Getting best value from market research
Chris Ashworth of CIMCIG identifies some useful sources of free market intelligence, and explains how bespoke research can often help break new markets without breaking the bank.
Many companies will, as a matter of course, devote time and energy to producing regular financial statements, reviewing expenditure and comparing forecasts to actuals. While this is certainly important, it does equate to looking in the rear view mirror while driving. Sometimes looking forward is more important! Market research is the equivalent of looking ahead. It's not a crystal ball (as the past 18 months have demonstrated) but it can provide clues as to what to expect.
Cost is often off-putting. But research needn't be expensive. Indeed, there's a wealth of free market information published by government, national organisations and the media available to anyone wishing to download it. Here are just a few examples:
Office for National Statistics: Includes total quarterly values of new construction orders based on the findings of surveys conducted continuously since the 1950s (monthly since 1980).
Partnerships UK (PFI activity): A database of over 900 public-private construction projects (closed). Includes a regional search facility.
CLG planning application figures: Quarterly statistics sourced from district and county level planning authorities in England, including details of planning applications received and decided.
NHBC: Everything from new house-build statistics to research papers on developing zero carbon homes.
RICS: Includes forecasts and surveys of various sectors of the UK housing and construction markets. Not all information is available free of charge.
CIMCIG: The CIMCIG's 'knowledge hub' is a fast-growing library of publications, contacts and information relevant to marketers within the construction industry.
In addition, some market research agencies publish overviews of their reports which can give you a feel for what is happening. An example for the housing market, published by Competitive Advantage, can be found on their website.
The cost of specialist industry and multi-client research reports is often surprisingly low. If you do commission your own research however, invest plenty of time in developing the brief to ensure that it gives you maximum value for money. The cost of research may be relatively small. Not so the cost of a failed product launch or missed business opportunity. Much bespoke research is about understanding your customers and potential customers. It could take the form of a customer satisfaction survey, or perception study. This will provide you with an understanding of what your customers like about you and your competitors - and what they don't like. Armed with that information you can focus on promoting your brand's strengths and correcting its weaknesses. A common by-product is that you may also identify ways in which to improve customer service and make the company more efficient.
Understanding how your customers behave, and the problems they encounter, often also results in you being able to identify new business opportunities. Once a product has been developed the chances of success at launch are greatly increased if focus groups have been used to gather customers' reactions. Frequently it's the little things that will determine if a product is a success - things that tend to crop up for the first time when customers see and discuss the product.
In today's competitive markets, research is an invaluable tool. It helps companies to differentiate themselves from their competitors, improve business efficiency, and increases the chances of their new products becoming a success.
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Chris Ashworth, founder of Competitive Advantage Consultancy, provides strategic marketing, research and training services to the construction industry. He is a member of the organising committee for the Chartered Institute of Marketing Construction Industry Group (CIMCIG)
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