Marketing with the Scientific Method

CoreBanner_ScientificMethod2.pngMy sister, Emily, is an amazing teacher and self-described nerd.  Most of the time, when it comes to chemistry or plate tectonics, I don’t know what the heck she’s talking about.  But one science-y thing I have learned from her is the value of experimentation. As a marketer, I can appreciate the importance of a controlled experiment to produce accurate data that will help us understand what works, what doesn’t, and make informed decisions on behalf of our companies and brands. 

When it comes to marketing, our variables are wide ranging, from demographics and geographies to media channels and content types.  A tried and true way to test marketing strategies is by introducing only a few, manageable variables into the mix.  This method is also vital to controlling your experiment. 

Sure, a nationwide, throw-everything-at-them campaign can be effective if it’s strategic – and if you have a very deep pockets.  However, targeted, smaller-budget initiatives provide the opportunity to test the effectiveness of new audiences, markets, tactics and content.  This type of testing is happening all around us, exemplified by regional product introductions (which is why I can get Lays Southern Style Biscuits and Gravy Potato Chips in Dallas, but probably not Detroit) and the current onslaught of political campaign ads. Smart marketers on the other end of these examples are reading and interpreting the data, then rolling out or pulling the plug on these initiatives in other markets. 

Based on the scientific method (thanks for the refresher course, Emily!), I’ve outlined below an example of a controlled, fresh produce marketing experiment that can be customized to fit just about any marketing objective. To help illustrate this method, take a look at this refresher and follow it with our thoughts on how a fresh-cut carrot company would approach the experiment.   

  1. Ask a Question – What complementary products/brands should I align with to grow sales of our fresh-cut carrot sticks?
  2. Do Background Research – Review and assess data from your customers, your sales department, and, if you have it, Nielsen or other surveys. You learn that ranch dip sales are booming in the Southwest and Northeast.
  3. Construct a Hypothesis – I hypothesize that, by aligning with a popular dip company with distribution in the Southwest, sales of our carrot sticks will increase by at least 3% in that market, during specified timeframe.
  4. Conduct an Experiment – Partner with dip company to place IRCs (instantly redeemable coupons) on both brands’ packaging that are good for $0.50 off when a shopper buys both products.
  5. Analyze Data/Draw Conclusion – Results are in and sales DID increase YOY, May-August; however, the co-promotion boosted sales by 2.3%.
  6. Report Results (Was Your Hypothesis Correct?) – While our hypothesis wasn’t correct, the sales increase was high enough for us to continue similar programs in the future.

To continue the example above, next summer, the carrot sticks brand may try the promotion with the same dip brand, and the same $0.50 IRC, but in the Northeast to compare results.  We regularly use this method with our clients and in our own marketing efforts and believe that, as in the world of science, the possibilities for lessons and future success are endless.  So, marketers, throw on your lab coats and goggles and get to experimenting.  We can’t wait to see your results!