Stop business failure.  Cut marketing costs. Research, research more and research again.

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. Thorough market research is essential to minimising failure. It may well tell you not to start the project. There are three basic areas to cover - marketplaces, competitors and customers.

Market research and testing is a continuous process. Testing a new direct mail campaign, a new press ad, a letter to your customers, an email campaign, or a new telemarkting campaign will save time and money. You sample test small and measure the results. If results are poor, learn the lesson and move on. If it was profitable, roll it out and make it an integral part of your marketing mix.

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.

For established businesses, customers can be a huge source of information. For a start they are likely to have been approached by your competitors. We are amazed by how many businesses do not talk to their customers. Of course you will want to hear the good things they have to say about you. The not so good things they say about you will be more helpful.  

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.

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:

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 call 0870 240 3139 or submit information using the contact us page.