1. McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 7 Research: Gathering Information for Advertising Planning

2. 7-2 Chapter Overview How advertisers gain information about the marketplace and then apply their findings

3. 7-3 Chapter Objectives Discuss how research locates market segments and target markets Define and explain validity and reliability Explain the challenges in collecting research data abroad Explain the steps in the research process Discuss differences between formal/informal research and primary/secondary data Recognize issues in creating survey questionnaires Explain the methods used in qualitative and quantitative research Debate the pros and cons of advertising testing

4. 7-4 What is Marketing Research? Functions Consumer Needs & Market Segments Product Development Assess Effectiveness Financial Planning Quality Control Purposes Recruit New Customers Retain Current Customers Regain Lost Customers

5. 7-5 What is Marketing Research? Nielsen ad for market research services

6. 7-6 Applying Advertising Research

7. 7-7 Applying Advertising Research Target Audience Selection Message- Element Selection Media Selection Product Concept Strategy Research

8. 7-8 Concept Pretesting & Post-testing Merchandise Markets Motives Messages Media Whether and how to continue Pretesting DecisionsPost-test Decisions What to change How much to spend in the future

9. 7-9 Media Categories

10. 7-10 Steps in the Research Process Qualitative Quantitative 1. Analyze situation and define problem 3. Establish research objectives 4. Conduct formal research 5. Interpret and report findings External InternalPrimary Data Secondary Data 2. Conduct informal (exploratory) research

11. 7-11 Qualitative Methods: Intensive techniques Projective Techniques Feelings, attitudes, interests, opinions, needs, motives Focus Groups In-Depth Interviews Interaction reveals true feelings and behavior Observation, Experimentation, Surveys

12. 7-12 Qualitative Methods A focus group is especially effective when used in conjunction with market surveys

13. 7-13 Quantitative Methods SurveyExperiment Observation

14. 7-14 Quantitative Methods The Universal Product Code (UPC) label allows measurement of advertising response

15. 7-15 Quantitative Methods Envirosell uses cameras to capture in-store consumer shopping habits

16. 7-16 Methods for Pretesting Ads Direct questioning Focus group Order-of-merit test Print Ads Portfolio test Mock magazine Perceptual meaning study Paired comparisonDirect mail test

17. 7-17 Methods for Pretesting Ads Central location projection test Trailer test Theater test Broadcast Advertising Live telecast test Sales experiment

18. 7-18 Methods for Pretesting Ads Pupilometric device Eye movement camera Galvanometer Physiological Testing Voice pitch analysis Brain pattern analysis

19. 7-19 Post-testing Methods Aided recall (recognition-readership) Unaided recall Aptitude tests Post-testing Sales tests Inquiry tests

20. 7-20 Issues in Advertising Research ValidityReliability International Data Collection Data Tabulation & Analysis Questionnaire Development Sampling Method Quantitative Research Considerations

21. 7-21 Issues in Advertising Research Reliability/Validity Diagram

22. 7-22 International Data Research Control and direction Language and culture Challenges Higher expense Longer lead times Lack of standardization

23. 7-23 Developing Effective Questionnaires Keep them short State questions clearly List specific objectives Write a rough draft Short opening statement Logical flow to questions No leading questions Start with easy questions Use cross-checking End with demographics Pretest the questionnaire