1. The Process of Advertising Research

2. Purpose  To understand the sequence of steps underlying the process of ad research  To specify the decisions/events occurring at each step

3. Broad Stages of the Systematic Research Process  Preliminary discussions and agreements  Planning & data collection  Application of research findings

4. Preliminary Discussions/Agreements  [Marketing] Problem Definition What is the issue facing the brand?  NOTE: The consumer’s behaviors, perceptions, beliefs are a symptom of the problem, but not likely to be the problem itself

5. Preliminary Discussions/Agreements  Marketing problems are ALWAYS product-focused Example: Product sales have declined within the Northeastern U.S. Market share and profits have declined among the core user group of males, 18-24

6. Preliminary Discussions/Agreements  Research Problems are driven by three specific needs: 1. To increase knowledge and understanding Ex.:What are the potential effects of repositioning our brand of potato chips as a “healthy snacking alternative?”

7. Preliminary Discussions/Agreements 1. Selection of Alternatives or Evaluation of Alternative Actions Ex: Which product package will be most effective – Package A or Package B? 2. To assess problems and opportunities Ex: Do opportunities exist to appeal to Internet users based on gender?

8. Research Problem Structure  Three components of a research problem Problem identification Justify the need for research  Evaluating the costs of conducting research relative to its benefits Specifying informational needs  Avoids the risk of incomplete research or research unresponsive to client needs

9. Example of the Complete Problem Statement  Two different product packages have been developed for evaluation. The brand is trying to decide which package will be most effective in generating sales. Problem Identification

10. Example of the Complete Problem Statement  Two different product packages have been developed for evaluation. The brand is trying to decide which package will be most effective in generating sales. Since no prior information exists about these packages, research is needed to determine relative sales of each package over the 6 months of test market. Justification for Research

11. Example of the Complete Problem Statement  Two different product packages have been developed for evaluation. The brand is trying to decide which package will be most effective in generating sales. Since no prior information exists about these packages, research is needed to determine relative sales of each package over the 6 months of test market. Research will evaluate 1) package preference; 2) product perceptions; and 3) uniqueness. Specification of needs

12. Planning & Data Collection  Identify the type of research Access current knowledge through secondary research If necessary, conduct primary research  Exploratory research (Qualitative)  Descriptive research (Quantitative)  Experimental research (“Cause and Effect”)

13. Planning & Data Collection  Sampling Probability vs. Non-probability sample  Data Collection Method Personal? Mediated? Survey? Interview? Design the research instrumentation  Budget and Timing

14. Planning & Data Collection  Get research proposal approved prior to research implementation  Collect Data  Prepare Information for analysis Secondary vs. Primary research

15. Application  Analyze data  Interpret data and make recommendation(s)  Post-presentation decision making by management