Value of Opinion and Marketing Research

Opinion and Marketing Research -- a multi-billion dollar a year industry dedicated to providing valuable information to companies who provide products and services. More specifically, opinion and marketing research...

• Helps manufacturers identify, understand and meet consumer needs and wants.
• Saves consumers money by providing data to companies to help them reduce the costs associated with new product failures.
• Assists manufacturers and service providers to improve the quality and usefulness of the products and services.

By answering the questions of opinion and marketing researchers, consumers make their opinions on products, services and issues known. Through their direct communications channel with those who have the power to make the changes the consumer wants. It means that manufacturers will incorporate opinions into products, services and procedures.

One major goal - to please the consumer so that they can get or keep his or her business. Opinion and marketing research has played a role in the development of nearly all the products and services. Why? Because consumers asked for it through opinion and marketing research studies.

• Most personal care products and medicines now come in plastic instead of glass containers for bathroom use.
• Non-prescription medicines now come in child-proof bottles.
• Driver's side airbags are standard equipment on automobiles.

Why manufacturers are so concerned with what consumers want?

The answer comes down to dollars and cents. New product development is a very risky business. Research, properly done, significantly reduces the chances of new product failure by screening out ideas that don't meet consumer needs or wants.

It is estimated that only 10% of new product ideas ever reach test marketing. 50% of new products test marketed fail there and 50% of those survivors fail on national launch - leaving only 2.5% of all new product ideas to ever see the light of day. This works out to one success story in 64 new product ideas. While this is still low, it is possible, through research, to find the one successful new product in 64 for far less money than it would take to launch a single product failure. The average new product that fails probably costs around 50 million dollars. Think about it - 50 million dollars is a tremendous amount of money!

And do you suppose manufacturers of unsuccessful new products simply shrug their shoulders and eat the cost? Absolutely not! That $50 million is absorbed into the cost of the manufacturers' other brands.Here are some examples of how opinion and marketing research has been used to develop products that meet consumer needs and wants.

• Sunbeam developed the first automatic shut-off iron. The public spoke, the opinion and marketing researchers delivered their information, the manufacturer reacted, and another safety feature was added to the home.
• Johnson & Johnson responded with a clear adhesive bandage that would be cosmetically acceptable. The company listened to the needs of its customers�and consumers received a better product.

How many consumers have been stopped in a shopping mall or called at home to answer a survey?

Almost 72 million Americans per year are interviewed in an opinion and marketing research study.

Walker Information, one of the leading firms in the industry, did some research - on research. They found that 85% of the consumers who participated in marketing and opinion research believed it led to better products and services - they were right.

Remember to participate the next time an opinion and marketing researcher calls you at home or stops you in the mall - it's your opportunity to be heard!

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