The real value of market research

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ARROWPOINT-Market Research and Insight Solutions

• The Real Value of MARKET RESEARCH

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Research can add immense value to strategic
business decision making and result in a
measurable return on investment. The value of
market research is not just about making more
money it can also be used to significantly save
money. It does save you the cost of getting it
wrong. The most successful companies have been
successful because they know and understand the
market they operate in and can take efficient
(marketing) actions. If we look at big companies
such as HUL or ITC, for example, its common
practice to test markets before the start of a
marketing campaign or the launch of a product.
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However, market research is not only for the big
companies. It is accessible and affordable for
SMEs as well. There are several ways to keep the
costs of research low, including using
custom-tailored surveys testing key aspects,
partnering with other businesses to conduct a
survey, can utilize syndicated approach including
Omni Bus models and using cost-effective online
tools. The right kind of market research will
help you understand and target your customers
demands. It delivers the basis for strategic and
tactical decision making to grow your business
and increase sales. What is right for you in
terms of research methods and solutions will
depend on your goals and objectives. What are you
trying to achieve through the research? What are
you aiming to change or do differently as a
result of the research? In other words, market
research needs a clear objective to be able to
help you achieve your business goals. It needs to
have a clear aim to uncover information relevant
to your specific purpose. A recent Key Research
study showed that the most common reasons for
using market research were to identify trends
and opportunities, to ascertain consumer
perceptions of the organization and its
competitors, to evaluate marketing and
advertising, to develop new products/product
extensions and to avoid risk. Nearly three
quarters (74 percent) of responding Indian
businesses stated that they undertake regular
market research projects.
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Every research project and the development of its
methodology needs to be based on the respective
business goals and objectives in order to add
value and deliver the best return on investment.
This includes the selection of a research method
or a combination of research methods, the sample
size and scope of the research, and the selection
of target groups and time frames. More than facts
and figures. Facts and figures unfold their full
meaning when they are analyzed in a specific
context, such as a branding or marketing concept,
customer satisfaction, new product development,
profitable investments or new market
penetration. But research is about more than
facts and figures. The key consideration is to
obtain strategic recommendations which can give
direction to decision making. How can research
assist you in achieving your goals and increasing
sales? Researchers can ask your customers what
they think about your products or what they like
or dislike. But they should also ask if they
would buy more or do anything differently if you
changed the product to suit them better. Rather
than simply reflecting a picture of the past,
research should offer a guide to the future.
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Instead of delivering a statement like You have
35 percent share of the market, a well designed
research project can deliver actionable
recommendations, such as You can increase your
share to 40 percent, gaining an additional 3
million, with a new service aimed at the 55 age
bracket. Market research has now been transformed
into a profit making investment delivering
strategic insights. Of course, these strategic
insights then have to be turned into actions.
With the knowledge about what your customers want
and how to give it to them, you can optimize your
products or services and maximize your
profit. After all, business is about making money
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