5 myths about market research

Many companies do not do any market or customer research at all. That’s fair enough, but has the decision been made for the right reasons? In this article, we address some of the more common misconceptions about market research and the truths behind them.

1. Market Research is Only for Big Companies

Myth: Market research is only relevant for large corporations with massive budgets or hundreds of thousands of customers.

Reality: Market research is essential for businesses of all sizes. In fact, research may be even more beneficial for small businesses, it helps them understand their niche better and they could become better equipped to compete with larger companies. Small businesses and startups can use more affordable options such as competitor analysis, market reviews or smaller online surveys to make informed decisions.

You may think that, because you have a small number of B2B customers, suppliers or distributors, you know everything about them. You don’t. When you sell large volumes to few customers, it is even more crucial to ensure they are happy.

2. Market Research is Expensive and Time-Consuming

Myth: Conducting market research requires a huge budget and months of work.

Reality: While some research projects involve significant efforts or manpower and can be costly, there are sometimes multiple ways to achieve the outcome. Plus, the insights gained can actually save money in the long run by informing strategy or decisions to launch new products or close down branches. It is an investment in your company’s future.

You tend to get what you pay for with research. Do you plan to make important strategic decisions on the back of the research, or plan to follow up the results at a later date? Then it is definitely worth ensuring it is representative and done correctly.

Surveys take time because we want to give respondents some time to complete the survey. It is important to collect sufficient responses in each respondent group so that the results are solid and balanced. With hard-to-get respondents this can mean making appointments at a time that suits them.

3. Market Research is Only About Surveys

Myth: Market research is just about asking people questions through surveys.

Reality: While surveys are valuable, market research also includes focus group, in-depth interviews, member/customer data analysis, competitor analysis, social listening and other tools and techniques.

Sometimes a survey is not sufficient, or your target audience does not have enough in common for a survey to make sense. Often, a combination of techniques is required. Many research projects have a desk research part to them, because a survey without the proper context or understanding of the customers base, the market or the competitive landscape can be a wasted effort.

4. Market Research is Easy

Myth: It is easy to do market or customer research using inexpensive online tools such as Microsoft Forms or Surveymonkey.

Reality: Questionnaire design is not as easy as it looks. While the tool may be easy to use, each question must be designed so that the objectives of the survey are met. The type of question and how it is rated can have big consequences for the results. Respondents will give up on badly designed or lengthy questionnaires featuring unclear questions and response alternatives that they feel do not apply to them.

The results must be robust and representative. This means that the sample must be segmented according to its characteristics, while ensuring enough responses in each category (for example geographical area or type of customer) with quotas in order to make a full analysis possible. It is also essential to avoid bias and weighting may be required.

You will also need to interpret the data and put it into context. Sure, the software may produce some nice charts, but do they make sense for your business and have you gained valuable information that can be acted upon to improve your business? Once the results have been put into context and interpreted you may discover that you did not ask the right questions of the right people and have to start all over. An agency will ensure you get it right first time.

5. Once Research is Done, It Doesn’t Need to Be Repeated

Myth: Market research is a one-time activity, and once you have the data, that is it.

Reality: Perhaps the most useful types of market research are customer satisfaction tracking surveys and market trackers, which allow you to see how things are changing over time. Perhaps there was a temporary issue at a particular branch which affected the results the first time?

An ongoing research programme also allows you to follow up on continuous and one-off improvement measures. Did you go live with a new e-commerce system, train the staff or launch a new service? Then you will want to know what difference it made.

The macroeconomic environment, customer preferences, market trends and competitor strategies also change over time. Continuous market research ensures businesses stay relevant and adapt to shifts in the industry.

Don’t dismiss market research. You will miss out on valuable insight to inform your strategy and risk losing out to your competitors.

Find out about the different research techniques here: Tools & Techniques – MRA Research