dr DIETER KORCZAK ESOMAR

1. VI KONFERENCJA EWALUACYJNA WARSZAWA, 13-14.12.2010 dr DIETER KORCZAK ESOMAR Współczesne trendy w badaniach społecznych i marketingowych

3. ABOUT ESOMAR ESOMAR is the world organisation for enabling better research into markets, consumers and societies ESOMAR’s aim is to promote the value of market and opinion research by illuminating real issues and bringing about effective decision-making.

4. LEADING THE WAY ESOMAR seeks to gather insight and promote debate on how market research can lead the way to a more ethical, responsible and creative society. Facilitating Knowledge Exchange Promoting Best Practice Developing Talent Monitoring Legislation

5. GLOBAL MEMBERSHIP BREAKDOWN

6. Growth rate adjusted for inflation Exchange rate fluctuations eliminated. IMF inflation rates used to determine net growth. THE HEADLINES September 2010 THE WORLD ASSOCIATION FOR MARKET RESEARCH www.esomar.org Global industry falls by 4.6% in 2009 whilst North America faced a 2nd year of net declines, and despite hopes that emerging markets would weather the storm relatively well, falls also occurred in Asia Pacific, Latin America, the Middle East and Africa. These declines, however, belie an array of scattered results, and the report looks beyond these headline figures to discover the varied challenges and opportunities in research across borders and disciplines; and how the industry needs to change if it is to seize the opportunities that current times present. The latest ESOMAR industry study Global Market Research 2010 revealsthe first decline in worldwide research turnover since ESOMAR began measuring the global market in 1988. The report shows global turnover falling to US $28.9 billion in 2009, representing a year-on-year decline of 3.7% and 4.6% after adjustment for inflation; a significant drop but in line with expectations given the economic downturn. Europe was the worst-affected region in 2009;

7. HOW IT BREAKS DOWNMarket Size 2009: US $28,945 million ESOMAR estimates. Rounded figures presented. Percentage point changes in market share compared to 2008 are provided between brackets

8. SOURCES OF RESEARCH TURNOVER • Demand from the manufacturing industries is by far the largest • With FMCG clients in particular accounting for 25% of global turnover, and pharmaceutical and healthcare clients a further 12%

9. SPEND BY RESEARCH DESIGN • The flexibility of conducting research as and when you need it means ad hoc research continues to take the ‘lion’s share’ when turnover is broken down by research design

10. PREDICTIONS FOR 2010A return to growth in most countries • The majority of countries providing forecasts for 2009 anticipate a return to growth in research turnover this year. • Latin America and Asia Pacific were very positive about 2010, with fifteen countries forecasting double-digit growth • This positive prediction is supported by a return to growth at many of the largest research agencies 2010 Weighted predictions based on turnover

11. GLOBAL MARKET RESEARCH REPORTOnline research continues to grow Quantitative = 80% Qualitative = 13% Other = 7%

12. GLOBAL MARKET RESEARCH REPORTNew chapters provide expert commentary and analysis

13. GLOBAL PRICES STUDY 2010 The Prices Study enables research providers and buyers to benchmark the cost of market research projects It indicates the relative pricing of different types of projects by methodology, country and region  The 2010 Study will offer an opportunity to explore the impact that the current unprecedented market conditions are having on global pricing

14. Monitoring Legislation New Public Affairs Programme Data Protection New technologies and market Research Applicable law

15. TRENDS & CHALLENGES Draft guidelines to distinguish other activities from MR which faces growing competition from new information providers Promote alignment in standards as client concern about quality growing especially in online research Promote ICC/ESOMAR Code adoption to strengthen self regulation & counter falling respondent participation & lack of trust Represent MR to legislative bodies eg in Europe as European Commission reviews data privacy directive and FTC debates privacy issues incl. behavioural targeting Consult & align key stakeholders to create consensus for messages to regulators Accelerate initiatives to promote credibility and transparency to meet rapid change in environment

16. Trends & Challenges Review of EU Data Protection Directive Quality Concerns – speed versus price Self- regulation - Falling respondent participation & issues about privacy strengthen the need to demonstrate effective self regulation based on the ICC/ESOMAR Code whilst recognising that adequate resources are required industry-wide. Cross-border exchanges

17. PROFESSIONAL STANDARDS To provide authoritative guidance in professional standards which is applicable worldwide, credible, transparent and forward-looking. To provide credible representation for the international industry regarding legislative threats and opportunities, working with other associations and stakeholders.

18. PROFESSIONAL STANDARDSNew ICC/ESOMAR International Code Takes into account recent developments in technology and data protection issues and clearly promotes the principles of ethical and professional conduct to legislators, the public and researchers on a global basis. It is the only global MR code, is adopted by all ESOMAR members and enforced by the Professional Standards Committee through Disciplinary Procedures.

19. PROFESSIONAL STANDARDSWhy a global Code of standards? • Ensure guidance is up to-date and in line with current business practice • Principles/ethical & professional conduct not performance standards • Global – national guidelines for extra local requirements • Strengthen section on privacy to state obligations more explicitly • Differentiate / build client trust • Confidence and credibility • Simplify and tailor messages to target group • Create a common set of cross-border principles – essential for self-regulation

20. Aligning key stakeholders to promote revised ICC/ESOMAR Code Strengthening international self regulation with a focus on Europe & emerging markets THROUGH Creating an improved platform to promote professional standards & defend MR industry from undue restriction Updating & promotingguidelines

21. Online migration – driven by cost • Penetration? Representation? • Validity? Duplication? Web 1.0 • Blogs, chatrooms, wikis • Need for MR guidance, not Control • Web scraping…..surreptitious! • Comparability ? Web 2.0 • Skype • Communities • Mobility • The “collective” – not the “individual” Web 3.0 The Internet has been the “muse” of research…..

22. Research is now about….. and no longer…… L T istening elling I E xtracting nforming E R ngaging ecycling

23. Old, “Research-Centric” Rules: WE decide WHEN we will contact you WE decide HOW we will contact you WE decide WHAT questions we want answered WEdon’t care if you don’t have time If you don’t answer we’ll just keep calling !! “The way we were….”

24. Whether we like it or not….P.E.S.T. analysis – Politics, Economics, Society, Technology Sampling / contact has & will become increasingly difficult “Traditional” response rates have & will continue to decline Research increasingly needs only to be “good enough” Penetration / usage of the internet continues to increase globally “New” (& mobile) communications are becoming increasingly popular

25. New, “Respondent-Centric” Rules: We’ll decide if/when you can contact us We’ll decide how you can contact us We’ll give you what answers we want to give We don’t have a lot of time, so make it brief I may or may not be truthful We expect something in return “The way it is now….”

26. The “paradigm shift” is here….. The Age of Questioning Respondents Panels The Age of Listening MROC’s

27. QUALITY CRITERIATenure Length of Questionnaire Stimulus Duplication “Good Taste” Data privacy ..requiring a whole new set of Quality criteria& facilitating a whole new suite of applications….. • APPLICATIONSI.R.C’s • Co-creation • Netnography • Neuromarketing • “Me to We” • Data privacy!!

28. Evaluation of market research results is still a big challenge ! It can be done by • Econometrics • Customer satisfaction research • Comparison Forecast - result • Long-term panel analysis

29. Customer Satisfaction ProgrammeThe Key determinants What are the Programme objectives? Who shall be measured? What measures are needed? How do we source the measures? How frequently do we measure? How do we leverage the organisation natural point of contacts to conduct CS programme? Online/Offline Data Collection? What do we deliver internally and to who? Figure 18.1 Market research Handbook pg 353

30. The High Impact Research ArticleBy Ian Lewis There are four areas of change needed to transform market research: 1. The management contract 2. The work, 3. The capabilities and 4. The execution

31. 1. The way we work • Creating a management contract is breaking new ground, and will be challenging. • Think of it as a continuous improvement process for how MR will operate and be evaluated.

32. 2. What we work on Driving business impact for strategic issues: • Embracing listening • Redefining how we work with research firms “I spend too much time and money researching tactical issues” is a frequent MR complaint

33. 3. Capabilities Talent will need to be evaluated against the evolving profile for market researchers:

34. 4. Relentless execution Research must identify rich insights that drive impact by: • Innovating and being open to disruptive change • Working collaboratively and integrating knowledge from multiple sources • Understanding the business and the company’s capabilities • Communicating for and provoking impact, utilising storytelling • Always raising the bar on performance.

35. Thank you !