11/3/16

BA 174
DATA ANALYSIS & REPORTING

1. Preparing Analysis Plan

2. Data Checks
3. Rolling Data
4. Weighting
5. Making Sense of Computer Tables
6. Analyzing Data

STEP 1: PREPARING ANALYSIS PLAN

Reasons Why We Should Create an Analysis Plan

1. To focus analysis on Objectives

2. To provide Direction to analysis
 Theme
 Development
 Emphasis
 Scope
3. To put Control of scope and content of analysis in analyst’s hands
 What to include and what not to include
 Avoid tendency to “over-analyze”

The Framework

Proposal Stage

Specify Make
Decisions Recommendations
Create
Action Standards
Determine
Draw Conclusions
Information Needs
Develop
Analysis Plan
Ascertain
Report Results
Data Required

Analyze / Integrate
Acquire Data
Data
The Analysis Plan – A Step-by-Step Approach
1. Specify the decisions to be made. This is the Purpose of the Study.

2. List out and prioritize the information needed to make each decision. These are the (research)
Objectives of the Study.
They should be:
 Stated in Marketing Terms
 Grouped Logically (e.g. objectives followed by sub-objectives, if any)
 Phrased in Question Form
 Limited in numbers: 5 +/- 2 (3 to 7 items only)

3. Specify the data items (e.g. questions, ratings, etc.) from the questionnaire or other sources which will
be used to provide each piece of information stated in Step 2.

4. Develop an Analysis Plan, clearly stating the statistical / analytical procedure, (e.g. crosstabs, summary
statistics, significance tests, multivariate procedures, etc.), which will be used to link / transform the
data items from Step 3 to the information needs in Step 2.

5. Anticipate / visualize the output from the Planned Analysis.

6. Examine / digest the data and analysis in relation to the objectives stated in Step 2.

7. Make Notes regarding the Key Results.

8. Data snooping to discover other interesting relationships can follow, time permitting.

9. Transform the notes from Step 7 into topic sentences, which are expanded into one or more
paragraphs in the research report. The topics are essentially answers to the questions stated in Step 2.

10. Make Recommendations by relating the information from Step 9 to the decisions to be made, as stated
in Step 1. Well-established action standards significantly facilitate the procedure.

The Analysis Plan – an Example

Analysis
Decisions Information Data
Procedure
Example:

Which attribute to Which attributes are key Q9. Attribute – Brand Jaccard
emphasize to enhance drivers to purchase? Association Exercise
imagery?

Some Questions you need to ask yourself before diving into the data, or worst, charting:
1. What are the Deliverables?
 Monthly toplines, Quarterly powerpoint, Executive Summary, etc.

2. What Kind of Data?

 Rolling Data / month-on-month data
 Weighting
  Combined Groups
 Main Sample / Boosters / Quotas Achieved
- “Boosters” or “Special Quota”: after random sampling, find the sure users

3. Is this a Repeat study or Extension of past study?

 Data have to be compared with the last study. Try to maintain the same brand codes / flow of
statements / questions, etc.

4. Any Business Solution

 Specify the types. Make sure you have the questions / input variables in the questionnaire!

5. Is the study Across Multiple Centres / Countries?

 If Multiple Centres – maintain the same brand codes (for main brands), and code frame. In fact,
this needs to be checked before launching the questionnaire.

STEP 2: DATA CHECKS

* 2 Sets of Figures: Frequency and Percent

- Should be present!

What to Look Out for when Checking Data Tables?

 Base Sizes
 Whether add to 100%
 Are all necessary banners included?
 Are the correct filters applied for specific questions with routing?
 Standard Banners (all respondents, aware of brand, 3M users)

Brand Awareness
- Proportion of Target Market who know the brand

1. Top of Mind (TOM)

Top of - The 1st brand mentioned by respondents
Mind - Since only 1 response per respondent, adds up to 100%
- Also referred to as Share of Mind
Brand - Usually the the default Go-to brand
Recall
2. Brand Recall
- All other brands recalled without aiding or unaided
Brand Recognition
awareness
- Brands part of the consideration set

Unaware of Brand 3. Brand Recognition

- Recognized only when prompted or aided awareness
- Not Salient in the minds of consumers

4. Unaware of Brand
 Brand Usage

1. Brand Trial
- Ever tried the brand
Reach or Conversion = % who have Tried the brand
% who are Aware of the brand

2. Usage in Past X Weeks or Months

- Definition of what a user is; sometimes based on “Usage Cycle”
- All the brands used in this period makes up the consumer’s brand repertoire

Retention = % who have Used the brand in the Past X Weeks

% who have Tried the brand

3. Brand Used Most Often (BUMO)

 Favorite Brand
Loyalty = % who Use the product Most Often
% who have Used the brand in the Past X Weeks

* Trends in these measures help determine where to focus spend / marketing budget!
1. Awareness
2. Reach
3. Retention

*Examples:
 It could be that Awareness is so High, but people are NOT BUYING:
o Distribution
o Price
o What you are offering is not important to consumers  no USP!

 Only 20% are Aware but out of that percentage, 80% said it is their BUMO
o Problem: People are not aware of the brand but it is a very good product
o Recommendation: Promotions  increase airtime

*Example on Data Checks (refer to picture)

 GRP: Gross Rating Points  how many people you are reaching
 Observation: Total Spontaneous viewing went up, Total Aided went down
- Makes sense because when they advertised (aided), spontaneous awareness increased and
aided eventually went down

STEP 3: ROLLING DATA

What is Rolling Data?

- Simply put, Rolling Data is a Moving Average of a set of figures over time
- Also referred to as “Rolling Mean” or “Moving Mean”
- Commonly used with Time Series Data to smooth out short-term fluctuations and highlight longer term
trends or cycles

Key Advantage:
Enables to see when changes start to occur which is very important in interpreting data
* Combining the data from multiple weeks, we make the data for any one point more robust

Rolling the data also has the effect of Smoothing Out the trend line, which may be used flexibly according
to the issue that we are trying to address:

 Shorter Rolling Period

 Looking for more immediate responses to advertising, for instance, where things change
quickly (e.g. 4 weekly)

 Longer Rolling Period

 If we wish to examine the more gradual effects, that trend up or down, we use longer rolling
periods (e.g. 8 or 16 weekly)
 To “Smooth” the Trend Line

Example:

Awareness Moving 4-
Level Weeks Awareness for Brand X
56 Actual Moving Average
57
58
56
57
55 56 56
55 55.75 55
54 55 54
54 54.5 53
55 54.5 52
54 54.25 51
52 53.75 50
49
55 54
48
54 53.75
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
51 53
54 53.5
- Time Series  to smoothen out quirks
52 52.75 - The Moving Average can tell if campaigns are working or not over time
53 52.5

STEP 4: WEIGHTING
(What it is and When to use)

Purpose of Weighting
 To make the track / dipstick data representative of the universe with respect to demographics
(geographic spread, age, SEC) and in some cases, usage patterns
 But, in most Tracking Studies, we set quotas on such parameters that are in tune with universe
proportions. Also, the focus on trends rather than on absolute numbers.

When would Waiting be Required?

Most Basic: Quotas not set in tune with population proportions

SEC Actual Proportions Quota Set Quota Proportions Representation

ABC+ 4% 300 30% Over
Broad C 8% 300 30% Over
D 64% 300 30% Under
E 24% 100 10% Under
What are the Correct Weights?
(Try to deflate ABC+, Broad C and inflate D, E)

Column A Column B Column C Column D Column B

Column D

SEC Actual Proportions Quota Set Quota Proportions Weights

ABC+ 4% 300 30% 0.13
Broad C 8% 300 30% 0.27
D 64% 300 30% 2.13
E 24% 100 10% 2.40

Weights = Actual Proportions

Quota Proportions

Exercise:
Compute for the Weighted Total.

Column A Column B Column C Column D Column E Column E

Column C

SEC Actual Quota Set Sample Actual %

Proportions Proportions Data
ABC+ 4% 300 30% 20 7%
Broad C 8% 300 30% 25 8%
D 64% 300 30% 30 10%
E 24% 100 10% 35 35%

Total 100% 1,000 110 11%

% = Actual Data
Quota Set

Answer:

Column A Column B Column C Column D Column E Column C(E)

SEC Quota Set Actual % Weights Weighted

Data Data
ABC+ 300 20 7% 0.13 3
Broad C 300 25 8% 0.27 7
D 300 30 10% 2.13 64
E 100 35 35% 2.40 84

Total 1,000 110 11% 157

Weighted Data = Actual Data (Weights)

20 (0.13) = 2.60 = 3
25 (0.27) = 6.75 = 7
30 (2.13) = 63.9 = 64
35 (2.40) = 84.0 = 84

157 = 16%
1,000
 11/17/2016
GUIDELINES IN WRITING A MARKET RESEARCH REPORT

1. Report should be logically organized

 Point A > Point B> Point C > Conclusion
 Story behind the findings

2. Report should flow seamlessly

 One finding should lead to the next
 Clear chain of logic
 Make your point once… then move on

3. Keep it Simple
 Easy to understand
 Audience / readers should not have to work to understand
 Complete clearly presented thoughts

4. Fat-Free / Concise
 No long winded sentences
 Don’t use 7 words if you can say it in 4
 Focus on the critical elements

5. Report needs to be believable but precise

 People are natural skeptics
 Don’t make claims that cannot be substantiated by data

6. Consider your audience

 Normally, marketing people
 Need to translate statistical terms (Standard Dev..) to everyday language

Coffee Case:
Summary and Implications to Business

Background
- The Client is exploring the opportunity of entering the coffee business
 Nescafe is the #1 brand with a strong heritage equity
 Many brands have been introduced in the past years but they all failed to make a significant
dent in Nescafe’s business
- Hence, there is a need to understand the dynamics of the market and identify the opportunities that
can be tapped in order to be competitive

Research Objectives
- This study was conducted in order to help the innovations team identify the opportunities within the
coffee market.
- Specifically, this study aims to address the following objectives:
 To understand the purchase and consumption habits of both soluble and 3-in-1 coffee
 To determine the strengths and weaknesses of Nescafe and other key players
 To identify the white spaces - product intrinsics and extrinsics - within the coffee category
that the Client can tap in order to succeed in this market
Methodology
- Interview Method: Face to Face Quantitative Interviews
- Respondent Criteria:
 Males/Females
 18-50 years old
 ABCDE
 Consumed coffee in the past 7 days
- Sample Size: 900
 GMA = 300
 Balance Luzon = 300
 VisMin = 300

The Coffee Market Landscape

- Coffee is within the top-tier beverage categories and in fact, has the highest daily consumption
among beverages
- Primarily driven by soluble and coffee mix
- The largeness of the soluble format is on account of its appeal across demographic segments-
whereas coffee mix is skewed towards single young adults
- Price availability drive Soluble choice while ease of preparation appeals to busy young urban
dwellers

Category Consumption and Purchase Habits

- Mainly consumed with meals, preferably breakfast
- For 3-in-1, some people add more sugar because they probably put in more water than prescribed
- It is a personal drink consumer prepare themselves … but purchase decision left with moms … who
source their coffee mainly from sari-sari stores … as this outlet allows them to buy in break-bulk-
one pack at a time

Brand Performance
- Nescafe enjoys universal saliency-awareness of all other brands high only with aiding
- Moreover conversion & retention is very strong for Nescafe; sustaining consumption after trial is the
main hurdle for minor brands
- Moreover, loyalty to the brand is so strong that consumers would seek it out when unavailable in
their usual outlet (hanapin talaga sa ibang tindahan)
- While Nescafe is strong across areas and demographic profiles, popular among single you people

STATED IMPORTANCE vs. DERIVED IMPORTANCE

HYGIENICS DRIVERS
claimed high claimed high
Importance but Importance,
low Actual high Actual
Relevance Relevance

Stated Importance
POTENTIAL HIDDEN
SAVERS OPPORTUNITIES
claimed low claimed low
Importance, Importance but
Actually low high Actual
Relevance Relevance

Derived Importance
 - Nescafe owns most of the category drivers save for aroma and taste which are noy yet owned by
any brand
- In addition a number of hidden opportunities are untapped by Nescafe (Relaxing, Comforting)
- Being most consumed and having the strongest equity, Nescafe sets standard on pricing- Kopiko
seen as cheaper and Great Taste more premium

THE POINT IS: Story has to flow!

BASIC CONSIDERATIONS IN WRITING REPORT & ANALYSIS

1. Key Issues to Address

 Need to fully understand the key issues of the client
- What key decision(s) will be made once results from the research are back?
- What are the initial hypotheses about what the research will indicate?
- To what extent do you think the research will confirm existing hypotheses versus uncover
new/different perspectives? What are your expectations in this regard?
- What type of evidence is needed to support a particular decision and in what way can it best
be delivered to inspire confidence in it?

2. Analysis Plan as Framework

 Clear course of how the data will be analyzed and reported
 Done in advance, not waiting for data to be collected
 How will the report flow and what questions / information will tie in together
 Once the data is in, fine-tune the analysis plan if the data does not support your original hypotheses
 Answering the key business issues should be the basis of the framework

3. Tell a Story
 Present the data in such a way that they are interlaced to tell a story
 Weaving a story through the data helps make the point come across clearer. Stories help in
showing what data is saying an aid in comprehension
 Through the data, paint mental images. Again, this will aid in comprehension. Studies have shown
that 80% of our brain is dedicated to visual processing
 While data will connect you with your audience on a rational level, presenting the data in a story will
also provide more of an emotional link, and thus have a bigger pull to action

4. Draw Insights
 Don’t just present data. What insights can be gleaned from the results?
 The report needs to be logically organized in order to build the findings to the action steps that need
to be taken
Other Examples of Ways of Presenting Data:

BRAND AWARENESS

100
95 Total
Unaided
55 TOM
85 52 88 81
35 40
25 27 25
8 18 22
AYB CTA DMP MMD TCA

ADVERTISING AWARENESS

90

Total
70
Unaided
80 45 54
90
62
38 38
22

AYB CTA DMP MMD TCA

USAGE LEVELS
86
TCA 40
18
38
MMD 30
22
95
DMP 75
40
30
CTA 25
15
80
AYB 15
5

0 10 20 30 40 50 60 70 80 90 100

Ever Past 4 Weeks BUMO

I. Brand Awareness:
Breakdown of TOM, Unaided, and Total
 DMP has highest brand awareness @100
 DMP most salient because total unaided is 88
 POSITION: If the client was DMP, what would be your headline?
o Although DMP remains to be most salient, we must watch out of TCA (Unaided @ 81)
o New entrant MMD (small total brand awareness) has limited awareness level, however, it
has a very good TOM

II. Advertising Awareness

 …watch out for TCA because TCA has gained traction (grip, pull) and awareness because their ads
are memorable

III. Usage Levels

 “Past 4 Weeks”  “BUMO”: MMD has high conversion to Loyalty (oops, di na TCA yung to watch
out for!)

11/22/2016
Analysis of Anna’s Trattoria
Comments on Presentation:
 Start with the recap of the Background!
 Trial Rate of 44% is good, considering it has only been open for 3 months
 On Frequency of Dining, people keep going back  meaning, customers are satisfied

STANDARD DEVIATION
- For Bank ServQual, note any attribute when Standard Deviation is noticeably too high
- “How far it is from the Mean”
o How Dispersed
o If NOT Consistent, attribute is Polarizing  the delivery of that service is inconsistent across the
banks in the Philippines (NCR)

How to Measure Gaps

- Get composite per dimension
o Several attributes per dimension: get the Aggregate Score
- (Important – Applied)
o Use the Mean!
o = (Excellent – Extent of Practice)
 11/15/2016
 Whether Qualitative or Quantitative… Summarize the Data!
- But be sure to include all pertinent (relevant) information in your analysis
- Include all info needed FOR Analysis ONLY
- Use data that helps build the story

NOTES ON INTERPRETATION

1. Summary The brief account giving the main points of something

2. Conclusion A proposition inferred from a set of findings that can be shown – on a logical basis
– to be true
3. Recommendation Advice as to the best course of action
4. Interpretation Advice that ties in with your client’s business

Example:
a. Summary: The man weighs 18 stone 8 lbs = 270 lbs
b. Conclusion: The man is overweight
c. Recommendation:
 The man should go on a diet
 The man should exercise
d. Interpretation:
 The man represents a growing segment of the population
- What is the client trying to do with the data?
- The client is in the Furniture Business!
- The man need to buy stronger chairs  the suggestion: Man should diet and/or exercise
is NO LONGER ACCEPTABLE!
- Meaning, client needs to have sturdy chairs for this segment (Overweight People)

6 RULES ON INTERPRETATION

1. Never accept / use figure until you know more about the figure.
 “… 40% have ever used McDelivery”
 BUT this is among those aware of it, OF WHICH ONLY 10% have ever used in the PAST 4
WEEKS (P4W)

2. Most numbers can be read several ways.

3. Have a view on what you would have expected.

 Interesting numbers are often wrong

4. Need to decide if it is a big number or a little number.

 “How big should a difference be to consider a point worth highlighting?”

5. Statistical testing is not a substitute for interpretation.

6. Not all data is high quality.

CASE 1

BRAND AWARENESS AD AWARENESS BRAND USAGE

90 90
80 80
70 70
60 60
50 50 Ever
70 72 11%
40 40
30 30
20 20 Past 4 Weeks
11%
10 10
8 6
0 2 0
BUMO
Brand Awareness Ad Awareness 10%

TOM Unaided Aided Unaided Aided 10% 10% 11% 11% 12%

Info on:
1. Brand Awareness
- Brand is not salient in the minds of the market (Aided Awareness @ 70: very large)
- Recommendation: perhaps improve ads, ad placements  make ads memorable!

2. Brand Awareness + Ad Awareness

- Aided Awareness of ads is huge
- Conclusion: Brand Awareness is low primarily because ads are not working
- Recommendation: improve the ad

3. BA + AA + Brand Usage
- Conversion from P4W to BUMO is high
- It is a good product
- Brand not salient primarily because of poor ad placements, weak ads BUT a good product because in
LIMITED TRIAL, people became loyal customers

- 10% BUMO out of 11% Ever Tried  once they tried, they liked it!

Recommendations:
1. Increase avenue for trials
 Tie-ins
 Give free samples
2. Improve Ads

CASE 2

1. Data / Situation 1: Market Shares are declining

- Conclusion: MS dropping probably because of
a. New Entrant
b. Brand Reputation has gone down

2. Now, 2 Sets of Data: Market Share declining + Product Availability

- Availability was declining  so, affected Market Share
“People no longer buy from you because you are unavailable”
- Able to correct it
*NOTE: INTERESECTION OF MS & PA*
 - BUT after the point of intersection, MS steadily declined, PA went up
 Conclusion: Their customers could have moved to another brand when they were
unavailable and now that the problem was fixed, people no longer wanted to go back to
the brand (nasubukan na yung ibang brand, mas nagustuhan, nagstay na doon)
- Someone took over / toppled the leading brand!!

3. MS + PA + Average Price
- Analysis: As Average Price increased, Demand decreased
 INITIALLY, MS was declining because of decrease in Product Availability
 able to correct unavailability
BUT STILL, MS continued to decline BECAUSE of PRICE INCREASE!
= decline of MS became steeper!!
- People did not go back anymore because they have tried a cheaper product and they are okay with it
- They priced themselves out of the market!

What if…
All of the brands increased their price, but still MS continued to go down?
- could mean that Acceptable / Within Threshold yung price increase ng nilipatan nila…
- not as expensive as the former brand.

CASE 3
Beer; Likert Scale

TOP BOX RATINGS IMPORTANCE Client: BRAND A BRAND B

Its value for money 62 % 74 % 61 %

Has superior overall taste 88 % 84 % 90 %
A well-known brand 57 % 91 % 74 %
Is easily available 84 % 95 % 79 %
Just right bitterness level 48 % 70 % 54 %
Has full bodied flavor 91 % 73 % 95 %

1. IMPORTANCE
- An FGD / In-depth analysis on taste was done
- The Profile that beer drinkers like

2. BRAND A
- Findings: The Strength of the Client lies in… WELL KNOWN + EASILY AVAILABLE
a. Brand Availability  “Is easily available” @ 95% = HERITAGE BRAND!!!
b. Brand Recognition  “A well-known brand” @ 91%
- BUT
 it falls short on “Full bodied flavor” 73% vs. 91%

3. BRAND B entered: The Competition

Overall Finding: The new entrant is more in line with what consumers want!  better “Full bodied flavor”
- Weakness, though, is Availability and Not Well Known  bago pa lang eh, and
- Value for Money  it is more expensive

*Given these data, is this a concern for the client, Brand A?

Answer: NO because Value for Money is much important (at least for Filipino consumers). The taste should
be more of the client’s concern!

* Should we change the Taste of Brand A? = NO!!! IT IS A HERITAGE BRAND  Lose old/loyal consumers!
 Recommendation: INTRODUCE VARIANTS!
- make sure taste has to be good or what consumers want!

CASE 4
ESTIMATING TRIAL

PURCHASE INTEREST UNIQUENESS RELEVANCE

120 120 120
Extremely Definitely
New & Relevant
100 100 Different 100
Definitely
Buy Very New & Somewhat
80 80 37 Different 80 Relevant
48 Probably 43
Buy
60 Somewhat May or May
May or May 60 60
New & Not be
Not Buy 24 Different Relevant
40 Probably 40 40
Slightly New 39 Somewhat
37 Not Buy
22 & Different Not
20 Definitely Relevant
20 20
Not Buy
9 12 Not at all 14 Definitely
New & Not
0 6 0 0 5 0 3
1
Different Relevant
Brand Interest Uniqueness Relevance

Filipinos are High Raters

“binigyan na nga ng taste test, ibabagsak ko pa ba?”

* Purchase Interest
- “Probably Buy”  Welp, hindi talaga! Pa-safe answer lang kasi ayaw maka-offfend.
- We ONLY look at “Definitely Buy” = 48

* We trim down the 48 = Definitely Buy Purchase Interest!

- If we want to take the Purchase Interest, Uniqueness, and Relevance all together, we:
 Get the TOP BOX of all 3 data sets, and…
 Get the UNION

Purchase Interest = 48 %
Uniqueness = 43 % 7
Relevance = 37%

8 0

Conclusion: 29% will DEFINITELY BUY because you are EXTREMELY UNIQUE (New & Different) and
DEFINITELY RELEVANT
 11/24/2016
Not the time to test the Advertising Message
 “Strategy already in place”
di kailangan itest kung tama
 At this point in time it is assumed that the advertising message has already been threshed out and
tested quantitatively and qualitatively via concept tests
 Hence, it is not to check whether the strategy us correct, but rather, the ability of the ad to bring this
to life

Qualitative vis-a vis Quantitative Advertising Pre-Testing

I. Qualitative Testing of Ads

 There is a school of thought that believes that advertising should not be tested qualitatively
o Although cheaper and faster, seen as unrealistic
o Can lead to over analysis
 In real world, consumers do not really think nor analyze (most) ads
 Advertising is not a group processing task
 And most are not subject to intensive discussion
 However, ads can be tested qualitatively, provided the method takes into consideration these nuances

Information Processing
People ‘process’ everyday experiences

EPISODIC SEMANTIC
- Based on direct personal experience - Analytical processing
- Short term memory, fades - Long term memory
- Fragments - Integrated
- Not closely scrutinized - Thought through, set of beliefs, a POV

Differences between Qualitative Methodologies

1. DEPTH INTERVIEW
- Individual, Idiosyncratic, Singular  EPISODIC

2. GROUP DISCUSSION
- Shared, Negotiated, Collective  SEMANTIC

Why NOT Group Discussions for Ad Pre-Testing?

1. Social Facilitation
o Complexity of the “face” issue
o Desire not to offend or degenerate (so you support / agree what others say)
o Desire not to admit to not knowing
o Propensity to automatically defer to elders, higher SEC, etc.

2. Group Consensus (not division)

3. A loss of individual information processing
4. Consumers don’t talk about ads in real life like they do in groups
5. Hot-housing and second time viewing effect
6. Semantic Knowing at the expense of Episodic Knowing

Why Depth Interviews?

 Able to elicit viewers’ naïve perceptions in the terms that they occurred while watching / reading the ad
 Emphasis is on assessing their EPISODIC MEMORY rather than Semantic, rational process
 Way around this for Focus Groups
o After initial viewing of the Ad, as respondents to write down their initial reactions and responses
to some key questions (…pasulat mo para di na pwede magbago)

Add Pretests are not a Pass / Fail Test

 BUT A TOOL TO HELP DECISION MAKING based on the objectives marketing has for the Ad and
their brand
 Dependent on what the ad is meant to do, iba ang pag-analyze ng ad

Why Advertise?

1. DELIVER INFORMATION about the brand

2. BUILD VALUES associated with the brand

- Coke commercial: Local Version  Nikki Gil
- Same across countries: Adapt
- Touch heartstrings, tweak it

3. SET UP what consumers can EXPECT from the brand

3 Key Marketing Questions on an Advertising’s Performance

1. Branded Memorability … will it cut through the clutter?

2. Communication … will it communicate on strategy?
3. Response … what effect will it have on behavior?

I. Brand Memorability
(Cutting through the Clutter)

- We watch TV to be entertained, not waiting to see adverts!

- So ad has to work immediately for consumer

 We are exposed to thousands of messages each day

 This is especially true in the PH which is 2nd only to Indonesia in terms of having the most
cluttered airwaves in the world

 People tend to remember only parts of Ads

o They remember the bits which INTEREST and INVOLVE them
o Generally, they continue to notice the same bits in repeat viewing

Focus of Attention = CREATIVE MAGNIFIER

 A Passive Medium
o Ads require involving elements to enter long term memories
o Creative / Involving elements can dominate people’s recall leading to a “Creative Magnifier”
effect
 Example: 30 second TV Commercial  5% Time BUT produces 45% Recall
 People are likely to remember only bits of ads
 Example of bad advertising: Beer ad where dog jumps out of window
 The dog jumping through the window has a 2% Share of Time but produces 40% Share of
Memory / Recall
 Dog = Creative Magnifier

 What makes Memorable Advertising? CREATIVITY!! [ Enjoyable + Involving = Memorable Ad ]

 Getting Attention: “Involvement Route”

o ACTIVE : + , - *We want a POSTIVE ACTIVE VOICE = an Engaging Ad!
o PASSIVE : + , -

 Getting Attention: either through HUMOR or EMOTION

 But making well branded advertising is NOT about showing the brand at the start of the ad
 All the best TV executions evaluated have the brand at its HEART

How can Strong Branding be Achieved?

Brand Intergral to Idea / Story / Structure

Brand Cues, Slogans, Jingles, Celebrities

Distinctive Style or Tone

Some Questions Marketing should Ask:

1. Can I describe the story of Ad w/o mentioning the brand?
2. Could Ad still happen if brand were not there?
3. What makes this Ad unmistakably an Ad for my brand?
4. What are likely to be the most Interesting and Involving parts of the ad? And is the brand genuinely
integrated there?
5. What does it highlight- the brand or the general product? (Bad if general product!)

II. COMMUNICATION
(Communicating the Strategy)

 Branded Memorability = Opportunity to Communicate

o The interesting and involving parts of the ads must be related to the intended communication
o The best Ads are the ones that have all 3 elements
a. ?
b. ?
c. ?

 Try to be single minded in what you say!

III. RESPONSE
(Effect on Behavior)

 All ads aim to sell, but different ads do it in diff ways

 Build Brand Values = EMOTIONAL
 Deliver Product Information = RATIONAL

EMOTIONAL - High impact / memorability

RATIONAL - Relevance? Believable? New News?

 Consumer Response:
1. Short Term
2. Long Term

 When to test Ads?

 Before Ad is finalized
 Otherwise, a lot would have been spent on production cost which could have been avoided

 Good drawings can help express even the most humans of feelings!
1. Animatic
 Drawing Board - the animatic needs to capture the essence of the idea
2. Final
 11/10/2016
ANALYSIS TYPES

DESCRIPTIVE  DIAGNOSTIC  PREDICTIVE

(can be Descriptive / Predictive)
- Tabulations - Advanced Cross Tabs - Modelling
- Charts - Multivariate Analysis a. Sales
- Maps b. Seasonality
- Weather Temperature
c. Elections
- Miting de Avance
- more money circulating
(promotion materials…)
d. Special Holidays /
Occasions
e. How much is spent on
Advertising

- Optimization

1. DESCRIPTIVE ANALYSIS
Issues:
 How many?
 What?

2. DIAGNOSTIC ANALYSIS
Issues:
 Marketing or Brand Usage Drives

Advance Cross Tabs Multivariate Analysis

- Category usage/commitment - Regression
- Brand loyalty structure - Discriminant Analysis
- Quadrant analysis

3. PREDICTIVE ANALYSIS
Issues:
 What will happen?
Options:
 Regression Modeling
 Conjoint
 Choice Modelling

COMMONLY USED QUANTITATIVE DATA ANALYSIS TECHNIQUES

1. Frequency Distribution
 Allows you to get a big picture of the data
 See how frequently the specific values are observed and what their percentages are

2. Descriptive Statistics
 Measures of Central Tendency
o Mean: Average
 Most popular measure, especially when there are no outliers
o Median: Mid-Point
 Is useful when the data set has an outlier and values distribute very unevenly
 o Mode: Most Frequent Occurrence
 Is useful when the data is non-numeric or when asked to find the most popular item

 Measures of Dispersion
o Range
 Difference of maximum and minimum values
o Standard Deviation
 How much variation from the mean

3. Comparing Means via Statistical Testing

 T-test
- allows you to check if the difference between 2 mean scores is statistically significant
 Paired T-test
- Used when the data of variable 1 and the data of variable 2 were collected in parallel from each
individual such as “before versus after” cases

4. Cross-Tabulations
 Provides structure to quantitative data, making it easier to manage and understand
 Can examine one variable in-depth; or look at multiple variables to help understand the relationship
between these variables
5. Correlations
 Used when you want to know about the relationship between 2 variables
 For example, you want to know consumers’ willingness to pay (WTP) and their ratings for the product
quality (RPQ)
o Correlation is 1  means the WTP and RPQ quality are completely positively correlated
o Correlation is 0  means there is no correlation between the 2 variables
Correlation is -1  shows they are completely negatively correlated, meaning the higher one
variable is, the lower the other variable (inversely related)
o If the absolute value of the variables is bigger than 0.5, they are usually significant

 Correlations show whether and how strongly pairs of variables are related

 Is variable A affecting variable B

Variable A OR Variable B
 is variable B affecting variable A

6. Linear Regression
 Relationship between the variables
 Estimation of the best fit for advertising by looking at how sales revenue (dependent variable) changes
in relation to:
a. Expenditure
b. Placement
c. Timing – in bursts ba?

7. Text Analysis
 Open questions which will allow respondents to fill in their own answers.
 When sample is big, it is difficult to analyze each respondent's answers.
o Example: Tell children, 3-5 y/o to tell a story and analyze what words come out most often/
frequently used words

8. Discriminant Analysis
 Looking at Variables that can help you discriminate 1 group from another
 Example: How do you identify SEC?
o Income, # of Appliances, Facilities owned, Cars…?
 o Appliances  TV not counted: common to ABC ; Look for: microwave, aircon, washing machine
o Do you Own the house or Rent it out?
- If Rent, how much do you pay?  There are assigned points per range!
- Accumulated points will determine the SEC
o Structure of House
- Single detached or not?
- Maintained from the outside or not?  lower points if dilapidated, tuklap paint

9. Factor Analysis
 Psychographics
- Grouping according to values system / lifestyle / beliefs
- The study and classification of people according to their attitudes, aspirations, and other
psychological criteria, especially in market research

Always Most of the time Often Sometimes Never

- Used to determine which are the strongest underlying aspects of a larger set of variables that
are inter-correlated
- Where many variables are correlated, Factor Analysis identifies which relations are strongest
 Psychographic study where one is looking at 100+ statements
- Groups statements together based on how people answer
 End up with 8 - 9 factors
 Either high or low ratings sila
 Easier to analyze factors than 100+ statements
- Analyst:
 Look at group of factors and give these a name

10. Cluster Analysis

 Used to separate objects or respondents into a specific number of groups that are Mutually Exclusive
but are also Relatively Homogenous
o Mutually Exclusive:
- 2 or more events cannot occur simultaneously / cannot belong to 2 or more groups! (1 lang!)
 Used in market segmentation where analyst is interested in the similarities that facilitate grouping
consumers into segments and is also interested in the attributes that make the market segments
distinct
11. Conjoint Analysis / Trade-Off Analysis
 Example:
In buying a Car, you consider  price, color, model, fuel efficiency, horsepower, manual / automatic
o If you ask people, these are all important or somewhat important
o To consumers, everything is important  Apple Pie!
 Looks at what are the trade-offs!
 Gives you choices!
o Example: Automatic car is Php 80,000 more expensive  are you willing to pay? YES!
o Then this means that for you: “Automatic Transmission > Price”
 In the end, it will give you “Utilities”
12/1/2016
CONCEPT TEST
Normal Flow of Testing

Idea Concept Product Full Mix

Screening Evaluation Testing Test
1. Idea Screening – Narrowing down potential ideas
2. Concept Evaluation – Validation and optimizing the idea
3. Product Testing – Zero in winning formula
4. Full Mix Test – Validation of business plans and inputs to launch

Concept Test
What?
 Process of evaluating consumer response to an idea before introducing a product to market
 Identifies perceptions, wants and needs of a product or service
Why?
 Identify who is interested in the product/potential market
 Assess relative appeal of alternative ideas / positions
 Inputs to product development plus distribution, promotion, pricing
How?
 --

Sample Concept Presentation

“ Situationer or Set Up + Reason to Believe = Resulting Benefits ”

1. Situationer / Set up:

 “Hirap pag tag-ulan, labada amoy kulob kaya dapat gamitin Downy FabCon na may ingredients
na....para kahit umuulan mabango"
 Should you restrict your children to play in dirt kasi mahirap maglaba? Use Breeze because it has
“Active Clean” which cleans dirt
 Ingredient could be made-up bec it doesnt technically exist
o Lactobacillus protectus: Meron ba? Wala naman in real life!
o Pero ito yung reason to believe, to give credence to what they can deliver

2. Reason to Believe
 Why deliver
 Test different reasons to believe
 Allows children to explore the world, kaya you need not be afraid that their clothes will get dirty kasi
may breeze

3. Resulting benefits

CONCEPT TEST METHODOLOGIES

Concept Generation and Screening

 Initial screening of possible ideas, can help bring down costs, especially if testing a lot of ideas.
 Results are normally compared to normative data.
 After initial screen, normally then do qualitative testing to further flesh out the concept.
 Final concepts are then put through more rigorous quantitative testing
New Products
 To identify the benefits most important to customers
 And the features that are most likely to create those benefits
 Differentiate between the “Need to Have” and “Nice to Have” features
 Will help identify and prioritize features for product development as well as promotion

Production Modification or Upgrade

 Reformulations, modifications, and upgrades can add new life to existing products and services
 Essential to be able to identify the optimal bundle of features
 Even more critical to identify the "Need to Have" and "Nice to Have Changes"
  In order to create products and services that are truly "New and Improved," or worthy of a new release
or upgrade
o *Much more expensive anti-bac detergents - are they willing to upgrade

Migration Path Tests

 A lot of products and services offer upgrades or migration paths
 For a lot of new customers, an upgrade is seen as the next new thing
 Understand key features and benefits then map consumer needs to check likelihood of customers
upgrading and adopting the new technology
 Weigh if benefits outweigh the costs and challenges of migrating
o E.g. Apple iPhone vs Samsung
 People are buying Samsung because of the larger screens
 If nilakihan ko yung screen ng iPhone, lilipat ba Samsung?
 Pero kung ginawa kong mas malaki, ma-maintain ko ba loyalty ng current customers ko?
(Samsung users will go to me, pero my long-time users might not be retained since they
are loyal to the smaller screen)

Questions in CPT  Monadic

Conventional Questions Other Measures

- Overall Reaction - Awareness of…
a. Acceptability a. Competing Products
b. Desirability b. Substitute Products
c. Liking c. Complementary Products
- Likes & Dislikes - Superiority over existing products
- Purchase Interest - Usage
- Relevance a. Likely usage in specific situations
- Uniqueness b. Frequency of use
- Credibility - Value / Price sensitivity
- Rating on specific product attributes - Market Segments most likely to use / consume
- Image attribute ratings

Questions in CPT  Preference

Conventional
 Overall Preference
 Reasons for Preference

Optional
 Preference on specific product attributes

Things to Look Out for In Concept Tests

Need to identify…

1. Effectiveness of individual concept components

2. Barriers to achieving the concept's full potential

3. Consumer empathy with the concept

o If on the rational level, you are not sure if may something compelling
 o Use something relevant in the Situationer

4. How concept compares vis-a-vis competition

o #1 Fabcon in PH: Downy, sa EU, Comfort
o Inunahan ng P&G ang Unilever (since nauuna Unilever sa 3rd World)
 Kinuha lahat: fragrance, ease of use, kulob
 Pagpasok ng Comfort, wala nang positioning na natira. Sila lumalabas na gaya gaya.
Walang point of uniqueness, wala nang USP.
 They came out with perfumed variants from Paris, na nag-iiba ang amoy kapag isang
punas.

5. Clarity in communicating the benefits

o "Dirt is good" – Breeze
 Hindi kailangang mag-alala sa dumi kasi walang problema kung madumihan dahil
breeze will take care of it. Meron kasing ingredients ang Breeze to clean

6. Memorable product personality

o Light, serious, flirty?
o Compare:
 Colgate - serious, doctor
 Close Up - romantic, wild
o Has to be consistent

7. High value perception

o Is it value for money?

8. Brand equity assets

o If I come out with this particular concept, does it run contrary to what my brand stands for, or
supporting?

9. Consistency in brand image

Things to Consider: Measure Purchase Intent with Caution

 Respondents tent to over-claim purchase intent

o Better to compare with normative data, then set action standards against this norm

 Use Purchase Intent with other measures

o Normally paired with uniqueness

 Regress purchase intent with other key measures to get a refined value

PRODUCT TESTS

- Testing for scientific, engineering, and quality assurance

- Foundation for technical communication
- Provide a technical means of comparison of several options

Why Do Product Tests?

1. Quality Improvements
 2. Leadership Stance
3. “Gold Standard”
o “Preferred by 9 out of 10“
4. Competitive Status
5. Competitive Parity
6. Strengths and Weaknesses
7. Cost Reduction
o Compare reformulations
o Profit &Loss Analysis
- Willingness to lose market share, but increase bottomline?
o Take out something that consumers will not notice
- Instead of increasing price, just reduce the content instead
- A lot consumers found 360 ml of Coke too much, so reduc
8. Improve Margins
9. Source of Additional Funds
o New Products
o Delivery against promise

10. To answer these types of questions:

a. Can a lower cost formula perform as well as the more expensive product currently on the
market?
b. Would a product formula improvement manage to attract new customers whilst maintaining
current users?
c. Of the product formula options we have available, which one is best?
d. How well does this formula compare against the competition?
e. How well does my product fit with the concept?
- Madedeliver ba ng product yung sinasabing promise ng concept?
- Concept and basis for adverts and positioning

Two Types of Action Standards for Product Tests

1. Quality Improvement - Test product must be superior (to existing product or normative level)
2. Cost Reduction - Test product not significantly worse

Product Testing Location

11/8/2016

[Continuation of Step 4: Weighting]

Exercise

STEP 5: MAKING SENSE OF COMPUTER TABLES