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Question
How would you reply to the small business person who says, “Marketing Research is too expensive, so the firm will just have to get by without it’?
I would first ask the small business person what insight he/she is seeking from marketing research and what decision or action he/she wishes the research to inform. Part of the reason marketing research can get costly is because companies, both small and large, do not have a clear definition of the problem they want the research to solve. When a firm understands its business problem, it will have a good idea of the research approach it should use, and that will help to keep costs in control.
While many small businesses do not have the financial resources to undertake a major nationwide survey or conduct focus groups, most don't need such extensive primary research anyway. Most often, they can get by with secondary research and basic primary research.
As an example, let's say the business owner wants to understand trends in his/her industry, within a particular geographic area. The business owner can find a wealth of data from the U.S. Census Bureau's Web site, industry trade associations, and just talking to his/her customers, suppliers, and even competitors. If a restaurant owner wanted to test a new menu entree, he/she could invite a few patrons for a taste test. The possibilities for inexpensive research are limitless and will add value as long as the business knows first what problem it wants to solve.
A few months ago, I authored a special report entitled, "10 Costly Marketing Research Mistakes (and How to Avoid Making Them)." I wrote this report with small companies in mind. You can download a PDF of this report by going to my Web site: http://analysights.com/Reports.aspx
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Alex J. Caffarini
Expertise
Alex Caffarini is the President and founder of Analysights, LLC, a marketing analytics firm that enables companies to enhance their marketing performance through sophisticated data analysis. Alex has nearly 20 years of marketing research and data analysis experience, specializing in survey research, predictive modeling, and data analysis. Alex’s experience spans several industries, including banking, insurance, retail, consumer packaged goods, and non-profit. Alex has developed statistical models for Harris Bank, NCH Marketing Services, Hammacher Schlemmer, and other companies. He has also designed and managed survey projects for the Schaumburg Business Association, Brocade Communications, and the American Medical Association. Alex has also designed and published a number of market-sizing reports for the coupon and food retailing industries. Alex holds a B.B.A. in Economics and an M.B.A. in Marketing and Quantitative Methods, both from Loyola University Chicago, where he also teaches database theory.
Experience
I have nearly 20 years of marketing research experience across several different industries, including banking, insurance, retail, and non-profit.
Organizations
American Marketing Association
American Statistical Association
Marketing Research Association
Schaumburg Business Association
Publications
"10 Costly Marketing Research Mistakes" was cited in "Principles of Marketing" by Jeff Tanner and Mary Anne Raymond.
Also:
eZinearticles.com
RIS News
Education/Credentials
M.B.A. in Marketing and Quantitative Methods, and B.B.A. in Economics, both from Loyola University Chicago.
Past/Present Clients
Elgin Community College, Harris Bank, Brocade Communications, Schaumburg Business Association
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