Market Research Myths: Part 1

Whether you are managing an existing brand or launching a new product or service, getting to commercial success can seem daunting. Sometimes you just need answers before you can proceed. When done correctly, market research can play a key part in helping you predict which of your new business or brand ideas will fly in the marketplace. In today’s fast-paced world, companies sometimes reduce or skip the all-important research phase, and move straight to testing or validation. All too often this results in more dollars spent on an incomplete or imperfect idea and extra time spent fixing what’s broken later on. Because of this, we want to debunk some of the most common market research myths we hear about from our clients. Today we are going to layout the first four myths that may dramatically impact how your company views market research.

Myth 1: Market Research is too Expensive 

 We hear this all the time. The question here is not so much about cost as it is about risk. As an insights manager, you have a choice to make up front: invest the money now or invest more money later. What is it worth to know in advance that a new product will likely test well before you spend the money to launch it? Think about how hard it will be to explain to your boss why your new product failed, or why your most trusted brand’s market share is slipping, when you could have prevented it with quality consumer insight early on. Remember that market research projects can be tailored to fit any budget, from very small to the rarely generous. Your research partner should be able to work with you to get the information you need at a price point you can afford. Consider the cost of the research in light of the value in up front decision making confidence, proper concept testing and refinement, and products or concepts that have been proven to be ready.

Myth 2: A Researcher Could Never Understand My Complex Business

 A truth is, the researcher doesn’t need to understand the detailed complexities of your business. They need to understand research. A good research partner needs to be well versed in the different types of research available to get you the answers you need. Certainly it helps if they know a little bit about your business, and you should provide them with detailed information about your business, your research goals, your market, and your consumer. It can be helpful if they know your industry jargon at some level, but their research expertise is much more valuable to you. Regardless of the industry, a good researcher can design a study that will deliver against your objectives. Often, their experience in other categories will give you a much needed fresh perspective on the challenges you face. 

Myth 3: We Know Our Customers – Research Would Just Tell Us What We Already Know

Do you really know your customer?  Do you truly know the motivations behind their purchases? When you hire a good researcher you gain deeper insights into your target consumers. A deeper dive research study can reveal hidden motivations or desires that are not apparent in more superficial interactions like surveys. Additionally, markets are dynamic — what is true today may not be true tomorrow. Consumers are forever changing how they interact with media, products, technologies and even their belief systems. It is tough to say you have a pulse on all of that if you aren’t actually gaining feedback from them on a regular basis.

Myth 4: We Can Do Our Own Research

 There are certainly things you can learn by interviewing your internal networks and friends about your brand, or going on your Facebook page and asking your fans what they think. But there are limits to this “convenience” sampling, as we researchers call it. A good researcher presents themselves as an impartial third party, inviting consumers to tell the truth without feeling like they are talking directly to the brand where they might not be as forthcoming. It is much easier for a customer to tell a researcher how your brand let them down than it is for them to tell you. Getting a half-truth from your consumer will not help you get the real answers you need. Researchers are highly skilled in structuring their research studies so that there is as little bias in the data as possible.

Do these myths sound familiar? Have you found yourself thinking similar things about how market research could or should be used in association with your brand and your concepts? We’re not surprised. We have heard similar stories time and time again, and only after our business partners see the results of agile market research, do they wonder how they ever did business without it.

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