Demystifying Market Research Be Knowledge Driven�Make the ...

Demystifying Market Research: Be Knowledge Driven—Make the investment Pay Presented to SMPS LI November 15, 2006 By ADM Marketing & Research Consulting Demystifying Market Research Why should you conduct market research?  How should you conduct market research?  What can you do with the results?  Case Studies   Textile Mill: Creative use of results  ThomasNet® and Google ™: Research for ink  Other cases Demystifying Market Research--SMPS November 15, 2006 2 Why should you conduct market research? Would you drive at night without lights?     You would not be able to see where the road was heading You would not be able to see obstacles in the road You would miss important landmarks You would have a limited view of whom else was on the same road and what they were doing Demystifying Market Research--SMPS November 15, 2006 3 Why should you conduct market research? If you don’t you’re taking a gamble…     you may not be able to tell in which direction the market is going you may not know about obstacles that can stand in the way of your success you may not detect variations in different sectors of your audience that would impact your marketing and communications plans you may not be seeing all of your competitors and what they are up to Demystifying Market Research--SMPS November 15, 2006 4 Why should you conduct market research? …but you don’t live under a rock!    You talk to your sales people, your colleagues, some clients, and even some competitors Your read the newspaper, trade publications, business news You attend SMPS and other business organizations Demystifying Market Research--SMPS November 15, 2006 5 Why should you conduct market research? Be knowledge-driven, not assumption-driven!   Don’t make decisions based on the input of just a few people—some of whom may not be impartial or balanced Go right to the source     Clients Suppliers The public Influencers and stakeholders Demystifying Market Research--SMPS November 15, 2006 6 How should you conduct market research? Objectives  What do you want to know about? positioning  New service development  Brand management and image  Communications—internal or external  Customer or employee relations management  Publicity—Research For Ink  Strategic    Who is the audience and how big is it? When do you need results? What is your budget? Demystifying Market Research--SMPS November 15, 2006 7 How should you conduct market research? Methodology  What is the best way to accomplish the objectives?  Secondary    Research Published information Basic market or population data Web sites Quantitative—surveys Qualitative—focus groups, IDIs  Primary Research   Demystifying Market Research--SMPS November 15, 2006 8 How should you conduct market research? Secondary Research  Trends analysis    Trade publications General business publications Mass media Annual reports Web sites     Competitive intelligence   Company web sites Hoovers.com ThomasNet.com   Press releases Advertising/marketing  Demographics and census data Demystifying Market Research--SMPS November 15, 2006 9 How should you conduct market research? Primary Research—Quantitative  Surveys     Telephone Online Mail Central location Large sample provides reliable data Best for go/no go decisions Gives you a balanced view of the audience Ability to segment a large population Sophisticated analytical methods can reveal even more  Advantages       Disadvantages  Cost and timing  Inability to drill down for “how”s and “why”s  Sampling issues, especially for online surveys Demystifying Market Research--SMPS November 15, 2006 10 How should you conduct market research? Primary Research—Qualitative  Methods  Focus groups, including dyads and triads, usually conducted in a twoway mirrored facility  Individual Depth Interviews (IDIs), by phone or in person  Advantages      Better for sensitive subjects Ability to drill down for “how”s and “why”s Can give you quick results Allows management team to view clients/audience Generally videotaped so other team members can view the discussion  Disadvantages    Not a representative sample Not good for go/no go decisions Group dynamics can skew results (therefore, multiple groups recommended) Demystifying Market Research--SMPS November 15, 2006 11 What can you do with the results?  Development/management of services  New services  Re-introduction of a brand or product line  Corporate communications and advertising  Brand management and logos  Company, brand positioning  Advertising effectiveness and “disaster checks”   Client and employee relations   Problem detection and correction Sales support White papers, input for sales calls  Seminars for clients or prospects  Publicity and public relations  Generate “news” for press releases, user meetings, web sites Demystifying Market Research--SMPS November 15, 2006 12 Traps  Make sure the survey is designed and executed properly  “Quick and dirty” surveys generate more questions than they answer Spend enough to make it worthwhile, but not too much for the effort it is supporting  Don’t overstate or misstate your case if you are publishing any results  Demystifying Market Research--SMPS November 15, 2006 13 Summary Conduct research when you want to learn more about a market or audience, how you are perceived, or when you want to generate publicity  Do it right and don’t overstate the results  Increase the ROI by using the results in more than one way  Demystifying Market Research--SMPS November 15, 2006 14 Case Study Textile Mill: Creative use of results Textile Mill Canadian textile company that markets its own brands in Canada but is a major private label provider in the US for Herman Miller, Maharam, and other prominent suppliers  Produces a sustainable fabric line for office, hospitality, healthcare, and other applications  Demystifying Market Research--SMPS November 15, 2006 16 Objectives To find out about Macro- and Micro-trends in Interior Design for Corporate and Hospitality settings  To generate input for the company’s design team  To generate input for seminars presented to major customers on color and design trends  Demystifying Market Research--SMPS November 15, 2006 17 Methodology   Secondary research  Revealed micro-trends in both industries  21 IDIs with senior designers in top firms that work in either (or both) of the targeted sectors 3 focus groups with senior designers and 1 group with project managers and librarians   2 groups held in Chicago at Neocon, last June 2 groups held in New York City two weeks later   Respondents filled in additional questionnaires that required samples of fabrics they specified in several seating and paneling categories Budget: $56,000 Demystifying Market Research--SMPS November 15, 2006 18 Results  Major presentation to management team revealed design trends, fabric preferences and usage patterns  Findings used by design and sales teams   Additional questionnaires were submitted by 25 respondents, yielding dozens of fabric samples for design and color analyses Seminars conducted for major private label customers Demystifying Market Research--SMPS November 15, 2006 19 Case Study and Research For Ink Objectives     To show how small industrial companies use search engines to buy and sell products and services they need To promote the use of Search Engine Marketing (SEM) through ThomasNet® and Google™ To generate publicity for both companies and position them as resources for small industrial companies To generate information for other promotional activities    Workshops White paper Newsletter Demystifying Market Research--SMPS November 15, 2006 21 Methodology  Online survey of target audience   590 Internet buyers 331 Internet sellers    About two-thirds of the respondents came from ThomasNet subscribers; the rest were from purchased lists Extensive questionnaire which asked all about purchasing and marketing online Budget   Research: $52,000 White paper and newsletter articles: $2,250 Demystifying Market Research--SMPS November 15, 2006 22 Results  Press release published in general and trade magazines and newspapers (print) and online  Placements appeared for a full year   Findings used to create a seminar on how to market effectively online, given to small businesses in several cities Findings also used for ThomasNet newsletter and a white paper for clients and sales reps Demystifying Market Research--SMPS November 15, 2006 23 Other Case Studies Strategic Positioning Corporate Training/Change Management Firm  Objectives   Assess change management needs among medium-sized firms Assess client’s image vs. competitors Sr Human Resource managers and “economic buyers” (CFOs) Telephone interviews with 1,000 executives Budget: $150,000  Audience   Method    Results  Detailed analysis, including perceptual map, comparing the client’s image with those of major competitors Demystifying Market Research--SMPS November 15, 2006 25 Brand Management New England Law Firm  Objectives   Assess image of the firm among clients and prospects Assess economic environment by targeted industries General Counsel in client and prospect organizations Partners in the law firm  Audience    Method     25 in-depth interviews with clients/prospects 8 interviews with partners Secondary research to assess regional economic environment Budget: ~$20,000  Results The firm’s strengths and weaknesses were described and compared among clients, prospects, and partners  Growth industries were identified and compared with industries in which the firm had experience  Demystifying Market Research--SMPS November 15, 2006 26 External Communication Auto Insurance Advertising Agency  Objectives   Assess image of auto insurance agency chain Assess demographic and competitive environment Franchisees, Consumers Secondary research     Audiences   Method Database search Demographics Web sites   In-depth interviews with 5 insurance brokers—4 franchisees, 1 independent agent  Budget: $2,900  Results  Information provided the basis for creation of communications strategy and advertising campaign development Demystifying Market Research--SMPS November 15, 2006 27 Internal Communication Public Relations Agency  Objectives  Assess employee issues due to rapid growth   Audience  All levels of staff, in all offices of this agency returned by 88% of Method  Self-administered questionnaire staff  Results highlighted and prioritized  Presentation of findings to entire staff Demystifying Market Research--SMPS November 15, 2006 28  Employee issues Customer/Client Relations Musical instrument manufacturer/distributor   Objectives   Uncover and evaluate retailer service issues Owners of independent music stores all over the US Audience Method     30 individual depth interviews, conducted at national trade show Online survey of 215 other independent retail customers Budget: $27,000 Uncovered service issues and their relative importance Quadrant analysis helped client to set priorities in addressing these issues Demystifying Market Research--SMPS November 15, 2006  Results   29 Q&A Thank you for attending!