Many entrepreneurs and even management professionals simply dismiss the use of marketing research as an expense, rather than as an investment. For most people marketing research is nothing more than conducting surveys by asking people a set of predefined questions, compile the answers and then tabulate into quantitative reports for presentation to management.

In this two part article, I attempt to show you how useful proper and timely marketing research can be, in a typical product lifecycle. The output of which can provide valuable insights and what I shall call the “ah-ha !!” effect to business development and marketing strategy.

In this example, I have created a fictitious company that has invented and developed a car that can fly.  As the management team or entrepreneur, your task is to advertise, promote and market this car globally.

Where Do You start?

In a typical new product lifecycle, assuming the product functions as it should, the first task of any marketing strategy is to define a marketing concept, image and branding.

Should it be called a “car”, a “flying vehicle” or some new word?. Think “motorcar”, “fax”, “photostat”, “motorbike”, etc. How did these words come about? We immediately know what they refer to, but today they are deemed obsolete. The “motor” is no more. “Fax” is replaced by email and instant messaging. “Photostat” is old school, while “scanning” is new school.

1. Concept Development

You first need to develop on this idea by putting some concepts and benefits to the product invention. What do you want people to say about this product? What feature or attributes do you want to promote? What sort of conceptual image or idea do you wish this product to possess?  Eg: Do you want people to remember “the ultimate travel machine to get you there on time”, or “no more traffic jams”?

The marketing research tool to use at this stage is concept testing, where you invite selected target audiences, in a focus group setting, where the entire concept and scenario is presented and reactions/responses recorded. Most times, the respondent’s body gestures or first reaction is captured as that usually reflects the true response of the general public.

2. Brand Name

As with any product or service, you will need to give this product brand name. Simply calling it a “flying car” will not work as you will not be able to trademark the brandname. Calling it “ZZ2FLY”, or “SKYMobile” or anything in that realm may or may not mean anything to different consumers around the world.

The marketing research for this is called Brand Name testing. It is critical to ensure the branding test be done before all else, as a wrongly named product could result in a failed campaign, or worst yet, a negative connotation of the product may result.

3. Advertising Creation

While the product is being developed and produced, the advertising, marketing and promotion part of the business has to begin. This involves the storyline, advertising message, creative and talents required, and medium of advertisement. Here, decisions will have to be made as to who will be your target audience, your target consumers, your target users, product positioning, pricing, product placement and product features to highlight. In the “flying car example”, suppose we decide on the following:

1. The vehicle will be positioned as a premium luxury model,
2. Only limited quantity will be produced for the first three years and booking will commence six months in advanced,
3. The vehicle will feature safety, comfort, style and elegance of owning and driving.
4. You can “takeoff” vertically when stuck in a traffic jam.

This marketing research activity is called Advertising pre-test studies, where you can gauge the reaction or responses from the selected test group to determine their acceptance or rejection of the advertisement campaign planned. The storyline, message and even the use of celebrities/actor has to be carefully chosen.

Up to this stage, you have successfully created the entire concept, brand name, image and advertising concept. Next month, we continue with the rest of the product lifecycle and the type of marketing research tool that can be used.