on O- MARKETING eee SOCIETY OF PAKISTAN QUARTER NO 03 / 2016 Official Newsletter of Marketing Research Society of Pakistan } eEpior's note Following up on the success of the maiden issue, Marketing Research Society of Pakistan ( MRSP ) proualy presents the secondissue of Research Focus. Ittook alittle while coming but, lam sure the readers wil fnd it worth the wait due to the variety and depth of the informative and insightful articles that our valued members have contributed forthisissue. There are some very interesting Technical Aticles presented in thisissue. One borrowed from an international source while the others written by our own research experts. | eamestly request our valued readers and fellow researchers to keep contributing more articles and informative trivia in order tomake thise.zine more and more interesting for our readers Afzal Hassan Editor in Chief Quote contributed by Ahmer Siddiqui (Market Researcher) Research is about engaging in a conversation with a brand, - Matthew Rhodes dA? Ri MRSP election and selection of new office bearers Following to MRSP 3rd annual general meeting held on 24th March the newly elected council had selected thei office bearers for the current termas follows einen Bocors Executive Council Members 4 President: Syed Ali Moazzam 1.AtifRafique 2Vice President: Qasim Mumlaz _2.Mohtashim Abbasi 3.Muhammad Shehzad 3.General Secretary: Haris Rasheed 4 Treasures: Rifat Sabzwari 4,Sibghatulla Hussaini 5,Usman Azhar Sheikh Officially he new office bearers have taken the charge of al society matters and have had met number of times since took over to discuss ‘new initiatives and ongoing issues. | congratulate the new council and office bearers and request you to join me in giving them a warm welcome, Last but not least, On behalf ofthe newiy elected council members| wanted to give a huge thanks to outgoing executive councils members for their time, dedication, new initiatives and the job aocomplished during the tenure. We wish you all the very best in your future endeavors and we look fonward to your ongoing involvementin MRPS. Haris Rasheed General Secretary >Technical Articles Outdoor media historically has been a grey area, not any more. Outdoor medias the second largest media after television in Pakistan. However, it was alwe believed to be a grey area, specifically for advertisers’ questions like why, what, & where. Many a times | personally heard answers from outdoor media experts and owners, or even planners and buyers that this certain site is good because itis on such and such road where there is high traffic eto. etc. When confronted wih questions lke trafic count, profile of commuters on the road, or the average number of people per vehicle etc. you would seldom get any ‘meaningful replies as there usually is no such information available. Developing Real Time Outdoor Media This lack of erica information spurred us to develop a better understanding ofthe outdoor media business and also help our clients make better utilization oftheir advertising budgets. We slarted off with conducting real ime outdoor media tracking for our clients. Qutdoor media tracking is a tool that outdoor spenders use heavily to insure that their media plans and spent are rolled out on the sites agreed with the agencies and fr the duration of display decided Inquite a few cases keyissvein the industry was advertiser losing visibly ue to their advertised message being replaced by the vendor with another brand or some poitica party, without their knowledge. Historically outdoor media tracking is done by placing a newspaper infront of the camera and taking picture ofthe board This outdated mode of racking had many flaws, the image of the board in background is in majoriy”cases blued, there are chances of photo shop of the image as well, and no GPS: Coordinates are tagged tothe image and so on Alltheseisues were addressed by developing scientifically designed capable of performing real time outdoor media tracking through an android app solution which is temper free and collects GPS coordinates of the advertised site with its crystal clear image with date and time stamps. The mageis automatically populated on Google map with the help of the automated geo tag location received on the server. The different time stamps ftom cloud server, mobile device ‘and network time makes it fool proof method of ‘outdoor media tracking. Conducting Outdoor Media Census For the fist time in Pakistan a market research ‘agency conducted a census of billboards forthe Pakistani advertising industry. The census was conducted in Karachi, Lahore, Rawalpindi, Islamabad, Faisalabad and Multan. The purpose ofthe census was to establish the universe ofthe boards, understand the different structures that are present across these diferent cities and Create an inventory for the clients. Once the census was completed we publically shared the census data with ll cients and agencies. For the fist ime information was made availabe to the Client of total inventory across diferent roads of the top 5 cities. Karachi topped the numbers in terms of volume, whereas Lahore had the most valuable sites, lesser in number but lot more expensive than Karachi Launching The Outdoor Media Ad Ex: One need fulfled creates another and leads to development of a new product. Now that the lients got the numbers of the outdoor media assetsin the market, itwas essential to know the worth of each type of asset across different roads, thet speci locations ete. Also another need was to Keep an eye who was spending how ‘much and where and when. This lead to the launch of Outdoor Media Ad Ex. @ Outdoor Mecia Adex is @ measure of the spent by differentadvertisers on outdoor media, Rates of each and every site are collected from different outdoor media agencies and in some cases big vendors from each ofthe cities. They are then averaged out and applied to each and every site. This gives us the total value of ‘outdoor media industry assets which are valued al approximately Rs ‘6 billon a month for top 5 cities. Out of this the total advertised value averages around 866 milion a month with an average of 65% of outdoor media that was used for advertising. 35% remains vacant or is displaying Tolet signs. Fashion/Apparel is the highest spending category on outdoor media with annual spends of more than 2 2bilionn top 5 cities followed by Telecom spending approximately 824 milion. Unilever Pakistanis the biggest single outdoor spender in the industyintop cites. Thisis commonly known as return on investment on the marketing spent on outdoor, Whereas precise information on howmuch value specific outdoor campaign was able to create for a specific brandis very dificult on any media, the best measure is to calculate the number of impressions or in other words eyeballs an ‘outdoor was able to capture, and per eyeball cost foran outdoor campaign. Moreover what worked and what did not workin a campaign, whatwasit that captured the attenton in 4 to 5 second window that an advertiser has on outdoor of a passing by car ora motorcycle The ROI calculation is a scientific model that takes in to account trafic count, exposure time, views generated, and recall created as well as {quantifying the major outdoor elements noticed Summing tall up new product development I believe is brilianty explained by Seth Godin ‘Dont find customers for your products, find products for your customers’. The art of new product developmentinvolves finding the market gaps and developing products that can plug th sees. syed Ali Moazzam CEO Winning SolutionsMA\ }= RESEARCH SOCIETY OF PAKISTAN Technical Articles THE NEED TO MEASURE THE LIVING STANDARDS OF PAKISTANIS The core ob ofall marketers sto understand consumers and their needs and motivations in terms of product usage and brand preference. A primary starting point for such analyses is to Understand various segments of the population in terms of their affordability. Therefore, to define and target various segments of the society based on their total spending power or affordability or standard oflvingis abasicneed ofall marketers. Butwhat does standard of living referto? Standard of lving refers tothe level of wealth, comfort, material goods and necessities available toa certain consumer group. Almost every country in the world has some kind of a consumer classification system which is used as the common currency by all advertisers, research and communication agencies and in many cases, the governmentand social sectoras wel. Having common currency is important for a number of reasons, Imagine if every company and agency used a different system; a) how would surveys be compared or cross analyzed?, b) how would communication agencies interpret a brief?, c) how would the market be sized by affordabilty for sampling or projection purposes? You might be thinking "Why can we not simply ask - what is yourincome?" Wealth, at an individual or household level can be predicted through income, However, inquiring about income has various drawbacks such as the interviewee may not know the income or may not be willing to divulge it. In fact after decades of survey research in Pakistan, ithas been established that over 20% of the sample in any given survey choose not to respond to this question Therefore, itis advisable to use some other factors to establish the living standard ofa household or an individual. Hence, there is an inherent need to have a uniform system of ctassfication which all advertisers or agencies use as the common currency. Having a common currency is helpful in ensuring that everyone is. talking aboutthe same target audience. ‘So how are we currently measuring the standard of living in Pakistan? At the initiative of the Pakistan Advertisers Society - in 1998 Aftab Associates developed the first consumer classification system or SEC, which is used as the common currency till date in Pakistan. This classification was developed based on large-scale consumer survey. The two variables used to determine the SEC ofan individual are education and occupation ofthe chief wage eamer. So how are we currently measuring the standard of living in Pakistan? At the initiative of the Pakistan Advertisers Society - in 1998 Aftab Associates developed the first consumer classification system or SEC, which is used as the common currency till date in Pakistan. This classification was developed based on large-scale consumer survey. The two variables used to determine the SEC ofan Why do we need to move from SEC toL SM classification? (Over the years occupation categories have evolved. The shopkeeper class has expanded, some occupation categories have shrunk. There is also the issve that women or young people are sometimes not very clear on the scale of the business or details of employment of the chief wage earner, Therefore, following developments inthis area elsewhere we in Pakistan felthe need o substitute the occupation variable with more tangible owned items suchas veicles,eletronicdevies and white oods, etc. Inaditon, we curently have two separate systems of Urban and Rural SEC. Due to ‘massive urbanization it is more appropriate to have one uniform currency forthe entire country. With this background, Pakistan Advertisers Society again took the initiative of updating this system. Aftab Associates has again been entrusted withthe task of moving the common currency from SEC to LSM. Alarge scale national survey covering over 100 district i being fielded to develop tis new system which will be rolled out later this year Quratulain Ibrahim Afiab AssociatesTechnical Articles MARKETING a SOCIETY OF PAKISTAN Best practices for brands adapting to the omnichannel consumer decision journey Article Abstract The author discusses best practices for brands looking to optimize the on- and offline shopping experience. Editor's note: Mini Kalivianakis is director of client solutions at research fim SKIM Europe, Rotterdam. Marketers working in traditional retall have decades of proven insightto fallback on. Buttoday, sales are increasingly migrating to online retail environments that are less mature and ate more technically-driven and these environments are seldom designed to effectively lead the customer through the purchase decision journey na satisfying way. Knowingthattimeis extremely imitedin the real world of e-commerce, the sales process offers very litle room for error. must be short, sweet and effectively optimized for the digital shelf. But what does an optimized online environment looklike? The newness of the online shopping world means that marketers and researchers have litle in the way of established best practices to fall back on, In order to understand and optimize for online ‘consumer decision behavior, our team performed an analysis of choice behavior in online sales channels using virtual online shopping environments that mimic Web sites and mobile apps such Amazon.com and the Amazon mobile app. Simulations alow marketing researchers to test attributes such as product ranking, rating scores, imagery, product description and price. The results of this study revealed valuable techniques for optimizing e-tal environments, thereby making the online shopping experience most effective for shoppers and brands. Best practices that were found include boosting search positioning (particulary for mobile); understanding how sorting and online reviews can alter the compettive environment; and optimizing visualsand claims for the virtual shel You might be thinking "Why can we not simply ask - what is your income?" Consumers have different reasons for shopping online vs. ofline but both channels are key to understanding the comprehensive, modern-day decision journey. Consumers view online and offline channels as complementary paths, so both should be given equal importance, Research shows that consumers shop offine when they have immediate needs, 2 desire to experience the product before purchasing it and when the process is deemed more convenient (eq. theyre already inside or near the store). Alternatively, they shop online when they need to save time, wish to see a wider selection of products or when itis deemed more convenient. Onaverage, consumers consul four dfferentsources before making a purchase. The most important sourceis online searches, followed by family and fiends; product information at specialty retailers; and user-generated content, such as videos on YouTube and product reviews. That said one-third of consumers makea decision on which brand and product to buy at their first touchpoint. This is the zero moment of tuth (2MOT) a term introduced by Google in 2011 that refers to the investigation that is conducted by a consumer online about a product before taking action (ie., searching for mobile reviews before making a purchase). The ZMOT means it's vital that consumers find your product during their fst exploration on the Internet. The importance of search position Google investigated the importance of search output in 2004 and in 2014 and found thatin 2014 the topmost organiclistng i stil clicked onmost often at 328 percent. However, organiclistings loweron the lst (especial in positions two to four) re clicked on more often in 2014 than in 2004. This shows that people are viewing more search result stings during a single search session. However, they are spending less time viewing each, scanning search results more quickly. higher search position means increased visibility of your brand and product, as well as greater consumer consideration for the product. As the ranking position in the search list decreases, the probability of that product being chosen also decreases. A drop in positon from one to 10 leads toa decrease in probability of choice from 12percent to4 percent. tisimportan to ensure that your product or brand ranks atleastamong the topfiveto increase the probability of sale, To be continued...‘a MARKETING EE © SOCIETY OF PAKISTAN Technical Articles Best practices for brands adapting to the omnichannel consumer decision journey Figure 1 Being on top of search is even more important on a mobile device. People have a short attention span on mobile and mobile devices display a limited number of products at once. The nature of the smaller screen size reduces visibility, Consumer behavior on a computer with a big screen and a mouse is different from consumers using a mobile device with touch-and- swipe. This becomes increasingly important as mobile retail traffic Continues to exceed online retal traffic, Teams should plan how a ‘product wll appear on a desktop and on mobile. Sorting changes the competitive environment Consumer choices are al competitive set. In many cases how the product compares to the competition is more important than how the product stands on its own merits. In an offine channel, the brand manager knows that the competitive set remains fairly proportional to the physical size of the retail store. However, in an online environment, the competitive set is potentially much larger and the direct competitive context changes. according tothe attributes that products are sorted by. Each time a ‘consumer sorts or filters search results on a certain atribute, the system introduces a new compeiiive set to choose from, in a different order. This change to the competitive set could have an uplifting or detrimental effect, depending on the comparison. Our virtual CPG shopper studies revealed that without sorting, products that rank first on the search list are chosen an average of 20 percent. After being sorted on price, the percentage chosen for the top-ranked product changes to 40 percent. Alternatively, after sorting on product ratings, the first-ranked product is chosen 30, percent of the time. This shows us that consumers are wiling to accept the suggestions and recommendations provided by the channel, regardless of product. Interestingly, nce the user carries out an action (such as sorting or filtering), i's immediately more likely that the user will make a decision based on that action. It's important for brand managers to ensure that their products are positioned optimally especially in the context of sorting in order to be part of the consumer's consideration set Products showing clear benefits have a higher probability of choice Today, as consumers spend less time looking at each item using mobile devices with fast vertical scroling it's imperative for brands, to be catchy enough to grab the consumers attention. Thankfully, there's also more freedom to play with creative imagery online ‘compared to brick and mortar stores. > For example, take a picture ofa tub ofice cream. Itdoesn't need to be shown as its viewed in the supermarket, sealed and packed. Instead, one can display an opened tub of ice cream, showing consumers what's on the inside. Callous like ‘new’ can be used to capture the consumer's attention. And claims, key features and calls toactonthatare normally used on-packina traditional store can now be displayed more prominently together with the product to entice the consumerto make the purchase. Good reviews command ahigher price Price-comparison shopping engines are getting more and more popular as consumers want to know where they can buy a particular item forthe lowest price. This can give producers and retailers the opportunity to attract new consumers and to go head-to-head againstthe competition, However, one has to be careful to not end up ina price battle, The best way to avoid ths is by getting high rating scores for your products. Researchers found that as the rating scores of the product increase, the brand is able to charge an increasingly higher price for the product while maintaining market share. In fact, reviews were the strongest driver of higher pricing power for products, Figure 2 The exact percentage by which prices can be increased differs between categories but researchers found that with a one-point inorease on the ratings score of a produet, the brand was able to raise prices by about 5 to 10 percent. This finding is important because brand managers might not have contol over the design of the online retail store or the sorting citeria, However, they ae able to influence the review or ratings of their products by ensuring that they establish and maintain a good connection with their consumers. Ultimately, it's important that all channels work together to make the consumer joumey positive for both the brand and the shopper. Marketers often work independently for different channels and lack the benefits found in collaboration, By working together, they can create an omnichannel experience that leads tomoresales. 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