Most Common Market Research Mistakes

Market Research is incredibly important in the success of a business. As such, it’s important to consider the most common market research mistake prior to engaging in this activity.

Most Common Market Research Mistakes

1. Confusion over the best method to use

• Most companies know that they want to engage in customer research, but get confused over exactly how to do so.
• A key distinction is deciding whether to engage in quantitative or qualitative data or both.
• While both is generally the best move for a company, not every business has the budget for such in depth market research.
• Thus, it is important to determine which type of research would be most beneficial in the event that only one can be discovered.

2. Ambiguous questions

• Poorly worded questions can lead a company to gather data that is unrelated to what they were hoping to discover, uncover information is that is too vague to be useful, or even dissuade customers from participating in market research exercises.

3. Not knowing exactly what a company is even looking for

• There are plenty of basic questions a company might think to ask during market research.
• However, research undertaken generally in the hopes of discovering something that will be useful is often done so in vain.
• Since market research can be very expensive, this is almost never a good use of resources.

4. Inappropriate reference materials

• Arguably one of the most damaging mistakes to market research, information gathered from untrustworthy sources leads to inferences that are incredibly off-base.
• Thus, it is important to, not only do research on what reference materials are trustworthy, but to also double check information gathered through these sources to confirm their legitimacy.

5. Only using primary or secondary research

• Using just primary or secondary research will not leave the company with enough information to make useful inferences about the market.

6. Deciding to skip a competitive analysis

• Competitive analysis answers questions like why competitors are doing well and how to better a company’s own products in response.
• These questions are important for directing market research.

7. Mistaking quantity for quality

• Some companies make the mistake of assuming that asking more questions will lead to better results.
• However, too many questions can be confusing, lead to the loss of important points in so much data, and even result in customers refusing to engage in market research (when applicable).

8. Choosing the wrong tools for research

• Market research is a very broad process, and there are many tools with which a company can implement research.
• Though every tool has its own value, certain methods make more sense for the goal in mind, particular product or customer type being researched, or resources available.
• Choosing the wrong tool can lead a company down the wrong path, whereas choosing the right one can make all the difference in being successful.

9. Looking at the cost of market research without considering it as an investment

• Market research can absolutely be expensive, but that does not mean the costs outweigh the benefits.
• Unfortunately, some companies make the mistake of considering only the current financial risk of engaging in market research.
• However, market research is an investment and thus has value in the long-term.

10. Incorrectly analyzing gathered statistical information

• Even when a company successfully gathers accurate statistical information, this information is worth very little without a subsequent analysis of the data.
• Working with skilled analysts allows a company to accurately analyze the gathered data and then use that analysis to most successfully improve the company’s outcomes.

Takeaway

Overall, market research is a useful tool, but this is really only true when it is done properly. Given the high costs of implementing market research, a company should take the time to consider all of the most common mistakes made in order to conduct market research that is accurate and effective in elevating a company’s success.

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Post Inspiration: https://www.linkedin.com/pulse/11-common-mistakes-made-when-conducting-primary-market-paul-latimer/