Four Flaws to Avoid in Market Research

Market Research is an important process that must not be neglected within an organization, yet there are many common mistakes that occur that can prevent innovation from sparking in a business. Here some flaws that Scott D. Anthony sees in traditional market research approaches. He’s detailed them in his latest post on Harvard Business Publishing.

  1. Talking to the wrong people: Marketers generally try to understand the wants and needs of the most demanding existing customers. Innovation usually comes from a business’s worst customers and to those customers it doesn’t serve yet.
  2. Asking the wrong questions: Most companies ask the question, ‘What do you want’. Customers do not know the answer to this, and so we must instead we should focus on problems that customers face.
  3. Data is being analyzed by the wrong people: Most of the time, senior leaders and market research firms are interpreting data. Important information should be passed through decision-makers to make sure signals don’t get lost along the way.
  4. Don’t make bad decisions based on market research data: Taking market research data in non-existent markets too seriously is a bad idea, but using early-stage market research as in input on innovative processes is a good idea.

Inevitably, market research is crucial to a business’s survival, so make sure that you are asking the right questions and talking to the right people.