You might have a great idea for a product or business, but before you go any further, first make sure there is a market for it
Do you have an extraordinary idea for a product– something that will undoubtedly lure the hearts and minds of buyers everywhere. Or possibly a product that isn’t being launched by any other individual–product that is desperately required. This is your chance! Don’t be reluctant . . . don’t look back . . . jump right into it . . .
Hold on! Before you tighten your shoes, you should recognize is there truly a business opportunity for your product? Not just that, you have to find out if any tuning is required or not? In simple words, here market research comes into picture.
Numerous entrepreneurs disregard this crucial step just for the sake that they would prefer not to hear any pessimistic inputs about their product. They are persuaded their item is immaculate the way it is, and they would prefer not to risk tampering with it.
Other business owners ignore market research strategy since they fear it will be excessively costly. Since the various start up expenses you’re confronting, it’s not easy to bear expenses on research that will just demonstrate what you knew all along: Your product is winner.
Despite the aforementioned reason, failing to do research can leads to a great failure for your product.
Why Marketing Research is Important?
By implementing effective market research strategy organization could gather precious information about their rivals, monetary shifts,demographics, the current market trends and spending attributes of the consumers.
Check out the video for more details!
Market Research Strategies
Two types of data: Primary and Secondary can be gathered while conducting market research. Primary research includes data from direct resources that is from potential customers. This data can be gathered without anyone else’s input or you can hire another person to assemble it for you by means of focus groups, surveys and few other methods. On the other hand, secondary research includes gathering statistics, reports and information from associations, for instance, government companies (Kent 2007, p.8). Sometimes secondary research statistics should be consistent with primary research data to provide authenticity to the information.
Data Collection Techniques (Qualitative Vs Quantitative)
There are two ways of conducting a marketing research, qualitative and quantitative (Castellan 2010).
|Criteria||Qualitative Research||Quantitative Research|
|Purpose||To gain understanding of a problem or hypotheses for later quantitative research.||To quantify data and sum up results from a sample to the population of interest.|
|Sample||Typically a less number of non-representative cases.||Larger & randomly selected.|
|Data collection||Unstructured strategies e.g. group discussions or individual depth interviews.||Structured strategies such as questionnaires or telephone interviews.|
|Result||Findings are not conclusive and can’t be utilized to make speculations about the number of population of interest.||Used to suggest a final course of action.|
When thinking of Marketing research success stories, we may consider one of the greatest blunder in Marketing — New Coke. New formula turned out on the grounds because in the blindfolded tests, individuals favored Pepsi over Coke.
NEW COKE : A “CLASSIC” MARKETING RESEARCH BLUNDER?
Let’s take a closer look to investigate why this potentially disastrous decision was made!!
The Market Research Process….
Exhausting stack of dollars and broadly identifying buyers emotions do not only insure that a association has performed a reliable market research. In 1985, the Coca Cola tried to substitute its long existed Coke formula, after identifying taste tests of 200,000 respondents demonstrated that consumers favored a sweetener tasting Coke. Coca Cola’s market research neglected to anticipate a high level of brand loyalty to the original formula.
In this market research strategy Coca Cola used three different formulations:
Most of the consumers were not educated for what they were tasting which overlooked the emotional connections to the well known drink, which would have enlisted a vote for the original Coke. As taste tests conducted majority of people (about 53% Versus 47%) who have tasted both the new and the old Coke enjoyed the “New” Coke superior to the old one. The outcome was clearly in organization’s side to utilize this new coke and supplant the old one.
Few researchers pointed out, however, this survey was just comprised of basic Yes/No questions and not likely to disclose people’s deep seated emotions about coke.
Despite the fact that consumers were requested to react to “the idea of changing formulation” but they weren’t given an idea that their reaction might mean never being able to taste the old Coke again. Under such circumstances, responses might have been shifted.
What we can learn from Coca Cola Market Research Strategy?
- Focus on brand’s perception – According to Jack Trout, author of Differentiate or Die, ‘marketing is a battle of perceptions, not products (Trout 2008, p.155)
- Feel the Love – Emotional attachment with the product has little connection with the quality of the product.
- Don’t be scared to U-turn – By returning to its original formula, the organization ended up making a much more stronger bond between product and consumers.
- Do the right Market Research – Despite the huge number of taste tests Coca Cola carried on its new Coke, it failed to conduct appropriate research into public perception of the original brand (Bhasin 2016, p.1).
Hammering the last nail, market research is a sort of investment in your future. If you make the required changes to your product now, you’ll reap the benefits in the long haul.
By Adish Gupta
Bhasin, H 2016, Coca Cola Brand Failure, Marketing 91, retrieved 20 August 2016, <http://www.marketing91.com/coca-cola-brand-failure/ >
Castellan, CM 2010, Quantitative and Qualitative Research: A View for Clarity, International Journal of education, vol. 2, no. 2, pp. 1-14, retrieved 19 August 2016, School of Education, Loyola University Maryland.
Kent, R 2007, Marketing Research Approaches, Methods and Applications, Thomson Learning, London.
Start your own business 2016, Conducting market research, entrepreneur press, retrieved 18 August 2016, <https://www.entrepreneur.com/article/217388 >
Trout, J 2008, Differentiate or Die, John Wiley & Sons, Inc.., New Jersey.