Will going to the fish market and enquiring today’s prices of various fishes count as market research? It may not, if you just do the collection of information. However, if you analyse the information and make a study(an informal one would do), then it can be termed as market research.
So, what is ‘Market Research?’ Market research may be defined as the collection and analysis of information(both perceptual and factual) about customers, market niches and the effectiveness of marketing programs. It is done in a formal manner by organisations to improve their planning and help them in decision-making. Globally, its use has been growing steadily, and in India, the number of companies relying on such research is on a steady increase.
An organisation may conduct a research on anything. It may conduct focus group research to assess the impact of a name change and to explore possible alternative names for the company or the possible impact a commercial like “Do the Dew” has on the target market.
Need for Market Research
Do your market research before you spend your first penny on advertising or you will lose your shirt.
Market Research enables an organisation to know what people know(awareness or familiarity), what they think and value(opinions and beliefs), what they feel(attitudes and emotions), what they do or are likely to do(usage and behaviour), drivers, motivations and reasons for the above and emerging issues which could impact the organisation.
Statistically verified and representative data about target groups(customers, consumers, staff, etc.) are indispensable for forward planning, implementing marketing measures, making calculated decisions and for making organisational changes.
Methods of Market Research
There are many methods of market research – both crude and refined ones. An organisation has to choose the methods that suit the circumstances, need and themselves.
The following are some of the possible methods –
Ø Sampling – Market segmentation / Target group analysis
Ø Questionnaire – Quantitative / Qualitative
Ø Telephonic enquiries / interviews
Ø Surveys – Online / Customer / Employee
Ø Desk Research or Data Mining
Myths about Market Research
Manager speak – You are not a manager if you don’t use the word research or research study in every fifth sentence you speak. You are also not considered management material if you don’t begin any of your new ideas or suggestions with “new research studies suggests/supports… “
More detailed the research the better – There is a limit to the detail of the research, depending upon the circumstances, beyond which it may be a waste of time and resources; like if one were to conclude that the perceived product quality of brand Q in India is 14.215486002!
Indepth Research is a surefire way to success – Indepth research using the most modern research techniques doesn’t in any way ensure success unless an organisation can deliver value and expectations. After months of research on figuring out that there is a huge market for modems, if an organisation fails to succeed, it cannot blame the research methodologies or results(probably the modem went kaput after two-three months!)
Pitfalls of Market Research
Relevance of the research – Organisations are often not clear about what to research or what not to research; and often research on insignificant or irrelevant areas. It is not surprising for bosses wanting to know the research results on everything concerned; both relevant and irrelevant. Often research is done to get data points that are completely unusable – just to be seen to have covered the bases. These can be largely ignored.
Indicative – Organisations often get carried away with research results. Market Research, at best, is indicative, and cannot be precise and accurate(unless the “market” is too small in the two digit population). Research describes the present, somewhat. It definitely by no stretch of imagination can predict the future.
Proving the obvious – Organisations often don’t have the courage to act according to their own opinion. In those cases, the research is done to prove the obvious. This is the safety for the coward – “What colour is the sky? Let’s do a focus group and find out” kind of stuff.
Absurdity of certain results – The truly insidious, damaging research is the one that seems to be well-meaning but delivers homilies that direct you to create dull-as-dishwater messaging and products. “Seventy six percent of the consumers do not like a negative approach.” Really? So should the Sippys have made the dialogues in Sholay more IMRB-friendly. Or if research said “consumers like pictures of babies and dogs”, should da Vinci have added one of each, just in case, to the Mona Lisa? Be on your guard against such research-driven idiocy.
Conclusion
Do not mistake research for reality. Research CANNOT tell you what to do and how to do it. It can tell you, at best, where the target audience’s mind is. Shakespeare, Spielberg and even Bill Gates have understood this well. Their creations are not only the results of studies. But come from imaginations that build on a deep understanding of their audience’s mind.
However, a disturbing trend observed these days is building businesses based on research. Gartner, or some other research house, says Sector X will grow to be a$8 billion industry by 2008. So all rush to be there. Really? What did they use – a time machine?
There is no such thing as ‘research into the future’. Sometimes, it is confusing how such numbers are produced. Perhaps someone’s throwing dice and producing random numbers in the back office. I think of The Wall Street Journal, where a monkey throwing darts is one of their better-performing stock-pickers. If research companies were right, we never would have had the tech boom or for that matter, the bust.
It is more a pleasing, convenient fiction, like your horoscope for today or next year. Read it if you want to, by all means, but remember that it has about as much bearing on the future of your business as your neighbour’s cat’s star sign!
Finally, a MR Joke
A man doing market research knocked on a door and was greeted by a young woman with three small children running around at her feet.
He said, 'I'm doing some research for Vaseline. Have you ever used the product?'
She said, 'Yes. My husband and I use it all the time.'
'And if you don't mind me asking, what do you use it for?'
'We use it for sex.'
The researcher was a little taken aback. He said, 'Usually, people lie to me and say that they use it on a child's bicycle chain or to help with a gate hinge. But, in fact, I know that most people do use it for sex. I admire you for your honesty. Since you've been frank so far, can you tell me exactly how you use it for sex?'
The woman said, 'I don't mind telling you at all. My husband and I put it on the doorknob, and it keeps the kids out.'
