Launching a new project without using market research is foolhardy
Understandably, people become carried away when they think they are on to a world beater. They want to launch now - hang the cost. Even multinationals make very expensive mistakes. The Ford Edsel is often quoted. In recent times, the Royal Mail's re-branding to Consignia was a colossal failure. And Margaret Thatcher put the kybosh on BA's tail fin designs.
We recommend a pragmatic approach to solving marketing and business development problems. Market research develops greater customer insight and aids creativity.
Using market research to analyse and test will save money and minimise failure. There are 3 basic areas to cover - marketplaces, competitors and customers.
Before considering hiring costly market research agencies, you can do your own desk research. It will cost you NOTHING. Start with your in-house files, trade magazines, customer reports and sales persons reports. The internet is a massive data source and business libraries have many published market research reports such as Mintel and Euromonitor. These days, most businesses have a web site making it easier to check out competition.
Interpreting the mass of data you will accumulate will help you fine tune the project and develop marketing strategies. It may also reveal gaps in your knowledge suggesting further research and testing.
When meeting customers for the first time, the Deve account managers use desk research to show market knowledge and gain a better understanding. You may be surprised how many clients are unaware of the latest
Quantitative research gathers statistics to enable you extrapolate pricing strategy, for example, or to choose a winner from several options. These are the main quantitative research techniques to consider:
- Self-completion questionnaires
- Telephone surveys
- Street Interviews
- Hall tests
- Omnibus surveys
- Mystery shoppers
- Product warranty returns
Sending customer surveys with statements is cheap but not necessarily representative of the customer base. Try sending them to lapsed customers.
In our experience clients do not like talking to customers who are generally very receptive to research. It is so easy to recruit for an in-store interview, especially when you are researching product cross selling. It is more important to know what they dislike about you than to know what they particularly like about you.
Qualitative research examines attitudes to and usage of a product or service. The most popular technique uses focus groups and either semi structured or free flowing moderation. It is expensive - each group may cost £2500. The groups need to be carefully selected to reflect the target market demographics. Individuals are sometimes offered an incentive. Recruiting for business groups can be costly.
Qualitative research with consumers may involve 'home placements' allowing use of a new product before attending the group. Very often responses to quantitative research surveys will suggest qualitative research is required. Indeed, survey respondents may be recruited for in-depth telephone work.
To discuss a market research project contact us here or call 0870 240 3139. To receive regular marketing tips sign up for our FREE newsletter