Today's Headlines Provide Market Research
Reading Newspapers Can Help Determine the Marketplace
May 14, 2009
Companies can spend hundreds of thousands of dollars on market and marketing research trying to find a niche or looking for new target audiences. Today’s headlines could provide more information about the marketplace than some of the more traditional resources for market research.
Marketing versus Market Research
There are many different text book definitions for marketing research such as defining it as a form of applied sociology focusing on understanding the behaviors of consumers in a market-based economy. Marketing research also tries to understand the success of marketing campaigns in terms of effects and comparing to other campaigns.
Market research on the other hand is broader and looks at all areas of the business environment. It provides answers to questions about competitors, market structure, government regulations, technology trends, and economic trends.
Formal and Informal Market Research
Formal research for market or marketing research often involve surveys, questionnaires, financial analysis, qualitative and quantitative methodologies, primary and secondary, or exploratory and conclusive research. With the uncertainty of today’s markets be it automotive, retail sales, real estate, or even food and beverage the most effective research may be more on the informal side through environmental scanning. Read the daily newspapers – either print or online – and the marketplace is well defined.
Today’s Headlines are Tomorrow’s Market Research
A prime example of scanning the news for the marketplace are the headlines from the Marketplace section of the May 14, 2009 Wall Street Journal. The following headlines were covered:
- “Businesses Quit Slashing IT Budgets”
- “Minority Dealers Hit Hard by Auto Crisis”
- “Dr Pepper Profit Rises but Snapple Business Continues to Suffer”
- “Whole Foods’ Net Falls 32% on Lower Sales”
- “Macy’s, Claiborne Losses Widen”
What do these headlines tell a company about the marketplace? Starting with the first headline, technology sales are on the rebound. If you are a minority, investing in an auto dealership may not be a good venture at this time. Soft drink sales are on the rise and tea and other beverages on the down side.
Organic food prices are too high for the average consumer. High end clothing sales are troubled.
Market Research is a Must
For new startup companies or for those companies thinking of starting up a new product or service line, market research is a must do. The May issue of Entrepreneur magazine offers the following tips for market research:
- Always start with the end in mind, define the goals first.
- Know the competition and how they market.
- Follow potential customers.
- Use online surveys such surveymonkey.com or zoomerang.com.
- Talk to the potential marketplace with in-depth interviews.
Remember to Read the Daily News for Market Research
All of the formal methods used for market and marketing research are effective and help build the foundation of good marketing and business plans. Keep in mind that staying abreast of the business environment through the daily news headlines can be just as beneficial.
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