Mike Roe Creating Client Value

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Mike Roe Creating Client Value

  1. 1. CREATING CLIENT VALUE THE ROLE OF PROCESS IN MARKET RESEARCH Mike Roe for IESA
  2. 2. The Value of Research USD $33 billion (Latam 6%) Sales & Marketing Market Research “If you can’t measure it, you can’t manage it” Customers Consumers Supplier
  3. 3. What can research do? Opinion polling New Product Development Customer Satisfaction Studies Advertising Testing/Tracking Media Research Usage & Attitude Studies (Image Studies) Audit and Diary Panels for Sales Measurement Consumers Commercial Private Customers Social Business
  4. 4. market research is like a lampost - best used for illumination rather than support
  5. 5. When not to use market research • As support rather than illumination • With insufficient budget • With insufficient time • If it cannot influence/aid decision taking • Without relating its cost to the value • Without allowing for error
  6. 6. Error Measurement Sample bias Sample error
  7. 7. Consumer research is unlike medicine, law, accountancy and engineering. Its professionals and users - agencies and clients - still don’t have a common training or consensus on the laws and rules that govern their “profession”. That is, they don’t concur on the procedures that produce consistent and agreed successful results The explanation is that other professions work with the relatively well- known natural laws, e.g. physics and physiology. Bridge-building or surgery enjoy a success rate that should be the envy of marketers. Consumer research, however, has the laws of human motivation and behaviour to contend with, and explanations of these have eluded the world’s philosophers and sages for millennia There is not a single right way to conduct research, but there are many wrong ones REMEMBER…..
  8. 8. RESEARCH RESEARCH MARKETING The Value of Research
  9. 9. RESEARCH CRUTCH INSIGHT FOOL ENTREPRENEUR RESEARCH MARKETING The Value of Research
  10. 10. RESEARCH DELIVERS ‘EVIDENCE BASED DECISION-MAKING’ + ‘INSIGHT’
  11. 11. What is Insight? A single discovery of something enlightening about underlying needs, values and drivers that a business can address to create shopper or consumer value and competitive advantage
  12. 12. IF CLIENT PROBLEM …IS MATCHED BY RESEARCH SOLUTION …THEN VALUE HAS BEEN CREATED
  13. 13. RESEARCH IS AN ‘INTANGIBLE’
  14. 14. Client Personality “What’s it like to be a buyer?” – insecure – exposed – worried – risk – sceptical I’m a researcher
  15. 15. Client Requirements “What does a buyer look for from you?” – understanding – customised solution – options – reassurance – value I can help
  16. 16. My problem Research can help
  17. 17. Agency Benefit = Generic technical Specific solves problems
  18. 18. Agency Benefit = Relevance ‘how research can help you’ + Differentiation ‘first’ / ‘best’ / ‘only’/ ’unique’/ brand / model / expertise - Objections neutralise concerns
  19. 19. 1. Get involved 2. There are no research objectives - there are only management objectives 3. Treat the research agency as a partner rather than a supplier CLIENT – GETTING BETTER RESEARCH
  20. 20. Effective communication Detailed brief Encourage exploratory work (Post-commissioning) release all relevant internal information (Post-commissioning) check-up CLIENT - GET INVOLVED
  21. 21. State: current situation historical background current and past strategies and their rationale alternatives being considered Action Standard CLIENT - PROVIDE OBJECTIVES
  22. 22. Writing a research brief 1. Background 2. Objectives 3. Possible methodology 4. Sample definition(s)/penetration 5. Timing deadline (top line / present / report) 6. Materials to be supplied by client 7. Cost parameters 8. Action standards
  23. 23. 1. What relevant data do you already have? 2. Do you require qualitative or quantitative data? 3. What is the minimum acceptable sample size? 4. Who are the target group? What is their penetration level? 5. Where should interviewing take place? 6. Are you looking for absolute or relative data? 7. Can you define - “must have” / “nice to know” / “optional” data? 8. What is the hypothesis and what are the Action Standards? 9. How long can you wait for the results? 10. How large is your budget? 10 BRIEFING QUESTIONS FOR CLIENT
  24. 24. Draft - Research Processes & Procedures 25 Project Initiating Brief Brief Number + Version Client and MI key Contacts Project Name (Code for Security)* It should be initiated by the client with input from the Marketing Insights Manager. A generic template is available and key sections are: Background/Problem Definition* Project Objective(s)* * The Business/Marketing Issue Owner is responsible for writing these sections Market(s) Country, Region, etc.* Referent Brand(s)* Consumer Segment(s)* Suggested Methodology Presentation/Reporting Requirements* Timing* Action Standard(s)* Stimulus Materials* Budget Allocation* Description Background/ Objectives Approach
  25. 25. Checklist Market Research Brief
  26. 26. The bad brief “We want to carry out a major study on the drinks market in Armenorus covering all aspects of consumer behaviour, attitudes and motivation” “We want to test 3 versions of Lux soap to find out which one is best”
  27. 27. CLIENT ACTION STANDARDS Why? • To determine whether the research is really necessary • To prevent the “I Told You So!” syndrome • To speed the eventual decision process • To guide the research agency in presenting the results Planning the decision process resulting from the research before commissioning
  28. 28. ACTION STANDARDS Example • If A beats B overall, and is not significantly worse than B on taste and consistency, we will launch A • If A is only equal to B overall, and/or loses on taste or consistency, we will continue formula development work • If A loses to B overall, we will discontinue work on A The precise basis on which the marketing decision will be made
  29. 29. THE AGENCY PROPOSAL Why Objectives Who Sample How many Sample size Where Location How Data collection method What Questionnaire When Timing How much Cost
  30. 30. LOGIC MAGIC
  31. 31. LOGIC MAGIC theory insight TECHNICAL PROFICIENCY PROBLEM SOLUTION
  32. 32. Draft - Research Processes & Procedures 34 Research Process – Initiation to Summary Business/Marketing Issue OwnerPIB Stage 1 PIB Stage 2 MI Agree PIB Agency Briefing (x3) MI Review Agency Proposals (x3) and Reco. Sign Off Agency Commissioned (with P/O) Agency Execution & Delivery Presentation & Summary (with Reco.) Oracle LN Database Project Closure/Review of Actions MI Control Project Authorisation Form Legal Clearance Business/Marketing Issue Owner MI Business/Marketing Issue Owner MI MI MI MI MI MI ResponsibleTaskTime
  33. 33. Analysis Planning Strategic Tactical Execution Control Marketing cycle Type of market Reseach market structure surveys desk research; ad hoc qualitative insights ad hoc quantitative surveys of: habits & attitudes, brand image, customer satisfaction, segmentation; observation instumental studies qualitative assessment, quantitative testing, observation studies - of all elements of marketing mix monitoring quantitative tracking surveys, continuous audits & panels, mystery customer observation studies THE MARKET RESEARCH PROCESS

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