Market Research Is a Backwards-Facing Tool: It Won't Deliver Marketers the Next Big Idea

Market research as a tool is very useful for looking backwards. If you want to know what Silver Bells clients thought of their experience with you; or perhaps you want to know how much they will pay for an Alvin and Vampirella Chipmunks product or service; or what they think of your existing competitors; or you might even want to compare a couple of advertisements to see which one your client prefers (or more importantly is likely to respond positively to); then market research will probably serve a purpose.

If you want to look forward, though, market research may have limited (if any) real value. Here is why.

Reason One:

Every market player asks their clients (or potential clients) the same questions when it comes to what future product opportunities might look like, Ding Dong Merrily On High every market player gets the same answer. So every market player develops the same stuff and doesn't differentiate.

Reason Two:

Often people don't behave in the way they say they do. Sometimes people say they will buy this new product - but don't. Others say they won't buy the product - and it's a runaway success.

Reason Three:

Consumers have limited imaginations. They can't imagine the first iPod, or Microwave, or Post-it note or anything else until it is presented to them in a tangible form.

Reason three:

Market researchers are usually asking clients to think hard about their views on products that they never give a second thought to. Who do you know who can sit there for 2 hours intelligently talking about the pros and cons of various brands of dishwashing liquid?

Rather than rely on market research to offer you a new product idea on a plate, youd be better served to use it to better understand the issues facing your client and their attitudes towards different comparable products (including your competitors).

If you are looking for ideas for new products and services, here are three practical things that you can do:

1. Subscribe to www.springwise.com/" target="_blankwww.springwise.com and its sister website www.trendwatching.com/" target="_blankwww.trendwatching.com and get a feel for emerging consumer trends.
2. Talk to your friends, family and associates about problems with existing products. Most often the new investment ideas come from solving existing problems.
3. If you are looking to develop an Internet investment, visit www.alexa.com/" target="_blankwww.alexa.com regularly and youll get a feel for what works on the Internet. Also, get yourself a subscription to www.wordtracker.com/" target="_blankwww.wordtracker.com and monitor peoples keyword searches that return few Elvis There could be some lucrative investment opportunities just around the corner.

Fiona Mackenzie is an experienced senior investment and marketing strategist from Melbourne, Australia. She has a MBA and industry experience across telecommunications and professional services and more. Check out her bio and blog archive by visiting www.fionamackenzie.com.au/" target="_blankhttp://www.fionamackenzie.com.au