Developments in television audience rameasurement

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DEVELOPMENTS IN TELEVISION AUDIENCE RAMEASUREMENT
Nielsen Media Research, a subsidiary of A.C. Nielsen, owned by VNU, based in the Netherlands (see Table 5.1) is the ratings company whose audience measurements have for decades served as the benchmark for advertising-supported television. In 2006, in the US, Nielsen launched a set of national television ratings that take into account programmers replayed on digital videorecorders (DVRs) such as TiVo. The technical hurdles are formidable. Nielsen once made do with devices that checked to which channel a television dial was tuned. But its systems became overwhelmed by DVRs, which allow viewers to watch programmers when they please and to skip past commercials. Time-sensitive advertisers, such as film studios, want more precise data concerning viewers.

No longer is knowledge that a particular programmer has been replayed sufficient. Advertisers want details as to when viewers watched as well as whether or not the viewer skipped over their commercial. To solve the problem, Nielsen invested more than US$10m (£5.6m) in a new system to overhaul the way it collects data. The company convinced television stations to coat their signals with distinct audio and video signals at their broadcast source. Nielsen's new Active/Passive Meter picks up the code when the television is playing and then cross-checks it against a database of programming schedules. However, industry's reaction has been cautious. Some media buyers, such as Magna Global, have ignored the new DVR viewer measurements, largely out of scepticism whether DVR viewers actually watch the commercials. That has prompted the six US broadcast networks to fight back, by using Nielsen data to argue that DVRs have led to increased viewing and advertising exposure. Such debates are likely to increase as Nielsen attempts to measure video-on-demand viewing in 2006 and, eventually, tackles iPods, mobile phones and other devices.

MARKETING RESEARCH'S STRATEGIC CONTRIBUTION TO THE EXPANSION OF CARBONATED SOFT DRINKS MARKETS IN EMERGING ECONOMIES International strategic market expansion Spain C A S E S T U D Y A.G. Barr, the UK's leading independent branded carbonated soft drinks (CSD) manufacturer, founded in Falkirk, Scotland, in 1875, has its headquarters in Glasgow. It has three UK plants with about 950 employees producing its Irn-Bru soft drink, introduced in 1901, which, has about 5 per cent of the UK CSD market. Despite tough domestic competition, Irn-Bru is Scotland's largest-selling single flavoured CSD with a market share value as recorded by A.C. Nielsen Scantrak in excess of 20 per cent of total CSD in Scotland in the year 2004-05. It is the third best-selling soft drink in the UK, after Coca-Cola and Pepsi, outselling high-profile brands such as Tango, Lilt, Dr Pepper, Sprite and 7-up. In the year to January 2005 Barr's turnover was £127.2m (US$228m: €186m), an increase of 3 per cent on the previous year and pre-profits of £15.6m (US$28m: €23m), an increase of 13 per cent (A.G. Barr, 2005).

INTERNATIONAL STRATEGIC MARKET EXPANSION

In the late 1980s Barr considered international expansion options within Europe, concentrating on France, Germany and the Benelux countries. However, marketing research showed that the MNCs Coca-Cola and Pepsi dominated these mature markets, making competition fierce and margins tight. Consequently, Barr looked to other emerging countries, in particular to Russia, which marketing research showed had a large population, with growing prosperity and a rising standard of living, driving a growing demand for consumer goods. Barr uses different market entry strategies to match the level of perceived risk involved. In high-risk economies preference is given to exporting, with no production presence in the local economy. Orders are not actively pursued in these markets and business tends to be ad hoc. In other markets, a market attractiveness model is used which weighs scores for each market based on population, GNP, soft drink market size, language barriers, bureaucracy, corruption index, etc. Investment decisions are based on market score, using the model and Irn Bru's test-marketing performance in the market. Interestingly, the market attractiveness model results in many underdeveloped countries such as Russia scoring much higher than

SPAIN

Barr has been exporting Irn-Bru to Spain for the past thirty years predominantly selling in the tourist areas such as the Costas, the Balearic Islands and the Canary Islands. It operates through two local bottlers - one in Mallorca and one in Zaragoza. Sales of Irn-Bru have remained buoyant with British tourists and, encouragingly, research has shown that the product is also popular among Spanish consumers, so channels of distribution targeted at the local market are being developed.02

1. Consider the role of marketing research in determining a successful promotional strategy for to pursue for the Irn Bru brand in emerging economies. Marketing research is used to support marketing decision making by reducing risk. It does not replace marketing management decision making but rather provides deeper understanding of consumer and trade perceptions. Armed with marketing research findings, management should make better decisions.

2. What are the difficulties in transposing marketing research findings from one country to another? In the case discussed, the promotional tactics used in the UK were misunderstood when introduced in Russia. Marketing research showed it was necessary to develop a brand image and associated promotional message that related to Russian culture and humour. Marketing research was used to test the acceptability of alternative promotional concepts, with the campaign based on a bird creature wearing Russian-type boots being particularly favoured. Similar marketing research in Poland showed it preferable to use promotion that relates to local culture rather than import that used in the UK.

3. What are the challenges of undertaking marketing research in international markets? Decisions have to be made regarding the selection of the marketing research agency including whether to use a local agency or a subsidiary of an international marketing research agency. In the case discussed, marketing research agencies are encouraged to work closely with the advertising agency to develop the creative element of the proposed promotion.

Reference no: EM131038157

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