Pragmatic Market Research Approaches for More Successful Financial Services Marketing Initiatives

Choosing between alternatives quickly and decisively without solid information is a significant management problem, especially in a financial services organization. However, an effective market research support system can provide the market and competitive intelligence that facilitates sound and informed management decision making.

“To investigate is to see what everyone has seen and think what no one else has thought.” These words from Nobel Prize-winning biochemist Albert Szent-Gyorgyi wisely convey both the importance and proper role of research in any creative process. This is especially true in the world of marketing. Positioning initiatives use market research to identify (or create) a relevant differentiation for a company and/or its products. Market research can also provide valuable information in the areas of product development, messaging, distribution channel effectiveness, and campaign tracking.

Market research is also a valuable tool in ensuring that an organization remains “market-driven,” the mantra of an avalanche of management books over the past decade. Experience shows that not being attentive to the market can make financial services companies

• ignore major market swings and fail to notice when a market has peaked.
• ditch core customers and focus on a new and tempting niche market.
• launch products but have no goal in sight.
• they fail to successfully reach target segments and miss out on valuable marketing opportunities.

Results-oriented marketing research begins with identifying a specific goal and determining the necessary resources. It is important to remember that there are many paths to the top of the mountain, but when you get there, the view is the same. Before undertaking a thorough investigation, it is important to examine alternative approaches. It boils down to working smart instead of working hard, and taking the right market research approach to get the right answers in a timely and profitable manner. Often when the answer is found, it is simple. For example:

• Instead of launching a lengthy research study, a company trying to measure the potential of a new product should review the historical successes and failures of similar competitive products to uncover some very strong and immediate clues about the product’s fate. As Lord Byron said, “The best prophet of the future is the past.
• Instead of spending research resources on site selection studies, a company could identify the best area for a new branch by examining the competition. The fact that a Burger King appears around the corner from almost every successful McDonald’s is evidence of how they have minimized the costs of their site selection activities.

The purpose of marketing research, regardless of how it is accomplished, is to collect the data needed for responsible analysis and then to gain the insights that will support sound decision making. Too many executives back up their decisions by declaring, “Research shows…” and then churning out a series of statistics and graphs. They believe that if they invoke more statistics, the research will be perceived as more scientific. The truth is that no research is accurate, and those who use this imprecise art as a hammer, rather than a management guide, are missing out on its benefits and putting their organizations at a disadvantage.

The focus and essence of pragmatic marketing research is to inform and support management decision making and provide insights to develop new, relevant and differentiated marketing solutions. The main objective of the research is to help ensure that the correct distribution channels deliver the correct product to the correct markets using the correct message. But, if it is conceived and executed correctly, it can do much more. For more information, visit Persuasion Resources.