Have you ever stood at a crossroads in your business, facing a big decision with no clear answer? Maybe you’re launching a new product, trying to understand a shifting market, or simply trying to get your team to agree on a path forward. This feeling of uncertainty is precisely where market research comes in.
Think of market research as a puzzle or a mystery that needs solving. When an organization considers it, something important is happening. There’s a high level of uncertainty, and the stakes are high. Employees may not have the answer, they may lack confidence in the current direction, or they might have biases pulling them in different directions.
Market research is the quest for information—the key that can unlock the mystery, break the gridlock, and help solve an organization’s most pressing problems. But it’s not a magic wand. Let’s explore why, when, and how to use this powerful tool effectively.
The “Who”: Should You Do It In-House or Hire an Expert?
Once you’ve decided to seek answers, the next question is: who should conduct the research? You have two main options: using your internal team or contracting an external expert. Both have their pros and cons.
Why You Might Hire an External Market Researcher:
- Objective Viewpoint: An outside expert brings a fresh perspective. They aren’t influenced by internal politics or pre-existing beliefs, allowing them to be more objective than internal stakeholders who might be too close to the project.
- Specialized Expertise: Let’s face it, despite living in an information-rich world, true market research is a specialized skill. Many organizations simply don’t have this expertise on staff. While colleges are now churning out graduates in data analytics and related fields, a seasoned researcher brings experience that a textbook can’t teach.
When to Keep Your Research In-House:
Keeping research internal can be a smart move, especially as new tools make it easier for non-researchers to gather data. Consider using your internal staff when:
- Speed is essential: Your team already understands the company’s background and issues, requiring little to no ramp-up time.
- Objectivity is less of a concern: The project is straightforward and less likely to be derailed by internal bias.
- You have the expertise: If you have a skilled internal team, conducting research in-house can be quicker and more cost-effective.
- You can build on existing knowledge: An internal team with deep institutional knowledge can leverage that information to produce incredibly rich, actionable recommendations.
Warning Signs: When Market Research Is the Wrong Tool
While market research can be invaluable, it’s not always the right answer. Knowing when not to do it is just as important as knowing when to start. There are situations where it can be ineffective or, worse, unethical.
1. When You Can’t Measure What Truly Matters
Sometimes, you can gather all the data in the world and still miss the most important piece of the puzzle. The most famous example of this is the “New Coke” disaster.
In the 1980s, The Coca-Cola Company spent millions on research to compete with Pepsi’s sweeter taste. Blind taste tests were conclusive: people preferred the new formula. Confident in their data, they launched New Coke. It became one of the biggest product failures in history.
What went wrong? The researchers measured taste, but they failed to measure the powerful, emotional connection and brand loyalty customers had to the original “Classic” Coke. It wasn’t a lack of resources; it was the inability to measure an intangible but critical factor.
2. When the Goal is to Manipulate, Not Understand
Market research should be a tool for discovery, not deception. If the goal is to unfairly influence a decision or manipulate public opinion, you are misusing it.
For example, a campaign manager for a young politician once wanted to conduct a voter survey. However, the goal wasn’t to understand voter concerns. Instead, they wanted to use biased, loaded questions about the opponent to generate negative headlines. This isn’t research—it’s propaganda. Using market research to sway the media or push an agenda is an ethical red line.
Making the Right Call
Understanding the motivations behind a research request is the first step toward becoming a savvy decision-maker.
- Ask why: Is there genuine uncertainty that needs clearing up?
- Ask who: Does your team have the objectivity and expertise, or is an outside perspective needed?
- Ask if: Is this a situation where research can provide real answers, or are you trying to measure the unmeasurable or push a biased agenda?
Market research is a powerful compass for navigating business challenges, but only when used wisely. By knowing when to use it, how to approach it, and when to put it away, you can ensure your organization is always moving in the right direction.