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1 Advertising Research

2 Five Basic Methods of Market Research Source: Dun and Bradstreet Media, AllBusiness.com While there are many ways to perform market research, most businesses use one or more of five basic methods: surveys, focus groups, personal interviews, observation, and field trials. The type of data you need and how much money you re willing to spend will determine which techniques your business. 1. Surveys. With concise and straightforward questionnaires, you can analyze a sample group that represents your target market. The larger the sample, the more reliable your results will be. In-person surveys are one-on-one interviews typically conducted in hightraffic locations such as shopping malls. They allow you to present people with samples of products, packaging, or advertising and gather immediate feedback. In-person surveys can generate response rates of more than 90 percent, but they are costly. With the time and labor involved, the tab for an in-person survey can run as high as $100 per interview. Telephone surveys are less expensive than in-person surveys, but costlier than mail. However, due to consumer resistance to relentless telemarketing, convincing people to participate in phone surveys has grown increasingly difficult. Telephone surveys generally yield response rates of 50 to 60 percent. Mail surveys are a relatively inexpensive way to reach a broad audience. They're much cheaper than in-person and phone surveys, but they only generate response rates of 3 percent to 15 percent. Despite the low return, mail surveys remain a cost-effective choice for small businesses. Online surveys usually generate unpredictable response rates and unreliable data, because you have no control over the pool of respondents. But an online survey is a simple, inexpensive way to collect anecdotal evidence and gather customer opinions and preferences. 2. Focus groups. In focus groups, a moderator uses a scripted series of questions or topics to lead a discussion among a group of people. These sessions take place at neutral locations, usually at facilities with videotaping equipment and an observation room with one-way mirrors. A focus group usually lasts one to two hours, and it takes at least three groups to get balanced results.

3 3. Personal interviews. Like focus groups, personal interviews include unstructured, open-ended questions. They usually last for about an hour and are typically recorded. Focus groups and personal interviews provide more subjective data than surveys. The results are not statistically reliable, which means that they usually don't represent a large enough segment of the population. Nevertheless, focus groups and interviews yield valuable insights into customer attitudes and are excellent ways to uncover issues related to new products or service development. 4. Observation. Individual responses to surveys and focus groups are sometimes at odds with people's actual behavior. When you observe consumers in action by videotaping them in stores, at work, or at home, you can observe how they buy or use a product. This gives you a more accurate picture of customers' usage habits and shopping patterns. 5. Field trials. Placing a new product in selected stores to test customer response under real-life selling conditions can help you make product modifications, adjust prices, or improve packaging. Small business owners should try to establish rapport with local store owners and Web sites that can help them test their products. Evolution and Revolution in Qualitative Research

4 Source: Article from Issue 454!!! By Gill Ereaut We inhabit a world in which qualitative modes of thought are highly relevant, even essential. As businesses get to grips with postmodern marketing, and struggle to turn data into information, the days of 'soft' thinking are with us. The ability to make business sense from messy, ambiguous evidence about consumers, markets and trends has never been more highly valued. Brand integration, too, means that unpicking how brands and people relate to each other will become more relevant to more parts of more organizations. We may well see qual researchers, who know about these things, working in new areas such as HR or customer services. So the climate for qualitative thinking as a business service is excellent. But how does 'qualitative thinking' relate to what we know as 'qualitative research'? I would say these two ideas are at last becoming productively detached from each other. The challenge for qualitative research has always been turning a hard-to-pindown mode of knowledge generation into a set of research products. We have to take the qualitative 'idea' systematic but interpretative analysis of the world and turn it into things clients can understand, see the benefit of, and be willing to pay for.!we have to turn intellectual skills into hard, tradable merchandise. Is the focus group dead? The standard group discussion has provided a fast, cost-effective, flexible answer. For over 20 years, focus groups and depth interviews have reigned supreme, and for good reason. Interviewing and analysis styles might differ widely between researchers and across cultures, but the basic format is easily understood, immediate and visible. It has been easy to sell groups, easy to cost them, and there is an infrastructure to support them. The development of this clear, efficient unit of service fuelled the massive expansion of qualitative research from the late 1970s onwards. But it is no longer possible or sensible to represent a whole research philosophy with a single method. People are thinking radically about the kinds of

5 qualitative services there could be. They are taking a wider view of what constitutes 'qualitative market research', bringing other data-collection and analysis processes under this heading. They are putting real expertise in place to deliver complementary approaches; and being brave and bold about these alternatives, their benefits, their organization and pricing. It has meant suppliers and clients alike working outside their comfort zones and rethinking business models. Does this mean that focus groups are dead? Certainly not. They remain invaluable, but they are beginning to share centre stage with other methods. And it looks like qualitative research is undergoing long-overdue differentiation and segmentation. At one end, businesses need answers to certain questions again and again, and they need them quicker and cheaper. Fast-and-furious focus group projects will be used for immediate feedback on straightforward issues, or where some information is simply better than none. 'No frills' groups harness the time and cost savings offered by panel recruitment, mobile connectivity and online methods. But at the other end, clients have more need than ever to understand the texture, context and meaning of consumers' lives. And they are increasingly willing to use complex research methods with or without more sophisticated varieties of consumer groups to do this. Closer, deeper, wider There are two trends here. First, clients often want, literally, to get closer to consumers via research by direct dialogue or facilitated interactive sessions with customers. They also want proximity to the consumer disseminated throughout the business. So we will see researchers helping clients experience consumers' lives by proxy: immersion sessions, workshops and video-clip libraries increasingly replacing PowerPoint. Second, there is 'bricolage' the idea that complex business challenges need complex research solutions. This means behavioral data and psychological insight alongside socio-cultural analysis; research groups alongside, or replaced by, non-group methods. The new complexity Important 'new' methods of data collection and analysis semiotics and ethnography are looking increasingly mainstream and essential. They are no longer 'fancy stuff', but sit alongside face-to-face interviewing as core qualitative research methods. As this happens, the heroic qual researcher with diverse skills is giving way to the specialist. Expert teams are being put together by agencies or clients ethnographers, semioticians, futurologists, data miners, discourse analysts and others to work together. They analyze their own and each other's data. Qual and

6 quant sources get integrated, meta-analyses created, key implications drawn. These endeavors can demand significant investment (though not always) and are far from easy-to-buy, easy-to-sell focus groups. But eclecticism is a route to original business solutions in increasingly saturated markets. Re-volution? Is this a revolution in qualitative research? An evolution? Qualitative market research began with invention and bricolage: in the early days, all qual research was bespoke and most was multi-method. Ethnography was alive and well (though rarely called this). Researchers had specialist expertise in psychology, sociology or anthropology. What is happening now, maybe, is literally revolution returning to where we came from. We are emerging from two decades of 'let's do some groups' and re-embracing what's really possible with qualitative thinking. It looks good to me. Gill Ereaut!! Gill Ereaut spent 20 years in qualitative research. She now specializes in applying discourse analysis to business issues. gill@linguisticlandscapes.co.u k!!

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16 Using Focus Groups to Evaluate and Improve Source: Dun and Bradstreet Media Focus groups can provide valuable information that can increase your company s market share. If you are planning to conduct a focus group, the first thing you need is a well-planned strategy. The results from focus groups can be extremely worthwhile and the insights obtained can lead to an improved product or service consumers really want and will buy. While some businesses can rely on professionals to orchestrate focus groups for them, many companies and small businesses cannot afford the thousands of dollars such outside experts require, so they must undertake the task themselves. Before considering the mechanics of how best to conduct the most important part of a focus group, the discussion portion, decide exactly what it is you want to learn from the exercise. Focus groups can be used to gain opinions about new products or services, so an appropriate objective might be gauging how people feel about a new product you re considering. Focus groups are also good at finding out how well existing products are perceived in the market. Once you determine your objective, the next step is come up with five or six relevant open-ended questions to discuss in a group setting, preferably in a comfortable conference-room type of office setting that allows participants to see one another easily. Focus groups generally consist of six to 10 people with some targeted commonality, such as age, sex, income, or interest, who will provide opinions in a free discussion format for about 90 minutes. To put together your panel, go through sales records, lists, and business contacts to get a range of clients and non-clients. You ll need to offer an incentive to participate, such as a meal during or after the conversation, cash, or a gift certificate. For the best results, you ll want to put together several sets of groups; that way, you are more likely to see some trends emerge. Set an agenda for the proceedings and give participants an idea about what their discussion topics will be so they can come prepared for the task at hand. Record or videotape the roundtable discussions so you can follow up with participants with a summary report. Make sure participants understand they ll be recorded as well as issued a report about the discussion. This report can be a simple summary or a detailed analysis. Each focus group requires a moderator or a facilitator to steer the panel and elicit ideas and opinions from all participants. The moderator strives to bring out the group dynamic, allowing all participants to have a say, and while the most effective focus groups are free-flowing, the facilitator actually should be following

17 a prescribed script or agenda and keeping the process on track. If you are the facilitator, your job is to get participants talking and sharing their insights and opinions. It s important to lead the discussions impartially so participants speak frankly and feel uninhibited; but it s also critical to rein in participants when the conversation goes off track. As you go through the questions, summarize what the participants have said, allowing additional feedback when appropriate. The successful facilitator must keep discussion moving along, stay focused, and achieve some closure on questions. The participants!candid opinions can offer insight into why they feel the way they do about a product or a service, and that information can be considered when designing a new product or evaluating an existing service. Do the best you can to ensure your participants are comfortable and satisfied with this experience. The more comfortable they are, the more open they will be; and you will get a better idea about the direction your business should follow.!

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