The Future of Marketing Research SEEMAR 08 Uroš Cvetko CEO Valicon

The landscape were MR is operating is changing Direct marketing Technology / Data mining Role of marketing Consumer in control Internet / mobility Response rates Privacy concerns Customer centricity Online communities

Challenges affecting the future of marketing research Marketing's new accountability Integrated marketing and media The digital explosion Consumers in control Privacy concerns Population and audience shifts Next-generation consumers Global evolution Organizational adaptation Collaboration Source: MRA 2008 Conference, Mary Ann Packo, the CEO of Milward Brown North America

Marketing's new accountability

Integrated marketing and media

The digital explosion

Consumers in control

Privacy concerns

Population and audience shifts

Next-generation consumers

Global evolution

Organizational adaptation

Collaboration

HOW MR will be conducted has been already widely discussed HOW Online research Multi-mode data collection Access panels Respondent rewards … Question remains WHO?

HOW

Online research

Multi-mode data collection

Access panels

Respondent rewards

…

What is Market Research? As defined in the ICC/ESOMAR INTERNATIONAL CODE ON MARKET AND SOCIAL RESEARCH Market research (…) is the systematic gathering and interpretation of information about individuals or organisations using the statistical and analytical methods and techniques of the applied social sciences to gain insight or support decision making (…)

As defined in the ICC/ESOMAR INTERNATIONAL CODE ON MARKET AND SOCIAL RESEARCH

Market research (…) is the systematic gathering and interpretation of information about individuals or organisations using the statistical and analytical methods and techniques of the applied social sciences to gain insight or support decision making (…)

In the past information was scarce Marketing research Marketing decision making Customers Data collection Analysis Prediction Advice Field data Strategic consulting Marketing agencies ILLUSTRATIVE

With the new sources of data new players appeared on the landscape Marketing research Marketing decision making Customers Data collection Analysis Prediction Advice Field data Online data Internal data Data CompetItion ILLUSTRATIVE Strategic consulting / Marketing agencies CRM IT CI Online research Online monitoring

Resulting new competitive landscape Marketing research Marketing decision making Customers Data collection Analysis Prediction Advice Field data Online data Internal data Data CompetItion SELECTED GLOBAL BRANDS

Future is likely to bring consolidation Marketing decision making Customers Data collection Analysis Prediction Advice Data WHO ? Niche players Niche players Niche players Niche players Niche players CompetItion ILLUSTRATIVE

Are MR companies fit for the this future? S W O T Scientific background (data gathering and interpretation) Consumer understanding Established field collection Incumbents Scientific background Lack of technology / IT Lack of strategic heritage Expensive data collection / limited access to data Access to capital Rigid industry rules (ESOMAR) Extend MR expertise to new data analysis areas Expand into strategic consultancy Major industry (e.g. IT, Internet companies) deciding to seriously move into MR Profitable pieces of MR taken by new competitors Traditional MR to rigid to recognize changed landscape

Scientific background (data gathering and interpretation)

Consumer understanding

Established field collection

Incumbents

Scientific background

Lack of technology / IT

Lack of strategic heritage

Expensive data collection / limited access to data

Access to capital

Rigid industry rules (ESOMAR)

Extend MR expertise to new data analysis areas

Expand into strategic consultancy

Major industry (e.g. IT, Internet companies) deciding to seriously move into MR

Profitable pieces of MR taken by new competitors

Traditional MR to rigid to recognize changed landscape

Where should MR go Marketing research Marketing decision making Customers Data collection Analysis Prediction Advice Field data Online data Internal data Data CompetItion ILLUSTRATIVE 1 2 3

Marketing research revisited For… MR is… which gives the most… because of… Marketing decision makers Systematic gathering, analysis and interpretation of data about individuals or organizations, regardless of its source or format Relevant insight, actionable information and advice needed for decision making Deep understanding of statistical and analytical methods and techniques of the applied social sciences Mastering of the required technology

Marketing decision makers

Systematic gathering, analysis and interpretation of data about individuals or organizations, regardless of its source or format

Relevant insight, actionable information and advice needed for decision making

Deep understanding of statistical and analytical methods and techniques of the applied social sciences

Mastering of the required technology

Main take-aways The traditional MR core business is under threat Current environment trends are adversely affecting it New non-traditional competitors are moving in To secure the future MR industry, companies need to fully embrace all available sources of information and capitalize on its experience with interpretation Replacing decline in off-line with online research will provide only partial compensation MR industry should more bravely enter other areas of information where it can capitalize its analytical superiority and experience (e.g. CRM or CI)

The traditional MR core business is under threat

Current environment trends are adversely affecting it

New non-traditional competitors are moving in

To secure the future MR industry, companies need to fully embrace all available sources of information and capitalize on its experience with interpretation

Replacing decline in off-line with online research will provide only partial compensation

MR industry should more bravely enter other areas of information where it can capitalize its analytical superiority and experience (e.g. CRM or CI)

For more information [email_address] VALICON Zagreb Petra Grgeca 9 10000 Zagreb T: +385 1 633 15 00 F: +385 1 631 40 33 [email_address] hr VALICON Sarajevo Pruš ć akova 2 71000 Sarajevo T: +387 33 688 975 F: +387 33 668 975 [email_address] ba VALICON Ljubljana Kopitarjeva 2 1000 Ljubljana T: +386 1 420 49 00 F: +386 1 420 49 60 [email_address] si