Market research is the process of gathering information about a market, its customers, and its competitors. It is an essential part of any business strategy, as it can help you to make better decisions about your products, services, marketing, and pricing.
There are many benefits to conducting market research. For example, it can help you to:
- Identify new opportunities in the market.
- Understand your target customers better.
- Develop products and services that meet their needs.
- Create effective marketing campaigns.
- Price your products and services competitively.
- Track your progress and adjust as needed.
Without market research, you are essentially flying blind. You may make decisions that are not in line with the needs of your customers, or you may miss out on opportunities to grow your business.
Companies That Got Market Research Wrong
Today’s business leaders face a myriad of decisions about pricing, promotion, distribution, product features, and more. Truly understanding what consumers like and dislike, what they want and need, and what messaging will connect with them is imperative to a brand’s success.
There are many examples of companies that have gotten market research wrong. For example, who can forget the 2014 Pepsi ad campaign that was widely criticized (rightly so!) for being insensitive and offensive? The ad, which featured Kendall Jenner handing a can of Pepsi to a police officer during a protest, was seen as tone-deaf and out of touch with the current social climate. Pepsi was forced to apologize for the ad and pull it from circulation.
Another example of a company that got market research wrong is Netflix. Netflix decided to split its DVD and streaming services into two separate plans in 2011. This decision was met with backlash from customers, who felt that they were being charged more for the same service. Netflix eventually reversed its decision and merged the two services back together. You’d like to think that Netflix learned its lesson, but I’m not so sure. I don’t have a good feeling about Netflix’s password-sharing crackdown. Time will tell how customers will react to this and whether Netflix has the stomach to weather the storm.
These are just a few examples of companies that have gotten market research wrong. By taking the time to conduct market research, you can avoid making the same mistakes and ensure that your business is successful.
What Can We Learn from These Mistakes?
There are a few key things that other companies can learn from these mistakes.
First, it is important to understand your target customers and their needs. What are they looking for in a product or service? What are their pain points? Once you understand your customers, you can develop products and services that meet their needs.
Second, it is important to be sensitive to the current social climate. What are the hot-button issues that are important to your customers? Make sure that your marketing campaigns are not offensive or insensitive.
Third, be willing to listen to your customers. If they are unhappy with something, be open to feedback and make changes as needed. By listening to your customers, you can build a strong relationship with them and ensure their loyalty.
Market research is an essential part of any business strategy. By taking the time to conduct market research, you can avoid making the same mistakes as other companies and ensure that your business is successful.