Chapter 7 Research: Gathering Information for Advertising Planning McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Overview How advertisers gain information about the marketplace and then apply their findings 7-2 Chapter Objectives Discuss how research locates market segments and target markets Define and explain validity and reliability Explain the steps in the research process Recognize issues in creating survey questionnaires Discuss differences between formal/informal research and primary/secondary data Explain the challenges in collecting research data abroad Explain the methods used in qualitative and quantitative research Debate the pros and cons of advertising testing 7-3 What is Marketing Research? Functions Consumer Needs & Market Segments Purposes Recruit New Customers Product Development Assess Effectiveness Financial Planning Retain Current Customers Regain Lost Customers Quality Control 7-4 What is Marketing Research? Nielsen ad for market research services 7-5 Applying Advertising Research 7-6 Applying Advertising Research Media Selection Product Concept Strategy Research Target Audience Selection MessageElement Selection 7-7 Concept Pretesting & Post-testing Pretesting Decisions Post-test Decisions Merchandise Whether and how to continue Markets Motives Messages Media What to change How much to spend in the future 7-8 Media Categories 7-9 Steps in the Research Process 1. Analyze situation and define problem 2. Conduct informal (exploratory) research Primary Data Secondary Data Internal External 3. Establish research objectives 4. Conduct formal research Qualitative Quantitative 5. Interpret and report findings 7-10 Qualitative Methods: Intensive techniques Projective Techniques Observation, Experimentation, Surveys Focus Groups Feelings, attitudes, interests, opinions, needs, motives In-Depth Interviews Interaction reveals true feelings and behavior 7-11 Qualitative Methods A focus group is especially effective when used in conjunction with market surveys 7-12 Quantitative Methods Experiment Survey Observation 7-13 Quantitative Methods The Universal Product Code (UPC) label allows measurement of advertising response 7-14 Quantitative Methods Envirosell uses cameras to capture in-store consumer shopping habits 7-15 Methods for Pretesting Ads Print Ads Direct questioning Portfolio test Focus group Mock magazine Order-of-merit test Perceptual meaning study Paired comparison Direct mail test 7-16 Methods for Pretesting Ads Broadcast Advertising Central location projection test Live telecast test Trailer test Sales experiment Theater test 7-17 Methods for Pretesting Ads Physiological Testing Pupilometric device Voice pitch analysis Eye movement camera Brain pattern analysis Galvanometer 7-18 Post-testing Methods Post-testing Aided recall (recognition-readership) Unaided recall Aptitude tests Inquiry tests Sales tests 7-19 Issues in Advertising Research Sampling Method Questionnaire Development Validity Quantitative Research Considerations Data Tabulation & Analysis Reliability International Data Collection 7-20 Issues in Advertising Research Reliability/Validity Diagram 7-21 International Data Research Challenges Higher expense Control and direction Language and culture Longer lead times Lack of standardization 7-22 Developing Effective Questionnaires List specific objectives Start with easy questions Keep them short Logical flow to questions State questions clearly No leading questions Write a rough draft Use cross-checking Short opening statement End with demographics Pretest the questionnaire 7-23