The Value of Market Research
June 18, 2012 Leave a comment
On a recent blog post, I had a reader comment that they appreciated the post and the tips I provided, but they did not see the value of market research. This was driven by the fact, as the reader put it, that market research is expensive. For those of you who are reading this that are in the market research industry, I am sure you have heard this time and time again. For those readers not withing the industry, you may even be thinking this.
However, reader made an observation that I could not ignore, that research is a “waste of time, but effective.” Not knowing the reader, I think I am reading into the comment that although they feel research is effective, a waste of time because of the cost that could be associated with it. I think it comes down to cost versus value.
In any business, those who are spending the money within the organization evaluate the cost of something versus the value it will provide to the organization. This evaluation may be very simple if it is something like needing more paperclips to extensive, like hiring a new employee.
For a marketing manager or business owner to purchase market research services, they go through a similar process. They evaluate the cost of the services versus the value they will receive from that research. Also, they are likely going to look at the value of that research versus the value they would receive spending that money in others areas, like promotional marketing avenues like advertising.
The value we need to show the marketing managers and business owners is to show that market research provides the foundation of how business should focus their operational and marketing efforts.
Let me know what you think?
–J. Nolfo helps companies understand their market and customers though a variety of market research strategies. He has over ten years of experience of market research for strategic planning purposes. He is the Director of Research at Rhino Market Research. He shares his thoughts about market research and business concepts with his blog “Pensare…Understanding Market Research in Business“. If you would like to discuss this blog or how J. can help you understand your market and customer needs, email him at email@example.com.