Importance of market research in an economic downturn
11/17/08 / David Kennedy
The economy is on a downturn and, with businesses bracing for the effects, you’ve probably been hearing plenty of strategies for how to thrive during this tough period. And the foundation for any good strategy is good information.
Market research is just as important, if not more important, during a tough economy. When times are good there is plenty of room in the budget to try several strategies at once, but with tightening budgets (and availability of credit), businesses and organizations have to get things right the first time. Moreover, this is an opportunity for companies and organizations to position themselves for the eventual rebound.
Market research helps keep you informed off your markets so changes can be made quickly and the best strategies are pursued. Specifically, market research can help you:
- Identify changing needs and perceptions (what are your customers top needs in this economy?)
- Identify your best customers (and just as importantly, who isn’t your customer)
- Provide the best value to your customers (what services can you provide or bundle to give added value?)
- Differentiate against your competitors (what are your competitors doing? how can you zag when they zig?)
- Create messaging and identify selling points that will resonate with your audiences (once you know the above points, what is the best way to communicate your message?)
- Measure marketing effectiveness (what campaigns are actually producing business?)
- Reduce risk in rolling out new advertising and new products (what do your ads really communicate? what tradeoffs are people willing to make with products in a category?)
To give you an actual example of how market research has benefited our clients, Corona recently created a brief summary of a past project (with the client’s approval). To see the full Sashco, Inc case study, please click here.
Even the bad companies can survive when the economy is strong, but only the great companies survive when the economy is faltering. While we cannot control the economy, we can certainly control the future of our businesses.
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