5 Questions to Ask Before

Conducting Market Research

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?

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

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