In 1967, 18% of housewives use MOUSPA, a household product launched in 1962. The commercial strategy of the Firm manufacturing MOUSPA is based on an expansion of the market for this product, while at the same time consolidating the positions it has already acquired, and we were asked by the Marketing Department to supply them with the information necessary for an optimum elaboration of this policy which includes both defensive action and attack. In other words, the problem was to evaluate, determine and describe the strata of the population constituting the immediate potential client or clients for the product, with a view to increasing the profitability of publicity and promotional investments at a time when the general policy of the firm rather tended to restrict them.
I shall not attempt to forecast the future of market research in the seventies, but I just want to bring up two particularly important aspects that both theoretical and practical research ought to tackle and get into perspective, if not solve completely, within the next ten years or so. I must state clearly that my viewpoint, while not diverging from that of research and surveys, is and means to remain that of an industrialist who always keeps the practical application in mind. As we all know, this invariably involves individuals, the decision-makers; this fact must not be overlooked, for its implications are often important.
I shall not attempt to forecast the future of market research in the seventies, but I just want to bring up two particularly important aspects that both theoretical and practical research ought to tackle and get into perspective, if not solve completely, within the next ten years or so. I must state clearly that my viewpoint, while not diverging from that of research and surveys, is and means to remain that of an industrialist who always keeps the practical application in mind. As we all know, this invariably involves individuals, the decision-makers; this fact must not be overlooked, for its implications are often important.
The market background is first examined to give an indication of the competitive advantage that could follow the development of consumer durable shop siting studies. Next, the methodological factors which distinguish these studies from research into branded products and siting studies for repeat-purchase items are discussed. The concept of the trading area is then touched on briefly, leading to a discussion of the preliminary research necessary before fieldwork, and the interrelationship between secondary statistical sources and survey objectives. There follows a consideration of survey methods, sampling problem and the concept of accessibility with particular reference to practical problems, leading to a case history report on how research indicated which one of two sites in a town was preferable. Finally, brief consideration is given to the use of research to investigate currently unprofitable branches.
I want to stress the fact that the ultimate objective of an advertiser is not sales but profit. Some advertisers will be delighted and we may even earn a lot of money as profit-measurers. But then, an advertising campaign should be dismissed as ineffective, only because, for example, the firms buying department happens to have been so stupid as to purchase raw materials at a far too high price. And on the other hand, we should praise an advertising campaign as very effective, not for the large sales it produces but all the way to the large profits.
In order to get a maximum profit from market research it is necessary that the following steps should he carried out: 1. Formulation of a problem in terms amenable for market research? Asking for a high degree of commercial sophistication; 2. Surveying proper, asking for a well trained and supervised staff of field workers; 3. Coding, punching and machining, asking for a rather specialised punch, card equipments; 4. Interpretation of data, presupposing formal schooling in statistics and commercial economics and a sufficient acquaintance with obtainable reference material; 5. Blending of the information gathered by the research with the existing body of information.
In order to get a maximum profit from market research it is necessary that the following steps should he carried out: 1. Formulation of a problem in terms amenable for market research? Asking for a high degree of commercial sophistication; 2. Surveying proper, asking for a well trained and supervised staff of field workers; 3. Coding, punching and machining, asking for a rather specialised punch, card equipments; 4. Interpretation of data, presupposing formal schooling in statistics and commercial economics and a sufficient acquaintance with obtainable reference material; 5. Blending of the information gathered by the research with the existing body of information.