The Process of Advertising Research

Objectives To review the planning process To understand the role of research in the context of advertising planning

Communications Planning: A Systematic Process Each step builds the foundation for future decisions and may provide feedback for decisions made in earlier steps Research supports risk-avoidance and decision confidence

The Business Problem Most product-related research initiatives begin with a problem in mind. These business “problems” or “challenges” relate to marketer’s concerns about some element of product marketing Product Price Place Promotions

Research Process for Addressing Communications Problems The fact that a business problem exists opens an opportunity for research solutions 3 Stages of the Process Preliminary Discussions & Agreement Planning & Data Collection Application

Preliminary Discussions & Agreements Happens between the marketer and that organization responsible for implementing research Marketer gives direction, input about the issues affecting the product/brand Conversation can also be initiated by the advertising agency No research is actually conducted until agreement about direction is reached

Preliminary Discussion & Agreements Stage Stage concludes with an understanding between the marketer and the research agent Agreement about what the research challenge is And where efforts, budgets will be allocated

3 Categories of Research-Related Problems Selection of Alternatives Problems & Opportunities Knowledge & Understanding

Selection of Alternatives/Evaluation of Alternative Actions Problems A ‘this or that’ category of problem The problem defines a need for research to help select the best alternative Ex: Which product package will be most effective – Package A or Package B? Ex. Which ad spokesperson will have most credibility among the target market?

Problems & Opportunities Problems Category of problem that is focused on gaining a better understanding about past business performance outcomes… sales, profits, volume, share, distribution, etc. …or about future business actions

Problems & Opportunities Problem Issues This category defines a need for research to help bring clarity to what already happened or to what may happen… Ex: Do opportunities exist to extend Nintendo’s base of users targeted based on gender? Ex: Sales of male cosmetics experienced seasonal declines in the last year. What was the reason for this?

Knowledge & Understanding Problems Category of problem dedicated to building information for the sake of becoming more competitive or more sophisticated about product marketing Issues related to this categories can be specific to the product, the consumer, or the general societal trends

Knowledge & Understanding Problem Issues Ex.: How would our target react to our brand of potato chips if we repositioned it as a “healthy snacking alternative?” Ex. How are online social networks changing the way teens become aware of our brand?

Research Problem Statement A research problem statement comes as a result of careful discussions about what the issue is affecting the product/brand (problem definition) why research is needed (justification) what research should find (informational needs)

Planning & Data Collection Identify the type of research Access current knowledge through secondary research If necessary, conduct primary research Exploratory research (Qualitative) Descriptive research (Quantitative) Experimental research (“Cause and Effect”) Secondary research data gathered for research other than the present one. Primary research- Collection of original, often proprietary data specifically collected for the identified problem. Exploratory research is used when we do not have enough information to clearly identify the problem and we need “qualitative” information rather than descriptive statistics. Descriptive research is used when we have a clear understanding of the research question(s) and we want descriptive statistics (averages and percentages) which tell us how many and to what degree persons in our target population hold certain beliefs or behaviors. Generalizable to a larger population. Experimental research may be necessary if you want the specifics about how a campaign will work in a controlled situation. Consider test market situations.

Planning & Data Collection Research Method Design the research instrumentation Sampling Probability vs. Non-probability sample Research Method: -Telephone survey, mail survey, electronic survey - Face to face interview, etc.

Planning & Data Collection Budget and Timing Get research proposal approved prior to research implementation Collect Data Program Evaluation and Review Technique (PERT) planning schedule

Application Analyze data Interpret data and make recommendation(s) Post-presentation decision making by management

Advertising Planning With An Account Planner’s Mindset Advertising planners represent a hybrid between the account manager and the research analyst

Account Management Account management supervises the work flow & budget allocations on the advertising account They are the brand business experts who are grounded in brand performance and brand outputs (sales, profits, etc.) Their counterparts on the company side is the brand manager

Research Analysts Agency researchers are experts in planning, implementing, and reporting research efforts They are masters at asking the right questions so they generate insights that will answer brand questions They are more data-centered than brand-centered.

The Account Planner Account Planners represent the voice of the consumer They are less business-driven than people-curious They see their jobs as being social anthropologists and “insight-miners”