The Nature and Process of Advertising Research

The lecture is designed to help students understand:  • The areas in which research helps advertisers make better decisions.  The characteristics and contributions of companies who participate in the design, conduct, and analysis of advertising research.  How the sequential use of different research techniques leads to more successful advertising planning and decision-making.  •The sequence of steps underlying successful advertising research and the types of decisions made at each step. Lecture Outline

Contribution of Research  Research contributes throughout entire advertising planning process  Contributes in four main areas:  Market  Consumer  Creative  Media

Process of Research Contribution

Research Contributions: The Market  Successful advertising planning builds on research-driven analysis of the marketplace  Current and potential future trends  Forces shaping the marketplace  How market forces affect own and competitive brands and advertising

Research Contributions: The Consumer  Effective advertising based on thorough understanding of target audience  Three dimensions of target audience analysis:  Consumer trends  How consumers interact with brand/product/service  Relationship between consumers and brand/product/service

Research Contributions: Creative  Research helps throughout creative development  Identify strongest essential message  Identify strengths and weaknesses of alternative approaches  Select most powerful approaches for placement in media (the “winning” approach)

Research Contributions: Creative…  Research also makes a contribution after creative is placed in media  Tracking evaluations to determine in-market success  Claim substantiation

Research Contributions: Media  Research helps answer questions such as:  How much are competitors spending?  Where, if anywhere, should the advertising be concentrated?  When and how should advertising be scheduled?  What is the optimal way to use different media?  What is the best media mix?

Process of Research Contribution

Who Conducts Research: Information Users  Individuals with direct responsibility for brand- and advertising-related decisions  Involved in all stages of research project: from planning to application

Who Conducts Research: Information Users…  Individuals on the “client side” are brand managers and research specialists  Brand managers responsible for marketing/advertising of a specific brand  Research specialists responsible for coordinating, gathering, analyzing and disseminating research findings

Who Conducts Research: Information Users…  All individuals on the “agency side” are involved with research  In larger agencies there is typically a dedicated research department  Smaller agencies may use account or media personnel to plan and conduct research

Who Conducts Research: Information Users…  Agency research department:  Plans, conducts and analyzes original research  Examines and analyzes research conducted by other companies  Works closely with client’s research department

Who Conducts Research: Additional Sources  Custom supplier: hired on a project by project basis  Syndicated research company  Media and consulting companies  Trade associations  Field Services

Field Service Ad

Process of Advertising Research  Preliminary discussions and agreements  Planning and data collection  Application

Preliminary Discussions and Agreements

Problem Statements  Type 1: Relates to the selection of alternatives and the evaluation of alternative actions

Problem Statements…  Type 1: Relates to the selection of alternatives and the evaluation of alternative actions  Type 2: Relates to problems and opportunities

Problem Statements… Type 1: Relates to the selection of alternatives and the evaluation of alternative actions Type 2: Relates to problems and opportunities  Type 3: Responds to need to broaden knowledge and understanding of consumer, product or market

Justify Research  Research is best justified when:  Value of information obtained exceeds cost to acquire  Cost implications of making wrong decision increase

Finishing the Problem Statement

Planning and Data Collection

Secondary Research  Examines data that already exists and which was gathered for a research need other than the current one  Sources include:  Internal agency or client records  Government agencies  Trade associations  Information brokers  Research companies  Printed or electronic sources

Primary Research  The collection of original, often proprietary, data specifically collected for the identified problem  Can take one of two forms:  Qualitative  Quantitative

Qualitative Research  Primarily uses open-ended probing questions  Common forms include in-depth interviews and focus groups  Most appropriate when one needs:  Background information when little is known  Information to assist in problem formulation  A deep understanding of consumers’ attitudes, feelings, beliefs and behaviors

Quantitative Research  Best used when:  Generalizability is important  Statistical differences between groups must be determined  Statistical analyses are required

Quantitative Research…  Three main types:  Observation is the recording of objects, events, situations, or people's behaviours. Observations can take place in either a natural or contrived situation where the presence of the observer may or may not be known.  Physiological entails the direct measurement of an individual's physical responses to stimuli such as an advertisement. Physiological research measures voluntary (such as eye movements) and involuntary responses (such as brain waves and galvanic skin response).  Survey is the most common form of quantitative research. It is the systematic collection of information from respondents through the use of questionnaires.

Sampling and Data Collection  Sampling plan specifies how participants will be selected  Probability sample is a sample in which each individual or household comprising the universe from which the sample is drawn has a known chance or probability of being selected for inclusion in the research. The selection of specific individuals from this universe is done purely by chance.  Non-probability sample is a sample of individuals selected in a purposeful way. Here, the selection of individuals for study participation can be conducted on the basis of convenience or judgment.

Sampling and Data Collection…  The most appropriate sampling option determined by:  Research objectives  Budget  Urgency  Need for generalization

Selection of Data Collection Method  Four options:  In-person face to face  Telephone  Mail surveys  Mediated electronic media (for instance, surveys conducted online or through a mobile devise).

Prepare and Distribute Research Proposal  Proposal consists of:  Executive Summary  Background  Problem Statement  Methodology  Cost  Timing  Appendices (if needed)

Remaining Steps

Application  Data analysis  Presentation of findings  Application of findings to decision- making

Bibliography  Advertising Research by Joel J. Davis Published by Pearson Prentice Hall.  Event Management For Tourism, Cultural, Business and Sporting Events by Lynn Van Der Wagen Brenda R. Carlos Published by Pearson Prentice Hall.  Advertising Principles and Practice by W. Wells, S. Moriarty and J. Burnett, Published by Prentice Hall International.  Production & Logistics in meeting, exposition, events & conventions by George G. Fenich Published by Prentice Hall.

The End: “ Holding on to anger is like grasping a hot coal with the intent of throwing it at someone else; you are the one who gets burned. ”