Stella: Hi Nathan. Shall we compare ideas for our assignment on market research?
Nathan: Good idea. So first in the assignment, I think we should explain what 'market research' is. One definition I found was this -- gathering information about consumers' needs and preferences.
Stella: I like that, nice and clear. So then, we need to establish the benefits of market research. Why do it? I read that many business people think it's about finding the next market they can exploit. But it's more complex than that.
Nathan: I agree. To me, 1it's about unpredictability. Markets can change unexpectedly. But if you've done research, you can 1minimise the chance that something will go wrong in your own business.
Stella: That's a really significant point. You may also learn the most effective means of promoting your business.
Nathan: But that depends on the business. It's not a general advantage.
Stella: No, you're right. But I do think, 2the sums you invest in market research, 2you'll see a return on that eventually.
Nathan: That's it exactly. Great point. The trouble is, too many of those working in business take a short-term view.
Stella: OK, so there are benefits. But there are criticisms of market research, as well. We should acknowledge that in the assignment.
Nathan: But some criticisms are more valid than others.
Stella: Like?
Nathan: Well, apparently some managers say they're just too busy. But that's a poor excuse.
Stella: Maybe they think they already know everything they need to know?
Nathan: Maybe they do, but that's an issue with them, not with market research.
Stella: OK, fair enough. But I read an interesting study out of the USA showing that the results of a lot of market research are just 3unreliable. The supposed developments identified by the research 3never occur.
Nathan: Yes, that's a good point. Then, another question is, can businesses actually see if market research is working? I mean, is it possible for a business to say categorically that increased profits resulted from market research?
Stella: But that's a criticism of how businesses are structured, not research itself.
Nathan: Yeah OK. Though you've got to admit, market researchers love jargon. These are examples from one report I read -- 4'psychographics', 'coolhunting' and 'asynchronous research'. Some people are bound to be 4put off by these terms.
Stella: Yes, that's a reasonable complaint.
Nathan: So, what about sources of information for market research? Which sources of information work best? I mean, we all know that putting cameras in stores tells us a lot about consumer behaviour.
Stella: Yes, that's well documented. But I read that managers can learn a lot about social trends just by doing really obvious things, like keeping up with the news on 5TV, radio and digital networking sites. I hadn't thought it could be that simple.
Nathan: No, me neither. Then there's a lot of data put out by bodies like the national census and the civil service. That can be helpful.
Stella: Maybe, but it depends on the business. 6What I hadn't expected, though, was the evidence showing that 6talking to consumers directly about their preferences really works.
Nathan: Yeah, 6I was a bit taken aback when I read that. But apparently, it's more effective than internet questionnaires and polls.
Stella: I think people are less likely to be honest in questionnaires. Now listen and answer questions 27 to 30.
Nathan: All right. So, if a business wants to use its own resources for market research, what's the process
Stella: Good question. Let's think about a company that isn't using outside consultants, but doing it internally. Then I think the first step is staff education. You've got to get all employees committed, to maximise the chances of success.
Nathan: Agreed. Then, you need to show staff examples of what they can do every day.
Stella: You mean in 7their interactions with customers?
Nathan: Yes. 7What, precisely, should they ask customers in order to get valuable information? Show staff the sorts of things they can ask 7on a daily basis.
Stella: OK. And next, I was reading an article by the BQR Group. Apparently, staff need to 8keep an account of what the customers are saying.
Nathan: You mean on computer, or by hand?
Stella: The format doesn't matter. But, say, 8every Friday, they should add to the document. So they build up a picture of customer opinions, and the insights aren't lost.
Nathan: Good point. Right, next, I read about ways of motivating staff. Business Guide magazine had a report on the importance of maintaining motivation.
Stella: So, what, by looking ahead and deciding what to do next?
Nathan: Well, in fact, Business Guide's approach is to 9get your staff together round a table as frequently as possible to discuss their findings.
Stella: That sounds like a good approach. Next, you need to provide detailed feedback about any changes you decide. So everyone can see the outcomes of the research.
Nathan: Nice idea. Then you have to ensure continued participation by the staff. You want market research to be ongoing, not just a one-off.
Stella: Oh, this is the idea of 10delegating, so that each staff member is accountable for market research in one area of the business.
Nathan: Yeah, exactly. And then another aspect of this is...
