Wednesday, May 05, 2010

Should companies do essential market research?


Surprisingly few b-2-b companies conduct any sort of market research. In  my experience over many years in marketing,  it is rare to be presented with any of market research results by clients at the start of a project. 

Of course formal and rigorous primary market research can run into tens of thousands - a big investment for SMEs. Yet often, much larger sums are invested in product development and marketing communications without the valuable, indeed essential insight into the market. However there is secondary research data available that can provide useful information in more general terms about an industry and markets. Starting a marketing project or campaign with only the client's view of the market, which may lack the objectivity of a third party and result in loading a product with features users do not see as benefits, or setting the wrong tone or delivering an off target message for a campaign. A simple market appraisal conducted by calling a few people in the target market can yield vital information which may prompt the need for further research. For example, one client had given us a brief to launch a new product that would be sold through electrical wholesalers. But speaking to just 10 or 12 wholesalers brought up a serious issue which was related to non deliveries of the company's products in general and until these issues were resolved no new products would be ordered. So a campaign without rectifying this problem would have been a poor investment. More frequently market appraisals tend to confirm a client brief but may help clarify and re-order priorities.

Armed with some fundamental market research campaigns can then be planned with better awareness of the target market's views.
 

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