Tips for making your research work for you, not just cost you.
There was a cute, extremely apropos Dilbert cartoon in the newspaper a few weeks ago. The VP of marketing is examining a new product built by
Not...quite...what the marketing guy wanted, but if the end results are any indication, it's what he deserved. All of the work of my company depends on research, and (conservative estimate here) 90% of research is misguided. So maybe there's hope for Dilbert's company.
Sometimes, I wonder just what companies do with their research money. Spending research money wantonly is no substitute for spending it wisely. It's just as easy to blow a million-dollar budget as it is to spend a $10,000 stake. Only it takes a bit more time. Usually, if you have the millions to spend on research, it involves OPM (other peoples' money) so the dollars are not forced to work as hard as if it were the owner's own money.
The funny part of it is that research can be cheap and effective. Actually it's almost always a lot cheaper than a market failure.
This is the minimum you should expect to get out of your research program, especially if you don't have the big bucks of a Kraft or ConAgra:
* How to flavor and formulate your product consistent with your customers' preferences.
* The exact positioning for your product.
* How to translate your jargon into a language your customers buy.
* What the most important selling promise is.
* The size of your market.
How do you, a researcher or entrepreneur without adequate funds (we never really have enough money) research your market and gather this information without the resources of a megacorp?
Here are some very basic do's and don't's for research.
DO your research personally. DON'T trust your research to housewives bearing clipboards at the local mall. It's not that these people are bad people. It's that they're interested in getting a quota of bodies and going home for the day. You're interested in learning about the subtleties of human behavior that will eventually drive your product.
DO hang out at the local supermarket. Watch how a customer reads labels and makes buying decisions. Ask the customer questions about why he or she bought the product. If you're a manager, get out on the sales floor yourself. Learn about your customers by talking to them. Learn how they speak, and importantly, how they respond. It's a lot better than second-hand information in a research report that no one reads, or even implements.
DO create ads for your product even before you have your product. Paper and markers are cheaper than prototypes. DON'T skimp or create prototypes too soon. People spend thousands on packaging, equipment, and ingredients before they ever explain their product to consumers to make sure there's a purchase interest and a simple selling proposition.
DO focus groups...or create your own. If you can't afford a moderator, moderate them yourself. If you hire a researcher, make sure you attend the groups. Watch how your customers react. If you have a product for kids, go to a local nursery school for sampling, or to local little league games or soccer games.
If you can't afford groups, button hole strangers with products and ads. A major caveat-DON'T ask a friend or a colleague what they think. They'll either be polite and tell you it's a nice or they'll be brutal and say, "This is the stupidest thing I've ever seen". Keep away from the people you know...they're the worst people to talk to.
IMAGE PHOTOGRAPH 1AUTHOR_AFFILIATIONBarry Feig product strategist for Barry Feig's Center for Product Success, where he creates new product opportunities, positionings, and marketing strategies. Visit his website at barryfeig.com or call him at 800-707-0739 for a free presentation. His e-mail is feig@barryfeig. com.