Consumer Marketing Research Innovation: Assessing New Tools, Technologies and Approaches to...

BEST PRACTICES,

®

LLC

Best Practices, LLC Strategic Benchmarking Research

Consumer Marketing Research Innovation:

Assessing New Tools, Technologies and

Approaches to Understand and

Communicate with Consumers

BEST PRACTICES,

®

LLC

Table of Contents

I. Executive Summary pp. 4-21

Research Overview pp. 4

Universe of Learning pp. 5

Innovation Widely Dispersed but Thinly Seeded pp. 6-8

Key Findings pp. 9-21

II. Universe of Learning: Key Demographics of Participating Companies pp. 22-25

III. Innovation in Marketing Research Approaches pp. 25-30

IV. Innovation in Marketing Research Tools pp. 31-74

Using Innovation to Update the Use of Analysis Tools for Key Market Research Activities

V. Marketing Research Trend Changes – Qualitative Trends pp. 75-82

VI. Marketing Research Trend Changes – Quantitative Trends pp. 83-89

VII. Emerging Market Research Tools in Pharma Sector pp. 90-95

VIII.Emerging Market Research Tools in Non-Pharma Sector pp. 96-103

BEST PRACTICES,

®

LLC

Table of Contents

X. Communicating with Consumers pp. 104-108

XI. Trends in Consumer Communication pp. 109-115

XII. Evaluating Direct-to-Consumer Marketing pp. 116-118

XIII. Lessons Learned and Pitfalls to Avoid pp. 119-123

XIV. Appendix pp. 124-144

XV. About Best Practices, LLC pp. 145

BEST PRACTICES,

®

LLC

Topics Included Study Overview

Innovativeness of MR Tools for:

Forecasting

Patient Flow Mapping

Positioning

Segmentation

Brand Research

Concept Testing

Brand Awareness

Customer Insights

Direct-to-Consumer

Tactic Testing

Target Product Profile Testing

Utilization of Emerging MR Tools

Effectiveness of Consumer Marketing Tools

Best Practices, Pitfalls & Lessons Learned

Research Objective: New technologies are

transforming how consumers educate themselves

and make critical purchasing decisions.

Correspondingly, across industry sectors the

consumer marketing playbook and marketing

research analysis approaches are evolving to

better identify winning tools and techniques.

This cross industry study addresses topical issues

that include new media for interacting with

consumers, new qualitative techniques for insight

mining and new quantitative techniques for

research data analysis.

Methodology: Best Practices, LLC engaged 59

Market Research leaders at 58 companies through

a benchmarking survey instrument. In addition,

research analysts conducted executive interviews

with eight selected respondents to collect

qualitative data and insights.

Research Project Objectives, Methodology & Results

Best Practices, LLC conducted this cross-industry benchmarking study to identify current and

evolving approaches for consumer marketing and marketing research techniques and tools. This

study contains extensive qualitative data.

BEST PRACTICES,

®

LLC

59 Benchmark Participants Represent Nine Industries

Benchmark Class

Fifty-nine benchmark survey respondents from 58 companies participated in this study. More than 40

percent are directors, VPs, and C-level and a third are manager level. The rest fall under “other.” The

participants represent more than nine industries with pharma the largest segment at 30%. To add

qualitative depth to the study, eight interviews were conducted with market research leaders.

5

Copyright © Best Practices, LLC

Pharmaceutical Benchmark Class Non-Pharmaceutical Benchmark Class

Sekisanchi LLlC

R2Business Solutions

(n=18) (n=41)

BEST PRACTICES,

®

LLC

Innovation Has Many Faces in Consumer Market Research

The “Innovation Insights Story” in Consumer Marketing Research reveals ongoing evolutionary change –

rather than revolutionary disruptive technology change. Innovation is broad reaching, incremental and

assumes various forms through tools, technology, process improvements and hybrid adaptations of

proven practices.

6


Examining Innovation

Across Consumer

Marketing Research

Landscape

3. Innovation Is Widely Dispersed But Thinly Seeded: 80% Of

Venues Are Seed Beds With 5% to 12% of Companies Innovating

At Most Research Milestones 4. No Single Company Has Cornered the Market on M.R.

Innovation

5. Innovation Hot Spots Exist In Customer Flow Mapping,

Segmentation & Concept Testing. Innovation Has Many Faces:

Process, Tools, Hybridization, Deeper, Faster & Cheaper

2. Innovation Is Evolutionary / Incremental Across the Market

Research Process

6. Seed New Innovation Projects Where It Most

Benefits Your Existing Brands & New Products

1. Most Companies Rate Themselves Low on Market Research Effectiveness &

Innovation

BEST PRACTICES,

®

LLC

Qualitative Key Findings: Mobile Research and Online Tools

Improving Report Presentations Enhances Engagement: Finding innovative or fresh ways to

present reports/studies – such as formats like Prezi or the use of dynamic visuals – is an important

way to keep staff and internal stakeholders engaged.

Mobile Research Will Be a Key Tool for Market Research in the Future: Mobile research, with

its rapid delivery of point-of-care and point-of-sale data, will be an important tool for marketing

research in the future. Seventy percent of the Pharma Segment is using mobile research either

sometimes or frequently. Meanwhile, only 36% of the Non-pharma Segment is using it either

sometimes or frequently.

Online Communities Offer Bottomless Pool of Consumer Insights: Online communities are a

valuable qualitative source of consumer insights and yet the tool appears to be underutilized. In the

Pharma Segment, 50% said they were using online communities sometimes while the other half

said they don’t use them at all. Meanwhile, 61% of the Non-pharma Segment said they use them

either sometimes or frequently.

Social Media Listening Is Another Underutilized Tool: Social Media Listening is another

underutilized tool that can inform market researchers across many topics, including product

positioning, brand awareness and customer insights. In the Pharma Segment, 40% said they don’t

use it. The Non-pharma Segment, meanwhile, had 52% not using.

7


The following key findings and insights emerged from interviews and qualitative survey responses in

this study.

BEST PRACTICES,

®

LLC

(n=59)

Q1. Please identify which industry sector your company represents

8


Industry:

Pharma, 30%

Finance, 2%

Healthcare, 10%

Consumer Goods, 3% Marketing/Market Research Agencies,

15%

Electronics, 2%

Services, 15%

Telecommunications, 5%

Other, 17%

*Others:

Utilities

Education

Postal

More than 9 Industries Participated in Innovation Study

The benchmark study group was anchored by biopharma companies, which made up 30% of respondents. Healthcare (non-manufacturers), agencies, telecommunications, services, consumer goods, finance and electronics companies also participated in this marketing research innovation study.

BEST PRACTICES,

®

LLC

Q. If you do not feel you have a highly effective market research organization, rate what factors are impeding your

effectiveness?

9


Effectiveness Obstacles (Total Benchmark Class):

n =

50

51

48

50

50

47

49

50 55%

49%

60%

30%

26%

21%

14%

4%

3%

43%

23%

44%

48%

48%

31%

36%

42%

8%

17%

26%

26%

31%

55%

60%

Other

Too Much Reliance on Qualitative Data

Too Much Reliance on Quantitative Data

Not Enough Attention to OnlineTools/Social Media

Outdated Analytical Tools

Lack of innovation

Not Enough Budget

Not Enough Staff

Not a Problem Minor Obstacle Major Obstacle

Staffing & Budget Are Two Greatest Obstacles to

Market Research Effectiveness Insufficient staff levels and budget are the most commonly identified obstacles impeding market research effectiveness across all participating companies. These are followed closely by a general lack of innovation, outdated tools and inattention to online/social media environments.

% of Respondents

BEST PRACTICES,

®

LLC

Positioning Lacks Innovation Across MR Processes

Q. Please rate your perceived innovativeness on the following market research dimensions for Positioning:

10


Positioning Excellence:

n=

40

40

41

40

Innovative:

5%

3%

0%

3% 25%

20%

28%

20%

73%

80%

70%

75%

3%

3%

5%

Reporting and Communicating

Analysis and Interpretation

Data Collection

Methodologies and Tools

Not Innovative Middle of the Road Innovative

% of Respondents

BEST PRACTICES,

®

LLC

Quant and Qual Working Together Create Synergy

Innovation in market research doesn’t have to be a new tool or methodology – it can come from finding ways to combine work streams to reduce job timelines. One participant thought having qual and quant teams work closer together would accomplish that goal.

11


“We do see where qualitative is starting to inform quant where it didn’t before. I’ve been in

the offices of most major market research firms in the world and there’s usually a keypad

door separating the qualitative teams from the quantitative teams.

We’re seeing that change with online ‘qual’…we’ve got the technologies that allow us to

bring people out of a large segmentation study, a customer satisfaction survey, and bring

into a qualitative discussion for a deeper dive with them. That’s allowed the quant-qual

teams to co-mingle on these projects.

It is unbelievably common where you do a segmentation study and find some unexplained

thing and go through the keypad door and say, ‘Qual team here’s something to go

explore.’ Well that can take months…today we’re radically reducing those timelines by

giving them technology that the quants can run themselves or that makes the quant and

qual teams work together very closely.” – Chief Innovation Officer

Qualitative Component

Quantitative Component

Merging to

provide more

realistic Insights

BEST PRACTICES,

®

LLC

Q. Rate the effectiveness of various tools, technologies and channels that you use to communicate, educate, and inform

consumers in your chosen markets:

12


Consumer Marketing & Communication Tools (TBC):

n=

26

24

26

25

24

TBC Segment: Customized E-Mail Campaigns Top Second Tier of Consumer Communications Customized e-mail campaigns topped the second tier of the list of tools, technologies, or channels that organizations use to communicate with consumers. Sixty-nine percent of participants felt e-mail was either somewhat or very effective.

% of Respondents

54%

36%

19%

29%

19%

4%

8%

4%

4%

4%

17%

28%

23%

21%

8%

21%

20%

46%

33%

54%

4%

8%

8%

13%

15%

Viral Marketing (marketing communicationdesigned to be passed around among users)

Online Channels /Sponsorships (YouTube,Blogs)

Social Media

Consumer/Patient Advocacy Groups

Customized e-mail campaigns

Don't Use Very Ineffective Somewhat Ineffective Somewhat Effective Very Effective

BEST PRACTICES,

®

LLC

SEO Part of Doing Business in U.S. Marketplace

One of the important – and dynamic – online consumer marketing tools is Search Engine Optimization. While it can bring hundreds, if not thousands, of customers to your business, the SEO rules of search engines like Google are constantly evolving.

13


“We have a lot of secondary reports

about where consumers go to get health-

related information. In this day and age,

consumers go to the Internet and, for the

most part, people just to go to a search

engine and type something in and see

what comes up.

Whatever you’re selling, you better come

out on top, otherwise they’re probably

not going to find it.”

- Senior Specialist,

Global Market Research

Rules for SEO Success

More Focus on Keyword

Portfolio than Ranking

Create Problem Solving Content

Publish Content on

Quality Sources

Use Social Media for

Distribution & Promotion

of Content

http://www.inc.com/aaron-aders/new-rules-for-seo-success-in-2013.html
















BEST PRACTICES,

®

LLC

Best Practices, LLC 6350 Quadrangle Drive, Suite 200

Chapel Hill, NC 27517

www.best-in-class.com

About Best Practices, LLC

Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics, and winning strategies of world-class companies.

14


http://www.best-in-class.com/





Consumer Marketing Research Innovation: Assessing New Tools, Technologies and Approaches to...

Business

Transcript of Consumer Marketing Research Innovation: Assessing New Tools, Technologies and Approaches to...