Market research is not an old technique; it can be traced back to the 1920’s when the radio industry began realizing the power of demographics. But even as recently as 15 years ago, companies could talk themselves into thinking that they didn’t need to conduct market research in order to reduce operating costs. But with the power of the internet and the availability of anything, anywhere; thinking you don’t need market research isn’t just a poor decision, it’s a sure fire nosedive for your annual profits.
It’s important to initiate the market research process early in the product or service creation phase. This is important for several reasons, but certainly not limited to:
- The research data can be built into the product, not used as an afterthought;
- Market data can be implemented effectively, especially in regards to media buying;
- Finding the right pricing structure to build accurate budgets.
Market research can also be a unifying factor within your company. If a department has a certain belief about the market that isn’t shared by the rest of the company, market research will either dispel or prove their point of view by using research conducted by an independent agency. This will eliminate tension between departments and ensure that every employee is on the same page of the project.
Many consider the most important part of market research the competitive analysis. A through competitive analysis may open your eyes to some hard truths you may not have admitted on your own, such as the vitality of the market you’re heading into or the dominance of market share that your competition has. While this may be a tough pill to swallow, it can help you avoid a dangerous decision to go to market with a product that won’t sell. Of course on the other side of the coin the competitive analysis may reveal that you have a great opportunity in the marketplace!
An important strength of utilizing a third party market research firm is the ability to conduct a blind study. A blind study can shield your brand from any sensitive issues or tough questions you want answered. It’s best to remove your name from any research that might create a ripple.
A common line of thinking that companies use to discount the need for market research is that their industry is too complicated for an outsider to understand. That’s not to say that it isn’t a complex industry, but that’s why you need to choose a research firm with plenty of experience. NBRI prides itself on years of experience and robust benchmarking data. NBRI benchmarks are used to consistently deliver accurate and actionable market research that other firms simply cannot offer.
Even if you’re still in the brainstorming stage, put NBRI’s market research to work, don’t let another great idea be written off!