Market Research: Purpose, Methodologies, and Consumer Insights - PDF

Market research Created @February 11, 2025 2:44 PM Tags 1. Purpose of Market Research Definition: Marketing research helps businesses understand consumer behaviour, market trends, and competitors, aiding in informed decision-ma...

Market research Created @February 11, 2025 2:44 PM Tags 1. Purpose of Market Research Definition: Marketing research helps businesses understand consumer behaviour, market trends, and competitors, aiding in informed decision-making. What does it do? Provides insights into consumer preferences, brand perceptions, and potential market opportunities. Keeps organizations competitive by offering data-driven perspectives. Formal Definition: Marketing research helps companies advance their goals by: 1. Collecting and analyzing data, information, and insights related to society, markets, consumers, or customers. 2. Suggesting actions based on the insights gathered. 3. Actively engaging in applying these insights within the organization. 2. Why Marketing Research? Need for Consumer-Centric Decisions: Marketing research helps companies gain deep insights into consumer preferences, improving marketing strategies and product offerings. Informed Decision-Making: Provides evidence-based guidance, reducing reliance on assumptions or intuition. Market research 1  Real-Time Data: Digital platforms and Big Data allow businesses to gather and analyze vast amounts of real-time data from consumer interactions. 3. What is Marketing Research? Definition Based on Objectives: A systematic process of collecting, analyzing, and interpreting data to solve marketing problems and identify opportunities. Definition Based on Activities: MR Involves: 1. Identifying the problem. 2. Designing research methodology. 3. Collecting data. 4. Analyzing and disseminating findings. Definition Based on Purpose: MR deals with: Exploratory Research (exploring new issues). Descriptive Research (describing a situation). Predictive Research (forecasting future outcomes). 4. Consumer-Centric Organizations Strategic Role of MR: Successful companies are consumer-centric, making decisions based on solid consumer insights. Research findings should play a strategic role, but often are overlooked, resulting in failed product launches. Market research 2  To ensure Consumer-Centricity: 1. Establish a structure where marketing insights are integral. 2. Ensure marketing research leads strategic business decisions. 3. Present compelling stories with research to drive impact. 5. The Need for Consumer Insights in Strategic Decisions Consumer Needs at the Core: Decisions related to portfolio, brand strategy, innovation, and customer experience should be driven by consumer needs. Elevating MR: Marketing research must be integrated into strategic planning, with senior leadership playing a key role. Building a Strategic MR Team: Work across departments. Own customer satisfaction and loyalty programs. Form strong alliances and provide meaningful career paths. 6. A Strategic Insights Partner Importance of Personal Impact: Market research professionals must act as strategic partners to ensure their insights are impactful and listened to. Behavior of a Strategic Insights Partner: Reliability: Build credibility by meeting deadlines and keeping promises. Emotional Connection: Show empathy and courage in providing recommendations, even when they challenge existing beliefs. Courage: Make data-driven recommendations that challenge assumptions. Empathy: Understand the client’s perspective to make actionable, considerate recommendations. Market research 3  Empathy map: 7. The Engagement Impact Model Researchers often overwhelm clients with data, making it hard to derive actionable insights. To create a Powerful Story: Focus on a clear structure, relevant insights, and creativity. Avoid lengthy reports and focus on actionable insights. Predicting the impact of recommendations can be difficult but essential for guiding decisions. 8. Research Methodologies There are 2 Types of Research: -Qualitative -Quantitative Foundational Research: Essential for understanding consumer behavior and gathering insights. Market research 4  9. Market Research Process Steps in Conducting Research: 1. Define the market research problem based on this: 2. Develop research proposals and methodologies. 3. Collect data. 4. Analyze data and report findings. 10. Trends in the Marketing Research Industry Analytics Trend: Rise of Analytics: Companies are leveraging advanced analytics and data modeling to extract insights from Big Data. Big Data: Increasing volume, velocity, and variety of data sources such as social media, IoT devices, and transaction histories. Characteristics of Big Data: Volume: Massive amounts of data. Variety: Diverse sources (e.g., surveys, customer data, social media). Velocity: Continuous generation of real-time data. Market research 5  Impact: Big Data is reshaping research methods, offering real-time analysis and an alternative to traditional surveys. Stretching the Marketing Research Budget Trend: Budget Constraints: Companies aim to maximize value by using DIY platforms and focusing on key performance indicators (KPIs). Automating the Process: Insight dashboards are automating data delivery to ensure up-to-date access to key metrics. Mobile and Video Technology: Emerging Tools: Mobile data collection and video tools are integral for understanding consumer behavior and motivations. Behavioral Economics: Psychology and Economics: Understanding consumer behavior through psychological and economic lenses is becoming more important in shaping marketing strategies. Neuroscience and Neuro-Marketing: Tools: Brainwave measurement, eye-tracking, and other neuroscience tools provide deeper insights into subconscious consumer reactions. Applications: Tools help assess advertising effectiveness, priming, and consumer engagement. Advisory Services Trend: Rising Demand: More firms are seeking advisory services that combine research with strategic insights to drive better decision-making. Shift from Traditional Research: Consultancy firms are gaining market share by offering end-to-end services like database management and insight activation. 11. External Disruptions and Their Impact Market research 6  Technology and Consumer Behavior: Technological advances and shifts in consumer behavior (e.g., mobile-first) are disrupting traditional research. Urgency for Real-Time Insights: There’s a growing need for agile, quick insights that guide immediate business decisions. Shift from Strategic to Tactical Research: Companies are focusing more on short-term, sales-focused studies than long-term strategic research. Transition to Online Research: Virtual platforms for research (e.g., ideation workshops, focus groups) have become more prominent during social distancing measures. Reduction in Research Budgets: Many companies are cutting research budgets, leading to layoffs in research firms. Long-Term Impact on the Research Industry: Post-COVID, the research industry is shifting toward more agile, digital, and cost-effective methods. 1. Introduction to Market Research (MR) Defining the MR problem is crucial for effective research. Cooperation with MR suppliers enhances the quality and effectiveness of research. The focus is on understanding the MR process, business problems, MR hypothesis, and research briefs. Market research 7  2. Market Research Process & Steps Understanding the Marketing Research Problem → Business Problem vs. Marketing Research Problem: The research problem often relates to a specific aspect of the broader business problem, requiring empirical data for resolution. There are Two Types of Business Problems: Specific Problems: Clear and well-defined, like testing consumer interest for a new product. Broad Problems: Less defined, such as addressing declining sales, requiring varied research approaches. Clearly defining the problem ensures that the research methodology aligns appropriately with the needs. Avoiding the “Solution Trap”: Prematurely offering a solution to broad problems without sufficient understanding can waste resources. Key questions include: -What is known? -What hypotheses exist? -What decisions can stakeholders make? Framing the Research Problem The MR problem should focus on actionable questions (ex: consumer preferences or market opportunities) Hypotheses & Issue Trees: Market research 8  Hypotheses predict potential outcomes Issue trees help clarify complex problems and involve stakeholders, encouraging diverse thinking, they break down problems to guide research. Importance of Hypotheses Hypotheses are preliminary assumptions that can be tested through research. Hypothesis-driven research streamlines data collection, identifies dead-ends, and aligns stakeholders around a common goal. Using Issue Trees for Clarity Issue trees offer a visual breakdown of problems, helping to clarify broad questions and organize complex inquiries. Example: LinkedIn used an issue tree to analyze declining sales, exploring causes like customer budgets or reduced acquisition rates. An Effective Hypotheses should: describe causal relationships, be actionable, testable, and cover critical aspects of the problem help refine research direction and evaluate strategies effectively Definition- Divergent Thinking: Generates creative ideas through free-flowing brainstorming. Definition- Convergent Thinking: Narrows ideas using logical steps to select the most relevant options. Both are necessary to avoid complexity and structure research effectively. Developing the Right Research Questions Once hypotheses are identified, focus on testing questions that resolve the core problem. Questions should be clear, measurable, and tied directly to the Market research 9  hypothesis. Data Collection and Analysis Data Collection Techniques: Methods like interviews, surveys, or observation are used depending on the research approach. Data Analysis: Data is analysed through statistical methods, trend identification, and hypothesis testing. Request for Proposal (RFP) and Proposals RFP Development: Clients create RFPs to communicate research needs, including background information, objectives, and expectations - Key sections of an RFP include company background, research objectives, methodology, deliverables, budget, and timeline. RFP Review and Supplier Selection Proposal Evaluation: Research suppliers submit proposals with methodology, timelines, costs, and expected outcomes, which the client evaluates to choose the best supplier. Supplier-Side Proposal Preparation: Suppliers must identify client needs, propose appropriate research methodologies, and provide detailed pricing and timing estimates. Clients evaluate proposals based on how well they address business issues, the supplier’s reputation, and cost. The supplier offering the best value is selected for the project. Data Collection, Analysis, Interpretation, and Presentation of Findings Reporting and Communicating Findings: Findings should be presented clearly with actionable insights and supporting recommendations. Feedback and Refinement Market research 10  After delivering the findings, feedback from clients helps assess the effectiveness of the research. Refining the methodology based on feedback leads to continuous improvement in future projects. Final Thoughts on the Research Process Marketing research is an iterative process, with each study potentially leading to new questions and areas for further exploration. Ongoing improvements in research methods, technology, and data sources benefit both clients and suppliers, leading to more effective research outcomes. 3.2 Quality of Deliverables Translating Results into Actions: At the start of the project, an agreement should be made between the client and the marketing researcher about how results will be delivered (format). Deliverables are created after data collection and analysis and should be shared with internal clients and other stakeholders. Types of Deliverables: PowerPoint presentations with tables and deeper analyses (e.g., bivariate and multivariate analysis). Insights presented via email, also highlighted in PPT. Detailed results in Excel files (especially for segmentation studies). Interactive decision-support tools. Key Considerations for Deliverables: Extract insights from raw data and analyses. Ensure internal clients and stakeholders are aware of these results and understand them. Market research 11  Build credibility in the insights, ensuring they are trusted. Weave data, analysis, and insights into a compelling, memorable story that inspires action. 3.2.1 Extracting Insights Challenges in Reporting: Executives often find detailed reports overwhelming and hard to navigate. Affective marketing research reports need to highlight key insights clearly and promptly, focusing on actionable takeaways. The Role of Tension in Insights: An insight creates “tension” by identifying a consumer problem that needs solving. (Examples of insights include statements framed as: “I [current situation], but [aspiration], therefore [problem].”) Consumer Insight Framework: Insights should explain customer choices and needs. These insights have the potential to drive innovation by explaining why customers make decisions. Example: Knowing why consumers choose a lower-calorie chocolate option over a regular one reveals unmet needs that can lead to innovation. Causality in Insights: Insights should identify causal relationships between factors rather than just correlational data (e.g., sales of ice cream and forest fires may correlate but don’t have a direct cause-and-effect link). To drive business innovation, it’s crucial to understand the cause behind customer behavior, not just surface-level data. Characteristics of Insights: Value: Some insights have major financial implications, while others are smaller but still valuable. Market research 12  Specificity: Insights can be very specific, suggesting clear actions, or broader, requiring more flexible strategies. Validation: Insights need to be tested and validated; acting on them without validation can lead to missed opportunities or failures. Malleability: Insights can evolve over time as contexts change. They should be adaptable and able to be refined. 3.2.2 Making the Results and Insights Easy to Find Client vs. Stakeholder Communication: Clients who commission research are in direct contact with the research team, making results easier to access. However, other stakeholders may not have such direct involvement. Ways to Share Insights with Stakeholders: Internal Emails: Inform stakeholders of research completion and highlight key insights. Marketing Research Portal: A central online repository for all research materials (e.g., questionnaires, raw data). This needs to be organized to avoid overwhelming users. Stakeholder Communication Strategy: Develop a strategy that includes one-on- one meetings, group sessions, and broad communications like monthly email summaries of key insights across departments. Effective Communication in Research: Regular Updates - Proactive Communication: Using a digest format ensures that stakeholders are aware of major findings and can take action. 3.2.3 Perceived Credibility of the Results Market research 13  Information Usage Risk: Decision-makers are hesitant to act on research findings due to the perceived risk of acting on flawed recommendations. Explaining sample size, composition, and analysis methods ensures credibility. Methodological Transparency: Include detailed methodology (e.g., sampling approach, data cleaning) in the appendix of the report 3.3.1 Creating an Inspiring Story The Importance of Storytelling: Structuring research results as a compelling story helps engage the client and make the insights more memorable. Challenges in Report Writing: A common problem is overloading reports with too much data, which can make it hard to find key insights. Prioritize critical insights and keep the report concise to increase client engagement. 3.3.2 Structure: The Pyramid Principle The Pyramid Principle: Developed by Barbara Minto, this principle suggests starting with the key message at the top of the report (the “pyramid”). Supporting insights are placed below it, followed by sub-insights to ensure clarity and flow. Creating an Effective Story: Prioritize Key Data: Select only the most essential data to support your insights; less important data should go to the appendix to avoid overwhelming Market research 14  the reader. Focus on the most impactful hypotheses tested during the research. The Rule of Three: Aim for three main insights to guide the structure of the story. Pyramid Structure: Start with the main recommendation or answer at the top, followed by supporting insights, each backed by research findings. Any extra details go into the appendix. 3.3.3 Contextual Insights Use Contextual Data: Supplement your insights with relevant data from external sources like competitive analysis, market shares, and trend data. “Living the Brand”: To gather contextual insights, observe competitors, check product shelves, engage with ads, and use the product yourself. Integrating Contextual Data: Use contextual data to strengthen the story—set up your business problem using financial or competitive data, and enhance your insights with market trends or firsthand product experiences. 3.3.4 Inspiring Action Tension: Create urgency by showing the gap between the current situation and where the company needs to go. Relatability: Make the insights relatable to the audience by connecting them to familiar situations or challenges. Highlight similarities with known examples or past successes. Novelty: Highlight new insights that disrupt the current understanding. Our brains pay attention to novel information, so focus on fresh, valuable insights to grab attention. Market research 15  Fluency: Write in simple, clear language at a 4th-grade reading level. Short, easy-to-understand sentences ensure that the report is accessible and keeps the audience engaged. Using Emotion: Engage your audience by adding an emotional element to the presentation. Create memorable experiences, like interactive reports or creative delivery formats, to ensure the insights are not only understood but also felt by the stakeholders. Recommendations and Power Page Insights vs Recommendations: Insights = objective, data-driven conclusions from research. Recommendations = subjective interpretations based on insights, which may be challenged by clients who have more background knowledge. Power Page Structure: Key Elements: 1. A picture of the framework or key insight that drove your thinking. 2. A numbered list of two to four recommendations (mutually exclusive and collectively exhaustive - ECE). 3. A graph summarizing the expected financial impact of each recommendation. Hypothetical Monetary Impact: Example: Predicting the market impact of a product extension based on market size and estimated share. Provide clear assumptions to back up predictions (e.g., 25% market share). Be ready to adjust calculations based on client feedback. Executive Summary Purpose: provides a concise overview of the main findings, answering the “so what” and “now what” of the report. Market research 16  Should be written first and reworked multiple times to ensure clarity. Structure: Bullet Points: 1. Headline clearly stating the main recommendation. 2. Supporting data points in sub-bullets. Clarity: Use minimal words and avoid wrapping lines. Structure using the “exit principle” (state the key message first). Keep sentences concise and avoid clutter. Improving Readability: Visual aids (e.g., chevrons) help organize and present findings quickly. Audience- specific tailoring of the executive summary is key to effective communication. Attention to Detail Design Principles: Ensure professional formatting (e.g., color, fonts, and alignment). Maximize white space on slides to enhance clarity. Use visuals (pictures, flags, maps) to make slides more engaging. Titles should be action-oriented headlines. Data Presentation: Present data visually, avoiding excessive tables and bar charts. Sort charts for clear patterns and easy comprehension. Ensure all visuals and graphics are relevant to the client. Slide Simplicity: Present one insight per page. Avoid long titles and use page numbers for easy reference. Advisor Credibility Qualities Affecting Communication Effectiveness: Market research 17  Expertise: Higher expertise leads to greater acceptance of insights and recommendations. Confidence: Confident delivery enhances the likelihood of acceptance. Similarity: Perceived similarity between the messenger and receiver fosters trust. The presenter’s credibility (ethos), emotional connection (pathos) and logical argument (logos) are crucial in ensuring the success of the message. Chapter 4 1. Importance of Market Research Definition and Purpose: Market research is essential for understanding consumer behavior and identifying market trends. It helps businesses make informed decisions about product development, marketing strategies, and brand positioning. 2. Understanding Consumer Behavior Usage & Attitude (U&A) Research: Focuses on how consumers use products and their attitudes towards them. Provides insights into consumer needs and unmet demands. 3. Qualitative and Quantitative Research Methods Qualitative Research: Methods: Focus Group Interviews (FGI), Individual Depth Interviews (IDI), ethnography, and social listening. Market research 18  Purpose: Gather in-depth insights into consumer attitudes and behaviors. Quantitative Research: Methods: Surveys, experiments, and analysis of transactional data. Purpose: Provides statistical data to identify trends and patterns. 4. Defining the Target Group Importance of Targeting: Clearly defining the target group is crucial for effective market research. The target group should be specific, aligned with research objectives, and easily identifiable. Research Objectives: Understanding who to talk to and what information is needed helps streamline the research process. 5. Ethical Considerations Privacy and Ethics: Respecting participant privacy and ensuring data is collected and used responsibly. Importance of Transparency: Transparency about research methods and data usage builds trust with participants and stakeholders. 6. Marketing Research Data Market research 19  External vs. Internal Data: Internal Data: Collected as a byproduct of operations (e.g., sales data, customer complaints, service calls). External Data: Marketing research reports (surveys, focus groups, experiments). Syndicated commercial research reports (paid data). Free syndicated data or scraped data from the internet. Public data (demographics, economic trends, regulations, unsolicited brand feedback). Levels of Aggregation: Individual-Level Data: Collected from individual respondents (e.g., survey data). Aggregate-Level Data: Combines individual data into groups (e.g., store sales without individual customer details). Cross-Sectional vs. Longitudinal vs. Time-Series Data: Cross-Sectional Data: Collected at one point in time (e.g., one-time surveys). Longitudinal Data: Collected over time from the same sample (e.g., repeated interviews). Time-Series Data: Collected at consistent intervals over a period (e.g., daily sales data over a year). Hard Data vs. Soft Data: Hard Data: Quantitative metrics that are objective (e.g., sales figures, temperature). Soft Data: Qualitative data that may be subjective (e.g., consumer attitudes, brand perceptions). Market research 20  Measurement Scales: Nominal Scale: Labels or categorizes without quantitative value (e.g., gender, country). Ordinal Scale: Data with a meaningful order but no measurable differences (e.g., satisfaction ratings). Interval Scale: Numeric data with meaningful intervals, but no true zero (e.g., temperature). Ratio Scale: Data with a true zero, allowing full mathematical operations (e.g., height, age). Market Research in Branding - Key Areas in Branding Research: Brand Equity Research: Assessing brand strength and consumer perception over time. Based on primary quantitative research (e.g., consumer-based equity scores). Tracks brand health and strength compared to competitors. Brand Funnel Research: Measures brand awareness, consideration, purchase, and loyalty. Based on primary quantitative research. Brand Positioning Research: Identifies competitive advantages, customer needs, and brand relevance. Uses correspondence analysis for deeper insights. Brand Tracking Research: Regular monitoring of brand performance against competitors. Tracks metrics like brand equity, funnel performance, and brand image. Market research 21  Brand Architecture Research: Understanding relationships between parent brands and sub-brands. Helps optimize brand portfolios. Brand Mental Networks: Measures brand perception, image strength, unique associations, sentiment, and brand assets. Typical Research Questions in Branding How does brand perception align with company objectives? What are the drivers of consumer choices and brand loyalty? What is the impact of marketing efforts on brand performance? Structured vs. Unstructured Data Structured Data: Organized with predefined formats (e.g., survey responses). Unstructured Data: Free-form text requiring cleaning/preprocessing (e.g., social media comments). Operational Data Types of Operational Data: Scanner Data: Captures detailed sales transactions. Unstructured Online Data: Scraped from social media or websites. Consumer Interest Tracking: Data like Google search trends. Clickstream Data: Tracks online navigation behavior. Ethnographic Data: Observations of consumer behavior in natural settings. RFID Data: Tracks products, shipments, or consumer behavior via RFID tags. Market research 22  Big Data Characteristics Size: Massive data volume exceeding traditional methods (e.g., social media activity). Variety: Diverse data types (structured, unstructured, video, audio, IoT). Velocity: Real-time data generation (e.g., Twitter streams). Veracity: Ensuring data accuracy and reliability. Key Differences Between Qualitative and Quantitative Research Qualitative Research: Focuses on reasons, motivations, and attitudes with smaller sample sizes. Quantitative Research: Focuses on measurable data with larger sample sizes. Common Qualitative Research Approaches 1. Focus Groups: Small groups discuss products/issues. 2. Individual Depth Interviews: Suitable for sensitive topics. 3. Laddering Technique: Explores connections between product features and values. 4. Ethnographic Research: Immersion in consumer environments. 5. Social Listening and Online Communities: Observational methods for fast feedback. 6. Surveys: Efficient for collecting large amounts of structured data. 7. Transactional Data: Tracks consumer behavior through sales data. 8. Experiments: Controlled tests for cause-and-effect relationships. 9. Data Integration & Analysis: Combines qualitative and quantitative data for deeper insights. 10. Data Management & Quality: Ensures accurate and ready-to-use data. Market research 23  Chapter 6 6.2 Product Research Overview of Product Development Frameworks Ansoff Matrix: A strategic tool to classify products into four growth types: Market Penetration: Increase market share of existing products in existing markets (e.g., pricing, promotion strategies). Market Development: Expand existing products to new markets (e.g., geographies, demographics). Product Development: Create new products for existing markets. Diversification: High-risk strategy involving new products and markets (e.g., LinkedIn acquiring Lynda). Three-Horizon Framework: Balances immediate, short-term actions with long-term innovations. The Product Development Life Cycle Stages: 1. Idea generation 2. concept development 3. production 4. launch. Uncovering Customer Needs and Wants Identify unmet needs and pain points. Understand underserved customer segments. Market research 24  The process includes: Divergent thinking to generate ideas. Convergence to narrow down solutions. Collaboration across design, engineering, marketing, and data teams is essential. Motivational Conditions and Consumer Needs Motivations drive behavior (e.g., solving problems, sensory enjoyment). Methods: Qualitative techniques (focus groups, interviews, online communities). Means-End Chain: Explores how attributes lead to benefits and values. Summary of Product and Concept Development Approaches 1. Outcome-Driven Innovation (ODI): Understand consumer “jobs” products perform. Steps: Qualitative (identify jobs) and quantitative (evaluate importance/satisfaction). 2. Laddering Approach: Uncover motivations for brand choices. Steps: Identify attributes. Determine preferred levels. Explore deeper values (e.g., security, accomplishment). 3. Idea and Concept Generation: Sources: Internal brainstorming, market research. Market research 25  Methods: Qualitative: Focus groups, ethnography, social listening. Quantitative: Surveys, segmentation studies. Double Diamond Approach: Divergence (exploring solutions) and convergence (narrowing options). Product Development and Concept Testing SUMMARY: 1. Idea and Concept Screening Identify pain points. Create minimal viable product (MVP). Use customer evaluations to narrow ideas. 2. Concept Development Refine concepts with key features, benefits, and visuals. Gather qualitative feedback through focus groups or interviews. 3. Concept Testing Evaluate with larger samples. Use surveys to assess relevance, uniqueness, purchase intent. 4. Digital Experimentation (A/B Testing) Test features with randomized exposure. Analyze engagement metrics. 5. Forecasting and Market Insights Use databases and modeling for sales projections. Market research 26  6. Speed to Market vs. Rigor Balance rapid launches with adequate testing. 7. B2B Product Testing Use interviews to validate functionality, fit, and MVP needs. 8. Market Sizing Assess TAM, SAM, and target market through research. 9. Experimentation and Customer Trust Avoid eroding trust with poor user education. 6.3 Advertising Research for Product Re-launch The AIDA Model Stages: 1. Attention: Gaining product awareness. 2. Interest: Creating curiosity. 3. Desire: Developing preference. 4. Action: Driving purchase. Modern marketing adapts to non-linear consumer behavior. Advertising Objectives and Metrics Objectives: Awareness, consideration Chapter 7 Market research 27  7.2 Understanding Usage and Attitude (U&A) Studies Purpose of U&A Studies Conducted to better understand a product category and identify growth opportunities. Helps answer key questions about competitors, consumers, and the market to guide: New product creation Targeted marketing Precise brand positioning Types of Questions in U&A Studies Typical U&A Questions Include: Who are the competitors? Who is using the product and why? What are the behaviors and attitudes of consumers regarding the category and brand? Insights Derived: Identifying unmet consumer needs. Overcoming purchase barriers. Improving brand image. Structure of a Typical U&A Study Survey Components: Screener questions, behavioural questions, brand usage and perception, attribute importance and demographics and media usage questions Screener Questions: Identify the target audience. Behavioral Questions: Frequency and reasons for category usage. Market research 28  Brand Usage & Perception: Consumer awareness, attitudes, and perceptions. Attribute Importance: Identify key product features for consumers (e.g., price, quality). Demographics & Media Usage: Segmenting based on age, income, and media habits. U&A Example in Skincare Study focused on female consumers: Skin perception. Attitudes toward skincare attributes (e.g., radiance, vitality). Result: Emotional and functional benefits were prioritized for product selection. Surveys vs. Diaries in U&A Studies Surveys: Can be lengthy and reliant on memory recall, leading to inaccuracies. Diaries: Real-time data logging reduces recall bias. Challenge: Respondents may not complete tasks, reducing sample sizes. Advantages of Diaries Over Recall: Accurate, real-time consumption data. Mobile apps improve ease and reliability. Importance of Sampling and Accuracy Accuracy in measuring actual usage is critical. Sample size must be nationally representative to reflect broader populations accurately. Market research 29  SUMMARY of Market Segmentation and Research Analysis: Data Analysis Process Key Steps: Start with identifying key insights from datasets. Build a compelling story for stakeholders before creating slides. Objective: Find meaningful insights instead of translating data into raw PowerPoint tables. Segmentation vs. U&A Research Market Segmentation: Assumes consumer heterogeneity. Focuses on identifying distinct groups with different needs or behaviors. U&A Research: Explores attitudes and behaviors across the entire market. Customization vs. Efficiency Key Challenge: Balancing customized products (higher costs) vs. mass production (greater efficiency). Solution: Market segmentation targets groups with similar needs, optimizing profitability. Segmentation Research Approach Segmentation Groups: Based on shared characteristics such as needs, behaviors, attitudes, or demographics. Common Strategies: Need-Based: Product quality or price preferences. Behavioral: Usage patterns or benefits sought. Market research 30  Attitudinal: Lifestyle, values, and opinions. Demographic: Age, income, or company size. Occasion-Based: Usage tied to specific events or situations. Example Applications: Demographic Segmentation: Target marketing campaigns. Attitudinal Segmentation: Develop effective advertising. Needs-Based Segmentation: Ideal for new product development. Practical Applications Multiple segmentation strategies may be combined for comprehensive insights. Examples: Category Growth: Uncover unmet needs (e.g., luxury chocolate for indulgence). Brand Strategy: Optimize portfolios based on consumer segments. Product Development: Create products tailored to specific target groups. Pricing Strategy: Airlines tailor prices for business vs. leisure travelers. Media/Communication: Beauty brands focus on YouTube/TikTok for Gen Z. Channel Optimization: Identify relevant platforms for engaging segments. Challenges of Segmentation Studies Stakeholder Familiarity: Lack of understanding can complicate implementation. Unstructured Process: No universal guidelines for evaluation. Resource Intensive: Developing tailored value propositions requires significant investment. Steps in Segmentation Marketing Research 1. Stakeholder Interviews: Understand how segmentation insights will be used. 2. Study Design & Data Collection: Combine qualitative research (e.g., focus groups) with surveys. Market research 31  Include questions on attitudes, behaviors, needs, and brand perceptions. 3. Data Collection: Use large samples (800-1,000 respondents). 4. Segmentation Analysis: Identify distinct groups and evaluate their relevance. 5. Typing Tool Development: Predict segment membership and integrate insights into strategy. 6. Activation: Apply findings across marketing efforts (product, pricing, media). Design Considerations for Segmentation Studies Sample Size: Sufficient size ensures segment representation. Data Quality: Address quotas for underrepresented groups early. Analysis Techniques: Methods include K-means clustering, hierarchical analysis, etc. Segmentation Research Socialization Phase Goal: Ensure actionable insights. Key Steps: 1. Stakeholder Presentations: Use visuals to make segments tangible. 2. Embed Segmentation: Drive business decisions with insights (e.g., targeting new consumer bases). Market Structure Analysis Purpose: Understand competitors and consumer choices when a preferred product is unavailable. Methods: Qualitative: Group products by consumer perception. Quantitative: Use similarity analysis to group products based on preferences. AI in Market Structure Mapping AI Application: Analyze consumer conversations and map brand associations. Example: Ipsos mapped the pet food market using AI, identifying shifts before/after a crisis. Market research 32  This completes the restructuring into a Notion-friendly format. Let me know if you need adjustments! Chapter 8 Scope of Branding Research 1. Breadth of the Field: Branding encompasses numerous theories and models developed by organizations and scholars. Key theories: Law of Double Jeopardy Memory-based theories. Other important concepts include: Brand equity, brand funnel, brand positioning, brand architecture, and brand tracking. Key Concepts 1. Brand Equity: The value a brand adds to a product/service. Measurement: Composite score including emotional connection, relevance, and uniqueness. 2. Brand Funnel: Tracks consumer interaction with a brand: Stages: Awareness → Consideration → Purchase → Loyalty → Love. 3. Brand Associations and Positioning: Helps brands differentiate and remain relevant. Focus: Strategic market positioning. Market research 33  4. Brand Architecture: How sub-brands relate to the parent brand. Purpose: Manage value and positioning across a portfolio. 5. Brand Tracking: Monitors key metrics (e.g., brand equity, funnel metrics) over time. Theories of Branding 1. Law of Double Jeopardy (Macro Theory): Smaller Brands: Disadvantages: Fewer customers + lower purchase frequency. Larger Brands: Advantages: Familiarity bias and mere exposure effect. 2. Memory-Based Theories (Micro Theories): Episodic Memory: Emotional/personal experiences with a brand (e.g., Starbucks visit). Semantic Memory: Knowledge and associations about the brand (e.g., brand facts). Implicit Memory: Unconscious brand recognition via repeated exposure. Role of Brands in Society 1. Simplifying Decisions: Brands serve as mental shortcuts for consumers. Leverage familiarity and emotional connections for quicker choices. 2. Key Impacts: Brand Symbolism: Reflects consumer expectations and experiences. Market research 34  Brand Image: Creates emotional/functional connections. Brand Recognition: Keeps brands top-of-mind. Brand Association and Memory 1. Spreading Activation Theory: Memory operates as a network of associations (e.g., “coffee” → Starbucks). More associations = Easier recall and purchase likelihood. Neural evidence supports associative activation. 2. Implicit and Explicit Memory Systems: System 1 (Implicit): Automatic, emotional decisions (e.g., Heinz purchase). System 2 (Explicit): Conscious, rational decisions. -Emotional connections often outweigh rational factors. Brand Architecture and Framework 1. Brand Architecture: Manage multiple brands (e.g., Unilever, Google). Framework includes vision, mission, and target group alignment. 2. The Brand Key Framework (by Nileer) focuses on: Brand Essence: Core value proposition/DNA. Supportive Elements: Values, benefits, and unique offerings. Consumer Insight: Addressed need/problem. Competitive Environment: Competitor and category analysis. 3. Types of Brand Architecture: Branded House: Master brand equity flows into sub-brands (e.g., Apple). Market research 35  House of Brands: Independent brands (e.g., Unilever). Hybrid: Mix of both (e.g., Coca-Cola). EXAMPLE : LinkedIn Case Study 1. Brand Essence: Core: Empowering members’ professional lives. Categories: Job-seeking, networking, mentorship. 2. Brand Positioning: Focus: Diverse value proposition. Research: Insights from qualitative/quantitative methods (e.g., factor analysis). Measuring Brand Equity 1. Firm-Level Brand Equity: Revenue premium = Revenue difference between branded and unbranded products. 2. Consumer-Based Brand Equity (CBBE): Approaches: Attitudinal Equity: Relevance and closeness evaluations. Conjoint Analysis: Trade-offs between price and brand. Brand Funnel: Awareness → Purchase tracking. Brand Funnel and Insights 1. Brand Funnel Metrics: Awareness: Unaided (recall without prompts) vs. Aided (list-based recognition). Consideration: Likelihood of purchase. Preference and Purchase: Final stages in the funnel. Market research 36  2. Consumer Associations: Functional Attributes: Product quality, price, variety. Emotional Attributes: Feelings, nostalgia, brand personality. 3. Positioning Maps: Visual tools to evaluate brand positioning relative to competitors. 4. Brand Density: Quantifies strength of associations (e.g., indulgence vs. hunger relief for chocolates). Brand-Tracking Research 1. Purpose: Tracks performance and effectiveness of campaigns. Measures consumer perception shifts over time. 2. Design: Consistency: Research design, questions, and samples must remain unchanged. Frequency: Depends on goals (e.g., monthly for campaigns, biannual for repositioning). 3. Challenges: Costs of large-scale tracking. Need for agile, cost-effective methods. 4. Emerging Trends: Automation: Real-time dashboards for tracking brand attitudes. Social Media Integration: Insights from platforms like Facebook and Instagram. Emerging Market Trends 1. VUCA World: Volatility and unpredictability in consumer behaviors. Example: Blackberry’s decline. Market research 37  2. Insurgent Brands: Innovative challengers (e.g., Airbnb, Netflix). Use technology and social media to disrupt traditional brands. 3. Big Brand Responses: Adopting agile strategies. Acquiring insurgent brands to maintain competitiveness. Market research 38