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Discussion 8
Informing what we think and do.
February 13, 2014
ADVERTISING PRACTICE
IN A DIVERSE SOCIETY
Name tags out
Cell phones off
Exam #1
Got clarity?
HOUSEKEEPING
Looking and
learning
Februar y
13 , 2014
DISCUSSION
EIGHT
Looking and
learning
Februar y
14 , 2013
DISCUSSION
EIGHT
Advertising
Practice in a
Diverse Society
STRATEGIC RESEARCH
IS THE WINDOW TO THE
MARKET –
THE PLACE AND THE
PEOPLE
What strategic research is and why it’s important
The key research types and their characteristics
The overwhelming significance of insights
Research tools for our team project
TODAY WE’LL DISCUSS
We learn.
We
i l luminate.
We
validate or
support.
We plan.
We decide.
RESEARCH AS A TOOL:
HOW DOES IT HELP US?
Generally, wha
t does
research
study?
MARKETS/PRODUCTS
CONSUMERS/TARGETS
ADVERTISING/MEDIA
Market research:
Compiles information about the product, product category, competitors and other details of the marketing environment
HOW WE USE RESEARCH
IN ADVERTISING
Consumer
research:
Used to
identify
people who
are in the
market for
the product
and their
behaviors.
HOW WE USE RESEARCH
IN ADVERTISING
Consumer
research:
Used to
identify
people who
are in the
market for
the product
and their
behaviors.
HOW WE USE RESEARCH
IN ADVERTISING
Consumer
research:
Used to
identify
people who
are in the
market for
the product
and their
behaviors.
HOW WE USE RESEARCH
IN ADVERTISING
Advertising
research:
Focuses on
all the
elements of
advertising:
message, m
edia, evaluat
ion and
competition.
HOW WE USE RESEARCH
IN ADVERTISING
Strategic
research:
Uncovers
insights and
critical
information
that
becomes the
basis for
strategic
planning
decisions.
HOW WE USE RESEARCH
IN ADVERTISING
How did research inform Cheetos?
What sort of research was it?
What did Cheetos and the agency learn?
What decisions did the research support?
What were the insights?
OVERALL, WHAT ARE
THE CATEGORIES OF
RESEARCH AND THE
TOOLS WE USE TO
INFORM OUR
DECISIONS?
Categories of
research:
Secondary
Primary
Key research
types or tools:
Quantitative
Qualitative
Experimental
and projective
Background research using available published sources.
Sources include government organizations, trade
associations, secondary research suppliers and secondary
information on the Internet.
SECONDARY RESEARCH
Information collected for the first time from original sources.
Sources include A.C. Neilson, Simmons Market Research Bureau
(SMRB) and Mediamark Research Inc. (MRI). There are many
firms that conduct primary research.
PRIMARY RESEARCH
Delivers numerical data such as
Numbers of users and purchases
Their attitudes and knowledge
Their exposure to ads
Other market-related information
Statistical validity
Uses large sample sizes and random sampling to conduct
surveys and studies that track, count or measure
things, opinions for example.
QUANTITATIVE RESEARCH
Explores underlying reasons for consumer behavior
Tools include:
Observation
Ethnograhic studies
In-depth interviews
Case studies
Probes:
What features do customers want
What are the motivations that lead to product purchase
What do customers think about advertising or ??????
How do consumers relate to a brand; what are emotional links
QUALITATIVE RESEARCH
Roswell Park Cancer Hospital:
What messages or benefits resonate most?
EXAMPLE:
CONCEPT AND
MESSAGE TESTING
Create 30 benefit messages.
Focus on presenting each feature along with a strong
benefit that will cause a person to think, “That’s the
way I feel.”
Using a focus group format, introduce the various
benefit messages to consumers and ask them what
they think of them.
The group needs to reach consensus on each
statement – is it a “keeper,” a “so-so” or a “reject.”
PROCESS
Once the “keepers” are identified the next step is to
have the group rank them in order of importance or
significance or relevance.
Once completed we will be able to identify the most
important features and benefits in the minds of the
target audience. The final step is to then “ladder”
these up to the potential emotional rewards.
– The most important features and benefits can then
become the key support points and the emotional
reward could become the basis for positioning.
PROCESS
Roswell Park Cancer Hospital:
What messages or benefits resonate most?
PROCESS
PROCESS
OUTCOME
Scientifically tests hypotheses by comparing dif ferent message
treatments and how people respond.
Used to test advertising appeals and
executions in:
Product features
Design
Price
Various creative ideas
Reactions may be electronically recorded using MRI and EEG
equipment or eye-scan tracking to measure emotional response.
EXPERIMENTAL RESEARCH
Concept testing, a la Roswell Park
Copy/variation testing, e.g. A vs B
Post campaign effects
In-campaign performance
EVALUATION RESEARCH
What do SMRB and MRI stand for?
SMRB (Simmons Market Research Bureau)
MRI (Mediamark Research Inc.)
One of the most widely used secondary data sources regarding
various consumer products
Samples: Survey with over 25,000 households in the U.S. twice
a year (spring/fall)
KEY DATABASES
MRI and SMRB provide information on the target audience’s
Demographics Age, Gender, Education, Profession
Media usage Cable TV, Magazine (Based on self -reported
readership, not circulation data)
Product and brand usage (Ex: Shampoo)
Consumption level (Heavy, medium, light users)
Form of consumption (Bottle, tube)
Type of hair (color treated, damaged, dandruff, dry, oily, normal)
Specific brand
Manufacturer
KEY DATABASES
What can we
learn from
MRI+?
Where would
you advertise
to reach
single adults
18-34?
How about
married with
child >6?
HOW WE USE RESEARCH
IN ADVERTISING
First of all, check the table title and how the base population is defined
Total ’000 (unit: thousand) the US population for each subset
Proj ’000 (unit: thousand) estimated number of subset people who do the defined behavior (e.g., own any MP3 player)
HOW TO READ MRI+ TABLES
First of all, check the table title and how the base population is defined
Total ’000 (unit: thousand) the US population for each subset
Proj ’000 (unit: thousand) estimated number of subset people who do the defined behavior (e.g., own any MP3 player)
HOW TO READ MRI+ TABLES
Percentage Across
Out of the subset
population, the
percentage of subset
people who do the
defined behavior (MP3
player ownership rate
within the subset
population)
HOW TO READ MRI+ TABLES
Percentage Down
Out of the population
who do the defined
behavior, the
percentage of subset
consumers who do the
defined behavior
HOW TO READ MRI+ TABLES
Pct Down = (6727/36734)*100 = 18.3
18.3% of adults in the US who own any MP3 Player are
between 18-24
“Index”
The percent calculated by dividing the PctAcross in a subset row by the Pct Across in the base row
A quick and easy indicator of the degree of concentration for each subset
Rule of thumb for interpreting “index”: 85 or lower low; 115 or higher high
HOW TO READ MRI+ TABLES
Index = (23.9/16.8)*100 = 142
Adults aged 18-24 are about 42% more likely to own any MP3
Player than the rest of population
What was L isa
Dolbear looking
for?
THE CRITICAL END GAME
OF RESEARCH
THE CRITICAL END GAME
OF RESEARCH
Consumer
insight
What is
consumer
insight?
INSIGHT DEFINED:
SURPRISING, UNEXPECTED, SIGNIFICANT
An example of
an insight that
was
unexpected
and impactful.
Research informs us and our work. It teaches us about our markets and our
audiences.
It adds depth and authority to our plans, supports our opinions and
plans, helps us make decisions.
The types are:
Secondary and primary
Quantitative and qualitative
Experimental
For your campaign project, key data sources include:
Search
SU Library Adver tising Resources
Mintel/IBIS
Simmons and MRI+
KEY TAKEWAYS
INSIGHTS ARE
THE MOST
IMPORTANT
PRODUCT OF
RESEARCH
Single
most
important
point!
MRI+ Team Assignment due February 20
Log into MRI+ (Don’t use Safari; if MAC use Firefox)
Click Mediamark Reporter
Click 2011 Product
See Category
Click Beverages
Reference Diet Colas: Diet Coke and Energy Drinks: Red Bull (both last
6 months) OR
Reference Sports Drinks/Thirst Quenchers: Gatorade (last 6 months)
and Ready-to-Drink Iced Cappuccino: Starbucks DoubleShot (last 6
months, principal shoppers)
BE PREPARED
MRI+ Team Assignment due February 20
Analyze: How are Red Bull and Diet Coke, or Starbucks DoubleShot and Gatorade dif ferent in terms of purchaser’s sex, HH income and race? Choose only one pair.
Have a team spokesperson Email to Nesara by EOD 2/20
Counts toward class par t icipation; no grading – practice and coaching
Suggestion: Two team members take one brand. Each runs the analysis independently and compares results to yield one analysis of one brand. The other two team members take the other brand…same process. Al l team members compare results and col laborate on both brands to identify the dif ferences.
Determine which pair you wil l submit and do so.
Option for 2 points Extra Credit per team member:
Submit analyses for both pairs PLUS develop a point of view on what the data suggests to you about these beverages; no more than one page total
BE PREPARED
MRI+ Team Assignment due February 20 by end of day
Read Chapter 7 in the text, plus pp. 258 - 260
Read headlines www.adage.com
BE PREPARED