Market research is one of the most fundamental and important aspects of public relations (which is, of course, strategic communication when practiced at its optimum level) and marketing. Without undertaking scientifically rigourous market research, it is not possible to precisely know target audience/stakeholder:

• knowledge
• perceptions
• behaviour
• issues of concern
• influences on their knowledge, perceptions, behaviour
• communication modes that they utilise and/or that contribute to influencing them.

Market research provides communication professionals with this valuable information. The best market researchers and communication professionals then take this a step further: they evaluate the information. It is then used for purposes such as shaping communication, prompting organisational change and the refinement of products and services.

The importance of market research prompted me to ask one of Australia’s leading and most experienced market researchers, Adrian Goldsmith*, to answer some questions on market research and its utility and relevance for public relations and marketing professionals.

I admit complete bias in extolling the virtues of Adrian’s work. He has provided me with valuable advice and countless insights, often purely out of generosity (rather than cash!), especially during my tenure managing communication for the Australian Nuclear Science and Technology Organisation. (NB. This interview will run over the course of three posts.)

I started by asking Adrian what is the value of market research for a strategic communication professional?

“The true value of market and social research for strategic communication professional is the power that comes with KNOWING the current state of mind of the audience of interest on the issues of interest. By knowing, strategies can be developed, refined, implemented and measured with confidence and communication activities made more effective as a result.

Without such knowledge, the communications professional is flying blind and working off an unsound basis – the risk being that they misread the audience or the issue and present the wrong messages in the wrong way and end up scratching their heads in consternation.”

What are the key fundamental aspects of market research that a strategic communicator should bear in mind?

“There are a number of key aspects to bear in mind:

• What is the research to be used for?
• Who will see the research and to what end? (For example, will it be presented in public or just internally?  Is the research being used to support a business case or for simple reassurance /validation of a decision already made?)
• How important is it to have hard numbers versus feelings / indications?
• What outcome are you seeking from the research process / use?
• Are you prepared to listen to and act on the findings?

The answers to these questions will help to determine what, if any, research should be done and what types of techniques are likely to provide the best avenue for doing so.  If the research will be used in a very public way, for example, as the foundation of a major public release it needs to be highly defensible, robust and virtually bullet-proof.  If it will be seen at board level to assist in decision-making, it needs to be able to stand on its own and paint the right picture”

What communication successes have come about that, in your view, would not have occurred without the insights market research has provided?

“Two examples spring to mind – one involving a major sporting event, the other a major health outbreak.

For the sporting event, there were so many parties / players involved in the event that a coordinated, consistent and coherent approach to communications was essential. Underpinning every element of the preparation and staging of the event was a multi-faceted, ongoing and highly strategic research program consisting of qualitative, quantitative and tracking research activities.

Without a steady stream of information and insights, the event would not have been proclaimed ‘the best ever’, nor would the public have embraced and engaged with the event as powerfully as it did.

The second example required an incredibly quick response to an urgent worldwide outbreak.

Put simply, the client needed to know what was in the minds of the general public to enable concise and swift response through communications. Quick-fire research, coupled with overnight telephone hook-ups and heavy involvement of the researcher in planning the communications, meant the client could step confidently before the cameras and microphones and speak to its members and the wider public on safe ground.

Central to the success of this activity was the reassurance to the industry players that the peak body ‘had things under control’.”

My perception is that the rigour of market research provides a scientifically-founded basis on which to make marketing communication and organisation-stakeholder relationship decisions that, otherwise, are pure guesswork.

“Whilst I understand the pressure on decision-makers to make decisions, often without the luxury of time to think too long or undertake the necessary research, I continue to be amazed that organisations will happily spend hundreds of thousands, even millions of dollars, making a formulation change, introducing a new process or launching a new product or service. Yet they baulk at spending the necessary amounts making sure of the decisions that support the move are sound.

An investment of a little as $10,000 for a $500,000 decision will pay itself back very quickly and will provide the reassurance to financiers to spend the larger amount with confidence.

Consider the alternative – burning half a million because your gut told you it was the right way to go! It takes a lot of guts (and perhaps balls) to be able to do it without research.”

What are the great myths/assumptions of market research that you have most frequently found yourself having to dispel over the years?

“The most prominent myths relate to the ease / simplicity of doing research to produce outcomes. Research continues to become harder and harder as audiences fragment, needs change and the demands of clients snowball. And the expectation is that it will cost the same or even less to repeat a study a year later!

Quite simply, the true value of research is not viewed by most in terms of ‘opportunity cost’, rather than in ‘pure cost’ terms. And when it comes to a cost perspective, lowest cost rarely means best value or most beneficial outcome when research is concerned.”

What is the best advice you have ever given that wasn’t taken?

“One of the best pieces of advice I gave involved a managing director who chose not to listen to or believe the findings of a customer satisfaction study. Despite clearly suggesting that a repeat of the study would yield results within a few percentage points above or below those originally obtained, he wanted the results ‘validated’ by another study for an additional $30,000. So I obliged, went back two weeks later and presented results that were three percentage points lower than the first lot…and I presented the results with an almost imperceptible smile.

A second example involved a recommendation to a certain political party that a certain element in a communications strategy be tested, despite the desire to ‘keep the powder dry’ for the campaign. The element wasn’t tested and with 24 hours of being launched, had provided significant negative public comment, news coverage and backlash – all of which may have been avoided or better managed if the element had been tested.”

What do you think about Adrian’s thoughts? Is undertaking market research a worthwhile investment? What is holding professional communicators back from undertaking it more frequently? In your experience, is the cheap and easy (e.g. SurveyMonkey) methodology just as useful as paying the big(ger) bucks to professional market researchers?

[In the next instalment of the interview with Adrian, he will discuss issues such as the ethical dimension of market research, ROI and the relevance of market research to reputation evaluation. The third and final instalment will have a strong social media-relevant dimension.]

[*Adrian Goldsmith has worked in the market and social research arena for nearly 20 years – four years with AGB McNair and nearly 16 years with Quantum Market Research as a principal, director and part-owner for most of this time. His primary role was in the planning and conduct of market and social research for a wide range of public and private sector clients across Australia. He spent much of his time undertaking a diverse array of studies and providing strategic advice to organisations as varied as state and federal government departments and agencies, leading financial services organisation and major events organisers. For reasons of confidentiality, the names of the organisations for which he has worked cannot be revealed. He departed Quantum in July 2009 to pursue new and different interests.

He has developed research expertise in a number of areas including reading public opinion, identifying the nature and extent of opportunities, clarifying the impact and effectiveness of communications, measuring client / stakeholder satisfaction and providing wise counsel to a vast array of organisations. He has spent the majority of his time providing timely, robust and reliable information on which organisations can make high quality decisions]

Tweet This Post