Premature? Rather Proactive: Slow moving strategic decisions propel competition forward.
Fulfilling a market research project internally can be costly. “Where do we start? Which resources do we need? What team members will be assigned to this project?” When a new strategic idea is first communicated, the most effective path forward is often unknown. Although at first thought it may seem absurd, relying solely on intuition is a tactic that is still happening each day throughout the world. “Feeling-fueled” business decisions have resulted in failed partnerships, unmatched expectations, and missed goals. Achieving successful market research is possible with various methods, considerations, resources, and team members to not only deliver an industry-specific, but objective-aligned project.
As uncertainty over opportunities in new markets cloud decision-making, time passes. For the internal team, the discussion will be how they can allocate resources to manage this project correctly. Through various B2B consultations, word of mouth suggestions from colleagues who heard “x worked for y”, and conversations over team and new resources needed, putting together a team can prove to be a difficult task. At the same time, competitors are breaking ground on new manufacturing locations, joining partnerships to cut costs and placing their strategic pieces in the market puzzle. Outsourcing market research is a valuable option to include in your strategic framework.
Neutral point of view
Beginning to look at the market from your company’s point of view is a tricky starting point. As with every aspect of life, our experiences and relationships can distort reality, and this can lead to business decisions made without security of seeing the entire picture. The marketing team will have a certain position while the logistic team, for example, may see the potential plan completely different. How does the project begin when the internal teams are not harmonious on the framework of action, resources needed, and a clearly defined project timeline? External factors can also influence perspectives of a new plan. For example, after speaking with a potential distribution partner in a new market, you may hear there are copious amounts of market shares to takeover, a strong growth rate and potential for your product in the country, influencing management to target this market. However, market potential is an elaborate metric and should be calculated from multiple angles.
Evidence is in the data
Data skepticism is still hurting businesses. Although statistical analyses have more accuracy than intuition, some leaders believe their years of experience in an industry take priority over facts, market trends, and shifting customer needs. This can hinder the work and methodology needed at the beginning a new strategy. Although the collection of internal data and years of experience can provide a clearer picture, there are weaknesses in depending only on such resources. Collecting data from various sources is necessary for a comprehensive overview of the market. With qualitative and quantitative resources, multi-faceted research supports business needs with a reliable, data-driven perspective.
The optimal scenario is most likely not reality
When developing a new strategy, realistic planning as well as adequate risk management is essential. Risk management serves as a controlling function that also considers various external market drivers. This can create a good starting point for benchmarking internal interests with external market conditions so that obstacles can be avoided in time and potential can be generated.
DTO, your partner in research and strategic consulting
As market research specialists, DTO has a history of helping our clients with strategic planning and priming their business for immediate and future success. DTO investigates our clients’ core markets at each level with a scientific approach. After an introduction to our potential client, we discuss their research needs and provide consultation. Our experienced consultants with an extensive market research toolbox then conduct effective analyses and deliver relevant market information. As professionals who focus on staying up to date with the best practices and advancements in market research, we support our clients with a neutral perspective, allowing for assessments of competitors, market size, and market characteristics that are essential for success.
Further Information
If you would like to learn more about how your company can benefit from market research, get in touch with us. We would be happy to discuss opportunities and research designs with you so that you can optimally align yourself with the future markets & obstacles of this world..
Text written by Sydney Schüler