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Chapter 4 Brand Research & Consumer Insights

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1 Chapter 4 Brand Research & Consumer Insights

2 Categories of Marketing Research
Consumer Industry Product IMC Figure 4.1 There are three kinds of marketing research, and each one provides a unique perspective for planning. IMC research includes examples of creative advertisement used by competitors, along with their media expenditures and information about promotional programs.

3 Secondary Research for Information
Syndicated Reports Industry Associations Business Media Academic Journals Consulting Companies Government Documents Figure 4.2 Syndicated research is the most popular source of information because the information is immediately available, but then, the disadvantages is that brand competitors have the same data. The important difference is how a company interprets and uses the research findings. Government documents are similar, but their advantage is that the information is usually free and very comprehensive. Industry associations and business media provide the most current, relevant, and useful source of information for planning IMC programs and activities.

4 Primary Research for Insights
Focus Groups Personal Interviews Opinion Surveys Behavioral Observations Social Media Listening Role-Playing Exercises Immersive Experiences Projective Techniques Figure 4.3 IMC needs primary research for planning both creative advertising and media purchasing. This type of research provides a deeper insight into the mind and mood of consumers. Nearly every agency uses focus groups for brand message development. Larger companies also apply projective techniques, role-playing, and personal interviews. But, the quickest and more helpful method is the simple process of direct observation or immersion. Another is the power of social media, not for posting, but listening and learning.

5 B2B Qualitative Research
Store Visits Sales People Competition Customers Employees Journalists Figure 4.4 Retail stores depend on daily sales results. While usually measured in sales, or net profits, there are plenty of other ways for national brands to gather information about their customers. Real time observations and evaluations from store visits provides the quickest and most dependable insights. Additional perspectives are obtained by talking to sales people and other individuals.

6 Segmentation Categories
Demographic Age Gender Income Marital Status Family Size Psychographic Life Style Attitudes Interests Personality Ethnicity Geographic City Size Zip Codes CBSA's DMA's Sales Regions Purchase/Use Buyer Status Amount Frequency Purpose Price Sensitivity Figure 5.1 Segmentation categories are used to identify differences among customers and potential buyers. This information is used later for creative development and media buying. Each of the categories also has subdivisions that focus on the unique aspects of consumers. The more specific the details of demographic, psychographic, geographic, and purchase use, the better.

7 Buyer Status Segmentation
First Time Brand Switchers Not Interested Loyal Customers Figure 5.2 First time buyers are new to the market and require information. Since they have limited experience with the product category, these buyers need to understand product features, as well as brand benefits. Brand switches tend to make decisions based on the lowest price or best deals, but often switchers are people who are unhappy with their brand for other reasons. Loyal customers have very high levels of satisfaction with their existing brand and continue to purchase it on a regular basis. And, there is another category of individual who are not interested in the product category or have very little need for such products and services.

8 Purchase Rate Segmentation
Light Users 1-3 Times Per Week Purchased Monthly Medium Users 4-7 Times Purchased Weekly Heavy Users More Than 8 Times Per Week Purchased Daily Figure 5.3 The descriptions of light, medium, and heavy purchasers must always be quantified. This means that specific numbers must be assigned to each category. Although this might be an arbitrary decision, it helps to calculate the percent of buyers in each category and estimate the potential sales volume.

9 Target Audience Profile
Demographic 24-35 Female $45,000 Single Two Children Psychographic Professional Impulsive Action Sports Enthusiastic Hispanic Geographic Large Metro Zip Codes CBSA's Miami Sales Regions Purchase/Use First Time Buyer No Experience Heavy Potential Use Healthy Eating Premium Quality Figure 5.4 This an example of how the four segmentation categories can be used to identify a specific target audience for a brand. The profile provides a better of existing or potential buyers and guidance for the development of every type of IMC program.


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