Six market research myths
While market research is a widely recognised and proven way of gathering insights into specific markets, audiences and topics, it also comes with a few preconceived ideas.
Here is a non-exhaustive list of some of the most common misconceptions surrounding market research:
- High cost
- Time-consuming
- Relevance or applicability
- Complexity and data overload
- Scepticism about accuracy and reliability
- Negative impact on creativity and innovation
If you have been influenced by any of the above-mentioned misconceptions, then you’ve also been contemplating the benefits of conducting research.
While some of these raise interesting questions and market research may initially seem daunting, taking the first step in understanding the reality behind those barriers is the right thing to do.
1. Market research is expensive
Market research can be perceived as expensive, especially for small businesses or start-ups with limited budgets. The costs can include hiring research consultants, recruiting participants / sampling, conducting surveys, analysing results and investing in training and tools.
In reality, market research creates long-term value
While there are upfront costs associated with market research, the insights gained will ultimately save businesses money by guiding strategic decisions, preventing costly mistakes and optimising resource allocation and ROI.
Market research agencies should also work around their clients’ needs to suggest the best approach for their budget, so they can get the most out of their research.
2. Conducting research is time-consuming
From planning and execution to analysing the data, conducting thorough market research takes time. Some may think it is yet another step that will delay the decision-making process, or even argue that by the time the research is completed the data may well become obsolete.
This can be especially true in rapidly changing markets, so to make quicker decisions some companies prefer to rely on what they think they know.
Saving time and resources with market research
Though market research may take time, rejecting it on the grounds that it will save time can be short-sighted. Market research provides a solid foundation for informed decision-making, saving precious time and thinking space in the process. Making decisions based on data rather than intuition also empowers brands & organisations to remains relevant, customer-centric and competitive over the years.
For businesses operating in rapidly evolving markets, conducting regular market research allows them to monitor industry trends more accurately so they can adjust their tactics in real-time. This also enables them to anticipate and proactively adapt to changing consumer preferences.
Our recommendation would be to proactively build research time into your project plan. Doing this will ensure a successful set of findings from those extra days/weeks spent understanding your audience.
Bonus tip: when conducting market research, the key to future-proofing your findings is to carefully consider their longevity.
3. Your data is not relevant or useful for you
Sometimes, businesses may feel that market research won’t provide any new insights, especially if they believe they already have a deep understanding of their market or customers through historical data, or even their own experience.
Additionally, some might question whether market research is relevant or applicable to their problems or objectives, or that it may not be possible to address the key issues or questions they have.
Leveraging market research to challenge assumptions
In reality, businesses often collect data that is irrelevant, or hard to interpret due to volume, and doesn’t generate any meaningful recommendations or insight.
Market research helps organisations collect the right data, and highlights when it’s relevant for them to broaden their horizons. For example, focusing on a specific segment of the market or industry without also analysing the broader trends or influences that affect it can be very detrimental to a brand.
Even when businesses know their market well, conducting research allows them to challenge those assumptions by revealing new insights that may have been overlooked. This validation provides additional knowledge for strategic decision making, uncovering blind spots and unveiling the “why” behind the data (which for example can be useful when building or developing a brand narrative and messaging).
4. The findings are complex and overwhelming
Designing effective research methodologies, understanding the data, interpreting results and devising strategies based on research findings can be a complex process, which requires expert knowledge that not all businesses have access to.
Sometimes, organisations may also experience analysis paralysis due to the overwhelming amount of data they have to sift through, where too much information makes it hard to take decisive action.
Market research for focused decision-making
Rather than leading to analysis paralysis, the role of market research is to actually bring much needed clarity to businesses, helping them streamline decision-making by highlighting clear, actionable insights so they can:
- build solid foundations for their future strategies
- design a clear path to success
- maintain momentum
5. Your data won’t be accurate or reliable
Some might question the accuracy of research findings, particularly if the research relies on self-reported data from surveys where respondents may not always provide accurate answers or produce high-quality and reliable data.
There are many factors that can affect the validity and accuracy of the data, such as sampling errors, response biases, measurement errors, or ethical issues.
Providing data confidence for all
While scepticism about data accuracy is valid, any market research agency will go above and beyond to ensure their data is reliable and fit for purpose, and that their clients are confident in their research.
Strict quality checks should be conducted by researchers so businesses can confidently promote their findings and build authority while protecting their reputation, without worrying about a third party challenging the legitimacy of their findings.
6. Focusing too much on research will kill your creative spirit
There’s a view that excessive focus on market research might stifle creativity and innovation within organisations and that teams might become too focused on catering to market trends and consumer preferences rather than thinking outside the box.
Taking a balanced approach to innovation
Market research doesn’t have to hinder creativity; instead, it can inform and inspire innovation. By understanding customer needs and market gaps, businesses are able to develop new products, features or services that are both innovative and aligned with market demand, increasing their chances of success.
Have you carefully considered market research for your business?
In addition to the above, other parameters could be influencing your decision in a negative way. For instance, if the answer to any of the questions below is a ‘yes’, then it may be time for your business to conduct proper market research:
- Do you rely too much on intuition or simply don’t know what to look for?
- Is your decision-making process based only on historical data within your business?
- Do find yourself mostly looking at what competitors are doing to inform your approach?
