"Thank you VERY much for pulling together the summary for my new Home Décor business. The information provided was very detailed and insightful. Your efforts on our behalf will certainly help us as we enter a new business category.”
In our last blog we stated that it is important when doing research to do quantitative work to get a cross –section of consumers demographically. Put another way, you are not your consumer. Most of the management teams we work with are better educated (often MBA’s or MFA’s) who are older and more affluent than their target consumers. As stated previously they have a higher level of awareness and understanding of the category than their target consumers. However, they very likely also have greater purchasing power and probably a higher level of taste than those consumers as well.
SIMPLY PUT, CONSUMER PRODUCT PREFERENCES OUTSELL MANAGEMENT PICKS.
At Lenox, we compared the results of consumer preferences through research with the results of management picks. Not picks because management personally liked the proposed designs, but management picks based on management’s perception of which designs consumers would like the most. When we compared actual sales results of the two groups – designs introduced based on management decisions versus designs introduced based on consumer preference – the latter group far outsold the former. Management may have had more refined taste, but management was not composed of twenty-something first time brides who were registering for fine china and crystal and flatware. You are not your consumer, let your consumer tell you what to introduce by letting her tell you what she likes through research.
SMART MARKETERS INVEST IN LISTENING TO THEIR CONSUMERS
Smart marketers invest in listening to and understanding the consumer. Companies like Pepsi, Apple, and Proctor & Gamble are known for their significant consumer research budgets. Yes, those are huge Fortune 100 companies – but how do you think they got there?
Rick