Jon M. Huntsman School of Business

learn about the latest and greatest from the School of Business

Thursday, May 17, 2012

Getting Consumer and Marketplace Insight

Getting Consumer and Marketplace Insight 

I wish I had a dime for every time someone called me up, bursting with excitement, over some brilliant new product idea they just had. Inspiration strikes in some strange and wonderful places; washing the dog, looking for car keys, or flipping the remote.  The thought emerges, “Gee, I wish someone would invent something to make my dog smell better, or find my keys, or keep my remote handy.”  Presto, the idea is hatched, and the product begins to take shape. 

Sometimes the ideas are pretty good, and often the inventor has already dreamed up a catchy name, like “Smooch Your Pooch Sweet Smelling Shampoo.”  But marketing a successful product should never begin with a focus group of one. The problem with many of these homegrown inventions is that the inventor becomes so intoxicated with his idea that he starts building momentum before he tests the concept.  He violates the most important rule of the marketing game:  Honor Thy Consumer.

Everything in marketing begins and ends with the consumer.  Before you can sell your product -- before you even develop a product -- you must understand what the consumer wants, and design your offering to meet his or her needs.  You may want a dog that smells like the Rose Queen, but do other consumers share your desire -- and will they pay for it?  If your product concept is on the mark, then your job is simply finding the best way to communicate that you’ve got the goods consumers want.  It’s a basic concept:  you can’t create a need that isn’t there, and you can’t argue consumers out of what they want.   

Consumer is Key 

Knowing that the consumer is at the heart of every marketing decision, researchers have invented ingenious techniques to get in tune with the consumer.  Consumers have been ambushed, bar coded, spied on, and even hypnotized in the quest for information.  Companies pour millions of dollars into research every year to help them understand what consumers are thinking, and how the marketplace is changing. 

But here’s the big question:  if you are looking at the same studies and doing the same types of research as your key competition, how is it possible that you will gain insights different -- and better -- than theirs?  The answer:  you can’t. 

Creating Intellectual Competitive Advantage 

Top companies understand this fact, and force their marketing personnel to go farther than standard research methodologies to gain broader and deeper consumer understanding.  This is where they create competitive advantage. They teach their marketers how to beat competition at the consumer learning game, where all good marketing begins.   
So how do the top companies get better information than the competition?  By spending millions of dollars, right? Wrong.
Top marketing companies teach their marketing personnel to gain strategic consumer insight through everyday life…watching TV commercials, browsing in stores, and talking with friends and family. 

It sounds too ordinary to be true, doesn’t it? Paying attention in everyday life is nowhere near as exciting as launching a half-million dollar research project, complete with one-way mirrors and hidden video.  But don’t be fooled by the trappings of research.  Top companies know the best way to gain real world experience is in the real world, and they’ve made a science of it. 

The Discipline of Observational Learning 

At Procter & Gamble, the company rule is if you travel to another city, for business or pleasure, you are required to visit at least three stores that carry your brands and competitive brands.  You walk in, look around, analyze the situation, and submit a report of those visits upon your return.  Why?  One reason is to try to pick up any competitive activities or test-market products that may have been slipped into a market, but the primary purpose is to teach the discipline of in-store, walk-around learning.  There isn’t much to inspire new thinking in the typical office cubicle, but a store is filled with a wealth of stimulation to help you develop wonderful new ideas.
Give it a try. Go look for a few new products this weekend and see what you find. 

Eric Dean Schulz
Sr. Lecturer - Marketing
Co-Director of Strategic Marketing & Brand Management
Jon M. Huntsman School of Business

No comments:

Post a Comment