TWO KINDS OF MARKET RESEARCH Primary –Surveys, polling –Focus groups –Observation –Trend towards “relationship marketing” Air Miles,etc. Secondary –Existing reports and data
USES OF MARKET RESEARCH Segmenting market –Demo, psycho, geo Test new and existing products Pre-test campaigns Set baselines (e.g. 30% awareness) Post-test to see if objectives (e.g. 60%)
Paradox of Market Research It is an essential part of advertising process, yet the process is terribly flawed!! For example, people can lie on surveys, or fall into “group think” in focus groups Even more importantly, people often do not understand what motivates them; perception and consciousness are very slippery phenomena
BRANDS Originally used to counter powerful wholesalers Early brands: Levis (1873) Budweiser (1876) Brands have two components: –Rational: look, feel, physical attributes, claims –Irrational: what you feel: emotional, intuitive, sub-conscious. Hidden, harder to measure.
BRANDS Mid-80’s, new type of companies emerged: –Brands were the business! Nike, Hillfiger, etc. –Whole ideas was to make people feel a certain way by creating a brand image
BRANDS Key point 1: Many brand companies did not actually make anything Figure out what people want to feel, think, and be like Create artificial personalities (brands) that re- create, reflect and embody these feelings, thoughts, and wishes Some brand co’s made a product but basically undifferentiated goods (e.g. COKE, Gap, Nike),
BRANDS Key point 2: Brand “escalating arms race” Only way to create brand was to advertise, so: you had no choice but to advertise like crazy (since everyone else was) Mad rush to find new ways/places to advertise: schools, sporting events, bathrooms. Bush/Olympics
BRANDS Brands co’s and their products really nothing more than a vehicle for conveying pre-defined attitudes (Pavlov) Using market research; co’s know: What we want to say to the world about ourselves What we want to think and feel to be happier with ourselves and the world They “position” brands (falsely) to address these inner needs.
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