Advertising Principles and Practices

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• 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?
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• Reading for Homework.
• What was the key consumer insight?
• Due next Tuesday, no need to read before the test.
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• What kind of research results led to an upgrade of all Holiday Inn
Express bathrooms?
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• Holiday Inn Express
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• Secondary Research
– Background research using available published information
– Sources include government organizations , trade associations, secondary research suppliers, secondary information on the Internet
• 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).
– Proprietary vs. Syndicated
Hyperlink to http://
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• 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, indepth interviews, and case studies
– Used early in the process
– Generating insights
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• 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.
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• 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
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MRI +
How to use Mediamark
3-***

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Accessing MRI +

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Register for Free

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Product, Candy

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Spreadsheet

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

• Login to MRI+
• Tell me: How are Red Bull and Diet Coke different in terms of purchaser’s sex, income, and geography?
• e-mail to Alex
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• 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,
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• 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
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.
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• 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.
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• Activision “Aggressors”
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• 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.
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• 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)
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• 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”
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• Definitions
• Models (How advertising works;
Psychographic and behavioral)
• Branding and differentiation
• Demographics/psychographics; Types of research
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• Full History of Advertising
• Details of how advertising is regulated (except chart in class).
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