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Market Research
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Market research: Meet your customerDavid Ogilvy, renowned advertising professional and purported “father of
advertising,” once likened the marketer who ignores research to a general
who ignores decodes of an enemy signal.
While that may be a dramatic analogy, market research can very well
be the single determining factor of success or failure in any businessobjective or marketing campaign. Like Ogilvy, savvy professionals have
known this for years. They know that without market research—without
understanding the wants, needs and behaviors of target audiences,
effective messaging and engagement cannot occur. They see the following jarring
statistics as evidence for the need for adequate market research1:
• Over 25,000 new consumer products SKUs are introduced annually
in North America with only half of these new product launches
considered successful at launch.
• For every seven product ideas that are created, typically only one
succeeds in the market.
• An estimated 46% of all resources allocated to product
development and commercialization is spent on products that are
cancelled or that fail to yield an adequate financial return.
The overall concept of market research has not changed much over theyears, but the tools have. Research that was once reserved for big
companies with deep pockets can be conducted on much
smaller scales in shorter time frames, with equal rates
of effectiveness.
What’s more, the processes around market research have
shifted in the past 5-10 years and certain sub-sets of
market research are continuing to evolve. In this Blue Paper®,
we’re going to review the basics of market research, touch on variousapproaches that are common today and explore the latest trends. If your business
or organization is looking to refine its marketing approaches, read on to see how
research can be the key.
1 Strohmenger, Roxana. “A Cool Research Methodology That I Predict You Will Use | Forrester Blogs.” Forrester Blogs | Making Leaders Successful Every Day. 18 Jan. 2011. Web. 04 Feb. 2011. <http://blogs.forrester.com/ roxana_strohmenger/11-01-18-a_cool_research_methodology_that_i_predict_you_will_use>.
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A note on semant icsThere is market research and there’s marketing research:
Market research is specifically about the customer. It’s about finding out what
makes them tick—who they are, what they care about, how they feel, what
they perceive. The findings of market research can influence what products and
services a business offers, determine whether or not customer expectations arebeing met and pinpoint what drives purchase behavior.
On the other hand, marketing research is about discovering how
messages are received and processed by target audiences. It determines
how changes to the marketing mix can impact customer behavior. The
findings of marketing research can influence the marketing strategy
and communications plan, determine how a business should allocate its
marketing budget and pinpoint what messaging will resonate the most
among target audiences.
While slightly different, both kinds of research are crucial in revealing
not only who your customers are but how they want to engage with your brand.
These terms are used interchangeably among many marketers, and this paper
will follow suit. It’s important, however, to know the difference in the event that
your business seeks assistance from research firms or vendors who tend to draw a
clearer line between the two.
Determining an object iveThe planning stage of market research is all about objectives because objectives
help determine the scope of marketing research endeavors. What’s more, setting
objectives allows for more defined budgets and more effective measurement.
Before embarking on the road to research, ask these questions:
1. What is the purpose of this research?
2. What information is being sought?
3. How will the information be used?
The most effective research objectives, like any objectives, are focused and
specific; they include both what it is that is to be done and how it is known that it
has been achieved. For instance,
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A few common market research objectives often cover the following areas2:
• Market attractiveness:
- Market size
- Competitive presence and customer preference
- Customer spending patterns, budget cycles and purchase intent
- Channel trends, preferences and allegiances
• Customer insights:
- Specific customer needs and aspirations
- Buying behaviors, usage patterns, decision models
- Preferences, favorability and intentions
• Communications planning and ad testing:
- How target audiences receive information
- Which communications channels customers pay attention to
- Opportunities and vehicles for influencing target audiences
- Evaluation of alternative brand promises and calls to action and
the subsequent impact on target audience decisions or purchases
• Product and concept testing:
- Evaluation of product improvements, alternatives and packaging
- Evaluation of potential products and solutions, clarification of
needs, wants and preferences
• Customer satisfaction:
- Measurement of the quality of customer experience,
perceptions, reaction, loyalty and intent
• Pricing:
- Testing the response of price, feature, placement, packaging,
promotions and loyalty programs among target audiences
After consideration to the objectives has been taken, the development of a
research plan can take place.
Consider ing the designs and techniquesThe best approach to research is one that considers a variety of methods and
research designs. Start with secondary and tertiary research—research previously
2 “Marketing Minds Research - Research Objectives.” Marketing Minds Research - Online Market Research and Customer Surveys. Web. 03 Feb. 2011. <http://www.marketingmindsresearch.com/research_objectives.html >.
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conducted by others but relative to your objectives—and then expand to research
conducted by your own team through primary research methods.
These methods can be performed on a variety of scales and, thanks to tools we’ll
address later in this paper, are accessible to practically any budget.
Traditionally, all research can be broken down into four designs, based on either
questioning or observations:
Quantitative research
Often what is referred to as traditional market research, this refers to the
numerical and statistical information gleaned from polls, surveys, Web analytics,
and the like. It’s great for measuring actions and seeing patterns and, by
definition, quantitative research is historical (meaning that it measures what’s
already happened) but it can yield powerful predictive intelligence when it’s
modeled well.3
Types of quantitative research include:
• Surveys
Generally easy to administer than other types
of market research, respondents are selected
at random or at will to answer a series of
predetermined, usually multiple choice or
yes/no answer questions. Surveys are an
incredibly affordable and flexible method of
research and can be conducted in a variety of ways, such as: direct
mail, comment cards, e-mail, websites and pop-ups, mall intercepts
and social media.
• Web analytics
Most websites are set up to measure who is visiting, when and how
often. Further information, such as what links are being clicked, the
order the site is navigated and what users do once they leave the
site, can also be collected to comprise numerical data on website
engagement. While most web analytic tools are free, they come in
varying forms of complexity and require a significant investment of
time to interpret and analyze.
3 Norman, Eric. “Market Research - Branding in the Age of Social: Gaining Insight Through Research :MarketingProfs Article.” MarketingProfs: Marketing Resources for Marketing Professionals. 09 Mar. 2010.Web. 03 Feb. 2011. <http://www.marketingprofs.com/articles/2010/3449/branding-in-the-age-of-social-gaining-insight-through-research>.
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• Census data
This is research that is compiled based on factual statistics relating
to a population of people—birth rates, literacy rates, race,
geography, annual income. Some of it may be based on surveys,
while other data is based on information collected by hospitals and
other government entities.
Qualitative research
This type of research is more subjective than quantitative and includes interviews
and focus groups, but can be research that allows people to express their ideas
and feelings in open-ended prose. It’s great for uncovering motivations behind
actions, and is important for getting to the essence of brand-related beliefs
and decisions. It can help marketers better understand how a brand, product or
service is received and what might boost or impede progress, and what resonates
with target constituencies.
Types of qualitative research include:
• Open-ended interviews
Composed of questions that cannot be answered with a simple yes
or no. This type of interview gives you a lot of information, but
is time consuming for both the interviewee and interviewer. The
greatest benefit is first-person insight, including common trends,
emotional motivators, and general likes and dislikes of your
primary market.
• Observation
Direct observation can involve a researcher watching subjects and
taking notes in the background which could be from behind a one-
way mirror, video camera or website recording the happenings.
With participant observation, the researcher is actually part of the
situation being studied as with a moderated focus group or one-on-
one interviews.
• Focus groups4
Typically lead by professional facilitators, this is research that takes
place in small groups. “This technique is good if you need a range
of opinions,” says Kristin Schwitzer, president of Beacon Research,
a firm that specializes in innovative online research methods, based
in Annapolis, Maryland. In general, you want to get reactions from
4 Brown, Carolyn. “How to Conduct Qualitative Market Research.” Small Business and Small Business Informationfor the Entrepreneur. 25 Oct. 2010. Web. 04 Feb. 2011. <http://www.inc.com/guides/2010/10/how-to-conduct-qualitative-market-research.html >.
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eight to 10 people. Traditionally done in a closed room, in the
past few years this method has expanded to include a webcam or
online bulletin board focus group, in which consumers participate
in an asynchronous group discussion over the duration of three to
four days. Participants answer questions from the moderator and
respond to images or video on their computer screen. Since focus
groups must be lead by trained professionals to be most effective,
they can be a more expensive form of market research.
Ethnographic studies5
Largely qualitative, this method of research involves the observer looking for
certain social behaviors among populations in their natural setting, either at one
time (cross-sectional) or over several time periods (longitudinally). Ethnographic
studies, unlike other forms of research, focus on the assumption that a person’s
behaviors are inherent and subconscious. Rather than asking users what they
want, it is more effective to focus on what users do, what frustrates them, and
what gives them satisfaction.
Examples of ethnographic research include:
• Product use analysis
Participants are asked to use a product or a marketing piece, like
a website, while they are observed. This helps to identify problems
with a product or obstacles in reaching target audiences with
marketing messages.
• Internet cookies
This is a means of digitally tracking website users to see
what other sites they visit, how long they stay and where they
click. Cookies can also be used to populate custom ads based
on user behavior.
Experimental techniques
For the most part quantitative, this method of research involves the
creation of a quasi-artificial environment in order to attempt to control certain
factors while manipulating variables.
5 Malhotra, Naresh K. Marketing Research: an Applied Orientation. Upper Saddle River, NJ:Pearson/Prentice Hall, 2007. Print.
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Examples of experimental techniques include:
• Purchase laboratories
These simulated storefronts seek to observe the purchase behaviors
of individuals based on surroundings, placement and options.
• Test markets
This technique is usually the act of releasing a product or
launching a marketing campaign to a select number of individuals
prior to launching on a larger scale to determine and predict
the effectiveness of a product or campaign prior to a
big-budget rollout.
Knowing what quest ions to askNow that we’ve gone over the basic designs and techniques of marketing
research, how do you know what questions research should address?
Author and marketing expert, Sarah White, says that basic market research should
cover the following, based on previously outlined objectives6:
• Descriptive information: demographics, information
sources, influences
• How audiences use products or services: buying behavior,
usage traits, loyalty to specific brands
• Customer perceptions: likes and dislikes, perception of an
offering’s attributes, benefits and flaws
Descriptive information is often already compiled on certain populations
and available for purchase (or free of cost) to anyone. Sources like U.S.
census data and the Consumer Expenditure Survey conducted by the
Bureau of Labor Statistics can both be accessed online and offer great
insight into the “who, what, where” questions of market research. Things likepopulation size, geographic concentrations of certain populations or consumers,
and more can tell a marketer a lot about target audiences and may even help
pinpoint geographic locations to purchase mailing lists or Internet search ads.
6 White, Sarah, and Sarah White. The Complete Idiot’s Guide to Marketing. Indianapolis, IN: Alpha, 2003. Print.
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Everything else falls into the category of “why” research—the psychographic
information. Large research companies like Forrester have a multitude of already
compiled market research covering this information on file for purchase.
Online market research toolsPerhaps the biggest reason why market research has become more accessible to
businesses and organizations of all sizes has to do with the Internet. A veritablepooh-pooh platter of tools now exist—most free or highly affordable—that
help marketers maintain a pulse on a target audience’s behaviors, opinions and
emotions. Let’s take a look at a few of these options …
Keyword search7
Keyword searches are Internet searches conducted on
keywords that people would use to find a website,
product or service. Tools like Google’s AdWords® tool,
WordTracker™ and Trellian’s Keyword Discovery Tool™are all highly regarded means of finding the best keywords
for a website, yes, but also for gaining customer insight.
According to Inc. Magazine, these can also help remind
marketers of product niches that they might not have
considered. There are other reasons to conduct keyword searches, too.
“First, you’re going to be reminded of product niches that you might not
of thought of.” says Jennifer Laycock, editor-in-chief of Search Engine
Guide, an online guide to search engines, portals and directories. “Second,these services will also give you a guesstimate of how many existing sites
already use that phrase,” Laycock continues.
Competitor links8
A traditional search engine can also help you check out your competitors,
their prices and their offerings. Try typing “link:www.[competitor’s
name].com” into Google to find out how many other sites link to your
competitor’s website.
“It is a great way to see a competitor’s link development and PR
campaigns,” says Shari Thurow, Web expert and author of the upcoming
book Search Engine Visibility. “Is the competitor promoting a product or
service similar to your own? Maybe you can get publicity because you have
a new or better product.”
7 Inc. Staff. “How to Use Internet Market Research Tools.” Small Business and Small Business Information for theEntrepreneur. Web. 04 Feb. 2011. <http://www.inc.com/guides/biz_online/online-market-research.html >.
8 Inc. Staff. “How to Use Internet Market Research Tools.” Small Business and Small Business Information for theEntrepreneur. Web. 04 Feb. 2011. <http://www.inc.com/guides/biz_online/online-market-research.html>.
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Blogs9
Blogs are updated much more regularly than traditional websites and,
therefore, they can be another gauge of public opinion. Search blogs
by using blog-specific search engines, such as Technorati or Nielsen
BuzzMetrics’ Blogpulse®.
Online surveys
As mentioned, surveys are a fantastic and cost-effective means
of gauging public opinion. While not generally seen as scientific
as in-person or phone surveys that use a random sampling of
the population, online surveys are a low-cost way to do market
research about whether an idea or a product will be appealing
to consumers, how they use a website or garner brand
information, and more. Now many companies offer to conduct
online research for you or give your company the tools to carry out your
own surveying. Some online survey companies include EZquestionnaire,
KeySurvey, and WebSurveyor.
Social media tools
Social sites like TwitterSM, Facebook®, YouTubeSM, FlickrSM and others are
great tools with infinite possibilities. Marketers can use these sites to
not only listen to target audiences for trends and patterns in wants and
behavior, but also as a channel for distributing surveys and
requesting feedback.
Knowing when to ask for helpSometimes businesses and marketers are intent on primary research but don’t
have the budgets or the expertise to conduct market research in-house. Luckily,
there are many market research firms out there, from tiny consulting firms to
huge multinational corporations that can be recruited to do the detailed work.
But how do you find one that will best fit your company’s needs? Ed Erickson, of
Erickson Market Research, explains.10
First of all, Erickson warns marketers to not get intimidated. Instead, be inquisitive
by asking three very specific questions of each potential research supplier11:
9 Inc. Staff. “How to Use Internet Market Research Tools.” Small Business and Small Business Information for theEntrepreneur. Web. 04 Feb. 2011. <http://www.inc.com/guides/biz_online/online-market-research.html >.
10 Erickson, Ed. “Strategy - Four Questions for Choosing the Right Research Firm : MarketingProfs Article.”MarketingProfs: Marketing Resources for Marketing Professionals. 6 Mar. 2007. Web. 04 Feb. 2011.<http://www.marketingprofs.com/7/choosing-right-research-rms-erickson.asp>.
11 Erickson, Ed. “Strategy - Four Questions for Choosing the Right Research Firm : MarketingProfs Article.”MarketingProfs: Marketing Resources for Marketing Professionals. 6 Mar. 2007. Web. 04 Feb. 2011.<http://www.marketingprofs.com/7/choosing-right-research-rms-erickson.asp>.
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1. Who, specifically, is going to do the work?
2. What methods do you recommend for this project?
3. How, exactly, will your proposed approach help me make
marketing decisions?
4. How do you report your research findings?
“There is no single right or wrong answer to any of these questions,” says
Erickson. “The nature of the project and the relationship you want with the firm
will determine the “right” answers.”
In a recent MarketingProfs article, Erickson goes on to explain why each question
should matter to the marketer and what to listen for in a research firm’s answer.
Here’s an overview of his explanations …12
1. Who, specifically, is going to do the work?
As with any service-oriented business, the people actually doing the work will
have the greatest impact on the project’s success or failure. That’s why it’s often
said that you hire the people, not the company.
Meet the key players upfront so you can more clearly evaluate the firm’s ability
to deliver. Establish your expectations for outcomes and processes at the start.
Also, evaluate how well those working on the project fit with your work style and
company culture.
2. What methods do you recommend for this project?
The firm should be able to clearly communicate what the appropriate
method is, how to best execute it, and why they recommend it. Do not
settle for a vague description of the work to be done. Instead, use the
following approach for
this conversation.
First, communicate the main goals for the research project. Then,
fill in as many specifics as you can about the product, the company’s
marketing and distribution channels, and what you already know about the
market. This should give the firm enough information to describe, in detail, its
data collection and analytic approach to meeting the objectives. Ask about the
alternatives, and discuss the pros and cons of each. Be comfortable that the
people you’re asking to do the work are knowledgeable and experienced.
12 Erickson, Ed. “Strategy - Four Questions for Choosing the Right Research Firm : MarketingProfs Article.”MarketingProfs: Marketing Resources for Marketing Professionals. 6 Mar. 2007. Web. 04 Feb. 2011.<http://www.marketingprofs.com/7/choosing-right-research-rms-erickson.asp>.
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3. How, exactly, will your proposed approach help me make marketing decisions?
Once the firm has outlined the general approach, insist it relate the specific
techniques to be used directly to the research objectives. A research firm that
understands your company’s strategy and business issues will provide you with
insight that you can actually use. Look for a firm that begins with the end
in mind.
4. How do you report your research findings?
The research report must contain the appropriate analysis and conclusions,
and it must be presented in a way that makes sense for your organization. The
presentation of results must tell the story in the data. It must also speak clearly
to the research objectives and provide useful, realistic direction for marketing
decision-makers. This is why it’s so important to hire a research
firm that understands the marketing strategy behind the project.
A well crafted report will have the following:
• A format and tone that respects your
company’s culture
• Charts and other graphics that clearly display
rich information
• Text that discusses implications and makes
recommendations
from data
“Just as there is someone for everyone” says Erickson, “There is a research firm for
every project. Don’t settle for a firm that happens to be available.”13
Top f ive researching trends for 2011Now that we’ve addressed a basic overview of market research, let’s delve into
the top trends in the industry for the year ahead.
1. The demand for holistic data continues
This involves businesses and marketers wanting to be able to
integrate more sources of data to get a complete view of the target
audiences. Experts say that this information will continue to come
not just from survey research or qualitative research but from
secondary sources, syndicated sources, social media and the Web,
and marketing analytics.14
13 Erickson, Ed. “Strategy - Four Questions for Choosing the Right Research Firm : MarketingProfs Article.”MarketingProfs: Marketing Resources for Marketing Professionals. 6 Mar. 2007. Web. 04 Feb. 2011.<http://www.marketingprofs.com/7/choosing-right-research-rms-erickson.asp>.
14 Moran, Robert. “Interviews.” Future of Insight. Web. 04 Feb. 2011.<http://www.futureonsight.com/interviews/ >.
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2. The growth of integrated analytics emerges
Some research experts are quick to point out that more and more
funding is going into analytics. They argue that this is an indicator
that new tools that combine analytics and research will continue
to become available in the marketplace. Businesses and marketers
looking to coalesce research with analytics will benefit from these
emerging tools. 15
3. Market research as a business conscience becomes a priority
With social media currently owning many organizations’ public
relations agendas, it’s really easy for market research departments
to be firefighting for a living, responding to each social media
outburst. But the real question market research should answer is
this: How damaging are these outbursts to the organization? Is the
uproar about a genuine problem with the product, or just hype? In
fact, throughout 2011 Forrester researcher Reineke Reitsma predicts
that market researchers will focus on how to make sense of all
the chatter that’s already happening on social networks, integrate
social intelligence into their research, report these insights into the
organization, and uncover major issues before these actually hit
the groundswell.16
4. Neuromarketing will continue to expand as a common
research method
As mentioned in a previous Blue Paper on the topic,
neuromarketing is a subset of market research that looks at what
actually happens in the brain when consumers make purchase
decisions. Covering everything from font usage, color, image
placement and more, this research is highly precise and very
scientific. It is currently a relatively expensive method of research,
but experts predict that it will continue to become a standard and
more affordable method in the average market researcher’s arsenal.
5. Mobile research will lead to faster and easier survey response and
engagement from users
Nokia® gets the credit for pioneering this trend and many
researchers have taken note for their own clients. What started as
15 Moran, Robert. “Interviews.” Future of Insight. Web. 04 Feb. 2011.<http://www.futureonsight.com/interviews/ >.
16 Reitsma, Reineke. “Trends That Will Shape Market Research In 2011: Organization, Technology, And Social | Forrester Blogs.” Forrester Blogs | Making Leaders Successful Every Day. 20 Dec. 2010. Web. 04 Feb. 2011.<http://blogs.forrester.com/reineke_reitsma/10-12-20-trends_that_will_shape_market_research_in_2011_organization_technology_and_social >.
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an experiment in integrating face-to-face interviews with mobile
engagement to measure and explore the levels of brand loyalty
among existing customers, turned into a marketing campaign in
and of itself. The mobile device manufacturer asked users to upload
their encounters, along with thoughts and images to personalized
mobile blogs, called “Moblogs.” They then were also asked to
participate in interviews from time to time to discuss emotions
presented in these blogs pertaining to different brands. Results
of the research found that participants created sub-communities
surrounding brands they blogged about and discussed their
emotions and opinions with one another to create a sense of
belonging. Nokia was able to walk away from the research with
clear insight on what emotions were necessary for brand loyalty
among their customers—comfort, simplicity, inclusivity, exclusivity,
ethics, style and innovation.17
Using the dataThe information that has been gathered throughout the entire research process
is only as good as how it is interpreted and implemented into a marketing
campaign or business strategy. Many companies spend thousands of dollars
in the marketing budget on research, only to have survey results sit in a filing
cabinet collecting dust.
Recruit help from the experts if necessary, but the objective here is to identify
patterns, themes and ideas in the results of your research.
If your business or organization pursues market research, be sure there are
processes in place to ensure that the data collected is then translated and
implemented into the marketing mix. Identify staff members whose responsibility
it will be and identify checks and balances for ensuring that data is transferred.
Research is an important component to any marketing or business plan. Take the
words of Ogilvy to heart and harness the power of research for your company
today—you won’t regret it.
17 Strohmenger, Roxana. “A Cool Research Methodology That I Predict You Will Use | Forrester Blogs.” Forrester
Blogs | Making Leaders Successful Every Day . 18 Jan. 2011. Web. 04 Feb. 2011. <http://blogs.forrester.com/roxana_ strohmenger/11-01-18-a_cool_research_methodology_that_i_predict_you_will_use>.
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