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

MARKET RESEARCH

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

CONSUMER RESEARCH

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

QUESTIONS

SO FAR?

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

MRI+

practice