The ability to make strategic decisions has become a major factor to keep a company afloat in the face of global credit crunch. This is especially so because one wrong management decision could wipe of a business fortune.

According to the Managing Consultant, Enterprise Strategies Consulting Limited, Mr. Philip Eyam-Ozung, the most crucial time to undertake research is during an economic downturn when competition for the customers’ money is high. He says, “If you want to stay ahead of the competition conduct some valuable market research. Your competitors will no doubt be curtailing their market research effort, so, the more you know what your customers and your competitors’ think, the better off you would be.”

Experts say business success is now hinged on the ability to make well-informed and strategic decisions and one way to go about this, according to them, is to make decisions based on research which combines a systematic and objective analysis of data. The Chief Executive Officer, RMS Nigeria Limited, Mr. Adeola Tejumola, states that it is imperative for businesses to invest in sound market intelligence that would give them a distinct advantage and reverse the dwindling fortunes in the business world. He also comments that the information gained through marketing research could guide an entrepreneur’s most important strategic business decisions. He says, “Marketing research gives strategic insight that grows businesses, enhances planning and decision making as well as gives direction on where to put resources which are increasingly shrinking now as a result of global meltdown.” The President, National Institute of Marketing of Nigeria, Chief Lugard Aimiuwu, also espouses that to perform successfully, business owners and managers must know their markets; customer attitudes and needs; competitors; and their competitive position. These according to him, can be done through marketing research that helps companies become proactive in making value-adding decisions.

He adds that inadequate knowledge about consumers puts a company at a distinct competitive disadvantage. Speaking on how marketing research could change the fortune of businesses, the RMS boss states that it guides businesses in communicating with current and potential customers. He adds, “With research, you should be able to formulate more effective and targeted marketing campaigns that speak directly to the people you are trying to reach in a way that interests them.” According to him it is imperative that businesses spend time and energy uncovering what these customers think about their products or services. Tejumola states further that businesses identify opportunities in the marketplace. He says for instance, “if you are planning to open a retail outlet in a particular location and have discovered that no such retail outlet currently exists, you have identified an opportunity.” He says, “Business savvy leaders use empirical research information to identify and define opportunities and problems in the marketplace. Once this hurdle is overcome, they generate, refine and evaluate their marketing actions, which are monitored within a given time span.”

Marketing research also minimizes the risk of doing business and in view of this; experts believe that the fortune of any enterprise is on its way to be changed for the better if the risk of doing such a business is reduced. Eyam-Ozung says “Instead of identifying opportunities, the results of some market research may indicate that you should not pursue a planned course of action.” Noting that marketing research uncovers and identifies potential problems, he says, “Information acquired through research may indicate that the marketplace is saturated with the type of service you plan to offer. This may cause you to alter your product offering or choose another location, meaning that you have identified a particular problem. Market research also creates benchmarks and helps track your progress. “It is important to know, for later comparisons, the position of your business a particular moments in time. Ongoing market research allows you to make comparisons against your benchmark measurements, as well as chart your progress between research intervals.

The Managing Director, Digicast, an Australian digital production company says, “You might establish a benchmark measurement of your target market demographics and learn that 65 per cent of you customers are women between the ages of 35 and 50. One year later, you again survey your customers and learn that this age group now represents 75 per cent of your customer base. You are tracking a trend in your customer demographics.” Tejumola adds that one of the strongest impacts of marketing research on businesses is that it improves profits. His views were captured by an American Strategic Price Consulting firm, Atanga Inc., which says, “It eliminates profits leaks, processes breakdown and inefficiencies. It recommends a holistic pricing strategy that enables substantial increases in business results: your growth; profits and revenues.”

Commenting further on research, the company says,”Your marketplace consists of customers, prospects, lost business contacts, former customers and (possibly) channel partners. Marketing research elicits information from about each groups’ perceptions of value, and its decision drivers; determines their willingness to pay for your products or services and assesses what drives their purchase and payment decisions.” According to Tejumola, “Information gathered through market research helps you to determine if you are reaching your goals. If not, this information can indicate a needed change in marketing strategy.” -Culled from The Punch Newspaper, April 15, 2009