Businesses across the world use third-party market research firms to provide them with objectivity of results, among other benefits. However, even businesses that are equipped to do a project in-house are still forced to look outside of the organization in order to gain an unbiased perspective. Think in terms of employees evaluating their own company’s television commercials. Will these employees really have a fresh and untainted perspective of their company’s marketing campaign? Probably not.
Market research needs to be objective to be effective. This objectivity could relate to a price for a product being way too high or way too low, objectivity to state that this location is the worst or the best place to put your business, or even objectivity to state whether or not consumers won’t buy or will buy your product because the packaging is purple. This topic was also covered in a past blog post that discussed five cautions of doing market research in-house. Market research without objectivity is nothing more than artificial data and fluffed numbers.
There often comes a time as a market research analyst where you have to deliver unfavorable findings to a client. With the variableness of market research, the results could rain on your proverbial parade. If you are in this situation and forced to deliver unfavorable findings to the client, just keep in mind that by doing this market research up-front you may have saved your client, thousands, if not millions of dollars. This would not have been saved if the market research project was passed on. Successful market research projects will also point businesses in the right direction and give them the flexibility to change course to create a more profitable venture.
Market research and objective information minimizes risk. With the new data you gained from market research, it will help you better evaluate your business ventures and optimize your product or service line. So even if your results come back negative, keep in mind that you not only avoided a poor business decision, but you also have the information you need to make a better decision.
Nevertheless, some businesses avoid market research at all costs. Many key decision-makers will make marketing or management choices based on a hunch or internal team consensus. Not to say that this approach does not work sometimes, but it’s always better to have statistical data from real customers to back these decisions up. Market research either supports your hunch or tells you that your hunch needs to be reworked. Objective data is critical.
So the next time you are wondering whether market research is the appropriate next step for your business, keep in mind the glass is 50-percent full rather than 50-percent empty (or half full for our non-market research readers). Even if the market research study doesn’t tell the story you were hoping, you’ve ultimately saved your company money and gathered vital information to ensure the venture will be successful. If you are interested in seeing whether market research is right for you, contact our Director of Business Development Sandy Baker at SandyB@RMSresults.com or call her at 315-635-9802. Research & Marketing Strategies (RMS) is a market research firm in Syracuse, NY.