public image of your corporation compares with other similar corporations. You are associated with a political party and would like to predict the election results: You want to know which party is viewed more favourably. You want to know whether any party is gaining or losing popularity. You want to know the factors that are likely to influence delegates to the next leadership convention of the Liberal Party. You want to know who the undecided voters are and why they are undecided. You are a publisher of a magazine and would like to know more about your readership: You would like to know the demographics of your readers. You would like to know their likes and dislikes. You would like to know what motivates a person to subscribe to your magazine. You would like to know their lifestyles. You are with the federal government and would like to know about the current trends in public thinking: You would like to know what the voters think about requiring CEOs in Canada to attest to the accuracy of the financial statements for their firms. You would like to know whether Canadians would support a free trade deal with South America. You would like to know how to best evaluate the efforts of the Federal government to reduce air pollution.
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The scope of marketing research pertains to the range of activities and the depth of those activities.

This book will introduce you to some terminology with which you might not be familiar. To assist in learning and organizing this new terminology, you might want to consult a glossary of marketing research that is maintained by the European Society for Opinion and Marketing Research (ESOMAR) at the website, www.esomar.org/ index.php/codes-guidelines.html, as does MRIA at its website, www.mria-arim.ca/ STANDARDS/CODE2007.asp. .

WHO USES MARKETING RESEARCH?

Marketing research is used by marketing managers, product managers, media planners, advertising executives, educational managers, government bureaucrats, politicians, managers of non-profit organizations, the legal system and, in fact, by any organization that needs information from the public. The use of marketing research expands regularly in North America as well as in most other countries. The bulk of commercial marketing research is conducted for firms that market products to the public through retail operations. However, during recent years an increasing amount of research has been done for pharmaceutical firms, financial institutions, health organizations, public service organizations and firms that provide other services. The various levels of government in Canada are responsible for a very large amount of marketing research. Statistics Canada alone accounts for a tremendous volume of marketing research studies. Provincial governments typically conduct research to understand the tourism market better. Metropolitan governments conduct marketing research to assess the social and economic impact of large public development projects; while private land developers conduct marketing research in order to show municipal planning committees that the public is not opposed to the type of development that they propose.
A Good Statistics Guide would never make the best-seller lists. Mores the pity. Official statistics steal headlines, wipe billions off shares and defeat governments, yet all too often the numbers are ropey. Britain's national accounts, for example, are so riddled with holes and revisions that the true state of its economy is anybodys guess... How might Britain's record be improved? Look at the worlds best official statisticians: Canada, followed closely by Australia, Sweden and Holland. These countries systems are centralised with most numbers collected by a single body whose independence is guaranteed by law. (The Economist, 1990.)

Industry associations such as the Canadian Institute of Steel Construction, the Canadian Manufacturers' Association, the Canadian Institute of Chartered Accountants, the Canadian Survey Research Council and others conduct marketing research studies from time to time to make a base level of market information available to all of their members. These studies can be quite extensive and substantially help the associations members to better understand the overall market for the product or service. Naturally, these findings do not provide competitive information. Some of the member organizations might then decide to conduct their own studies to gain information that can provide them with their own unique competitive advantages. Sales representatives for newspapers and other media use readership and listening studies to show prospective advertisers the profiles of those who read the newspaper or listen to the radio station. The advertiser then has a much better basis for deciding if the target market can be reached by the publication and if advertising dollars should be spent in the media. Media planners in advertising agencies must determine how to spend their clients advertising budgets for maximum impact. To do this, they use marketing research from the Bureau of Broadcast Measurement (BBM) to identify the time
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slots, programs, and stations that will achieve the best coverage of the targeted markets. The Print Measurement Bureau (PMB) is relied on for information on readership of print media, while NADbank specializes in newspaper readership information. Apart from these obvious uses, marketing research is also used to prove and disprove points of views for legal or competitive purposes. For example, a manufacturer may commission a research project with a view to isolating certain facts that can be used in an advertising campaign: "Two out of three consumers preferred drink A over B." Here the direct purpose of the research project is not so much to collect information for decision-making as to provide input to advertising claims so that they can pass the scrutiny of government regulatory agencies. Marketing research is frequently used to help the courts in Canada to better understand if trademarks are being infringed upon. For example, Labatts Breweries owns Oland Breweries of Nova Scotia. Oland introduced Oland Export in the 1920s and has owned a Canadian trade-mark registration for its Oland Export ale label since 1951. In 1996, Labatt attempted to introduce that brand into the Ontario market. Molson began proceedings in the Ontario Superior Court of Justice against Labatt and Oland contending that Olands marketing of its Export was likely to cause confusion among beer drinkers with Molson Export and that Oland was attempting to pass off its wares for those of Molson. A survey was conducted for Molson by a marketing research expert with the objective of establishing confusion and passing off. When Mr. Justice Kealey of the Ontario Superior Court of Justice dismissed the Plaintiff s (Molson) actions with costs payable to the Defendant (Oland), Molson proceeded to litigate this matter in the Federal Court of Canada. Another survey was conducted. In both cases, an expert hired by Labatts reviewed the surveys and submitted affidavits to help the courts understand the value of the marketing research findings. Marketing research is sometimes used to provide evidence in other types of legal cases. There is a case on record in which Revenue Canada carried out a study to find out the meaning of dentifrice, because a particular company claimed that its toothpaste was a health product and deserved a tax break. Marketing research was also used in the "Ontario Champagne Case" in the Supreme Court of Ontario by the Champagne producers of France. They wished to establish that when people in Ontario heard the word champagne, they thought of the sparkling wine called "Champagne," produced in the Champagne region of France. In fact, the marketing research was unable to prove this and the Champagne producers of France were not successful in that case.

WHO CARRIES OUT MARKETING RESEARCH?

Marketing research is usually carried out by companies that specialize exclusively in marketing research. Some marketing research firms, such as TNS Canadian Facts, Maritz Research, Ipsos Reid, and Synovate, are so large that they undertake to execute almost any type of marketing research project. At the other end of the spectrum are companies that concentrate on very specific areas of research, such as political polling or policy research, automotive research, health sector research, panel research or new product research. Other companies specialize in some functional aspect of research, such as group discussions, computer tabulation of the data, special statistical analysis of the data, or fieldwork interviewing. In addition, an individual professional marketing researcher (PMR) can execute most types of marketing research studies by subcontracting components of the project. Exhibit 1-5 gives examples of various types of research firms. Very few client organizations, i.e., manufacturing and marketing firms, are staffed and resourced so fully that they are able to conduct full marketing research projects from beginning to end. For example, Campbells Soup and Labatts contract their marWhat Is Marketing Research and How Does It Work?

A professional marketing researcher is a person who has been educated in marketing research, has substantial experience in all or almost all phases of marketing research, and is actively involved in providing marketing research services for most or all of their work week. The Professional Marketing Research Society is authorized to designate members as Certified Marketing Research Professionals (CMRP).

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EXHIBIT 1-5

Who Does the Research? Who is is doing research? Who doing the the research?

Internal

External Other PMR

Full Service

Custom

Standardized

Syndicated

Omnibus

Panels

Limited Service

Field Services

Data Services

Analytical Services

Statistical Analysis Recruiters

Qualitative

Moderators

Rooms

An organization will typically contract a consulting firm to conduct their marketing research. If this is a fullservice marketing research firm, the entire project is likely conducted by that company. A firm that is not full service will subcontract other firms to conduct parts of the marketing research project on behalf of the original contractor.

keting research to outside consultants and marketing research firms. In fact, the functions of most marketing researchers in client organizations are to consult with marketers in the company, determine their needs for marketing information, inform them of procedures that can obtain that information, write requests for proposals, find wellqualified marketing research consulting firms, award the contracts, monitor the project, ensure that the project meets all requirements, perform any additional analysis that might be needed, interpret the findings for relevance, communicate the findings to the appropriate managers and maintain contact with those managers to determine if the research served the needs and to identify if any additional research is required. This certainly sounds like a tremendous amount of responsibility, and it is. Still, the majority of the marketing research work in these organizations is contracted out to marketing research professionals who work in consulting firms. Any one marketing research project might be executed by one large marketing research firm or by a much smaller firm, maybe even a sole practitioner, who might subcontract pieces to other smaller consultants. When credibility is a problem, firms are well advised to utilize outside suppliers instead of their in-house facilities. In some cases, it is hard to measure your own company's performance objectively. Outside sources may also be used when in-house facilities lack the capacity to conduct the research, when special competencies are required, or when they may be cheaper. For example, it may be cheaper to use a market research firm based in the actual market to conduct a telephone survey, instead of trying to do it from an in-house, centralized marketing research department located in the head office of the manufacturing firm. Most marketing research is contracted to consulting companies that specialize in professional marketing research. However, many accounting, engineering and general
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management consulting companies state marketing research as one of their services. Very often, the marketing researchers in these accounting, engineering and management consulting firms determine the needs of the client and then subcontract at least the fieldwork and often a high percentage of the project to professional marketing research firms and sometimes to several individual consultants. Those firms that attract marketing research business but subcontract the entire project to professional marketing research firms are designated in Exhibit 1-5 as other. The term PMR is used in Exhibit 1-5 to refer to professional marketing researchers. While PMR in that exhibit refers to professional marketing research practitioners in consulting organizations, professional marketing researchers are employed in client organizations that use the information produced by marketing research projects. A professional marketing research firm is a marketing research consultancy that conducts its business in a professional manner. Of course, professional manner can mean different things to different people. Marketing Research and Intelligence Association is the national professional marketing research organization for Canada. One gauge of professionalism is whether a marketing research organization belongs to MRIA. MRIA is comprised of individual members and marketing research firms under different categories. (See www.mria-arim.ca/MEMBERSHIP/Categories.asp for the types of membership available.) MRIA has a well-defined code of ethics and professional conduct that its members are obliged to uphold. Full service professional marketing research firms can operate as the sole contacts for clients on almost any marketing research project. They offer all, or almost all, of those services that are typical components of quantitative marketing survey projects. These services include: 1. consulting with the client to fully understand the purpose, objectives and scope of the research project; 2. understanding how to meet the needs of the organization for marketing and market information; 3. designing a questionnaire to elicit the information needed from respondents sampled from the relevant population in society; 4. designing the sampling process to ensure that the sample respondents are selected in the proper way from the relevant universe; 5. determining the analysis or the range of analyses that will be used to provide information best suited to the clients needs; 6. designing and executing the fieldwork in the best way possible, given the study objectives, questionnaire, sampling, and budget; 7. analyzing the data to extract important marketing and market information; 8. interpreting the research findings to maximize the marketing benefit to the client; and 9. presenting the findings to the client in written and oral forms. While the full service professional marketing research firm is capable of providing the complete range of services, some of the functions might be subcontracted to other firms from time-to-time. For example, some large research firms become overloaded once in a while. If this were to happen in the area of telephone interviewing, other firms that conduct only fieldwork are able to supply this work to the primary contractor. Also, if particularly sophisticated statistical analysis or sample design are needed, the firm might not have a statistician within the firm who can handle that work. To supply these resources, there are firms that are very pleased to help complete the project by conducting the appropriate sampling design or statistical analysis and hand the work back to the primary contractor.
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What Is Marketing Research and How Does It Work?

RESEARCH IN PRACTICE

Mike Farrell
Partner and Chief Strategic Officer Youthography / Y Syndicate Mike has been involved with youth trends and values studies for a shade over 12 years operating in a number of methodological management and analytical capacities. In those years he has developed a strong reputation in the fields of youth / pop cultural trends study and youth / young adult marketing. At the start of his career he was the core leader on the debut of The Angus Reid Groups (now Ipsos-Reid) first dedicated response to youth and young adult-oriented market research - the popCulture report. Now, as a founding partner and chief strategic officer at North Americas leading youth marketing consultancy Youthography Mike has taken his insight and creativity to new heights in an environment that he and his partners have modeled fully for, and around the tri-way intersection between marketing, communication and youth with youth sitting squarely at the epicenter. Youthography, now 8 years young, has a long list of established clients / devotees who have come along for the insightful ride including Nintendo, Kraft Foods, Molson, Ford, Pepsi- QTG, McDonalds, Hershey, American Red Cross, The Federal Government of Canada, Coty, Nike, Fuji, American Eagle Outfitters, Bell Mobility, Alliance Atlantis, CBC, The Ontario Ministry of Health and Long Term Care, Priszm Brands, Kelloggs, McNeil Consumer Healthcare, City of Toronto, Peel Health, Kids Help Phone and most major advertising agencies in our fair continent.

Mike is frequently called upon for his insight on the media level. Over the past number of years his work and perspective has been cited in a number of nationally significant periodicals including The Globe and Mail, USA Today, The Christian Science Monitor, Boston Business Journal, National Post and The Hill. Industry journals including Alert, Vue, Strategy and Marketing Magazine also routinely employ Mr. Farrells insight. On the television and radio front, Mike has received coverage on all major television networks and is a frequent guest on any number of local and national news and talk radio programs. Topping this all off, Mr. Farrell speaks regularly to various business groups and participates in industry panels throughout Canada and the United States. He has also had articles published by a number of organizations including the Canadian Advertising and Research Foundation, the MRIA and the Market Research Association of America.

Why the interest?

Mr. Farrell explains by saying, all too often this somewhat trendy arena of research is fraught with subjectivity and the whims of people who really haven't put their own assumptions and hypotheses to the test. Applying academic rigor to these perspectives gives our clients a reasonably un-biased and well thought out approach to the key questions facing tween, teen and young adult marketers and culture today. Mike not only brings expertise garnered from his years studying cultural trends and values in North America to any project hes in charge of but he also brings a vibrant style. This has been honed by regularly performing what he calls balls to the wall rock and roll in and around the underground scenes of Canada and Europe with his band The Pariahs.

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Many of these full service professional marketing research firms conduct custom research, standardized studies, syndicated research and omnibus studies. Custom research is designed and executed for one client and to satisfy one specific need of that client for marketing information. This would be primary research and could be any size of project. As its name implies, this research is tailored to the clients desires. As a marketing research consultancy matures to the point of having executed many projects, some of these custom studies will have very similar components. For example, customer satisfaction studies have a great deal of similarity among themselves, as do customer loyalty studies. However, there can be substantial differences among industry sectors and each company within an industry might want their study to be conducted somewhat differently from the studies of competing firms. While some companies within an industry might use the same consultant, most firms prefer to use consultants who do not work for competitors. Sometimes in Canada, that is difficult due to the relatively small number of marketing research firms. Standardized studies might have begun at some point in history as customized research that served a need within an organization and, perhaps, evolved into a type of study that other firms wanted to use as well. Over time, many of these studies became standardized and are currently offered to any client. Sometimes a standardized study begun by one marketing research firm has spawned a mini-industry focusing on variations of that standardized study. Customer satisfaction research is one of the most widely utilized examples of standardized studies. Many firms offer their own particular twist on customer satisfaction measurement and each of these would be considered a standardized study if the questionnaire and field methodology is fixed and it is offered in the same form to any interested client. Syndicated studies are entrepreneurial efforts by individual marketing research firms to sell continuing business and to establish a particular image as an expert in a field. One example of a syndicated study is Health Online from TNS Canadian Facts, and Rethinking Citizen Engagement from EKOS Research Associates Inc. Omnibus services are shared-cost studies provided by several marketing research firms in Canada. Omnibus studies are conducted on a wide range of topics, from air travel to wireless networking. The key reason for participating in an Omnibus study is to access a potentially large sample at minimal costs. The total cost of a marketing research study is comprised of both fixed and variable costs. The fixed costs include the cost allocation of operational parts of the research firm that are assigned to the study, designing the project, the common components of the questionnaire, and the sampling, and the costs expended to obtain and analyze the demographic questions. The variable costs include the time needed to design questions for each sponsor, interviewing time, data preparation time and the time to analyze the data for each sponsor and to prepare the report for each sponsor. Overall, the cost to each client is less than what they would spend if each company had a custom study designed and executed for the same general purpose. Omnibus studies have become a key product of many larger marketing research firms. And lately, several smaller companies have begun to provide this service, usually in quite focused categories or geographic areas. Those firms to which project components are subcontracted constitute a fairly significant part of the marketing research industry. Even research firms that specialize in one area will often carry out research in almost any other area if they have the resources and expertise to do so, or if they can hire the expert consultants needed. For instance, prominent political polling companies claim to derive only about 10 to 20 per cent of their revenue from political polling. While a marketing research firm might have an excellent capability to execute general level marketing research projects, it might lack the expertise to conduct very speWhat Is Marketing Research and How Does It Work?

When a marketing research project is specifically designed and executed to provide information to support marketing decisions within the organization, it is called custom research.

Standardized studies are marketing research projects that are always conducted in the same way, regardless of the client.

Syndicated studies are designed and executed by marketing research firms to fill a need among several marketing organizations. The study is completed and then the report is sold to those needing the information. Omnibus services are sharedcost marketing research projects, i.e., several noncompeting clients contribute questions, share study costs, and get answers back to their own questions and to the common demographic questions.

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EXHIBIT 1-6
Research Functions Full Service

Examples of Marketing Research Firms

Examples of Marketing Research Firms That Perform These Functions Corporate Research Associates Compass Maritz TNS Canadian Facts POLLARA IPSOS

Political Polling

Environics

Corporate Research Associates Dufferin Research House

Fieldwork Fieldwork Special Analysis

Opinion Search Opinion Search marketPOWER research Research House

Elemental Data Collection Consumer Contact Standard Research Systems Pierre Belisle

Research Now Open Venue Advanis

Qualitative

Karom Group

The firms listed here are just examples. They are not chosen on any criterion except that they are representative of their category. Some firms listed under specialties also conduct general studies and other special studies. Often these firms will cross these categories. For example, Environics is listed under polling and it performs a much broader range of marketing and social research, including special analyses. While marketPOWER research might be known better for special analysis, mPr also provides full project management, including qualitative.

cialized studies. For example, a research firm that is good at interviewing consumers may lack the skill or the personnel to interview opinion leaders on the impact of free trade. Specialists in specific areas of research such as political pollsters, social researchers and policy researchers may not consider themselves market researchers. Such specialists may even take exception to market researchers including their areas of expertise under the term marketing research. They may even be technically correct. However, the techniques used in different areas of specialization have a common logic, structure and procedures. Firms that specialize in marketing research have the infrastructure and, in most cases, the expertise to tackle problems in related fields. In cases where the research firm has the capability to complete the physical aspects of the project but not enough technical expertise to design or analyze the study, it may employ consultants for guidance. Currently, there are many major full-service marketing research organizations in Canada. Also, many marketing research firms from the United States operate in Canada and many Canadian firms operate in the US and internationally. In addition, there are quite a large number of small (often one-person) research consultants and qualitative research specialists that contribute substantially to the overall competence and vitality of the marketing research industry. There are also many marketing, management, accounting, economic, and engineering consulting firms that advertise marketing research as one of their services. Some do, but most subcontract the marketing research to a marketing research specialist if such a job were obtained. These consulting firms would assist their clients to define their needs for marketing research, identify the objectives and scope of the project and help interpret the findings at the end of the research study. Some of the large accounting firms employ several professional marketing researchers and have full marketing research departments. However, it is rare for these companies to have the field interviewing resources.
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Some advertising agencies also announce to current and prospective clients that they conduct marketing research. Mostly, the marketing research personnel in advertising agencies act in the same manner as marketing research managers in manufacturing firms: they determine what research their advertising clients want, help with the initial design of the project, subcontract the execution of most of the actual marketing research, and then assist the client to understand and interpret the findings.

MARKETING RESEARCH AND MARKETING DECISION MAKING

Marketing research information is used by management as an aid to making decisions; for example: Should a company introduce a new product? How can our firm prosper in a more competitive environment? Will a given advertisement antagonize the consumer? What media are most suited for a given message? What appeals would be most effective to change the corporate image? Of course, marketing research information is only one component in the marketing decision-making process. For example, even if research indicates that there is a market for a new product, the development, marketing and management of that product are very challenging tasks that go far beyond the bounds of marketing research. The product, if launched, may not succeed; or, it might achieve a greater market position than initially projected. These actual results do not come about because of, or in spite of, the marketing research. The marketing management would receive the laurels or the blame for the product's success or failure. The key factor influencing a brand's position could be any of the following marketing activities: pricing, product formulation, product distribution, the competence of the sales force, the effectiveness of the advertising campaign, the activities of competitors, the relationships developed by the company with its customers and other such factors. It is important to remember that marketing research must not dictate management decisions. It can only advise and guide the decision-maker by providing valuable information and insight upon which to make better decisions. It is often stated that the value of marketing research lies in its contribution to reducing the risks of making bad marketing decisions. There are considerable risks involved in making decisions without the information that can be provided by marketing research. Many studies have found that the main reason for new product failure is the lack of adequate marketing research (Cooper, 1987). Consequently, the use of marketing research focused on assisting new product managers better understand the potential markets for their new products and how to better market those products has grown substantially during the past 20 to 30 years. While survey research plays the major role in providing the relevant information, qualitative research, competitive intelligence and research based on secondary information also contribute significantly to improving the likelihood of these new products to succeed. Ideally, research inputs should assist firms at all levels in the marketing planning process, from goal-setting, planning and implementation, through to evaluation of the efforts. Such a process ensures that firms have the information to get the expertise to accurately determine the success of their marketing plans. It is the responsibility of the professional marketing researcher to make sure that research information is valid, reliable, and suitable for its intended use. Strategic planning is a process designed to result in the best allocation of resources within the organization to achieve its objectives. Strategic planning is a continuing process of assessing the organization's resources, determining the current state of the
What Is Marketing Research and How Does It Work?

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EXHIBIT 1-7

Proposed Strategic Planning Process, Hamilton Central Public Library

Strategic Audit

Mission, Objectives

Alternatives

Current Planning Gap

Diagnosis

Prognosis

Future Planning Gap

Strategy Search

Strategy Selection

Program Evaluation Strategic Control Research Measurement of Public Opinions and Needs

Marketing Mix

Feedback

Program Development

Relevant Public Groups

Tactical Control Plan Approval Service Offerings, Resource Provision, & Communication

Implementation Plan

organization's affairs, diagnosing its current situation, forecasting its position in the future, developing a set of alternative strategic directions, choosing a strategy, implementing that strategy and providing for the strategic and tactical control of that plan. Once again, the main value of marketing research is to provide information on which better marketing decisions can be based. The marketing decisions, in turn, are components of the comprehensive strategy for the organization. Many firms and public organizations have strategic planning processes that require marketing decisions to be made at appropriate points and to be based on expert judgment and sound information. This need for information to support strategic planning is a key motivator for marketing research activity. One of the best ways of appreciating the breadth of information that marketing research can provide to an organization is to follow the strategic planning process through its many phases. By asking "How do you know that?" and "What information do you need in order to make that decision?", many marketing research tasks can be identified that would enhance the strategic plan. As an example of the variety of marketing research projects which could be used to provide input to an organization's strategic plan the strategic planning path shown in Exhibit 1-7 was proposed for the Hamilton Central Public Library. This was part of a study to assess the needs of those living within the City of Hamilton for library resources
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and services. The strategic planning process is a flow that cycles through the assessment, strategy development, implementation and control phases. Marketing research can play as valuable a role in measuring the needs and desires of the public for library resources and services as it can in private business in assessing the needs of new features for home carpet cleaning, or for microwavable frozen entrees. The current planning gap identifies the distance between where the organization thought it would be at a point in time and where that organization actually is at that time in terms of several key indicators. This might be stated in terms of the difference between the number of requests for books and the number borrowed, or in terms of sales or market share for a private company. Marketing research and research of the organization's operations should provide substantial input to this gap analysis. The organization's mission would have specified what the organization ideally intends to achieve. The objectives are more practical manifestations of what the organization strongly desires to achieve at particular points of time. The strategic market audit is an investigation of the capabilities and resources of the organization to plan strategically and to execute those plans. Once the current gap is identified, the reasons for the gap's existence ("diagnosis") and the prediction of the gap's implications for the organization ("prognosis") are studied. The future planning gap can then be estimated. This specifies that if the organization continues with its present strategy for the next year, for example, then the gap between objectives and achievement will be a certain size. Rather than changing strategy based on the current planning gap, the organization needs to project the effects of its strategy for a period of time long enough to see whether the strategy is perhaps correct but the timing was a bit too ambitious. Maybe the organization just has to wait another year and everything will be fine. Or, of course, the reverse might be true. Marketing research can be helpful at this stage to estimate the likely response of the public to current marketing strategies during the next year or so. If it is determined that a change of strategy is needed, then alternatives must be identified and assessed. The organizational and marketing strategies will foster a reformulation of the marketing actions of the firm through the development of a new or modified marketing mix. To determine new service and product directions, changes to existing services and products, revised pricing, more effective advertising and distribution that better meets the needs of the organization's public, the needs and wants of that public must be measured through marketing research. Similarly, the development of "programs" to inform and motivate the public to make better and more effective use of the organization's services and resources should be the subject of marketing research. After the strategic plan is approved, the plan for the "implementation" of the strategy is developed. Then the services and resources that the marketing research identified as needed and desired are "offered" to the public through communication and distribution. It is important at this stage that tactical control mechanisms are established to measure the effectiveness of the organization's day-to-day mechanisms in providing the resources and services. In parallel, the public's opinions and needs must be sensitively measured to identify their reactions to those resources and services and the manner in which they are provided by the new strategies. It is nearly impossible to get any strategy working exactly right without monitoring the market and organizational activities and perhaps refining the strategies as sensitively and as quickly as possible. At the end of the planning cycle is the detailed evaluation of the strategic plan in terms of objective measures on internal and external performance criteria. Naturally, marketing research is again needed to identify the reactions of the several segments of the public to the many facets of the strategic plan and its implementation.
What Is Marketing Research and How Does It Work?

A gap between what the organization knows and what it thinks it needs to know to effectively compete in the marketplace motivates the need for obtaining information based on marketing research.

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It is fairly easy to see that there are many opportunities for marketing research to contribute to the more effective provision of library resources and services as proposed in Exhibit 1-7. The strategic planning path for a private manufacturing company would be very similar to that diagrammed in Exhibit 1-7, and the opportunities for improving marketing decisions through good marketing research are at least as diverse.

MARKETING RESEARCH ASSOCIATIONS IN CANADA

The Marketing Research and Intelligence Association (MRIA-ARIM) is the official Canadian association for marketing research professionals, marketing research companies and organizations that use marketing research. MRIA was formed through the 2004 merger of three organizations, the Professional Marketing Research Society (PMRS), the Canadian Survey Research Council (CSRC) and the Canadian Association for Marketing Research Organizations (CAMRO). (See Exhibit 1-8.) Those three organizations were each established for very specific reasons and those functions are all now conducted by MRIA. Well provide just a short history of those organizations here and refer you to The History of Marketing Research in Canada by A.B. Blankenship, Chuck Chakrapani and W. Harold Poole. The Professional Marketing Research Society was established in 1960 by eight founders: Joseph Doyle, William Harold Poole, William Arnold Acton, John Field Graydon, Clyde Haldane MacDonald, Bulford Charles LeRoyer and Albert Breneman Blankenship. PMRS was founded to provide a collegial base for marketing researchers to meet other like-minded professionals. It began as and association of individuals; there were no corporate memberships. The society grew significantly and had approximately 1,600 members across Canada when it evolved to be one of the three organizations that became MRIA. The Canadian Association of Marketing Research of Marketing Research Organizations (CAMRO) was comprised of the larger full service consulting firms that supply marketing research to clients. The principle purpose of CAMRO was to maintain a code of ethics and good practice and to regularly audit member companies to ensure that these codes were being followed. CAMRO was founded in 1975 and required a high level of ethical and professional practice from its members, who were audited to maintain their memberships. CSRC, the Canadian Survey Research Council, was founded in 1992 as a joint effort by PMRS and CAMRO to develop a self-regulating mechanism in response to government pressure for enhanced privacy for individuals in Canadian society. At that time, the federal government was developing ways to respond to increasing complaints from the public about invasive telemarketing and deceptive telemarketing. Some discussion had considered a blanket federal regulatory policy that would have included survey research telephone calls to homes with all telephone calls from businesses to private homes. Of course, that broad policy could have included sanctions intended to restrict deceptive telemarketing that would have crippled marketing research. Fortunately, the formation of a self-regulating procedure administered by CSRC, along with convincing government representatives of the different role of survey research, averted the direct governmental regulation. MRIA is an organization that has an elected board of directors and a professional management staff for daily administration and support. An annual conference is held each spring and there is a monthly news magazine called Vue. There are chapters in BC, Alberta, Manitoba, Toronto, Ottawa, Montreal and the Atlantic provinces. The MRIA Institute of Professional Development offers 32 practitioner courses each year, some in-class, some electronically and some both. Twelve of those courses lead to the designation of Certified Marketing Research Professional with the others being for professional development.
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EXHIBIT 1-8

Marketing Research and Intelligence Association

EXHIBIT 1-9

Marketing Research and Intelligence Association

MRIA develops and maintains continuing relationships between the marketing research industry and important constituencies. (See Exhibit 1-10.) The MRIA is responsible for public relations for marketing research professionals in Canada and the MRIA retains a government relations consultant and monitors the media to identify issues concerning marketing research that need to be addressed and provides news releases and other forms for communicating the position of the marketing research industry on topics that are important to the public.
What Is Marketing Research and How Does It Work?

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EXHIBIT 1-10

MRIA Activities

MRIA retains a private lobby agency that scrutinizes government proceedings for issues that impact marketing research, lobbies the government on behalf of the marketing research industry and maintains a government relations function. An issue that arose in 2000 was an initiative of CanCorr (the arm of Corrections Canada that attempts to rehabilitate prison convicts through work in companies established and maintained by Cancorr) to develop call centres to conduct marketing research. Since the federal government had done so much work during the several years preceding this initiative to enhance Canadians rights to privacy, many in the marketing research industry found it difficult to understand and to accept this incongruence between policy and practice. CSRC (now MRIA) took several steps to highlight to the government the potentially serious problems posed to the right to privacy of Canadians by having convicts call the public to conduct marketing research. MRIA has been represented on the Competition Bureaus Deceptive Telemarketing Forum. This organization was established by Industry Canada to curtail deceptive direct marketing practices that prey on individuals.
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MARKETING RESEARCH EDUCATION IN CANADA

Most colleges and universities in Canada that have business programs provide at least one course in marketing research. However, few of these programs include more than one or two courses. A notable exception is the Research Analyst Programme (RAP) at Georgian College. This post-diploma programme accepts students who have already a post-secondary educational program and desire to obtain concentrated extensive training in marketing research. The RAP program is an 11-month educational experience that involves a combination of classroom learning, applied learning and a three month internship. An important source of education for practicing marketing researchers is the MRIA Institute for Professional Development. While MRIA/PMRS has provided courses for more than 25 years, the PMRS School of Marketing Research was formally founded in 1997 and was renamed the MRIA Institute for Professional Development after the merger in 2001. Certification requirements were specified in 2001 and implemented in 2002. The first person passed the unified final examination in 2002 and received the MRIA designation of Certified Marketing Research Professional. MRIA offers 32 courses in the School. These include the following:
1. 101-Introduction to Marketing Research; 2. 102-Ethical Issues and Privacy in Marketing Research; 3. 201-Marketing Research Design: An Applied Course; 4. 202-Questionnaire Design; 5. 203-Marketing Research Statistics & Data Analysis; 6. 204-Qualitative Marketing Research; 7. 301-Competitive Intelligence, Competitor Benchmarking and Mystery Shopping; 8. 302-Market Intelligence; 9. 303-Marketing Management for Researchers; 10. 401-Online Research: Best Practices and Innovations; 11. 402-Advanced Analysis Techniques; 12. 403-Advanced Qualitative Marketing Research techniques; 13. Applications of Structural Equation Modeling in Marketing Research; 14. Bidding for Government of Canada Work How to write successful proposals 15. CMRE Prep Workshop; 16. Communicating Research Results with High Impact Graphs; 17. Conjoint Analysis: Design, Analysis and Reporting that Leads to Better Marketing Strategy; 18. Data Mining Techniques; 19. Fundamentals of Marketing Research: A Survey Course for Non-researchers; 20. How to Measure Marketing Communications: a Primer on Marketing Research for Non Research Professionals; 21. Market Segmentation Research; 22. Measuring Brand Equity; 23. Measuring Customer Satisfaction, Loyalty and Retention; 24. La mesure de la satisfaction, de la valeur et de la loyaute; 25. Measuring Customer Satisfaction: Advanced Analytical Techniques; 26. Moderator Training: Basic; 27. Moderator Training Toolbox; 28. ROI on Marketing and Research; 29. Selling Marketing Research: Sharpen your business development skills; 30. Semiotics, Introduction: How Symbols, Packaging, & Advertising Communicate; 31. SPSS: Analyzing Survey Data An Introductory Workshop; and 32. SPSS: Analyzing Survey Data An Advanced Workshop.

Courses 1 through 12 comprise the core courses and the remainders are advanced and specialized courses for professional development. The instructors are mainly practitioners with a few academics who have substantial consulting experience. All of the courses are offered in Toronto with several taught in Vancouver, Calgary, Winnipeg, Ottawa, Montreal and Halifax. Beginning in 2010/2011, most or all of the core courses will be available online as well as in-class.
What Is Marketing Research and How Does It Work?

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SUMMARY
1. Marketing research is the systematic gathering, recording and analyzing of data about problems relating to marketing of goods and services. In practice, market researchers are called upon to solve problems that pertain to other areas such as political polling, social trends, policy research, etc.
2. The primary purpose of marketing research is to increase the likelihood of making good marketing decisions. Marketing research provides information to assist with the formulation and execution of marketing decisions, planning, implementation and control. Market research pertains to describing the physical markets for goods and services. Marketing research is also used to create and support advertising claims and advocacy advertising. The bulk of marketing research is carried out by marketing research firms, independent research consultants and large organizations which have their own research facilities. Marketing research is a component of the management information system. Because research can be a vital component of the management information system, the researcher should make sure that the research data are valid, reliable, and error-free. The areas in which marketing research has been used is tremendously diverse, from religious institutions to consumer packaged goods. It is almost impossible to find an industry sector with marketing research has not been used. 9. Marketing research and marketing researchers are represented by the Marketing Research and Intelligence Association, which was founded as a 2004 merger of three professional associations, the Professional Marketing Research Society, the Canadian Survey Research Council and the Canadian Association of Marketing Research Organizations.

3.

10. A key challenge of marketing research is to understand the ways in which consumers make their decisions to buy goods and services. As such, marketing research involves a great deal of applied psychology, sociology and political science. 11. One way of dissecting marketing research is by the nature of the research, i.e., whether it involves quantitative surveys or qualitative interviewing. 12. Another division of marketing research pertains to the direct relevance and currency of the research, i.e., whether it is primary research or secondary research. 13. An important part of marketing research seeks to understand usage of the media by consumers. 14. The courts are using marketing research increasingly in cases involving alleged violation of trademarks and in other areas to resolve disputes involving ways in which the public might react to some changes in product specifications and advertising. 15. Consultants in marketing research firms usually execute marketing research. Only rarely do manufacturing and marketing firms have the resources to conduct their own marketing research without contracting substantial components to outside vendors (i.e., marketing research firms).

4. 5. 6.

7.

8.

Key Terms
(CAMRO), p. 6 (CSRC), p. 22 custom research, p. 17 distribution channel, p. 6 exchange, p. 6 gap, p. 21

industry associations, p. 12 marketing, p. 12 marketing research, p. 15 market research, p. 4 Marketing Research and Intelligence Association, p. 5 omnibus services, p. 17 primary research, p. 9

professional marketing researcher, p. 13 scope of marketing research, p. 10 secondary research, p. 6 standardized studies, p. 17 subcontract, p. 8 syndicated studies, p. 17

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Review Questions
1. Compare the BC Ferries profile to public transportation in your area with which you are familiar. What might be some transportation issues on which management could use consumer input? How might the transportation organization go about obtaining that consumer input? Compare and contrast the audiences represented by each of the three marketing research associations in Canada. How are these associations similar and how are they different? How might ethics and privacy be handled by each organization? How might marketing research be used by your educational institution to better understand the needs of students? How could this information be used for decision making in your institution? What might be the benefits for the institution and for its consumers? Discuss the difference between marketing research and market research. Present three situations in which market research would likely be needed but marketing research might not be necessary. Identify three marketing research firms by searching the internet. Compare these firms on location, services, standardized studies offered, syndicated studies offered, omnibus studies offered, and the profile of their customer base over business sectors. How might strategic planning identify organizational needs for market and marketing information that can be obtained through marketing research? Develop an example of your own similar to the text example in which the Thompsons buy Makita tools from Home Depot. This might be based on a purchase that you, a family member, or an acquaintance has made recently. Sketch out the purchase process using Exhibit 1.1 as a template. 8.Now, return to the diagram that you sketched for Question 7 and, for each question mark in Exhibit 1-1, write at least one key marketing research question that needs to be answered for the company you identified in Question 7 to make better marketing decisions. 9.Exhibit 1-5 maps out several types of marketing research and marketing research practitioners. Use the internet to identify three firms that conduct qualitative marketing research. Consider using Google or some other search engine and accessing the website of the Marketing Research and Intelligence Association (www.mria-arim.ca). 10. The MRIA Institute for Professional Development offers a broad range of courses in Canada for marketing research practitioners. Use the MRIA website (www.mria-arim.com) to investigate the content of 10 of those courses. Use this background to help understand which of those topics your current marketing research course will cover.

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MINI CASE

The Burlington Sound of Music Festival: Conducting Marketing Research for Community Events
The Burlington Sound of Music Festival has been held on the lakeshore in Burlington, Ontario since 1979. It is the largest community event in Burlington and is presented free to residents and visitors. The Festival has drawn approximately 200 000 people in recent years to enjoy the music, carnival, food, and other entertainment. Attendance doubled from 100 000 to 200 000 between 1997 and 2001. In February 2003, Festivals and Events Ontario voted the Burlington Sound of Music Festival as one of the Top 50 Festivals in Ontario for the third year in a row. Burlington, Ontario is located just east of Hamilton, just west of Oakville, and about 50 km west of Toronto. This city of approximately 155 000 residents reaches from the Lake Ontario shore in the south to the Niagara Escarpment in the north. The original intention of the Festival was to provide an opportunity for local musical performers and other visiting artists to perform for the public. The Festival has grown in size and stature to include over 50 artists and 20 Marching Bands, which are local, regional, provincial, and international. Both professional and nonprofessional performers appear, including youth and emerging artists. A broad spectrum of music is presented including Jazz, Folk, Rock, Pop, Blues, Big Band, Childrens Acts, and more on five stages along the Burlington waterfront and throughout Burlington downtown. Special features include the Grande Festival Parade with over 20 marching bands, a childrens area, a carnival, and a variety of food and beverage areas all contributing to an enjoyable experience for all ages. The Festival is looking forward to its 25th Anniversary in 2004. The Festival was incorporated on February 27, 1997 as a nonprofit organization. Currently, a volunteer Board of Directors comprised of 15 committed citizens from the community run the Festival. The Board members chair the various committees on which 75 volunteers serve and work all year round. Over 400 volunteers support the festival during the weekend of the event. In 1998, the Festival hired its first staff person, a Sponsorship Director, who was responsible for developing the Festivals corporate sponsorship. As a free event, the Festival is dependent on sponsorship, fundraising, vendor income and revenues during the Festival weekend. The first Festival in 1980 had a total budget of $16 900. The actual budget in 2002 was $320 000 in cash, over $75 000 in in-kind products and services, and over $100 000 in in-kind media. Local and corporate support has grown from $11 900 in 1980 to approximately $195 000 in cash support in 2003. In September of 2002, a new Sponsorship Director was hired with the skills to expand the corporate funding base. With the support of the Ontario Trillium Foundation, the festival hired a Festival Coordinator in 2001. This position quickly developed into Executive Director to support the Board and the Committees and to act as a liaison to the City and the Festivals various partners. Strategic planning activities of the Board of Directors identified the following strengths and weaknesses.

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Strengths

Recognized as the premier event in the City of Burlington. Beautiful venueBurlingtons waterfront. Longevitywell established, 2004 will be the 25th anniversary. Reputation for successhigh-calibre entertainers interested in performing at the Festival. High brand recognition locally. Festival brand recognition is being strengthened on a regional level. SustainabilityRainy Day Fund. A rainout has a huge impact on revenues, especially since the Festival is free to the public. Therefore, a reserve has been established to ensure future sustainability. There is a strong sponsorship base, including cash and in-kind products and services. This includes local media in-kind support. Organization StructureThe Board members have varied backgrounds and expertise in areas needed to run a major annual community event (e.g., finance, legal, sponsorship, etc). Affiliation with the City of Burlington provides support for the event. Strong Volunteer BaseOver 75 volunteers work on the event throughout the year serving on various committees. Over 400 volunteers work the weekend of the Festival. Community PartnershipsRelationships have been developed over the years with community organizations and service groups that provide support and services to the Festival.

Weaknesses

The Festival is completely dependent on grants, sponsorship, and revenues from fundraising, site use, etc. for its operating budget because the Festival is free. There is a very limited cash budget in communications. Outdoor FestivalSomewhat weather dependent. Growing demands on space, parking, and overall accessibility. These growth issues are being addressed through strategic planning. Cost of entertainment has increased dramatically (almost doubled in the last 5 years). There is constant pressure to keep the entertainment current and appealing while costs rise. Cost of security, logistics, and insurance are rising exponentially. The additional costs in providing a safe and clean environment for the event have risen as well. ContinuityIt is a challenge to maintain the Board because it is faced with regular changeover of Board members. An Executive Director has been hired to address this issue.

Funding for the Festival comes mainly from proceeds of the Festival directly and from support from grants and sponsorship donations. While the Festival is free, similar events in other communities charge general admission fees to their grounds. The Board of Directors of the Festival has discussed charging a general admission fee for several years but has decided each time to stay with a free event. The main concerns pertain to the Boards desire to have an open festival available to everyone and an uncertainty regarding the level of attendance if an admission charge were imposed.

What Is Marketing Research and How Does It Work?

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Case Question
In Exhibit 1-1, the basic definition of marketing was rendered in a diagram. Develop a diagram similar to Exhibit 1.5 for the Burlington Sound of Music Festival. Identify the provider, the customers, and any business partners. Replace the question marks with appropriate questions and partial or complete answers. This may be done in list form if the actual diagram becomes too full. How could marketing research be used to answer some of these questions?

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