This is the first in a series about some of the most common myths people have about market research. These myths dramatically color how housewares companies view – and use — market research. I will be debunking these myths about market research over the next seven weeks.

 

Whether your job is in marketing or product management, there are times when you need more information before you can make an informed decision. When done correctly, market research can give you that information.

Yet, if I told you that a market research study could provide you with the information you need, you would probably tell me that you couldn’t afford it.

You, like so many people in the housewares industry, are laboring under a serious misconception about market research.

Myth: Market research is too expensiveMyth #1: Market research is too expensive.

Sure, market research costs money (although probably not as much you might think). But … if you have a major decision you have to make — one that could cost the company a lot of money if you make the wrong decision – you can’t afford NOT to spend on market research that will give you the information you need to make the right decision.

Consider the cost of the research in light of the value in upfront decision-making confidence.”

As Jess Schwartzkopf, Marketing Manager at market research provider GutCheck, so eloquently put it in his Nov. 11, 2014 blog post, “The question is not so much about cost as it is about risk. … You have a choice to make upfront: invest the money now or invest more money later. What is it worth to know in advance that a new product will likely test well before you spend the money to launch it? Think about how hard it will be to explain to your boss why your new product failed, or why your most trusted brand’s market share is slipping, when you could have prevented it with quality consumer insight earlier.” 

You should also consider the cost of the research in light of what it will cost the company if you make the wrong decision.

Let’s say you need to decide which new product ideas to develop and which ones to drop. A concept screening test that costs $7,000 to $10,000 could save you tens of thousands of dollars down the line by weeding out the ideas that test respondents did not like.

Let’s say you are at the point where you need to make a go/no go decision on whether to have tooling made for a line of new products.   A product concept test that costs $15,000 to $20,000 could save you hundreds of thousands of dollars in tooling costs by weeding out the products that test respondents say they don’t like, don’t need, don’t think are unique, and wouldn’t buy.

The Lesson: Don’t be penny wise and pound-foolish.

When you need more information before you can make an informed decision, invest the money now to get the information you need to make the right decision or invest more money later to fix the mistake.

 

Keep in mind that market research projects can be tailored to fit any budget.  As your research partner, I’ll work with you to get the information you need at a price you can afford.  

If you are having trouble making a major decision because you simply don’t have enough information to be able to make that decision with confidence, take advantage of my complimentary 30-minute telephone consultation. The consultation is absolutely free. This offer has NO hidden strings of any kind. After our conversation, you get to decide whether there are any next steps.  CLICK HERE TO GET STARTED.