BRAND MANAGEMENT AND NEW PRODUCT DEVELOPMENT SECTION 7A Brand Management and the Firm Market...

BRAND MANAGEMENT AND NEW PRODUCT DEVELOPMENT

SECTION 7ABrand Management and the Firm

Market Research - 1

ALAN L. WHITEBREAD

MARKET RESEARCH OVERVIEW

Market Research

The collection and analysis ofdata for market decisions about

COMPETITORSMARKETS

PRODUCTSRESPONDENTS

STRATEGY OPTIONS

Strategic Marketing for Evaluation data for

-Strategy analysis -New business

analysis Market Planning for

Market segmentation Market potential / shareCompetitive analysis

Product Management forNew or enhanced products 4 P's decisions

Product Development for Product concept testingSales techniques Price testing

UNDESTANDING RESULTS

Event 1 Event 2 Event 3 Event 4 Event 5 Event 6 Event 7 Event 8 Event 9 Event 10 Event 11 Event 12 Event 13 Event 14 Event 15 Event 16

Item A

Item B

Item C

Item D

Item E

Item F

Item G

Item H

Item I

UNDESTANDING RESULTS


Item A

Item B

Item C

Item D

Item E

Item F

Item G

Item H

Item I


Item G

Item A

Item C

Item H

Item I

Item B

Item E

Item D

Item F

FRAMING AN ISSUE

McKinsey & Company

• “Breakthrough Thinking from Inside the Box”, HBR, December, 2007, pp.71-78.– Create new boxes to think inside– Bound the range of acceptable ideas– Tailor the questions accordingly– Select participants capable of original insight– “21 Great Questions for Developing New

Products”

ELEMENTS OF A GOOD QUESTIONNAIRE

• Most are short, simple, and quick – but some can be quite long

• Precise wording of questions and answers• Avoids leading questions• Does not ask unreasonable questions• Does not alienate the respondent

– Sensitive topics = ?

• Readily lends itself to statistical analysis

THE QUESTION MUST BE VERY CAREFULLY WORDED

AND STRUCTURED!

THE STRUCTURE OF THE ANSWER IS JUST AS

IMPORTANT AS THAT OF THE QUESTION!

TYPES OF QUESTIONS

DICHOTOMOS QUESTION

THE RESPONDENT MUST ANSWER ONE OF JUST TWO CHOICES

DO YOU THINK TIDE GET CLOTHES CLEAN WITHOUT INJURING THE FABRIC? YES NO

TYPES OF QUESTIONS

DICHOTOMOS QUESTION

THE RESPONDENT MUST ANSWER ONE OF JUST TWO CHOICES

DO YOU THINK TIDE GET CLOTHES CLEAN WITHOUT INJURING THE FABRIC? YES NO

YES = CLEAN AND WITHOUT INJURY TO THE FABRIC

NO = WHICH? CLEAN, INJURES, CONFUSED, … ?

TYPES OF QUESTIONS

OPEN-END or COMPLETELY UNSTRUCTURED QUESTION

OBTAINS INFORMATION WITHOUT BIAS

IT IS LIKE AN ESSAY EXAM

IT IS VERY HARD TO ANALYZE

FREE RESPONSE QUESTION

ANSWERS ARE LIMITED TO A WORD OR A PHRASE

TYPES OF QUESTIONS

SENTENCE COMPLETION QUESTION

THE ______ IS OBTAINED BY DIVIDING ______ BY ______.

GOOD FOR ROTE MEMORY MEASUREMENT

THE RISK IS THAT IS ALL THEY MEASURE!

TYPES OF QUESTIONS

MULTIPLE CHOICE QUESTION – you must know everything about an issue to properly write these structured questions.

1-VERY EASY ANSWER SET

ONE CORRECT ANSWER

2-TO MEDIUM HARD ANSWER SET

SEVERAL ANSWERS ARE ONLY SLIGHTLY DIFFERENT

3-TO HARD ANSWER SET

COMBINATION ANSWERS ONLY SLIGHTLY DIFFERENT

TYPES OF QUESTIONS

RANKING, RATING, and CONTINUUM QUESTIONS

FORCE A MORE PRECISE SCALE OF MEASUREMENT

SCALE DETERMINES TYPE OF STATISTICAL ANALYSIS

PROBLEM IS THE MEANING OF THE SCALE OF MEASUREMENT

CHECK QUESTIONS

THE ASSUMPTIONS WERE WRONG!

• Univac predicted that by the year 2000, only about 1000 computers total would be in use and IBM dominated for years.

• IBM hired a consulting company and their study predicted that only a total of 5,000 Haloid machines could ever be sold and XEROX dominated for years.

QUALITATIVE RESEARCH

• Words and images

• “Soft” or subjective data

• Exploratory in nature

• Understand unmet needs

• Heuristic analysis: search for themes and deeper meanings

COMPETITIVE ANALYSIS: FIRMS

Traditional competitors

Evolving competitors

New competitors to the industry

The growing role of strategic alliances

COMPETITIVE ANALYSIS:PRODUCT LINE ANALYSIS

Competing Software Packages

Software FeaturesOUR PRODUCT

COMPETITOR #1

COMPETITOR #2

COMPETITOR #3

Accounts Payable and Accounts Receivable X X X X

Invoicing X X X X

Other Profiles X X X X

Researches by a wide variety of data X X X X

Prints customized reports X X O NO

Interfaces popular accounting software X PROPOSED O PROPOSED

Generates a wide variety of daily reports. X X X X

Imports data from Windows based applications. X X N X

Reporting features for creating contracts. X ? N ?

Reporting features for creating profit reports. NO X X X

Operates on Single Computer X X ? ?

Operates on Networks X X X X

Back-up feature. X ? ? ?

Updates X X X ?

Drill down research NO X FUTURE ?

Training X X X X

LEGEND: Y=yes O=optional N=no PROP=proprietary PFF=planned for the future

COMPETITIVE ANALYSIS:PRODUCT LINES [EXPLOSION]

MEN’S SHIRTS

BRAND

TYPEDress, casual,

sport, work

SIZES, M, L, XL

Pluslong and short

Button down or not---

Colors---

Fabrics

PRODUCT LINE EXPLOSION

• Look at what happens with only a little changes to the previous slide.

– Brands*types*sizes*collars*colors

1 4 8 2 4

• 1*4*8*2*4 = 256

• 3*4*8*2*6 = 1,152

CONTEXTUAL RESEARCH

CONTEXT

-Activities-Environment-Interactions

-Other products-People

-Processes-Relationships

CONTEXTUAL RESEARCH:PRINCIPLES

• Empathy for understanding

• Rapport for true behavior and values

• Subjects lead the session and identify what is important

• Focus on what subjects do more than their opinions

• General patterns should emerge

CONTEXTUAL RESEARCH:THE PROCESS

Defining theproblem and

researchobjectives

Defining theproblem and

researchobjectives

Developingthe research

plan

Developingthe research

planCollect the informationCollect the information

Analyze theinformationAnalyze theinformation

Present thefindings

Present thefindings

MarketingDecisionsMarketingDecisions

QUALITATIVE TECHNIQUES

• INTERVIEW USERS

• FREE ASSOCIATION– What does _________ mean to you?

QUALITATIVE TECHNIQUES

• FOCUS GROUPS– How do they work?

• PROJECTIVE TECHNIQUES– Completion and interpretation tasks– Comparison tasks– To try and uncover true opinions and feelings– Example: Rorschach Test [inkblot]

http://www.stupidstuff.org/main/rorschach.htm

http://www.stupidstuff.org/main/rorschach.htm

CONCEPT TESTING:What ideas should we pursue?

• The unmet need or want– “The universal carryall”

• What is it?• How should it work?• Feature[s] = ?• Advantage[s] = ?• Benefit[s] =

1. ?

2. ?

3. ?

“The universal carryall”

CONCEPT TESTING:What ideas should we pursue?

• Test as many ideas as possible

• Test ideas before any feasibility analysis

• Do not mix innovative and very futuristic ideas in the same test set

BRAND ATTRIBUTES AND BENEFITS

PRODUCTOR

SERVICE

Functionalbenefits

Experientialbenefits

Symbolicbenefits

Product-relatedattributes

Brandpersonality

Userimagery

Usageimagery

TTU DELOITTE PROJECT, FALL 2008

SCALES OF MEASUREMENT

SCALE STRUCTURE EXAMPLE(S)

NOMINAL 1:1 correspondenceSubjective data

Football numbersLottery drawing numbers

ORDINAL

A scale existsNo distance relation is known (e.g. 3-2 <> 4-3)

Military rankQuality of lumber, beansUpper-middle-lower class

Ordinal scales are often used to evaluate consumer satisfaction.

How satisfied are you with PRODUCT X?

1. Not satisfied

2. Neither satisfied or dissatisfied

3. Satisfied

4. Very satisfied

5. Extremely satisfied

SCALES OF MEASUREMENTSCALE STRUCTURE EXAMPLE(S)

Equal distances between items (e.g. 4-2=4-3)

Calendar daysTemperature

RATIO

A continuous scale of measurementDefinite relationshipsA true zero point

MeasurementLoudness scale

INTERVALEqual distances between items (e.g. 3-2=4-3)

Calendar daysTemperature

Interval scales are often used to rank items.Which products do you prefer the most? Assign #1 to the most

preferred and #5 to the least preferred product. PRODUCT A _____ PRODUCT B _____ PRODUCT C _____ PRODUCT D _____ PRODUCT E _____

BRAND PERSONALITY

IF PRODUCT __________ WAS YOUR FRIEND,

HOW WOULD IT TALK TO YOU?

THE BRAND PERSONALITY APPROACH

SUPPORTING THEME:Brand-self congruence

SUPPORTING THEME:

Personality

SUPPORTING THEME:

Consumer self

BRAND PERSONALITY

BRAND PERSONALITY:Supporting theme: personality

Recessive personality

Personality dimensions

Dominant personality

Quiet, reserved, shy, silent, withdrawn

EXTROVERSION Talkative, active, energetic, outgoing

Fault-finding, cold, unfriendly, quarrelsome, hardhearted

AGREEABLE Sympathetic, kind, appreciative, affectionate, softhearted

Careless, disorderly, frivolous, irresponsible, slipshod

CONSCIOUSNESS Organized, thorough, efficient, responsible

Tense, anxious, nervous, moody, worrying

EMOTIONAL STABILITY Stable, calm, contented, unemotional

Commonplace, narrow interests, simple, shallow, unintelligent

OPENNESS / CULTURED Wide interests, imaginative, intelligent, original, insightful

BRAND PERSONALITY

Brand PersonalityCentral Theme

RuggednessSophisticationCompetenceExcitementSincerity

•Hallmark•Coke

•Pepsi •HP•Wall Street Journal

•BMW•Lexus•Grey Poupon

•Nike•Wells Fargo

THE POWER OF PASSIONS

• The brand is what makes a product more than just a product – it makes it unique.

• The brand goal is to be more than brand preference – a passionate brand insistence!

• This is done through engagement and fulfilling self-concept and image to others.

• Brand Passion “I am Canadian” video

CONNECTING WITH CONSUMERS

• B2C– Needs and wants– Emotions and self-actualization– Hopes [dream realizations]– Fears [risk reduction, safety]– Familiarity and trust [brand loyalty]– Understanding demographic trends

CONNECTING WITH CONSUMERS

• B2B connections– Performance and reward [best solution]– Fears [risk reduction, improve safety]– Familiarity and trust [consistency → brand

loyalty]– Understanding trends

BRAND MANAGEMENT AND NEW PRODUCT DEVELOPMENT SECTION 7A Brand Management and the Firm Market...

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