By: Muhammad Arif – Account Manager of Fortune PR
Let’s say you are launching a new product, and you need to know your customers’ reactions. Will they like your product? Will they buy it? How much will they buy? How much will they pay for your product? What will make them want to purchase your product? Basically, launching a product without this information could be a disaster.
Good market research turns data into intelligence, according to B2B International[1]. Market research is the systematic and objective collection and interpretation of data to help reduce risk in marketing decisions. Understanding regular and potential customers’ needs through market research is one of the best ways to compete sustainably.
The usage of market research is critical for businesses to identify and reach their target audiences, also to boost their profits. If your market research goes wrong, crisis can occur. It is important to pay attention to the 3 most common market research mistakes that usually occur:
- Being unclear about the objectives
The most common mistakes when conducting a market research is not knowing what you are looking for, asking the wrong questions, using the wrong method. You must set your objectives clearly, and that means knowing what information you will need before you begin. So, you can use your research objectives to list the right research questions.
- Cutting costs by using small samples
Relying on small number of in-depth interviews and focus group discussions isn’t always statistically reliable. You can mix the method with quantitative research by conducting surveys that will provide you bigger insights from your customers. Use a broader variety of respondents when collecting data, and pay attention to your sources. One of the mistakes of poor data is the result of not using reputable sources.
- Misinterpretation of statistics
You must have the skill to look and analyze raw data, and turned them into intelligence and insights to make decisions and plan your next move. If you and your company do not own the resources to interpret statistics, you can engage with an experienced research company to avoid all these common mistakes.
Avoiding these mistakes will give much more advantages in finding clear and insightful analysis as a firm foundation and to sharpen your future market plan.
[1] http://www.consultgsi.com/docs/A%20Practical%20Guide%20to%20Market%20Research.pdf
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