What is your consumer insight budget?
Posted by Jason Dunstone on August 6th, 2007 at 1:27pm
Good marketing is about engaging, connecting and empowering consumers. It is about being creative in understanding the market, identifying gaps and opportunities. While risk taking and intuition is vital, successful marketing strategy doesn’t come from misguided assumption or arrogance as to what consumers want, think and do. Successful marketing is about getting deep inside the lives and minds of consumers, sparking emotions and ultimately stimulating action.
Market research and other forms of consumer insight are fundamental in this. Not a nice to have but a vital tool in ensuring that an enterprise’s marketing is relevant, properly targeted and achieving the set goals and objectives. According to Australian Bureau of Statistics figures more than $1.3 Billion is spent on market research services per annum in Australia. This compares with a $8.8 Billion spend the report estimates on advertising services. Based on this, research expenditure is equivalent to 15% of that of advertising.
What is your employer’s market research budget? While it is reasonable that a 15% spend on research would be excessive for many enterprises, having a general rule-of-thumb is important. Marketers failing to have a reasonable research budget are not giving appropriate respect to their consumers, customers, audiences etc. There are very few organisations with research budgets of more than $100,000 in South Australia, with research budgets well above this level common in all other states.
Worldwide expenditure on market research continues to increase, year-on-year. Global market research expenditure is more than $27 Billion with the complexity and strategic focus continuing to evolve. Some interesting statistics illustrate how the research industry has changed in recent years. According to the Association of Market and Social Research Organisations (AMSRO), the organisation representing Australia’s research companies, 30 per cent of research spend is online research, 21 per cent for focus groups, 18 per cent for telephone, eight per for face-to-face quantitative research and in-depth interviews and only one per cent for mail. The rapid growth in professionally conducted internet based market research is quite fascinating.
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Posted by costumes on October 26th, 2011 at 12:41am