Mr - The Future Of Mr
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The future of marketing research, the development of the ‘customer insight’ industry Dr David F. Birks School of Management University of Southampton Programme Director: MSc Marketing Analytics
MR turnover globally 2004 - Top 8 (Global turnover $21,501million)
Country USA UK Germany France Japan Italy Canada Spain
Real % Growth 7.0 2.5 3.2 3.4 1.5 2.6 2.2 5.4
Turnover Spend per US$ million capita US$ 7319 24.89 2362 39.86 2084 25.26 1836 30.52 1294 10.14 671 11.68 534 16.96 472 11.49
Largest Growth rates in Asia Pacific 2004 Country China Philippines Hong Kong Thailand Vietnam Singapore Malaysia Taiwan
Real % Growth 20.0 15.8 12.2 10.1 9.5 9.2 7.7 6.5
Turnover US$ million 371 32 69 56 11 45 34 96
Countries with a real growth rate over 10% Country
Real % Growth
Romania
30.5
Argentina
28.6
China
20.0
Ireland
18.7
Croatia
17.6
Venezuela
16.5
Philippines
15.8
Lithuania
13.6
Egypt
13.3
Estonia
12.9
Hong Kong
12.2
Mexico
11.1
Thailand
10.1
Proportion of turnover globally
Quantitative - 84%
Postal surveys - 7% Telephone - 20% Face-to-face - 31% Online - 11% Other quantitative - 15%
Qualitative - 15%
Group discussions - 11% In-depth interviews - 3% Other qualitative - 1%
Other - 2%
Marketing Research: Malhotra’s perspective
144 US Universities Chinese, Russian, Spanish, Portuguese, Hungarian North American, International, European, Australia and New Zealand Marketing Research: Is
the systematic and objective identification, collection, analysis, dissemination and use of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing
Marketing Research: Malhotra’s perspective
Step 1 - Problem definition Step 2 - Development of an approach to the problem Step 3 - Research design formulation Step 4 - Fieldwork or data collection Step 5 - Data preparation and analysis Step 6 - Report preparation and presentation Ch. 2. - 4th International edition, Ref. 21 “A positivist perspective on research is used here. This is the dominant perspective adopted in commercial marketing research”.
Factors shaping the Marketing Research Industry
Competitor Intelligence
Customer Analytics
‘Value for money’ marketing
Low cost survey providers
The nature and future of Marketing Research
‘Strategic’ consultants
Surveys to generate sales & PR
Internet, e.g. online panels
‘Respondent’ rewards
Advantages and disadvantages of approaches to support marketing decision making ‘Traditional’ Respondent anonymity MR Target existing & potential customers Richness of quantitative and qualitative data gathering Attitudes, Emotions, Aspirations, Sensory
Sample based Access Declining response rates Honesty Time Paradigm debates
Customer Analytics
Census based - all customers Observational based, no respondent recall, ‘instant’ Forum to experiment Measure impact of marketing decisions
Behavioural data focus Existing customer focus
Competitor Intelligence
Powerful in b2b – relationships & networks Uses conventional quantitative & qualitative MR techniques and more
Ethics Distortion through competitor ‘spoiling’
Market information (Coundley and Speller, 2006) Old world marketing
New world marketing
Extrapolation of data from a few separate sources based on a small sample of customers
Mining the explosion of granular data collected digitally from huge numbers of individual customers
Nielsen / AGB Customer research Shopping surveys Advertising awareness studies Distribution and sales information
Loyalty cards Web analytics Analysis of ISP logs Customer relationship systems E-mail marketing
The power of web analytics Web analytics record actual customer behaviour: what products customers look at how often they return to the site what they purchase items purchased together what they don’t purchase where they drop out From this marketers can determine various customer buying strategies and offer a choice of routes through the site to satisfy those strategies. e.g browsers, price led, product led
It goes beyond web analytics Record, experiment, analyse, model: Internet
use TV viewing Loyalty and spending Operational databases Scanner data
Research that will stay and prosper (Ray Poynter - Millward Brown IntelliQuest)
Qualitative Online
will grow, but so will ‘real’ qualitative such as ethnographic techniques
New Product Development Exit interviews Branded products – Analytical framework Brand Strategy
To prosper enormously
Massive Access Panels, people exchanging their IDs for incentives such as: free telephony free TV channels free videos purchasing points Cash
Online qualitative research – International Database linked research Longitudinal research
Techniques that will decline
Face to face interviewing Those
that are left may well be WAP enabled
Telephone interviewing perhaps
moving into customer care
Customer satisfaction But
not necessarily strategic products
Purchase panels Segmentation studies
move
towards 1-to-1 relationships & profile building
And from the Internet
Pop-up interviews people
will increasingly resent being bothered with requests for interviews and browsers will help them avoid the bother Yahoo does not permit them, even for their own research
Integrating the approaches – who will drive it?
Marketing Research Companies – developing expertise in all approaches – through mergers & acquisitions. Commoditising of basic MR techniques Value added in branded MR, integration & interpretation Software/IS companies – those driving the technology and its implementation Client companies – setting up ‘Customer Insight’ & ‘Marketing Intelligence’ functions Management Consultants – with ability to supply differentiation in strategic marketing direction – pull in support from whatever source
The search for talent “Our company does not even use the word market research any more, we speak of strategic marketing intelligence” David Smith, Chairman, Incepta Marketing Intelligence “I’m looking forward to working with researchers who are able to synthesise not just the data of their own surveys, but also that of a variety of sources. This could be anything: from hard data and other databases, to anecdotal information. That is a skill that requires the ability to generalise from a great deal of information. You could call it ‘reading between the lines.’ Subjective skills, but ultimately based on very hard research data. Not easy to learn”. Frederic John, MasterCard
MR turnover globally 2004 - Top 8 (Global turnover $21,501million)
Country USA UK Germany France Japan Italy Canada Spain
Real % Growth 7.0 2.5 3.2 3.4 1.5 2.6 2.2 5.4
Turnover Spend per US$ million capita US$ 7319 24.89 2362 39.86 2084 25.26 1836 30.52 1294 10.14 671 11.68 534 16.96 472 11.49
Largest Growth rates in Asia Pacific 2004 Country China Philippines Hong Kong Thailand Vietnam Singapore Malaysia Taiwan
Real % Growth 20.0 15.8 12.2 10.1 9.5 9.2 7.7 6.5
Turnover US$ million 371 32 69 56 11 45 34 96
Countries with a real growth rate over 10% Country
Real % Growth
Romania
30.5
Argentina
28.6
China
20.0
Ireland
18.7
Croatia
17.6
Venezuela
16.5
Philippines
15.8
Lithuania
13.6
Egypt
13.3
Estonia
12.9
Hong Kong
12.2
Mexico
11.1
Thailand
10.1
Proportion of turnover globally
Quantitative - 84%
Postal surveys - 7% Telephone - 20% Face-to-face - 31% Online - 11% Other quantitative - 15%
Qualitative - 15%
Group discussions - 11% In-depth interviews - 3% Other qualitative - 1%
Other - 2%
Marketing Research: Malhotra’s perspective
144 US Universities Chinese, Russian, Spanish, Portuguese, Hungarian North American, International, European, Australia and New Zealand Marketing Research: Is
the systematic and objective identification, collection, analysis, dissemination and use of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing
Marketing Research: Malhotra’s perspective
Step 1 - Problem definition Step 2 - Development of an approach to the problem Step 3 - Research design formulation Step 4 - Fieldwork or data collection Step 5 - Data preparation and analysis Step 6 - Report preparation and presentation Ch. 2. - 4th International edition, Ref. 21 “A positivist perspective on research is used here. This is the dominant perspective adopted in commercial marketing research”.
Factors shaping the Marketing Research Industry
Competitor Intelligence
Customer Analytics
‘Value for money’ marketing
Low cost survey providers
The nature and future of Marketing Research
‘Strategic’ consultants
Surveys to generate sales & PR
Internet, e.g. online panels
‘Respondent’ rewards
Advantages and disadvantages of approaches to support marketing decision making ‘Traditional’ Respondent anonymity MR Target existing & potential customers Richness of quantitative and qualitative data gathering Attitudes, Emotions, Aspirations, Sensory
Sample based Access Declining response rates Honesty Time Paradigm debates
Customer Analytics
Census based - all customers Observational based, no respondent recall, ‘instant’ Forum to experiment Measure impact of marketing decisions
Behavioural data focus Existing customer focus
Competitor Intelligence
Powerful in b2b – relationships & networks Uses conventional quantitative & qualitative MR techniques and more
Ethics Distortion through competitor ‘spoiling’
Market information (Coundley and Speller, 2006) Old world marketing
New world marketing
Extrapolation of data from a few separate sources based on a small sample of customers
Mining the explosion of granular data collected digitally from huge numbers of individual customers
Nielsen / AGB Customer research Shopping surveys Advertising awareness studies Distribution and sales information
Loyalty cards Web analytics Analysis of ISP logs Customer relationship systems E-mail marketing
The power of web analytics Web analytics record actual customer behaviour: what products customers look at how often they return to the site what they purchase items purchased together what they don’t purchase where they drop out From this marketers can determine various customer buying strategies and offer a choice of routes through the site to satisfy those strategies. e.g browsers, price led, product led
It goes beyond web analytics Record, experiment, analyse, model: Internet
use TV viewing Loyalty and spending Operational databases Scanner data
Research that will stay and prosper (Ray Poynter - Millward Brown IntelliQuest)
Qualitative Online
will grow, but so will ‘real’ qualitative such as ethnographic techniques
New Product Development Exit interviews Branded products – Analytical framework Brand Strategy
To prosper enormously
Massive Access Panels, people exchanging their IDs for incentives such as: free telephony free TV channels free videos purchasing points Cash
Online qualitative research – International Database linked research Longitudinal research
Techniques that will decline
Face to face interviewing Those
that are left may well be WAP enabled
Telephone interviewing perhaps
moving into customer care
Customer satisfaction But
not necessarily strategic products
Purchase panels Segmentation studies
move
towards 1-to-1 relationships & profile building
And from the Internet
Pop-up interviews people
will increasingly resent being bothered with requests for interviews and browsers will help them avoid the bother Yahoo does not permit them, even for their own research
Integrating the approaches – who will drive it?
Marketing Research Companies – developing expertise in all approaches – through mergers & acquisitions. Commoditising of basic MR techniques Value added in branded MR, integration & interpretation Software/IS companies – those driving the technology and its implementation Client companies – setting up ‘Customer Insight’ & ‘Marketing Intelligence’ functions Management Consultants – with ability to supply differentiation in strategic marketing direction – pull in support from whatever source
The search for talent “Our company does not even use the word market research any more, we speak of strategic marketing intelligence” David Smith, Chairman, Incepta Marketing Intelligence “I’m looking forward to working with researchers who are able to synthesise not just the data of their own surveys, but also that of a variety of sources. This could be anything: from hard data and other databases, to anecdotal information. That is a skill that requires the ability to generalise from a great deal of information. You could call it ‘reading between the lines.’ Subjective skills, but ultimately based on very hard research data. Not easy to learn”. Frederic John, MasterCard
