It’s likely that you and others in your organization are currently enduring the seemingly arbitrary decisions, frequent changes, and general chaos that often accompany the annual budgeting process.  As you look forward into the coming year, give very careful and realistic consideration to areas in which the organization will need new or deeper market intelligence to effectively deliver on objectives and spend those budgets wisely.
Of course, the trick is balancing the need for market research with the pressure to do more – and to do it faster and with less.  What’s our advice for overcoming that dilemma?  Push back.  Take a stand.  Show how the lack of business intelligence has led and could lead to bad decisions that, in the end, will cost the organization much more time and money to recover from than the upfront research investment.

For example, it’s estimated that a quarter to a half of marketing campaigns fail, depending on the size of the business.  Though they’re costly to develop and execute, many campaigns don’t effectively sell products or strategically position a brand against those of competitors.  The same goes for new product launches.  The vast majority of new products struggle to survive, much less meet optimistic sales projections.  And, even if all is well on the product and marketing fronts, many organizations can’t seem to get ahead in the game because customers are defecting for reasons yet to be accurately identified and corrected.

Yet, consider the market leaders in your space – those companies known for their powerful brand identities, innovation, customer-centric cultures, and impressive market shares.  They understand the value of market research as a strategic investment in uncovering market opportunities, mitigating risk, and measuring performance.  They include it as a standard budget line item – an absolute given – for the fact-based insights necessary to:

•    Develop meaningful marketing campaigns that resonate and move the needle with the target audience.

•    Introduce new products and services that the market actually needs and wants.

•    Prioritize and implement operational and performance improvements that convert dissatisfied or only somewhat satisfied customers into loyal customers.

So, how much should you budget for market research – and how do you protect it from those holding the ax?  That depends.  Click here for some initial guidance, and then give us a call.  We can help you sort through the many issues related to developing a realistic research budget and approach within the framework of your research objectives.  (Just because you can’t afford to spend what you should on market research doesn’t mean you shouldn’t do any at all.)  We can also share tips on how to effectively demonstrate to others why the organization can’t afford not to invest in current and accurate business intelligence.
 

 

To avoid unintentional biases from participants – including exaggerated criticisms and praise – most research firms recommend that clients conceal their company affiliations at focus groups.  That’s why focus-group facilities have a back room with a one-way mirror in which those from the client organization can view the discussions.  In fact, Market Connections also instructs clients to avoid using their company name when arriving at the focus group facility and, instead, to say they are with the research firm.

However, sometimes the nature or subject matter of business-to-government or business-to-business research requires that this rule be broken.  For example, if the objective of the focus group is to get feedback on a highly specialized and complex subject matter – such as a high-tech product concept or a biochemistry procedure – the research firm may recommend that a client representative conduct the demonstration.  Regardless of how much they prepare, it’s unlikely that even very talented professional moderators would be able to effectively respond to some of the participants’ technical questions.

In this situation, it’s optimal if the client representative can present the demonstration or concept without revealing his or her company affiliation.  Often times, the research firm and client can remove or hide company names and logos from products, presentation tools, and so forth that are used in the focus group.  If this isn’t possible, then the next best option is to save the portion of the demonstration that reveals the client’s identity for the end of the focus group.  And, if one of the goals of the focus group is to obtain participants’ reactions to the client in conjunction with the technical concept, this too should occur as late as possible in the session.  Again, postponing the exposure of the client’s identity as long as possible will help minimize participants’ biases.

To maximize your research results, rely on your research partner’s advice when it comes to if, when, and how your company’s identity is revealed in focus groups.  And, trust the moderator to guide you down that pre-determined path as he or she is leading the session.