Marketing Research & Social Communication Lesson 1

What is Market Research and why do organisations use it?

Ray Poynter

1  Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015  

Agenda

1.  Introductions 2.  Textbook 3.  Market Research and its Context 4.  Qualitative and Quantitative 5.  Other forms of Market Research 6.  Big Picture and Key Takeaways

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   2  

Introductions

•  Name •  Country •  Major subject •  A favourite brand that has not

already been mentioned today

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   3  

Textbook

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   4  

Title:  Answers  to  Contemporary    Market  Research  Ques:ons  

 Published:  ESOMAR  Editors:  Ray  Poynter  &  Sue  York  Date:  March  2014  ISBN:  92  831  0262  2  Price:  20  Euros  Dona/on:  ESOMAR  donated  30  books    

Other Books

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   5  

Title:  Ques:onnaire  Design  Author:  Ian  Brace  Published:  Kogan  Page  Date:  June  2013  Price:  £29,99  

Title:  Handbook  of  Online  &  Social  Media  Research  Author:  Ray  Poynter  Published:  Wiley  Date:  August  2010  Price:  £41.99  

Title:  Handbook  of  Mobile  Market  Research  Author:  Ray  Poynter,  Navin  Williams,  &  Sue  York  Published:  Wiley  Date:  August  2014  Price:  £24.99  

Website for Resources

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   6  

hTp://newmr.org/saitama-­‐2015/  

What is Market Research?

Scope: Customers

Objective: Better business decisions

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   7  

•  Evidence-­‐based  decision  making  •  Be2er  informed  decisions  •  Customer-­‐focused  decision  making  

The Main Uses of Market Research

1.  To explain the market For example: Who uses what, where, when, why, and how?

2.  To predict the future (probabilistically) For example, “Here are three TV ads, if I were to use them, what impact would they have?”, or “If the price increases 10%, what happens to sales?”

3.  To help create the future For example, asking people help design a new snack food.

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   8  

Cadbury Creme Egg

Very popular UK-focused confectionary Typically on sale between January and Easter*

– *Christian festival that usually falls in late March or early to mid April – often celebrated with chocolate.

In the UK, 200 million are sold between January and Easter – to a population of about 66 million people

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   9  

Creme Egg TV Ad

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   10  

hTps://www.youtube.com/watch?v=mNhs0OTMBRw  

Cadbury Creme Egg – Japan?

What might Cadbury want to know? 1.  Who might eat this product? 2.  Who might buy this product? 3.  What might they pay for it? 4.  What sort of uses?

–  Gift, everyday, treat? 5.  Where would people want to buy it from? 6.  When would they want to buy it? Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   11  

Typical Market Research Approaches

•  Surveys •  Focus groups (face-to-face and online) •  Depth interviews •  Desk research •  Mystery shopping •  Social media research •  Customer data research •  Media monitoring •  Other, e.g. semiotics, ethnography, neuroscience, A/B

testing

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Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   13  

ESOMAR  Global  Market  Research  2014  Data  =  2013,  shi^  from  2012  in  brackets  

Figures  $millions,  USD  Total  =  $40  billion  

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   14  

ESOMAR  Global  Market  Research  2014  Data  =  2013,  shi^  from  2012  in  brackets  Total  $40  billion  

Manufacturing:  Consumer  non-­‐durables  23%  Pharmaceu/cal  12%  Automo/ve  4%  Durables  3%  Other  2%  

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   15  

ESOMAR  Global  Market  Research  2014  Data  =  2013,  shi^  from  2012  in  brackets  Total  =  $40  billion  

Quant  How  many  people  in  this  room  are  married?  

Qual  What  do  we  mean  by  the  phrase  “Happy  marriage”?  

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   16  

ESOMAR  Global  Market  Research  2014  Data  =  2013,  shi^  from  2012  in  brackets  Total  =  $40  billion  

Size of Market Research Sectors

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Rank   Country   $  Billions  1   USA   15.0  2   United  Kingdom   5.1  3   Germany   3.5  4   France   2.7  5   Japan   1.8  6   China   1.7  10   Australia   0.7  16   South  Korea   0.4  16   India   0.3  

ESOMAR  Global  Market  Research  2014  Data  =  2013.  Total  =  $40  billion  (USD)  

The Main Uses of Market Research

1.  To create explanations

2.  To predict the future

3.  To help create the future

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   18  

Quantitative Research - Quant Focused on numbers

– How many people have a smartphone? – How many times a day do people use their

smartphone? – What brand of smartphone is most popular? – Which smartphone is the easiest to use? – Which smartphone has the best technology? – What would you pay for a new smartphone?

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   19  

The  most  common  way  to  conduct  a  quan/ta/ve  study  is  via  surveys  

National Readership Survey

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   20  

hTp://www.nrs.co.uk/nrs-­‐print/methodology/interview/  

Qualitative Research - Qual Meaning Feeling

Understanding

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   21  

Focus  Group  Depth  interview  Telephone  depth  interview  Online  focus  group  Online  discussion  Accompanied  shop  Pairs  Triads  Ethnography  

hTps://youtu.be/j_cUnlQl29Q  

Focus Group

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   22  

NPD and Market Research

Gaps   • Usage  &  Antude  

Ideas   •  Focus  Groups  

Predic:ons   • Concept  Test  

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   23  

Beyond Surveys and Focus Groups

Quant – Transactional data – Passive monitoring – A/B experiments – Social media

Qual – Online discussions – Ethnography – Social media

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Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   25  

Google  Trends  

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   26  

Google  Trends  Australia  Year  on  Year  “Biscuits”  

Anzac  Biscuits  ?  

Nivea Black & White Clear

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   27  

hTps://www.youtube.com/watch?v=yol6h-­‐3nbTc  

Overview of Market Research

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   28  

Key Players in the Market Research Process

•  Customer •  Internal Client •  Insight Manager •  Research Agency •  Fieldwork Companies •  Interviewers •  Recruiters •  Data Processing

•  Reporting and Infographics

•  Focus Group Facilities •  Platform Providers •  Software Providers •  Coding •  Transcription •  Translation

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   29  

Marketing or Market Research?

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   30  

Marke:ng  Research  More  USA  More  academic  

Market  Research  More  UK  

More  business  

From Data to Impact Via Insight

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   31  

4 Key Points of Client / Agency Tension

1.  Reliability of the research 2.  Speed / timing 3.  Budget 4.  Context

–  How does the research fit into the wider business needs?

–  Does the researcher understand the business and its objectives

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   32  

Scoping/Designing Research Projects

1.  Business objectives 2.  Research objectives 3.  Research methods 4.  Details and logistics 5.  The project 6.  Analysis -> Findings -> Insight

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   33  

Insight? •  Lots of definitions •  Some people use it for anything

discovered •  Some use it for anything the client says is

an insight •  My suggestion:

– Something that provides a generalisable understanding

– Something that supports action

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The Penny Farthing

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Why  was  the  wheel  so  big  on  the  Penny  Farthing?  

1  turn  of  the  pedals  =  1  turn  of  the  front  wheel.    

100  turns  a  minute  is  preTy  fast.  

If  the  front  wheel  is  0.7  metre  across,  then  1  turn  =  0.7  *  π  metres  (2.2  metres).  

100  turns  a  minute  =  220  metres  a  minute  =  13  kmh  .  

If  the  diameter  is  1.5  metres  then  the  distance  travelled  =  1.5  *  π  *  100  *  60  =  28  kmh  World  record  for  1  hour,  set  in  1891,  38KM  

When  gears  invented,  the  front  wheel  became  smaller  

4 Things a Clients Want from Presentations

•  Separate the analysis from the presentation

•  Tell a story, don’t deliver a waterfall •  Think like a journalist •  Do it in a compelling way

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   36  

“Tell  me  and  I  will  forget.  Show  me  and  I  will  remember.  Involve  me  and  I  will  understand.”  

Storytelling

Ethics, Codes, & Guidelines

Why? 1.  To exercise self-regulation, rather than external

regulation.

2.  To help buyers tell the difference between good and bad research.

3.  To offer guarantees to anybody taking part in market research.

4.  To guide market researchers towards best practice.

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The Big Picture 1.  Focusing on customers we help organisations

make better decisions 2.  We

– Create explanations – Make predictions – Help create the future

3.  We draw on the social sciences (& other disciplines) and use quantitative and qualitative approaches

4.  There is more to us than just surveys and focus groups

5.  Data is an input, insight and action are outputs Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   38  

Your Key Takeaways and Questions?

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   39  

Before Next Lesson

1.  Read chapter 2 of Answers to Contemporary Market Research Questions

2.  Look at the Focus Group video and think about what the discussion is revealing that a survey might not have done.

3.  Complete my survey via http://newmr.org/saitama-2015

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   40  

Quiz Lesson 1

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   41  

Q1  What  is  the  MAIN  role  of  market  research?    Select  one  answer  1  ☐  To  discover  which  products  people  want  2  ☐  To  give  customers  what  they  want  3  ☐  To  help  businesses  make  beTer  decisions  4  ☐  To  op/mise  product  design    Q2  What  is  the  MAIN  focus  of  market  research?    Select  one  answer  1  ☐  Customers  2  ☐  Electors  3  ☐  Employees  4  ☐  Academics    Q3  What  type  of  research  is  a  Focus  Group?    Select  one  answer  1  ☐  Quan/ta/ve  2  ☐  Qualita/ve  3  ☐  Automated  4  ☐  Induc/ve  

Website for Resources

Ray  Poynter,  Marke/ng  Research  &  Social  Communica/on,  2015   42  

hTp://newmr.org/saitama-­‐2015/