With just 20 per cent of buying decisions based on pure logic, the psychology of marketing, i.e. the role the mind plays in buying decisions, requires understanding. Psychology is the science of the mind and also behaviour. So whether we realise it or not, emotions and biases frequently influence our buying decisions. According to research, this is the case in around eight out of 10 buying decisions (1).

This ‘Psychology of Marketing’ infographic (2) summarises common biases that influence consumers’ purchasing decisions. These include the status quo bias, the loss aversion bias, and also the in-group bias. By understanding these biases you’ll be better able to devise plans to mitigate them.

Sam Bowman’s article on the Psychology of Persuasion in Marketing Profs is also worth a read.

Marketing Inspiration

1. A brand name, special offer, and also immediate gratification all enhance sales. Thus understand the psychology of marketing. Take account of cognitive biases to boost sales.

2. Use consumer research to uncover exactly what emotional dimensions will best influence and persuade.

3. The most successful brands comprise rational and emotional dimensions – so build both into your brand positioning.

References

(1) Damasio, Anthony Descartes’ Error:Emotion, Reason, and the Human Brain (2005)
(2) Infographic courtesy Salesforce.com

Read more about dealing with bias in this article on quantitative research.

Comparing Online vs. Telephone vs. Face-to-face Quantitative Research Survey Methods;  Which is top dog?

Recent OFCOM Research (1) highlighted that 71% of the UK receive 9 nuisance calls a month. Also that telephone is the #4 culprit. This questions whether this quantitative research survey mode has had its day? But while online has grown in share, is this top dog? We’ve looked closely at the merits of online, telephone (random direct dialing) and face-to-face (ftf).  Several insights emerged. So if you are about to brief in a quantitative research survey, this article summarises our findings. It also spotlights ideas to help you make the most of your research investment.

Cost of research

Costs vary by sample size, ease of reaching an audience or ‘incidence’, the length of survey, mode, and also complexity of fieldwork and analysis. Some costs such as coding for online research, computer aided telephone interviewing (CATI) and computer assisted personal interviewing (CAPI) are similar. Compared with online (index =100) fieldwork costs are typically higher for face-to-face (index 250-300) than telephone (index 250-300) due to the greater human time involved.

Coverage or reach

Online presently reaches 87% of the UK (1) though many online surveys run via panels which cover just 5% of the population. Thus sample carefully to cover geographic gaps and bear in mind that respondents are also usually more ‘Internet experienced’. Conversely, nearly all homes have access to at least one phone though telephone databases cover just 60% UK (and we suspect even fewer are opted-in to research). Within this fixed line telephone reaches 79% (with greater penetration among older respondents) and mobiles reach 96% (with greater penetration of younger respondents) (1).  Face-to-face also reaches most places (though at a cost).

Response rates

Online response depends on the nature of the panel, and how responsive and interested respondents are; expect between 5-30%. Conversely, response from links on websites or emails depend on the nature of the source. Telephone responses have also fallen over the last decade and responses are now around 10-15%. Face-to-face response, by contrast, is around 15-20%.

Avidy bias (Sample bias)

The self-selection nature of online means there is a greater risk of respondents opting-in to surveys that interest them. This is called avidy bias. Typically online respondents are younger, more familiar with the online world and spend more time on it. They are also more informed, more opinionated and more politically activist. (2) Panels also contain more early technology adopters though it remains possible to discern other types on the diffusion of innovation spectrum.

Social desirability bias

Research (3, 4) observes that those responding by telephone present more socially desirable responses more often than face-to-face (FTF). This is particularly the case with those with lower intellectual ability/fewer years of formal education (i.e. C2DEs).  Research also shows that respondents are more comfortable discussing sensitive subjects face-to-face as they can see. This they have greater trust in the interviewer. Conversely, FTF interviews conducted in the respondent’s home eliminate anonymity, making socially desirable responses more pronounced. Overall however, interpersonal trust between the interviewer and the respondent has a greater influence resulting in more honest responses. FTF also shows similar results to online (where there is no interviewer effect). However some research (5) has observed higher valuation responses to some ‘willingness to pay’ questions. For example, when there is a perceived ‘civic virtue’ in being seen to contribute to a common good.

Satisficing

Satisficing (combining the words satisfy and sacrifice) involves short-cutting the response process, settling on a solution that is ‘good enough’ but could be ‘optimised’.

Telephone poses an increased cognitive burden. The increased difficulty to fully comprehend questions, reduces the effort to cooperate, search the memory and process information. Perceived time pressure also fatigues and demotivates. As a result, questions are less considered, giving rise to higher acquiescence (answering affirmatively regardless of the question), having no opinions, choosing mid-points or only extremes in rating scales, easier to defend answers and reduced disclosure. Again this is more evident with those with lower intellectual ability.  Further research (3, 4, 5) suggests FTF researchers are better able to judge confusion, waning motivation, distraction (via watching a tv, eating etc.), Thus also be better able motivate and make it easier for the respondent to understand questions and improve cooperation on complex tasks. Conversely, with online, respondents go at their own pace.

Marketing Inspiration

(1) Great research starts with a great market research brief. Decide your target and what’s most important. Beyond feasibility and answers to questions, what’s the relative importance of cost, speed, precision etc.

(2) There are many pitfalls in conducting quantitative research. Even more if you would like to repeat a survey or set up a tracker.  So use larger samples to give greater reliability; a sample in excess of 1000 will give more reliability than a sample of 500. This means that repeating a survey 100 times means that in 95 instances, responses (confidence interval) will be within +/- 1%. Also make sure data is comparable from wave to wave, and design shorter surveys to cut the risk of satisficing.

(3) Take care to make sure samples are not biased and give reliable findings. Nationally representative samples are essential to measure awareness, usage and market share. Also make sure your sample eliminates any demographic, subject affinity, usage or other bias.

(4) Buyer beware. Remember the Whiskas advert that famously told us that ‘8 out of 10 cats prefer Whiskas’. This was eventually changed to ‘8 out of 10 owners that expressed a preference said their cats preferred Whiskas’. However, what we still don’t know is the sample size, how many said ‘don’t know’, and how many expressed a preference. So whatever the survey mode, be clear what is statistically significant or merely directional, and make the context clear. This will help you avoid being duped and make better decisions! Meoww, yum!

References

(1) OFCOM (2019).

(2) Duffy Bobby, Smith Kate, Terhanian George, Bremer John. Comparing Data from Online and Face-to-face Surveys. International Journal of Market Research Vol 47 Issue 6. (2005)

(3) Holbrook Allyson L, Green Melanie C, Krosnick Jon A. Telephone versus Face-to-face interviewing of National Probability Samples with Long Questionnaires. Public Opinion Quarterly, Volume 67:79–125 (2003).

(4) Szolnoki G, Hoffman D. Online, face-to-face and telephone surveys – Comparing different sampling methods in wine consumer research. Wine Economics and Policy 2 (2013) 57-66.

(5) Lindhjema Henrik, Navrudb Ståle. Are Internet surveys an alternative to face-to-face interviews in contingent valuation? Ecological Economics 70(9): 1628-1637 (2011).

The Marketing Directors and The Market Researchers have no vested interest in promoting one quantitative research survey mode over another. Thus, we work in partnership with the world’s leading online, telephone and face-to-face fieldwork companies to deliver the best solution for you.  Read about all of our market research services.

What is the labelling effect?

The labelling effect, recently discovered by behavioural economists, gives marketers another weapon in their arsenal of influencing techniques. This short piece introduces the labelling effect and also explains how marketers can use this technique to influence customers’ choice of products.

Even small labelled promotions (vouchers to spend on certain items) shift spending patterns disproportionately. Tesco, Sainsbury’s and even the Government have used the labelling effect to alter behaviour.

Small promotions do not force customers to change their spending patterns because they can easily rearrange their budget. However, small promotions do affect which items are purchased. Thus marketers can target small promotions at highly profitable items to encourage customers to spend more on those items.

A promotion is ‘non-distortionary’ if the customer would have spent more than the value of the promotion on the targeted product anyway. The labelling effect occurs when consumers react to these promotions by spending more on the targeted item. Here are three examples:

Example 1: Retail

A recent study gave customers at a restaurant an €8 voucher (1). Vouchers could be spent on beverages (the ‘labelled’ voucher) or food or beverages (the ‘unlabelled’ voucher). As customers usually spend at least €8 on beverages the gift is non-distortionary: customers could rearrange their money to spend the same amount of money. However, customers who received the labelled voucher actually spent on average €3.90 more on beverages than those with the unlabelled voucher.

Interestingly, the most common behaviour was to spend the voucher on the targeted good. Additionally, those with lower non-verbal cognitive ability were more likely to respond to the label. Non-verbal cognitive ability involves problem solving skills and mathematical ability as opposed to language skills.

Example 2: FMCG

Supermarkets are also starting to use labelled vouchers to nudge customers towards more profitable goods.

Here Tesco is offering a 20p discount on top range lettuces. Clearly, the label means that customers are more likely to buy one more top range lettuce than if the voucher could be used on any item.

Here Sainsbury’s is using a small promotion to nudge consumers towards bakery items. The labelling effect means that this 40p discount will disproportionately increase spending on bakery items.

Example 3: Government payments

The Government also uses the labelling effect on benefits such as the ‘Winter Fuel Payment’ (WFP). Currently, pensioners spend on average 41% of the WFP on fuel. However, if named ‘The Annual Allowance’ they would only spend 3% of it on fuel (2).

What causes the labelling effect?

There are three potential causes of the labelling effect: narrow bracketing, mental accounting and reciprocity.

Narrow bracketing  

This is the process whereby people split one decision into separate parts and then consider each part in turn (3). For example, people may decide to spend their budget on food, beverages or both.  If their usual budget decision were totally unaffected by say an 8 Euro voucher then, then all would be spent on the targeted good.

There are four possible causes of narrow bracketing. Firstly, customer’s cognitive limitations. Secondly, cognitive inertia (it simplifies decisions). Thirdly, by applying previous value judgements or ‘rules of thumb’ to spending behaviour, such as ‘always spending at least £10 on a bottle of wine’. This could cause customers to see the wine cost as separate to the rest of the cost of the meal. Fourthly, through deliberate or conscious action to control or check expenditure, perhaps as a New Year health or budget resolution.

Mental accounting

This is a form of narrow bracketing whereby people divide their expenditure, wealth and income into different ‘mental accounts’ (4). These mental accounts represent narrow brackets. For example, a restaurant patron may have two separate dining budgets in his or her mind; a food budget and also a beverage budget. The unlabelled voucher could therefore be split between either account, while the labelled voucher may only be added to the beverage budget. Once allocated to an account, money is not easily shifted as the label given to the gift affects spending.

Furthermore, the tighter the customer’s budget, the more strictly mental accounts are enforced.  So the labelling effect has greater impact on the less wealthy.

Feelings of reciprocity

These may cause customers to respond in a way they think is helpful to the gift-giver. Customers may see a promotion as a gift and reciprocate by spending more of the gift on the targeted good. Reciprocity does not cause the labelling effect on vouchers, but it may do for Government payments.

Is the labelling effect transparent?

In the context of retail vouchers, most people are aware of the labelling effect per se but fewer are aware of its real impact (5). Awareness of the labelling effect is driven by non-verbal cognitive ability and age. The use of labels is less obvious to younger people with lower cognitive ability. Conversely, those more likely to respond are less likely to know about it.

Marketing Inspiration

1. Labels change behaviour so target promotions such as vouchers to increase spend on more profitable goods. Do not assume your customers will rearrange their money, even with small promotions. So if your customer spends £10 on books and £10 on (more profitable) DVDs, a £5 gift can significantly change  spending balance. Evidence suggests labelling the voucher for DVDs would cause customers to spend £2.50 more on DVDs than they would with an unlabelled voucher.

2. Nudge your customers into narrow bracketing by creating new product divisions in categories and markets. If some DVDs are more profitable than others, then divide them into groups by age or genre.

3. Use the labelling effect to make the most of loyalty scheme promotions. Perhaps by making reward points worth more on certain products, or by allocating reward points to different ‘accounts’ to spend on different products.

4. Use behavioural economics to uncover new insights and optimise your promotions. Small promotions and labelling or small changes in copy can change spending patterns. Schedule research, such as quali-quant tests or hall tests to understand the causes and effects.

References

(1) Abeler, J. & F. Marklein (2013), ‘Fungibility, Labels, and Consumption’, Working Paper. First published May 2008 as IZA Discussion Paper No. 3500.
(2) Beatty, T., Blow, L., Crossley, T. & C. O’Dea (2011), ‘Cash by any other name? Evidence on labelling from the UK Winter Fuel Payment’, Institute for Fiscal Studies Discussion Paper.
(3) Read, D., Loewenstein, G. & M. Rabin, (1999) ‘Choice Bracketing’, Journal of Risk and Uncertainty, 19(1–3), p.171–97.
(4) Thaler, R. H. (1999), ‘Mental accounting matters’, Journal of Behavioral Decision Making, 12, p.183-206.
(5) Hogg, T. (2013) ‘Fungibility: Are People Aware of Non-Fungibility?’, MSc Dissertation at The University of Nottingham. Available on request.

The advent of digital media has inspired many new forms of customer research which businesses are embracing with a passion.  We have also witnessed marketers foregoing more traditional research approaches, primarily to save money and time. However, there are lots of myths and misconceptions regarding digital methods. As one mobile phone marketer commented “let’s say we don’t wholly buy into the claims being made about online”. So what are the facts and considerations when choosing between traditional vs digital research methods? New doesn’t necessarily mean better …. or does it?

Traditional research methods

More traditional research forms involve either face-to-face contact or verbal conversations in real-time such as;

• Qualitative focus groups or group discussions; enable topic discussion, exploration and idea generation, building and challenging. For example, recruiting respondents with differing views to ‘conflict groups’ in order to challenge beliefs and also understand and uncover ways to overcome possible prejudices.
• Depth interviews – face-to-face or telephone; enable in-depth understanding of people, who they are, their attitudes, beliefs and also motivations. Also suited to more confidential and sensitive topics e.g. healthcare, business-to-business.
• Accompanied shops – in a real-life shopping environment to understand real-life shopping motivations and behaviour.
• Ethnography – observing people in specific settings or environments. For example, a professional in their work place; useful to see true context, influences and behaviour, that may be unconscious and not reported.
• Intercepts – stopping people in the street or other ‘out of home locations’; useful for gaining high-level/fast insights, to understand motivations and quantify preferences, such as, assessing reaction to products or brands in ‘out-of-home’ eating experiences.

Traditional research pros and cons

Traditional face-to-face or telephone approaches enable the moderator to go with the natural flow of the discussion, and thus better understand what’s important to interviewees. Also to flex the discussion, intervene, probe or challenge at any time.

In addition, findings or interpretations are based on respondent comments and non-verbal indicators such as facial expressions, body language, behaviour and voice intonation. Albert H. Mehrabian found that body language accounts for 55%, tone of voice (38%) while words only just 7% of received communication (1). This non-verbal communication therefore provides extra richness and texture to information and gives deeper insight. What is not said is often as revealing as what is said.

However traditional research approaches take up more time and cost. Sometimes they also need more time to set up. For example recruiting a very specific sample, such as frequent rail and air travellers with experience of mobile applications could easily take a couple of weeks.

New digital research methods

The massive growth in general internet and social media, enables marketers and researchers to communicate with their consumers digitally, and also better understand the changing digital world.  New digital functionality such as wikis, video filming and uploading and messaging also provides researchers with a new means of customer communication, and new means of capturing information. This therefore helps researchers and customers work together and co-create ideas.

New digital technology allows new digital research encounters

• Skype, Microsoft Teams, Whats App, Facetime, Google Meet and now Zoom – provide new remote video interviewing possibilities. Thus allowing the moderator to hear and see the interviewee, while ‘social distancing’.
• Wearables – like Google glasses provide real-time or recorded/edited insights through the eyes of consumers.

New online research methods

• Online surveys – respondents are posed a series of questions online. Typically having followed or been emailed a link. These are now well established in high internet penetration Western markets. This therefore enables rapid, cost-effective, multi-country research.
• Online focus groups – real-time online discussions over a set period e.g. 2 hours (so-called synchronous research); useful to reach remote/difficult to find respondents.
• Online communities – respondents join a community and are set topics to discuss and questions to answer, interacting with each other and the moderator.  Useful for gauging reactions to communications and products, building ideas, and also ‘pressure testing’ plans.
• Bulletin boards – password protected forum, accessed via a browser, where respondents login at any time and respond to moderator led discussion. These usually last 3 to 6 days (so-called asynchronous research);  useful for product placement, assessing first and later impressions/experiences. Also engaging the digitally savvy and exploring the digital world, and developing ideas.
• Insight platforms – there are a growing range of multi-function platforms; at our last count, over 700. Some include focus group hosting with inbuilt transcription functions, plus software to ask questions, and upload and assess images, video and other files. With several websites dedicated to listing such software provides a glimpse into the burgeoning nature of the industry.
• AI – there are a growing range of tools that help researchers to devise questions, summarise information and use Internet know-how to postulate lists of needs, and potential customer segments. However, AI also does not have innate contextual knowledge like researchers do and is unable to design research that is fair, objective and empowering. Further, the nature of the underlying data limits the revelation of quantitative substance and ‘new’ insights.

New social media functions

• Social media sites e.g. Facebook, Twitter, LinkedIn, Instagram – useful for online and offline recruitment, dipstick research. Also to gain anecdotes, perhaps at the start of a new product development process.
• Social media analytics or social media listening software – such as to assess national sentiments, for example, via ‘big data’ analysis of tweets etc. It also possible to analyse emotional response from emojis. In November 2016, social media analytics correctly predicted the outcome of the US Presidential election in contrast to the national polls.

Digital technology also spurs new analysis methods

• Facial recognition – uses software that’s more discerning than the human eye to determine emotional engagement (such as happiness, fear, surprise) with tv advertising, TV programmes or films. Enables better film editing and story-telling.

Digital research pros and cons

Some groups have particular affinity with the digital world and are thus easier to engage e.g. kids/youth market. The anonymity of the online world also encourages participation and openness.  Early technology adopters are particularly useful to pressure-test new ideas and anticipate the future.

Some digital media offer an almost ‘instant’ sample. For example, polls on Facebook, Twitter or blogs. However, a high-number of engaged followers are needed to generate fast and cost-effective insights.

The growing range and extent of online communication, for example via smartphones, make it easier to reach a wide geographic target. Thus avoiding travel and sometimes communication costs. In-built cameras also make it easier to collect audio and visual insights.

More complex technology, such as that involved in online qualitative research is a little more difficult to master. So allow time for set-up, to help respondents, as well as to conduct and analyse research. This means it is sometimes more costly than face-to-face discussions.

Online moderation is also more difficult. The process is often more linear and mechanical limiting ability to pursue all avenues of exploration. There are also visual limitations. Zoomed in head shots or screen size room views, make it difficult to see the big picture, and thus non-verbal responses. Qualitative responses also vary between the superficial and detailed. Initial superficial responses require more probing. Conversely, unduly verbose responses, especially if written, take time to follow and interpret.

Summary of traditional vs digital research pros and cons

Conclusions

Digital methods complement traditional methods and vice versa. Digital tools also help automate research activities, for example, making some activities, such as recruitment, and quantitative fieldwork, cheaper and quicker.  In particular, online is a fast and cost-effective way to recruit respondents for traditional qualitative research. It ensures broader reach, and helps mitigate against serial groupies.

However, there will always be a need for a moderator, to ease the journey of discovery and dig into the detail. Online moderation is just more difficult. Witness any radio let alone text discussion.

Online preplanning also needs to be more exacting to make sure respondents are capable of accessing and using systems. And this has a time-cost.

Technology can also fail. As a result, some online qualitative approaches advocate running research with two people. One to manage the IT systems, and another to moderate the discussion.

Whichever method is used there is a need for human management and analysis. Particularly for qualitative, where online costs can be higher than face-to-face.

The nature of the social media, also means there is more and more data available for analysis.  Analysis of social media big data has shown more accurate insights than conventional polls, such as on the outcomes of election results.

New hybrids that cross the lines of traditional and digital media offer the advantages of both worlds. For example, Skype and Zoom are a boon for conducting remote face-to-face interviews and thus see and hear respondents.

Marketing Inspiration

1. Digital media is a welcome addition to the market research tool-box.  It creates new ways to conduct research. So rather than see traditional vs digital research methods as competitive view them as complementary. However, remember the merits of face-to-face research. Those with long memories may recall the hype surrounding internet businesses in the late 1990s, and belief that these required a new way of thinking. They didn’t. Those that failed simply forgot basic marketing principles. As Simon Carter said recently, “Marketers are becoming lazy by over-using social media and ignoring the skills and disciplines traditionally learned by marketers” (2).
2. The start-points for choosing any research method are your objectives and needs. Then shop around and fully assess the pros and cons of each option to decide the best.
3. Best practice marketing requires a true understanding of customers and not technology. As Daryl Fielding, European Marketing Chief , Kraft Foods said recently,  “Marketers must remember they are talking to people”(3). There is a danger of technology getting in the way of understanding. Also, and perhaps ironically to digital advocates, ethnography helps understand how consumers use digital media!
4. Yet, try experimenting. If you don’t test new things out, you won’t learn. So just make sure it is not at the cost of, or detriment to, achieving your aims.

If you have or are aware of any new digital research methods or arguments to sway the traditional vs digital research debate please let us know.

References

(1)      Mehrabian Albert H, ‘Silent Messages; Implicit Communication of  Emotions and Attitudes’ 2^nd edition 1981

(2)      Carter Simon, Managing Director, Fujitsu ‘Back to basics’ Marketing Week & Research Live April 2011

(3)      O’Reilly Lara ‘A blinkered digital vision makes marketers forget the customer’ Marketing Week 21 Oct 2011

With 96% UK households having internet access in 2020 (1), the ability to buy food, clothes, music, films, sports equipment, holidays, cars etc. has never been easier. Shopping no longer takes place just in the High Street but anywhere, anytime. So what is the impact on how customers shop generally and what does this mean for businesses and brands?

Customers are becoming more mobile and tech savvy

More UK customers shop online compared with other major countries.  Eight in ten (79%) internet users said they ordered goods or services on-line in 2010 (2). They also spent more time on retail sites; an average of 84 minutes in January 2011 compared with 20 minutes for Italy and Poland (2).

Mobile phones are also changing shopping behaviour with significant growth in those connecting to the internet via their mobile phone.  Further smartphone ownership nearly doubled in the UK between February 2010 and August 2011 from 24% to 46% and nearly half used their phone to go online in October 2011 (2).

The use of wi-fi hotspots increased seven-fold from 2007 to 4.9 million in 2011 as has watching TV online with over 27% of UK internet users watching TV online every week (2).

New opportunities and threats

Changes in customer behaviour present new opportunities and threats to ‘bricks and mortar’ and ‘clicks and mortar’ businesses and (r)etailers.

• As customers shop both in-store and online, there are increasingly complex and overlapping behaviour Thus marketers must understand them.
• Customers are increasingly multi-tasking; browsing online channels, while doing other tasks, such as watching tv, drinking coffee, and even when browsing the shelves. Thus online communication must complement or enhance the brand experience. It must inform and entertain, not just act as a functional route to purchase.
• QR code (quick response) and phone apps such as Google Goggles enable customers to find out more about products. Applications even translate languages. Thus product packaging must compete within the visual noise of the category, work harder on a computer screen, and thus make buying easy.
• Phone applications that use global positioning satellite technology (GPS), such as Foursquare, and O2 Media/Rewards present new High Street promotion opportunities. They allow marketers to target consumers ‘on the go’. Such as, by sending a timely text message when they near a shop.
• The growth of comparison websites and functions such as Amazon (reviews and star ratings), Facebook (likes), Ciao (user reviews and prices) and TripAdvisor (reviews and ratings) are increasingly influential. Positive reviews, or ‘likes’ are valued by Google as well as prospective purchasers.

• Mobile phone recording and camera applications allow experiences and ideas to be recorded and shared with friends. These help seek feedback on a prospective purchase (‘what do you think my new dress, mum?’), enhance a brand experience (for example, taking photographs with the hunky model at Abercrombie and Fitch). They also enable promotion and endorsement via tweets, Instagram et al.

Why understand the customer journey?

Understanding the sequence, nature, and importance of the steps in the customer’s journey allows marketers to what influence’s awareness and sales of a particular service or product. In turn how to promote it and where and how to add value. The traditional view of the customer journey is as a linear series of steps, as espoused by Lavidge and Steiner (3) et al.

Though this is less relevant in the online world. With the proliferation of online media, the customer journey is becoming non-linear; a more random, looping, stepping stone process.  Customers use online to aid shopping decisions as well as buy.  Increasingly from the comfort of their own home, desk or even bus! Retail is used to see and touch.  Customers jump to and fro on their journey, reflecting, comparing and considering. They also jump from online to retail and back before finally buying.

Many factors influence if, how and when they buy, as well as their relationship with, and propensity to endorse a brand.  Online media, specifically fact-finding tools and ratings on Amazon, ebay, Twitter and Facebook et al, play an increasing role.

Marketing Inspiration

1. Don’t underestimate the speed and impact digital media is having on all markets. New technology provides a host of new communication opportunities. These change the way that customers become aware of products, and are also influenced, and persuaded to buy.
2. Marketers need to stay one step ahead by using creative qualitative research to understand the offline and online customer journey. Also the relationships between the two. This will then provide a foundation for a coherent marketing communication strategy, with a persuasive message, and also appropriate media to assuage customers to .
3. View the whole customer journey as a relationship ladder. Your aim is to attract a prospect, build a relationship with them and ultimately encourage advocacy of your brand.

References

(1)   Office for National Statistics, Internet access – households and individuals, February 2020

(2)   OFCOM, Sixth International Communications Market Report, December 2011

(3)   Lavidge Robert J and Steiner Gary A A Model of Predictive Measurements of Advertising Effectiveness: Journal of Marketing, vol. 25, no 6, 1961.

Researching the Halloween market we discovered the market is not as shocking as it might first seem. While the tradition of Halloween originated on this side of the pond, the United States commercialised the event. As a result Halloween is now the third highest revenue producing US event, representing around £4 billion pounds a year.

Halloween market statistics

This equates to a mean household spend of £34 (1). Further, the UK Halloween market was worth a modest £310m (2011), with average UK household spend at just one-third of our US cousins. Yet the UK market has grown at twice the rate of the US since 2005 (1). So what market and product development lessons can we learn in order to grab a slice of the market pie?

Understanding the cultural context and origin of Halloween, different consumers, their needs, drivers and attitudes to Halloween, and the range and nature of Halloween offers and promotions around the world reveals new market and product development opportunities.

What is Halloween?

Halloween is an abbreviation of All Hallows Even, the night before All Hallows Day (All Saints Day). It started out as the Celtic celebration of  Samhain when the Celts believed that the border between this world and the ‘other world’ became thin and allowed spirits (both harmless and harmful) to pass through. All Saints Day was founded by Pope Gregory III (690-784) to remember saints and those that died. It is recognised globally as a time to honour ancestors and departed souls. In addition, wearing costumes and masks originated as a custom to copy or placate evil spirits. Begging for food also dates from the Middle Ages when the poor went door-to-door, seeking food in return for prayers for the dead. So called ‘souling’.

Growing popularity of Halloween

Awareness and interest in Halloween is fueled by popular culture, such as Hollywood movies, The Hollow and Halloween, and cultural crossovers such as Stephanie Meyers’s Twilight – driving interest in the ‘undead’ amongst teen girls and middle-aged mums.

US corporations including McDonald’s, Coca-Cola, Disney and Wal-Mart embrace Halloween as their own. Making it more appealing and accessible to customers. They built Halloween into an event to fill the relatively ‘dead’ period between the Summer and Christmas.  In the UK, Asda Wal-Mart developed the Halloween market and remains market leader with around a 50% market share. Asda’s Halloween event runs for 6 weeks from late September. Much of their merchandise is also ‘own-brand’.

So how can you grab a slice of the growing Halloween market pie?

Understand traditional needs and reveal new needs to inspire ideas

Consumers include both adults and children. Both seek a Halloween emotional experience. Beyond the traditional activities like carving pumpkins or turnips, and apple bobbing, needs include a ‘scary’ experience and to ‘trick or treat’ friends and neighbours. Also to socialise, look cool, be a good host, and of course, entertain. Adults seek gifts to satisfy trick or treaters, items for children’s and their own parties, or a day or night out. Children seek fun ways to spend their pocket-money.

Uncovering, defining and delineating needs, reveals new product opportunities. From confectionery, food and drink, scary stuff to entertainment, games, dressing-up gear and make-up – to go with the pumpkins, skeletons, turnips, and party fare.

Understanding and building on the rituals, such as pumpkin and turnip carving sparks needs for design inspiration, cutters, carving kits, tea lights and other decorative or special effects.

Trick o’treating, prompts needs for mixed bags of sweets. An area increasingly served, for example, by Swizzels Scary Mix, Cadbury Screme Eggs, Haribo and more. Thinking about combining needs, accentuating the emotional experience, stimulating or depriving the senses,  inspires more product ideas. For example, the sense of touch can add intrigue, shock or surprise to the sweet selection process. Using sound, light, colour or special effects adds decorative drama to a room or walk up a garden path.

Emotional and self-image needs such as socialising and looking cool are increasingly important. This is evidenced in, and suggests demand for products for sharing/making together. Also having a laugh, surprising and bonding to more dramatic make-over solutions. Thinking about the broad range of markets where needs could be fulfilled, such as food and drink, games, entertainment, mobile telephony prompts more ideas.

Excite and engage by combining ‘fun’ with terror

Being scared is fun, creating an adrenaline rush is like riding a roller-coaster. Most retail displays incorporate colours and symbols associated with the harvest (orange, pumpkins) or death (black, skeletons, bats). Adding more vibrant colours tones down the scary nature of the offer while providing a cultural signpost inviting people to explore the Halloween aisle. For example, greens, yellows and purples are colours that occur in nature, and cuddly ‘full-of-life’ characters. This year’s Asda theme is ‘Party time’ and ‘trick or treating’. While bats and skeletons abound, the aim is to engage and encourage partying rather than frighten away.

Looking overseas to mainland Europe, parts of Asia and Latin America provides further Halloween market insights and product ideas. Auchan in France takes the ‘fun’ a step further by hosting live entertainment – both to attract traffic as well as enhance the brand.

Halloween Marketing Inspiration

Successful Halloween marketing and product innovation requires clear understanding of the market, cultural and psychological variables. Using market research or alternatively, a few simple thinking tools helps better understand and interpret what consumers think and feel. And thus better reveal new needs and product opportunities.

Utilising Halloween colours, symbols, artefacts and rituals further helps match deep cultural and emotional needs. Thus stimulating demand, and enabling more inelastic pricing.

The insight and ideation tools applied to understand the Halloween market apply any market, occasion or consumer experience. Try them out and you may even shock yourself ;-).

References

(1)   The Marketing Directors’ secondary research and analysis based on various trade sources, the ONS and US Bureau of the Census.

Should writers and illustrators lead tv programme development? Or researchers and marketers who know what sells best in the crazily competitive world of children’s media? According to Simon Cowell, “Research just kills creativity because people lie or they say things they think the person wants to hear, or they over think it”. But is he right? Here’s a summary of the debate at The Children’s Media Conference (1). Moderated by Guy Tomlinson, Managing Director, The Marketing Directors, the session involved John Rice, CEO at Jam Media, Esra Cafer, Vice President Brand Management and Marketing at Chorion Ltd and researcher, Shari Donnenfeld.

Different views on TV programme development

It’s all about serendipity – John Rice, Jam Media

According to John, the ideas behind Jam Media’s successful children’s programmes emerged in different ways. By serendipity – happy accidents!

PICME started out as a multimedia invitation for John’s daughter Rebecca’s two year birthday party. One friend was so enthusiastic about it that he even offered to pay for it.

Roy, the Badly Drawn Boy was created in the opposite way to PICME. The film originated by John’s partner as a parody of his life; as a bitter 28-year-old who couldn’t find work in animation because he was so badly drawn. A CBBC development executive spotted the idea and thought that the fish out of water theme appealing to the CBBC audience. In the tv series the bitter 28-year-old is turned into fun loving everyday boy.

Tilly and Friends evolved from a series of stories by Polly Dunbar. By bringing in a child psychologist the story world expanded from 16 pages to 26 episodes!

Use research to create and support – Shari Donnenfeld, Researcher

Shari argued that research should support the creative process, as the process is complex. There are also lots of fingers in the creative pie, and it is easy for creatives to be removed from a child’s world.

Many creatives think they know kids, yet they are adults, who use razors and drink alcohol. Some are also parents who care for kids. There are however also some creatives who act like kids, but even if they do, they still don’t necessarily know what kids are about.

Children inhabit a different world, a more digital world than their parents. They are exposed to multi-million pound movies, games, e-books and ipads. It is hard to know what’s in their heads at a point in time. The sons and daughters of creatives inhabit an even more different world to ordinary kids. A world where words like 3D and CGI are regularly passed over the dinner table. As a result these children are neither normal nor representative.

Further, unlike live entertainers, tv programme makers are unable to adapt to live audience responses. A clown, for example, can easily change his or her act if he dies on his feet. However, programme makers can’t. So programme makers need to think like the clown and go and talk to children first.

Doing research with kids is like inviting them to the board-room table. They can help create a programme, while not heading the table. However, even though children are a worthy audience, research should facilitate creativity rather than act as a barrier to creativity or simply to ‘green-light’ programme development. Kids are naturally created and enthusiastic – so involve them as partners in the creative process.

Think about building brands – Esra Cafer, Chorion

Esra argued that there is a value in using brand management in the making of tv programmes. Brand marketing is a process to define the target, the programme and product offer. Also to communicate that offer to audiences and forge an enduring relationship. In other words to create brand love!

Chorion starts with characters, settings, worlds and stories already in place. It aims to understand, create, update, and extend brand properties to make sure that audiences love them. Rather than just translate the written word to the screen, research understands and defines the brand, the brand DNA, i.e. what makes it unique and appealing. Rather than dampen creativity, brand thinking reveals new opportunities and maximises relevance.

Make Way for Noddy has a traditional preschool audience of 3 to 5 year olds. So when developing Noddy in Toyland, research verified the audience, who they are and what they want. Findings revealed an audience that was growing-up and moving on to competitive products, such as Moshi Monsters, sooner than thought. This insight focused programme development on 3-4 year olds.

Research also spotted opportunities to extend the brand. It revealed that Noddy is a safe brand, to use in home, and not to show off to friends. This provided the confidence to focus on developing home products such as bedding and pyjamas, rather than lunchboxes or coats.

TV Programme Development Inspiration

Each programme development project is different. Some require more creativity and others more research. What’s right depends on the stage of development and whether more or less is known about the intended audience. Thus use creativity, research and marketing together – they are fine bedfellows!

1. Development is the most important part of the creative process

Get this right to establish a foundation for success. Further, for every show in production, have several in development. As innovation is a numbers game, this allows some to fall by the wayside.

Also create the right conditions for creativity to flourish.  While great ideas occur over a pint of Guinness or through sheer hard work, creativity is not limited to writers nor bottled and poured on. So prefer a more inclusive approach involving different disciplines.

2. Apply simple marketing principles

In other words, enable your audience to fuel creativity and be the main arbiter of choice. You’ll find this liberating!

3. Tailor research to circumstances

First, adapt the research process to reflect property origins, differences, challenges, risks and rewards.

Start by involving marketers and researchers at an early stage (via a short low-cost meeting). This will better represent target audiences’ needs, eliminate biases and also generate more saleable ideas.

Next, conduct informal research with family members and friends by showing programme materials before more substantial laboratory-esque research. And then talk to the trade and licensing people, for example, to understand cultural issues and what works in certain territories.

Finally, design audience research to fuel the creative process rather than evaluate or dampen it! Avoid closed questions such as “don’t you love this green dress?” as this invalidates the results.

4. Create a compelling pitch

Also use research to shape the brand strategy or ‘brand book’ and guide writers, illustrators and animators. Help all know the audience, and their needs. This empowers creatives to make the pilot and develop the series while retaining management control.

Create two scripts, a ‘brand book’ and a pilot to justify brand stand-out and appeal and also woo co-funders. While every tv programme development differs, the end game is the same – to secure funds.

References

(1)  The Childrens Media Conference takes place annually in early July in Sheffield.

Marketing agencies can transform the performance of your brand, your business and yourself. They will be the bane and boon of your life. However, whether you are selecting a new agency, or have a good agency on-board, the process is similar. It all starts with a clear brief. Yet there are a number of other things you can do to create great work and drive business results.

Be frank about your marketing and brand objectives and challenges

When briefing marketing agencies be as open as you can. The more an agency understands your needs and issues the more they should be able to help you. Start by preparing a written marketing agency brief; the process of doing so will help you clarify issues and opportunities and engage and gain agreement and support from your colleagues. A common problem is to write fuzzy objectives. So pay attention to both your marketing and brand objectives. Consider, for example, whether you wish to attract more customers, increase sales per customer.  Consider also whether you wish to raise awareness, change perceptions, or …. It often helps to reflect on your current situation, weaknesses or problems that you wish to address, and then redefine these as future goals.

Understand the agency landscape

The agency landscape is constantly changing. At one end of the spectrum, there are the agency groups owned by the likes of WPP and Omnicom. At the other, there is an ever-changing mix of independent and up and coming agencies. Some firms or firm groups comprise a mix of disciplines, or technology skills, some don’t. Keep abreast of the changes. And ask around.

Monitor the people moves especially if it is happening in one of your agencies. Check out the odd new agency that catches your eye.  The nature of the profession means that there are good people to be found in many places and those that are most vigilant stand to benefit the most.

In terms of cost, understand how remuneration works. The more intellectual or consulting agencies work on a mainly time cost basis. Database marketing and campaign communication agencies tend to be time and/or cost-plus. Marketing implementation services are more price list driven, for example, pay-per-click plus fixed fee. Overall, expect to pay more for those with London offices and less in the suburbs or rural areas. Expect to pay more for a heavy duty management team, those with an overseas management structure and those that belong to a quoted group. Fewer layers and complexity means less cost.

Selecting marketing agencies

Selecting marketing agencies starts with your brief. So as well as your marketing aims and needs, include your selection criteria in the brief. This helps agencies put their best resources on your case both to meet your needs and also demonstrate they can meet your needs.  Then seek multiple and diverse responses to your brief, and make sure you meet the team. When you do meet the team, ask who does the work, and be wary of agencies who just use front-men for the pitch and who you may never see again. Finally give clear, comprehensive and timely feedback to all. To do otherwise is disrespectful and lessens your good name.

Great campaigns are underpinned by a great strategy

Campaigns fail for either strategic or executional reasons, and sometimes a lack understanding between the relationship between both, or a failure to manage the relationship between them both. Great communications stem from a clear and compelling brand strategy underpinned by robust insights. So you need to provide a strong foundation of insights to inspire good work. You’ll also need to be clear, firm and vigilant to manage the process and give sensible feedback. A consequence of the creative process is that it can be an accidental or deliberate attempt to reinvent your strategy. Which may be fine if your strategy is ‘built on sand’, but not if it is built on hard-won facts!

Further, while all agencies say they have planners to create the strategy – creating great brands requires specialist positioning skills which are uncommon in creative agencies. And this is not something to be considered lightly or dealt with in a ‘black-box’.  So seek specialist brand strategy help if and when needed. Further, if you are working across multiple media, use your management skills to set the tone and define, manage demarcation lines, and get the most from your team.

Build good agency relationships

However, having seen the world from both sides of the fence, if you are paying an agency to help you, never be in doubt that they are on your side. But also remember that people are human  – they’ll work harder for you if they like you. So build good relationships; let your agency know that you are on their side – and if the work is deserving, say proper ‘thank-yous’. Building good relationships will benefit you in many ways: for example, in terms of a more enjoyable and less stressful life, and potentially profile, and career advancement!

Briefing marketing agencies

So net whether you have a good agency on board or need a new agency, it all starts with a clear brief. So use our handy one-page marketing brief for both selecting marketing agencies, or your in-house team. and managing them. Then make yourself available to answer questions verbally, help them understand, and stay on-strategy. If you’d like advice on selecting folk to help you, just give us a call.

‘Focus groups’ are often the default consumer research method yet in today’s highly competitive environment relying on groups alone is blinkered, if not blind. If everyone is just using the same technique how can anyone possibly gain an advantage over a competitor? So how can you gain new insights and an edge?

First, as insights can come from anywhere, it is vital to look in different places, and view and explore consumers in different ways. Use mixed methods to push the boundaries, dig deeper, and look into the future.  We advocate using three consumer research strategies to gain an edge; we call them the three Cs: Context, Challenge and Collaboration.

Get up close to understand the consumer context

Who consumers are, their needs, behaviour and influences are seldom what they seem. Sometimes consumer preferences and reasoning is beyond imagination.  So we need to understand who consumers are, how they live their lives, what’s important and why.  So by getting close up, and though observation, it is possible to truly understanding the decision making context.

Provide challenging experiences

Consumer  thoughts and feelings come from their own frame of reference i.e. experiences, prejudices and memory.  By provoking consumers, it is possible to reveal what is unconsidered, hidden or perhaps forgotten. So take them out of their comfort zones and provide new experiences. For example, giving consumers a new or different product to try can reveal insights on current product deficiencies,  on new or unmet needs, and also on barriers to overcome. Conversely, combining loyal and lapsed consumers in a ‘conflict group’ can reveal drivers and barriers to usage. Also to cast new light on the strength of attitudes, and whether, and how, to change attitudes.

Involve consumers as collaborators

Today we live in an increasingly connected and savvy society with greater free-flow of information and collaboration. In IT collaboration and ‘open-source’ software is common-place. Consumers are also very familiar with advertising and brands. able to discourse in ‘technical’ terms. This is a boon for researchers and marketers.  It therefore means that consumers able to discourse in ‘technical’ terms and also create as well as assess communication and product ideas and solutions. The concept of collaboration applies all aspects of research. The only limiting factor is our imagination! For example, by including specific technical experts in research, brings leading-edge insights and ideas, and potential glimpses into the future.

Marketing Inspiration

For market research to probe for new insights and give you an edge consider the 3 Cs : Context, Challenge and Collaboration.

There has been much in the press in recent years about market research losing its place in the boardroom. Most notably from Unilever who say that senior managers were unwilling to invest time attending a research debrief. Further, most CEOs consider market research less useful than finance, marketing, information services and human resources (1). However,  market research professionals appear in denial about their relevance (2). Yet criticism is also made by major research suppliers (3)!

Some suggest researchers lack the ability to integrate information, fail to connect research results with business outcomes and are unable to turn complex data into clear narratives (3). Problems result from many causes. Less than robust data collection, market research analysis and strategic interpretation. This is therefore to share insights and ideas to restore the importance of research in the Boardroom.

Current market research methods

Triangulation is a mainstay market research method. The idea is that when two or more methods are used in a study, confidence in the results increases. Denzin defines four basic types of triangulation. Methodological triangulation involves using multiple research methods to gather information, such as interviews, observations, and documents. Also, data triangulation which involves multiple time periods and respondents. Investigator triangulation involves multiple researchers. Finally, theory triangulation which involves using multiple analytical methods or models (4).

As qualitative research data is usually unstructured a key challenge is to manage, shape and make sense it. The most common form of qualitative data analysis is observer impression. Computers and software offer a storage place and tools to classify, sort and arrange information. However, computers and software fail to do the thinking. Identifying themes and patterns in data i.e. uncovering insight requires human skill.

And human skills and knowledge lie with the observer and analyst. While many analysts are graduates, most are career researchers and not business people. Further, for life stage and economic reasons, fieldwork and analysis tasks often fall to younger, less experienced staff.

Towards more useful market research

The concept of triangulation provides a foundation on which to build. The more data collection points, the more ways a problem is looked at, the more analytical methods, the more substantial is both data collection and analysis. Bricolage is a term used to describe multiperspectival research methods. It is also a way to learn and solve problems by trying, testing and playing around. It avoids the reductionism in many single method (monological) and mimetic research approaches (5 and 6). Further, it enables more deductive reasoning (in which a conclusion is based on the concordance of multiple premises). Thus it produces more comprehensive and specific insights.

Within qualitative research, employing simple numerical scoring (or semi-quantitative) techniques also enables more rigorous analysis. For example, by asking respondents to independently select the most appealing communication idea from a gallery. Or to rate a new product or service concept on scale from ‘will definitely buy’ to ‘will definitely not buy’. Using these techniques reduce reliance on subjectivity (interpretivism) (7) and adds scientific methods to qualitative research i.e. objectivity (empiricism, positivism). This therefore ensures important differences in meaning and in relative customer appeal are discerned more readily. As a result this spotlights key issues and opportunities on which to focus. Also ‘outliers’ (8) that demand more detailed investigation.

The Manchester map for research analysis

Probing and testing for clear cause and effect relationships also ensures more robust findings and analysis. The ‘Manchester Map’ is a useful technique learned in management consulting days. This involves systematically asking and understanding ‘so what does this mean?’ or ‘why does this happen?’. It therefore forces all information to be reviewed, delineated and linked. This thus ensures clearer articulation and understanding, of causes and effects. And in turn, findings and implications or conclusions.

Researchers should understand core marketing and business principles. Every marketer knows that customers have needs and seek products and services that meet their needs. So to design products and services to meet those needs, research must first clarify needs and wants, and also the drivers behind those needs. Only then can product benefits be matched or created to meet those needs.

Researchers should also have a good understanding of business aims and options. The broader and deeper the knowledge of a businesses’ aims, possible business strategies, and product, brand, and marketing options, the broader and more penetrating the nature of enquiry. And thus ability to uncover relevant, meaningful and actionable business insights.

Marketing Inspiration

1. Market research has a place in the boardroom – the most successful businesses are those that truly understand their customers. Market research ensures their voice is heard.
2. Ensure your research works hard. This starts with writing a clear market research brief. So include your business aims not just what you want to know. Also seek several responses to your brief.
3. Seek market researchers who are curious, diligent, informed, and also able to ask questions to get to the bottom of issues. Also, seek those understand your business – i.e. the supply side options – and marketing imperatives. Only then is it possible to truly understand causes and effects and draw meaningful conclusions, and devise practical strategic solutions.
4. Conduct due diligence. First, meet the researchers who will do the work. Then ask them what they know about your business. And finally, ask them how they analyse research.

References

1. Esomar Research World / ARF (2005)
2. Boston Consulting Group (2009)
3. Does Market Research Need inventing? www.InspectorInsight.com (2014)
4. Denzin, N. Sociological Methods: A Sourcebook. Aldine Transaction (2006)
5. Kincheloe, Joe. L. Berry, Kathleen, Rigour and Complexity in Educational Research (2005)
6. What is Mimetic Theory? www.woodybelangia.com
7. Interpretivism (or antipositivism) is a view that social research should not be subject to the same methods of investigation as the natural world. Gerber, John J. Macionis, Linda M. Sociology (7th Canadian ed.) page 32 (2010)
8.  An ‘outlier’ or outlying observation is one that appears to deviate markedly from other members of the sample in which it occurs though this is partly a subjective exercise. Grubbs, F. E. “Procedures for detecting outlying observations in samples”, Technometrics 11 (1): 1–21 (February 1969)