With recession-challenged consumers buying less, looking for deals or switching to different

brands,product categories or stores — some even changing long-held attitudes about consumption — the degree of uncertainty in business and consumer markets has soared. Yet to save cash, most marketers are cutting back on the research that would help manage that uncertainty. In the U.S., spending on market research has fallen for four consecutive quarters, and chief marketing officers don’t expect the situation to turn around any time soon. In fact, most big consumer marketers are seeking to shave 10% to 20% off research budgets.

In flush times, a rising tide of consumption can compensate for less-than-optimal branding, positioning, pricing or segmentation. That’s certainly not the case now. At the same time that marketers must pare research expenditures, they face added pressure to secure high-quality data and insights.

So how can marketers minimize the impact of reduced spending on research? Here are seven steps. [Read more...]