Market Research

Marketing research
Market research is the collection and analysis of information about consumers,
competitors and the effectiveness of marketing programs.

Market research consists of testing the market to determine the acceptance of a

particular product or service, especially amongst different demographics. It is used
to establish which portion of the population will or does purchase a product, based
on age, gender, location, income level and many other variables. Market research
allows companies to learn more about past, current and potential customers,
including their specific likes and dislikes.

Based on market research data, businesses can develop a "target audience." A

target audience is a specific group of customers that has a distinct need or desire
for a product or service. Market research is used to determine how often the target
audience will buy a particular item, how much they are willing to pay for it, and their
overall satisfaction with it. By analyzing market research information, manufacturers
and service providers learn where to focus their resources most effectively.

Market research is a process of the systematic collection of data, about a particular

target market, competitors, customers, market trends, etc. The aim of market
research is to obtain an in-depth understanding of the particular subject. Rising
competition has compelled many organizations to conduct market research.
Organizations may conduct market research themselves, by appointing a team to
work on the same. Or else, they may get it done via a market research consultancy
or an agency. This research is vital for business organizations looking out for
opportunities to tap the market, for firms which have come up with an improvised
product and want to evaluate its demand and for companies planning to introduce
their products into the market. However, before conducting a market research, it's
vital to have the research objectives defined. Once the objectives have been
outlined, the research can be carried out in different ways.
There are two methods of conducting market research: primary research and
secondary research. The choice of the method depends on the research objectives.

Primary Research

In primary research, data is collected directly from the source. For example, if the
objective of the research is to understand the demand of a particular product, then
collecting feedback directly from the customer by talking to them, is called primary
research. Primary research involves the collection of crucial data via interviews,
surveys or focus group sessions. It's time-consuming and expensive. However, it is
suited for gathering specific data. Primary research can be further categorized into
the qualitative and the quantitative type.

Quantitative Primary Research: This type of primary research involves the

collection of numerical data via surveys. The most frequently used quantitative
technique is the 'market research survey'. The numerical or quantitative information
obtained is then statistically analyzed. Such surveys comprise questionnaires with
closed ended questions. In a close ended question, a respondent is needed to
answer by ticking one of the options given. People generally agree to cooperate,
when surveys are less time-consuming. For example, a bank may generate a
questionnaire, wherein its aim is to find out what people think of their services.
Numerous questions may be asked in the questionnaire and the answer options are
excellent, good, poor or very poor. This data obtained is analyzed statistically and a
conclusion is ascertained. The main rule followed, while conducting quantitative
research is that all the respondents should be given the same questionnaire with
the same set of questions. These quantitative surveys can be carried out, either
face to face (asking people on the street to fill them), email, telephone or by post
(self completion and posting it back).

Qualitative Primary Research: This type of research involves gathering data via
interviews or focus group sessions. In this type, open ended questions are included.
This means the questions cannot be answered with a yes or a no. They include in-
depth interviews, wherein a trained executive interviews one or more respondents.
The interviewer may carry out the interview on a one to one basis, with two, triad or
even 4-5 respondents. Such open ended interviews enable the researcher to receive
data about the likes-dislikes, requirements, positive-negative feedback, trends and
emotional motivators of the primary market. Unlike the quantitative type, this type
does not comprise a fixed set of questions. The interviewer may have a basic
framework of questions ready, however, the flow of the interview is impromptu. The
respondent has the freedom to express himself. This helps the interviewer
understand the situation better. Focus groups are another method of carrying out
qualitative research. These groups generally comprise 6-8 respondents, led by
experienced professionals (research moderators). The role of the professional is to
ask general, as well as specific questions, to the group of respondents. By
encouraging a discussion, they are to draw out the required information. However,
since focus groups require experienced professionals, it's an expensive technique.

Secondary Research

In secondary research, the analysis of information that has been collected for some
other purpose, is carried out. This means, that secondary research is carried out by
gathering data from sources such as government publications, libraries, internet,
magazines, chambers of commerce, etc. The data required may be in the form of
demographic or statistical data, set of articles or some studies. Firms can analyze
their target markets, evaluate competitors, assess social, political and economic
factors. Data for secondary research can be obtained from a variety of sources such
as:

Chambers of Commerce: Each local area comprises a chamber of commerce, which

possesses information about the local businesses and local community.

Business Information Centers: Small business firms can use such centers, as they
provide a large collection of books, videos, publications and other important
resource materials.

Trade Associations: Trade associations provide information on industry leaders, the

standards they observe, latest trends, competitors, etc.

Marketing Departments of Local Colleges: Firms can access special research projects
prepared by students.

Wholesalers and Manufacturers: Firms can obtain information from wholesalers and
manufacturers, regarding customer's likes and dislikes, complaints, costs, industry
standards, etc.

Magazines and Newspapers: Industry journals and newspapers are a great source of
crucial information. News events, latest news on politics, economic indicators, etc.
are helpful for firms in understanding the market and its trends.

Competitors: Conducting research on the products or services, prices, brochures,

marketing techniques, etc. helps firms understand how to augment their business.

Besides the above mentioned resources, firms can obtain data from libraries,
various books and publications, banks, insurance companies, real estate companies,
etc. As compared to primary research, secondary research is easier. It is less time-
consuming and not as expensive. However, the drawback of secondary research is
that the data may not be updated and may not be customized to suit the need of
the research. Since it involves the analysis of data collected by somebody else for a
different purpose, the analysis may not be accurate. For example, a firm
manufacturing leather bags can find out how many people buy their bags, using
secondary research. However, they can't determine the amount people are willing
to pay for their particular leather bag design.

For firms planning to introduce a new product or service, conducting market

research helps understand the customers attitude and preferences. It also
minimizes the risk of incurring losses in the business. A market research conducted
by either primary or secondary method is vital to any business and its objectives.

Role of marketing research (MR)

The task of marketing research (MR) is to provide management with relevant,

accurate, reliable, valid, and current information. Competitive marketing
environment and the ever-increasing costs attributed to poor decision making
require that marketing research provide sound information. Sound decisions are not
based on gut feeling, intuition, or even pure judgment.

Marketing managers make numerous strategic and tactical decisions in the process
of identifying and satisfying customer needs. They make decisions about potential
opportunities, target market selection, market segmentation, planning and
implementing marketing programs, marketing performance, and control. These
decisions are complicated by interactions between the controllable marketing
variables of product, pricing, promotion, and distribution. Further complications are
added by uncontrollable environmental factors such as general economic
conditions, technology, public policies and laws, political environment, competition,
and social and cultural changes. Another factor in this mix is the complexity
of consumers. Marketing research helps the marketing manager link the marketing
variables with the environment and the consumers. It helps remove some of the
uncertainty by providing relevant information about the marketing variables,
environment, and consumers. In the absence of relevant information, consumers'
response to marketing programs cannot be predicted reliably or accurately.
Ongoing marketing research programs provide information on controllable and non-
controllable factors and consumers; this information enhances the effectiveness of
decisions made by marketing managers.

Traditionally, marketing researchers were responsible for providing the

relevant information and marketing decisions were made by the managers.
However, the roles are changing and marketing researchers are becoming more
involved in decision making, whereas marketing managers are becoming more
involved with research. The role of marketing research in managerial decision
making is explained further using the framework of the "DECIDE" model:

The DECIDE model conceptualizes managerial decision making as a series of six

steps. The decision process begins by precisely defining the problem or opportunity,
along with the objectives and constraints. Next, the possible decision factors that
make up the alternative courses of action (controllable factors) and uncertainties
(uncontrollable factors) are enumerated. Then, relevant information on the
alternatives and possible outcomes is collected. The next step is to identify and
select the best alternative based on chosen criteria or measures of success. Then a
detailed plan to develop and implement the alternative selected is developed and
put into effect. Last, the outcome of the decision and the decision process itself
are evaluated.

Marketing research characteristics

Marketing research is systematic. Thus systematic planning is required at all the

stages of the marketing research process. The procedures followed at each stage
are methodologically sound, well documented, and, as much as possible, planned in
advance. Marketing research uses the scientific method in that data are collected
and analyzed to test prior notions or hypotheses. Experts in marketing research
have shown that studies featuring multiple and often competing hypotheses yield
more meaningful results than those featuring only one dominant hypothesis.

Marketing research is objective. It attempts to provide accurate information that

reflects a true state of affairs. It should be conducted impartially. While research is
always influenced by the researcher's research philosophy, it should be free from
the personal or political biases of the researcher or the management. Research
which is motivated by personal or political gain involves a breach of professional
standards. Such research is deliberately biased so as to result in predetermined
findings. The objective nature of marketing research underscores the importance of
ethical considerations. Also, researchers should always be objective with regard to
the selection of information to be featured in reference texts because such literature
should offer a comprehensive view on marketing. Research has shown, however,
that many marketing textbooks do not feature important principles in marketing
research.

Marketing research is often partitioned into two sets of categorical pairs, either by
target market:

 Consumer marketing research, and

 Business-to-business (B2B) marketing research

Or, alternatively, by methodological approach:

 Qualitative marketing research, and

 Quantitative marketing research
Consumer Market Research

Find out what audience feels, behaves and expects with consumer market research
surveys. By ascertaining this type of important information, a company can improve
employee performance and profitability.

Consumer market research surveys can help to discover:

 Customers’ perceptions of to the brand, product and service

 The probability of current customers becoming repeat purchasers
 What customers think of competition
 Customers’ future needs and wants

Consumer market research surveys give the data need to enhance relationships
with current customers, increase retention and cultivate sales. Once analyzing the
opinions of customers we can funnel the data into winning marketing and customer
service strategies.

source: http://www.qualtrics.com/blog/market-research-v-marketing-research/

Business-to-business (B2B) marketing research

Business to business (B2B) research is inevitably more complicated than consumer

research. The researchers need to know what type of multi-faceted approach will
answer the objectives, since seldom is it possible to find the answers using just one
method. Finding the right respondents is crucial in B2B research since they are often
busy, and may not want to participate. Encouraging them to “open up” is yet
another skill required of the B2B researcher. Last, but not least, most business
research leads to strategic decisions and this means that the business researcher
must have expertise in developing strategies that are strongly rooted in the
research findings and acceptable to the client.
There are four key factors that make B2B market research special and different to
consumer markets:

 The decision making unit is far more complex in B2B markets than in
consumer markets
 B2B products and their applications are more complex than consumer
products
 B2B marketers address a much smaller number of customers who are very
much larger in their consumption of products than is the case in consumer
markets
 Personal relationships are of critical importance in B2B markets.

source: http://www.small-business-world.com/market-research/

Marketing research in small businesses and nonprofit organizations

Marketing research does not only occur in huge corporations with many employees
and a large budget. Marketing information can be derived by observing the
environment of their location and the competitions location. Small scale surveys
and focus groups are low cost ways to gather information from potential and
existing customers. Most secondary data (statistics, demographics, etc.) is available
to the public in libraries or on the internet and can be easily accessed by a small
business owner.

Below are some steps that could be done by SME (Small Medium Enterprise) to
analyze the market:

 Provide secondary and or primary data (if necessary);

  Analyze Macro & Micro Economic data (e.g. Supply & Demand, GDP, Price
change, Economic growth, Sales by sector/industries, interest rate, number of
investment/ divestment, I/O, CPI, Social analysis, etc.);
 Implement the marketing mix concept, which is consist of: Place, Price,
Product, Promotion, People, Process, Physical Evidence and also Political &
social situation to analyze global market situation);
 Analyze market trends, growth, market size, market share, market
competition (e.g. SWOT analysis, B/C Analysis, channel mapping identities of
key channels, drivers of customers loyalty and satisfaction, brand perception,
satisfaction levels, current competitor-channel relationship analysis, etc.),etc.;
 Determine market segment, market target, market forecast and market
position;
 Formulating market strategy & also investigating the possibility of
partnership/ collaboration (e.g. Profiling & SWOT analysis of potential
partners, evaluating business partnership.)
 Combine those analysis with the SME's business plan/ business model
analysis (e.g. Business description, Business process, Business strategy,
Revenue model, Business expansion, Return of Investment, Financial analysis
(Company History, Financial assumption, Cost/Benefit Analysis, Projected
profit & Loss, Cash flow, Balance sheet & business Ratio, etc.).

Note as important: Overall analysis should be based on 6W+1H (What, When,

Where, Which, Who, Why and How) question.

International Marketing Research plan

International Marketing Research follows the same path as domestic research, but
there are a few more problems that may arise. Customers in international markets
may have very different customs, cultures, and expectations from the same
company. In this case, Marketing Research relies more on primary data rather than
secondary information. Gathering the primary data can be hindered by language,
literacy and access to technology.

Types of Market Research

Marketing research techniques come in many forms, including:

 Ad Tracking – periodic or continuous in-market research to monitor
a brand’s performance using measures such as brand awareness, brand
preference, and product usage. (Young, 2005)
 Advertising Research – used to predict copy testing or track the efficacy of
advertisements for any medium, measured by the ad’s ability to get attention
(measured with Attention Tracking), communicate the message, build the
brand’s image, and motivate the consumer to purchase the product or
service. (Young, 2005)
 Brand Equity Research - how favorably do consumers view the brand?
 Brand Association Research - what do consumers associate with the
brand?
 Brand Attribute Research - what are the key traits that describe the brand
promise?
 Brand Name Testing - what do consumers feel about the names of the
products?
 Commercial Eye Tracking Research - examine advertisements, package
designs, websites, etc. by analyzing visual behavior of the consumer
 Concept Testing - to test the acceptance of a concept by target consumers
 Cool Hunting - to make observations and predictions in changes of new or
existing cultural trends in areas such as fashion, music, films, television,
youth culture and lifestyle
 Buyer Decision Processes Research - to determine what motivates people
to buy and what decision-making process they use
 Copy Testing – predicts in-market performance of an ad before it airs by
analyzing audience levels of attention, brand linkage, motivation,
entertainment, and communication, as well as breaking down the ad’s flow of
attention and flow of emotion. (Young, p 213)
 Customer Satisfaction Research - quantitative or qualitative studies that
yields an understanding of a customer's satisfaction with a transaction
 Demand Estimation - to determine the approximate level of demand for the
product
 Distribution Channel Audits - to assess distributors’ and retailers’
attitudes toward a product, brand, or company
 Internet Strategic Intelligence - searching for customer opinions in the
Internet: chats, forums, web pages, blogs... where people express freely
about their experiences with products, becoming strong opinion formers.
 Marketing Effectiveness and Analytics - Building models and measuring
results to determine the effectiveness of individual marketing activities.
 Mystery Consumer or Mystery Shopping - An employee or representative
of the market research firm anonymously contacts a salesperson and
indicates he or she is shopping for a product. The shopper then records the
entire experience. This method is often used for quality control or for
researching competitors' products.
  Positioning Research - how does the target market see the brand relative
to competitors? - what does the brand stand for?
 Price Elasticity Testing - to determine how sensitive customers are to price
changes
 Sales Forecasting - to determine the expected level of sales given the level
of demand. With respect to other factors like Advertising expenditure, sales
promotion etc.
 Segmentation Research - to determine the demographic, psychographic,
and behavioural characteristics of potential buyers
 Online Panel - a group of individual who accepted to respond to marketing
research online
 Store Audit - to measure the sales of a product or product line at a
statistically selected store sample in order to determine market share, or to
determine whether a retail store provides adequate service
 Test Marketing - a small-scale product launch used to determine the likely
acceptance of the product when it is introduced into a wider market
 Viral Marketing Research - refers to marketing research designed to
estimate the probability that specific communications will be transmitted
throughout an individual's Social Network. Estimates of Social Networking
Potential (SNP) are combined with estimates of selling effectiveness to
estimate ROI on specific combinations of messages and media.

Marketing research methods

Methodologically, marketing research uses the following types of research designs:

Based on Questioning
 Qualitative marketing research - generally used for exploratory purposes
- small number of respondents - not generalizable to the whole population -
statistical significance and confidence not calculated - examples include focus
groups, in-depth interviews, and projective techniques
 Quantitative marketing research - generally used to draw conclusions -
tests a specific hypothesis - uses random sampling techniques so as to infer
from the sample to the population - involves a large number of respondents -
examples include surveys and questionnaires. Techniques include choice
modeling, maximum difference preference scaling, and covariance analysis.

Based on observations
 Ethnographic studies - by nature qualitative, the researcher observes social
phenomena in their natural setting - observations can occur cross-sectionally
(observations made at one time) or longitudinally (observations occur over
several time-periods) - examples include product-use analysis and computer
cookie traces. See also Ethnography and Observational techniques.
 Experimental techniques - by nature quantitative, the researcher creates a
quasi-artificial environment to try to control spurious factors, then
 manipulates at least one of the variables - examples include purchase
laboratories and test markets

Researchers often use more than one research design. They may start with
secondary research to get background information, then conduct a focus group
(qualitative research design) to explore the issues. Finally they might do a full
nation-wide survey (quantitative research design) in order to devise specific
recommendations for the client.

Applications of Market Research

 Advertising Research
 Product Research
 Pricing Research
 Concept Testing
 Promise Testing
 Positioning Research
 Marketing Due Diligence
 Customer Satisfaction
 Branding Research
 Customer Satisfaction
 Brand Equity Research
 Market Segmentation
 CRM Database Analysis
 Ad Copy Testing
 Market Opportunity Scan
 Market Sizing
 Competitive Analysis

Advertising Research

Advertising research design is determined by specific advertising goals and the

stage of ad development, or campaign. We use a broad range of advertising
research techniques including ad recall surveys, message and theme salience and
impact measures, buying motivation and association with the ad message or
positioning theme.

Product Research

Product market research serves several goals: new product design and market
validation research, or assessing existing product strength and line extension
potential. We follow the product development cycle integrating research with
creative positioning and technical product design efforts.
New Product Development Stages

For new product development market research, the question becomes one of
matching the stage of new product development with the right creative or product
market research method. We use the Marketing Intelligence Platform to guide the
use of the three forms of Intelligence --Ideas, Data, & Drivers -- to the product
development process. We provide consulting and specific new product research
market research capabilities at each new product development stage.

Product development market research methods and tools used may vary according
to the product type, the extent of incremental change from other products, the
investment and risk factors, and the costs of seeding the new product in the
marketplace.
Pricing Research

We provide pricing strategy consulting backed by strong pricing research

capabilities. Our perspective is broad when dealing with pricing research and pricing
strategy decisions, and focus on finding for your business optimum price-product-
feature configurations in the context of market positioning opportunities. We employ
both qualitative and quantitative pricing research tools.

Concept Testing

Concept testing research evaluates advertising concepts, ad theme concepts and

appeals, new product concepts, pricing, brand concepts, brand names, and
positioning strategy concepts. We select techniques -- qualitative and quantitative
-- to both develop concepts, refine, and screen to assess market potential.

Staged Concept Testing

Staged or sequenced concept testing acknowledges the importance of the creative,

research, and concept refinement process involved in concept development. We
believe our concept testing research philosophy is what differentiates us from many
other market research firms. These principles guide our concept development and
testing study designs:

 Concept testing is both a research, and a creative concept development

activity. Testing outcomes spawn creativity so we build it in to the process.
 In the beginning, we focus on concept development rather than screening,
which comes later.
 Concept development requires an exploratory market research mode and
mindset, starting first using exploratory qualitative research methods such
as depth interviewsamong target audience members.
 We address both tangible attribute clusters, and emotional
appeals when creating concepts and building concept statements.
 We move from qualitative depth interviews, to larger sample time-extended
depth interviews, often employing online depth interviews which allow for
repeated respondent interaction and concept incubation.
 Using a hybrid research design, we blend the qualitative research mode with
quantitative concept ranking, this to refine concept development and
assessment of appeal.
 Thus, our approach to screening concepts favors smaller sample multiple
waves rather than one large sample wave.
 Finally, we acknowledge that a full understanding of concept appeal must be
assessed in a mode with maximum realism. Here's a case when we believe
that online market surveys have a strong advantage as they allow use of a
 variety of exhibits for the testing of advertising concepts, product concepts,
brand concepts, and strategic positioning concepts.

Positioning Research

We offer experienced market positioning and creative branding research capabilities

to define and go-to-market with a high-impact positioning strategy. First, it requires
understanding the market positioning concept, your current and potential markets,
and the process needed to generate brand name impact.

Brand positioning research approach and goals

 refine highly differentiating advertising themes, appeals and messaging...

 employ the most appropriate market segmentation approach through market
segmentation research...
 understand customer needs to discover high-impact brand positioning
opportunities through staged qualitative, behavior research, market research
ethnography, and quantitative research. ...
 use Creative Branding Research -- driven by positioning research results -- to
identify high-potential brand power, and creatively deliver a brand promise.

Positioning Base Research

Prior to conducting primary positioning research, we first take time to gauge your
brand landscape. For client companies, we evaluate positioning assumptions and
prior market structure studies, market segmentation information, branding
research, client and competitive advertising, and competitive brand name
architecture. We build hypotheses regarding the strength of comparative brands,
their brand equity, acceleration of brand power, and how the market decision-
makers -- consumers and B2B decision-makers and firms-- view the marketplace.

As a part of the Positioning Base Research, we conduct far reaching interviews with
client management, field sales, product development and customer service staff.
We talk to sales people in the channel about their own brand preferences and their
perception of customers. We cap off Positioning Base Research with qualitative
market research where we reach a small sample of client customers and those
competitor-loyal customers. The purpose here is to refine hypotheses about how
customers see and define the marketplace.

Positioning Qualitative Research

We employ a unique qualitative methods. Our typical starting point is a small

sample round of depth interviews. In the beginning stages of a positioning study,
this is an optimum method of qualitative market research. Here, we use a non-
directive design and style, combined with projective interviewing techniques to
uncover buyer perceptions of the brand choices, and their differentiation qualities.
We do not bombard respondents with a laundry list of questions, but rather, let
them talk freely in a wide ranging manner about their buying and use experience,
and market perceptions. The focus here is to uncover the language about the
choice dimensions on which buying decisions are made. Positioning relies upon a
solid segmentation and market definition analysis.

 We may continue the qualitative exploration with a larger sample using

an online qualitative time-extended method which combines both qualitative
and quantitative assessments. If certain conditions exist, we may add focus
group discussions to the qualitative market research work.

Positioning Quantitative Market Survey

Brand Screening Survey:

 Test hypotheses developed from the Positioning Qualitative Research. These

pertain to segmentation, strength of segment dimensions, and category
perceptions and buyer attitudes.
 Screen positioning concepts using concept statements and appeal ratings to
assess qualities of positioning distance, or differentiation power.
(See... Concept Testing)

See our Strategy Newsletter article discussion about finding and owning a market
space as the basis of successful brand positioning. The issue is "How do we find and
own a market space and build or rebuild a brand?"

Positioning Research Methods Discussion

Qualitative Research: Online Depth Interviews

Once hypotheses about brand positioning and market opportunities are articulated
from our initial limited round in our Positioning Base Research, and initial depth
interviews, we may expand the qualitative exploration to a broader set of Time-
Extended Online Depth Interviews. This method engages each participating
respondent over a period of one week or more thinking about and reporting their
perceptions in a running dialog. We have successfully used this innovative tool and
process with many high profile clients. While primarily qualitative, our online
implementation has some important quantitative features for segmentation and
attitude measurement.

The Value of the Qualitative Step

We believe sound qualitative research is a vital component in decision-oriented

marketing research. It is especially useful in developing hypotheses about consumer
motivations. These help us understand from the consumer's perspective and in the
consumer's own language. Qualitative research, which is characterized by free-
ranging, open-ended interviews among a limited number of respondents, is
primarily an exploratory motivational technique. We use it here to identify important
marketing variables and to suggest the relationships among those variables, to
focus the creative process and lay the design groundwork for the later quantitative
screening research stage.

The main point here is the value of getting in-depth insight into the buyer belief and
attitude structure, and use this insight for business strategy development. For
example, when scanning for strategic opportunities they can uncover important
consumer and business buyer attitudes, beliefs, and behaviors that may precede an
emerging trend. Non-directive techniques and projective research techniques are
especially useful in defining buyer motivations .

What about focus groups?

Customer discussion groups -- another term for "marketing research focus groups" --
can be useful in the early stages of positioning strategy decision-making. For brand
positioning research, we tend to prefer in-person or online time-extended depth
interviews, our preferred methods of getting inside the buyer's mind which may
offer equally rich, or better, marketing information at an overall lower cost.

We will recommend focus groups when the following conditions are important

 Idea generation among prospects and customers

 When observing group interaction can provide insight about potential opinion
leadership and word-of-mouth activity...
  Little is known, or knowledge is stale, about the product or brand category,
and hearing the category language and buyer behavior range reported first
hand is desired...
 Observing emotions as brand, products, or ads are revealed

While group discussions are very popular among qualitative techniques, there are
many important "do's and don'ts". It is critical that the researcher knows how, when
and where they can be used, and where they should be avoided. The January 2001
issue of theStrategyNewsletter updates the basics and some new issues brought on
by the advent of online focus groups, and other tech offshoots.

Content analysis to understand the brand language

Aside from market research focus group discussions and depth interviews, we might
use other methods to understand customer brand perceptions and screen your
branding options. Content analysis is a process of examining customer diary entries,
articles by observers of behavior, advertising, and other language used by
advertisers, customers and suppliers in the product category. Content analysis can
be applied to marketing research data collected from a range of sources, open-
ended responses to online surveys, phone surveys, self-administered
questionnaires, time-extended qualitative depth interviews, standard depth
interviews, competitive promotional literature, brand advertising. In content
analysis we examine word use, style, meaning, etymology, and core attitudes
reflected.

Ethnography to 'watch' what people do

Our positioning exploration research may involve special observational qualitative

methods such as ethnographic studies. Photo ethnography, uses various methods,
such as self-directed-video to watch what people do in and around the product
category. We make inferences from this data as to relevant positioning dimensions
at play. We watch as customers and prospects engage in store shopping, using
products in their home, and their interactions with other people when the product
category or brand is involved. A pet food company may employ a video
ethnography study and ask pet owners to video tape their pet.

Marketing Due Diligence

Assessing Market Position for Private Equity and Venture Capital Firms with Expert
Fast-paced Marketing Research

In technology and innovative early stage companies marketing, the value

proposition can be a moving target, both for companies, component suppliers, and
their new products. Market segmentation tools can meaningfully identify the need
structure of differing market sectors. Technology market research often requires the
researcher to be both knowledgeable in the language and concepts of technical
issues, while bring a fresh approach to technology marketing issues. Depending on
the marketing decisions and issues, we often design technology market research
studies using hybrid designs, incorporating market survey method of both
qualitative and quantitative genres. When assessing new products opportunities,
primary and secondary research can be driven by what we call 'next bench'
innovation -- the concepts and market knowledge of technology workers on the
firing line. Competitive intelligence techniques may also be required.

Customer Satisfaction Research

The buzz and interest around customer satisfaction research sometimes deflates if
the research design does not lead to actionable results. Also, customer expectations
generally rise overtime as advances in technology in many categories boost the
consumer consciousness of what to expect. We build into our customer satisfaction
study design "action indicators" to point to immediate use of customer satisfaction
results.

Customer Satisfaction Development Components

Customer Satisfaction Decision Drivers

Qualitative research uncovers the broad picture of how customers make purchase
and repeat purchase decisions. We explore the product and company attributes, and
we go the next step, to understand purchase and brand loyalty factors beyond
attributes which affect customer satisfaction and customer loyalty. These may be
the brand-product use application, emotional drivers, or external forces.
Attribute

Before proceeding to quantitative customer satisfaction research, we identify and

create core attribute factors which, based on preliminary findings, account for most
of the differences in customer satisfaction levels.

Opportunity Scanning

Opportunity scanning asks the question, "What else?" "What are your core needs
and what would be the ideal solution to those needs?" Here our qualitative research
exploration uncovers possible emerging needs, and changing competitive factors.
See how we think about the decision process and where opportunity scanning fits in
the process as an important first step.

Customer Satisfaction Measurement -- Static Measures

Static customer satisfaction measurements are standard core quantitative survey

measurements. They are termed "static" because they are used as constant
comparative measures and are of our standard CSM research measurements.

 Brand-Company Attribute Ratings

 Specific product, brand or company attributes.
 Attribute Importance
 Reported or stated importance levels.
 Brand-Company Overall Ratings
  These are the global or "dependent" measures which are later correlated to
attribute ratings and importance ratings.
 Brand-Company Loyalty
 Here we measure the stability of repeat purchase of the client product brand
or company brand.
 Global Shift Expectations

Over time, customer expectations change as competitors and technology enhance

customer service and product quality. Performance which once would "exceed
expectations" is today the norm. Here we assess how expectations are evolving.

Customer Satisfaction Measurement -- Dynamic Measures

The dynamic measures focus on competitive positioning and the pathway for
making specific changes to product or customer service to improve customer
satisfaction.

Competitive Advantage

Emerging Needs

Here, we look at today's and tomorrow's customer needs, forecasting where

possible how needs will evolve over time. We employ, where appropriate, concept
testing to posit future ways the client company, products, or brands may respond to
these changing customer need environments. A customer satisfaction measurement
study that accounts for market dynamics by anticipating emerging customer needs
becomes actionable so that our clients "see the future" a bit more clearly from the
customers' perspective.

CSM Action Results

Customer Satisfaction Competitive Profile

This is today's snapshot of relative customer satisfaction in the current market

environment, with current technology and innovation, and the current competitive
set. It answers the question, "Where exactly do we stand today?"

Customer Loyalty Growth

This is the endpoint, the dependent result we seek to continually enhance. While we
measure customer loyalty growth over time in our customer satisfaction tracking
studies, we view it more importantly as the target to affect in the future.

Customer satisfaction research data -- collected by phone survey or online survey --

are a core component for a marketing research information system. We research
customer views about satisfaction using an innovative approach that uncovers
customer loyalty, brand loyalty, and importance of your brand and the full market
category.

Power Decisions Group' customer satisfaction research measurements track

customer loyalty, and loyalty strength and vulnerability. We discover and compare
what customers think about you, competitor brands, your product configurations
and product by model and style, and cross-category substitute brands. Customer
satisfaction market research is a vital data component of an Intelligence
Platform and marketing information system for marketing strategy decision-making.

Customer satisfaction research measurement (CSM) studies typically

involve quantitative market surveys, such as online surveys, phone survey, or other
quantitative survey methods, to rate a supplier or product on key product attributes
and brand equity image dimensions. Phone surveys, mail surveys, or online surveys
are a few market research methods used to collect uniform ratings data. Customer
satisfaction data, when consistently repeated over time, can provide trend
information and signal problem areas. This is highly useful to guide the new
products development process as well as your advertising, and branding strategy
programs. While these hard numbers and trends are useful, it is often the
qualitative portion -- the open-ended probing questions -- that can provide the most
insight for strategy building. Verbal comments, suggestions, and complaint may
point to changing needs which in turn may be kernels of new opportunities for
strengthening competitive product and positioning advantage.

Branding Research

Branding decisions drive branding marketing research strategy. Corporate, product

and advertising brand development is a mix of creativity and marketing
information to uncover brand positioning opportunities in cluttered market spaces.

Brand Base Research

Here we gauge the landscape evaluating existing available branding research, client
and competitive advertising, and brand name architecture. We seek to uncover
existing comparative brand equity marketing information and knowledge. As a part
of this brand equity discovery process, we conduct far reaching interviews with
client management, field sales, product development and customer service staff.
We talk to sales people in the channel about their own brand preferences and their
perception of customers. We cap off Brand Base Research with an initial round of
qualitative depth interview, focus groups, or qualitative online forums. This
qualitative research has a branding and brand name equity focus. We typically
include a small sample of client product customers and those loyal to competitor
brands.

Brand Qualitative Research

We employ a unique qualitative methods. Our typical starting point is a small
sample round of depth interviews. In the beginning stages of brand development,
this method can be far more useful than focus groups which may come later. Here,
we use a non-directive design and style, combined with projective interviewing
techniques to uncover buyer motivations and brand perceptions. We do not
bombard respondents with a laundry list of questions, but rather, let them talk
freely in a wide ranging manner about their brand experience with client brands and
competitive brands. We may continue the qualitative exploration with a larger
sample using an online qualitative time-extended method which combines both
qualitative and quantitative assessments. If certain conditions exist, we may
add focus group discussions to the qualitative market research work.

Brand Screening Survey

After Brand Generation Round 2, we typically implement a Brand Screening

Survey:

 Test hypotheses developed from the Branding Qualitative Research. These

pertain to segmentation, strength of brand and category perceptions, buyer
attitudes and beliefs, and product behavior patterns.
 Screen positioning concepts using concept statements and appeal ratings
 Screen brand name and communications themes
 Evaluate linguistic considerations

Creative Development -- Brand Generation

We interact with your creative team in the development of concepts and ideas aided
by findings of the Creative Branding Research components. We may act as a team
participant or contract with you for full management of the creative development
process.

Refining Options - Making Decision

The narrowed choices are refined and selection made. This process may interact
with an additional wave of screening research.

Go-To-Market Plan

If our assignment includes assisting with the Market Plan, we act as facilitators and
managers in the execution stage in the introductory phase. If the plan includes a
live market test, a new advertising campaign, or repositioning, we may design
branding, advertising, sales, and product success metrics and methods as a part of
your marketing information system.

Mixing creativity and market research

Just great chefs, or potters at the wheel both evaluate and create at the same time,
a successful brand development and branding research process requires the same
blended intuitive and analytical mindset. Success comes with creative branding
ideas and astute market understanding. Often, branding research can present a
dilemma for marketing decision-makers and a tug-of-war among the pros they rely
upon. Creative and advertising people -- whether inside or agencies -- who conceive
exciting concepts may voice that brand ideas come from creative insight and
genius, not research. Research and analytical types might espouse a "customer-
driven" approach to branding and brand opportunity discovery. Our view is to design
a process that draws on both: creative power, and marketing information. Further,
we view branding research as useful primarily to feed, rather than judge, the
process. This is especially true with brand concept creation and brand naming
assignments.

Our tact is a process we call "creative branding research." Powerful positioning and
the branding to execute the positioning strategy, first, requires understanding the
marketplace. The Strategy Newsletter talks about the notion of finding and owning a
market space as the basis of successful brand positioning. The issue is "How do we
find and own a market space and build or rebuild a brand?"

Brand Equity Research

Brand equity research measures the breadth and depth of brand power in your
target markets. We use both standard and custom tailored brand equity survey
measurements. A key to research design is the goal of a brand equity
measurement study.

Brand Base Research

Here we gauge the brand equity landscape evaluating existing available research.
Our review includes existing brand architecture of both client and competitive
brands. We conduct far reaching interviews with client management, field sales,
product development and customer service staff. We talk to sales people in the
channel about their own preferences and their perception of customers. We cap
Brand Base Research with an initial round of qualitative depth interviews among a
small sample of client product customers and those loyal to competitor brands.
  Brand Qualitative Research
We employ a unique qualitative methods in brand equity research studies
involving the exploration of branding options. Our typical starting point is a
small sample round of depth interviews. In the beginning stages of brand
equity development, this method can be far more useful than focus groups
which may come later. Here, we use a non-directive design and style,
combined with projective interviewing techniques to uncover buyer
motivations and brand perceptions. We do not bombard respondents with a
laundry list of questions, but rather, let them talk freely in a wide ranging
manner about their brand experience with client brands and competitive
brands. We may continue the qualitative exploration with a larger sample
using an online qualitative time-extended method which combines both
qualitative and quantitative assessments. If certain conditions exist, we may
add focus group discussions to the qualitative market research work.

 Brand Quantitative Research

Here we precisely measure with custom and tracking studies the components
of brand equity:
 Brand Awareness
 Brand Image Associations
 Differentiating Strength (Perceived Difference) between competing brands
 Brand loyalty and switching likelihood
 Confidence
 Brand name latitude -- the extendibility of the brand in current and proposed
product categories.

Market Segmentation

Market segmentation research maintains focus and delivers needed marketing

information in today's moving economy where new markets and new product
categories emerge and traditional market segments fade away. Market
segmentation research is a way to keep 'your eye on the ball.' Often we start the
market segmentation process with qualitative research to the range and breadth of
customers. Then we follow with quantitative research using appropriate
multivariate analysis (cluster, k-means factor, etc) to define meaningful segments.

Market Segmentation Goals

 Estimate the market segment dimension salience or impact.

Market segmentation dimensions may be demographic, behavioral,
attitudinal, or a combination of these which may form psychographic
segments.
 Estimate the market segment dimension salience or impact.
 Factors here may include buying frequency, strenth of product category
importance, perceived value of product use system, and consumer or
business customer attitudes.
 Measure product appeal and purchase intent.
Purchase appeal and intent of brands and products, each with a unique brand
image and positioning, further attunes our quest for market segment
definition. We do this on real or proposed brands and products positioning
and price-perfomance offers. The response patterns together with segment
dimension data are assessed using advanced analytics. This aids us as we
uncover high potential segments, their differentiated customer appeal, and
further refines our brand segmentation approach and conclusions.

Sales Analysis

Data mining -- finding gems of insight from sophisticated or basic analysis of your
internal customer and sales and margin trend data -- is a key first step in product
and brand analysis. Simply put, a marketing analysis data mining effort searches for
meaning and insight among the stacks of sales data and marketing data already
within a sales and marketing organization. Through these tools we can better target
your best customers, find which advertising and promotion methods are most
efficient and effective.