The Value of Research: More Navigating, Less Drifting. (Feature)

By Sablosky, Tanja Lian | ABA Bank Marketing, March 2003 | Go to article overview

The Value of Research: More Navigating, Less Drifting. (Feature)


Sablosky, Tanja Lian, ABA Bank Marketing


Since you know your local marketplace, you can save money by playing your hunches when developing a new product.

Right? Wrong!

Relying on intuition without doing market research is like sailing without a chart and compass.

Let's say frontline personnel pass along some comments they have heard from women customers. The information suggests that these customers would benefit from a new type of service. The question: Do you immediately develop and launch a program based on the remarks of a handful of customers? Or, do you wait and conduct market research to corroborate the hearsay evidence?

If you're like many banks, you'll try to save money by skipping the research. You'll develop a program based on your own knowledge of the marketplace with the help of a few calculated hunches.

Marketer's intuition can work--but it's a risky proposition. It's like a mariner who tries to sail through tricky shoals by "dead reckoning." Just as the sailor needs to supplement his experience with the judicious use of charts and scientific instruments, the marketer should supplement his personal knowledge and expertise with appropriate market research.

According to George Morvis, Jr. of Financial Shares Inc., Chicago, research is essential to sound business decisions. Banks need research to identify target markets and, once they are identified, to gauge the success of market penetration. Even if you know your market well enough to manage without research, a well thought-out, well-conducted research campaign always pays dividends.

Here are some of the things that research can do. It can:

* Confirm your hunches.

* Reveal additional customer information that can have a impact on your business plan.

* Identify opportunities.

* Clarify advertising campaign targets and the media needed to hit them.

"Market research is the process of acquiring, analyzing, and sharing the implications of relevant information for the purpose of making decisions and taking appropriate actions that will maximize business performance," says Teresa Ziebarth, a senior employee with Wells Fargo & Co. and a board member and an adviser for the ABA School of Bank Marketing and Management. "Research is not just used for marketing purposes; it is also used to further define and clarify strategies. Market research is focused on providing information to achieve bottom-line results."

Dr. Tom Fusso of Synovate, a market research firm in Vancouver, Canada, with 76 offices in 43 countries, says research helped a smaller bank he recently worked with claim a larger market stake. The smaller bank was struggling to survive in the same market as a larger bank. The smaller bank conducted market research in the form of a segmentation study and identified two target segments that potentially constituted a profitable niche. The bank tapped its MCIF using the descriptors from these two segments and began targeting these customers. The bank now feels that it is in a stronger competitive situation.

Common types of market research

Market segmentation is just one of four common types of market research, says Fusso. A segmentation survey looks at the entire market and studies customer perceptions and ratings of banks in the area. It collects a great deal of consumer information, too: needs and the benefits they seek from financial services institutions. Once the information is gathered, the segments are clustered into groups according to consumers needs or net worth. These surveys can also provide valuable information on consumer media use: who listens to radio and when, who reads the newspaper and more.

"We also worked with a larger bank that was considering entering a new market by purchasing 20 branches," says Fusso. "First they conducted focus groups o learn what current customers would think of the purchase and how they would react. Most said they would be willing to stay. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The Value of Research: More Navigating, Less Drifting. (Feature)
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.