Top Market Research Mistakes
Before you start any marketing campaign, you should have a written in your business marketing plan a section on market research. This part of the marketing plan is one of the most difficult to carry out. You will need to go out into the world and get information about how your customers react to your product, which individuals are more likely to buy your product, etc. This type of information can not be just brainstormed in a board room, it takes hard data from actual tests, studies, and surveys.
Sometimes, instead of telling you what to do, you can learn as much from learning what not to do. So, here are some of the top market research mistakes that companies make:
- Spending too Much: Market research does cost money, especially if you are hiring an outside firm to gather data for you. However, don't rush in and take the first quote. Shop around and getting different quote, then do some negotiating to get a better price.
- Spending too Little: Trying to save too much money by doing the market research yourself is not any better. Yes, you can gather alot of information on your own but hiring a professional is worth the investment.
- Asking the Wrong Questions: You need to have the right questions in order to get right answers. Questions like "What are the specific needs of my customers?" or "How much would my customers be willing to spend on this product?". With specific questions like this, you will be able to focus you search for information.
- Getting Overwhelmed: At a certain point, you may be gathering alot of data. It will start to become complicated to and there is a tendency to lose your motivation. Stick with it and make sure you finish all your goals you have set out.
- Internet Research Only: The Internet has lots of information, some of it good, some of it bad. The worst part is that you don't really know sometimes if the information is biased or outdated. It's a good place to start your search, but then head out and do some research at your library as well.
- Not Researching the Competition: You need to gather information about your competition. The more you know about how they are conducting business, their pricing, and their strengths and weakness, the more effectively you can establish your competitive edge..
- Not all Questions are Created Equally: There is an art to asking questions. Handing a survey in the hopes that the answers will help you is not enough. Make sure your questions are pinpointed to get the exact information you need from your customers.
- Relying on People you Know: A common mistake of new startups is asking those close to you for feedback on your product and service. Those who know you will not want to hurt you fellings. Friends and family make the worst possible selection of a focus group. You need to talk to impartial customers about the pros and cons of your business and use your friends and family as support not market research.
- Not Enough Data: Incomplete data or relying on only one set of data can be worse than doing nothing if it has steered you in the wrong direction. Make sure you get at least two or three sources of overlapping information.
- Forgetting your Market Research: Sounds strange but it happens all the time. Don't not use your market research because it came up with unexpected results. Over time there is a tendency to lose track of your priorities you have set up in the past as well.