Professional Documents
Culture Documents
Editor-in-chief
Simon Chadwick
Editors Regulars FEATURES
Angela Canin, Kathy Joe
Sub-editor 6 8 regional profile
Christopher McLaren
Editor's note latin america
Editorial advisor
Getting Creative Uncovering new opportunities
Marco Bevolo
Editorial Board
39 36 trends
Vinay Ahuja of P&G
Rex Briggs of Marketing Evolution on the way up competitive intelligence
Ansgar Hölscher of Beiersdorf AG Riding the Mexican wave and market research
John Kearon of BrainJuicer
Friend or foe?
David McCaughan of
51
McCann Erickson Japan
Sean Meehan of IMD media scan 44 research in business
Contributors The digital world – quo vadis? the future of business
Jo Bowman, Robert Heeg, David Murphy, Research leaders demand change
Manfred Mareck, Surinder Siama 55 and transformation
Advertising sales
Daniel Migchels
marketing case history
Increasing sales by targeting 48 research challenge
business@esomar.org
Production co-ordinator
promotions to “draw” categories the skills of tomorrow
Mascha Ringers And how to get them
56
Design & Art direction
Fortune Street Esomar live
fortunestreet.com
Print 57
Pijper Media, Groningen
esomar live
Subscriptions Asia Pacific Tour
customerservice@esomar.org
14 COVER STORY
Mind games
an interview with sir ken robinson
Simon chadwick
Getting
Creative
I
n my line of work, I get to interact Never before was there a need more In our business, creativity leads to
with many different research pressing for a profession to show its impact. And impact is what we seek to
companies and professionals. Many of creative side. As Sir Ken Robinson says, achieve. What is the point of research if
them leave me really jazzed. Why? “creativity is a bottom line issue”. The it does not lead to insights that in turn
Because they are so creative, so world around us is changing at an lead to different business decisions?
disruptive and so challenging that you ever-increasing pace; the consumer is Anything less and we are left in the land
can’t help but believe that they will changing along with it; and, to meet the of “nice to know”. Nice to know does not
change the face of research. need of the changing consumer, businesses lead to successful decision making and
Many of the companies that leave me need to innovate ever faster to survive certainly is no guarantor of prospect of
jazzed are start-ups or young firms that and grow. Innovation requires creativity continued employment for researchers.
have a completely different take on what and creativity requires stimulation. If you doubt that, just look at what is
market research is, why it exists, why Our job, therefore, is to stimulate. No happening in public sector research in
they exist and what they are here to do. longer is it enough for researchers to be the UK where government skepticism
Even their names blazon their intent to the neutral, objective purveyors of about the value of research is leading to
do something different: Truth, Seek, information. We need to be advocates, mass layoffs of research professionals.
Revelation, Incites, Insight Exchange, provocateurs and change agents. We That’s the dark side. The light side is
InsightsNow!, BrainJuicer, Fresh Minds. need to take a stand. We need to tell the that this really is the age of Aquarius in
Not that the larger, more established story of the consumer, the market, the research – at least in the commercial
companies are not doing things that are business – and, in doing so, affect sector. Creativity and innovation is
equally creative, disruptive or strategy and strategic decisions. becoming the norm and the end game is
challenging, but perhaps it is more And this is where it all comes full effectiveness and impact. Sexy,
difficult if you are a large, established circle. In order to tell the story so that it inspirational and aspirational indeed
player to get that message out to the sticks, we need to be creative. In order
wider world. The point is that our world, to get to the underlying emotions of
the world of market research, is an consumers that drive decisions, we need
incredibly creative one. As Orlando to be creative. In order to even access
Wood puts it, it is a world where we are people so as to understand them, we
moving from the role of “insurer” to one need to be creative. In order to engage
of “detective”, one that is sexy, them in our insight detection processes,
inspirational and aspirational. we need to be creative.
marcelo ballve
Uncovering
new
opportunities
Greater connectivity and the increasing spend of lower-income consumers are attracting
attention from marketers and research companies looking for growth
L
atin America proved surprisingly internet penetration is growing quickly.” Groupon, Facebook and Google all
resilient during the 2009 economic Because Mexico currently has announced investments in growing Latin
crisis and last year the region’s surprisingly low internet penetration (27% American operations.
main economies recovered well: of the population of 110 million according The digital audience measurement
Brazil grew 7.5% in 2010, according to to the Mexican Internet Association – the company comScore announced in March
the IMF. Having consolidated and country trails even its Latin American that Latin America’s internet population
internationalised in the last five years, the peers in this statistic) there is real increased 15% in 2010. 113 million people
regional market research industry is now short-term catch-up potential. aged 15 and older accessed the web
well positioned for the opportunities ahead. In Argentina, with about a third of either from home or at work. In Mexico,
Research executives and ESOMAR Mexico’s population, internet penetration the growth rate was even higher at 21%.
members in the region say they are looking is at 64%; in Colombia it is 49%; and in Colombia, Brazil, and Venezuela also
closely at lower-income populations, Brazil it’s 38%. saw growth above 20% for the year.
fast-growing countries and in particular “Advertisers and publishers are just
online research, since technology Online research beginning to realize the tremendous
take-up has proceeded so quickly. “Online research will grow as internet potential that exists for this channel
One IBOPE Mídia study published by penetration increases and the technology throughout Latin America,” says Alejandro
the research association ABEP in reaches new social strata,” says Alicia Fosk, comScore senior vice president for
Brazil found that online coupon sites in Martín del Campo, CEO and founder of the region.
the country had reached a monthly Qualimerc and ESOMAR’s Mexico
audience of 13.2 million in December, representative. “There’s also more interest Disconnects
and e-commerce sites 30 million. in measuring the impact of social media. However, there remain millions of Latin
“The whole online area is seeing very Latin America lagged in adopting social Americans in the region’s middle and
important growth in our countries,” says media, but growth has been extremely lower-middle classes who don’t access
Manolo Barberena, founder of Pearson rapid, attributable to our great appetite the internet. In some countries, research
in Mexico, part of the Kitelab research for maintaining and strengthening providers are hampered by a lack of
group. “For example, in Mexico we already interpersonal ties.” phone penetration, let alone internet
have roughly 75 million cell phones, and The technology industry’s new giants penetration.
more and more of those are traded in are taking notice of Latin America’s In Bolivia, the International
for smart phones - one reason why internet potential. In 2010 and 2011 alone, Telecommunication Union estimated in
Mind games
an interview with sir ken robinson
O
riginally from Liverpool in the north of England and Years ago, many businesses trained people for a specific
now a resident of Los Angeles, Sir Ken Robinson job and encouraged them to perform it more quickly. Thinking
was Professor of Education at the University of of a better way of doing things was positively discouraged. No
Warwick for 12 years and has advised governments, longer. “We’re living in times of revolution, collectively facing
international agencies and Fortune 500 companies on challenges that no previous generation has had to deal with,”
creativity, education and the economy. He has just released an Sir Ken claims. “If we’re to meet these challenges, we have to
updated edition of his 2001 book Out of Our Minds: Learning think very differently about ourselves, the people we work
to Be Creative. Robinson’s bugbear is the current state of with, and our children.”
education in the Western world. His position, in a nutshell, Much of the problem with the current devaluation of
is that a system designed during the industrial revolution to creativity in education and business is a failure to understand
churn out a mass of employees is no longer relevant to the what it actually is. “There’s a misconception that creativity
business world future workers will enter now. Society has is about special people, and the cult of celebrity perpetuates
come to prize science and academia as the realms of the that,” he says. “My argument is that we’re all born with great
clever, and the arts as a distinct, curious but slightly inferior creativity.” Thus the use of the term “creative industries”
world occupied by creatives. This view, he insists, is not only to describe fields such as music, film and advertising is
wrong, it’s intensely damaging, and reform is not enough. problematic because it implies that other industries aren’t
Education systems need to be transformed. For parents, Sir creative. To thrive, he insists, all industries and all businesses
Ken’s take on how school systems are failing to nurture their must be creative.
children’s talents and equip them for the world of work is
panic-inducing. For anyone running a successful business, New ideas, to order
it’s only slightly less alarming. That means all employers need creative people. But how to
The fates of education and business, he says, are intertwined. find them? And what is creativity anyway? Sir Ken’s own
“Most schools are suffering from a plague of standardisation definition is that it’s a very practical process that consists of
enforced by government, stunting (children’s) development in putting one’s imagination to work. “It’s the process of having
a way that’s personally tragic and economically catastrophic,” original ideas that have value,” he says. “Innovation is putting
he explains. “Most children think they’re highly creative; most good ideas into practice.”
adults think they’re not. This is a bigger issue than it may A business that thrives on innovation needs a steady stream
seem. So many people have a low view of their own talents, of these ideas. “Everyone occasionally has a good idea, but
what they’re really capable of, that people conclude they don’t the challenge is to be able to do that to order.” Identifying
have any talents.” people in a job interview who are likely to be creative is no
Why does it matter to business whether people are simple task. And, if Sir Ken is right in asserting that some of
creative or feel creative enough to describe themselves as the best ideas are the product of collaboration by a diverse
such? “For businesses, creativity is a bottom-line issue,” he team of people, how does a manager identify the person who
says. If people are emerging from educations without that will either come up with fantastic ideas, or help others to do it?
creativity, then that’s a problem. He refers to an international “First, people aren’t creative in general, they’re creative at
study by IBM, for which 3,000 business leaders were something, and people creative at something in particular
interviewed on the current challenges to business success. may not be creative at something else,” he says. One of his
Three strong themes emerged: businesses must be able to suggestions for assessing creativity for the workplace is that it
deal with the increasing complexity of people’s lives; involves a kind of audition process. “Put people in situations
organisations must therefore be adaptable to change; and where they need to demonstrate their abilities in the field that
they need creativity. you’re interested in, and you need to be clear to some degree
kyle findlay
The ‘Dark
Continent’
lights up
Mobile access in Africa and its implications for market research
M
obile technology is unlocking Figure 1: Africa is home to roughly a billion people in an
Africa. While it offers many area larger than Europe, India, China and the USA
challenges, Africa also presents
NETHERLANDS
many unique opportunities for BELGUIM
GERMANY
business and research. PORTUGAL SWITZERLAND
The continent of Africa is rainbow FRANCE
ITALY
SPAIN
hued, consisting of over fifty countries.
Nonetheless, it is still sometimes EASTERN
EUROPE
pejoratively referred to as the ‘dark
continent,’ a legacy of the 19th century UNITED STATES
tabloid-friendly adventures of explorers
like Mungo Park and David Livingstone,
and literary classics like Joseph Conrad’s INDIA
Heart of Darkness.
For much of the 20th century, the
continent struggled to extricate itself
from its colonial past. Throw in
confounding factors such as wide- CHINA
spread disease and famine, and it is no
wonder that Africa has been slow to
find its feet. Recently, however, things UK
have begun to change rapidly.
Africa is now a land of opportunity,
JAPAN
with a billion people clamouring to be
welcomed into the fold of 21st
Image source: Information Is Beautiful
century business.
There is a catch, though. Opportunities countries are almost as high as those in Africa Leading the Way
exist for those who can fulfil the new developed countries, however the mobile What has become clear in the African
found needs of African customers on channel comes with certain considerations. mobile space is that African customers
their own terms, rather than imposing Foremost among these is the in general use their mobile phones in
developed world paradigms. As Gavin capabilities of the phones that the a particular way. Based on his own
Marshall, head of innovation for Mxit, majority of customers own. Most experiences on the ground, Hersman
South Africa’s largest social network, own older feature phones. While some observes that “people in Africa really use
puts it, “needs always create a vacuum might be able to access the internet, all the features on the phone, whereas
which pulls the market in a direction. this is not a feature that can be relied (especially on feature phones) their
The trick is to find out where those on. According to Dharmenda Jain, group Western counterparts tend to only use
vacuums are and to start creating stuff head of data processing for TNS RMS a few of the features.”
that fulfils the need.” West Africa, “mobile usage is limited to Indeed, TNS’s own research has
basics like voice and SMS. Only 9% of highlighted the differences in usage
The African Challenge the total mobile penetration use mobile patterns between developed and
While African countries represent a for internet or any other data services.” developing countries (see Figure 3),
gleaming opportunity, there are significant “You have to assume that the majority demonstrating that mobile phones are
hurdles that need to be overcome. These of mobile devices are low spec,” agrees the preferred platform for a wider
include a legacy of poor investments in Rob Jones, head of information systems range of activities (especially banking
power and telecommunications networks, & technology for TNS Research Surveys and entertainment functions like gaming
low literacy levels, and less competitive in South Africa. “Blackberry, Apple and and music) in Sub-Saharan Africa.
business environments dominated by a Android are not representative.” The internet is still novel to the many
few incumbent players. The dominance of feature phones is Africans who have yet to gain access to
Further issues relate to the very nature by no means assured going forward, desktop computers. Consequently,
of Africa itself. Considering that the though. Bob Burgoyne, who focuses on African mobile businesses are scrambling
African continent is larger than Europe, the Kenyan technology sector for TNS to make up for lost time. In some cases
India, China and the USA combined, it RMS, says that while Nokia feature phones they are leap-frogging their developed
should be no surprise that it is comprised still dominate, they are witnessing an world counterparts, as in the case of
of an incredibly diverse collection of increase in the use of Chinese smartphone M-PESA, a mobile banking platform that
cultures. This represents a challenge handsets, both legitimate versions and has given millions access to banking for
from a business perspective, as its many knock-offs. the first time in their lives.
different regions rely on a vast array of Erik Hersman, the co-founder of Services like MXit, Ushahidi and
languages and customs. Ushahidi, an open-source crowdsourcing M-PESA have proven that Africa is a
platform that first came to global fertile product development environment.
The Mobile Challenge awareness for its key role in covering the Its extreme limitations force businesses
Mobile penetration rates in African 2008 Kenyan election crisis, expands on to employ unprecedented creativity in
The client-side
researcher 2.0
The skill profile is evolving with less core research and more synthesis
and consultation for greater business impact.
T
he role of the market research department has evolved Figure 1: The evolving role of market
from data provider to consultative partner over the last research
15 years or so. The first major step in this transformation
was insight. But insight alone is insufficient for real
business impact: today’s market research team must be a
consultative thought partner to the business, in addition to its
traditional duties. This requires staff to spend more of their
time on consultation and synthesis and develop stronger
Business Value
consultation and insight. Indeed, a Market Research Executive become more scientific. what” becomes more —— Information sources
—— Computing power makes critical. proliferate.
Board (MREB) survey of 1,681 internal business partners in 36 quant practical. —— Research becomes a —— Societal attitudes and
—— New studies add high decision supporter, not survey fatigue skew
large companies shows that 61% want market research to play value given low level of information order taker. samples, making core
research less reliable.
a strategic partnership role, but only 29% believe it does so today. existing information. —— Truly new information
scarcer. —— Volume of past research
More recently, we see leading companies finding greater reduces value of new
learning.
business value in what they already know than in the next
marginal point study (see Figure 1). But harnessing accumulated Smart research functions Smart research functions Smart research functions
Research
Reaction
Weak: Needs
Inprovement 1
Cross-Project Analysis
and Insight Generation
Nonlinear
Thinking
Systems
Thinking
Ability to Influence
Business Partners’ Decisions
Storytelling
Creation of Quality
Recommendations
Business
Acumen
Proactive Indentification
of Research Opportunities
Listening
Results
Presentation
Methodology
Expertise
Social Scientific
Expertise
Digital Media
Expertise
Industry/Company
Expertise
Report
Writing
Project
Management
the coca-cola company is one of the world’s largest soft Motorola Mobility is a leading manufacturer of wireless
drink retailers and manufacturers. also known for sprite, telephone handsets and accessories, set-top boxes, and
powerade, and other beverages, coke offers more than 500 video distribution systems.
brands in more than 200 countries.
Situation:
Situation: Motorola sought increased impact by creating dedicated
coca-cola’s research team had the opportunity to work on roles. a careful analysis of the research team demonstrated
important strategic projects, but few yielded the strategic not only clearly distinct consultants and research managers,
impact desired. the head of research diagnosed the but also individuals with valuable strength in scarce
problem as insufficient business acumen on the team, but synthesis and consultation.
even high-potential researchers did not realize that their
Action:
level of business understanding fell short of executive
Motorola Mobile devices restructured its consumer insights
expectations.
department and specialising staff into dedicated roles:
Action: — insight Managers (10-15% of headcount): integrate
recognising that self-awareness best comes from existing data for insight across key strategic or tactical
experience, coca-cola created a development center to topics.
simulate strategic problem solving and dialogue with real core
— research Managers (approximately 50-60% of
senior executives. they architected the experience to headcount): Manage primary and secondary research
maximize the return on senior executive time and ensure and advanced analytics.
that researchers would get actionable feedback on their — consultants (35-40% of headcount): help business
business acumen. partners apply research and insights to develop better
decisions and strategies.
Result:
center participants, now committed to deepening their Note:
business understanding, have accelerated into important Motorola Mobility’s consumer insights team held an
positions within the company. one researcher, for example, all-day team workshop where individuals in different
was promoted to head of insights for Eurasia and africa roles collaborated to clarify responsibilities, create buy-in,
within one year. Equally important, senior executives and understand the value of all three groups’ contributions.
welcomed the training and volunteered their time.
Result:
Besides enjoying better role fit and task efficiency, the con-
sumer and market insights team maintained its high level
of impact even while reducing its resources significantly.
one company identified core business drivers that cut across these two strategies cannot solve all skill-related
categories and geographies (e.g., brand, channel, consumer), challenges. our ongoing work, for example, points to a need
turning a vague “synthesis” goal into a specific set of topics for further innovation in areas like synthesis techniques and
meriting a documented point of view. these documents communication tactics. But they represent material progress
established a knowledge baseline for all future research in transforming the market research function’s role and
efforts. another company placed its synthesized knowledge increasing its contribution to business success.
into a wiki-style intranet site, making it easier to syndicate and
keep up to date.
Even with these efforts, it is unlikely that an entire team of
technically skilled researchers will also become excellent at
consultation and synthesis. our aforementioned survey of
heads of market research shows that fewer than half believe
that their whole team has the aptitude to develop strong
consultative skills. yet 99% of them are looking for “bionic”
researchers: strong consultative skills and strong core research
skills. this approach seems sure to disappoint.
a number of MrEB members have built bionic teams
instead of bionic researchers. the approach is somewhat
controversial, because it requires breaking up the well
established client-service model wherein a single research
manager assumes end-to-end responsibility for meeting a Scott Christofferson is managing director and Beverly Chu is a research
analyst with the Market Research Executive Board.
business partner’s need.
laurence n. gold
What’s next
for xerox?
A
Using research to guide the Xerox brand mong all the business-to-business brands in the world,
Xerox stands out as one of a handful in the rarified
to the next generation space at the top. The company has developed its
brand so effectively over the last fifty years that it
has become a household name among consumers, even though
it does not offer consumer products.
The chief steward of the Xerox brand is Christa Carone, who
has been with the company for the last 15 years. She was
appointed vice president of the corporation in May 2008 and
has served as its chief marketing officer since September 2008.
In our interview, I asked Carone to tell me the story of the
Xerox brand and to describe the contribution of market research
to the branding process of B2B companies in general, and Xerox
in particular. It’s a tale you don’t hear very often.
Can you give us some examples of where market research Do you have a market research programme that monitors
is particularly effective for you in your marketing efforts and measures the results of your social media efforts?
and programmes? We do. Listening is one of the big, important first steps in any
I would say that the global brand equity tracking that we do is type of research component of social media. We put formal
very effective for us. It’s unaided research, so it gives us listening in place and we’re understanding conversations that
basically the temperature of how our particular target audience people are having about the brand and about our particular
is perceiving the brand and is perceiving Xerox’s influence in offerings. We have real-time listening feeds that we are
certain areas of the market, especially compared to our assessing literally on an hourly basis - if not even faster. That
competitors. It’s getting that barometer check on perception type of programme monitoring is a very important aspect of
of the Xerox brand, which is influenced by a number of how we play in the social media.
different elements, including earned media, paid media and
owned media, so that we can start to influence the brand’s
perception. Brand equity tracking is something that we pay a
lot of attention to and is an incredibly important aspect of our
market research.
robert heeg
D
SM has transformed itself over the decades from an Do your peers generally understand that?
outdated mining company into a modern global DSM is a corporation with diverse business groups. Some of
corporation in life and materials sciences, with annual them see market research as a very important tool and invest
net sales of around ¤9 billion. Its CMO, Mauricio quite a bit; others don’t regard it as a top priority. There is
Adade, tells us why this transition wouldn’t have been possible always room for improvement, and we have opportunities to
without market research. enhance market research in the various businesses. Some of
them are doing a very good job, in other places we can work
As an experienced marketer, how would you describe the in more sophisticated ways.
supporting role market research can play in your everyday We have set up a couple of programmes over the next few
business? years and one of them relates to the question of how to get
Market research can be a very important marketing tool in a good translation of the trends in the market, and the trends
helping to develop the right value proposition for innovation that our customers are seeing. The information is available, but
and differentiation. If you want to understand what is out we need to translate it into insights that support our business,
there and apply the right techniques for the various business and this is a big issue. The amount of data is enormous but
segments, you can get a tremendous amount of differentiation what can be done with this information and how can it
out of it while speeding up time to market and having the be made relevant for us? How do you bring business value to
right conversations with your customers. In business-to- your customers with the information you have?
business companies research normally stops at the customer,
but in my opinion it should go all the way to the customer of So you know too much, rather than not enough?
your customer, because only if you understand them can you Exactly. A major pillar of DSM relates to fostering and furthering
have the right conversation, speak the same language and external and customer orientation. We need to understand
add value. Moving further up the value chain can give you what is happening around us and not spend too much time
a tremendous advantage; it helps you to differentiate and be on endless internal debates, an issue common to many big
innovative from a service point of view. corporations. In relation to market research we need to:
enrico codogno
Competitive
Intelligence and
market research
Market research has often cold-shouldered competitive
intelligence – but could the two be complementary?
C
laims for the relative superiority for established technologies; new —— Purchasing
of market research or competitive markets; public opinion; the —— Corporate librarians
intelligence might be giving backgrounds of key decision-makers; —— Operations
way to a growing consensus, shifts in demographics; the abundance —— Investor relations
especially in North America, that the two or scarcity of raw materials or their —— Media relations
methodologies complement each other substitutes; and changing client demands. —— Information technology
by providing different capabilities to serve —— Market research reports
the interests of clients. This maturity among Internal and external sources —— Client database
research professionals may be improving One of most important attributes of a CI (business intelligence)
the standards of actionable intelligence department is that it can create an —— Strategic partners
provided to key decision-makers. internal and external network of —— Suppliers
Competitive Intelligence (CI) is not information sources to establish a body —— Distributors
industrial espionage. Nor is it simply of knowledge on the competitive —— Product/account managers
gathering newswires or surfing the internet. environment by collecting and analysing —— Senior executives
CI is the ethical gathering and analysis data from sources that sometimes do
of data dealing with the competitive not communicate with each other, even External sources of information include:
environment (including products, within the same company. —— Senior executive biographies
customers, competitors, new technologies, This contribution brings together —— Financial statements
legislation, demographics etc.). Analysis information from a diverse set of sources, —— Patents
is then used to transform this data into including market research reports and —— Visits to competitors’ locations
actionable intelligence to guide corporate analyses of client data bases, and can be (includes mystery shopping)
executives in their decision-making. used to develop a profound understanding —— Published market research reports
The competitive environment of the competitive environment. from third parties
consists not only of known competitors An audit of internal sources of —— Journalists/industry experts
and their activities (marketing and sales information can result in a wealth of —— Lobbyists
strategies, research and development, information and perspectives on the —— Advertisement/PR firms
patents, mergers and acquisitions, competitive environment. —— Competitors’ suppliers and distributors
strategic partnerships, and the hiring —— Competitors’ strategic partners
and firing of personnel), but all factors These sources include: —— Executive search firms
that impact a company or industry. —— Frontline personnel (sales and —— Competitors’ employees (eliciting
Among the factors that need to be customer service) information in casual conversations)
considered are: legislation; the —— Legal department —— Competitors’ literature
emergence of new technologies and —— Human resources department (job ads, brochures etc.)
new competitors; upgrades or new uses —— Finance —— Government agencies
Simon
JO chadwick
BOWMAN
Riding the
mexican wave
We talk to Oliver Macedo of Inmega Marketing Research
about being a young researcher in Mexico.
What attracted you to market research? plenty of opportunity for people here an intern and was really impressed. I also
I studied marketing because I envisioned who’ve lived through difficult circumstances think highly of Colgate-Palmolive. They
myself working as a company marketing and are now ready to seize this chance. know how to adapt to new markets and
manager or in an advertising agency. The challenge in market research is to changing consumer demands and manage
But as I learned about market research understand how consumers are changing to consistently lead the market. On a
as part of my course, I realised how because of this growth – their ideologies, personal level, I admire Sylvia Hernandez
important it is in informing marketers their lifestyles, their habits and the way Benitez, director of marketing at the
and agencies and equipping them to they communicate. food company Gruma, for her vision,
make the complex decisions they have We have a model to imitate in Brazil consumer knowledge and capacity to
to make. I decided then that this was as other Latam countries grow. For define strong, creative brand strategies.
what I wanted to do. market researchers, there’s interesting
work to be done examining how the What gives you the most satisfaction
How did you get your first job? Brazilian model changes, and how other in your work?
My first exposure to market research in markets differ as they grow. This kind of The consumers we’re dealing with now
the real world was a placement with insight will be a great tool for companies are so different from those we saw at
Analitica Marketing while I was studying. and brands. the beginning of my career, and
It was a huge challenge because what I’d A lot of companies still see Mexico as discovering their motivations and
learned at university was quite different a high-risk market, with high production understanding what they do is a huge
to the real world. I remember writing my costs, little security and a shaky legal and exciting challenge. I’m also becoming
first questionnaire as I’d been taught to system. This view is outdated. There are more like a consultant to clients, part
do, and being told by someone I respected lots of opportunities for market of their team, which is a new way of
that it was a disaster! I realised just researchers, and they’re not all with big working for me. In the research industry,
how much I had to learn. In the next four business. Small and medium-sized we need to make sure that new talent
years I moved through a lot of jobs, companies need to be able to make has opportunities. Younger research
gaining new experience at every step. confident decisions and, for that, they talent, combined with the experience
Eventually I got to the junior executive need good research. One of the of others, will refresh the business with
level, but it was a long road to get there. headaches, however, is that often new ideas.
I worked for a few years on Colgate- businesses see research as an expense,
Palmolive and this was a time of rather than as an investment. If these
incredible learning for me. There were companies are to become the big
new methodologies and ways of success stories of tomorrow they need
working. There was so much product to get past this.
testing going on, and this took a great
deal of planning and co-ordination. Which organisations or individuals do
you admire professionally?
What’s it like being in such a fast- I admire Wal-Mart’s organisational Oliver Macedo
growing market? culture and the speed with which they Is manager of analysis at Inmega Marketing
Research in Mexico
The fast growth in Latin America is creating adapt. I worked with them for a year as
manfred mareck
Data security
must improve
T
here are numerous recent examples of data security International, feels that research companies are more aware
breaches involving businesses and governments. In than they were, but also warns of weak points. “I see a
2008 the Berliner Landesbank, HSBC and Bank Mellon concentration of breach attempts towards companies with panels,
New York all lost personal data. The latter case involved especially the ones with monetary payments, as fraudsters are
the loss of information relating to 4.5 million customers when trying to increase their payments without actually taking the
an unencrypted backup tape disappeared whilst in the surveys.” At stake is not just respondent privacy, but the financial
possession of a third-party vendor. interests of research companies as well.
In 2007 personal data relating to every child in the UK, The risks have increased over the years. Laptops and other
together with the national insurance and bank account details portable devices can hold data on millions of individuals and
of their parents, went missing after a governmental department can easily be taken out of a secure office environment; computers
sent two CDs holding 25 million files through the post. The are ‘always on’ and connected to internal and external networks;
all-time record is held by the US retail chain TJX Companies cloud computing may change the way we work and the number
Inc.: In 2005 and 2006, 45.6 million credit and debit card of weak points where data breaches can happen may continue
numbers were stolen from its database. to multiply.
Data security is an important issue. The 2011 Global State Unlike de Jong, Adam Phillips, ESOMAR professional
of Information Security Survey by PricewaterhouseCoopers standards committee chair and ESOMAR legal committee chair
sampled 12,000 corporate managers and IT directors from 100 worries that research companies avoid facing up to potential
countries, and concludes that “information security hovers problems through a lack of awareness. “Companies are less
in the balance caught between understanding its importance aware than they should be, especially in Europe. In the USA,
and a reluctance to make the necessary investment in data a company that loses data has to inform everybody whose
security.” Previously established procedures are eroding: we privacy may have been compromised, not just the regulatory
see fewer personal background checks; reduced monitoring authorities.” More stringent notification rules may become law
of staff internet usage; less investment in security awareness in Europe too, and “once a breach has to be notified there is
training; and new initiatives that are often postponed or always the possibility of wider media coverage that can damage
diluted. Key factors driving information security - economic the reputation of a company or the research industry in general,”
conditions, business continuity, company reputation and he continues. Because securing data costs money, Phillips
regulatory compliance - are generally acknowledged, but fears that smaller companies in particular may cut corners.
their perceived importance is at a four-year low, often due
to funding pressures. Vital steps
John van Loenen, global information security director at Ipsos,
Market research companies lists a number of practices that are vital to protecting sensitive
The market research industry has yet to see any major publicised data, including:
security breaches. But is the industry really better prepared —— A data classification policy that clearly defines who has
than business in general? Kees de Jong, CEO of Survey Sampling access to what.
laurence n. gold
the future
of research
A
Research leaders demand change panel of leaders in the research industry at the March
and transformation ARF Annual Convention warned that the pace of
change in market research is not fast enough to help
marketers manage the complexities they see ahead.
“Business as usual is not an option,” said panel chair Stan
Sthanunathan, vice president of marketing strategy & insights
at Coca-Cola, referring to a recent management study, he said
“CEO’s have one thing on their minds, growth, and what keeps
them awake at nights is capitalising on complexity.”
With that, he turned to the role of research, defining it is as
providing provocation and inspiration, and noting that using
the past to predict the future will generate anemic growth,
given the fact that technological changes are occurring at an
accelerating pace. “Research can help companies shape change
by provoking transformation, listening for the unexpected,
seeking what we don’t know, moving on to focusing on ROI
and transformation, and achieving better execution and value
creation,” he said.
These lofty ideas served as the basis for a series of questions
posed to the panel by Sthanunathan. Their responses were
both intriguing and similar. Procter & Gamble’s global consumer
& market knowledge officer, Joan Lewis, who commands the
world’s largest research budget, which is in the $350 million
range, forecast a dramatic decline in survey research by 2020.
This, she predicted, would be replaced by social media
listening, though she noted that P&G itself will also continue
using surveys, with standards still needing to be maintained
for reliability. “The more people see two-way engagement and
being able to interact with people all over the world, I think
the less they want to be involved in structured research.”
Lewis went on to declare that the industry should move on
from believing any one method will be the solution to anything.
“We need to be methodology agnostic,” she said. Regarding
chris mclaren
The skills
of tomorrow
A
s part of ESOMAR’s Developing Talent initiative, industry should do to raise its profile in undergraduate and
Research World asked a number of prominent graduate programmes?
market researchers (and ESOMAR Summer Academy
workshop leaders) for their thoughts on how market, Andrew Vincent, managing director, Waves, UK: This is
opinion and social research work in the 21st century and the difficult – it’s really about budget and PR. I think employers need
nature of the skills required of, and career opportunities for, to specialise more and then seek talent as appropriate – there
those entering (or thinking of entering) the industry. is no standard discipline for market research. We now have
agencies based solely on internet questioning techniques (that
What do you see as the biggest recruiting challenge for the never happened with phone research, for example). Their needs
market research industry today? differ from consultancy-based businesses or qual specialists.
Sharon Dimoldenberg, divisional director, GfK, UK: Making Judy Langer, President, Langer Qualitative, USA: ‘Research’
market research recognised as a highly desirable long-term is often thought of as boring, but for people who love information
career with great prospects and good salary levels. and understanding human nature it’s not. Market research is
also a far more diverse field than most people realise. Typically,
Orlando Wood, managing director, BrainJuicer Labs, UK: it’s thought of as quantitative only, something for people who
The biggest challenge we face is shifting the industry’s image love numbers. The qualitative side, which tends to be less well
from that of ‘insurer’ to ‘detective.’ It needs to be seen as sexy, known, is more likely to attract those who enjoy understanding
inspirational and aspirational. What could be more exciting than what makes people tick. It’s important to communicate the range.
taking the latest insights from psychology and the behavioural
sciences and translating them into techniques that better Orlando: It’s not enough to make people aware of the industry.
understand and predict human behaviour? Or harnessing new We need to make it famous. We need to draw the young, bright
technologies to close the feedback loop between brands, and technologically savvy to the industry, and to be seen no
retailers and their customers? more as the dull and quiet sibling of marketing and advertising.
We need to lay on events and experiences, festivals even, where
Sangeeta Gupta, director consumer insights, PepsiCo, India: we demonstrate what research is when it’s at its best. We need
Job opportunities in the APAC region (to speak to my area of to engage curiosity and capitalise on geek chic. The industry
expertise) are immense. The biggest challenge for us is actually needs heroes, characters who will stand up and speak for it,
retaining bright talent. We have lost a number of bright get people talking and themselves become famous. There is
researchers to other disciplines (mostly brand management no excuse not to market ourselves better.
and marketing).
The industry has changed rapidly in the last five years with
Often students are not aware of the various career options the introduction of new technologies and methodologies.
market research can provide. What do you think the It is said that today’s market researcher must have a wider
manfred
Simon chadwick
mareck
A
t the time of writing this spend online, which on average has more money invested by advertisers, even
column, Twitter is celebrating reached the equivalent of one day a few tentative steps in the direction of
its fifth birthday – and how, a month. paid rather than free content.
boy, has this baby grown – The British and Dutch are way ahead Not everyone agrees. In his recent
from Jack Dorsey’s first tweet on March with around 31 hours, the laggards are book The Master Switch, Tim Wu,
21st, 2006, to the one billion tweets sent the Austrians (13 hours) and Swiss an advisor to President Obama, voices
weekly in 2011. (18 hours), two markets where social grave concerns for the future of the
Some tweeters are famous for having networking sites have well below average internet. He highlights the danger
the most followers (currently Lady Gaga reach (75%) – but then the Austrians of political censorship, as shown by the
with nine million according to tweetaholic. probably still do their networking in the control of the web in countries facing civil
com), others are revered as highly local Kaffeehaus or at a Heuriger winebar. protest or by the American reaction to
influential. “All roads now lead to Andy In all, social networking accounted for WikiLeaks. He also fears that the internet
Carvin,” declared media critic and 23% of all page views in Europe, and will enter a phase of concentration and
commentator Jeff Jarvis recently. approximately four out of every ten the emergence of monopolies, just as
Some (mainly institutional) tweeters internet sessions included a visit to a occurred in the case of cinema,
are busy posting thousands of updates, social networking site. television and print in the last century.
but that doesn’t guarantee popularity. Mobile online usage is the other Wu is particularly concerned about
A German company listing service, growth area of the internet. At the end dominant players like Amazon, Google,
firmenanzeige.de, posted over 800,000 of 2010, one in three mobile phone users Apple or Facebook teaming up with
tweets over 23 months and attracted a in Europe had a smartphone, compared major telecom and mobile networks,
mere 43 followers. with almost 50% in the USA. The thus dramatically reducing consumer
availability and pricing of unlimited data choice and increasing industry control.
Two drivers: social networking plans and high 3G adoption rate in the Far-fetched? Just remember the
and mobile media US are often cited as the main reasons introduction of the Apple iPhone, initially
ComScore has just published its 2010 for this difference. On the other hand, only available via selected operators
reviews, one covering the European by November 2010, smartphones for the such as AT&T in the US or O2 in the UK,
digital world, the other focusing on first time made up the majority of newly or the launch of Murdoch’s iPad-based
mobile trends. acquired devices in Europe. Social ‘newspaper’ The Daily in exclusive
The biggest online markets are networking again is one of the fastest partnership with Apple. We may well be
Germany, Russia, France and the UK, all growing mobile categories both in moving away from the internet as a
with forty to fifty million unique users a Europe and the US, driven largely by the forum for free speech and a place where
month. Sharing information via social ubiquitous Facebook, followed by individuals can compete with established
networking sites has been the fastest YouTube and Twitter. news providers.
growing online activity over the past 12
months. Such sites now reach 84% of Clouds on the horizon
European internet users (beaten only by So all is well in the world of online and
search and navigation with 91%). And it mobile media? Manfred Mareck
seems that the incessant urge for sharing Growth wherever you look, more users, (editservice@btinternet.com) is an independent
media and marketing consultant.
also determines the time Europeans more time spent online, more sharing,
roger heinemann
seven ways to
make a bad
commercial
How to make a bad advertisement – and what you can do about it
H
ow many times have you been However, setting that course is your consumer is essential to this process
watching television with friends responsibility. Neglecting to do so leaves and, while it may seem an obvious
or family and, after a commercial the stewardship of your brand in the statement to make, it becomes easy to
appears, someone turns to you hands of people less familiar with it and lose sight of the consumer when faced
and asks “What was the point of that who have less at stake in the vitality of with daily issues that constantly demand
commercial?”, “Are they serious?” or your business. immediate attention. Entrusting customer
even “Why is advertising so bad?” insights managers and their outside
2.
The truth is that, despite the fact that Don’t provide clear direction: The research partners to regularly provide
many advertisements we see today are Association of National Advertisers in-depth perspectives on your brand
brilliantly creative and effective in shaping estimates that poorly written briefs ensures that your brand messaging
our perceptions and attitudes toward the cost companies 30% of the efficiency of strategy will remain vital and relevant to
brands they represent, it is much easier their advertising budgets. You must the target groups with whom you want
to make a bad piece of advertising than articulate the brand’s communication to connect.
a good one. strategy in clear, unambiguous language.
4.
There are probably hundreds of ways By providing a brief document to the Don’t verify: Setting the strategy
to make a bad commercial, but here are partners on your team, you provide is only half the battle. How
seven simple ones and what you can do clear specifications for what the consumers perceive advertising
about them. communication objectives for your and the nature of the impressions it leaves
brand should be and the direction to behind should not be taken for granted
1.
Don’t take ownership of your brand: help guide the creative product. or left to instincts. Advertising is like any
Brands are assets that you own, not Once your communication strategy other form of communication: we may
your agency, not your marketing is in place, it should become a living have a very clear idea of what we intend
consultants or other partners. These team document. Each creative review should to convey, but how that communication
members are your consultants, advisors begin with a review of your communication is received may not be exactly what
and creative geniuses, essential to the objectives. This reinforces the importance we intended. Nor can it be assumed,
process, but the brand is on your balance of these objectives with everyone involved. in an increasingly complex advertising
sheet, not theirs. And it establishes a touchstone against environment, that the message is
You must take the leadership position which the concepts can be evaluated. even breaking through or leaving a
in the development of your brand lasting impression.
3.
messaging. Your agency, consultant and Don’t involve your consumers: Furthermore, experienced practitioners
other partners and managers can provide Effective messaging resonates of advertising testing can be valuable
sound advice and unique insights to help with consumers when they additional partners of your team. Often
steer your brand’s strategic direction. identify with it. Knowledge of your their experience and independence
5.
Don’t choose the copy testing tool There is often a momentum created in opportunity to contribute to the process,
that best fits your needs: Copy focus groups which can lead discussions developing a sense of ownership.
testing today is a sophisticated in a particular direction that may provide The cycle of challenges and success
industry offering a wide variety of testing thought-provoking interaction, but which in creating outstanding advertising and
options that can provide a diverse range may not accurately depict opinions building a brand in the process can
of insights into how consumers respond actually held by the public at large. become inspirational.
to your advertising.
7.
Despite this wide diversity of Don’t inspire your agency: Creating
capabilities, many companies rely on a advertising that attracts audiences
single testing approach for evaluating all and extends the connections users
copy. To some extent this practice is an have with a brand is a difficult challenge.
anachronism dating back to a time when Converting communication objectives
there were fewer copy testing methods from a piece of paper into inspired
and fewer measurement options available. content is daunting. For these reasons
But it is also true that in many instances alone, agencies are a tremendous resource.
testing alternatives are not reviewed Moreover, the outside perspective
with each new piece of creative content agencies bring to your business, and the
(there are various reasons for this.) wide-ranging expertise they have in
communications, enables them to spot
6.
Rely solely on qualitative research: opportunities that even the most energetic
Focus groups and other qualitative and dedicated corporate managers
research techniques are terrific won’t see. They can and should be full
instruments to have in your research partners in the development of your
arsenal. However, as with any other type brand by providing strategic advice and
of research (and perhaps more so than counsel as your communications Roger Heinemann
Is a partner at Gallup & Robinson
with most other techniques), focus groups objectives are developed.
Earl L. Taylor
Increasing sales by
targeting promotions
to “draw” categories
C
ategory management and, more approach, the multi-stage targeting draw category in each super-category.
recently, shopper marketing increases shopping basket size by an As expected, targeted coupons were
have emerged as marketing average of 10% for both sales and SKUs. redeemed more frequently than non-
disciplines to help manufacturers targeted coupons, with those for the
and retailers understand and influence Super-categories best-selling category redeemed most
consumer purchase decisions. To develop their model, the authors first often. Coupons did not stimulate
The increasing availability of granular create super-categories of categories purchase of categories that consumers
data on consumer purchase behavior that tend to be purchased together. were not used to buying. Importantly,
from sources such as checkout scanners, Consumers are then assigned to the however, customers who redeemed a
loyalty cards, and now mobile devices super-category which most nearly coupon for a “draw” category increased
presents both an opportunity and a resembles their history of purchases. their basket size sufficiently to yield an
challenge. Intuitively, not all consumers Next, a multivariate logistic model is estimated ROI of 145%. Applying this
or purchase occasions are alike, and created for each customer segment and approach across all customers would
certain categories of products naturally its associated categories, taking into yield an estimated 1.3% increase in
“go together” for specific shoppers on account marketing mix variables and profitability (a considerable amount for
specific missions. Hence the perhaps controlling for cross-category low-margin grocery retailers).
apocryphal finding that beer and dependencies. Finally, the authors use The authors conclude that segmenting
diapers are purchased together by men these models to determine the specific customers based on super-categories
at convenience stores, simultaneously category that, when promoted, will yield derived from past purchase behavior
resolving two unrelated crises. the greatest increase in categories and targeting promotions to “draw”
How can retailers take advantage of purchased in the super-category. categories (rather than just best-sellers)
such interdependencies? Specifically, To test whether the effectiveness of can more than pay for itself. They
how can promotions best be targeted to this multistage method of deriving a speculate that this approach should also
grow categories and basket size while “draw” category for targeted promotion work well for other areas where consumers
avoiding “free riders” who would is worth the extra effort, the authors make regular purchase decisions from a
purchase a given product or category compare their results to the outcomes large assortment of low-involvement
without the promotion? of a simpler method using only the first categories (eg drug stores).
To analyse such cross-category two steps. Managers using the latter
effects and maximise the impact of approach would be directed to promote ˇ and
From: Els Breugelmans, Yasemin Boztug,
Thomas Reutterer, “A Multistep Approach to Derive
targeted promotions, Els Breugelmans the best-selling category in each
Targeted Category Promotions.” MSI Report No.
(Lessius University), Yasemin Boztug ˇ super-category - not a surprising or 10-118.
(Georg-August-Universität, Göttingen), particularly helpful suggestion! As the
and Thomas Reutterer (Vienna field experiments confirm, however, the
University of Economics and Business) draw category is not necessarily the
propose a multi-step model for deriving best-selling one in a given super-category. Earl L. Taylor
category promotions that match Specifically, the authors analysed Is chief marketing officer at the Marketing Science
Institute. You can contact him at etaylor@msi.org.
customers’ purchase histories. Field four years of purchase data from a
experiments demonstrate that the European grocer’s home delivery service
resulting targeted promotions yield and conducted a series of controlled
higher rates of coupon redemption than field tests to determine the impact of
non-targeted promotions. In addition, non-targeted versus targeted coupons
compared to a control group and and, for the latter, the difference
customers targeted by a simpler between targeting the best-selling vs.
Helsinki, Finland / 7 April 2011 1 and 2. New York, USA / 23 February 2011
ESOMAR and SMTS (Finnish Market Research Association) held a joint 3. London, UK / 23 March 2011
event at the Hilton Helsinki Strand Hotel on April 7th. This event attracted 4. Prague, Czech Republic / 23–25 March 2011
140 people and included local speakers from the key agencies in Finland 5. Nairobi, Kenya / 25 March 2011
plus guest speaker Niels Schillewaert, ESOMAR Council member. 6. Helsinki, Finland / 7 April 2011
one-day seminar
neuroscience –
CONGRESS
theory and application
amsterdam / 8 june
business and society through the insights it generates. esomar autumn academy 2011
learning and skills programme
In these challenging times, research needs to display miami / 25 – 26 october
renewed dynamism and be reloaded with pioneering an esomar world research CONFERENCE
concepts.
3D Digital Dimensions
(online + social media + mobile) research
miami / 26 – 28 october
November 2011
an esomar world research CONFERENCE
Register before 24 June for earlybird discounts
qualitative
embrace, inspire and celebrate
vienna / 13 – 15 november
workshops
Workshops are interactive learning sessions for small
groups and run alongside ESOMAR conferences.
Space is limited; register early to secure your place.
webinars
ESOMAR regularly hosts webinars from leading
global researchers to connect you to the latest
innovations and information in the market research
industry. For information on upcoming webinars stay
tuned by visiting www.esomar.org/webinars