Tag Archives: TMRE Live 2009

TMRE General Session: Toyota: Continuous Improvement Through Research

Toyota: Continuous Improvement Through Research
Steven Sturm, Group Vice President, Americas Strategic Research & Planning and Corporate Communications, Toyota Motor North America, Inc.

Toyota runs their business according to the Toyota Way which relies on two principles:
-Continuous improvement
-respect for people

Toyota entered the US car market over 50 years ago. Their first car, Toyopet Crown, failed; it did not meet the quality or expectations of the US customer. This became the stimulus to meet more of the Americans needs

Toyota is the #1 brand in the US, and Lexus is the #1 luxury brand. Toyota is expecting affluent homes to grow over the next few years.

Lexus: best car and best ownership experience. So they then determined they’d sell Lexuses in their own dealer networks, and they would treated each customer as if they were a guest in their own home. Of 1,600 dealers that applied to be Lexus dealers at the beginning, only 80 were selected.

The #1 selling luxury brand in the US is the Lexus RX.

Toyota’s Concept of Sustainability
Core of what Toyota does is to have respect for people and the environment. They’ve capitalized on this with the Toyota Prius.

It has two power sources: gas engine and electric motor. A computer chooses which to use for maximum use, and the batter never needs recharged because it’s automatically recharged when the car breaks. It went on sale in 1997, and was not a success. They began using a family demo program. They did real road testing and got feedback directly from the customer. This also created buzz. Families felt that they were participating in a breakthrough, and also were getting attention.

People needed to be educated on how the Prius worked, as the technology for the car was unknown. Early adopters began to get their information about the Prius online. It was launched in 2000, and they exceeded their sales expectations from that year on. Media coverage, partnerships, and government incentives to purchase the car have since followed.

TMRE Conference Chair: Trend Surfing: Creating Waves of Change

Trend Surfing: Creating Waves of Change
Kelley Styring, Principal, Insight Farm, Event Chairwoman

DSC01122 by you.

How can we grow market research? There’s a dimension missing in market research, and sometimes when you damage something you learn. Kelley’s been creating intense personal experience that’s changed the lense through which she looks at the industry. Last year, Styring presented about what people carry around in their car. Cars are now a habitat, and to do this study, she spent 30 days in a car traveling around to find out more.

She embrased a the idea that bias can contaminate one’s work. When she lived the experience, she understood more of what the consumers were talking about.

Things are happening very quickly on the technology and social network side, and it’s very important to understand what’s going on. Styring is now looking at Twitter.

How does one slice all of the information you can gather on Twitter? In market research, you don’t really know what you’re looking for. You’ve got # signs some are using in Twitter (#TMRE for this conference!), which can be empirical learning, as well as theoretical panels. You can learn about anything. All of this information is collected then graphic and descriptive analysis reveal innovation and insight opportunities. Embrace your inner bias.

TMRE 2009: Decision Pathway Modeling: Understanding How Your Customers Get To Yes

Decision Pathway Modeling: Understanding How Your Customers Get To Yes
Mike Mabey, CMI
Anne Hale, Pfizer, Inc.

For Pharma, key metrics are adoption (will a physician prescribe this product), patient adherence and compliance, intent to fill and prescribe, brand perception and brand loyalty. Many drugs will go off patent, and the patients will still want to continue takig the name brand product.
Decision pathway modeling is structural equation modeling at the practice level.
The structural model, using It combines factor analysis and regression analysis, shows new strategy. It shows how constructs interrelate, such as quality service price value satisfaction and loyalty. What strategies can you put together to make the best product?

Key steps to pathway modeling:
1. Identify brand/business objectives ‘ entire team must be on same page for results
2. Build a hypothesized brand model ‘ they started small to find out ‘the big idea,’ created a hypnotized patient model: ad awareness, condition awareness, information seeking, symptom severity, impact on activities, diagnosed with co-morbid condition, pill burden, length of relationship with physician ‘ these lead to the intent to consult with a doctor (which is not the end point, jus the first step)
3. Drafting the survey ‘ critical, best price is validated multi-item scales
4. Data Collection and Model Building ‘ sample should match business objectives
5. Model interpretation and result read-out ‘ larger than the path coefficient, the stronger the relationship

The only way they could increase the intent to prescribe, they had to go back to the inquiries from the patients.

Advantages of DPM
‘ Can be used on a wade rage of models
‘ Allows brand teams to leverage existing knowledge in drafting the hypothesized models
‘ Caputured indirect effects
‘ Permits simple or complex models

DPM can ‘
-Maps your customers entire journey, from the beginning to the end how you can influence customer behaviors
-Helps your prioritize resources,
- Revels impact on key marketing elements
-Help you understand the impact of early events in the decision pathway impact on eventual actions and outcomes

TMRE 2009: Measuring and Improving the Long-term Impact from Marketing

Measuring and Improving the Long-term Impact from Marketingfor Fast Moving Consumer Goods
Rick Abens, Conagra Foods

Customer lifetime value (CLV) is the value to the companies see on the P&L of measuring marketing efforts over time. Conagra Foods was trying to link marketing to P&L. CLV is a forward looking metric, it’s value is measured starting now until the end of the customers lifetime.

What’s the value have for teh entire supply chain for ConAgra foods? Their goals is to measure and improve marketing and drive long-term customer value and loyalty.

The mew Marketing Accountability Standards Board invited many individuals to join in the conversation including finance, marketing, researchers and academics. It was founded to help increase that status of marketing in the boardroom.

Key issues for packaged goods companies
-How do we drive long-term growth with marketing?
-How do we develop customer acquisition and retention marketing strategies that are impactful?
-How do we match the right offers of the most responsive customers?

Standard marketing mix modeling output: total volume and subdivide it into the volumes that are driven into trade, promotion, advertising and baseline.

If you look at the baseline as a function of long-term marketing, you can begin understanding it.

Sources of growth: acquire new customers, retain more customers or increase purchasing size. Many customers are flat lining, new customers equal lost customers and retained customers, includes Healthy Choice, and Maxwell.

-Marketing is not about getting the next incremental sale, it’s more about getting new customers and making them loyal to your brand.
-Understand whether or not your strategies are working.
-Back to targeting, more aggressive media happening every day in the household. Cut some advertising and target the right people. Television is very important.

Creating “Delicious” Research

Carol Fitzgerald of BuzzBack and Amelia Strobel of Kraft gave their story of “Exploring Dimensions of Delicious with Kraft Foods” in the Explor Awards track this afternoon.

The project developed in order to build a corporate theme for Kraft. They wanted to develop a company positioning around the idea of: “make today delicious.”
They wanted to know how they could communicate delicious and whether or not there was an emotional connection to a theme that tied closely to food.
They used a variety of techniques offered by Buzzback and found that delicious is: warm, intimate, and highly positive. They have extended “delicious” throughout their organization and are now sponsoring “Make a Delicious Difference Week” working with two organizations: Feeding America and Save the Children.
Please view the video because every view helps feed the hungry….

April Bell

Explor Awards at TMRE 2009: Running the Olympics Reseach Marathon: An innovative measurement of Multi-Platform Audiences

Media Mix Measurement at the Olympics
Horst Stipp, NBC Universal
David Tice, Knowledge Networks, Inc.

Beijing Summer Olympics Summer 2008 was presented on five cable networks and two broadcast channels. The 2008 Olympics were also on mobile and the internet. There are 52 million unique viewers on the internet and 6.5 million users on mobile. For television, there was 16.4 HH rating.

Advertising and broadcasting rights are very expensive, and it was important that NBC be successful with the Olympics financially. There is no ‘currency-based’ solution to meet NBCU’s needs of measuring the number of end users across the platforms. They wanted have hard numbers in order to sell sponsorship beyond a currency value. There was no definite measurement to capture all of the different platforms viewer numbers in one single source. This was the challenge to NBC, so they turned to the Knowledge Network’s Multimedia Mentor single source methodology as the foundation to measure this.
NBC Universal set out to record numbers on the daily Olympics cumulative watchers, to-date Olympic cumulative, projected total Olympic cumulative, times spent watching the Olympic games, and more.
This system was tested during the NBA in the Finals in June 2008 in preparation for the games later that summer. NBC wanted their sample to consist of 500 Olympic media consumers for each of the 17 days. Interviewed for 23 hours, then went on and compiled them.
All goals for collecting information on the Olympics viewers met or exceeded all goals: 605 people a day, a consumption rate of 33%, Olympic media use rate of 81%, interview length was 16 minutes, and delivered report to NBC on time every day.
How did this help NBC? They saw how media was immediately used. They also saw how people used media out of home, and after the games, they used it as a benchmark for establishing audience duplication across media. NBC Universal also used brand and category specific assessments for Olympic media sponsors and usages.
What they saw: 99% of all people watch Olympics on NBC Networks. Nearly everyone watch the games on TV. Those online or on mobile did not give up on television, they still watch the games on television.
So, now NBC Universal is looking to the 2010 Vancouver Olumpics. Their challenge for this year is getting younger audience to watch the Olympics. Through this tracking, they now know that younger new media users watched more Olympics on TV. The information on media platforms heightened their Olympics.

TMRE Keynote 2009: Crowdsourcing: Unleashing the Power of Crowds to Unveil Rich Insights

Crowdsourcing: Unleashing the Power of Crowds to Unveil Rich Insights
Jeff Howe, Author, Crowdsourcing

In 2005, Jeff Howe sent a story about MySpace to the Village Voice. MySpace had created a culture with musicians, which lead Jeff Howe to follow the Warped Tour to write a column for Wired Magazine. The Tour is about the music, but features a carnival culture. The Warped Tour kids engaged in amazing creativity throughout a summer tour of 30 bands traveling and playing in a different city every day. They published poetry, web design, paintings. None of the kids defined themselves as one certain thing like “musician” or “artist”. The technology was not the story on the tour, it was what they could do with the technology. Their emphasis was on the products and the processes and how they released their creativity.

When Howe wrote this article, the public’s obsession for user generated content was immense, but he realized that people were missing was the larger tectonic shift, which were the underlying dynamics of different shapes and sizes and reality. Howe needed something that would capture not just the media, but all industries. He wanted to find a way to outsource to the crowd. The column, Crowdsoucing, was first published in June 2006. It came into use first with technology, but then branched out. There was a fundamental shift beneath the surface between consumers and producers.

Crowdsourcing was not a strategy designed by academics, instead it was an accident. Two friends came together and created a shirt design business, the designs were voted on by the Internet users. This way, you don’t have to be a designer to be a part of the system, but just like designs. Threadless came about this way. You have to give users tasks that take less than a minute to accomplish. They started this business because they loved people and wanted to share it with other users. It’s a global community, and the shirts are sold to individuals around the world.

A key to Threadless was they get free marketing. Via street teams, users posting images of their shirts, in addition to personal designs from the users. They also see what consumers want. They have an ‘I’d Buy It’ box. They know which shirts will sell. They’ve never had overstock or sold out due to this function.

Another example: stock photos. This is a photo that’s already been commissioned by a person to take, then same photo over and over again for promotional purposes. The creator opened his own site where he uploaded his stock photos, and let others download them as long as they uploaded their own. This popular service exceeded what he could pay to. Bruce charged people to post images, and others began to realize the the value. You could download a picture for $300 or $.25. The model worked. Today it’s known as Getty Images.

The Cardinal Rule of Crowdsoucing is: Ask not what your community can do for you ‘ Ask what You Can Do For Your Community.

One member of the audience posed the question “How can businesses build their own communities to create these items?” Howe responded communities came together because they were being offered something, the crowd was being offered something. For example, if you are a grocery store, give the community a way to see if you have things in stock, give them specific coupons that apply to your users, etc.

Using Neuroscience for Marketing Research

Mark Potts of MindShare and Dr. Andrew Pradeep of NeuroFocus gave an excellent presentation about the process of using neuroscience for marketing research in their workshop presentation titled: Neurological Testing Reveals the Truth of Audience Engagement.

Here are the basics:

Respondents are recruited based on research objectives (as in traditional studies).

Respondents wear a “full cap” on their head with 64 sensors attached. These collect data 2000 times every second. This coupled with eye-tracking is the “data collection” methodology.

Consumers can’t tell us everything they’re sensing. For example, a consumer may look very closely at something on a grocery store aisle that grabs attention but the subconscious areas of the brain don’t “tell” the conscious what they think, feel, etc. But it can, however, be measured through brain activity.

3 metrics are measured directly at the brain.
1) Attention: what are you paying attention to….this is based on the science behind ADD/ADHD clinical diagnosis
2) Emotion: how are you emotionally engaged ….this is based on the science behind mania & phobia clinical diagnosis
3) Memory Retention: what is it that you’re experiencing that activates your memory….this is based on the science behind Alzheimer’s

As with all new technological tools in research, this is not a catch all approach but 3 of the areas where it can be used is when trying to measure:
1. Purchase Intent
2. Novelty
3. Awareness

You can learn more about it by watching one of NeuroFocus’ scientists here:

TMRE Session – Knocking Down Silos to Drive Innovation Momentum

Mike Maddock, Maddock Douglas
Javier Flaim, Maddock Douglas

Mike Maddock begins by stating “You can;t read the label, when you are sitting inside the jar” which many employees find themselves inside. It is important to understand that we all have different perspectives and see things differently. That is why it is important to not throw away ideas.

In the innovation process, Maddock Douglas has a Global Expert Network (GEN) of 6,000 innovators that they can look to for external ideas and innovation. It is not necessary though to have a GEN in order to have external ideas, as long as you are looking outside of the box. The speakers then moved on to an interactive session called the “toothpick” test where attendees had to remove toothpicks from a board in order to create squares. The purpose of the test was to see if anyone asked helped and no one did. The reason why they didn’t ask for help was because before the test Mike mentioned to everyone that they are smart and didn’t need help. This proves that by motivating employees and keeping their spirits up, much more can be done.