Marketing Research: An Empirical Framework

Laxman Pokhrel
MPhil in Marketing(Kathmandu University)
MBS-Marketing, MA Psychology, PGDCP
 Learning Horizon and Session Outline
Unit-I Introduction to Research
Unit-II Marketing Research Design
Unit-III Data Analysis and Reporting
Unit-IV Product Research
Unit-V Advertising Research
Unit-VI Market and Sales Research
Unit-VII Attitude and Psychographic Research
 Learning Horizon and Session Outline
Syllabus: Advertising Research L.H. 5
• Copy Testing Research and its Methods
• Media Research and Media Audiences Methods of Audience
Measurement
• Measurement of Advertisement Effectiveness
 •Do we need Advertising?
•Does Advertising increase our
sales or student enrollment?
•Is Advertising Bullshit?
General Background of
Advertising
 Piyush Pandey Mark Ritson
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 General Background of Advertising
- Advertising can be defined as a non-
personal presentation and promotion of
ideas, goods or services paid by an
identified sponsor.
- According to W.J. Stanton, “Advertising
consists of all the activities involved in
presenting to an audience a non-personal,
sponsor- identified, paid for a message
about a product or organization.”
- From the above definitions, we can
conclude that advertising is the sales
message directed to mass on behalf of the
paying sponsor.
 Advertising Industry in Nepal
Nepali advertising industry estimates the total turnover of the industry to around
Rs 6.2 billion(est.) annually. Experts and industry sources estimate the annual
growth rate of the business as somewhere between 10-15 %.
Advertising Copy
Copy Testing and Techniques
of Copy Testing
 Copy Testing
- Copy testing is a form of market research that
determines the likelihood of an advertisement's
success through consumer feedback.
- Copy Testing is a form of market research used
by advertisers to evaluate the effectiveness of an
ad before publishing that ad for consumption by
the public.
- Copy testing is a specialized field of marketing
research that determines an advertisement's
effectiveness based on consumer responses,
feedback, and behavior.
- Advertising Concept Testing> Copy Testing > Effectiveness Testing
 Types Copy Testing Techniques
- Advertisements can be pretested at several levels.
Pretesting that occurs in the creative process is called
concept testing. Pretesting done in the later stages is
called copy testing. Copy tests are usually conducted
using quantitative research methods.
1. Consumer Jury
2. Rating Scales
3. Portfolio tests
4. Psychological tests
5. Physiological tests
6. Sales tests
7. Day-after recall Tests
 Types Copy Testing Techniques
1. Consumer Jury
- It is the most traditional and simplest amongst all the
copy testing methods.
-A consumer jury test is a method of testing
advertisements that involves asking consumers to
compare, rank and evaluate your advertisements.
-A personal interview may be conducted, or a group of
about 50 to 100 people may be assembled and requested
voting based on their preferences, interests or even
influences to purchase the product.
-It then presents a rating given by a group of audiences
who mostly represent the potential buyers of the
product.
 Types Copy Testing Techniques
2. Rating Scale Copy Testing
- Rating scale requires established standards for a
productive copy and numerical weights for each
standard.
- Advertisements are later rated according to scale
values, and a numerical grade or a percentage is
obtained.
- The weights may be assigned to different aspects on
the basis of which the copy is to be tested depending
on their scale of significance.
- This method is mostly used by professional
advertising agencies which rate advertisements
without any trouble.
 Copy Testing Techniques
3. Portfolio Testing
- Portfolio testing is a copy testing technique in which some dummy
copies are kept in a folio along with the regular advertisement.
- A group of ads mostly test ads and control ads, or a combination of
both are placed in a portfolio.
- After going through a portfolio of a different variety of a particular
advertisement, respondents nominated from the target market are
asked to remember in detail those ads that they remember.
- The ad giving a minimum playback is considered to be the best
one. It is important to observe whether the choice of
advertisement is a dummy advertisement or the regular one.
- If found dummy, the actual advertisement is improvised
accordingly.
 Copy Testing Techniques
4. Psychological Copy Testing
- Psychological Copy testing is a technique in which various
methods including word association, sentence
completion, in depth interview and storytelling are
welcome.
- A catalogue of reactions namely self-pity, security, fear,
nostalgia, and so on are set.
- Alternative ads are then rated based on how readers
respond.
- The psychological technique is difficult to implement
since skilled interviewers are required.
- Copy testing is psychological in nature; hence some
psychological tests are administered.
 Copy Testing Techniques
5. Physiological Copy Testing
- In physiological copy testing, tests are conducted
using special laboratory equipment’s which
records individual physiological responses to the
ads.
- Here, the physiological reaction of the
respondents is considered more crucial than
what he says.
- There are three elementary instruments that are
used in these kinds of tests- the Eye Moment
Camera, Galvanometer and the Pupil metric
device.
 Copy Testing Techniques
6. Sales Copy Testing
- In this technique, advertising campaigns are conducted in
the markets chosen for testing.
- The effectiveness is ascertained by the actual sales in these
markets. The market with the highest sales is considered as
the best market for an effective sales campaign.
- Sales tests are very practical measures to evaluate
advertising effectiveness when advertising is the dominant
element and the only variable in a company’s marketing
plan.
- Sales tests cannot be conducted instantly. These forms of
tests, especially the field studies prove to be very expensive
and time-consuming.
 Copy Testing Techniques
7. Day After Recall Test
- A day after recall test is a method of measuring the
percentage of people who recall seeing the ad the day-after it
was relayed on the television.
- It is done to make sure that the ad message is passed on to
the consumers.
- The consumer response is possessed by conducting
interviews on a one-on-one basis. Test standardization is
employed to avoid misleading results.
- Day-after recall test advocates increase in sample size. The
day-after recall tests are one of the oldest forms of copy
testing. Few advertisers still employ because of limited data
and analysis.
 New Copy Testing Method
- A/B testing is a user experience
research methodology. A/B tests
consist of a randomized experiment
with two variants, A and B.
- It includes application of statistical
hypothesis testing or "two-sample
hypothesis testing" as used in the
field of statistics.
- For example, if you want to visit
Thailand after the Covid-19 pandemic
and chose the website from the two
available.
 Neuro Marketing Technique
- Neuro-marketing is a commercial
marketing communication field that
applies neuropsychology to market
research, studying consumers'
sensorimotor, cognitive, and affective
responses to marketing stimuli.
- For example, Hyundai used EEG to test
their prototypes. They measured brain
activity in response to different design
features, and explored which kind of
stimulation was most likely to result in
buying. The findings of this study led
Hyundai to change the exterior design of
the cars themselves.
Case Study of Copy Testing
 Media Research And Media
Audiences Methods Of Audience
Measurement
 Media Research
 Media is the means that helps in channeling
(transmitting/ communicating) the message of advertiser
to the customers.
 Media research involves selecting appropriate media
for disseminating the message to target markets
⚫ Which media mix
⚫ Budget for the communication program or media mix
 Media research is the selection of appropriate media or
a combination of various media (media mix) for the
diffusion of ad message
⚫ Where should we advertise ?
⚫ Which media vehicles should we use ?
 Media Research
Types of Advertising Media
a) Indoor Advertising Media
⚫Newspaper, magazines, TV, Journal, Radio, Cinema, Video
b) Outdoor Advertising Media
⚫Posters, Hoarding, Billboards, Flex, Handbills
c) Direct Advertising Media
⚫Leaflets, Booklets, Folders, Brochures, Sales letters
d) Display Advertising Media
⚫POP display, Window displays, Exhibitions and fairs, Wall
displays
 Relative Strengths of Advertising Media
Brand Building Brand Brand Brand Image & Brand Linkages to Remind
Factors Awareness Attributes & Personality Judgment & Life Style &
Benefits Feelings Social Norms

Type of Media

Television High High High High High Moderate

Radio High Moderate Low Low Low Moderate

Magazines Low High High Moderate High Low

Newspapers High High Low Low Low Low
Direct Low High Low Low Low Low
Internet Low High High Low Moderate Low
Display High Low Low Low Low High
 Role of Media Research
 It helps to choose right media
⚫ Foreff ecti ve message delivery right media selecti on is vital
⚫ Research helps to analyze available options and make wise and rational
decision on media selecti on based on requirement.
 It ti es advertising to the budget
⚫ Research provides complete information about the cost of available media
options and works as a control tool.
 It evaluates the advertising eff ecti veness
⚫ Research tends to measure advertising eff ecti veness after the release of ads
⚫ Calculative information on media budget, expenditure, reach, coverage,
frequency and impact of media is analyzed.
 Media Research Process
Step-I Target Market Study
⚫ Gathering useful data about the target market or audience to be reached by
advertising
⚫ Data regarding the interests, attitudes, socioeconomics status, age group, gender
composition, professions, religious beliefs, language and cultural background
⚫ Demographic, Psychographic, consumer profile, Media Profile/ habits

Step-II Deciding the ad Message

⚫ What kind of message to be delivered to the people
⚫ Message has to be designed according consumer profile and media profile

Step-III Matching Media and Target Group

⚫ Matching the characteristics of media, message copy as per the need of target group of
audience
⚫ Other consideration: The cost, the product prestige, the client’s reputation, the rival brand,
advertising media
 Media Research Process
Step-IV Media Selection
⚫ Selecting the appropriate media vehicle based on the reach, frequency, &
size of advertising campaign
⚫ Which or what kind of media vehicle to be used for exposing advertisement
⚫ Consideration
Objectives, The coverage and reach, Media Costs and the nature of

message
Step-V The Media Schedule
⚫ Media schedule shows the number of advertisement that are to appear in
each vehicle of each medium, the size of the advertisement and the dates
of ad release
⚫ General schedule patters: Continuous, Fighting, Pulsing
 Measurement of
Advertisement Effectiveness
 Advertising Research
 Advertising aims to create some intended impacts in
customer mindset, so that they can take some actions
towards advertised products, services or ideas
 As advertisement requires huge resources, organizations

wants to know the affect and outcome of adverts.

 Advertising research intends to find out whether desired

message of product or service reached to its target

market or not and weather they take intended response
or not.
 Advertising research is crucial for organizations to

measure the impact of ads campaign and to determine

the future course of action to create desired response.
 Advertising Research
 What is to be measured?
⚫ Evaluation is a research activity which establish the cause and effect
relation between the efforts and the results
⚫ Effectiveness is to be seen in five areas namely, markets, motives,
messages, media and overall results
 When to test | measure?

⚫ Testing of ad effectiveness is possible at any stage of advertising process

⚫ Before | During | After
 How to test?

⚫ What methods or techniques going to use is dependent on when

the ad effectiveness is being measured?
 Relative Strengths of Advertising Media
Brand Building Brand Brand Brand Image & Brand Linkages to Remind
Factors Awareness Attributes & Personality Judgment & Life Style &
Benefits Feelings Social Norms

Type of Media

Television High High High High High Moderate

Radio High Moderate Low Low Low Moderate

Magazines Low High High Moderate High Low

Newspapers High High Low Low Low Low
Direct Low High Low Low Low Low
Internet Low High High Low Moderate Low
Display High Low Low Low Low High
 Tools & Techniques For Measuring Advertising
Effectiveness
 Three Phases of resulting advertising effectiveness
Step I: Reception
⚫ Did the ad could draw the reader’s attention?
⚫ Did the ad is catchy?
⚫ Is it rememberable?

Step-II Comprehension
⚫ Was the advertisement understood?
⚫ Could the target react regarding the ad?
⚫ Was the copy happened to be confusing?
Step-III Response
⚫ Did the customer buy the advertised product?
⚫ Did the customer change their behavior?
⚫ Did the customer felt good to the brand?
 Tools & Techniques for Measuring
An Ideal Copy Testing Procedure: PACT
⚫ The reliability and validity of any copy testing
procedure need to be demonstrated
⚫ Reliability means that the procedure is free from
random errors, i.e. measure is consistent and
accurate
⚫ Validity refers to the procedure being free of both
random and systematic errors, it is Concerns with
biasness and true measurement
⚫ PACT for improving the copy testing of advertising
⚫ PACT= Positioning Advertising Copy Testing
 Tools & Techniques for
Measuring
PACT Principles for Advertising
⚫ Related to ad objectives
⚫ Consist of several measures to ensure performance of ad
⚫ Based on human response to stimuli ~ Communication,
comprehension and response
⚫ Clears about result expected through each cost
⚫ Clear about weather the stimulus is to be repeated
⚫ Acknowledges that the most finished the copy is, the
better is the testing
⚫ Provides controls to filter the biased effects
⚫ Clears about sampling
⚫ Demonstrates reliability and validity
 Tools & Techniques for Measuring
Effectiveness
 DAGMAR is a method, which intends to
establish an explicit link between ad
goals and ad results.
 The method was developed by Russell
Colley in 1961.
 Advertising goal might be used with
respect to single advertisement, a year’s
campaign for the product or a
company’s entire advertising philosophy.
 Goals are associated with sales, images,
attitude, awareness etc.
 Tools and Techniques for Measuring Advertising
Effectiveness
 The advertising goal need to be consistent with the
changes in demographic, psychographic and media
graphic habits of customer segment
 DAGMAR helps to measure the results as it works as
planning and controlling tool.
 Some of the goals of related with ads are
⚫ Persuade
⚫ Empowerment and motivation of sales force
⚫ Re-positioning of company images
⚫ Makes special announcement and offers
⚫ Creates conviction among customers
⚫ Make the brand identifiable
⚫ Relate customer need with product value and
benefits
 Long Answer Type Questions
1. What is Marketing Research? Discuss the marketing research process.-I
2. Discuss the concept and stage of data analysis.
3. What is test marketing? Discuss direct and indirect cost and techniques in test
marketing.
4. What is copy testing. Explain its methods.
5. What is product life cycle? Discuss different stages and its related marketing strategies.
6. What is Research Design? Explain any two types of research design.
7. What is data analysis? Explain descriptive analysis and its tools.
8. Discuss the general methods and specific methods of collecting and measuring attitude
data.
9. Explain concept test and product test and their methods.
10. Give the concept of copy testing. Explain about pre-test and post-test.
 Long Answer Type Questions
11. Explain various methods of collecting measuring attitude data.
12. What is primary data? Discuss the different primary data collection techniques.
13. Discuss on product positioning studies.
14. Explain the sample selection process in marketing research project.
15. Discuss the test marketing methods.
16. Mention the motivation research? What are its techniques.
17. Explain the probabilistic and non-probabilistic techniques of sampling.
18. What is test marketing? Discuss direct and indirect cost and techniques in test marketing.
19. Describe the concept of multidimensional scaling. Explain the uses and limitations of
multidimensional scaling.
20. What is scientific method in research? Discuss the difficulties in applying scientific methods in
marketing research.-I
21. Enumerate and explain the common sources of error in fieldwork. How errors can be minimized?
22. Why forecasting sales in necessary? Describe method of sales forecasting its merits and
demerits.
 Short Answer Type Questions
1. Describe the major factor to consider in the presentation of research report.
2. Briefly explain how copy testing research is measured?
3. What are the different types of sales analysis techniques and its bases?
4. What is hypothesis ? Discuss the process of hypothesis testing. Or Discuss the importance of
hypothesis testing in marketing research.
5. Discuss the specific methods of collecting and measuring attitude data
6. Define Test marketing. Discuss its direct and indirect costs.
7. What is observation method? Explain its merits and demerits.
8. ‘Sales forecasting is very necessary in an organization’ explain? Describe any three of sales
forecasting method briefly.
9. What is sampling methods? Explain non probability sampling. Or Describe specific method of
collecting and measuring attitude data.
10. How do you measure advertising effectiveness?
11. Discuss how product testing is done?
12. What is attitude research? How do you measure attitude data?
13. What are the methods of sales forecasting?
 Write short notes in a single sentence
1) Problem definition-I 1) Bivariate analysis
2) Focus group discussion 2) Observation method in marketing research
3) Media research 3) Sales potential
4) Concept test 4) Product organization
5) Motivation research 5) Applied research-I
6) Interview 6) Brand image
7) Multivariate analysis 7) Concept development
8) Hypothesis 8) Copy testing research
9) Measuring Advertisement effectiveness 9) Questionnaire editing
10) Quantitative and qualitative research-I 10) DAGMAR test
11) Multi dimensional scaling 11) Ethics in marketing research-I
12) Product positioning research 12) Distribution cost analysis
13) Image identity research 13) Scientific method in marketing research-I
14) Product concept test 14) Interaction between management and marketing
15) Importance of sampling research-I