Market Research Guidelines

Market Research Guidelines
An introduction to developing your research curriculum for a powerful market insight.
by Sherman Whipple, partner, Whipple, Sargent & Associates
Whipple, Sargent & Associates
10 Industrial Park Road
Hingham, MA 02043
Phone: 617-740-4025
Fax: 617-74909474

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Table of Contents:
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Marketing Research vs. Market Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Market Research: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Marketing Research: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Selecting the Most Appropriate Research: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Integrating Market and Marketing Research: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
The Whipple Advantage: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Developing Your Own Research Curriculum: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
The Whipple Check Response Methodology: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Data Entry/Runout: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Data Analysis: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Table of Sampling Tolerances: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
The Bumprock Advantage: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Using the Benchmark Study Technique . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Introduction

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Whipple, Sargent & Associates is pleased to provide the following guidelines for market
research, data analysis, and presentation of findings. This will help you evaluate your
research requirements, select the most appropriate research methodologies and serve as a
basis of future discussions to make your research more reliable and productive.
In order to be valuable to a corporate decision maker, market and marketing research must
adhere to the same scientific methodology as any research done in the laboratory. One
follows the steps of creating an hypothesis, establishing control data, making field or test
observations, analyzing the test data, and comparing the test data to the control data to
produce findings. This applies to all types of market and marketing research.
As an advertising counselor, researcher and strategic planning organization,Whipple, Sargent
& Associates relies heavily on accurate and statistically representative research. Based upon
the availability of such research, clients track emerging market shifts, capitalize on market
opportunities and avoid market pitfalls. Accurate market research literally becomes a road
map showing you ways to manage growth and maximize profits.
This road map is called your market model. It shows the total markets for each of your
products or services and then defines your share and profile within those markets. Unlike a
road map, however, every market model is unique and often several different research
techniques are required to formulate an accurate representation.

Recognizing there are literally thousands of different research methodologies and only one or
two may be right for you, WS&A helps you select the most appropriate research program or
designs a totally unique method so you will be able to make critical marketing decisions with
absolute confidence.

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Marketing Research vs. Market Research
Research is broadly divided into two categories: Market Research, a formal analysis of
quantitative demand, access and recognition for classes of products or services; And
Marketing Research, a formal analysis of the qualitative demand, access and recognition
resulting from the activities of supply, distribution and promotion. Essentially, they represent
two sides of the same coin.
Because of the direct relationship between both categories of research, both are equally
important to the corporate decision maker. Market research provides you with an external
perspective of your business and industry and marketing research provides an internal or
focused perspective.
In applying scientific principals, market research forms your control data and marketing
research is used to conduct observation and field tests. Without market data as a control,
marketing data becomes meaningless. Fortunately, much of the market data required is
readily available from many sources.

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Market Research:
Market research produces an overview of a total population, need or industry. General
market research is compiled by municipal, state and federal governments. The US Statistical
Abstract is a compendium of markets, market compositions, market histories and trends. For
particular industries and markets, relevant market research is often available through
publishers, trade organizations and major corporations. Market research is nearly always
quantitative.

Published market research is usually very broad and contains a minimum of detail, but the
gross numbers provide a reliable control against which to measure your overall business and
compare marketing data. When greater refinement of data or specific market testing is
required, it is necessary to commission your own market study.
Market studies take several forms. Empirical studies use collected data of actual events or
records to produce lagging market indicators. A baseline study is one form of empirical
study which tracks records over periods of time to demonstrate trends such as sales increases
or population shifts.
Attitudinal studies measure a cross section of a population or market to statistically model
present state of mind and forecast future actions based upon intent. For many years, due to
the complexity and labor intensity of major attitudinal market studies, they were primarily
conducted by colleges and universities where low cost student labor would bring the expense
to a manageable level.
In the private sector, the most widely accepted type of total market research is the benchmark
study. Benchmark research measures both a cross section of attitudes and composition of a
market as well as the relative shares and profiles of every product and business competing in
a market. A benchmark study is designed to expose every strength and weakness of your
business or offering as well as each of your competitors’. It is one of the most complex and
detailed forms of quantitative research.
Due to the high costs involved, Benchmark studies were once the domain of only the largest
national marketers. Today many smaller corporations and marketers recognize the need for
benchmark research and advances in computers and software have made this type of research
more affordable.

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The name "benchmark" is derived from the ability of such studies to pinpoint the exact
location of each particular marketer in relation to his competitors and the market as a whole.
Most important, benchmark studies are the only form of research capable of mapping new
and untapped markets.
Another variant of market research is called the marketplace study or competitive analysis.
While modeling of ones competitors, the marketplace, is a component of a benchmark study,
separate statistical or empirical studies are often conducted to determine share and also used
in business plans to demonstrate parallels and differences between competitors.
To summarize market research, it is a perspective which looks at the total universe and
pinpoints your location. In a market study, if your actual share of the total market is, 2%,
you should show up as 2% of the sampling. The goal of all market research is to achieve a
direct 1:1 relationship with the real world.

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Marketing Research:
Unlike market research, where WS&A is one of a limited number of organizations equipped
to offer the specific research capability required, marketing research is available from an
almost unlimited number of sources, both as an internal function of your business as well as a
service from an outside vendor. The sales and inquiry records of your business, for example,
are a reliable marketing database.

In some form or another, nearly every business already conducts marketing research
internally and the reporting is presented in sales reports, inventories, customer lists, and
prospect activity reports. While often presented in tabular form, marketing research is almost
always qualitative.
Other forms of marketing research are provided by research companies either directly or
through your advertising agency. Focus groups, penetration and effectiveness studies,
customer polling, mall intercepts, MAP testing, customer feedback mechanisms, and shopper
surveys are all forms of marketing research offered by various polling, testing and research
companies. In the scientific model, these methodologies form a base of field tests and
observations.

Most outside marketing tests fall into the category of product tests. They allow you to
examine a product's customers in great detail or measure the levels of satisfaction or
dissatisfaction with your offering. Additionally one would use marketing research to evaluate
the effectiveness of your design, packaging, advertising or sales efforts. If you have a
marketing problem a marketing test is the best way to define the problem and discover the
solution.

To summarize marketing research, it is a narrow or focused perspective from the point of
your business or offering and looks outward. In a marketing study your product or service
may represent the lion's share of the data even if your actual share of the market is minimal.

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Selecting the Most Appropriate Research:
Based upon the above, it should be relatively easy to decide whether you require market
research or marketing research simply by defining the nature of the decision or problem you
face. If you require qualified data on products, services, or your actual customers, use
marketing research. If the issue you face relates to changes outside your company or the
need to influence those who are not presently your customers, use market research.
Because market research serves as a control, it is usually conducted periodically and not as an
on-going process of your business. While many major marketers conduct benchmark studies
quarterly or annually, most market research needs can be adequately addressed by conducting
benchmark research only once or twice per business cycle, or every 4 to 7 years unless there
is an indication of a major change in the market. In the interim published data can be used to
keep abreast of the market.
Marketing research should be an on-going function of your sales and marketing department.
It is the most effective way to track your progress and, with the exception of specific
methodologies such as focus groups, is the easiest to bring in-house so that you may most
economically stay on top of your customer base.

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Integrating Market and Marketing Research:
Turning again to the road map analogy, periodic market research will create a statistically
reliable map for you to plan the growth and profits of your business. On-going marketing
research will provide direction and signage along the way so you can measure your speed and
mark your progress. In order to use both together and apply market data as an effective
control for your marketing research, both must use the same research parameters.
The selection of parameters for your research is the single most important part of your
research curriculum. Every market has standard segmentation. In consumer markets these
segments are geographic, economic and demographic. In business markets, these segments
are geographic, economic and organizational. Additionally, you may require specific
psychographic or circumstantial segmentation to learn about unique attributes of your
market.

Even if you do not require a market study immediately, it is vital that you standardize a
consistent set of market research parameters. These parameters allow you to compare your
sales and customer data with published data before you begin creating a new base of
marketing data. You will be able to use the same parameters for decades.

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The Whipple Advantage:
As an advertising, research and strategic planning professional,Whipple, Sargent &
Associates is uniquely qualified to assist clients in the process of gaining valuable insights into
the opportunities which exist in every market, in both good times and bad.
During periods of economic growth we help clients maximize profits and fine tune their
advertising and communications. We help them anticipate economic down-turns so they
avoid overshooting.
During recession, we help clients use the soft economy and weakened strength of their
competitors to gain share and alleviate some of the pressures caused by tight money and
lagging sales. With most market shifts occurring during recession, WS&A conducts
benchmark research to spot every trend and shift and pre-position marketing strategies so
clients may rapidly accelerate to market dominance during recovery.
The role of Whipple, Sargent & Associates, however, is not primarily that of a market
research company. Our mission is to design effective research and to use the information
gathered by this research to create a powerful, competitive, marketing advantage for our
clients.
Traditional intercept and polling data gathering for most research developed by WS&A is
conducted by outside research polling companies, universities or the clients themselves. As
an in-house capability, WS&A does provide both in-depth executive research and benchmark
research using the Whipple check response methodology.
For those businesses and organizations where the check response methodology can be used
to gather a statistically representative sampling, WS&A offers benchmark research at a more
competitive price, with a faster turn-around, and greater data refinement than any private
sector research organization. Often this means that Whipple can offer a national benchmark
survey, which would cost $350,000 to $700,000 using an intercept or polling technique, for
as little as $100,000 to $200,000 using a check response questionnaire.
WS&A is nationally recognized for its accurate and effective research methodologies and,
more important, for bringing an objective and common sense approach to a client's marketing
needs. Whether your goal is to reposition your business in your market or simply fine-tune
your present marketing program, WS&A gives you a competitive edge in your market.

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