Impact of market research on organizations
Market research enables an organization with insights that no one else does. It creates a strong footing for the company to operate in a competitive environment. Often companies depend upon market research as a business intelligence tool to improve operational efficiency. Unfortunately, there are certain misconceptions that prevail about market research. However, organizations can definitely gain over their competitors, if they partner with a reputed market research firm, that can pump authentic and hygienic information so that accurate business decisions can be taken.
Few of the common myths that loom large on organizations are:
- Due to increasing complexity of industries, companies assume that a market research firm will not understand the operational challenges of the company, hence will not be able to help in solving issues. Experienced or not, research firms dedicate both time and resource to understand the client’s business as well as the issues. Market research through thorough market studies can gauge performance issue if any, it can also pin point specific issues or identify budget related problems. Thus, a collaboration between the market research firm and potential client can yield fruitful results.
- Many organizations are under the impression, that with the help of free online market research tools, research studies can be conducted without the help of market research firms. This is potentially dangerous since, an incorrect data can yield inaccurate results directly impacting strategic decisions of the company in question. Moreover, a third party conducting the research will not be biased like an internal employee which can prove advantageous to gain fair information.
- Often clients dealing with sales and marketing do not trust market research, since the professionals doubt, that the research results are manipulated by the research firm to create a report compatible with the perception of the potential reader. Also, there is a constant uncertainty regarding biasness of the researcher that might reflect in the report. Again, a report with incorrect data will generate flawed conclusion. This is definitely a valid concern and in order to overcome it, one should choose the research firm carefully, that is, the one with reputation and credibility.
- A qualitative research methodology using focus group might seem dependable, however exploratory research, although costly, can be ideal due to its volume. More sample size can actually help the researcher analyze better.
- There is misconception about the fact that a market researcher focusses more on time rather than results. This is not true since a researcher consistently tries to improve research methodology to gain valuable data within a time frame, as promised.
- While opting for a market research firm, business leaders are uncertain about the clarity of jargons used across the report, thus making the entire read an ambiguous one. However, the truth is that any research report will not include mere raw data but will represent the insightful information through extensive analysis, delivering it in a presentable format.
- Companies feel unsure of the requirement of market research and the return on its investment. However, an authentic market research can prove impactful in framing strategic decisions and ensuring operational efficiency, thus helping to retain customers, improve sales and consequent brand value.
- Often big companies develop a perception that gathering a lot of data can help gaining competitive insight, but such is not the case. A competent market research firm will gather data as well as analyze and provide actionable insights, that can help the company sustain competitive environment.
- The biggest misconception among organizations is that seamless operational levels are continuous, ignoring the key aspect of competition around them. Entry of new products and services is always a threat to the existing brands, which is why it is essential to stay informed and connected with end users – a scenario which is achievable through market research. It is important not to overlook that a loyal customer is not necessarily a satisfied customer. Thus, it is important to understand customer perceptions and measure vulnerabilities in a consistent manner.
It can be concluded that a reliable market research firm will set goals, time and budget and conform to it. It will also clarify the research process and feasible options to ensure a valid and actionable result, thus helping in the broader decision-making process.
– Kathakali Basu,