WIN IN 2006
Industry leaders agree a stronger business image is vital
Senior representatives of the market research industry confirm at the WIN meeting, they want ESOMAR to push ahead in promoting professional standards and other key initiatives
Industry leaders at the WIN (World Industry Network) meeting held in Geneva on 16 and 17 January agreed that ESOMAR should foster stronger self regulation worldwide to promote the market research industry. At the meeting which was opened by ESOMAR President, José Ignacio Wert, they also supported initiatives on developing talent and improving industry statistics and debated a WFA project on holistic media measurement.
WIN participants confirmed that the ICC/ESOMAR International Code including the definition of market research should be streamlined and updated to bring it closer to business practice. As the Code has been adopted worldwide, any revisions will need to be circulated for comment by associations and research companies and for approval to ESOMAR members in a referendum scheduled for 2007.
The more than 25 industry leaders who met at the fourth WIN meeting, representing global clients and research agencies, said an updated code is not only necessary to take into account new developments in the market but also as an important tool to better promote market research to a wider audience.
WHO ARE WE?
As part of this discussion, the leaders debated the definition of market research. They supported the proposal that a clear and concise definition is needed to distinguish market research from other activities and to communicate about the industry to a broader public. They also endorsed the view that market research is defined by the fact that respondent identities are not revealed to clients except for research purposes and that no sales offer will be made to the consumers as a direct consequence of their having provided information. However, they also want the definition to encompass a broader range of activities such as mystery shopping and consultancy.
RESPONSIBLE RESEARCH REGULATION
The topic of self-regulation was also discussed in Geneva. Previous WIN meetings had generated industry leaders’ support for developing new global ISO norms for market research, and these are being ratified following an elaborate drafting process.
In 2005, a project team was formed with the support of the WIN leaders to co-ordinate the strengthening of national self regulation based on an international template - a project that is now called Responsible Research Regulation (RRR), Jeannin announced in Geneva.
The commitment to this is an additional step in a structure called the ‘House of Quality’ which has at its base the ‘Eight Principles of Research’ that have been agreed by industry experts and serve as a common foundation for national codes and standards worldwide.
The industry leaders from Asia, Europe and the Americas attending the WIN meeting agreed that enforcement of industry codes and guidelines would be much more credible if violations are publicly sanctioned.
Currently, sanctions are mostly invisible as they are never publicised by market research associations. Furthermore, they rarely apply to the non professionals and new entrants to the industry that do not join associations or respect accepted standards and this damages the image of the market research sector.
In Germany, however, an effective compliance system is in place whereby an independent body supported by all professional bodies in Germany will publish the names of any individuals and companies which receive a reprimand, whether or not they are an association member.
ESOMAR is promoting this system as best practice to other countries including Brazil, Denmark, Japan, Norway, Portugal, Spain, Turkey and the USA as well as further afield and this is being pursued by several countries in different formats. Claude Bénazeth, speaking on behalf of the French associations, for instance, explained that the French system differs in some respects from the German situation because it is anchored in national legislation. Data privacy laws are implemented by a government body (CNIL) which controls all market research data collection. A separate set of laws regulate the publication of polls prior to elections. The French industry bodies intend to set up a common body to deal with complaints that can publicise major sanctions, but unlike Germany, this will probably not extend to cover non-members.
Véronique Jeannin concluded. “If we demonstrate to legislators and the general public that we have a well-functioning system of self-regulation in place, with clear rules to safeguard both the quality and ethics of research, this will have a positive impact on our image.” She added that a better image will very likely have a positive effect on response rates, help to differentiate non professionals and enhance legislators’ willingness to exempt market research from restrictive measures, such as bans on unsolicited phone calls.
DEVELOPING TALENT
Anna Alù, member of the WIN Project Team, updated research leaders on plans to attract more talent to the industry. The first master class to debate ways to develop the consultative skills of market researchers was held at ESOMAR’s Congress in Cannes, she said. ESOMAR has also presented 12 Killer Questions, which is aimed at helping clients determine whether a research project is sufficiently geared toward decision making and can provide actionable advice.
Later this year a book containing best practices of research will be published and a concise booklet answering the question ‘What is research?’ is also due. A new and completely overhauled edition of the Handbook for Market Research (latest edition 1997) will be published in late 2007, Alù announced.
In addition, ESOMAR is in dialogue with several business schools to help them modernise and add more of a business research mindset to the content of their curriculae. The first results of these efforts will be reflected in their market research programs in the next few years.
IMPROVING INDUSTRY STATISTICS
Providing accurate industry turnover figures was once again a hot topic at the WIN meeting. These data are considered necessary by many as a means to improving the industry’s credibility. “Outsiders might think that if we can’t provide precise information about our own turnover, as market researchers, what do we know?” said former ESOMAR president Fredrik Nauckhoff. More accurate industry data would also provide valuable insights into industry trends.
Currently, because research industry statistics are collected from a range of sources, including various associations and expert industry watchers, they are not always standardised, accurate or compatible.
ESOMAR proposes to test a new method based on a professional audit system: the largest market research companies would provide their annual results to an international auditor that would guarantee confidentiality and work with clearly defined revenue categories. This should ensure the figures are more accurate and comparable between regions. Because of the confidentiality factor, restrictive regulations such as Sarbanes Oxley don’t apply, Diane Bowers, president of CASRO, pointed out.
The top 25 agencies of the industry would cover 62 percent of the market and a further representative sample would be added to provide an effective coverage of the industry. Through this system, trend information and industry forecasts offering added value for the profession could be provided.
The success of this method is linked to the commitment of the top 25 to provide their figures. ESOMAR proposes that an auditor should start collecting data in March 2006 so results can be available in September. Prior to the launch of the project, ESOMAR is organising a workshop in Amsterdam with the top agencies to work out the best methodology to ensure the success of this proposal.
MEASURING ALL MEDIA AT ONCE
Introducing a new issue on the WIN agenda, Adam Swann, chairman of the World Federation of Advertisers media committee, asked research leaders for feedback on the WFA blueprint regarding their new consumer holistic approach to audience measurement. Swann pointed out that current measurement tools are insufficiently aligned with today’s media consumption. Consumers are exposed to a wide variety of media, sometimes simultaneously watching television, browsing the internet and listening to iPods. “But we still count demographically-defined eyeballs and ears”, he explained.
Research leaders agreed that advertisers need holistic audience metrics to be able to assess ROI of advertising and that this could represent additional business revenue. Swann also said that a pilot project, the UK Touchpoint, which seeks to integrate existing data on several media into one encompassing system, is ongoing. WFA will continue its efforts to help develop holistic media measurement. These initiatives will be presented at ESOMAR’s WM3 Worldwide Multi Media Measurement conference from 4 to 7 June 2006 in Shanghai.
PROMOTING RESEARCH BEYOND RESEARCH
ESOMAR recently explored the association landscape. An update of the results presented in Geneva showed that well-functioning associations are in place in all key markets whilst efforts are still needed to structure associations in some emerging economies that show double digit growth.
Areas for joint efforts where associations could co-operate were also identified such as the promotion of the industry.
Fredrik Nauckhoff set the scene for debating how to promote market research to wider audiences. There was consensus that the industry should reach out to the public, educators, politicians and legislators and the media. Social debates should provide the key driver for promotions and the media are a priority target. Participants agreed that the industry is now ready to take a more daring position and to be more public about its contribution. They also agreed that a strong code is a pre-requisite for successful promotion.
About WIN
WIN is an agenda setting forum for global leaders in the research industry and a communication platform to inform and update associations, aligning and involving them in industry project. Regular international meetings are organised to discuss trends and critical issues and to develop collective responses and plans for action.
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