Leveraging the power of market research: arm your sales staff with the right tools and watch your ad sales take off.

LONG BEFORE ASSOCIATIONS AROUND THE COUNTRY BEGAN FEELING THE EFFECTS OF A sluggish advertising market, the publications staff at the 28,000-member Institute of Food Technologists, Chicago, held a brainstorming session on how to jump-start flat ad sales and counter fierce competition from for-profit publishers. IFT's flagship publication, Food Technology magazine--long regarded as a credible and well-respected industry publication--was facing increasing difficulty competing against the appeal of larger, controlled-circulation publications and the perception among some advertisers that Food Technology's readers weren't decision makers.

"Even though the largest portion of our readers work in the area of research and development, many advertisers questioned how much buying influence they exerted," explains Jeffrey A. Kramer, IFT's associate director of marketing and membership. This perception, coupled with the added challenge of having to sell against magazines with three times the circulation of Food Technology, convinced Kramer he couldn't sit idle while his competitors aggressively marketed their broader reach.

"The other magazines in our market promoted advertising solely on the merit of their large circulation," he says. In addition, competitors exploited Food Technology's position as an association magazine, asserting that suppliers advertised simply as a show of support for IFT and not because of the strength of the magazine. "We needed an edge," says Kramer, "something that would set Food Technology apart in the minds of our advertisers."

Kramer had three specific objectives in mind:

* to increase advertising sales revenue and/or market share;

* to create an appreciation of the buying influence of Food Technology readers; and

* to increase the brand value of IFT in the marketplace.

"Our research showed that Food Technology was the best-read magazine in our market, but the other books had more ad sales," he points out. "We knew the IFT franchise had a high level of brand loyalty among the membership. Now, we needed to convey that to suppliers."

The tendency among publishers in a down ad market is typically to tighten promotion and research budgets--a tactic Kramer believes is shortsighted. "Food Technology is IFT's primary and most visible member benefit and a source of considerable revenue. Given its weaker-than-normal ad performance, we couldn't afford not to invest in it," Kramer explains.

"One of the best investments a publisher can make is to ensure you have a pulse on your competition and fully understand the conditions you must sell against," Kramer advises. Even though the research budget was fully allocated, he lobbied to get additional funding because he believed data on the purchasing power of Food Technology readers was critical to the magazine's ability to regain market share.

Offense is the best defense Kramer knew he needed market research, but he was unsure what methodology would be most effective. To help him develop the appropriate strategy, Kramer hired an outside research and consulting firm in August 2001. This consultant also provided an objective, third-party assessment of the conditions at work in the marketplace.

Kramer and the consultant met with the Food Technology sales force to gain insight into why advertisers weren't committing to the publication and to determine what information the staff needed to better compete. Kramer strongly believes the sales staff should actively participate in information gathering and planning, but acknowledges his view isn't shared by all association publishers.

"Too often, advertising research planning and design is done by the editorial or marketing staff. However, it is the salespeople who see and speak with advertisers on a daily basis and who hear firsthand about their needs and concerns. They also know how their competition sells and what they need to be able to compete effectively."

In their initial meeting, Kramer, the consultant, and the sales staff identified three key misperceptions advertisers held about Food Technology:

* Readers did not wield purchasing influence. More than half of Food Technology's readers designate their primary job function as research and development or teaching. Although the magazine's audit statement documented the types of products these readers buy or influence, many advertisers were reluctant to see this readership segment as influential.

* The magazine's circulation was too broad. The magazine's horizontal reach--which included readers working in corporate management, research and development, purchasing, quality control, sales and marketing, education, and consulting--was perceived negatively by many advertisers.

* The magazine was not a primary source of new product information. While Food Technology delivered a combination of research, technical, and practical information, its four for-profit competitors published more information about products new advertisers found appealing.

Making the case for Food Technology

With their objectives defined, the staff set out to plan a research study that would effectively refute these misconceptions and firmly establish a brand identity for Food Technology in the competitive marketplace. "The consultant guided us through an exercise designed' to focus on what we specifically wanted to tell advertisers about Food Technology magazine, our readers, and the market as a whole," recalls Kramer. "Once we knew what we wanted to say, we could develop a study designed to get us the data we needed."

Together, staff outlined five key objectives for the study. Specifically, it needed to quantify 

* how buying decisions are made in food- and ingredient-manufacturing companies;

* the role Food Technology readers play in making those decisions;

* the buying power of readers who work in research and development and other areas;

* the breadth of functional areas readers represent; and

* Food Technology's professional value and credibility as compared to the competition.

Additionally, staff wanted to repackage the survey's results as a value-added benefit to advertisers, providing in-depth information to help suppliers market and sell to food industry professionals. "While it was critical that the survey enable us to substantiate the buying power of our readers, it was equally important that we be able to provide advertisers insight into the food marketplace and, specifically, how purchasing decisions are made for their product," says Kramer.

Ultimately, the staff decided to conduct a comprehensive food industry buying power and market study. Unlike most advertising studies, which focus on the publication, IFT opted to position this study as representative of the entire industry--not just Food Technology's readers. "Our objective was to produce a definitive industry study commissioned by IFT and designed to provide detailed information about food industry professionals, their employers, and their role in making purchasing decisions. Equally important was the ability for us to generate significant mileage from the information we gathered, repackaging it in several forms for both marketing and advertising purposes, explains Kramer.

Twenty questions

Based on the five research objectives of IFT, the survey was designed to gather information in three key areas:

1. Reader demographics. Questions included the type and size of readers' companies, the food or beverage product manufactured, readers' primary job function, and all functional areas where readers are involved at some level. These responses were used to crosstabulate responses so findings could be analyzed at a deeper level.

2. How buying decisions are made. These questions were designed to enable staff to develop an accurate and detailed chronology of the decision-making process among food sector professionals. Specific questions included

* Where do you get information about new products and services (e.g., trade shows, in-person supplier visits, ads in trade publications, the Internet)?

* Of these sources, which one do you consider most effective?

* Check all the ways you are personally involved in your organization's purchase of any product or service (e.g., evaluate and test products, recommend brands, serve on buying team, develop a request for proposal, make final decision).

* How are buying decisions made at your organization (e.g., corporate management makes unilateral decision, purchasing agent makes unilateral decision, individual product managers make unilateral decision, use multilevel buying teams)?

* If buying teams are used, which functional groups make up the team?

* What are the three most important factors you consider when selecting a supplier (e.g., cost, reputation, technical support, customer service)?

* Does your organization maintain a select supplier list?

* What are your company's estimated annual expenditures in four key categories?

3. Readership of competitive food industry publications. Respondents were asked to indicate which one industry publication they believed provided the most useful information in five key topic areas. To remove any bias, the question was presented in an open-ended format, rather than having readers select from a list of choices.

The survey was mailed to 1,905 randomly selected IFT members and simultaneously posted online. A total of 598 completed surveys were returned, for a response rate of 31.4 percent. The research consultant analyzed and cross-tabulated the findings and identified several key statistics that would enable the Food Technology sales force to outline a compelling case for advertising. Key results showed that

* nearly 70 percent of food industry professionals use buying teams to make purchasing decisions;

* four in 10 readers who work in research and development make the final decision for 13 of the 25 products and services listed;

* Food Technology reaches the full spectrum of buying team members;

* the majority of professionals learn about new products via in-person visits from suppliers;

* Food Technology was rated the most valuable industry publication in all five major content areas;

* more than 6 in 10 readers influence purchases in more than one of the four main product categories; and

* readers are expected to spend an average of $50.8 million on products and services during the next 18 months.

Repackaging is everything

To effectively meet IFT's marketing objectives, the raw data was translated into dynamic marketing and sales tools. The first job: Develop a catch phrase for the campaign. JET chose to capitalize on Food Technology's strong showing as the readers' primary source of professional news and analysis by using this slogan, "Food Technology: The first choice of the readers and the smart choice of advertisers."

To gain maximum value from its research dollars and to help firmly establish Food Technology in the minds of advertisers, IFT opted to execute a gradual, sustained marketing campaign across three to four months. Working closely with the research consultant, IFT developed five separate marketing pieces, each with a unique objective: an executive summary, white paper summaries, a series of postcards, a full-length research report, and a marketing brochure for the media kit. (See sidebar, "The Five Marketing Pieces," for more details.)

Far-reaching benefits

Nearly one year after the research was conducted, Kramer believes IFT successfully met its original objectives, with some ancillary benefits the organization had not anticipated. Most important, ad revenues have gradually increased, despite a sluggish economy. "Our January issue showed we were up in market share," Kramer says. "The downward spiral trend we saw in the last 12 months has definitely started to change, thanks in part to this research."

The sales staff agrees. "This study clearly set us apart from the competition and provided solid data not available from our competitors," says Susan Young, Food Technology's eastern sales manager. "It has been a valuable addition to what I can bring to the table on sales calls and allowed us to get meetings with suppliers we might not otherwise have had access to."

The study also helped staff gain entree to hard-to-reach advertisers.

"Because of the depth and scope of the research, I was invited to make in-person presentations at the sales meetings of three major companies," reports Gayle Struble, eastern account manager, who developed a PowerPoint presentation of the study's key findings. "My personal hope and desire was that this research would help me educate advertisers and provide them with information to help them understand their audience. It did exactly that," she adds.

The industry wide focus of the study also helped raise visibility for the association. Just recently, for example, Food Technology's publisher was invited to speak about the findings at a major customer meeting.

More important, says Kramer, the study established a benchmark in the industry that IFT can now update regularly. In this way, both members and suppliers will come to view IFT as a source of authoritative, credible research.

"We can most likely use this data for two or three years," says Kramer, who plans a second wave of marketing promotions to a fresh group of advertising prospects. "It was time and money well spent."

FROM STATS TO SELLING TOOLS

The following chart illustrates how IFT used select findings from the
buying power and market study to refute misperceptions about Food
Technology and create compelling marketing statements for its sales
pieces

MISPERCEPTIONS                                 KEY FINDINGS

Readers don't wield purchasing      * Of 25 product and service
influence.                            categories, 60 percent of readers
                                      review them all and 40 percent
                                      make the final purchasing
                                      decision.
                                    * 40 percent of R&D readers make
                                      the final decision on 13 products
                                      and services.

Circulation is too broad.           * For seven in 10 reader companies,
                                      purchasing decisions are made by
                                      a cross-functional buying team.
                                    * Six in 10 readers influence more
                                      than one of the four main product
                                      categories.

Food Technology is not a primary    * Food Technology was chosen "most
source of new product information.    useful" trade publication by a
                                      five-to-one margin.
                                    * Two thirds learn about new
                                      products and services in Food
                                      Technology.

MISPERCEPTIONS                             MARKETING STATEMENT

Readers don't wield purchasing      Food Technology delivers
influence.                          influential readers.







Circulation is too broad.           Food Technology delivers complete
                                    market penetration and the full
                                    spectrum of decision makers.




Food Technology is not a primary    Food Technology delivers credible,
source of new product information.  authoritative editorial readers
                                    trust and depend on.
THE FIVE MARKETING PIECES

                          AUDIENCE             CONTENTS/FOCUS

Executive summary     Key advertisers/     Select survey
                      prospects            highlights, with an
                                           in-depth "Anatomy of a
                                           Buying Decision"
                                           section.

White paper           All advertisers/     Written in traditional
summaries             prospects; media     research style. The
                                           white papers were
                                           posted on IFT's
                                           Web site.




Series of postcards   Full advertiser/     Three postcards, each
mailed over a         prospect list        focused on one key
two-month period                           survey finding and
                                           incorporating the
                                           marketing slogan.

Full-length research  Select advertisers/  A complete, bound
report                prospects            research, study
                                           featuring charts,
                                           graphs, and an appendix
                                           that outlines the most
                                           effective way to market
                                           to specific food
                                           industry professionals.

Marketing brochure    All advertisers/     Four-colour, lively
for media kit         prospects            sales brochure that
                                           focused on three key
                                           strengths: buying
                                           influence of readers,
                                           circulation to the
                                           full buying team, and
                                           credibility of
                                           editorial content.

                            OBJECTIVE

Executive summary     Create "buzz" about the
                      research and provide
                      sales staff with a reason
                      to contact current and
                      prospective advertisers.

White paper           Provide insight into the
summaries             buying influence and
                      estimated annual
                      expenditures in four key
                      market segments. Use to
                      drive advertisers and
                      prospects to IFT's Web
                      site.

Series of postcards   Build sustained awareness
mailed over a         for the study and provide
two-month period      advertisers and prospects
                      with key information about
                      the marketplace.

Full-length research  Provide an entree for the
report                sales force to schedule
                      in-person sales
                      presentations. Used as a
                      leave-behind for key
                      advertisers and prospects.



Marketing brochure    Provide a piece for the
for media kit         Food Technology media
                      kit that clearly illustrates
                      key selling points to
                      advertisers.

RELATED ARTICLE: ENSURING RESEARCH SUCCESS

IFT's market research project successfully delivered solid, credible information to help expand advertising sales and market share Here's why

* Staff contracted with professional research consultants to develop an appropriate methodology and execute the research.

* The sales staff was an integral part of the initial planning process, providing critical insight into how the market operated and what they needed to effectively compete.

* Senior staff supported and believed in the research and committed the time and resources needed.

* The survey was designed to help educate advertisers and provide a value-added benefit beyond simply painting a picture of the marketplace.

* The raw data was transformed into selling tools. Rather than presenting charts and graphs, IFT interpreted the data laid out a logical case for advertising in Food Technology.

Angela M. Angerosa is vice president of research and marketing for Stratton Publishing & Marketing, Inc., Springfield, Virginia. E-mail: [e-mail].