The document discusses the role and effectiveness of market research for new products. While market research can be useful for evaluating existing products and estimating production aspects, several founders of major companies argue that it does not work for creating truly innovative new products, as people may not know what they want until they see it. Market research is better suited for marketing, communications, and production planning rather than the initial creation of new product ideas. The document quotes several founders expressing skepticism about relying too heavily on market research for developing new products.

1. “Market Research”
doesn’t work?
Chikafuji, Ryu
June, 2013

3. Market Research works to evaluate
the performance such as:

4. Advertising Channels:
- Web
- Social Media
- Mobile
- TV
- Radio
- Signage
- ...

5. Distribution Channels:
- Wal-Mart
- Target
- Costco
- Walgreens
- CVS
- Lucky
- ...

6. It also works to estimate
things such as:

7. Production Ratio:
Color variation
30% 5% 10% 20%15%15% 5%
Size variation
16GB 32GB 64GB
50% 30% 20%
XXX variation...

8. Shipping Ratio:
15%
5%
12%
Dealer A:
Dealer B:
Dealer C:
...
7%
3%
2%

9. Of course, it works to find out negative
points of an existing product.

10. However,

11. If I had asked people what they wanted,
they would have said “faster horses”
– Henry Ford
(Ford Motor founder)

12. Market research is what you do
when your product isn’t any good.
– Edwin Land
(Polaroid founder)

13. Market research doesn’t work
for new products.
– Soichiro Honda
(Honda Motors founder)

14. A lot of times, people don’t know what
they want until you show it to them.
– Steve Jobs
(Apple co-founder)

15. Don’t do market research - it will either
tell you what you already know, or put
you off all together.
– James Dyson
(Dyson founder)

16. Running a company on market research is like
driving while looking in the rear view mirror.
– Anita Roddick
(The Body Shop, founder)

17. Market Research Works for

18. Marketing
Communications
Product Creation
Product Planning
Production / Shipping
Advertising /
Distribution

19. Marketing
Communications
Here! (Evaluate)
Product Creation
Product Planning
Here! (Estimate)
Production / Shipping
Advertising /
Distribution

20. But, It DOESN’T Work for

21. Marketing
Communications
Product Creation
Product Planning
Production / Shipping
Advertising /
Distribution

22. Marketing
Communications
Here! (Create)
Product Creation
Product Planning
Here! (Create)
Production / Shipping
Advertising /
Distribution

23. The public does not know what is possible,
but we do.
– Akio Morita
(Sony co-founder)

24. What can we do for
Marketing
Communications
Product Creation
Product Planning
?

25. Carefully watch how people live, get an
intuitive sense as to what they might want
and then go with it.
Don’t do market research.
– Akio Morita
(Sony co-founder)

26. It’s not the customer’s job to know
what they want.
– Steve Jobs
(Apple co-founder)