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We've
discussed the topic of market research in this forum over the years.
Market research is a highly effective tool to uncover great information
about end users, the market place, competitors, and other marketing-related
issues.
We
know that better information leads us to increase our chances of
making better business decisions. And, it is these decisions that
ultimately lead to one's level of success.
So,
while we are big proponents of market research we also recognize
that it may NOT always be the right thing to do for your business.
This
month, Judy Maritato, a business-to-business market researcher for
over 25 years with such companies as Bosch, Rohm & Haas, and
Mack Truck, suggests five questions we need to get a “YES” to before
we decide to conduct market research.
TIME
1.
Can the information be obtained in time for the required decision
point?
While
this one seems obvious, it is sometimes overlooked within the organization,
especially if various departments are involved in the work this
research will affect.
I've
also seen this issue become important when once "far off"
deadlines are suddenly moved closer due to uncontrollable changes
in market conditions or internal supply or political issues.
RESEARCHABLE
2.
Are the questions answerable within a market research framework?
Judy
tells us that some questions are not researchable in a practical
manner.
On
the one side she cites hypothetical situations that are too complex
to define clearly and easily enough to be able to be researched.
On the other side are trivial or insignificant differences between
alternatives, e.g., graphic layout for ads that are pretty similar
in overall impact, two product designs that do not have distinctly
separate visual looks, etc.
In
the latter scenario she warns about taking the choices too literally
and overlooking the real impact of one choice over the other in
the market place. Does it/ will it really matter at the time of
purchase?
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RISK IMPLICATIONS
3.
Are the questions answerable within a market research framework?
Is
the risk able to be better managed by knowing more about it?
Two key points
on this issue.
One, based on
what you know and from past experiences, the risks can be pretty
clear without conducting the research. In this case conducting research
doesn't add anything to your knowledge base. The value is just not
there.
Two, it's important
to remember that market research does not mitigate risk. It simply
enables you to take more carefully calculated risks by understanding
the boundaries and implications of those risks better than you would
have been able to do without the research.
COST-EFFECTIVENESS
4.
Does the current or potential sales volume (or profits) justify
the cost of obtaining the information?
While conducting
market research doesn't have to be expensive, there definitely are
some are costs involved, even for the smaller, more qualitative
studies that are conducted.
The reason to
ask yourself this question is to make sure the research effort is
in line with the reward. By keeping this question in mind, you are
more likely to spend your time and money most appropriately for
your business.
ACTIONABILITY
5.
Does the organization have the ability - or disposition - to take
action based on the results?
If internal
or external constraints limit what can be changed in the marketing
mix, regardless of the research findings, it is not worth the time
or effort to conduct the research.
"Too many
people think that the research will magically change the constraints,
says Maritato. "Research is a powerful tool, but it is NOT
a substitute for sound business judgement."
To sum it up,
market research is only one business tool we have in our bag to
help us make better decisions and to quantify potential risks and
benefits. If we understand what it can and can't do for us in any
given situation, we will use that tool - and others - more effectively.
Remember,
Mosaic creates customers for business-to-business companies through
specific project work, on-going retainer assignments or marketing
coaching sessions.
Until
next time ...
Rosemary
Walter
847-483-5018
Rose1Walter@MosaicMM.com

Quote
of the Month
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"The
great end of life is not knowledge but action."
-
Thomas Henry Huxley
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