Brand Validation embraces some big themes. This month we provide an overview of some of the ‘big’ quantitative market research, questions that need to be asked pre and post launch. Prior to launch when developing brand strategy and post launch when seeking to enhance brand performance there are vital pieces of quantitative market research that will contribute to the success of a brand. In future Third Tuesday articles we will cover these in more detail.
Vicky McLellan 
23 Sep, 2008
What are the ‘big’ questions in quantitative research?
In the pre-launch development of a brand there are key quantitative research activities that are crucial.
- Market sizing and opportunity
- Market segmentation & Targeting
- Market access – pricing and reimbursement
- Communications research
Communication research post launch is also highly valuable, as is brand tracking.
Market Sizing and Opportunity: typically conducted prior to a product launch to identify and map the contours of markets and the brands within them.
From a quantitative perspective with the support of a robust sample size the
aim is to identify:
- Which attributes drive brand selection?
- Which attributes are of most importance in the market?
- Which attributes do brands perform well on?
- Which attributes offer less differentiation?
- Do existing brands have clear USP’s?
- Are there any obvious areas of unmet need?
Far too often the output of market sizing studies is realms of data which do not provide the analytical depth required to make actionable recommendations. Any output should avoid just simply reporting on the mean scores derived from a battery of rating scale questions as this will not provide any context or depth of understanding. To provide the depth qualitative research will go some way to answer the ‘whys’ behind current behaviours and attitudes.
From a quantitative perspective a conjoint task will provide guidance on how choices are made between brands. Alternatively the MaxDiff scaling technique is also a useful way of understanding the relative importance of attributes. When it comes to understanding drivers, barriers and brand loyalties these can be uncovered using attachment scales, as well as attribute lists and metaphors.
Another challenge is identifying where a new product may fit in the current market relative to the existing brands, but this has to be based on what is happening in reality as opposed to what physicians perceive to be happening. Having physicians consult real life patient records will provide clearer guidance as to where the product will be placed in the treatment algorithm, identifying specific needs that the product may or may not meet.
Market Segmentation & Targeting: Once an understanding of the market has been gained, it is crucial to understand who should be targeted when it comes to marketing the product. Prior to any quantitative testing it is essential to explore the market with qualitative research. This will provide a more insightful view of the respondent’s mindset; explore the whys and identify the attitudinal and behaviours drivers. The quantitative research will then build upon this and provide projectable and statistically significant data which will be much more indicative of the market as a whole.
There are many ways of segmenting a market. However we believe a needs based segmentation is the optimal approach. Essentially this gives the customers what they want, a product that is tailored to their specific needs.
Focusing on the customers needs has many benefits, such as:
- Helping to create a stronger brand image that is applicable to the different types of customers that exist
- Strengthen customer relationships
- Support development of micro marketing strategies so that resources can be used appropriately ensuring the best return on investment
Market Access, pricing and reimbursement: Price is another key decision that has to be made prior to product launch.
Pricing research will seek to identify:
- Whether or not the assumed product positioning is correct
- How much extra ‘value’ is required to offset the likely price premium
- Or conversely how much price incentive needs to be offered to compensate for a ‘me-too’ product or a product that offers few advantages
- If there are any emerging changes in the market that will change the frame of reference, i.e. a line extension to an existing product may affect the current treatment algorithm.
However pricing research can often fail to deliver any true guidance as to what may be the optimal price for a brand. This is mostly because pricing research is frequently conducted amongst the wrong type of respondent and sometimes there is too much dependence on quantitative research in isolation.
Pricing research should always target those whose opinions are most worth hearing i.e. those who are involved in making purchasing decisions, such as payors/ purchasers, pharmacists etc. A GP or secondary care specialist is likely be more focused on patient care than cost therefore their opinion is going to be more perceptually based rather than based on a true understanding of current prices.
To provide a fuller picture there is a need to dovetail any quantitative research with more sensitive qualitative research, which will look at the subtleties that inform price. Depending on the market it may be more appropriate to solely focus on qualitative research as the universe sizes may not be available to quantitatively assess the market.
Communications research: When referring to ‘communications’ research it is important to realise that a whole raft of different research activities can be included under this umbrella term. Communications research can comprise of message testing/detail aid testing, concept testing, logo testing, to name a few.
For all communications research, qualitative research plays a vital role. Not only will it ensure that the materials are portraying the right brand image but it will also sift out anything that is not working prior to being tested quantitatively.
One of the main issues with quantitatively testing communications research is overcoming the attitudes of those who do not feel that this type of research can be conducted quantitatively. Many regard this as being in the remit of exploratory research only.
Quantitatively testing materials has many benefits, such as:
- Objectively assess amongst a larger audience how well the materials are communicating the brand ‘essence’
- Identify if there is a need for further refinement
- Pin point any ‘winning’ concepts/ logos.
Since the advent of the internet a quantitative assessment of materials can now provide much more brand sensitive insights. Advances in internet software means that the experience is a lot more interactive for the respondent. This also means that we get a lot more out in terms of depth of analysis, for example we can pin point exactly what it is about an ad that respondents like or dislike. Coupled with the use of more creative qualitative techniques, quantitatively assessing materials goes far beyond providing a set of numbers.
Brand Tracking: Robustly measuring the impact of marketing activities will confirm whether or not brand equity is translating into sales. Brand tracking also goes some way to supplement the gaps left by IMS sales data.
What’s important with brand tracking is to avoid simply reporting on what’s currently happening it terms of awareness and usage data. It is essential with brand tracking research to breakdown what is happening into clear diagnostic components, supported by the use of qualitative and quantitative research techniques. This will ensure that the research provides a detailed picture of what exactly is going on, which will help understand what this means for the brand and where the brand can go next.
Brand tracking will essentially seek to identify:
- To what extent customers value the brand from not only a rational/ behavioral view point but an emotional perspective
- Level of attachment with the brand
- The brands key points of differentiation
- Areas where further work is needed
- What associations and emotional roles are relevant to the brand and to the market
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