Using Neuroscience for Marketing Research

Mark Potts of MindShare and Dr. Andrew Pradeep of NeuroFocus gave an excellent presentation about the process of using neuroscience for marketing research in their workshop presentation titled: Neurological Testing Reveals the Truth of Audience Engagement.

Here are the basics:
Who:
Respondents are recruited based on research objectives (as in traditional studies).
What:
Respondents wear a "full cap" on their head with 64 sensors attached. These collect data 2000 times every second. This coupled with eye-tracking is the "data collection" methodology.
Why:
Consumers can't tell us everything they're sensing. For example, a consumer may look very closely at something on a grocery store aisle that grabs attention but the subconscious areas of the brain don't "tell" the conscious what they think, feel, etc. But it can, however, be measured through brain activity.
How:

3 metrics are measured directly at the brain.

1. Attention: what are you paying attention to....this is based on the science behind ADD/ADHD clinical diagnosis
2. Emotion: how are you emotionally engaged ....this is based on the science behind mania & phobia clinical diagnosis
3. Memory Retention: what is it that you're experiencing that activates your memory....this is based on the science behind Alzheimer's

When:
As with all new technological tools in research, this is not a catch all approach but 3 of the areas where it can be used is when trying to measure:

1. Purchase Intent
2. Novelty
3. Awareness

TMRE Keynote Presentation from Joan Lewis, P&G Officer, Global CMK

Joan Lewis' keynote presentation was great! As a researcher who strives to present complex insights in a very simple way, I appreciated her storytelling ability. She drew the audience in through three well-articulated case studies on: Pampers, Olay ProX, Secret Clinical. She described how meaningful consumer insights helped them develop and execute a very clear message and full advertising campaign.

The Pampers UNICEF case study she described resulted in this one message: 1 pack = 1 vaccine. You can see the result of this campaign here. Believe me, the video is worth the 1 minute watch time. I want to buy Pampers, and I don't need them!

And in typical P&G fashion, she concluded with a very simple, meaningful, clear message about their company belief: "We believe consumer passion brings innovation and competitive advantage."

And with a quote from their President and CEO, Bob McDonald, "Our purpose inspires us. Our values unite us. And all our innovation capabilities and culture focus us on making small but meaningful differences...every day...for the consumers who have ALWAYS been P&G's boss and our inspiration."

Thank you for your inspiration, P&G CMK April Bell

Getting Shopper Insights Off the Ground at Dr. Pepper Snapple

Jacob Ratner, Research Director at Dr. Pepper Snapple Group (DPSG) gave an awesome presentation on the organization's road to developing a shopper insights strategy! He touched on some of the trends evolving with retailer/manufacturer relationships.

He remarked on the trend I have also seen the last few years in the relationship between retailers and manufacturers. Retailers are creating their own insights projects vs. leaning as heavily on manufacturer's research findings. They are wanting to be a bigger decision-maker in every stage of research.

He also talked about one of their big 'aha moments' when moving to a shopper insight focus vs. a heavy brand consumer focus: The Shopper is Not (always) the Consumer. Knowing the consumer is one thing....but what if that consumer is not the shopper? Likewise, the shopper is not always the consumer. This insight alone has driven much of their work in the last year. His passion for looking at the shopper and consumer in different ways yet holistically was a key take-away. Thanks, Jacob, for sharing!

The Future of Retail by Herb Sorensen

If you missed Herb Sorensen's presentation on on Retailing: The Return to Personal Selling, you should check out his book. No one doubted his passion for the subject as he walked us through the "history of retail" before giving us his take on the "future of retail." "The need for efficiencies" he claims, is the reason the retailer/consumer relationship has evolved to where it is today. "It has always been about efficiencies and where we are today is simply because of this."

The following quote summarized his point: "One hundred years ago retailers ran their stores by watching their customers closely. Somewhere during the last hundred years, spread sheets, slotting allowances, and quarterly performance replaced the basic principles of the business." Norm Myhr, Group Vice President Sales and Promotion and Marketing, Fred Meyer.

He mentioned P&G's early "Soap Opera Ad" and Sears "Wish Book Catalogs" as examples of how we began getting consumer's attention outside of the store when it became difficult to do so inside the store.

And now, "everyone is realizing the system of communicating to consumers 'outside of the store' is not working due to the fragmentation we have" {due to MTV, Facebook, etc.}

Statistics he cited include:

In 95, 3 commercials reached 80% of women 18-49

In 2000, it took 92 commercials to do the job

He concluded with how he sees the future of retail, titled: the "Amazonification" of Retail. "Because Amazon gets it, that the selling is always about the closing... Amazon understood that they had to 'close the sale fast.'" And now, "the real battle in retailing is between Wal-Mart and Amazon." So, how will we get personal selling back in the store? By "pulling the internet into the store," he claims.

Also, other tips he gave for "closing the sale" in the store included:

1.  Provide only a few "Top Seller" tags in the aisle
2. Brand call out tags on packaging: "Shoppers #1 Choice"
3. To make it clear, you can only do that with 1 or 2 items

I think I'll buy the book.

Learning What's Good at Goodyear

Kim White presented on how Goodyear used a variety of qualitative research techniques: immersions, peer focus groups, and learning connects to fully understand their consumer's retail experience.

The techniques, developed by MarketVision Research, were creative and insightful...and combined, they allowed the consumer voice to be loud and clear to their c-level management as well as their dealers.

One of the many creative qualitative exercises utilized "Grove" templates. I have also found these templates helpful in a number of different research projects. (You can go online and download the smaller deck of cards ... or you can order larger, wall-size templates for group facilitation exercises.)

The specific template used in Goodyear's research was an Idea Wheel that helped convey consumer's wishes and ideas around the buying experience.

Another very cool exercise included a "Retailer Personality creation" where participants had to "create" the personality of retailers with available supplies. This was an interesting way to gain insight on how retailers are perceived.

Taking this to CEO gave their upper management an understanding of how consumers view them as a retailer and thus, drove change throughout the organization.

April Bell

The Skinny on Facebook

Well, I am here for the first session kick-off at The Market Research Event in Las Vegas. What a great first session to blog about: Facebook. Meg Sloan, research lead at Facebook and Brant Cruz of Chadwick Martin Bailey shared a little glimpse of what life inside Facebook is like.

Currently, Facebook has 300 million users worldwide and at least 1/2 of their users go to the site daily! Wow! How do they do it? Here's a tidbit....

Their guiding principles include:

1. Proactive
2. Scalable
3. Expertise
4. New School
5. Synthesis & Story-telling

Meg also gave us insight into how they view their small marketing research team:

1. Try our best to act like the rest of the org
2. Radical focus on the roadmap and prioritization
3. Making sure we all are doing things we feel strong at each day (staying motivated)
4. Supporting each other/sharing information/work etc.
5. Be nimble and use our resources and relationships to their fullest
6. And last but not least: Ruthless Prioritization as well as Have Fun and create an awesome workplace. Their Q3 planning meeting involved pedicures--sign me up!

You can see more about life inside the marketing research team at Facebook. Check out this video about

"life at facebook." Oh, and by the way, they currently have a marketing research position open for anyone who is interested..I'm now a little more motivated to spend time on my facebook page

...

Live at TMRE in Vegas

Well, hello. Here I am, blogging again for IIR live at The Market Research Event 2009 in Las Vegas. We are at the Red Rock Resort and Casino and it is rockin'! Wow, what a great conference site--here's the view from my room!

It is cool to be back for the 2nd time. Last year was my first Market Research Event. This year, I recognize a few faces and have met a few of you throughout the year.

So, if you're reading this and you're here in Vegas for the event, please let me know if you have something valuable to add to the blog.

Hope to meet you.

Insight into Social Media Users

Step right up folks! It’s the social media bandwagon. I’m on it, you’re on it, and with the recent study from Anderson Analytics, marketers better be on it. At this point in the game, most marketers are, but this study reveals some interesting findings on what your preferred social network says about you.

Apparently, I’m all about the business or the benjamins, because I prefer LinkedIn over other social networking sites. I’m also more likely to own top of the line electronic gadgets, like HD televisions, blu ray players and digital cameras.

The study found 60% of Americans are social network users, but the study defined a user as someone who had uses a social network at least once a month. The average user collectively spends about an hour each day on social networking sites.

So what does your social networking site say about you? Or more importantly, what will this study tell marketers, specifically online marketers? Here are some findings that really jumped out at me:

• 52% of social networkers had friended or become a fan of at least one brand on Facebook. Getting individual endorsements on Facebook can be a HUGE marketing accomplishment, because when someone becomes a fan of a brand on Facebook, he or she is saying “Brand X is apart of who I am and I want everyone to know about it.” The brand has not only produced brand loyalty in said-user, but that brand is also reaping the benefits of word-of-mouth advertising. When asked their feelings on seeing a brand on a social network, 17% felt positive and 19% said negative.

• When asked if they want more communication from brands 20% said yes. I think this percentage would be higher if it’s the right kind of communication. If brands communicate the message their target consumers want to hear and in a way they want to hear it, then they will want to hear from the brand.

• Social media users are four times more vocal than non-users online, such as commenting on discussion boards, forums, blogs, etc., which means they would be more likely to be vocal about announcing on the World Wide Web their feelings, both positive and negative, about a brand experience.

• Out of the four user groups defined by the study, Anderson said social media mavens are the key group for marketers not only because of their high incomes and decision making power, but also their large social media footprints can make them excellent brand allies or evangelists.

• Users preferring Twitter are big into pop culture.. movies, music, TV and reading and their buying habits mirror that. They are more likely to buy movies, books, shoes and cosmetics online than other network users. So marketers, take the hint and get on Twitter.

• LinkedIn users have the highest income averaging at $89,000, and they are also more interested in high-tech gadgets, as well as the gym, yoga, spa treatments, golf and tennis. Hello luxury and travel brand marketers.

I’d love to hear others take on these findings listed in more detail on Advertising Age.

To discount or not to discount?

Too discount or not to discount? That is the question on many minds representing the luxury brands. Luxury brands are in a tough position right now. Thin is in, and I’m not talking about weight here, I’m talking about your wallet.

Market studies show that over indulgent consuming is out, and frugal is in. According to a recent study by the New York-based Luxury Institute, 62% of wealthy consumers report that economic conditions have altered their views on luxury purchases. People, even the wealthy, feel bad flaunting their money with people around them losing their left and right. Now is not the time to show off that $5,000 Louis Vuitton bag. According to a recent article, customers that do purchase luxury brand products are being more discreet about their spending, requesting their purchases to be sent to their hotels or for plain bags, instead of the usually coveted designer shopping bag.

On the flip side, market studies consistently reveal that discounting the price of luxury items discounts the value of the brand in the eyes of the consumer. Part of the appeal of luxury brands is that it's exclusive...something that not everyone can buy. Luxury brands work hard for the label "designer" and to build an image of exclusivity and privilege. If they discount, that exclusivity could nose dive.

The luxury brands have got some major brainstorming and research to do to figure out how to survive this recession. Because bottom line, they can’t deny the research that reveals showing off the bling-bling is not the cool thing to do in this economy, but what do they do about it?

Business opportunities: Finding the right "match"

The saying “when it rains it pours”, definitely applies to me right now. Last week while at the beach “relaxing”, I got eight requests for business proposals. Trust me, I’m not complaining, especially with the current economic situation, I am extremely thankful for this little problem.

This sudden wave of business requests has allowed me to think more in depth about the criteria I look for in a potential business opportunity. What do I want to get out of this and is it the right match? Much like choosing a mate, the key is making sure your needs match their needs. This will increase the chances of a successful business relationship.

To help choose the optimal business opportunities, I’ve developed a list of helpful questions to ask yourself prior to taking that step of writing out the business proposal:

1. Do I have an existing relationship with the person or company asking for my business?

If there is already an existing relationship, and I have had a positive experience with the client, then chances are, I am going to want to build on that relationship. Building on an existing relationship is ideal because I already know the company, and to an extent what type of results they expect out of a market research project.

2. If this is a new company requesting the work, do I want a relationship with them?

It is important to make sure that the person or company asking for my business is someone I want to work with. Is the project within the scope of the type research I want to do? How will working with them develop my business and skills in market research?

3. Is this project going to be worth my time and effort in terms of:

• Business development?

• Personal growth?

• Financial gain?

If I can say yes to at least two out of three of those categories, then I will most likely move forward in writing the proposal. If it doesn’t seem worth my time and effort, then what do I perceive within my business or personal life that would take precedence over this project? If the project doesn’t line up with the goals for my business, then I would be doing the client and myself a disservice by pursuing the opportunity.

Again, it’s all about matchmaking. Over the years, most of the proposals I’ve written have been based on a mutual agreement between the client and myself. Ensuring that I am a good match for the client and the client is a good match for me is the best way to keep those good business opportunities coming.