Testing, testing: 5 reasons why research increases the effectiveness of marketing

Matt Press says marketers should ensure research is at the top of their strategy list to lift effectiveness of marketing.

Pretty much every business markets their products or services, but companies do it in different ways. And they all enjoy differing levels of success. However, one thing always rings true . . . preparation is everything. There are many types of marketing, but no matter which strategy you’re using, research will increase the chances of success.

Here’s why…

Reason 1: Market research reduces guesswork

There’s an element of chance with every marketing campaign, but the more a business knows about their target audience, the greater their advantage. Consider a company that has created a buyer persona and has a very clear idea of how their product fits in the market.

It will be able to create marketing messages with the right branding, pricing and positioning far better than a rival who doesn’t have access to this kind of information.

Also, marketing research allows businesses to improve products or services.

Perhaps that USP isn’t really that engaging. Maybe market research has revealed that consumers want something else.

L’Oreal’s research showed that there was a gap in the market for beauty products that were specifically designed for people from different cultures.

By embracing ethnic marketing and segmenting their market, L’Oreal now execute various multicultural marketing campaigns.

So confident in their approach are they, that L’Oreal are targeting 1 billion new customers by 2020.

Reason 2: Research can identify future gaps in the market

We often read stories of how companies that launch successful products don’t just stumble on winning ideas. They usually have a portfolio of failed products or services that, through research and iterations, finally hit the mark.

Research can help put businesses into their customers’ shoes and get closer to what they really want. Apple is a brand that regularly innovates, but they don’t just pluck ideas out of thin air and create products for the sake of it. Take the iPhone 7 for example. It has a bunch of new features; things that were developed based on specific feedback from consumers. Apple has a cult-like following, but their audience wasn’t satisfied. They wanted a phone that was waterproof, boasted a better battery and had a more efficient camera.

Reason 3: Research enhances relationships

Take trade marketing, for instance. Manufacturers use trade marketing to create demand for products with wholesalers, distributors and retailers. But it’s not just about selling. They need their strategies to connect with people. And marketing engages one party with another.

Let’s not forget that, regardless of the industry, people always buy from people. The best trade marketers around collect consumer behaviour data like it’s going out of fashion. It helps them create marketing collateral that will impress and convince retailers that their product will sell better than someone else’s.

According to studies, 70% of purchasing decisions are made in-store. That means products are fighting for retailers’ attention, either to secure shelf space or, better still, point-of-sale positioning.

Reason 4: Research helps the long-term growth of a business.

In any market, direction is vital. When communicating the benefits of any given product or service, a brand must know whether they’re in it for the long term or not.

Is a business capitalising on a fad? Or is it trying to engage with a target audience and establish a relationship? Are there even enough customers to warrant much of a commitment?

Research will reveal whether a campaign has legs or not.

UK retailer John Lewis is a great example of a brand that has put a lot of emphasis on using content to build long-term connections with their target audience.

Their in-house research clearly pinpointed the power of video and viral content some time ago. Fast-forward a few years and their highly anticipated Christmas ad campaigns make the news for months. Their Christmas 2016 advert featuring ‘Buster the Boxer’ has generated more than 21 million views .

Reason 5: Research reduces the risk of a marketing campaign failing

No-one can predict the ROI of a given marketing campaign. We can make an educated guess, but that’s it. Therefore, some companies leave themselves very exposed. In particular, small businesses, start-ups and entrepreneurs require low-risk campaigns.

It follows, then, that the more research a firm performs before it begins any campaign, the better. It’s not just a question of fine-tuning the messaging either. Research can help uncover potential problems with a product or service as well.

History is littered with failed marketing campaigns [that could have been avoided if the decision-makers had done a bit of research].

For a high-profile example, consider U2 and Apple’s collaboration in 2014. When U2’s latest album was forced onto 500 million desktops and iPhones, the public response was one of pure outrage. As it turns out, perhaps there is such a thing as bad publicity.

So, when it comes to choosing the right marketing strategy for your business, don’t be swayed by the gurus. Work out the strategy that makes the most of your knowledge, because it’s more likely to work.

As pioneering computer programmer Admiral Grace Hopper once said: “One accurate measurement is worth a thousand opinions.”