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10 Reasons to do Market Research
By Peggy Lawless, Lawless Institute


Market research provides the information needed to make sound business decisions. It helps organizations reduce the chance for costly errors in marketing, product design, and strategic planning. Both surveys and interviews are valuable tools: large-scale surveys provide precise estimates of something’s prevalence and interviews yield unexpected insights and rich details.
 

  1. Position companies as providers of valuable information.
    A finance company elevates its image by posting studies on the Web that examine the barriers to home ownership and children’s attitudes toward spending and saving.
     

  2. Elicit stories to help illustrate attitudes and behaviors and put a human face on facts and statistics.
    Doctors’ stories about how a medical device implant has improved their patients’ lives provide powerful pull quotes and third-party endorsements.
     

  3. Estimate the prevalence of attitudes and behaviors and profile the primary characteristics of people with certain beliefs and expectations. A national study measuring the level of stress among full-time workers identifies ways that organizations can reduce the costs and consequences of stress.
     

  4. Find new markets and identify unmet needs of customers.
    A theater company’s interviews of people who rarely attend movies uncover ways to reach untapped markets and increase attendance.
     

  5. Uncover a hook to strengthen marketing materials, Web pages, and advertisements. Healthcare users tell researchers that having to wait for the doctor is their greatest irritant. A network of healthcare clinics headlines a successful marketing campaign with “Does waiting in the doctor’s office make you sick?”
     

  6. Describe the factors that influence customer satisfaction and loyalty. A charitable organization surveys donors, volunteers, and the agencies they fund to learn how to increase satisfaction and maintain the loyalty of donors and volunteers.
     

  7. Identify customers’ perceptions of a company or product image to help build a potent brand. Owners of recreational vehicles reveal that they chose a particular brand because it was manufactured in the Midwest, which they equate with a strong work ethic and reliability.
     

  8. Test new product or service concepts. A new cellular phone feature is tested through in-depth interviews with current users. The research provides guidance on product design and marketing.
     

  9. Draw a profile of a market segment’s size, growth, and key participants (customers, competitors, suppliers, as well as regulatory, economic, and social environments). A publishing company uses data from a market study to decide if they should develop products for the education industry.
     

  10. Track trends and anticipate changes in the marketplace. Online surveys of people who make corporate purchases on the Internet measures the level of activity and points to likely changes.

    Not every decision requires research. If the cost of a wrong decision is low, companies don’t need to invest in research. For example, if a new service can be offered at little or no development cost, then there’s little risk in introducing it.

    However, if there is uncertainty about which course to take, research can guide decisions about marketing, resource allocation, and product and service design.

    For creative, effective communications, call High Point Creative at 651-426-4012.

     



  

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