Why conduct Market Research?
Why conduct market research?
Is doing market research worth it? You bet is. There's an old maxim in the marketing business that says "you don't know what you don't know". If you think about that for a second, you'd have to agree that as much as you know about your product or service, if you think you know it all, you just might be missing an opportunity.
Market Research is an often overlooked, yet powerful tool that can do more that you might think. It can save you money and reduce wasted expenditure, give you new insights and angles for promoting your brand, help to understand how your product or service is performing and where you might be able to improve and adjust for a better bottom line and ROI.
The fact is that research can tell you much more than you realise, and often opens up valuable communications opportunities, unique ways to position and sell your product or
brand better. Show you where untapped consumer potential might lie and ofcourse, it also offers insights into shortcomings and areas for improvement. In a highly competitive world, that kind of information is money in the band. It also means less money wasted on untargeted, ill-conceived and ad-hoc marketing communications.
Consumer insights in particular reveal all kinds of unexpected things. For example, when conducting some research in the outback a couple of years ago, we expected to find that the banks would be 'the bad guys', after all, that's the popular view. However, the opposite turned out to be the case, and for some very subtle and not immediately obvious reasons.
In fact, the findings from that research proved how incorrect companies can be when making business and communications plans based on assumptions, anecdote, hearsay and popular press.
Ultimately, the findings helped to inform some very different (and much more cost effective) kinds of marketing and communication as well as community involvement; far from the style of program the client had originally had in mind prior to the research being carried out. The result was money saved overall, and a better and much more relevant program delivered.
You may 'know' something, but can you prove it? At the very least, research can confirm your thoughts; it gives you the security of knowing you are on the right path. It means that the steps you take are informed, not guesswork.
Market research comes in many forms, qualitative, quantitative, on-line and omnibus surveys, those awful dinner-time telephone surveys and much more. Knowing which combination to use when is like a carpenter knowing which tool does which job best. And yes, you can overdo it. Some companies will spend millions on research; before, during and after the advertising and communications process. it can make them fearful of being brave in their marketing and as a result can also deliver some very deadly dull communications.
Often, a little market research can deliver all you need to plan with. There's no need to spend a fortune, and good advice and pre-planning can see that you get excellent value for money out of your research dollar.
Think of market research as the light on the lamppost that guides your path through the darkness; not as the lamppost that holds up the drunk who can't see the path for himself.
When it comes to research, there are three kinds of marketer; the enlightened marketer who uses research as a regular and judicious tool to track and measure progress as well as guide business and communication planning; the fearful marketer who makes no marketing decisions without it, and the foolish marketer who neglects or refuses to use it at all.
Which are you?
By: Anne Derham - Marketing Angels (Melbourne)