6 Common Mistakes of Market Research

We have previously highlighted why you need to conduct market research for your business. In this brief article we discuss some of the most common mistakes made when conducting market research. 

Market Research Mistakes 

DIY Market Research

Conducting market research yourself is better than doing no research at all and does have some benefits including cost savings.  However, most companies do not have the time, resources or expertise to perform this research effectively.  Internal employees are not trained on data analysing techniques, they will also have to attend to other everyday work tasks and thus have very little time for market research. In addition they will often only contact their own customers, rather than focusing on the total market. 

Cheapest Option

Market research may seem expensive and some businesses make the mistake of hiring the market research company offering the cheapest rates.  The reality is that you often pay for what you get; do not choose a Market Research company just because they have the cheapest quote. Do a full evaluation of the research company and don’t make your decision on price alone. 

No Goal 

Market research can provide valuable information about your business environment and market, yet you need clear objectives regarding the type of information you are looking for before you start with the research. Simply doing market research for the sake of doing research is a pointless exercise.  Whether you do market research yourself or use a market research company, make sure you define the market research problem and objectives. 

Incorrect Research Methodology

You need the correct tools and techniques to perform market research effectively.  Too often, market research is ineffective because the incorrect methods or wrong techniques are used to gather the data, resulting in poor or unreliable results.  Each method of market research is suited to different situations and the nature of the data you are trying to gather. 

Poor Analysis and Reporting of the Data

One of the most common market research mistakes is lack of quality analysis and reporting on the data gathered. For market research to have any benefit you must be able to fully understand the data and effectively report those findings. The report should be detailed, informative and well written and most importantly easy to understand for the decision maker.

The wrong Market Research Company

In South Africa there are many market research companies and it can be difficult to choose the one suited for your business.  A common mistake when planning a market research project is to hire a company that has no experience in the area or subject of the research needed. For example, a research company that specialises in consumer research will find it very difficult to conduct an effective market research project for an industrial client.  Always hire a Market Research Company that has a solid track record in the market you want researched. 

George Klein and Associates is a full service market research company with extensive experience in the Commercial and Industrial markets. 

 

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