Marketing Research for Advertising

1. EFFECTIVE ADVERTISING AND
SALES PROMOTION
Chapter 8

2. MARKETING RESEARCH FOR
ADVERTISING
Chapter 8.2

3. MARKETING RESEARCH
Is the process of planning, collecting, and analyzing the data needed to solve
marketing problems. Marketing Research provides information about consumers,
products, services, brand awareness, advertising, prices, wants and needs, and much
more.

4. Steps in Marketing Research
Identify and Define the Problem
Develop the Research Design
Analyze the Data
Collect the Data
Determine the Method for Collecting Data
Report and Present the Data

5. PRIMARY MARKET RESEARCH
Is the process of collecting data for the for the first time to use in solving a specific problem.
Primary Market Research offers the benefit of direct contact with customers through a survey
or interview.

6. Types of Primary Market Research
Survey
- A list of questions used to obtain facts, opinions and attitudes.
- They may also contain open – ended questions that allow respondents to provide their own answers.
- Surveys are also called questionnaires.
- Surveys may be conducted in person, through the mail, by telephone or online.
Focus Group
- Consists of a small number of people recruited to discuss a topic being studied.
- Focus Group members are carefully selected based on target market characteristics.

7. SECONDARY MARKET RESEARCH
Is the process of collecting and analyzing data previously gathered for other purposes.
Secondary Market Research can save time and money. It is useful in learning about industry or
market trends, the competition, and consumers.

8. Secondary Market Research
Advantages
◦ Large amounts of secondary data are available
online, making them easy and convenient to
access. This makes secondary data less expensive
to obtain.
◦ It is often used to help set the stage for primary
market research. Researchers may find that exact
information they were looking for is available
through secondary sources, eliminating the need
and expense required to obtain primary data.
Disadvantages
◦ Data collected through primary market research
are highly controlled by the marketer.
◦ The quality of secondary data should be
scrutinized closely to ensure it is reliable.
◦ The data may not be timely.
◦ Secondary data often are not presented in a form
that exactly meets the marketer’s needs.

9. SECONDARY MARKET RESEARCH SOURCES
• Internal Company Reports
• Trade and Professional Associations
• Nonprofit organizations
• Government Reports
• Business Websites
• News and Media Sources

10. MARKETING – INFORMATIONSYSTEM (MKIS)
Is an organized method of collecting storing, processing, and reporting information that is
needed to make marketing decisions. It acts as a data warehouse that stores relevant internal
company records as well as information collected through continuous marketing research
efforts.

11. BENEFITS OF MARKETING RESEARCH
• Marketing Research reduces the risk of doing business.
• Marketing Research helps a company identify threats and opportunities.
• Marketing Research guides a company’s communication with consumers.
• Marketing Research helps companies track their progress.

12. LIMITATIONS OF MARKETING RESEARCH
• Marketing Research is not an easy task.
• Gathering and processing data can be very expensive and time consuming.
• The value of the research findings depends on the accuracy of the data collected.
• Marketing Research does not guarantee success.
• Marketing Research data must be protected.

13. DEVELOPING AN EFFECTIVESALES
PROMOTION STRATEGY
Chapter 8.3

14. CONSUMER SALES PROMOTION
Sales promotion generally involves short – term, incentive offering and interest –
creating marketing activities, other than advertising, personal selling, and public
relations.

15. SALES PROMOTIONS TECHNIQUES
• Coupon – a certificate that entitles the buyer to a price reduction on a product or service.
• Price Deals – they are used frequently to encourage the trial use of a new product, to recruit new
customers for a mature product, or to convince existing customers to purchase larger quantities.
• Rebates – is a refund of money offered to consumers who purchase a specific product. It is used
to increase the quantity or frequency of a purchase.

16. SALES PROMOTIONS TECHNIQUES
• Premiums – an item offered to consumers for free or at a reduced price with the purchase of
another item. It reinforce the consumer’s buying decision and increase consumer demand.
• Loyalty Marketing Programs or Frequent Buyer Programs – to reward customers for making
repeat purchases. This programs require that consumers keep buying the same brand or
shopping at the same store to get the reward.

17. SALES PROMOTIONS TECHNIQUES
• Sampling – provides consumers with the opportunity to use a product on a risk – free trial basis.
Sample products must have benefits or features that will be obvious while being tested by
consumers.
• Contest and Sweepstakes – companies use contests and sweepstakes to gain publicity and to
create interest n a product or brand. Contest allow consumers to compete for a prize based on
their skills or abilities.
• Point – of – Purchase Displays – it is to promote a particular brand and encourage impulse buying.
POP displays include special racks, display cartons, banners, signs, price cards, and mechanical
product dispensers.

18. TRADE SALES PROMOTIONS
• Trade promotions are incentives that manufacturers offer retailers to encourage them to
stock their products and ensure they get the proper attention. Trade promotions help push
a product through the distribution channels ( from the manufacturer to the final consumer
).

19. TRADE SALES PROMOTIONS
• Push Money – is a bonus given to salespeople for selling a specific brand.
• Deal Loader – is a premium given by a manufacturer to a retailer for ordering a certain quantity of a product.
- Buying Loader: is a gift given for making a specified order size
- Display Loader: gives the contents of a display to the retailer after the promotional campaign.
• Trade Allowance – or trade deal, is a reward offered by manufacturers Ito retailers in exchange for supporting
the manufacturer’s brand by performing various marketing activities.

20. • Buying Allowance – An example, a retailer that buys 15 cases of a product during a certain
period might receive a buying allowance of $6.00 of each case.
• Advertising Allowance – Retailers that feature a manufacturer’s product in their
advertisements or create their own in-store display for the product.
• Slotting Allowance – are fees paid to retailers for access to certain slots or shelf space. An
example, food manufacturers may pay to have their products located on grocery shelves at
eye level or at the end of aisles.