MARKET RESEARCH The Basics

TWO KINDS OF MARKET RESEARCH Primary –Surveys, polling –Focus groups –Observation –Trend towards “relationship marketing” Air Miles,etc. Secondary –Existing reports and data

USES OF MARKET RESEARCH Segmenting market –Demo, psycho, geo Test new and existing products Pre-test campaigns Set baselines (e.g. 30% awareness) Post-test to see if objectives (e.g. 60%)

Paradox of Market Research It is an essential part of advertising process, yet the process is terribly flawed!! For example, people can lie on surveys, or fall into “group think” in focus groups Even more importantly, people often do not understand what motivates them; perception and consciousness are very slippery phenomena

MEDIA STRATEGY The Basics

Media Strategy We’ve learned about: –Types of advertising –Target market segmentation, and needs –Positioning –Appeals and creative Strategies –Brands With this info, you can start to create good ads, but which media will you use? Why?

Media Strategy How do you know –which media to use? –How often will you use it? –When will you use it? –Which media your target market watches –Is there a better/cheaper way to do same thing? Each medium has strengths and weaknesses

Media Strategy Key idea: reach target audience: –in right way (appropriate message- fits creative strategy) –In the appropriate media (maximum overlap with target audience) – it’s never a perfect fit –At the right time (daily, weekly and seasonal) –A sufficient number of times to reinforce message –At a cost you can afford (very important)

Media Strategy Strengths and weaknesses: –Newspapers –Television –Radio –Direct Response (or Direct Marketing) –Magazine

Media Strategy CPM is the standard measure –(cannot be compared across media, however) Reach Frequency TV ratings vs. TV Share

Media Strategy Some sample prices: –2 1/2 Men (National, US) $300,000 – $400,000 for 30 Sec –Superbowl $2,5000,000 for 30 Sec –National US Magazine (TIME) $90,000 Full Page –Local TV (Montreal) Prime: $4, Sec – Off-Prime $ Sec –Local radio (CHOM) 30 seconds - $175 –CTV National $8,000 – $40, Sec –Web (Canada) Weather Network Site $1,000/month