7 Keys to Marketing Genius: Research Pitfalls
The following is an excerpt from The 7 Keys to Marketing Genius by Michael Daehn
Two dangers in the research process are over-researching and overemphasizing results. There is tremendous value in gaining feedback, but some companies are paralyzed by overanalyzing and therefore do not act. They continue to gather information, but are not sure what the data means or what to do with the data. Some opportunities will be missed if they are not grasped immediately. There comes a point in time when marketers must act on the best information available and use their judgment. There is always risk involved in making business decisions. That is why not everyone is in business, and those who take the risk are rewarded with success or failure. Making some kind of move leads to a better understanding of the situation.
For example, if I am not sure how to price my hockey sticks, I would do some initial research to determine the price. The results range from $50-60. Eventually, I am going to have to go with my own decision. If I price the stick at $55 and sell very few, I will adjust the price down to $50; but if I never enter the market, I am not going to get the additional information I need to adjust to changes (Key 7).
The second danger is overemphasizing research. People behave differently when being observed. When respondents are asked questions on surveys, in focus groups, or interviews, they tend to give favorable responses. There is a big difference between what a customer says they will buy on a survey and what they actually buy when strolling down the supermarket aisle. Market researchers have named the phenomenon Heisenberg’s principle of uncertainty after the great atomic physicist.
Do your homework; get as much information as possible and then act. Once you have implemented a promotion, gain more feedback and adjust to changes (Key 7). You can never do enough research to know anything will work without a doubt. As in every other facet of life, marketing requires an element of faith.