Masterclass Market Intelligence.

Market intelligence & Brand coaching
M O R A W S K I
Masterclass Market Intelligence
© 2014 John Morawski

2
“It is tempting, if the only tool you have is a hammer,
to treat everything as if it were a nail”
“The psychology of science: a reconnaissance.”,
Abraham Maslow, 1966

Content
1. Introduction to Market Intelligence
1.1 Definition
1.2. To research or not to research
1.3. Types of market research
1.4. The process
2. Special topics
2.1. Segmentation
2.2. Focus Groups
2.3. Net Promoter Score
2.4. Conjoint analysis
2.5. The Brand Funnel
3

1.
Introduction to Market Intelligence
1.1 Definition
1.2. To research or not to research
1.4. The process
4

1.1 Definition – What is Market Intelligence?
5

1.1. Definition - What is Market Intelligence? (1/4)
6
My definition of Market intelligence:
“Market Intelligence is the discipline that aims to manage (plan, identify,
capture, process, communicate and stimulate optimal use) relevant market
information/insights in order to support internal stakeholders.”
Market Intelligence includes gathering of data from the company’s external
environment, whereas Business Intelligence primarily is based on internal
recorded events such as own customer data, sales, shipments, other business
operations … .

7
Market Intelligence is the discipline that aims to manage (identify, plan capture,
process, communicate and stimulate optimal use) …
Needs in order to manage properly
– professional and experienced people with managerial, organizational,
analytical and communicational skills
– data and field resources (secondary and primary research, information
providers, research agencies)
– technology and the platforms to capture, process, distribute and store the
information/insights
– the support of, and access to top management

16/10/2015 8
Market Intelligence is the discipline that aims to manage (plan, identify, capture,
process, communicate and stimulate optimal use) relevant market
information/insights …
Can cover relevant market information/insights of the actual status and future
trends of
• the market
 consumer/customer (needs, motivations, perceptions, behavior, socio-demo’s,
segmentation, satisfaction, loyalty, recommendation/advocacy, …)
 brands (brand funnel, image, communication, market size, market share volume/price,
strategy, …)
 products/services (benefits, volume, price, promotion, packaging, NPD, …)
 channels (own sales, direct sales partners, integrators, distributors, emerging channels)
 competitors (consumer/customer, market share volume/price, brands, products, services,
channels, strategy, organization, capabilities, investments, stock reports, …)
• new markets (potential markets, emerging markets, …)
• the relevant macro environment (economic, political, demographic, social, cultural,
legislation, technological, …)

16/10/2015 9
Market Intelligence is the discipline that aims to manage (plan, identify, capture,
process, communicate and stimulate optimal use) relevant market
information/insights in order to support internal stakeholders.
Supports internal stakeholders
• Marketing
• Communication
• Business Intelligence
• Sales and account management
• CRM
• Strategy
• Business development
• PR
• Finance
• Board, R&D, other executives …

1.2. To research or not to research …
10

11
1.2. To research or not to research (1/5)
Research is an investment, not an expense
In order to reduce risks of poor or even wrong decision making and on
the other hand increase the probability of making the right decisions,
one has to invest in market research. It not only helps reducing costs of
mistakes but also helps to reach the objectives
 It helps you to make decisions about your brand, positioning,
communication, product/service, pricing, promotion, distribution, …
 It helps you in diagnosing problems, and finding causes and
solutions for problems your company is experiencing
 It leads you to actions resulting in significant, positive outcomes
for your company

12
Quick and dirty
When time is short and budget is limited, in some cases one can do quick
research, but without being (too) dirty. It’s always better to do some
research instead of making decisions only based on your gut feeling
e.g. a disaster check: short interviews with 10-20 consumers/customers will
give you more helpful insights than staying at your office and thinking you
know what consumers think
But always consider the limits for decision making (not quantitative, not
representative)

13
Research will be a useless expense …
when it’s not properly used
 Shortcomings in the process (objectives, methodology, sample,
questionnaire, field, analysis, reporting)
 Findings nice to know but not need to know (not actionable)
 Used as an alibi. When things go wrong one can blame the research
(or the researcher)
 To postpone or slacken decisions
 Only for supporting own vision
 To justify past decisions
I’ve seen huge investments in advertising post tests with the objective
to find out if the campaign was effective and with no or little room for
corrective actions. When good results: Champaign. When bad results:
big silence.
On the other hand investments for proactive research (campaign
development and pre-testing) where lacking or insufficient (so, also
wrong management of research budget allocation)

14
when it’s not relevant anymore.
Some research can be continued for years whilst nobody ever questioned
whether it is (still) relevant
After taking over the responsibility for a market intelligence department after
6 months I’ve found out a continuous survey that started 4 years before was
not used. Somebody build and started a train that continued riding to
nowhere without conductor

15
when it’s not used at all!
The responsibility for market research goes beyond the reporting of the
research results
Yes, sometimes one has to be a pain in the ass for stakeholders who neglect
the outcome of investments in research. Top management has to support the
authority of the researcher.

16

17
1.3.1 By research purpose
• Exploratory
• Descriptive
• Causal
1.3.2. By type of data
• Secondary
• Primary
1.3.3. By time dimension
• Cross-sectional
• Longitudinal
1.3.4. By research setting
• Non-contrived
• Contrived
1.3.5. By data collection method
• Qualitative
• Quantitative

18
1.3.1. By research purpose (1/3)
Exploratory research
• Purpose
 Identify key issues and key variables
 Discover ideas and insights
 Provide better understanding
 Produce hypotheses
 No final answers or decisions
 Often broad in focus
• Types
 Literature search
 In-depth interviews
 Focus groups
 Case studies (benchmarking)

19
Descriptive research
• Purpose
 Describe characteristics of a population or a phenomenon
 Who, what, when, where, why and how
 To make predictions
 To determine relationships between variables
• Types
 Observation (naturalistic – laboratory)
 Case study
 Survey

20
Causal research
• Purpose
 Establish cause-and-effect relationships between variables
 Hypothesis testing
 To become stronger evidence that a particular action is more likely to
produce a particular outcome
• Types
 Laboratory experiments
 Field experiments
 As market tests: simulation
 Controlled test markets
 Full test markets

21
1.3.2. By type of data
Secondary data
• Are collected yet by someone other than the researcher
 Could have been collected for other purposes
 Could have some relevance and utility for your research
 Internal and external sources
 Less control
Primary data
• Are collected a first-hand
 They are original, especially collected for your research purposes
 More control on it

22
1.3.3. By time dimension
Cross-sectional study
• One punctual measurement at a single point in time
 A picture
 One shot, “how are things now?”, without history or trend
Longitudinal study
• Variables are measured repeatedly through time
 A movie
 More likely to identify (causal) relationships
 Continuous panels: repeated measurements of the same variables;
true time-series analysis (Nielsen, GfK, …)
 Discontinuous panels: information collected varies
 Trend study: looks at the evolution of parameters over time

23
1.3.4. By research setting
Contrived setting
• Research parameters are strictly controlled in an artificial environment
 In the “laboratory”
 Cause => effect relationships beyond any reasonable doubt
 Participants are carefully selected
 Stimuli are manipulated
Non-contrived setting
• Research parameters are studied in the natural environment where they
normally occur
 In the field
 Field studies: no or minimal inference of the researcher, observation
 Field experiments: some manipulation of the variables

24
1.3.5. By data collection method
Qualitative Quantitative
Text-based Number-based
No statistics Statistics
More subjective: describes a problem or
condition from the point of view of those
experiencing it
More objective: provides observed effects
(interpreted by researchers) of a program on
a problem or condition
Primarily inductive process used to gather
first insights, formulate theory or hypotheses
Primarily deductive process used to measure,
to test
More in-depth information on a few cases Less in-depth but more breadth of
information across a large number of cases
Unstructured or semi-structured response
options
Fixed response options
Not (or less) generalizable Generalizable
Heavy challenge for professional interviewer,
moderator, observator
Less challenge for interviewer
Less time and money expenditure More time and money expenditure

1.4. The process
25

26
1.4. The process (1/3)
Definition of the
research problem
Development of the
research plan
Data collection Data analysis Report of the
results
Identify and
clarify information
needs
Define research
problem and
questions
Specify research
objectives
Confirm information
value
Decide on
Budget
Data sources
Methodology
Questionnaire
Sample and
sampling
Methods of analysis
Collect data
Quantitative
Qualitative
Statistics and/or
(subjective)
interpretation
Facts
Findings
Conclusions
Recommendations
The “Request for
Market Research”
The “Request for
Proposal”
Choice, screening and
selection of the
research agency
Questionnaires
The fieldwork
(most costly
stage in the
process) needs
close control
The type of
analysis depends
on the type of
research
Statistics
Full reporting for the
market research
stakeholder and
adapted reporting
for the stakeholders
1 2 3 4 5

27
1.4. The process – 1. Definition of the research problem (1/2)
First off all there has to be a real need for market research
• Starting point should be a clear “Request for Market Research”
• The requestor is asked to fill in a template properly while answering
questions on e.g. background, the problem, the research objectives (target
group(s), specific questions to be answered, which decisions/actions to be
made based on the research results, budget provided (if it is their budget
responsibility), timings …
• By this way the requestor is stimulated to first structure his/her thinking
before asking
• The “Request for Market Research” is discussed with the market researcher
and optimized/modified/accepted/rejected
• It can happen no research will be done because of sufficient internal
insights from former research or because of the needed budget doesn’t
justify the benefits
• The experienced researcher can propose a research methodology and
in order to assess the needed budget one can ask some research agencies
to give a quote

28
1.4. The process – 1. Definition of the research problem (2/2)
REQUEST FOR MARKET RESEARCH
Date: …………………….
Name requestor: …………………………….
Name(s) other significant stakeholder(s): …………………………………
Project name: ……………………………..;;
Background and problem description Description of relevant background information/the context of research
What is the problem?
Importance description Why do you need this research?
What will happen when this request will not be answered?
Priority What is the priority?
What are the dependencies with other projects?
Objectives Clearly describe the objectives. What would you like to know?
Questions Try to make a first draft of the questions.
Which questions would you like to be answered?
Target group(s) From whom would you like to know this?
Action standards What can you decide and do when you will have the information?
Stimulus material Which stimulus material is needed for using in the research?
When will the final stimulus material be available?
Timing & deliverables When first results with actionable recommendations are needed?
When a final written reporting?
When an oral presentation?
Budget available? How much do you want to spend on this project?
Whats the proposed budget for the best methodology and for alternatives
(and the impact on the results of those alternatives)

29
1.4. The process – 2. Development of the research plan (1/7)
When the “request for market research is” optimized and accepted the next step is
good planning.
• The researcher uses the template “Request for proposal”, a document
needed for briefing research agencies
• The “request for proposal” covers and elaborates all the topics of the
“request for market research” completed with e.g. , expected sample
specifications, checklist/questionnaire items and length, deliverables, budget
template, experience, references, invoicing terms, confidentiality and quality
demands, agency selection criteria, contact details, …
• This document has to be discussed with the requestor, optimized and
accepted

30
Choice of the right research agency – Shortlist and contacts
• Make a shortlist of research agencies
• If you are experienced you can make a shortlist of the agencies you know
and/or you have worked with yet
• You also can consult the list of research agencies who are member of a
federation (for Belgium: FEBELMAR) and/or an association (for Europe:
ESOMAR)
(But being member of a federation or an association is not a full waterproof
guarantee for quality.
Next to membership and general reputation of the agency, professionalism
of their people working for you is crucial. Don’t accept seniors selling you a
project while afterwards delegating the project execution to juniors)
• Before sending the “request for proposal” ask the research agencies to sign a
confidentiality agreement
• When sending the “request for proposal” invite the research agencies to
contact you if they have any questions. The type and depth of questions they
ask can give you some insights yet in their quality

31
Research providers - FEBELMAR
• Founded in 1980
• 33 members
• 85% of all market research spendings in Belgium
• The FEBELMAR website
 shows a listing of members, some company information, link to their
website
 and a search function to find members by research solutions and
market sectors

32
BUDGET QUANTITATIVE RESEARCH
Set-up
Questionnaire development
Fieldwork
Data-processing
Analysis
Reporting
Oral presentation
Management
BUDGET QUALITATIVE RESEARCH
Set-up (kick-off meeting
Development checklist/interview guide
Fieldwork (recruitment, accommodations,
interviewer, moderator, observator/notice
taker, incentives, …)
Analysis
Reporting
Oral presentation
Management
QUALITATIVE EVALUATION OF PROPOSAL
Fit with Request for Proposal
Delivered on time
Proposed methodology and sample
Proposed techniques
Added value proposals/suggestions
Experience (domain, methods, techniques, people)
Extra questions
Choice of the right research agency – Screening and selection

33
Sampling
In quantitative research in order to use statistics for extrapolation results
to make generalizations about the total target population …
• The sample has to be representative
 A subset of a statistical population that accurately reflects the members of
the entire population
 An unbiased indication of what the population is like
• The sample has to be choosen at random: probability sampling
 Every unit in the population has a chance (greater than zero) of being
selected in the sample. The combination of these traits makes it possible
to produce unbiased estimates of population totals, by weighting sampled
units according to their probability of selection
 Nonprobability sampling is any sampling method where some elements of
the population have no chance of selection, or where the probability of
selection can't be accurately determined. Nonprobability sampling does
not allow the estimation of sampling errors. Information about the
relationship between sample and population is limited, making it difficult
to extrapolate from the sample to the population

34
Questionnaire development
• Less = More
• Scale types: nominal, ordinal, interval, ratio, …
• My simple use
 evaluation: 6-point scale without neutral mid point (example: very good,
good, fairly good, not so good, not good, not good at all)
 intentional behaviour: 5-point scale with neutral mid point (example:
certainly, probably, maybe or maybe not, probably not, certainly not)
 satisfaction: unbalanced 5-point scale without neutral mid point (example:
delighted, very satisfied, satisfied, not satisfied, not satisfied at all)
 choice: single choice in a list or top 3 preference ranking
• At least, be consistent

35
Benchmarking
• Benchmark with competitors (external benchmarking).
It seems obvious to get a good understanding of how you differ from your
competition regarding critical aspects (e.g. positioning, branding,
product/services, pricing, distribution, market share, segmentation, target
groups, communication, …)
• Benchmark also with your former research findings (internal
benchmarking).
Monitor how you are gradually evolving in reaching your own objectives
(they can differ from competitors objectives)

36
1.4. The process – 3. Collection of data (1/2)
The fieldwork takes the biggest part of the budget and needs close control.
• Qualitative research
 Pilot (e.g. for in-depth interviews)
 Ask proof of good recruitement (completed recruitement
questionnaires)
 Debrief after first interview/focus group (modify if needed)
 Invite other stakeholders (e.g. advertising agency, engagement)
 Let the agency do their job (don’t start analyzing and interpreting)
• Quantitative research
 Pilot (e.g. computer aided telephonic interviewing)
 Check questionnaire duration
 Follow-up quota
 Follow-up response rates
 At the end of the fieldwork ask a full detailed reporting

37
1.4. The process – 3. Collection of data (2/2)
Errors in sample surveys
• Sampling errors and biases
 Selection bias: the true selection probabilities differ from those assumed
in calculating the results
 Random sampling error: random variation in the results due to the
elements in the sample being selected at random.
• Non-sampling error
 Non-sampling errors are other errors which can impact the final survey estimates,
caused by problems in data collection, processing, or sample design
 Overcoverage: Inclusion of data from outside of the population
 Undercoverage: Sampling frame does not include elements in the population
 Measurement error: e.g. when respondents misunderstand a question, or find it
difficult to answer
 Processing error: Mistakes in data coding
 Non-response: Failure to obtain complete data from all selected individuals.
Two types: unit non-response and item non-response
Non-response is particularly a problem in internet sampling. Reasons for this problem
include improperly designed surveys, over-surveying (or survey fatigue), and the fact
that potential participants hold multiple e-mail addresses, which they don't use anymore
or don't check regularly.

38
1.4. The process – 4. Data analysis (1/2)
 Interpretation
 Subjectivity
 Ask procedure, methodology and techniques of analysis
 Who, how many people?
 Statistics!

39
1.4. The process – 4. Data analysis (2/2)
Nauwkeurigheid bij 95% betrouwbaarheid
0
0,5
1
1,5
2
2,5
3
3,5
4
4,5
5
5,5
6
6,5
7
7,5
8
8,5
9
9,5
10
10,5
11
11,5
12
12,5
13
0 10 20 30 40 50 60 70 80 90 100
N=60
N=100
N=200
N=300
N=600
N=750
N=900
N=1000
N=1200
A B
14%
11%
9%
20%
Binnen eenzelfde steekproef
Het verhogen van de steekproef van 100 naar 200 respondenten levert een winst in verschil op van 6% (van 20% minstens verschil naar 14% minstens
verschil). Het verhogen van de steekproef van 200 naar 300 respondenten levert een winst in verschil op van 3% (van 14% minstens verschil naar 11%
minstens verschil). Het verhogen van de steekproef van 200 naar 600 respondenten levert een winst in verschil op van 6% (van 14% minstens verschil
naar 8% minstens verschil).

40
1.4. The process – 5. Reporting (1/6)
Types of reports
• Complete reporting
 Fieldwork report
 Table report
 Presentation report
• Stakeholders reports
 Responding to their needs
 Comments by the researcher sometimes needed

41
Ongewogen Resultaten
Als u de naam Pajottenland hoort, waaraan denkt u dan? Wat roept deze naam bij u op?
% Provincies (Splitsing Pajottenland en rest Vlaams Brabant)
Totaal
Pajottenland Rest VL.Brabant Antwerpen Limburg O-Vlaanderen W-Vlaanderen
N= 696 120 114 117 113 115 117
A B C D E F
Mooie streek 7% 16% 10% 2% 0% 4% 9%
C E
Landelijk 21% 33% 24% 22% 8% 21% 10%
D F
Bezienswaardigheden 6% 5% 5% 7% 5% 3% 7%
Heuvels 19% 40% 18% 14% 6% 22% 6%
B C D F D F
Streekbieren 9% 21% 5% 8% 1% 10% 3%
B D F
Urbanus 14 5 13 14 22 14 19
A A
Streekproducten 3% 8% 0% 4% 0% 0% 1%
Breughel 2% 4% 3% 2% 0% 1% 3%
Kastelen 0 0 0 0 0 0 0
Willem Vermandere 1% 1% 0% 3% 0% 2% 1%
Fietsen & wandelen 5% 3% 6% 11% 3% 5% 3%
Vlaanderen 6% 2% 8% 6% 9% 3% 13%
Vlaams Brabant 13% 10% 12% 13% 6% 21% 14%
Natuur 12% 25% 18% 7% 5% 12% 3%
C D F F
Accent 0% 0% 0% 0% 1% 0% 0%

42
Results
• Facts
 Facts and figures (Information and data)
 Objective
• Findings
 Statements (description in words)
 Objective
• Conclusions
 Inferences drawn from the findings
 Objective
• Recommendations
 Course of actions

43

44
Purchase
intention
Concept D
Concept C
Concept A
Concept E
Concept B
Switch
intention

45
Purchase
intention
Concept D
Concept C
Concept A
Concept E
Concept B
Switch
intention
Score 1
Avg score = 7 on 10 point scale
Avg score = 6.2 on
10 point scale

46
1.4. The process – Full control checklist
YES NO Not applicable and why
1. Definition of information needs internally
1.a. Template (standard document) to be completed by the requestor of research
1.b. Oral discussion of with the research requestor
1.c. Clearing out why the information is required and what decisions will be made
1.d. Review of existing sources of relevant information if any by MI
1.e. Identification of information gaps to be addressed and redefine information needs
1.f.
2. Shortlist of suppliers
2.a. Look for suppliers with relevant experience
2.b. Check any internal Preferred Supplier lists
Involve key people in the choice
Agree who to involve in the briefing
Inform relevant parties that research will be conducted
Send brief to at least 3 suppliers
Check confidentiality agreements/any possible conflicts of interest.
3. Request for proposal (briefing)
Background information: therapeutic area, brand and marketing
Overall objectives, both marketing and research
The business decision that will be made on the basis of the research
Clear key selection criteria for the successful proposal.
4. Proposal requirements
5. Supplier selection
6. Code of Conduct Adherence
7. Project Acceptance
8. Initial Project Kick-off Meeting
9. Understanding how Suppliers work with Fieldwork Suppliers
10. Suppliers working with Other Suppliers – Best Practice
11. Reporting the Results
12. Review of the project with the supplier

47
1.4. The process – Top 5 when starting a market research project
1. Prove of the need for the project
2. Choice of the best research provider to serve you
5. Full support from top management
3. The best methodology
4. Full cooperation and agreement of direct stakeholders

2.
Special topics
2.1. Segmentation
2.2. Focus groups
2.5. The Brand funnel
2.6. The Market Intelligence Audit
48

2.1. Segmentation
49

50
2.1. Segmentation
The basic proposition behind market segmentation.
“Most – probably all – markets are not monolithic but instead consist of
submarkets that are relatively homogeneous in terms of certain essential
characteristics. These submarkets are market segments”.
Market segments consist of groups of people or organizations that are similar in
terms of how they respond to a particular marketing mix or in other ways that are
meaningful for marketing planning purposes.
Market
S2
S1
S4
1. Differential (must be different  different
marketing mixes must be necessary)
2. Substantial (large or big enough to serve)
3. Identifiable
4. Accessible (via communication & distribution)
5. Measurable
6. Simple (max. 4 – 6 segments)
Segmentation criteria:

51
2.1. Segmentation
Market segmentation
• is a systematic approach for controlled market coverage and
expansion
• the identification of groups of customers – or market segments – that have
similarities in characteristics or similarities in needs who are likely to exhibit
similar purchase behavior and/or responses to changes in the marketing mix
• provides the necessary research base on which all other marketing
strategies can be successfully formulated. This includes all aspects of
marketing – product and service development, route structure, pricing and
fare programs, and communications
• based on the segmentation, one can select target markets – one or more
groups that will respond favorably to certain product or service
configurations and messages about these products or services
•. next one can position its products and services by developing unique
marketing strategies to appeal to the selected target market(s).

52
2.1. Segmentation
Demographics/
Geographic's
Behavior Values/Beliefs
/Attitudes
Needs/
Motivations
Advantages Easiest to explain
Easiest to target
actions
Can tap into
factors that really
matter
More powerful
Identifies
perceptions,
believes and hopes
Most powerful
Disadvantages Least powerful Behavior can
change over time
Tells what happen
but not why
Harder to explain
Harder to act on
Difficult to
measure
Examples
Age
Gender
Social class
Income
Life cycle
Urbanization
Population density
Intensity of usage
Spendings
Purchase
behavior
Loyalty
Life style
Health
Environment
Religion
Family
Maslow’s needs
Motivational frame
Market segmentation criteria

53
2.1. Segmentation
Needs based segmentation (A. Maslow)

54
2.1. Segmentation
Receptivit
y
Complianc
e
OpennessLiveliness
Defensiveness Rigidity
SeriousnessConfidence
POTENCY ENJOYMENT
CONTROL
SECURITY
EXCITEMENT
TRADITION
AFFILIATIONSTATUS/PRESTIGE
RELEASE OF
TENSION
SUPPRESSION OF TENSION
EXPRESSION
EXTRAVERT
SOCIAL
AFFILIATION
BELONGING
EGO
ASSERTIVENESS
REPRESSION
INTROVERT
Friendly
SelfConfident
Active
Reserved
Motivations based market segmentation

55
2.1. Segmentation
Friendly
Self
Confident
Active
Reserved
Self-
actualization
RELEASE OF
TENSION
SUPPRESSION OF
TENSION
Know and
understand
Receptivi
ty
Complianc
e
OpennessLiveliness
Defensiveness Rigidity
Seriousnes
s
Confidence
POTENCY ENJOYMENT
CONTROL
SECURITY
EXCITEMENT
TRADITION
AFFILIATIONSTATUS/PRESTIGE
EXPRESSION
EXTRAVERT
SOCIAL
AFFILIATION
BELONGING
EGO
ASSERTIVENESS
REPRESSION
INTROVERT
Self-
actualization
Self-
actualization
Physiological
needs
Love needs
Safety needs
Esteem needs
Self-
actualization
Self-
actualization
Self-
actualization
Needs/Motivations
based market segmentation

56
2.1. Segmentation
Market Intelligence support for market segmentation
• Desk study
 Has to be always the first step
 Digging as deep as possible (needs, motivations, values, beliefs, attitudes)
 Develop hypothetical segmentation (based on needs, motivations, values,
beliefs, attitudes)
 Validating the hypotheses of the qualitative research
 Quantifying needs, motivations, values, attitudes, behavior, geographics
and demographics

16/10/2015 57
2.2. Focus groups

16/10/2015 58
2.2. Focus groups (2/10)
Some definitions
“A focus group is a form of qualitative research in which a group of people are
asked about their perceptions, opinions, beliefs and attitudes towards a product, a
service, concept, advertisement, idea, or packaging” (Henderson, Naomi R., 2009)
“A focus group is a group of individuals selected and assembled by researchers to
discuss and comment on, from personal experience, the topic that is the subject of
the research” (Powell et al, 1996)
“Focus groups are a form of group interviewing but it is important to distinguish
between the two. Group interviewing involves interviewing a number of people at
the same time, the emphasis being on questions and responses between the
researcher and participants. Focus groups however rely on interaction within the
group based on topics that are supplied by the researcher” (Morgan, 1997)
“…”

16/10/2015 59
Objectives
 Exploring respondents’ behavior, experiences, ideas, beliefs, perceptions,
attitudes, feelings, and reactions in a social setting
 Generating hypotheses
 Finding common language
 Revealing group dynamism and norms
 Brainstorming (product-ideas/concepts, communication-ideas/concepts, …)
 Developing questions or concepts for questionnaires
 Early prototyping

16/10/2015 60
Types
 Single focus groups: the classical type of a focus group
 Two-way focus groups: each focus group alternatively watches the
other group and discusses their observations
 Dual moderator focus groups: one moderator leads the session and
the other takes care for covering all topics and ensures relevant evolutions in
the discussion are explored further
 Dueling moderator focus group: two moderators take opposite positions
 Respondent moderator focus group: one of the respondents act as the
moderator temporarily
 Other participants focus groups: one or more of the client representatives
(client, copy writer, designer, creative, …) participate (temporarily) in the
discussion (as group member or moderator) (covertly or overtly)
 Mini focus groups: groups of four or five members instead of 6 to 12
members
 Teleconference focus groups: via a telephone network
 Online focus groups: via chat rooms

16/10/2015 61
Techniques
 Direct open questioning
 Projective techniques: role-playing (lovers, haters, users, non users, …);
mood boards; psycho drawing, associations (planet, island, person, animal,
…), photo sort, …
 Sub grouping: creating subgroups, let them work independently, and
afterwards confront them with the output and ask for reactions
 Self-administered questioning: forcing the respondents to take an individual
independent position before throwing it in the group
 Check lists: confronting respondents with item lists of brand characteristics,
personality traits, benefits, … (carefully timed during the focus group in
order give room for spontaneous reactions and answering)
 Confrontation with stimulus material: products, packaging, advertising,
promotional material, ideas, concepts (verbal, visual)

16/10/2015 62
Advantages/strengths
 Less expensive than some other research
 Fast way of gathering a lot of insights
 Social interaction effects, group processes, learning process effects (but in an
artificial set-up!)
 Interaction between consumer/customer and client
 Group dynamic stimulates conversation, reactions

16/10/2015 63
Disadvantages/weaknesses
 Less control over the data
 No generalization of findings to the whole population (it’s qualitative
research with small numbers, no representative nor ad random sampling)
 Gives not the individual’s authentic point of view
 Influence of the researcher on the results
 Polarizing (taking more extreme positions) and/or amplifying (want to
please each other and or the moderator)
 Excessive optimism encouraging risk-taking (risk is shared by the group
members, so less vulnerable)
 Effect of the most dominant (character, experience, commitment)
respondent(s)
 Consensus searching, searching for one single solution (strived for by
respondents and/or the moderator and/or the client)
 Self censorship of idea’s/reactions against opposite idea’s/reactions of other
group members (social pressure, conflict avoiding)
 Incapacity to register (and react on) all the verbal and non-verbal (body
language, silence) information

16/10/2015 64
Key role of the moderator
A good moderator is able to …
 understand fully the research objectives
 make feel respondents at ease
 build trust
 listen
 be alert
 be flexible (without loosing focus)
 show sensitivity
 observe
 be attentive for non verbal behavior
 link reactions together
 encourage participation of each respondent
 facilitate/stimulate interaction between respondents
 challenge group members
 keep control over the converstion
 probe
 synthesize
 …

16/10/2015 65
Some do’s for clients in charge
• Decide to use focus groups only for the right purpose(s)
• Take and keep control on all the stages of the process
 Sampling: when too heterogeneous groups: the differences between
participants can make a considerable impact on their contributions; when too
homogenous groups with regard to specific characteristics: diverse opinions
and experiences may not be revealed
 Interview guide/checklist: focus on the research issue while leaving room
for spontaneous reactions and new openings
 Recruitment: check method of recruitment, control respondent’s sample
characteristics before starting the focus groups
 Fieldwork: debriefing session especially after the first focus group to
maximize its usefulness (additional information needed, issues that need
clarification, particular questions that did not work well and why, any
information that contradicts or confirms data collected in previous sessions,
new topics that arose during the focus group, provide the moderator and
note-taker a forum for giving constructive feedback)
 Analysis: ask the research agency how the data will be organized and interpreted
 Reporting: background information, executive summary, key findings (with
verbatim quotes), conclusions, recommendations and next steps

16/10/2015 66
Conclusion
• Focus group interviews do not generate quantitative information.
The results strictly speaking should not be generalized or "projected" to a
larger population
• The results of focus groups should be used as a basis for further evaluation
and user validation using both qualitative and quantitative methods
• Never use focus groups as a stand alone research method (… when
possible)

16/10/2015 67

68
The Net Promoter Score
• The Net Promoter Score (NPS) is a loyalty metric developed by Fred
Reichheld, a Fellow of Bain & Co and a board member of Satmetrics
• In Reichheld’s bestselling book “The Ultimate Question”, NPS is touted as
the most important metric for business
• The ultimate question:

69
The Net Promoter Score – Reasons for success
• Extremely attractive to a management team as it is a single number that
appears to be linked to some significant KPIs
• Easy to measure
• Cheap to measure (one single question, higher response rates, and often
no research agency needed)
• Easy to calculate
• Easy to understand and to communicate
• When it was launched and subsequently widely promoted, the claim was
that research showed that there was a strong link between an NPS
score and business growth

70
The Net Promoter Score – Criticisms
• Misses the predictors of future sales or growth, such as the company’s
product line, product innovations, accuracy of pricing, or operating efficiency
• An attitudinal measure of intention to recommend, rather than actual
behavior
• Some products are not interesting, discussed, or recommended (e.g., toilet
paper, toothpaste, laundry detergent, copy paper, etc.), while other highly interesting
products and brands can easily generate passionate fans (e.g., fashion, restaurants,
music, etc.)
• NPS values are not numerically unique in meaning (e.g. an NPS of 20 can be
derived in many different ways. A company with a 20 NPS could have 20 percent promoters, 80 percent passives,
and 0 percent detractors, while another company with a 20 NPS could have 60, 0, and 40. A company with 20
percent promoters and 0 percent detractors is very different than the one with a polarized customer base with 60
percent promoters versus 40 percent detractors, but the NPS is the same
• Not actionable. What if you had a good or bad NPS? A bad NPS could reflect poor product performance,
overstated advertising promises, poor customer service or many other issues, none of which are identified by the
NPS
• Finally 2007 saw the release in the UK of research findings that question
the very validity of the link between NPS and company growth, and
NPS as a predictor of future customer loyalty. If this foundation stone of NPS
is seen to crumble who knows what the impact will be on the house of NPS!

16/10/2015 71
2.4. Conjoint Analysis

72
What is conjoint analysis?
• Conjoint analysis is a technique enabling to measure the value of
elements or attributes that define a particular product or service
• It allows the respondent to evaluate several elements (price, brand,
packaging, etc.) “conjointly”. The choice made by the respondent is
therefore based not on one single element, but on the mixture of the
elements proposed
• This method foresees the respondents making their choice among several
possible alternative mixes (e.g. brand, price, packaging, etc.) and ’’trade-
off’’ their preferences
• Instead of directly asking the importance of several elements of a service
package (which often leads to poor discrimination or socially acceptable
answers): conjoint analysis works with derived importance
• Two types:
 choice based: natural buying situation; 4-5 variables; price elasticity
curves based on the interactions between the variables
 adaptive: greater number of variables because questions are adapted in function of former
answers of the respondent; e.g. used for improving products/services

73
Questions a conjoint analysis can give an answer to
 How can I optimize the packaging format for a product ?
 How should we price the different elements of product or a service ?
 What is the performance of new product/service concepts?
 What is the price-elasticity of our offer compared to the other competitors ?
 Does the existence of an added service offer justify a higher price setting ?
 What will be the impact of a line extension (market share, cannibalization, …)?

74
€2.4
None
of
these
Q.3 - Which shampoo would you buy?
€2.1 €2.3

75
Output of conjoint analysis gives results on 3 different levels:
• Utilities
 Building blocks of each conjoint model. For each level of variables tested
value is attributed. The distribution of utilities is usually reported for each
variable
 The combination of all the maximum utilities would give the optimal
offering for the total sample (=average customer)
• Relative importance
 The level of relative importance (=with regard to other variables included
in the model) is calculated based on the span (max-min) of the utility
values.
• Simulations
 Possibility to simulate product/service changes. For each offering the
sum of the utility values is calculated on an individual level assuming that
the respondent will optimise his/her choice by maximizing perceived
(utility) value. The end results of these calculations are shares of
preference/choice for each offering proposed

76
Size of pack
0
10
20
30
40
50
60
70
80
90
100
200ml 330ml 500ml 750ml
Utility
Utilities

77
18
16
14
12 12
11
9 9
0
5
10
15
20
25
C
om
m
unication
costs
C
ontract
Voice
m
ail
O
n-nettariffs
PSB
C
ontractlength
SM
S
m
essages
O
ffpeak
hours
Total sample
% of importance
Importance

78
13
15
12
13
10
15
14
9
22
20
13
11
9
8
9 9
14
21
13
12
8
7
16
10
0
5
10
15
20
25
Contract Communication
costs
On-net
tarification
PSB Off peak hours Contract length Voice mail SMS
A: Prof usage B: Private off peak callers C: Mixed extended usage
The type of usage seems a more discriminating variable in terms of
importance attributed
Importance

79
0
10
20
30
40
50
60
70
80
90
100
Brand Price Service level /
shop
Saving system
Brand Loyals Added Value Seekers My brand for low price Price sensitives
Importance

80
Segment A (43%):
Prof usage
Segment B (25%):
Mostly private usage
Segment C (32%):
Mixed lib prof usage
Relatively most important:
Length of contract
Relatively most
important:
Contract & comm costs
Relatively most
important:
Communication costs &
Voice mail
Relatively less important:
Contract & costs
Voice mail, PSB
Off peak hours
X & Y brand relative strong X brand relative strong Z brand relative strong
50% private or mostly private
usage
86% private or mostly
private usage
78% private or mostly
private usage
62% low SMS usage 38% low SMS usage 60% low SMS message
20% off-peak callers, 55% on
net callers
40% off-peak callers,
29% on net callers
24% off-peak callers,
22% on net callers
35% low spenders (<40€ a
month)
77% of low spenders
(<40€ a month)
47% of low spenders
(<40€ a month)
46% would choose Z if
proposed best offer
proposed best offer
proposed best offer
Importance

81
Price elasticity curve
0
5
10
15
20
25
30
35
40
45
50
55
60
Official -
0,10€
Official -
0,08€
Official -
0,06€
Official -
0,04€
Official -
0,02€
Official -
0,01€
Official
Price
Gasoil
95 oct
98 oct
Simulations

82
Brand A 3,30€ 33 +8
Brand B 2,90€ 19 -4
Brand C 3.00€ 16 -4
Brand D 3.45€ 16 0
Brand E 3.00€ 10 +1
Brand F 2,95€ 4 -1
Brand G 3,15€ 2 0
Brand A lowers its price by 10%
Brand Price (€) Share (%) Gain/Loss
Simulations

83
Add new formulae:
What if: we add a new formula F characteristics XYZ to our actual offer of A and B ?
Some cannibalization on our formulas of 5 percent point: a net gain of 8 percent point
of share of preference at expense of E.
Base case:
C
14%
D
20%
E
23%
B
18%
A
25%
C
14%
D
20%
E
15%
F
13%
B
16%
A
22%
Simulations

16/10/2015 84

85
Brand D ++
Brand A +
Brand G - -
CRM
Advertising
PLANNING / ACTIONS /
INVESTMENTS
EVALUATION / ROI
/ ADAPTATION
Brand development
Market research
ACTION
Choice of Brand C
AWARENESS
Brand G
Brand F
Brand BBrand A
Brand C
Brand D
Brand E
INTEREST / ATTRACTION
Brand D
Brand C
Brand A
Brand C
Brand D
CONSIDERATION
Brand C
PREFFERENCE
SATISFACTION
LOYALTY
NPS
THE BRAND FUNNEL
Promotion
PR
Sponsoring
Social media
Direct marketing
Pricing
NPD
Distribution
Segmentation
Market research
Business intelligence
Business case
Online marketing
POS
Trade shows
Mobile marketing
Positioning
Lifetime value
The brand funnel model helps you to structure, plan and manage
your branding and market research activities
Business intelligence
BRAND TRACKER
SWOT analysis
IMAGE
Brand C +++
Brand C
Brand F --
PROSPECTSCUSTOMERSPROSPECTSCUSTOMERS
AQUISITION
RETENTION
ADVOCACY
OBJECTIVS
AQUISITION
RETENTION
ADVOCACY

86
John Morawski
Rogery 6671 Bovigny
Belgium
GSM +32 (0)477 62 18 75
E-mail: john.morawski@skynet.be

Masterclass Market Intelligence.

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to Masterclass Market Intelligence.

Similar to Masterclass Market Intelligence. (20)

Recently uploaded

Recently uploaded (20)

Masterclass Market Intelligence.