As the global economic crisis continues to
roll on, budgets remain tight, and marketing spend is often one of the
first casualties to face financial cuts during hard times. This is
particularly true for owners of small- and medium-sized businesses,
whose focus may be on the day-to-day job.
Market research in particular may be thought of as an inessential expenditure in tough times, but I think this is a short-sighted approach. Fierce competition means it is more important than ever to understand the interests and requirements of your target market during a downturn. Many large companies that may have seemed indestructible have gone bankrupt in the past few years, and might have benefited from consumer insight in order to develop more effective sales strategies.
All business owners know that the customer is king and as such it is essential to find out exactly what it is that they want. We undertook a piece of consumer research recently to find out what individuals in the US and UK really thought about market research and if it had a direct impact on their opinion of a brand and likelihood to buy its products. The study found that 56% said they felt more loyal to a brand if a company had asked their opinion while almost two-thirds (62%) of those polled said they were more likely to purchase a brand’s product or service.
Statistics such as these demonstrate the value of market research, but how can this have relevance for a business owner who is assessing the various options available? Remarkably, the survey found that in terms of methodology, new technology was by far the most popular means of undertaking market research, with over 91% stating they prefer offering their opinions via ‘smartphone’, ‘web’ and ‘SMS’ methods. Brand managers therefore would be wise in carrying out their research online to expect the best return.
Over the past few years there has been an increase in the use of DIY research tools, whereby marketers can deploy online surveys to gain insight without employing a third party. This allows the user to be in control of who they are questioning in a transparent and inexpensive way, and most importantly, can be turned around in a matter of days. This trend is increasing in popularity, with web giant Google recently joining the party with the launch of its new tool, Google Consumer Surveys.
Many marketers may be afraid of the budgets involved with conducting research, but with products such as Cint Access and Cint Link, the cost per respondent is detailed from the start, and will depend on the specifics of the panel demographic selected.
So for example, if you are looking to sell a new range of baby products, you can choose a group of new mothers to survey. Or if you are want to target young people in a particular region to find out about their leisure habits, you can simply select that particular age range and geographical area. This way you can find out exactly what your target market thinks, rather than wasting your time – and money – polling a general database of consumers that may never be relevant for your products and services.
The recent global financial crisis has forced marketers to rethink the way they manage their budgets and promote campaigns. I would suggest anyone believing that market research is an unnecessary expenditure or resource in this day and age needs to think again. Spending significant funds on advertising and large-scale marketing campaigns is worthless if you are not targeting the right people with the right product, and undertaking market research in advance in order to understand your target consumer better will minimize any risk of waste. Businesses of all sizes need to think strategically as they develop new products and the marketing campaigns going forward to promote them. Those who utilize market research tools in order to gain consumer insight are in a far stronger position to achieve success.
Bo Mattsson
http://60secondmarketer.com/blog/
Market research in particular may be thought of as an inessential expenditure in tough times, but I think this is a short-sighted approach. Fierce competition means it is more important than ever to understand the interests and requirements of your target market during a downturn. Many large companies that may have seemed indestructible have gone bankrupt in the past few years, and might have benefited from consumer insight in order to develop more effective sales strategies.
All business owners know that the customer is king and as such it is essential to find out exactly what it is that they want. We undertook a piece of consumer research recently to find out what individuals in the US and UK really thought about market research and if it had a direct impact on their opinion of a brand and likelihood to buy its products. The study found that 56% said they felt more loyal to a brand if a company had asked their opinion while almost two-thirds (62%) of those polled said they were more likely to purchase a brand’s product or service.
Statistics such as these demonstrate the value of market research, but how can this have relevance for a business owner who is assessing the various options available? Remarkably, the survey found that in terms of methodology, new technology was by far the most popular means of undertaking market research, with over 91% stating they prefer offering their opinions via ‘smartphone’, ‘web’ and ‘SMS’ methods. Brand managers therefore would be wise in carrying out their research online to expect the best return.
Over the past few years there has been an increase in the use of DIY research tools, whereby marketers can deploy online surveys to gain insight without employing a third party. This allows the user to be in control of who they are questioning in a transparent and inexpensive way, and most importantly, can be turned around in a matter of days. This trend is increasing in popularity, with web giant Google recently joining the party with the launch of its new tool, Google Consumer Surveys.
Many marketers may be afraid of the budgets involved with conducting research, but with products such as Cint Access and Cint Link, the cost per respondent is detailed from the start, and will depend on the specifics of the panel demographic selected.
So for example, if you are looking to sell a new range of baby products, you can choose a group of new mothers to survey. Or if you are want to target young people in a particular region to find out about their leisure habits, you can simply select that particular age range and geographical area. This way you can find out exactly what your target market thinks, rather than wasting your time – and money – polling a general database of consumers that may never be relevant for your products and services.
The recent global financial crisis has forced marketers to rethink the way they manage their budgets and promote campaigns. I would suggest anyone believing that market research is an unnecessary expenditure or resource in this day and age needs to think again. Spending significant funds on advertising and large-scale marketing campaigns is worthless if you are not targeting the right people with the right product, and undertaking market research in advance in order to understand your target consumer better will minimize any risk of waste. Businesses of all sizes need to think strategically as they develop new products and the marketing campaigns going forward to promote them. Those who utilize market research tools in order to gain consumer insight are in a far stronger position to achieve success.
Bo Mattsson
http://60secondmarketer.com/blog/
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