Marketing Communications

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Marketing Communications
Advertising Research

The stated research question can be analyzed further as –

•    What is product X?

•    What are its major sales features?

•    What competition does it face?

•    What type of promotional support does it have?

•    What is its price and discount structure?

This analysis has amplified the problem situation and can lead to a proper definition of product X
as follows:

“Product X is our new liquid detergent. It was launched just over six months ago with heavy press and
television coverage. The campaign platform stressed its foaming qualities in cool water and it’s care of
hands. It was distributed via the company’s national sales force to retail multiples, voluntary chains and
wholesalers in both the grocery and hardware trades. It was offered in two sizes (medium and economy)
with a 2 kobo offer on the medium and a 4 kobo offer on the economy size. Sales are now running at
20% of forecast as shown by the sale data”.

The amplified definition of the same research problem given in more detailed terms has opened up a
number of positive hypotheses about the reason why sales are behind on forecast. The researcher can
develop various hypotheses such as:

1. Was the product a “good” one in terms of those offered by competition? How do consumers
   react to it as a product?


2. Was the launch campaign of “hand and lather” meaningful to the users? How did it compare
   in effectiveness with competing brands? particularly those with similar theme. How well
   was it put over? Was the media selection and balance correct?


3. How did the sales force do their parts? Were they effective in selling it?


4. How were the original offers arrived at? What were the redemptions? Did they result in
   respect purchase of the new product? What was the pay-off?


5. How were the original forecasts made? What evidence was used in analysis and forecast
   build-up? Could they have been over optimistic?

The analysis has focused on a research problem of “falling sales” and more hypotheses can still be
formulated. Once an analysis is done, most problems of this type can be seen to be broken down into
a number of subject areas such as:

•    The product

•    Promotional campaign

•    Sales coverage and distribution factors

•    Competitive action and reaction