Monday, October 20, 2008

Why Market Research is Even More Important in a Tough Economy

“Goals are not only absolutely necessary to motivate us. They are essential to really keep us alive.” – Robert H. Schuller

The smart business owner knows two things – economic downturns are not new, and how we deal with them defines our future success. Continuing to look for growth even in the toughest circumstances is key to seeing any difficulties through. This is why it’s so important for businesses to keep a level head and stay focused with their market research, and make it business as usual.

While it’s natural for us to look at the markets and wonder what tomorrow will bring, it’s also an opportunity to take stock, evaluate how we can turn negativity into positivism and move forward. By keeping a level head and continuing with your current market research plan, you can minimize any risk that your business might face in the current climate.

Think about it – what’s helped you get where you are today? Yes, you may have a great product but if your intended customer doesn’t see it or isn’t interested in it, who’s going to buy it? Market research can help take away the doubt about what audiences go for, and whether your product or service will be accepted. Limiting the risk also reduces the unnecessary costs of a poorly planned launch.

Obviously you need to make sure that certain things come above market research – the ability to meet your expenses and pay your staff. After all, your staff have helped your business get to where it’s at today as much as anything else (if not more so). So of course you need to look after them as much as you possibly can.

After that, you need to make sure your name is the first one in the mind of your customers – old and new – while your competitors are staying in the shadows. To do that, you need to know what your customers (and those of your competitors) are thinking. Market research will tell you all of this and more.

As well as knowing what your target audience is thinking, market research offers two crucial advantages to your company in this type of market:

1. Reduced risk of costly campaigns. Testing your advertising before you go to market is a good way to stay on budget and use your best option.

2. You have access to a company that knows your market; that of your competitors and most importantly of all, can offer you unbiased answers from your potential customers. Well designed market research can get people to really open up and say what they want, without the sub-conscious thoughts of saying what they think you want to hear. That’s how you know to launch a product or service that will be a success.

In this time of economic uncertainty and unstable stock markets, businesses can’t afford to be missing out on a single opportunity. Having a solid market research plan that you stick to in tough times will keep it business as usual.


Jeff said...

Right on. It's easy to slash these type of programs and just hope we'll be successful without it. If anything organizations should increase the budget for research as to ensure all money that is being spent is used effectively.

Scott said...

Great blog Lynnette! I definitely agree that in times like these companies need to focus on what drives there economic engine. Often research, strategic planning and the people are overlooked in down times, but in fact they should be in the forefront.


Revmic said...

I agree, research can prevent wasting money with the old school trial and error approach to market research.

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RNB said...

Many people are spending a huge money upon market research for increasing their business but in this recession we should also focus on our product quality as well as customer service. I think, some where we lack little-bit customer service. For more information about quality market research you can check RNB Research. A big giant of this field.

neeraj said...

Peoples spend huge money on the market, so it is necessary to market research for investing money.

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Marketing Research said...

I agree, Market Research is very important.