1. A Presentation for the City of Loveland Community Marketing Commission April 20,2016

2. What is Advantage Research? Advantage Research; www.advantageok.com is a local consulting business that specializes in marketing research. We help clients link their products, services and communications to the actual needs of the marketplace with actionable insights from online surveys, focus groups and secondary marketing data.www.advantageok.com

3. Who is Ross Livingston? Principal of Advantage Research Vice Chair of the Open Lands Advisory Commission for the City of Loveland Volunteer for Alternatives to Violence Avid cyclist, swimmer and hiker Resident of Loveland since 2008

4. What is the value of marketing research? In most cases, marketing research is used to help clients make informed business decisions based on samples that represent a targeted population group. Insights from online surveys and focus groups are frequently used to:  Clarify problems  Reduce uncertainty  Investigate change within the marketplace The ultimate outcome is informed decision making which results in reduced risk, sustained growth and optimal resource allocation.

5. How does the marketing research process actually work? My approach is based on an 11 step custom research methodology that is always centered on the client's marketing and information needs.

6. Step 1: Determine the Need for Marketing Research Do you need to clarify a problem, reduce uncertainty or investigate change within the marketplace? Do you need (or value) marketing research insight to make informed business decisions? If so, is the CMC prepared to take action based on sound research?

7. Step 2: Define the Problem or Situation What do you need to know when the project is finished? What information is needed to bring your marketing plan up-to-date? What are some of the key insights from past research? Were those recommendations implemented? What are the symptoms of the problem? What are the possible solutions to this problem?

8. Step3: Establish Research Objectives What do you want to explore or measure? Who is your target population? What comparisons do you want to make? What information gaps need to be closed? How will this research be leveraged to make important marketing decisions?

9. Step 4: Determine Research Design Exploratory Research: Used to gain insight and understanding about the general nature of a problem or situation. In-depth interviews and focus groups are the most common forms of exploratory marketing research. Insights from exploratory research are often used as a foundation for conclusive research. Conclusive research is more structured than exploratory research and the sample size is larger. Online surveys are classified as a form of conclusive marketing research when inferences are based on random sampling-and a sample size that is within ± 5% of the actual population value.

10. Step 5: Identify Information Types & Sources Primary Research: Information gathered specifically for the research objective. i.e. survey, focus group and observational methods. Secondary Research: Searching for and interpreting existing information which is relevant to the research objectives. i.e. archived reports. 1) Internal Sources 2) External Sources

11. Step 6: Determine Methods of Accessing Data Primary Research Online Mail Telephone Face-to-face Secondary Research Internal databases External databases Internet

12. Step 7: Design Data Collection Forms Questionnaire development Discussion guide development Gain approval from the client Revise as needed Finalize & distribute

13. Step 8: Determine Sample Plan & Size Define the targeted population group. Obtain a listing (or create your own listing) of that population group. Determine sample size & method. Draw sample from targeted population.

14. Step 9: Collect Data Qualitative: Audio & video recordings of focus groups. * Quantitative: Live online survey for a defined time period or until the desired net sample size is reached. *with participant consent

15. Step 10: Analyze Marketing Data Qualitative: Characterized by verbatim excerpts and common themes that have become apparent. Conclusions are not based on statistical analysis. Quantitative: 1) Basic, non-technical data analysis. i.e. mean, median & mode with bar and pie charts. 2) Advanced, technical data analysis techniques. 2a) Univariate techniques (single measurement of each element analyzed in isolation) i.e. t test, chi-square. 2b) Multivariate techniques (two or more measurements of each element and the variables are analyzed simultaneously) i.e. regression and factor analysis.

16. Step 11: Prepare & Present the Final Report Title Page Table of Contents Executive Summary Research Objectives Research Design Data Collection Data Analysis Conclusions Recommendations Appendices

17. Client: Manhattan, Kansas Chamber of Commerce Used with the client’s permission Primary research objective  Evaluate 24/7 marketing campaign by measuring the reach and influence of newspaper, radio and television advertising that was used to promote Manhattan as a destination in north-central and northeastern Kansas.

18. Approach Client wants to determine if their radio, television and newspaper campaigns are getting the job done. We recommended conclusive marketing research in the form of an online survey. Developed valid survey questions to measure reach and motivation of the 24/7 advertising campaign.

19. Sample Size & Composition Targeted population: Women between the ages of 26 and 55 with a household income equal to or greater than $30,000 from select counties in north-central and northeastern Kansas. Initial sample size: 4,740 survey invitations based on client’s precision level of 4.5% and the anticipated completion rate for this project. Net sample size 703.

20. Data Collection Survey invitations directed participants to Advantage Research website. Click on 24/7 logo which was placed there on a temporary basis. When survey participants clicked on the 24/7 logo they were re-directed to the actual survey portal. Unique password and e-mail address allowed access to the survey.

21. Data Analysis Cross-tabulation analysis enabled us to measure the reach of newspaper, radio and television advertising for the 24/7 marketing campaign. Cross-tabulations describe two or more variables simultaneously i.e. motivation and the reach of print advertising. Chi-square test was performed on each of the cross-tabulations which enabled us to determine that there was a statistically significant association between reach and the motivational effect of the advertising campaign. On the other hand, there were meaningful differences between reach when we compared specific advertising mediums. Reach is the critical benchmark for advertising evaluation because advertising will not work unless someone is exposed to it.

22. Cross-tabulation Example Have you seen any of the Manhattan 24/7 advertisements in the newspaper? Yes Have you seen any of the Manhattan 24/7 advertisements in the newspaper? No Total Count Has the Manhattan 24/7 advertising campaign motivated you to shop in Manhattan? Yes Count: 84 60% Count: 56 40% 140 100% Has the Manhattan 24/7 advertising campaign motivated you to shop in Manhattan? No Count: 109 19.4% Count: 454 72.5% 563 100% Total Count193 (27.5%)510 (72.5%)703 (100%) © 2016 Advantage Research. All rights reserved.

23. Chi-Square Test for Cross- Tabulation Table Advertising Medium Chi-Square ValueSig.Phi Coefficient Radio80.340.000.338 Television83.450.000.345 Newspaper92.970.000.364 The chi-square statistic is used to test the statistical significance of the observed association in a cross-tabulation table. Sig values less than.05 indicate statistical significance based on a 95% confidence interval. The phi coefficient measures the strength of individual associations. When marketing variables are perfectly associated, phi assumes a value of 1.

24. Conclusions Minor performance differences between selected advertising mediums with regards to their effect on shopper motivation. Television has the best reach followed by radio and newspaper advertising.

25. Recommendations Use television and radio advertising to promote Manhattan as a destination. Discontinue newspaper advertising.