1. Adapted from J. Scott Armstrong for use in lectures related to Persuasive Advertising. File: Target-market Research-R10 Lectures for AdPrin/Testing Ads Sept 2014 Target-Market Research

2. Learning Diary The lectures follow an experiential learning experience. To make this work properly: 1.Obtain a learning diary (paper). A 10 x 13 bound diary is suggested. 2.Keep it up to date. 3.Take the learning diary with you to all class sessions. 4.For self-learners, use the diary to track your learning progress for all of your learning activities. 2 Adprin.com

3. Objectives of this session To understand and apply these principles and techniques (not to convince you). Ask for clarification as needed. Set a goal for yourself on how many principles and techniques you plan to use by the end of this session. Even a goal of one will help you. Put this in your learning diary now. Note: We will discuss only some of the slides. When you go through the lecture on your own, view it in “Slide Show” and follow the experiential procedures. Adprin.com

4. Procedure Focus on understanding. Record questions in your learning diary that will help you to apply the techniques or principles, then, after you decide which ones you want to apply, try to answer these from the readings. If not clear, ask others for help. 4 Adprin.com

5. When is it useful to do target-market research? Describe when you should use target market research. Spend 4 minutes to write your ideas in your learning diary. If working in a group, share your ideas with a partner. Then, go to the next slide. 5 Adprin.com

6. When to do target-market research? Three conditions are necessary if target-market research is to be of any value: 1. Management is uncertain about what to do. (Ask them.) 2. Management is willing to consider possible alternative approaches. (Ask if they are willing to experiment.) 3. Management specifies in writing what information will change their decisions prior to doing the research. (It may help to provide them with possible outcomes in order to assess their decisions.) For evidence on this procedure see this paper.this paper 6 Adprin.com

7. Target-Market Research What advertising decisions will be affected? Write your prediction in your learning diary. – Persuasive message for each target market? – What media to reach each target market? Possible things to learn: – Which different target markets (TM) are promising? – How large is each TM? – Who is in each TM? – What does the TM need to know? – When do they need to know? – Where will they expect to find out? 7 Adprin.com

8. What is already known about the TM? Review the advertisers’ current knowledge based on: Experts (within the organization; media) Published materials 8 Adprin.com

9. Possible relevant information about the TM 1.Purchasing power (income/wealth)? 2.Final consumer or buying agent (e.g., business vs. gift)? 3.Cognitive skills? (e.g., reading level) 4.Age? (e.g., visual or audio problems) 5.Current consumer? (or new to brand) 6.Expertise on the product category? 7.Prior beliefs in agreement with the offering? 8.Rational or emotional thinkers? 9 Adprin.com

10. Sources of target-market information NDI* Surveys Delphi Experts in market x x Potential customers x x * Nondirective interviews 10 Adprin.com

11. Gaining commitment for TM research 1.Think small. Use “pilot studies” for learning and for gaining commitment from the client. 2.Use sequential sampling to allow for revisions and client involvement. Do not surprise the client. 11 Adprin.com

12. Designing target-market surveys 1.Consider prior research, expert surveys. and consumer surveys to learn about target markets. 2.Start with non-directive interviews with a handful of potential customers. 3.Pre-test the questions. 4.Determine an optimal sample size. -But start with a very small sample. -Increase as the client desires. 5.Become familiar with Don Dillman’s book on survey research.Don Dillman’s book on survey research 12 Adprin.com

13. Estimate uncertainty Estimate total error (and reduce error): 1.Sampling (representative and large) 2.Non-response (increase the response rate and estimate nonresponse bias)increase the response rate estimate nonresponse bias 3.Response (use alternative wording and pretest questions) 13 Adprin.com

14. Reporting on your research 1.Bring in research as needed to support recommendations. 2.Use statistics to communicate information (See The Visual Display of Quantitative Information by E. Tufte).The Visual Display of Quantitative Information 3.Do not use statistical significance. Use confidence intervals instead.Do not use statistical significance 4.Report on shortcomings of your research. 5.Provide full disclosure on data and methods. See checklist for oral and written reports.oralwritten 14 Adprin.com

15. Applications Write at least 2 ways to apply something from this “lecture.” Spend at least 5 minutes on this. If working in a group setting, exchange your applications with a learning partner to provide useful suggestions to him/her and to see if there are useful, new ideas for you. 15

16. Ideas for Applications of Techniques for Target Market Research If you are in a class, test your advertisements for the “house ad” by using the techniques discussed in this lecture.house ad If you are a self-learner apply the testing techniques to advertisements in you organization, or to a cause that is of interest to you. 16 Adprin.com

17. Techniques In your diary, describe the techniques that you were able to use for your target market research and rate your success (e.g., creativity, objective setting)rate your success 17 Adprin.com

18. Advice on learning techniques One study found that fewer than 10% of students were successful in applying new knowledge. This went to 20% if they actively applied what they were taught during a class session. It went to 90% when they worked with a learning partner and coached each other. Select techniques to applytechniques 18 Adprin.com