Research

Instinct and common sense are important when making decisions.  But when it comes to making marketing decisions that affect your company’s bottom line, make sure you are relying on more than just a hunch that what you’re doing is right. You need research.  Timely, cost-effective research can uncover valuable information that can help you better reach your target customers and motivate them to the desired action.
           
In broad terms, research is the search for and retrieval of existing or new information for a specific purpose.  Specifically, marketing research concentrates on understanding the behaviors and preferences of consumers in a market-based economy.  Good marketing research provides the facts and direction that managers need to make important marketing decisions.
           
There are many types of research and the type you chose should be based on what information you hope to gain and how you plan to use that information.
           
Probably the lowest level of research is using previously published data available in the marketplace.  While you can sometimes find basic research data at no cost, most data with any substance is available only if you pay for it.  This type of research is known as secondary research.  Secondary research seldom comes in a form that meets your exact needs.
           
Primary research is when a company gathers its own original data. While this likely will cost more than secondary research, the expense of collecting your own data specifically designed for your needs can be justified if the added value of the information exceeds the cost of obtaining it.
           
Most business owners do not have the time or resources to effectively conduct research themselves.  Using a professional ensures that the research is structured, conducted and interpreted properly.  In addition, research conducted by a third party will be more objective both in how it is done and what conclusions are drawn.
           
There are a number of different techniques to perform marketing research.  Some of these include brand equity research, brand name testing, concept testing, demand estimation, distribution channel audits, positioning research, sales forecasting and test marketing.
           
Brand equity research seeks to find out how favorably consumers view your brand, while brand name and concept testing help gauge acceptance by target consumers.  Distribution channel audits gather valuable information regarding distributors’ and retailers’ attitudes toward your product, brand or company.  Positioning research explores how the target market sees your brand relative to that of your competitors and what your brand stands for.  This information can be a powerful tool to help you make better decisions that more closely align with your company’s marketing objectives.
           
Another popular method of research is the use of focus groups.  A focus group is a group of people who are recruited and brought in to discuss a certain topic.  These groups can serve a number of purposes for a company and play an important role in determining marketing and advertising strategies.  One of the most common uses for focus groups is generating ideas and helping to identify concepts that are appealing to the participants.  Once these positive concepts are revealed, development of actual campaigns can progress.
           
Getting your message to your target audience is obviously a major component to your marketing strategy.  There are numerous mediums you can use to drive your advertising and marketing messages:  television, radio, newspaper, billboards, direct mail, the internet and more.  But which ones should you use?  To know which mediums to choose, businesses need to determine who their customers are and who they want as customers.  Rather than blindly throwing darts at who these people are -- hoping you get it right -- a more effective strategy is to research which mediums your customers are using and when and how they use them. 
           
One of the biggest mistakes you can make in advertising is selecting an inappropriate medium to communicate to your target customers.  If you want to reach mothers with children, advertising on TV sports channels probably isn't a good idea. If you want to reach golfers, a fashion magazine won’t be your vehicle of choice. And, why use a far-reaching medium like a daily newspaper when you really want to communicate only with people who like to water ski.
           
By learning all you can about their demographics and buying habits, you can allocate dollars to the correct advertising mediums and effectively reach your intended audience.  Not only will your message be heard by those you want, you will save money and increase sales.  It is also important to regularly monitor your customers to identify changes in buying behavior or other factors that could affect your marketing.
           
One of the barriers most companies face when it comes to marketing and advertising research is budgeting the dollars to make it happen.  A good rule of thumb is to spend 10 to 15 percent of your marketing budget on research and testing.  Allocating adequate resources to fund research will increase the chances of your company achieving its overall marketing objectives.
           
While marketing research provides no guarantees, it can reduce the level of uncertainty in the decision-making process and increase your company’s probability of success.  In a business climate of constant change and increasing competition, it’s vital that you take the necessary steps to find out more about your current and potential customers.  Your efforts and investment will be reflected in your company’s bottom line, and our instincts tell us improving your bottom line is just common sense.

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