Strategic Research Advertising Principles and Practices

6-2

Questions We’ll Answer What are the types of strategic research and how are they used? What are the most common research methods used in advertising? What are the key challenges facing advertising research? ? 6-3

Got Milk? Reading for Homework. What was the key consumer insight? Due next Tuesday, no need to read before the test. 6-4

Holiday Inn Express Stays Smart \ What kind of research results led to an upgrade of all Holiday Inn Express bathrooms?

Holiday Inn Express 6-6

Types of Research Secondary Research – Background research using available published information – Sources include government organizations, trade associations, secondary research suppliers, secondary information on the Internetgovernment organizations Primary Research – Information collected for the first time from original sources, such as primary research suppliers – A.C. Neilsen, Simmons Market Research Bureau (SMRB), Mediamark Research Inc. (MRI). A.C. Neilsen – Proprietary vs. Syndicated 6-7 Hyperlink to

Categories of Research Tools Quantitative Research – Delivers numerical data such as numbers of users and purchases, their attitudes and knowledge, their exposure to ads, and other market-related information – Use large sample sizes (100–1,000) and random sampling Qualitative Research – Explores underlying reasons for consumer behavior – Tools include observation, ethnographic studies, in- depth interviews, and case studies – Used early in the process – Generating insights 6-8

Categories of Research Tools Experimental Research – Scientifically tests hypotheses by comparing different message treatments and how people respond to them. – Reactions may be electronically recorded using MRI, perceptual analyzer, or EEG machines, or eye-scan tracking devices to measure emotional responses. 6-9

Who am I? 6-10

Ways of Contact-Quant Survey Research – Quantitative method; ask many people the same questions – Researches select a random sample to represent the entire group (population) – Methods include telephone, door to door, internet, mail 6-11

Sample MRI Consumer Media Report 6-12

+ 3-*** MRI + How to use Mediamark

+ Accessing MRI +

+

+ Register for Free

+

+ Product, Candy

+ Spreadsheet

+ What do the numbers mean? Index-% more likely than the general population to chew Bazooka. Base Counts (Total ‘000) - In the Fall 2009 study there were 2,225,887 (000) total people surveyed. Proj ‘000- projected to the full population, 4,505,000 have chewed Bazooka in the last 6 months. Pct Across- out of the total population surveyed, 2% chewed Bazooka in the last months. Pct Down- Out of all the people who chewed Bazooka, 19% graduated college.

Homework Login to MRI+ Tell me: How are Red Bull and Diet Coke different in terms of purchaser’s sex, income, and geography? to Alex 6-21

Ways of Contact In-depth Interviews – A qualitative method using one-on-one interviews asking open-ended questions – Flexible and unstructured Focus Groups – A qualitative method in which a small group of users or potential gather around a table (or online) to discuss a topic (product, brand, or ad) – Directed by a moderator, 6-22

Dodge Focus Group 6-23

Ways of Contact Observation Research – A qualitative method using video, audio, and cameras to record consumers’ behavior where they live, work, shop and play. – Closer and more personal than quantitative research 6-24 Principle: Direct observation and ethnographic research reveal what people actually do, rather than what they say they do, but they also lack the ability to explain why these people do what they do.

Ways of Contact Ethnographic Research – A qualitative method in which the researcher becomes involved in the lives and culture of a group being studied. – Families may videotape their lives or a researcher may go to a rally. Diaries – Consumer are asked to record activities, such as media usage. – Provides a more realistic, normal representation than surveys or interviews. 6-25

Observation Case Study Activision “Aggressors” 6-26

Uses of Research: Consumer Insights Researchers try to find out what motivates people to buy a product or become involved with a brand. The goal is to find a key consumer insight that members of the target audience will respond to. 6-27

Design Personas Tina Ferraro-Smith (SAP): Telesales agent with personal goals, such as putting clients first and going home in a decent mood. Stanley (JP Morgan): Savvy investor who won’t be satisfies by simple account summary and wants advanced portfolio details. 6-28

Exam #1 Chs 1-6 and Class Notes Format: – 4 short answer (12pts) – 18 MC (54 pts) – 15 TF (15 pts) – 4 essay (18 pts) – Reflection (1pt) – Extra Credit (1pt) 6-29

Exam #1 Tips 75% what we covered in class or homework. 25% important stuff from the book. Read the case studies in the front and the hands-on cases at the end (matter of practice boxes, etc.) Read the essay questions carefully. Beware of the word “specifically” 6-30

Some Important Things Definitions Models (How advertising works; Psychographic and behavioral) Branding and differentiation Demographics/psychographics; Types of research 6-31

Not important Full History of Advertising Details of how advertising is regulated (except chart in class). 6-32

Uses of Research: Evaluation Research Pretesting is research on a finished ad before it runs in the media. Evaluative research (also called copy testing) is done during and after a campaign. – Aided recognition (or recall) – Unaided recognition (or recall) 6-33