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WRITTEN REPORT IN PRINCIPLES IN MARKETING

HISTORICAL DEVELOPMENT OF MARKETING RESEARCH

Submitted By: Mary Anghel E. Cabrera BSBA MM I-1D

Submitted To: Prof. Merla G. Villanueva

Marketing Research in the United States:


Historical records reveal that there is no written document on the beginning of marketing research as an organized business activity. During the Middle Ages, the merchant families of Fugger and Rothschild prospered in part because their organizations enabled them to get information before their competitors did. In 1879, N.W. Ayer and Son accidentally conducted a market survey. They conducted a crude but formal market survey, to measure markets for agricultural machineries, manufactured by Nicholas-Spepard Company. The Curits Publishing Company is generally conceived to have formed the first formal business research department with the appointment of Charles Parlin as manager of the Commercial Research Division of the Advertising Department in 1911. In June 1915, the United States Rubber Company appointed Dr. Paul H. Nystorm as head of the Department of Commercial Research Program. Dr. L. D. H. Weld from Yale University was employed by Swift and Company as a general economist, in 1917. Shortly afterwards, Dr. C.S. Duncan published what was considered the first book on commercial research. This means that companies had recognized the need for more business information as basis of sound business management decisions. The idea of marketing research was developed in the late 1920s by a man named Daniel Starch. This is about the same time that advertising was introduced in the United States. At that time, copywriters would write what they thought an ad should be, publish the ad, and then hope that readers would act upon the information provided. It was during this period that questionnaires or survey instruments were designed, and problems on how to frame questions and the interviewer bias were recognized. Psychologists were then employed to study these problems to avoid biases. In 1929, the Federal Government of the United States conducted the first census of distribution, and series of important studies were also conducted by the Department of Commerce. The practice of research in the field of business was not widely used until 1930s. Serious attention was given to sampling problems in the early part of the 1930s and basic research methods began to emerge in the late 1930s. There were business firms in Chicago that specialized in business research in 1932. In 1937, the American Business Association is established, creating a national professional organization; and the publication of the first two books which are useful in business research. Research techniques where improved during this period not for business but because of its usefulness in

extensive wartime programs of the government (World War II). After World War II, businessmen began switching from the selling orientation to the modern concept of business. The real growth of marketing research occurred when business firms found out that they could no longer sell all that they produce. And so, many marketing research firms were established and the business boomed. By 1948, over two hundred marketing research firms had been established in the United States. The A.C. Nielsen Company, reputedly the largest marketing research business firm in the world, started its activities in 1934. Since then, its sales volume has increased every year. With these data, the field of marketing research could be considered a growth industry. Sources: Principles of Marketing by Samuel Mejia Salvador and Ellinor Fua-Geronimo, 2009