Week 3

This has been another week where I find myself full of new knowledge. In fact, I thought the reading I had done last weekend had been done in a week prior. Maybe it’s just all this heat, I can’t be sure. Anyway, Prof. Spotts asks us to add a couple things to our blogs this week in addition to our typical posts so I think I will start there.

First, I wanted to look at another student’s question they posted. This question came up in many postings this week, including my own.

‘According to Druker, “Don’t do the market research for something that is not yet on the market.” This statement is a confusing to me. How this works with innovation, which Druker previously said was a corner stone of business? How does one know what to create without market research? Especially if Druker also discredits expert opinions.’  – Megan M

This became a little more confusing because it seemed to contradict some of the videos we watched this week. Drucker also states that quantitative data should not replace a marketers instincts and their gut feeling. I think basically Drucker is saying that a marketer has to know what they are doing to make good decisions consistently. You cannot replace a marketer with a number crunching computer.

He does not say to discard market research altogether. I think some quantitative research can be helpful even for new products. Conducting a focus group that you show the new product to can give some great feedback to assist in the decision making process.

 

Reality testing is another form of testing that may be useful. We were given the example of the Chrysler Company making a prototype convertible and driving it around town to gauge the reaction the public has to the vehicle. This seemed to work well for them. It may not also be practical with every product but when possible it may be very valuable.

We were also given the example when IBM passed on the opportunity to enter the market of personal computers but they decided this new market was too small and was not worth the investment. The same opportunity was not passed by Apple and they saw great success. IBM relied too heavily on research compiled for a market with a product that did not yet exist. Apple on the other hand relied more on instincts and they had a strong feeling that this would be a hit.

 

This is also an example of how important it is to ask the correct question. If you ask the wrong question then you will get data to support a wrong answer. IBM asked how large the market for home computers is. They did not ask what a home computer can replace that is currently on the market. Eventually the computer replaced the type writer which had a large captive market that liked this new technology.