Editor's note: Jan Newman is president of The Newman Group, Ltd., a Burlingame, Calif., research firm.
Focus groups have been a popular tool with marketing professionals since the 1960s. Early focus groups or "qualitative research investigations" primarily were directed at discussing concept generation, product positioning or advertising direction. As the techniques for focus groups evolved, so did a broader span of uses. Corporate identity programs, employee evaluations, and product sampling were just a few of the additional agendas for focus group exploration.
As marketing research became more sophisticated, the subtle nuances of conducting focus groups became more apparent. Focus groups could provide actual verbiage for an advertising campaign, check the flow of questions on a quantitative survey and provide a plethora of responses about the categories in question.
While the basic format for focus groups has remained constant, the application has grown and taken on new dimensions. As marketers we should think of new ways of benefiting from the focus group. The following two focus group agendas have been successful with many of our clients. They may add a new dimension of understanding to your product base too!
Satisfied customers or calm before the storm?
Why is it, when things are going well for your products, there is little likelihood of conducting marketing research? Marketing research is frequently used as a troubleshooting mechanism that determines possible sources of dissatisfaction with a product category. Conversely, marketing research should be used also to act as a barometer of customer satisfaction.
One of the easiest methods for gaining an understanding of customer satisfaction is to conduct a series of focus groups, spaced several months apart, with the same respondents. Our organization refers to this type of project as a FocusTrack study. This type of focus group allows the moderator to fully explore each respondent's background, track ongoing media developments and product introductions and learn firsthand how satisfied a customer is with your products.
This technique is especially useful with service organizations such as banks, savings and loans, brokerage houses, mortgage or insurance agencies, or with products that require continued association with the manufacturer's customer service (automobiles, computers).
Charting the life of your customer is another way of determining how your product will succeed in a changing environment. Time doesn't stand still, so developing an ongoing dialogue with selective customers may alert you to events that you might not normally be aware of! Does your product perform the same way after four months as it did when it was brand new? After a year, is your product performing to the industry standards or is it thought of as obsolete due to advances in technology?
What kind of service or maintenance experiences has your customer had after the extended warranty has expired? Answering these questions can help develop a product that will ultimately earn high marks for satisfaction.
During a FocusTrack project on its new housing development, one of our clients gained insightful information toward customer service that helped avoid a consumer revolt. Some information came to light in one of these discussions that enabled the builder to immediately alter several procedures to better meet the needs of its buyers.
Much like quantitative panels that chart the behavior of an individual over time, a focus group series can address issues over time with the added advantage of speaking to people individually or communally. As repeat groups are conducted a comfort level and team spirit usually develops. Respondents often find the dynamics of a group to be the catalyst for their comments. One idea sparks the thought process. The exchange of ideas that occurs in a focus group often validates the respondent's actions and feelings.
A cognitive approach toward providing customer satisfaction will best succeed when a marketer begins to understand the longer term motivations behind a customer's feelings and actions.
Is your competitor researching you?
Due to the increasingly competitive environment in which most products are marketed, more and more marketers are conducting focus groups on their competitors' products. It's quite possible that your competition may sponsor a focus group with your target market. Turn this around and think about conducting focus groups about your competition to learn how the consumer thinks and feels about their products or services.
More often than not, a category investigation about your competition will unveil something new and interesting. Just one idea can be the breakthrough for a successful product launch or marketing campaign. The participating respondents are not required to know who is sponsoring a marketing research project. They can be told that a manufacturer of a specific product or category of products is interested in knowing more about the subject in question. Client anonymity is preserved.
The computer software field is particularly vulnerable to quick changes in market trends. Our clients often discuss new versions of competitive software with a group of target users to determine positives, negatives and modifications for future updated versions of these programs. This format will also generate input to design the next generation of products for their own company.
In the household products category, competitive focus groups are held to determine the level of satisfaction with a competing product, or discuss advertising direction or company image.
A project for a paint company was directed at building brand personalities. A series of questions in a focus group session unveiled an intimate understanding of how people perceived competing paint brands.
Recently our firm worked on a focus group project for a national manufacturer exploring juice drinks. Part of the task was to evaluate advertising placed by their competitors to help gain an understanding of the most important characteristics in selling their products. During the course of this focus group discussion problems were discovered with the verbiage for a competitor's print advertising message. When competitive advertising was reviewed specific product claims in the ads were misinterpreted. Respondents thought that the claim "100 percent natural" meant the drink was "100 percent pure fruit juice." This was not the case. As a result, our client revamped its advertising to avoid any product misrepresentations.
Knowing this vulnerability helped our client position itself successfully in the minds of the consumers.
Due to the rapid turnaround time for most focus group projects, from two to four weeks, as compared to a quantitative project, focus groups can be used to get an initial reading on a new competitive product, an advertising campaign or a modification of an existing product. Focus groups can act as a preliminary screening device for many marketing needs. Whatever the questions, a prompt and timely focus group project can often prevent or minimize future problems.
Yes, you can never know too much about your products or the products of your competition. Stay informed with focus groups and you will have the competitive advantage.