Magnus Marketing Blog

Today's lecture is about real market research and why it is so critical to do this early. It amazes me as to why companies enter the market with a product or service and have no clue as to what is really going on from an adoption rate or from a market standpoint. Take the following examples:

Company A: Went to market with a solution expecting that the market was HOT, hot, hot and there would be a ton of opportunity. As with most technologies, however, maturity hit pretty quick with vulture like competitors descending. In less than six hours of competitive analysis, it was determined that the market was in fact - quite saturated. The company must go back to the drawing board and change their solution, first enhancing it with features that are competitive, and then second creating differentiation. Luckily they had some good C-level feedback and strong research to guide them to a quick change. No surveying was involved by the way, these were real conversations with real people.

Company B: Went to market expecting quick adoption because of existing brand equity and perceived demand for services. In reality, a few things are happening: a) internal users are pulling these services in-house for cost savings, b) the company has no major differentiating factors, c) the company is offering same-as-everyone else services - the market is very competitive. It doesn't help that the company can't hire strong people, can't seem to deliver when they do get opportunities, and has not done a thing to market themselves to gain at least some brand awareness.

Hanging a shingle is not going to work in today's environment. Blaming the sales reps for not being able to sell or meet goals is not the answer either. Even blaming marketing isn't the answer. But this illustrates the need to do the proper due diligence prior to entering into any market - make sure that your assumptions are validated. Remember, opinions are one thing, facts are another. Listening to those on the front lines also can literally make or break a company in terms of success.