by Temel Aksoy
One of the worst research habits of company executives is to investigate multiple issues in a single study. They want to kill multiple birds with a single stone by examining brand recognition, brand image, usage habits, purchase intention and customer satisfaction all at once. However, it’s impossible to make sound decisions based on research that’s conducted with such a “one-size-fits-all” approach. Research that is designed in this way will contain every bias imaginable, making it essentially worthless. Unfortunately, even though research companies know this type of research is wrong, they bow to the pressures of competition and accept requests like this from companies’ management. This means they’re forced to do a job that they themselves don’t even believe in. This habit is one of the most destructive practices in the field of research. Yet the reality is, the problem can only be solved by company executives that commission research. They are the ones who will benefit the most from putting a stop to these types of useless research projects, because taking the low-cost route with this type of research is the best way to guarantee a waste of company resources.
Today, the biggest problem in the global research sector is the pressure that lowers the price of research. In recent years, large corporations have sought to centralize their purchasing activities to save money. In doing so, they’ve taken the responsibility of purchasing research away from marketing directors and transferred it instead to their procurement departments. The result is that a company’s marketing directors now have less influence on the selection of research companies. The first time I ran into a situation like this, I thought it was very strange and opposed it to the best of my ability; after all, who in a corporation understands market research better than the marketing department? But today, this practice has spread around the world. I understand that centralized purchasing does result in significant savings for companies, but unfortunately, the situation we’re in now demonstrates that this practice doesn’t always yield positive results for the market research procurement. As a result of the price pressure that purchasing departments put on research companies—and because of the fierce competition in the sector as well—prices in the research sector have fallen far below what they should be. Naturally, this has compromised the quality of the research.
Fixing this situation requires intervention at the CEO level. Issues related to research aren’t usually on the CEO’s agenda because the research budget isn’t a large percentage of marketing expenditures. However, the CEO should take note of this situation, because bad research has a negative impact on all of the company’s decisions. If the research a company orders is not sound, then the entire company is living on a “junk food” diet. Many company decisions that don’t inflict short-term damage still determine the company’s destiny. Company CEOs need to take initiative in this area by identifying what kinds of research should be done, what the purchasing process is and how research companies are selected.
91. How
to Get Good Market Research
If bad research is common, how can companies make sure they’re getting good, useful research that can help to grow a brand?
Leadership needs to get involved. Hard work on the part of the research company is not sufficient to ensure high-quality research. It’s absolutely essential that the company executives ordering the research be involved in this process. Every executive who asks for research to be conducted should take the following factors into account if they want accurate information:
Research is only one of the inputs required for decision-making. No manager should expect research to generate decisions directly from itself. Effective executives make decisions by synthesizing the information gained from research with their own experience and knowledge. Executives must not pass the buck to others when it comes to research. Otherwise, they’re eliminating their own raison d’être.
Most of the time, executives can find the answers to questions about brands, the market and customers (consumers) without ordering any research at all. This may be surprising, coming from a seasoned market research professional like myself, but it’s true. First, executives should collect the data already known to the company, and then, if necessary, they can order additional research to get more firsthand knowledge and insight.
Many questions can’t be answered by research. Indeed, it’s neither necessary nor technically possible to answer every question with market research. Therefore, the scope of research should be limited to only issues that will impact the decision-making process. Unnecessarily expanding the scope of research will compromise quality.
The research company and company executives are playing on the same team. They’re not rivals or enemies. Throughout my research career, I’ve worked hard and enthusiastically on every project where I felt like I was part of a team. I have thoroughly enjoyed working with executives that take this approach, and I’ve helped these companies tremendously. If the company executive views the researcher as a member of the same team, this sense of shared purpose will boost the researcher’s contribution.
Some executives ask for the impossible: research that entails superlong questionnaires, filled with questions that are almost impossible to answer, conducted with subjects who are incredibly difficult to find—and they want it done quickly and cheaply. If an executive gives a research company an impossible task, and the researchers accept the mission, the job will be “completed” one way or another, but the results of research conducted under such conditions won’t reflect reality. I recommend that companies always opt for the simplest, most straightforward research design. In my opinion, simplicity is the most effective weapon in the research arsenal. Every executive must learn how to use it.
Every executive who orders research must possess a basic understanding of the research profession. Research isn’t a black box full of secrets beyond the grasp of company executives. Anyone who puts forth a little effort can quickly learn the basic research tools and techniques. Executives who know how research is done and under what conditions can really make a difference.
Understanding the research profession is a skill that all marketers should have, from the marketing department assistant to the CEO. Being able to understand research—both how to request studies and how to interpret results—can save a company time, money and wasted effort. Mastering research can sometimes be the difference between making an uninformed (and potentially disastrous) decision and a great one.
HOW TO DO MARKETING
Over the course of this book, I’ve talked about the principles of scientific marketing: ten marketing laws depicted by Byron Sharp and empirically researched by the Ehrenberg-Bass Institute for Marketing Science. I’ve discussed these laws in detail, along with techniques for understanding consumer behavior, managing a brand, and ordering and interpreting market research.
I’ve talked about some of the most prevalent marketing myths affecting brands today, why they’re unscientific and therefore unsound and how thinking in line with a scientific marketing perspective can help your brand grow without wasted effort and money.
What I haven’t yet discussed is how to bring all this knowledge together into an actionable plan.
Up until now, I’ve talked a lot about what not to do. In this final section of the book, I’ll show you how to “do marketing”—the right way, relying on approaches proven to work.
92. Be R
ealistic, Cleanse Your Mind of Myths
I know how the myths generated by established marketing doctrine have polluted our minds, and I know how hard it is to escape their influence. But I also know how scientific truth illuminates the polluted mind and makes cause–effect relationships that seemed complex and incomprehensible crystal clear (details in Preface). Based on my experience and knowledge, here’s what I recommend you do to cleanse the myths from your mind and make room for scientific thinking:
Know your consumer (your customer) and your shopper. Learn what the motives
are for buying the category you operate in. Make sure all of your marketing activities, from product design to after-sales service, are compatible with these motivations (details in chapters 3, 4, 5, 19 and 21). Learn how human memory works, how people reason and how their decisions are influenced by “mental biases.” Never forget that the people you sell products and services to make their purchasing decisions practically “without thinking.” Design your marketing mix to be suitable to the “primitive” nature of human behaviors (details in chapters 7, 8, 9, 10, 11, 12, 13 and 14).
People pay money not for your product or service, but for the benefit they receive. They don’t want a drill. They want a hole in the wall (Theodore Levitt). The features of the product or service that you have worked so hard to produce may be important to you, but the consumer (customer) is just not that interested. Don’t tell them about your company, your brand or your products and services. Tell them about the benefits you’ll provide.
Understand how the products and services you sell satisfy people’s needs.
Your products and services meet different needs in different situations. Don’t forget that when the situation changes, the benefit of the same product or service also does (details in chapters 15 and 16).
In addition to the functional benefits, your product or service provides emotional and social benefits. All the benefits that your product or service provides constitute your brand promise. Always remain faithful to your brand promise while carrying out your marketing activities (details in chapters 18, 20 and 21).
Brand promise is not brand positioning. Your brand promise may not be that different from your rivals’ promise, but don’t forget that this promise is what buyers are paying for in exchange (details in chapter 17).
Your brand is your performance promise. Don’t sacrifice product features for the sake of cost management. Assume that shoppers are at least as smart as you are (details in chapter 16).
Accept that it’s a fact of life that consumers (customers) will ignore your brand. An idea, product or advertisement that you’ve worked on for weeks or even years may not even register in their minds because they have their own priorities, such as being healthy, being happy, loving, being loved, living well and having fun. Embrace the idea that for a mind concerned with the aforementioned priorities, no brand is very important, including yours. Never forget that marketing is selling products and services in an environment where people have little regard for brands (details in chapter 37).
Be realistic! Accept the fact that the product or service you sell is not that different from the competition. You may believe that your brand is the best proposition in the category, but in the eyes of buyers, your brand is really not that different from the competition. Every brand they come across is a brand that they can buy just as easily as the next one. Don’t think for a minute that anyone will have second thoughts or regrets when they buy the rival brand instead of yours.
But look at the bright side: remember that they can just as easily buy your brand instead of the rival brand. Base all of your marketing decisions on this simple truth (details in chapters 38, 39, 40 and 41).
Marketing is done to increase the purchasing likelihood of your brand in a world of possibilities where any shopper can buy any brand every time they go shopping. Adopt this scientific principle and make all of your decisions based on it (details in chapter 24).
Embrace the fact that most of the people in your user base are light buyers of your brand. Break the habit of thinking and making decisions based on averages. Never forget that the number of potential buyers who still haven’t purchased your brand is so big that you’ll never be able to reach all of them, even if you work your entire life (details in chapter 43).
Free yourself of the narrow targeting myth. Adopt the marketing principle that recognizes that marketing isn’t about “depth” but about “breadth” (details in chapters 42, 43, 44 and 45).
Don’t make customer loyalty one of your marketing priorities. Loyalty is obviously a good thing, but new customers, not loyal customers, are what will grow your brand (details in chapter 26). If you grow your brand, remember that loyalty will take care of itself. Unless forced to do so by the competition, don’t implement loyalty programs (details in chapters 46–51).
Like architecture, marketing is an endeavor that requires creativity. Anyone who examines the works of famous architects is amazed at their originality and ingenuity. However, all architects must implement their creativity based on the laws of physics and the calculations of engineers. In the same way, marketing must be based on solid principles. Never forget that there are marketing laws (described by Byron Sharp) that you must follow for your creativity to be successful (details in chapters 26–35).
A Footnote about Subscription Markets, B2B and Small Brands
The guidelines I listed above assume you’re a marketer or executive working for a large corporation, managing a brand in a repertoire market. However, the advice I offer here applies to other market types as well.
Subscription Markets If you operate in a subscription category, such as mobile phone operator, banking and insurance, or electrical utility, remember that the marketing laws in this book still apply to you. The difference between your category and repertoire markets is that your customers don’t select a new brand every time they go shopping. But over the long term, the dynamics in your category will still approximate those of the repertoire market. What I’ve tried to explain in this book is that all of the marketing concepts apply to you as well (details in chapter 36).
B2B If you’re operating in the B2B area, the information contained in this book applies to you as well.
Small Brands If you’re just beginning this journey, and your brand is still small, this book is essentially your road map.
7 RULES OF MARKETING
93. Rule
1: Focus on Reach
In his book How Brands Grow, Byron Sharp outlines seven rules for marketers who want to grow their brands. In this chapter and the six that follow (chapters 93–99), I’ll present these seven rules and talk about them in detail.
The first rule is to focus on reach. The purpose of marketing is to make a brand popular and to bring it to as many users as possible. Like all brands, your brand will grow as it spreads to light buyers and nonbuyers, not by increasing depth in a narrow target segment (details in chapter 42). To maximize your opportunities to extend the reach of the brand, follow these guidelines:
Find ways to put your brand in front of light buyers and nonbuyers. Marketing that targets these two groups will inevitably reach your current users as well; don’t worry about neglecting them (details in chapter 43).
Strive to reach as many users as you possibly can. Increase the number of sales points while controlling costs. Be available at every location where your consumers (customers) would want to buy your brand (details in chapter 57).
Make sure that your brand is displayed at sales points in the best way possible and that the sales service is excellent. Take advantage of the potential that improvements in this area offer to quickly create increased revenue (details in chapter 57).
If it’s appropriate for your category, sell your brand online. Make life easier for shoppers with optimal management of the integration of e-business and physical sales points (details in chapter 58).
Advertise to ensure that people remember your brand whenever they think of your category (category entry points, or CEPs) (details in chapter 69).
Refresh the brand memory that you’ve created in people’s mind with regular advertising (details in chapter 69).
When purchasing advertising, make it your aim to reach all users of the category, not to show the ad frequently to a narrow target audience (details in chapter 75).
Don’t forget that the impact of advertising is felt over the long term, not the short term. Distribute your media
budget evenly throughout the year (details in chapters 72 and 73).
Disregard the myth that people don’t watch much TV anymore. Advertise on TV if your brand’s category and resources allow you to (details in chapter 74).
94. Rule
2: Be Easy to Buy
Think about the e-business websites where you like to shop. You don’t have to fill out long forms if you want to buy on these websites. The products are displayed just like you would expect. User comments are reliable and transparent. Prices are fair. The payment system is extremely practical. The website asks your permission to store your address and credit card information. You’re immediately notified that your order has been shipped, and you can track your package. When there’s a problem, you have no trouble returning what you purchased.
Whether you’re selling in a physical channel or online, you must eliminate any hurdle in the shopping experience, just like these successful online shops do. Marketing is essentially removing all of the obstacles people face when buying your brand. You can take the following steps to do this:
Create the conditions that make it convenient for people to buy your brand.
Plan your product offering at every point of sale, including e-business. Design the package sizes and prices based on the characteristics of that particular point of sale (details in chapters 57 and 58).
If the size of your package or the characteristics of the products you sell prevent low-income users from buying your brand, create solutions to eliminate these obstacles. Provide shoppers with products, prices and payment options that suit their needs.
