7 Major Market Research Mistakes You’re Making Right Now

There are lots of research mistakes people make. That’s because, in the rush to prove our expertise, we often forget to do our homework. The results can be disastrous.

In the world of research, mistakes are inevitable, so we’ve picked out the mistakes that are most likely crop up in market research. Here are the top 7 that we’ve seen in the market research industry, and how they could be avoided.

Introduction

Understanding the
market and the behaviour of your customers and competitors is essential for any
business. This applies equally to a young company just starting out as to a mature organisation with years of experience. Planning and strategy of a
business requires data and understanding of the market you will serve
, so market research is an important first step. There are many reasons why businesses need to conduct market research, including to define new products or services, identify potential customers, help understand existing customers, determine the viability of a product or service, identify future market trends, stay ahead of the competition, develop a marketing strategy, mitigate risks, and identify threats and opportunities. Although a strong analytical mind, organizational skills
and attention to detail are all you need to conduct market research
, even formally trained market research analysts sometimes tend to make mistakes
. In this article, we will discuss these mistakes and
some programs and/or tools you can use to make market research easier for your
business. But first, let’s understand what defines market research.

What is
market research?

Market research can
be described as the process of assessing the feasibility of a new product or service
by studying the company’s markets, competitors and
customers. For companies, it is a way to get to know consumers and gather information about their wants, needs and beliefs. Market research is the
basis of any successful business. It is generally used to assess two things: 1)
whether your target audience really wants to buy your product or service, and 2)
whether other companies are meeting their needs. The purpose of the
data you collect during market research is to identify and exploit opportunities in the
market. Market research usually covers the following areas
:

  • Information about the market
  • Market segmentation
  • Market trends
  • SWOT analysis
  • PEST analysis
  • Monitoring of brand health

Market research should not be confused with market monitoring. You can read more about market research and
Marketing Intelligence in our previous blog. Now that we have a general idea of what
market research is, let’s move on to the common mistakes that
organizations make when conducting it.

7
Common mistakes to avoid in marketing research

  1. Bad sampling

It is important that you determine your sample before you begin the study. Make sure you involve the right
people, your target audience. By interviewing the wrong people
you introduce bias into your study, which can then lead to inaccurate analyses
. However, it is perfectly acceptable to divide your sample into subgroups for more detailed analysis or cross-sectional comparison.

  • Unclear or poorly formulated questions

You should ask questions that your respondents can answer clearly and unambiguously. If the
questions are vague, biased or too subjective, it will be difficult to obtain
information and conduct a proper analysis. Try to get answers that are not controversial or open to interpretation.

  • Small samples or low response rates

This can be a big problem
in market research, and the mistake organizations make is going
for it. In the end, a small sample size or response rate usually means the same thing as
– that you don’t have enough answers to reach a firm conclusion
. This means that your entire analysis will be flawed.
To avoid this, two things can be done: 1) Try to get a larger sample of
respondents and 2) ensure a higher response rate by giving
respondents a clear call to action and offering them a
incentive for their time.

  • Inadequately formulated or complex objectives

Always start the
research with clear objectives and know what results you hope to achieve.
Poorly defined or complex objectives will lead to confusion and ambiguity during the analysis phase, and your research will fail. Formulate your objectives as questions
to be answered after data collection and analysis
.

  • Conclusions not supported by evidence

Each of your
conclusions in the market research report must be supported by evidence. You should also be
specific about what the outcome means to your organization, who it
applies to, and what can be done to improve it. Your conclusions should also not be
vague and should not include terms such as some, some, maybe
, etc. Also, do not make any radical generalizations or assumptions based on the results of the
study unless you can back them up with data.

Your
market research report should be written so that people in all
functions of your company can read and understand it. Your report should read like a
story and be linear, with each fact relating to the previous
and the next. Use tables and charts to visualize the facts, but don’t overload them in the report.

  • Dependence on one type of data

In order to get a complete and objective picture of your market, it is important to have several sources of information and to conduct primary and secondary research. While you can choose either research method, you can use
Market Intelligence software to collect
secondary market data.

Supplement

The purpose of market research is to find out the demographics, needs, wants and frustrations of the target market. It takes the guesswork out of your business decisions. While
recommends primary research via focus groups and surveys,
market analysis software can be a great help in gathering data on the
market and your competitors. But these benefits are not enough: Regular market and competitive information helps you make business decisions with confidence. Remember that market research answers many important questions
that an organization needs to make its product or service a success
in the marketplace. By avoiding the above mistakes, you will be able to answer these
questions clearly and gain a competitive advantage
in your business activities. Use all possible sources to make your market research as detailed and complete as possible.

Frequently Asked Questions

What are the common mistakes in marketing research?

The most common mistakes in marketing research are not following up with the people you are interviewing, not being clear about what you are trying to find out, and not being clear about what you are trying to find out.

What are the biggest concerns for market researchers today?

The biggest concerns for market researchers today are the lack of good data, the lack of good methods for gathering data, and the lack of good methods for analyzing data.

How can a market researcher make mistakes?

Market researchers make mistakes in many ways. Some of the ways in which market researchers make mistakes are: 1. Failing to take into account all relevant variables 2. Failing to take into account all the data 3. Failing to take into account all the information 4. Failing to take into account all the factors 5. Failing to take into account all the information 6. Failing to take into account all the variables 7. Failing to take into account all the data 8. Failing to take into account all the information 9. Failing to take into account all the factors 10. Failing to take into account all the information 11. Failing to take into account all the variables 12. Failing to take into account all the data 13. Failing to take into account all the information 14. Failing to take into account all the factors 15. Failing to take into account all the information 16. Failing to take into account all the factors 17. Failing to take into account all the information 18. Failing to take into account all the information 19. Failing to take into account all the information 20. Failing to take into account all the information 21. Failing to take into account all the information 22. Failing to take into account all the information 23. Failing to take into account

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