What’s market perception?

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Market perception is the consumer’s response to a company’s products and services. A company with a positive perception can be seen as offering good value for money products and services and being a good buy for investors. Negative impressions indicate that consumers and investors do not view a business favorably. Companies can use a variety of tools to research consumer response and develop plans to improve their position in a given market.

Consumer impressions of businesses play a key role in their success. A company with products and services considered to be of superior quality and value can gain a higher market share and can attract interest in new businesses as it expands. This is especially important when people in the marketplace, people who believe they have an insider’s track of information, have a positive perception of a company. For example, early adopters in the technology sector can determine whether a new product catches on or is ignored by consumers.

Companies can use tools like surveys to gauge market perception. They can ask respondents to discuss their impressions of products and services and provide insight into where they could improve. Another consideration might be how the company is perceived relative to the competition. Ideally, responses should be gathered not only from current and past customers, but also from members of the general public. People unfamiliar with a company can provide interesting insights into market perception, as they let companies know what’s going on through word of mouth.

Advertising is one of the key tools used to shape market perception. Companies developing advertising campaigns can meet to discuss goals and the type of image they want to project to create ads that meet their needs. A law firm, for example, may not want to run frivolous and bizarre ads like those that might work well for an Internet service provider, because it wants to project an established, trustworthy image. Consultants can help companies tailor advertising campaigns and place ads in test markets to see how people respond.

If the findings suggest that a company has a significant negative image problem, a variety of measures may need to be taken. Simple means of addressing poor market perceptions may include changing advertising strategies and getting involved in communities through grants, fellowships, and other outreach activities. Companies could also redesign products and services to respond to consumers. More dramatically, companies could decide to revamp their branding, which can potentially include picking new names to start fresh without the baggage associated with an old image.

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