Market Research Blue Paper

8/6/2019 Market Research Blue Paper

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Market Research

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Market research: Meet your customerDavid Ogilvy, renowned advertising professional and purported “father of

advertising,” once likened the marketer who ignores research to a general

who ignores decodes of an enemy signal.

While that may be a dramatic analogy, market research can very well

be the single determining factor of success or failure in any businessobjective or marketing campaign. Like Ogilvy, savvy professionals have

known this for years. They know that without market research—without

understanding the wants, needs and behaviors of target audiences,

effective messaging and engagement cannot occur. They see the following jarring

statistics as evidence for the need for adequate market research1:

• Over 25,000 new consumer products SKUs are introduced annually

in North America with only half of these new product launches

considered successful at launch.

• For every seven product ideas that are created, typically only one

succeeds in the market.

• An estimated 46% of all resources allocated to product

development and commercialization is spent on products that are

cancelled or that fail to yield an adequate financial return.

The overall concept of market research has not changed much over theyears, but the tools have. Research that was once reserved for big

companies with deep pockets can be conducted on much

smaller scales in shorter time frames, with equal rates

of effectiveness.

What’s more, the processes around market research have

shifted in the past 5-10 years and certain sub-sets of

market research are continuing to evolve. In this Blue Paper®,

we’re going to review the basics of market research, touch on variousapproaches that are common today and explore the latest trends. If your business

or organization is looking to refine its marketing approaches, read on to see how

research can be the key.

1 Strohmenger, Roxana. “A Cool Research Methodology That I Predict You Will Use | Forrester Blogs.” Forrester Blogs | Making Leaders Successful Every Day. 18 Jan. 2011. Web. 04 Feb. 2011. <http://blogs.forrester.com/ roxana_strohmenger/11-01-18-a_cool_research_methodology_that_i_predict_you_will_use>.

http://blogs.forrester.com/roxana_strohmenger/11-01-18-a_cool_research_methodology_that_i_predict_you_will_use






A note on semant icsThere is market research and there’s marketing research:

Market research is specifically about the customer. It’s about finding out what

makes them tick—who they are, what they care about, how they feel, what

they perceive. The findings of market research can influence what products and

services a business offers, determine whether or not customer expectations arebeing met and pinpoint what drives purchase behavior.

On the other hand, marketing research is about discovering how

messages are received and processed by target audiences. It determines

how changes to the marketing mix can impact customer behavior. The

findings of marketing research can influence the marketing strategy

and communications plan, determine how a business should allocate its

marketing budget and pinpoint what messaging will resonate the most

among target audiences.

While slightly different, both kinds of research are crucial in revealing

not only who your customers are but how they want to engage with your brand.

These terms are used interchangeably among many marketers, and this paper

will follow suit. It’s important, however, to know the difference in the event that

your business seeks assistance from research firms or vendors who tend to draw a

clearer line between the two.

Determining an object iveThe planning stage of market research is all about objectives because objectives

help determine the scope of marketing research endeavors. What’s more, setting

objectives allows for more defined budgets and more effective measurement.

Before embarking on the road to research, ask these questions:

1. What is the purpose of this research?

2. What information is being sought?

3. How will the information be used?

The most effective research objectives, like any objectives, are focused and

specific; they include both what it is that is to be done and how it is known that it

has been achieved. For instance,



A few common market research objectives often cover the following areas2:

• Market attractiveness:

- Market size

- Competitive presence and customer preference

- Customer spending patterns, budget cycles and purchase intent

- Channel trends, preferences and allegiances

• Customer insights:

- Specific customer needs and aspirations

- Buying behaviors, usage patterns, decision models

- Preferences, favorability and intentions

• Communications planning and ad testing:

- How target audiences receive information

- Which communications channels customers pay attention to

- Opportunities and vehicles for influencing target audiences

- Evaluation of alternative brand promises and calls to action and

the subsequent impact on target audience decisions or purchases

• Product and concept testing:

- Evaluation of product improvements, alternatives and packaging

- Evaluation of potential products and solutions, clarification of

needs, wants and preferences

• Customer satisfaction:

- Measurement of the quality of customer experience,

perceptions, reaction, loyalty and intent

• Pricing:

- Testing the response of price, feature, placement, packaging,

promotions and loyalty programs among target audiences

After consideration to the objectives has been taken, the development of a

research plan can take place.

Consider ing the designs and techniquesThe best approach to research is one that considers a variety of methods and

research designs. Start with secondary and tertiary research—research previously

2 “Marketing Minds Research - Research Objectives.” Marketing Minds Research - Online Market Research and Customer Surveys. Web. 03 Feb. 2011. <http://www.marketingmindsresearch.com/research_objectives.html >.

http://www.marketingmindsresearch.com/research_objectives.html

http://www.marketingmindsresearch.com/research_objectives.html



conducted by others but relative to your objectives—and then expand to research

conducted by your own team through primary research methods.

These methods can be performed on a variety of scales and, thanks to tools we’ll

address later in this paper, are accessible to practically any budget.

Traditionally, all research can be broken down into four designs, based on either

questioning or observations:

Quantitative research

Often what is referred to as traditional market research, this refers to the

numerical and statistical information gleaned from polls, surveys, Web analytics,

and the like. It’s great for measuring actions and seeing patterns and, by

definition, quantitative research is historical (meaning that it measures what’s

already happened) but it can yield powerful predictive intelligence when it’s

modeled well.3

Types of quantitative research include:

• Surveys

Generally easy to administer than other types

of market research, respondents are selected

at random or at will to answer a series of

predetermined, usually multiple choice or

yes/no answer questions. Surveys are an

incredibly affordable and flexible method of

research and can be conducted in a variety of ways, such as: direct

mail, comment cards, e-mail, websites and pop-ups, mall intercepts

and social media.

• Web analytics

Most websites are set up to measure who is visiting, when and how

often. Further information, such as what links are being clicked, the

order the site is navigated and what users do once they leave the

site, can also be collected to comprise numerical data on website

engagement. While most web analytic tools are free, they come in

varying forms of complexity and require a significant investment of

time to interpret and analyze.

3 Norman, Eric. “Market Research - Branding in the Age of Social: Gaining Insight Through Research :MarketingProfs Article.” MarketingProfs: Marketing Resources for Marketing Professionals. 09 Mar. 2010.Web. 03 Feb. 2011. <http://www.marketingprofs.com/articles/2010/3449/branding-in-the-age-of-social-gaining-insight-through-research>.

http://www.marketingprofs.com/articles/2010/3449/branding-in-the-age-of-social-gaining-insight-through-research






• Census data

This is research that is compiled based on factual statistics relating

to a population of people—birth rates, literacy rates, race,

geography, annual income. Some of it may be based on surveys,

while other data is based on information collected by hospitals and

other government entities.

Qualitative research

This type of research is more subjective than quantitative and includes interviews

and focus groups, but can be research that allows people to express their ideas

and feelings in open-ended prose. It’s great for uncovering motivations behind

actions, and is important for getting to the essence of brand-related beliefs

and decisions. It can help marketers better understand how a brand, product or

service is received and what might boost or impede progress, and what resonates

with target constituencies.

Types of qualitative research include:

• Open-ended interviews

Composed of questions that cannot be answered with a simple yes

or no. This type of interview gives you a lot of information, but

is time consuming for both the interviewee and interviewer. The

greatest benefit is first-person insight, including common trends,

emotional motivators, and general likes and dislikes of your

primary market.

• Observation

Direct observation can involve a researcher watching subjects and

taking notes in the background which could be from behind a one-

way mirror, video camera or website recording the happenings.

With participant observation, the researcher is actually part of the

situation being studied as with a moderated focus group or one-on-

one interviews.

• Focus groups4

Typically lead by professional facilitators, this is research that takes

place in small groups. “This technique is good if you need a range

of opinions,” says Kristin Schwitzer, president of Beacon Research,

a firm that specializes in innovative online research methods, based

in Annapolis, Maryland. In general, you want to get reactions from

4 Brown, Carolyn. “How to Conduct Qualitative Market Research.” Small Business and Small Business Informationfor the Entrepreneur. 25 Oct. 2010. Web. 04 Feb. 2011. <http://www.inc.com/guides/2010/10/how-to-conduct-qualitative-market-research.html >.

http://www.inc.com/guides/2010/10/how-to-conduct-qualitative-market-research.html






eight to 10 people. Traditionally done in a closed room, in the

past few years this method has expanded to include a webcam or

online bulletin board focus group, in which consumers participate

in an asynchronous group discussion over the duration of three to

four days. Participants answer questions from the moderator and

respond to images or video on their computer screen. Since focus

groups must be lead by trained professionals to be most effective,

they can be a more expensive form of market research.

Ethnographic studies5

Largely qualitative, this method of research involves the observer looking for

certain social behaviors among populations in their natural setting, either at one

time (cross-sectional) or over several time periods (longitudinally). Ethnographic

studies, unlike other forms of research, focus on the assumption that a person’s

behaviors are inherent and subconscious. Rather than asking users what they

want, it is more effective to focus on what users do, what frustrates them, and

what gives them satisfaction.

Examples of ethnographic research include:

• Product use analysis

Participants are asked to use a product or a marketing piece, like

a website, while they are observed. This helps to identify problems

with a product or obstacles in reaching target audiences with

marketing messages.

• Internet cookies

This is a means of digitally tracking website users to see

what other sites they visit, how long they stay and where they

click. Cookies can also be used to populate custom ads based

on user behavior.

Experimental techniques

For the most part quantitative, this method of research involves the

creation of a quasi-artificial environment in order to attempt to control certain

factors while manipulating variables.

5 Malhotra, Naresh K. Marketing Research: an Applied Orientation. Upper Saddle River, NJ:Pearson/Prentice Hall, 2007. Print.



Examples of experimental techniques include:

• Purchase laboratories

These simulated storefronts seek to observe the purchase behaviors

of individuals based on surroundings, placement and options.

• Test markets

This technique is usually the act of releasing a product or

launching a marketing campaign to a select number of individuals

prior to launching on a larger scale to determine and predict

the effectiveness of a product or campaign prior to a

big-budget rollout.

Knowing what quest ions to askNow that we’ve gone over the basic designs and techniques of marketing

research, how do you know what questions research should address?

Author and marketing expert, Sarah White, says that basic market research should

cover the following, based on previously outlined objectives6:

• Descriptive information: demographics, information

sources, influences

• How audiences use products or services: buying behavior,

usage traits, loyalty to specific brands

• Customer perceptions: likes and dislikes, perception of an

offering’s attributes, benefits and flaws

Descriptive information is often already compiled on certain populations

and available for purchase (or free of cost) to anyone. Sources like U.S.

census data and the Consumer Expenditure Survey conducted by the

Bureau of Labor Statistics can both be accessed online and offer great

insight into the “who, what, where” questions of market research. Things likepopulation size, geographic concentrations of certain populations or consumers,

and more can tell a marketer a lot about target audiences and may even help

pinpoint geographic locations to purchase mailing lists or Internet search ads.

6 White, Sarah, and Sarah White. The Complete Idiot’s Guide to Marketing. Indianapolis, IN: Alpha, 2003. Print.



Everything else falls into the category of “why” research—the psychographic

information. Large research companies like Forrester have a multitude of already

compiled market research covering this information on file for purchase.

Online market research toolsPerhaps the biggest reason why market research has become more accessible to

businesses and organizations of all sizes has to do with the Internet. A veritablepooh-pooh platter of tools now exist—most free or highly affordable—that

help marketers maintain a pulse on a target audience’s behaviors, opinions and

emotions. Let’s take a look at a few of these options …

Keyword search7

Keyword searches are Internet searches conducted on

keywords that people would use to find a website,

product or service. Tools like Google’s AdWords® tool,

WordTracker™ and Trellian’s Keyword Discovery Tool™are all highly regarded means of finding the best keywords

for a website, yes, but also for gaining customer insight.

According to Inc. Magazine, these can also help remind

marketers of product niches that they might not have

considered. There are other reasons to conduct keyword searches, too.

“First, you’re going to be reminded of product niches that you might not

of thought of.” says Jennifer Laycock, editor-in-chief of Search Engine

Guide, an online guide to search engines, portals and directories. “Second,these services will also give you a guesstimate of how many existing sites

already use that phrase,” Laycock continues.

Competitor links8

A traditional search engine can also help you check out your competitors,

their prices and their offerings. Try typing “link:www.[competitor’s

name].com” into Google to find out how many other sites link to your

competitor’s website.

“It is a great way to see a competitor’s link development and PR

campaigns,” says Shari Thurow, Web expert and author of the upcoming

book Search Engine Visibility. “Is the competitor promoting a product or

service similar to your own? Maybe you can get publicity because you have

a new or better product.”

7 Inc. Staff. “How to Use Internet Market Research Tools.” Small Business and Small Business Information for theEntrepreneur. Web. 04 Feb. 2011. <http://www.inc.com/guides/biz_online/online-market-research.html >.

8 Inc. Staff. “How to Use Internet Market Research Tools.” Small Business and Small Business Information for theEntrepreneur. Web. 04 Feb. 2011. <http://www.inc.com/guides/biz_online/online-market-research.html>.

http://www.inc.com/guides/biz_online/online-market-research.html

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Blogs9

Blogs are updated much more regularly than traditional websites and,

therefore, they can be another gauge of public opinion. Search blogs

by using blog-specific search engines, such as Technorati or Nielsen

BuzzMetrics’ Blogpulse®.

Online surveys

As mentioned, surveys are a fantastic and cost-effective means

of gauging public opinion. While not generally seen as scientific

as in-person or phone surveys that use a random sampling of

the population, online surveys are a low-cost way to do market

research about whether an idea or a product will be appealing

to consumers, how they use a website or garner brand

information, and more. Now many companies offer to conduct

online research for you or give your company the tools to carry out your

own surveying. Some online survey companies include EZquestionnaire,

KeySurvey, and WebSurveyor.

Social media tools

Social sites like TwitterSM, Facebook®, YouTubeSM, FlickrSM and others are

great tools with infinite possibilities. Marketers can use these sites to

not only listen to target audiences for trends and patterns in wants and

behavior, but also as a channel for distributing surveys and

requesting feedback.

Knowing when to ask for helpSometimes businesses and marketers are intent on primary research but don’t

have the budgets or the expertise to conduct market research in-house. Luckily,

there are many market research firms out there, from tiny consulting firms to

huge multinational corporations that can be recruited to do the detailed work.

But how do you find one that will best fit your company’s needs? Ed Erickson, of

Erickson Market Research, explains.10

First of all, Erickson warns marketers to not get intimidated. Instead, be inquisitive

by asking three very specific questions of each potential research supplier11:

9 Inc. Staff. “How to Use Internet Market Research Tools.” Small Business and Small Business Information for theEntrepreneur. Web. 04 Feb. 2011. <http://www.inc.com/guides/biz_online/online-market-research.html >.

10 Erickson, Ed. “Strategy - Four Questions for Choosing the Right Research Firm : MarketingProfs Article.”MarketingProfs: Marketing Resources for Marketing Professionals. 6 Mar. 2007. Web. 04 Feb. 2011.<http://www.marketingprofs.com/7/choosing-right-research-rms-erickson.asp>.



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1. Who, specifically, is going to do the work?

2. What methods do you recommend for this project?

3. How, exactly, will your proposed approach help me make

marketing decisions?

4. How do you report your research findings?

“There is no single right or wrong answer to any of these questions,” says

Erickson. “The nature of the project and the relationship you want with the firm

will determine the “right” answers.”

In a recent MarketingProfs article, Erickson goes on to explain why each question

should matter to the marketer and what to listen for in a research firm’s answer.

Here’s an overview of his explanations …12

1. Who, specifically, is going to do the work?

As with any service-oriented business, the people actually doing the work will

have the greatest impact on the project’s success or failure. That’s why it’s often

said that you hire the people, not the company.

Meet the key players upfront so you can more clearly evaluate the firm’s ability

to deliver. Establish your expectations for outcomes and processes at the start.

Also, evaluate how well those working on the project fit with your work style and

company culture.

2. What methods do you recommend for this project?

The firm should be able to clearly communicate what the appropriate

method is, how to best execute it, and why they recommend it. Do not

settle for a vague description of the work to be done. Instead, use the

following approach for

this conversation.

First, communicate the main goals for the research project. Then,

fill in as many specifics as you can about the product, the company’s

marketing and distribution channels, and what you already know about the

market. This should give the firm enough information to describe, in detail, its

data collection and analytic approach to meeting the objectives. Ask about the

alternatives, and discuss the pros and cons of each. Be comfortable that the

people you’re asking to do the work are knowledgeable and experienced.






3. How, exactly, will your proposed approach help me make marketing decisions?

Once the firm has outlined the general approach, insist it relate the specific

techniques to be used directly to the research objectives. A research firm that

understands your company’s strategy and business issues will provide you with

insight that you can actually use. Look for a firm that begins with the end

in mind.

4. How do you report your research findings?

The research report must contain the appropriate analysis and conclusions,

and it must be presented in a way that makes sense for your organization. The

presentation of results must tell the story in the data. It must also speak clearly

to the research objectives and provide useful, realistic direction for marketing

decision-makers. This is why it’s so important to hire a research

firm that understands the marketing strategy behind the project.

A well crafted report will have the following:

• A format and tone that respects your

company’s culture

• Charts and other graphics that clearly display

rich information

• Text that discusses implications and makes

recommendations

from data

“Just as there is someone for everyone” says Erickson, “There is a research firm for

every project. Don’t settle for a firm that happens to be available.”13

Top f ive researching trends for 2011Now that we’ve addressed a basic overview of market research, let’s delve into

the top trends in the industry for the year ahead.

1. The demand for holistic data continues

This involves businesses and marketers wanting to be able to

integrate more sources of data to get a complete view of the target

audiences. Experts say that this information will continue to come

not just from survey research or qualitative research but from

secondary sources, syndicated sources, social media and the Web,

and marketing analytics.14


14 Moran, Robert. “Interviews.” Future of Insight. Web. 04 Feb. 2011.<http://www.futureonsight.com/interviews/ >.


http://www.futureofinsight.com/interviews/





2. The growth of integrated analytics emerges

Some research experts are quick to point out that more and more

funding is going into analytics. They argue that this is an indicator

that new tools that combine analytics and research will continue

to become available in the marketplace. Businesses and marketers

looking to coalesce research with analytics will benefit from these

emerging tools. 15

3. Market research as a business conscience becomes a priority

With social media currently owning many organizations’ public

relations agendas, it’s really easy for market research departments

to be firefighting for a living, responding to each social media

outburst. But the real question market research should answer is

this: How damaging are these outbursts to the organization? Is the

uproar about a genuine problem with the product, or just hype? In

fact, throughout 2011 Forrester researcher Reineke Reitsma predicts

that market researchers will focus on how to make sense of all

the chatter that’s already happening on social networks, integrate

social intelligence into their research, report these insights into the

organization, and uncover major issues before these actually hit

the groundswell.16

4. Neuromarketing will continue to expand as a common

research method

As mentioned in a previous Blue Paper on the topic,

neuromarketing is a subset of market research that looks at what

actually happens in the brain when consumers make purchase

decisions. Covering everything from font usage, color, image

placement and more, this research is highly precise and very

scientific. It is currently a relatively expensive method of research,

but experts predict that it will continue to become a standard and

more affordable method in the average market researcher’s arsenal.

5. Mobile research will lead to faster and easier survey response and

engagement from users

Nokia® gets the credit for pioneering this trend and many

researchers have taken note for their own clients. What started as

15 Moran, Robert. “Interviews.” Future of Insight. Web. 04 Feb. 2011.<http://www.futureonsight.com/interviews/ >.

16 Reitsma, Reineke. “Trends That Will Shape Market Research In 2011: Organization, Technology, And Social | Forrester Blogs.” Forrester Blogs | Making Leaders Successful Every Day. 20 Dec. 2010. Web. 04 Feb. 2011.<http://blogs.forrester.com/reineke_reitsma/10-12-20-trends_that_will_shape_market_research_in_2011_organization_technology_and_social >.

http://info.4imprint.com/bluepapers/neuromarketingwhen-science-and-marketing-collide/



http://blogs.forrester.com/reineke_reitsma/10-12-20-trends_that_will_shape_market_research_in_2011_organization_technology_and_social








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an experiment in integrating face-to-face interviews with mobile

engagement to measure and explore the levels of brand loyalty

among existing customers, turned into a marketing campaign in

and of itself. The mobile device manufacturer asked users to upload

their encounters, along with thoughts and images to personalized

mobile blogs, called “Moblogs.” They then were also asked to

participate in interviews from time to time to discuss emotions

presented in these blogs pertaining to different brands. Results

of the research found that participants created sub-communities

surrounding brands they blogged about and discussed their

emotions and opinions with one another to create a sense of

belonging. Nokia was able to walk away from the research with

clear insight on what emotions were necessary for brand loyalty

among their customers—comfort, simplicity, inclusivity, exclusivity,

ethics, style and innovation.17

Using the dataThe information that has been gathered throughout the entire research process

is only as good as how it is interpreted and implemented into a marketing

campaign or business strategy. Many companies spend thousands of dollars

in the marketing budget on research, only to have survey results sit in a filing

cabinet collecting dust.

Recruit help from the experts if necessary, but the objective here is to identify

patterns, themes and ideas in the results of your research.

If your business or organization pursues market research, be sure there are

processes in place to ensure that the data collected is then translated and

implemented into the marketing mix. Identify staff members whose responsibility

it will be and identify checks and balances for ensuring that data is transferred.

Research is an important component to any marketing or business plan. Take the

words of Ogilvy to heart and harness the power of research for your company

today—you won’t regret it.

17 Strohmenger, Roxana. “A Cool Research Methodology That I Predict You Will Use | Forrester Blogs.” Forrester

Blogs | Making Leaders Successful Every Day . 18 Jan. 2011. Web. 04 Feb. 2011. <http://blogs.forrester.com/roxana_ strohmenger/11-01-18-a_cool_research_methodology_that_i_predict_you_will_use>.









