Research in Advertising Facts are the basis of sound planning, and the facts for advertising decision making are obtained through research.

Research Overview Only after the buyers and sellers became separated geographically were there a desire and need for market information. As business developed, the gap continued to widen, with even more intermediaries separating sellers and buyers. The information provided by market research became an important tool that enables the sellers to satisfy the needs and wants of the consumers.

Market research and Advertising Research The American Marketing Association defines market research as “the systematic gathering, recording, and analysing of data about problems relating to the marketing of goods and services.” Such research is carried on “to guide managers in their analysis, planning, implementation, and control of programs to satisfy customer and organisation goals.” Most large business firms maintain a market research department

The research department assists the advertising manager through the gathering of market data and helps in sifting through and classifying the material, which is then fed to the advertising agency to use when discharging its functions of planning, creating, and placing advertising.

Distinction between market research and advertising research Market research describes and measures a particular market. Advertising research evaluates the impact of advertising messages on that market. Advertising research, as is true for all forms of research, is based upon certain fundamental principles.

Research Fundamentals Through research, an investigator attempts to arrive at precise answers to precise questions. “Precise” is a relative term, and in areas involving human behaviour the variables are more difficult to identify and to quantify than in the case of the physical and the biological sciences. Research is used to reduce the risk to the point where one of several alternative courses of action can be chosen with confidence.

Decisions based on market research are made, not with certainty but with probability Like many branches of science, market research attempts to quantify the unknown so that educated guesses can be made. How good any piece of research actually is depends primarily on two criteria: (1)is the researcher reliable – is his viewpoint objective, rational and free from bias? (2) does the researcher employ the basic scientific procedures, such as the historical, the experimental, or analytical methods and the generally accepted techniques developed in such relevant fields as statistics, psychology, and sociology.

Five basic steps in Research Procedure Defining the problem Collecting secondary or available data Collecting primary or original data Compiling and ordering data Interpreting the findings

defining the problem The problems of advertising research are the problems of advertising itself, but searching for an answer to such a general question as “why is brand X is outselling our brand?” involves not one but several research projects. Part of the answer may come from market research conducted at the retail level, and part of the answer may also be found in studies of the effectiveness of advertising media used.

The broad general questions posed as research problems should be rephrased as specific, workable hypotheses. Good answers are the replies to good questions, and if the problem is not clearly and specifically defined, research is off to a bad start. One respected market researcher holds that defining problems can be more important than finding solutions:

“if we would represent ourselves more as problem definers than as problem-solvers, the chances are we would solve more problems because if a researcher is only an order-taker and a client an order giver, the research may well focus on the wrong problems”.

Collecting Secondary Data Gathering all information pertinent to the problem that is already available either from the internal records of the advertiser or from external sources is the second step in research procedure. Questions that confront a specific advertiser for the first time may have already been answered in published reports available from departments of central and state government, advertising media, ad agencies, universities, foundations, chambers of commerce, or trade associations.

Informal investigation –discussions with executives and salespeople for the company and talks with wholesalers and retailers – is useful in evaluating the importance of hypotheses developed for the preparation of the campaign. Examination of available data and of the results of informal interviews with people who have some knowledge of the product and its market is sometimes referred to as the SITUATION ANALYSIS

This step is concurrent with the first step – defining the problem. It helps redefine the problem, develops possible hypotheses, and provides a background for the planning of the next step – the collection of the primary or original data. The usefulness of secondary data is definitely limited. The first reason is possible bias.

Both advertising agencies and advertising media conduct research, and both have an obvious interest in how much is invested in advertising and where it is invested. The second factor is the possibility that the data are obsolete. Since markets are dynamic, a research report may be completely objective and still not reflect conditions applicable to today’s problem.

Collecting Primary Data If existing research does not supply information adequately, original research must be conducted. There are 3 standard methods of collecting primary data: Direct observation Experimentation Survey or questionnaire method

Compiling and Ordering Data Editing and careful examination of the reports serves two important purposes First, it eliminates errors by either correcting or rejecting inaccurate or doubtful replies or records. Secondly, editing prepares field reports or questionnaires for tabulation by standardizing responses reported in a variety of ways. Compiling or tabulating the results involves counting and summarizing the statistical conclusions from all the reports not rejected.

Interpreting the Findings The statistical findings are merely evidence to be evaluated and interpreted in terms of alternative courses of action if the research is to aid the decision-making process. The interpretation is deductive logic – the drawing of sound inferences from statistical generalizations. Straight thinking is necessary if the recommendations are to be both logical and practical

To be logical, must be adequately supported by statistical data To be practical, logical recommendation must be modified to suit a particular advertiser in a specific situation A logical recommendation might call for the use of full colour ROP newspaper space, in all the markets, but if the advertiser does not have sufficient funds, a practical recommendation might modify this to include only the dozen most important cities.

Additional considerations Market research specialists often add two other steps to the five just discussed: (6) presenting the results (7) applying the conclusions or follow up