It is imperative to have a complete know how about the target market before introducing a product or service in the market. Some of the world’s top brands have made these costly mistakes as they did not study their market well enough.
Effects of bad market research:
- Launching the wrong product: People do not like to spend money on products which are not in trend or are not well marketed before it is introduced in the market. It important to uncover the target market by asking the right questions and identify what people like and don’t like. It is also important to analyze whether the captured information is in the right direction. Enterprises usually cross check their facts with multiple research patterns before introducing a new product in the market.
- Launching at the wrong time: Accurately timing the product launch is a very tricky task especially for enterprises that have not conducted proper market research. Along with having the right product, it is very important to target the right audience at the right time. Many enterprises have lost huge amount of money as they failed to capture information about competitors and how the product will sustainably differentiate itself in the market.
- Putting forward the right message: Enterprises are in constant pressure to run marketing campaigns that can drive the right customer engagement model. It is important that enterprises research the potential impactof introducing products in multiple locations to avoid customer embarrassment, as what works in one country may not work in another. This highlights the fact that market segmentation is not only important to determine product features but is also required for designing go-to-market strategies.
- Changing audience preferences: It is important for enterprises to keep pace with changing audience needs and preferences and prioritize their market research accordingly. A product may be performing well today but may soon become obsolete if it does not evolve according to customer’s requirement. Enterprises should focus on research efforts that can help to uncover latest needs and work towards finding stainable solutions to those problems.
Enterprises that released products without due diligence have time and time failed to capture market. They failed because their businesses did not do enough research and consider appropriate metrics while evaluating their audiences. Enterprises should consider keeping market research as an ongoing activity and integrating new information into their strategies at all times.
– Pavan Mudholkar
Sr Research Analyst