Adapted from J. Scott Armstrong for use in lectures related to Persuasive Advertising.

File: Target-market Research-R10 Lectures for AdPrin/Testing Ads

Sept 2014

Target-Market Research

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Learning Diary

The lectures follow an experiential learning experience. To make this work properly:1. Obtain a learning diary (paper). A 10 x 13 bound

diary is suggested.2. Keep it up to date.3. Take the learning diary with you to all class sessions.4. For self-learners, use the diary to track your learning

progress for all of your learning activities.

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Objectives of this session

To understand and apply these principles and techniques (not to convince you). Ask for clarification as needed.

Set a goal for yourself on how many principles and techniques you plan to use by the end of this session. Even a goal of one will help you. Put this in your learning diary now.

Note: We will discuss only some of the slides. When you go through the lecture on your own, view it in “Slide Show” and follow the experiential procedures.

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Procedure

Focus on understanding.

Record questions in your learning diary that will help you to apply the techniques or principles, then, after you decide which ones you want to apply, try to answer these from the readings. If not clear, ask others for help.

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When is it useful to do target-market research?

Describe when you should use target market research. Spend 4 minutes to write your ideas in your learning diary.

If working in a group, share your ideas with a partner.

Then, go to the next slide.

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When to do target-market research?

Three conditions are necessary if target-market research is to be of any value:

1. Management is uncertain about what to do. (Ask them.)

2. Management is willing to consider possible alternative approaches. (Ask if they are willing to experiment.)

3. Management specifies in writing what information will change their decisions prior to doing the research. (It may help to provide them with possible outcomes in order to assess their decisions.)

For evidence on this procedure see this paper.

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Target-Market Research

What advertising decisions will be affected? Write your prediction in your learning diary.

– Persuasive message for each target market?

– What media to reach each target market?

Possible things to learn:

– Which different target markets (TM) are promising?

– How large is each TM?

– Who is in each TM?

– What does the TM need to know?

– When do they need to know?

– Where will they expect to find out? Adprin.com

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What is already known about the TM?

Review the advertisers’ current knowledge based on:

• Experts (within the organization; media)

• Published materials

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Possible relevant information about the TM

1. Purchasing power (income/wealth)?2. Final consumer or buying agent (e.g., business vs.

gift)?3. Cognitive skills? (e.g., reading level)4. Age? (e.g., visual or audio problems)5. Current consumer? (or new to brand)6. Expertise on the product category?7. Prior beliefs in agreement with the offering?8. Rational or emotional thinkers?

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Sources of target-market information

NDI* Surveys Delphi

Experts in market x x

Potential customers x x

* Nondirective interviews

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Gaining commitment for TM research

1. Think small. Use “pilot studies” for learning and for gaining commitment from the client.

2. Use sequential sampling to allow for revisions and client involvement. Do not surprise the client.

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Designing target-market surveys

1. Consider prior research, expert surveys. and consumer surveys to learn about target markets.

2. Start with non-directive interviews with a handful of potential customers.

3. Pre-test the questions.4. Determine an optimal sample size.

- But start with a very small sample.- Increase as the client desires.

5. Become familiar with Don Dillman’s book on survey research.

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Estimate uncertainty

Estimate total error (and reduce error):

1. Sampling (representative and large)

2. Non-response (increase the response rate and estimate nonresponse bias)

3. Response (use alternative wording and pretest questions)

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Reporting on your research

1. Bring in research as needed to support recommendations.

2. Use statistics to communicate information (See The Visual Display of Quantitative Information by E. Tufte).

3. Do not use statistical significance. Use confidence intervals instead.

4. Report on shortcomings of your research.

5. Provide full disclosure on data and methods.

See checklist for oral and written reports.

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Applications

Write at least 2 ways to apply something from this “lecture.” Spend at least 5 minutes on this.

If working in a group setting, exchange your applications with a learning partner to provide useful suggestions to him/her and to see if there are useful, new ideas for you.

Ideas for Applications of Techniques for Target Market Research

If you are in a class, test your advertisements for the “house ad” by using the techniques discussed in this lecture.

If you are a self-learner apply the testing techniques to advertisements in you organization, or to a cause that is of interest to you.

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Techniques

In your diary, describe the techniques that you were able to use for your target market research and rate your success (e.g., creativity, objective setting)

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Advice on learning techniques

One study found that fewer than 10% of students were successful in applying new knowledge.• This went to 20% if they actively applied what they

were taught during a class session.• It went to 90% when they worked with a learning

partner and coached each other.

Select techniques to apply

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