Week 3 - Using Market Research to Gain Consumer Insights

Reflections from the assigned videos


First of all, let me say that having worked in my company as an engineer in the technical realm for the last 18 years, I really have very little visibility to how the marketing department collects and analyzes data about customers' needs. We visit customers and collect their voices and needs, but as the video featuring Malcolm Gladwell points out, often the customer does not verbalize that which is desired. I know that we look at the size of the markets, we segment markets, we look at the shares of the various markets by competitors, etc. We utilize data from consulting and market research firms, we consider external economic factors (such as the price of oil and commodities), and predict trends for demand. I have seen many of the resulting charts and data packages from these marketing activities, but I must admit I have always wondered how comprehensive this information can be. The factors one should consider in the marketing plan for this line of business are seemingly infinite, with many interdependencies and dynamic variables.




Making Data Meaningful - A Scholastic Example



Thus, how does one process all of this data into something meaningful and useful? It reminds me of our foray into considering the role we could play in telematics and what services would be valuable for a customer. Considering all of the data one could collect about the operation of our engine, it would become very easy to get swamped with data overload, and miss something important. In the video featuring Dr. Hans Rosling, I was thoroughly impressed with the way the data was presented. I don't believe I have seen many examples of this approach within the company, despite the seemingly endless powerpoint presentations I have witnessed. How one presents the data makes a huge difference. The fact that the GapMinder software package can also animate the data is extremely useful in understanding trends over time. I also liked the last part where the pictorial to describe the future vision of data sharing resembled a growing garden, as yet another psychological positive emphasis to promote the concept.



The Malcolm Gladwell video got me thinking about how to determine what customers want. I believe that our company has thrived primarily because we have tailored the product to suit multiple needs. Unfortunately, this has resulted in proliferation over time which can also be expensive to maintain. I have been involved in strategy discussions where it has been suggested that we revert product lines into "Vanilla or Chocolate" type choices. However, as Malcolm points out in the description of Howard Moskowitz's approach, people are going to like other flavors and variations in a particular product. I think the key is to find the right balance of product offerings that is going to serve the largest portion of the customer population as possible. If you only offer Chocolate or Vanilla, you may find that you lose big when your competitor offers Strawberry.

As for how I would go about collecting and analyzing market data for the tablet project, I believe one good place to start in understanding customer needs and desires is to look at product reviews on tablets that are already in the market. I believe much can be gleaned from both the positive and negative comments about features that are liked/disliked, what is most important to customers (e.g. ease of use, ability to utilize other media, quality, etc.). Also, scanning articles about the product from news sources can provide useful information. Here is one that was published very recently in the New York Times, that explores whether consumers really like having multiple media avenues for their e-readers.

Finding Your Book Interrupted ... By the Tablet You Read It On
By JULIE BOSMAN and MATT RICHTEL

Published: March 4, 2012

http://www.nytimes.com/2012/03/05/business/media/e-books-on-tablets-fight-digital-distractions.html?scp=1&sq=finding%20your%20book%20interrupted&st=cse
While the article is very interesting, I found the readers comments to the article to be even more valuable. Although a customer can't always tell you what they want in a product when you ask them directly, they are often able to describe it without realizing that they are doing so during other related conversations.