what is market research plan

How to Do Market Research: The Complete Guide

Learn how to do market research with this step-by-step guide, complete with templates, tools and real-world examples.

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What are your customers’ needs? How does your product compare to the competition? What are the emerging trends and opportunities in your industry? If these questions keep you up at night, it’s time to conduct market research.

Market research plays a pivotal role in your ability to stay competitive and relevant, helping you anticipate shifts in consumer behavior and industry dynamics. It involves gathering these insights using a wide range of techniques, from surveys and interviews to data analysis and observational studies.

In this guide, we’ll explore why market research is crucial, the various types of market research, the methods used in data collection, and how to effectively conduct market research to drive informed decision-making and success.

What is market research?

Market research is the systematic process of gathering, analyzing and interpreting information about a specific market or industry. The purpose of market research is to offer valuable insight into the preferences and behaviors of your target audience, and anticipate shifts in market trends and the competitive landscape. This information helps you make data-driven decisions, develop effective strategies for your business, and maximize your chances of long-term growth.

Why is market research important? 

By understanding the significance of market research, you can make sure you’re asking the right questions and using the process to your advantage. Some of the benefits of market research include:

• Informed decision-making: Market research provides you with the data and insights you need to make smart decisions for your business. It helps you identify opportunities, assess risks and tailor your strategies to meet the demands of the market. Without market research, decisions are often based on assumptions or guesswork, leading to costly mistakes.
• Customer-centric approach: A cornerstone of market research involves developing a deep understanding of customer needs and preferences. This gives you valuable insights into your target audience, helping you develop products, services and marketing campaigns that resonate with your customers.
• Competitive advantage: By conducting market research, you’ll gain a competitive edge. You’ll be able to identify gaps in the market, analyze competitor strengths and weaknesses, and position your business strategically. This enables you to create unique value propositions, differentiate yourself from competitors, and seize opportunities that others may overlook.
• Risk mitigation: Market research helps you anticipate market shifts and potential challenges. By identifying threats early, you can proactively adjust their strategies to mitigate risks and respond effectively to changing circumstances. This proactive approach is particularly valuable in volatile industries.
• Resource optimization: Conducting market research allows organizations to allocate their time, money and resources more efficiently. It ensures that investments are made in areas with the highest potential return on investment, reducing wasted resources and improving overall business performance.
• Adaptation to market trends: Markets evolve rapidly, driven by technological advancements, cultural shifts and changing consumer attitudes. Market research ensures that you stay ahead of these trends and adapt your offerings accordingly so you can avoid becoming obsolete. 

As you can see, market research empowers businesses to make data-driven decisions, cater to customer needs, outperform competitors, mitigate risks, optimize resources and stay agile in a dynamic marketplace. These benefits make it a huge industry; the global market research services market is expected to grow from $76.37 billion in 2021 to $108.57 billion in 2026 . Now, let’s dig into the different types of market research that can help you achieve these benefits.

Types of market research 

• Qualitative research
• Quantitative research
• Exploratory research
• Descriptive research
• Causal research
• Cross-sectional research
• Longitudinal research

Despite its advantages, 23% of organizations don’t have a clear market research strategy. Part of developing a strategy involves choosing the right type of market research for your business goals. The most commonly used approaches include:

1. Qualitative research

Qualitative research focuses on understanding the underlying motivations, attitudes and perceptions of individuals or groups. It is typically conducted through techniques like in-depth interviews, focus groups and content analysis — methods we’ll discuss further in the sections below. Qualitative research provides rich, nuanced insights that can inform product development, marketing strategies and brand positioning.

2. Quantitative research

Quantitative research, in contrast to qualitative research, involves the collection and analysis of numerical data, often through surveys, experiments and structured questionnaires. This approach allows for statistical analysis and the measurement of trends, making it suitable for large-scale market studies and hypothesis testing. While it’s worthwhile using a mix of qualitative and quantitative research, most businesses prioritize the latter because it is scientific, measurable and easily replicated across different experiments.

3. Exploratory research

Whether you’re conducting qualitative or quantitative research or a mix of both, exploratory research is often the first step. Its primary goal is to help you understand a market or problem so you can gain insights and identify potential issues or opportunities. This type of market research is less structured and is typically conducted through open-ended interviews, focus groups or secondary data analysis. Exploratory research is valuable when entering new markets or exploring new product ideas.

4. Descriptive research

As its name implies, descriptive research seeks to describe a market, population or phenomenon in detail. It involves collecting and summarizing data to answer questions about audience demographics and behaviors, market size, and current trends. Surveys, observational studies and content analysis are common methods used in descriptive research. 

5. Causal research

Causal research aims to establish cause-and-effect relationships between variables. It investigates whether changes in one variable result in changes in another. Experimental designs, A/B testing and regression analysis are common causal research methods. This sheds light on how specific marketing strategies or product changes impact consumer behavior.

6. Cross-sectional research

Cross-sectional market research involves collecting data from a sample of the population at a single point in time. It is used to analyze differences, relationships or trends among various groups within a population. Cross-sectional studies are helpful for market segmentation, identifying target audiences and assessing market trends at a specific moment.

7. Longitudinal research

Longitudinal research, in contrast to cross-sectional research, collects data from the same subjects over an extended period. This allows for the analysis of trends, changes and developments over time. Longitudinal studies are useful for tracking long-term developments in consumer preferences, brand loyalty and market dynamics.

Each type of market research has its strengths and weaknesses, and the method you choose depends on your specific research goals and the depth of understanding you’re aiming to achieve. In the following sections, we’ll delve into primary and secondary research approaches and specific research methods.

Primary vs. secondary market research

Market research of all types can be broadly categorized into two main approaches: primary research and secondary research. By understanding the differences between these approaches, you can better determine the most appropriate research method for your specific goals.

Primary market research 

Primary research involves the collection of original data straight from the source. Typically, this involves communicating directly with your target audience — through surveys, interviews, focus groups and more — to gather information. Here are some key attributes of primary market research:

• Customized data: Primary research provides data that is tailored to your research needs. You design a custom research study and gather information specific to your goals.
• Up-to-date insights: Because primary research involves communicating with customers, the data you collect reflects the most current market conditions and consumer behaviors.
• Time-consuming and resource-intensive: Despite its advantages, primary research can be labor-intensive and costly, especially when dealing with large sample sizes or complex study designs. Whether you hire a market research consultant, agency or use an in-house team, primary research studies consume a large amount of resources and time.

Secondary market research 

Secondary research, on the other hand, involves analyzing data that has already been compiled by third-party sources, such as online research tools, databases, news sites, industry reports and academic studies.

Here are the main characteristics of secondary market research:

• Cost-effective: Secondary research is generally more cost-effective than primary research since it doesn’t require building a research plan from scratch. You and your team can look at databases, websites and publications on an ongoing basis, without needing to design a custom experiment or hire a consultant. 
• Leverages multiple sources: Data tools and software extract data from multiple places across the web, and then consolidate that information within a single platform. This means you’ll get a greater amount of data and a wider scope from secondary research.
• Quick to access: You can access a wide range of information rapidly — often in seconds — if you’re using online research tools and databases. Because of this, you can act on insights sooner, rather than taking the time to develop an experiment. 

So, when should you use primary vs. secondary research? In practice, many market research projects incorporate both primary and secondary research to take advantage of the strengths of each approach.

One rule of thumb is to focus on secondary research to obtain background information, market trends or industry benchmarks. It is especially valuable for conducting preliminary research, competitor analysis, or when time and budget constraints are tight. Then, if you still have knowledge gaps or need to answer specific questions unique to your business model, use primary research to create a custom experiment. 

Market research methods

• Surveys and questionnaires
• Focus groups
• Observational research
• Online research tools
• Experiments
• Content analysis
• Ethnographic research

How do primary and secondary research approaches translate into specific research methods? Let’s take a look at the different ways you can gather data: 

1. Surveys and questionnaires

Surveys and questionnaires are popular methods for collecting structured data from a large number of respondents. They involve a set of predetermined questions that participants answer. Surveys can be conducted through various channels, including online tools, telephone interviews and in-person or online questionnaires. They are useful for gathering quantitative data and assessing customer demographics, opinions, preferences and needs. On average, customer surveys have a 33% response rate , so keep that in mind as you consider your sample size.

2. Interviews

Interviews are in-depth conversations with individuals or groups to gather qualitative insights. They can be structured (with predefined questions) or unstructured (with open-ended discussions). Interviews are valuable for exploring complex topics, uncovering motivations and obtaining detailed feedback. 

3. Focus groups

The most common primary research methods are in-depth webcam interviews and focus groups. Focus groups are a small gathering of participants who discuss a specific topic or product under the guidance of a moderator. These discussions are valuable for primary market research because they reveal insights into consumer attitudes, perceptions and emotions. Focus groups are especially useful for idea generation, concept testing and understanding group dynamics within your target audience.

4. Observational research

Observational research involves observing and recording participant behavior in a natural setting. This method is particularly valuable when studying consumer behavior in physical spaces, such as retail stores or public places. In some types of observational research, participants are aware you’re watching them; in other cases, you discreetly watch consumers without their knowledge, as they use your product. Either way, observational research provides firsthand insights into how people interact with products or environments.

5. Online research tools

You and your team can do your own secondary market research using online tools. These tools include data prospecting platforms and databases, as well as online surveys, social media listening, web analytics and sentiment analysis platforms. They help you gather data from online sources, monitor industry trends, track competitors, understand consumer preferences and keep tabs on online behavior. We’ll talk more about choosing the right market research tools in the sections that follow.

6. Experiments

Market research experiments are controlled tests of variables to determine causal relationships. While experiments are often associated with scientific research, they are also used in market research to assess the impact of specific marketing strategies, product features, or pricing and packaging changes.

7. Content analysis

Content analysis involves the systematic examination of textual, visual or audio content to identify patterns, themes and trends. It’s commonly applied to customer reviews, social media posts and other forms of online content to analyze consumer opinions and sentiments.

8. Ethnographic research

Ethnographic research immerses researchers into the daily lives of consumers to understand their behavior and culture. This method is particularly valuable when studying niche markets or exploring the cultural context of consumer choices.

How to do market research

• Set clear objectives
• Identify your target audience
• Choose your research methods
• Use the right market research tools
• Collect data
• Analyze data 
• Interpret your findings
• Identify opportunities and challenges
• Make informed business decisions
• Monitor and adapt

Now that you have gained insights into the various market research methods at your disposal, let’s delve into the practical aspects of how to conduct market research effectively. Here’s a quick step-by-step overview, from defining objectives to monitoring market shifts.

1. Set clear objectives

When you set clear and specific goals, you’re essentially creating a compass to guide your research questions and methodology. Start by precisely defining what you want to achieve. Are you launching a new product and want to understand its viability in the market? Are you evaluating customer satisfaction with a product redesign? 

Start by creating SMART goals — objectives that are specific, measurable, achievable, relevant and time-bound. Not only will this clarify your research focus from the outset, but it will also help you track progress and benchmark your success throughout the process. 

You should also consult with key stakeholders and team members to ensure alignment on your research objectives before diving into data collecting. This will help you gain diverse perspectives and insights that will shape your research approach.

2. Identify your target audience

Next, you’ll need to pinpoint your target audience to determine who should be included in your research. Begin by creating detailed buyer personas or stakeholder profiles. Consider demographic factors like age, gender, income and location, but also delve into psychographics, such as interests, values and pain points.

The more specific your target audience, the more accurate and actionable your research will be. Additionally, segment your audience if your research objectives involve studying different groups, such as current customers and potential leads.

If you already have existing customers, you can also hold conversations with them to better understand your target market. From there, you can refine your buyer personas and tailor your research methods accordingly.

3. Choose your research methods

Selecting the right research methods is crucial for gathering high-quality data. Start by considering the nature of your research objectives. If you’re exploring consumer preferences, surveys and interviews can provide valuable insights. For in-depth understanding, focus groups or observational research might be suitable. Consider using a mix of quantitative and qualitative methods to gain a well-rounded perspective. 

You’ll also need to consider your budget. Think about what you can realistically achieve using the time and resources available to you. If you have a fairly generous budget, you may want to try a mix of primary and secondary research approaches. If you’re doing market research for a startup , on the other hand, chances are your budget is somewhat limited. If that’s the case, try addressing your goals with secondary research tools before investing time and effort in a primary research study. 

4. Use the right market research tools

Whether you’re conducting primary or secondary research, you’ll need to choose the right tools. These can help you do anything from sending surveys to customers to monitoring trends and analyzing data. Here are some examples of popular market research tools:

• Market research software: Crunchbase is a platform that provides best-in-class company data, making it valuable for market research on growing companies and industries. You can use Crunchbase to access trusted, first-party funding data, revenue data, news and firmographics, enabling you to monitor industry trends and understand customer needs.

• Survey and questionnaire tools: SurveyMonkey is a widely used online survey platform that allows you to create, distribute and analyze surveys. Google Forms is a free tool that lets you create surveys and collect responses through Google Drive.
• Data analysis software: Microsoft Excel and Google Sheets are useful for conducting statistical analyses. SPSS is a powerful statistical analysis software used for data processing, analysis and reporting.
• Social listening tools: Brandwatch is a social listening and analytics platform that helps you monitor social media conversations, track sentiment and analyze trends. Mention is a media monitoring tool that allows you to track mentions of your brand, competitors and keywords across various online sources.
• Data visualization platforms: Tableau is a data visualization tool that helps you create interactive and shareable dashboards and reports. Power BI by Microsoft is a business analytics tool for creating interactive visualizations and reports.

5. Collect data

There’s an infinite amount of data you could be collecting using these tools, so you’ll need to be intentional about going after the data that aligns with your research goals. Implement your chosen research methods, whether it’s distributing surveys, conducting interviews or pulling from secondary research platforms. Pay close attention to data quality and accuracy, and stick to a standardized process to streamline data capture and reduce errors. 

6. Analyze data

Once data is collected, you’ll need to analyze it systematically. Use statistical software or analysis tools to identify patterns, trends and correlations. For qualitative data, employ thematic analysis to extract common themes and insights. Visualize your findings with charts, graphs and tables to make complex data more understandable.

If you’re not proficient in data analysis, consider outsourcing or collaborating with a data analyst who can assist in processing and interpreting your data accurately.

7. Interpret your findings

Interpreting your market research findings involves understanding what the data means in the context of your objectives. Are there significant trends that uncover the answers to your initial research questions? Consider the implications of your findings on your business strategy. It’s essential to move beyond raw data and extract actionable insights that inform decision-making.

Hold a cross-functional meeting or workshop with relevant team members to collectively interpret the findings. Different perspectives can lead to more comprehensive insights and innovative solutions.

8. Identify opportunities and challenges

Use your research findings to identify potential growth opportunities and challenges within your market. What segments of your audience are underserved or overlooked? Are there emerging trends you can capitalize on? Conversely, what obstacles or competitors could hinder your progress?

Lay out this information in a clear and organized way by conducting a SWOT analysis, which stands for strengths, weaknesses, opportunities and threats. Jot down notes for each of these areas to provide a structured overview of gaps and hurdles in the market.

9. Make informed business decisions

Market research is only valuable if it leads to informed decisions for your company. Based on your insights, devise actionable strategies and initiatives that align with your research objectives. Whether it’s refining your product, targeting new customer segments or adjusting pricing, ensure your decisions are rooted in the data.

At this point, it’s also crucial to keep your team aligned and accountable. Create an action plan that outlines specific steps, responsibilities and timelines for implementing the recommendations derived from your research. 

10. Monitor and adapt

Market research isn’t a one-time activity; it’s an ongoing process. Continuously monitor market conditions, customer behaviors and industry trends. Set up mechanisms to collect real-time data and feedback. As you gather new information, be prepared to adapt your strategies and tactics accordingly. Regularly revisiting your research ensures your business remains agile and reflects changing market dynamics and consumer preferences.

Online market research sources

As you go through the steps above, you’ll want to turn to trusted, reputable sources to gather your data. Here’s a list to get you started:

• Crunchbase: As mentioned above, Crunchbase is an online platform with an extensive dataset, allowing you to access in-depth insights on market trends, consumer behavior and competitive analysis. You can also customize your search options to tailor your research to specific industries, geographic regions or customer personas.

• Academic databases: Academic databases, such as ProQuest and JSTOR , are treasure troves of scholarly research papers, studies and academic journals. They offer in-depth analyses of various subjects, including market trends, consumer preferences and industry-specific insights. Researchers can access a wealth of peer-reviewed publications to gain a deeper understanding of their research topics.
• Government and NGO databases: Government agencies, nongovernmental organizations and other institutions frequently maintain databases containing valuable economic, demographic and industry-related data. These sources offer credible statistics and reports on a wide range of topics, making them essential for market researchers. Examples include the U.S. Census Bureau , the Bureau of Labor Statistics and the Pew Research Center .
• Industry reports: Industry reports and market studies are comprehensive documents prepared by research firms, industry associations and consulting companies. They provide in-depth insights into specific markets, including market size, trends, competitive analysis and consumer behavior. You can find this information by looking at relevant industry association databases; examples include the American Marketing Association and the National Retail Federation .
• Social media and online communities: Social media platforms like LinkedIn or Twitter (X) , forums such as Reddit and Quora , and review platforms such as G2 can provide real-time insights into consumer sentiment, opinions and trends. 

Market research examples

At this point, you have market research tools and data sources — but how do you act on the data you gather? Let’s go over some real-world examples that illustrate the practical application of market research across various industries. These examples showcase how market research can lead to smart decision-making and successful business decisions.

Example 1: Apple’s iPhone launch

Apple ’s iconic iPhone launch in 2007 serves as a prime example of market research driving product innovation in tech. Before the iPhone’s release, Apple conducted extensive market research to understand consumer preferences, pain points and unmet needs in the mobile phone industry. This research led to the development of a touchscreen smartphone with a user-friendly interface, addressing consumer demands for a more intuitive and versatile device. The result was a revolutionary product that disrupted the market and redefined the smartphone industry.

Example 2: McDonald’s global expansion

McDonald’s successful global expansion strategy demonstrates the importance of market research when expanding into new territories. Before entering a new market, McDonald’s conducts thorough research to understand local tastes, preferences and cultural nuances. This research informs menu customization, marketing strategies and store design. For instance, in India, McDonald’s offers a menu tailored to local preferences, including vegetarian options. This market-specific approach has enabled McDonald’s to adapt and thrive in diverse global markets.

Example 3: Organic and sustainable farming

The shift toward organic and sustainable farming practices in the food industry is driven by market research that indicates increased consumer demand for healthier and environmentally friendly food options. As a result, food producers and retailers invest in sustainable sourcing and organic product lines — such as with these sustainable seafood startups — to align with this shift in consumer values. 

The bottom line? Market research has multiple use cases and is a critical practice for any industry. Whether it’s launching groundbreaking products, entering new markets or responding to changing consumer preferences, you can use market research to shape successful strategies and outcomes.

Market research templates

You finally have a strong understanding of how to do market research and apply it in the real world. Before we wrap up, here are some market research templates that you can use as a starting point for your projects:

• Smartsheet competitive analysis templates : These spreadsheets can serve as a framework for gathering information about the competitive landscape and obtaining valuable lessons to apply to your business strategy.
• SurveyMonkey product survey template : Customize the questions on this survey based on what you want to learn from your target customers.
• HubSpot templates : HubSpot offers a wide range of free templates you can use for market research, business planning and more.
• SCORE templates : SCORE is a nonprofit organization that provides templates for business plans, market analysis and financial projections.
• SBA.gov : The U.S. Small Business Administration offers templates for every aspect of your business, including market research, and is particularly valuable for new startups. 

Strengthen your business with market research

When conducted effectively, market research is like a guiding star. Equipped with the right tools and techniques, you can uncover valuable insights, stay competitive, foster innovation and navigate the complexities of your industry.

Throughout this guide, we’ve discussed the definition of market research, different research methods, and how to conduct it effectively. We’ve also explored various types of market research and shared practical insights and templates for getting started. 

Now, it’s time to start the research process. Trust in data, listen to the market and make informed decisions that guide your company toward lasting success.

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Market Research: A How-To Guide and Template

Discover the different types of market research, how to conduct your own market research, and use a free template to help you along the way.

MARKET RESEARCH KIT

5 Research and Planning Templates + a Free Guide on How to Use Them in Your Market Research

Updated: 02/21/24

Published: 02/21/24

Today's consumers have a lot of power. As a business, you must have a deep understanding of who your buyers are and what influences their purchase decisions.

Enter: Market Research.

Whether you're new to market research or not, I created this guide to help you conduct a thorough study of your market, target audience, competition, and more. Let’s dive in.

Table of Contents

What is market research?

Primary vs. secondary research, types of market research, how to do market research, market research report template, market research examples.

Market research is the process of gathering information about your target market and customers to verify the success of a new product, help your team iterate on an existing product, or understand brand perception to ensure your team is effectively communicating your company's value effectively.

Market research can answer various questions about the state of an industry. But if you ask me, it's hardly a crystal ball that marketers can rely on for insights on their customers.

Market researchers investigate several areas of the market, and it can take weeks or even months to paint an accurate picture of the business landscape.

However, researching just one of those areas can make you more intuitive to who your buyers are and how to deliver value that no other business is offering them right now.

How? Consider these two things:

• Your competitors also have experienced individuals in the industry and a customer base. It‘s very possible that your immediate resources are, in many ways, equal to those of your competition’s immediate resources. Seeking a larger sample size for answers can provide a better edge.
• Your customers don't represent the attitudes of an entire market. They represent the attitudes of the part of the market that is already drawn to your brand.

The market research services market is growing rapidly, which signifies a strong interest in market research as we enter 2024. The market is expected to grow from roughly $75 billion in 2021 to $90.79 billion in 2025 .

Free Market Research Kit

• SWOT Analysis Template
• Survey Template
• Focus Group Template

You're all set!

Click this link to access this resource at any time.

Why do market research?

Market research allows you to meet your buyer where they are.

As our world becomes louder and demands more of our attention, this proves invaluable.

By understanding your buyer's problems, pain points, and desired solutions, you can aptly craft your product or service to naturally appeal to them.

Market research also provides insight into the following:

• Where your target audience and current customers conduct their product or service research
• Which of your competitors your target audience looks to for information, options, or purchases
• What's trending in your industry and in the eyes of your buyer
• Who makes up your market and what their challenges are
• What influences purchases and conversions among your target audience
• Consumer attitudes about a particular topic, pain, product, or brand
• Whether there‘s demand for the business initiatives you’re investing in
• Unaddressed or underserved customer needs that can be flipped into selling opportunity
• Attitudes about pricing for a particular product or service

Ultimately, market research allows you to get information from a larger sample size of your target audience, eliminating bias and assumptions so that you can get to the heart of consumer attitudes.

As a result, you can make better business decisions.

To give you an idea of how extensive market research can get , consider that it can either be qualitative or quantitative in nature — depending on the studies you conduct and what you're trying to learn about your industry.

Qualitative research is concerned with public opinion, and explores how the market feels about the products currently available in that market.

Quantitative research is concerned with data, and looks for relevant trends in the information that's gathered from public records.

That said, there are two main types of market research that your business can conduct to collect actionable information on your products: primary research and secondary research.

Primary Research

Primary research is the pursuit of first-hand information about your market and the customers within your market.

It's useful when segmenting your market and establishing your buyer personas.

Primary market research tends to fall into one of two buckets:

• Exploratory Primary Research: This kind of primary market research normally takes place as a first step — before any specific research has been performed — and may involve open-ended interviews or surveys with small numbers of people.
• Specific Primary Research: This type of research often follows exploratory research. In specific research, you take a smaller or more precise segment of your audience and ask questions aimed at solving a suspected problem.

Secondary Research

Secondary research is all the data and public records you have at your disposal to draw conclusions from (e.g. trend reports, market statistics, industry content, and sales data you already have on your business).

Secondary research is particularly useful for analyzing your competitors . The main buckets your secondary market research will fall into include:

• Public Sources: These sources are your first and most-accessible layer of material when conducting secondary market research. They're often free to find and review — like government statistics (e.g., from the U.S. Census Bureau ).
• Commercial Sources: These sources often come in the form of pay-to-access market reports, consisting of industry insight compiled by a research agency like Pew , Gartner , or Forrester .
• Internal Sources: This is the market data your organization already has like average revenue per sale, customer retention rates, and other historical data that can help you draw conclusions on buyer needs.
• Focus Groups
• Product/ Service Use Research
• Observation-Based Research
• Buyer Persona Research
• Market Segmentation Research
• Pricing Research
• Competitive Analysis Research
• Customer Satisfaction and Loyalty Research
• Brand Awareness Research
• Campaign Research

1. Interviews

Interviews allow for face-to-face discussions so you can allow for a natural flow of conversation. Your interviewees can answer questions about themselves to help you design your buyer personas and shape your entire marketing strategy.

2. Focus Groups

Focus groups provide you with a handful of carefully-selected people that can test out your product and provide feedback. This type of market research can give you ideas for product differentiation.

3. Product/Service Use Research

Product or service use research offers insight into how and why your audience uses your product or service. This type of market research also gives you an idea of the product or service's usability for your target audience.

4. Observation-Based Research

Observation-based research allows you to sit back and watch the ways in which your target audience members go about using your product or service, what works well in terms of UX , and which aspects of it could be improved.

5. Buyer Persona Research

Buyer persona research gives you a realistic look at who makes up your target audience, what their challenges are, why they want your product or service, and what they need from your business or brand.

6. Market Segmentation Research

Market segmentation research allows you to categorize your target audience into different groups (or segments) based on specific and defining characteristics. This way, you can determine effective ways to meet their needs.

7. Pricing Research

Pricing research helps you define your pricing strategy . It gives you an idea of what similar products or services in your market sell for and what your target audience is willing to pay.

8. Competitive Analysis

Competitive analyses give you a deep understanding of the competition in your market and industry. You can learn about what's doing well in your industry and how you can separate yourself from the competition .

9. Customer Satisfaction and Loyalty Research

Customer satisfaction and loyalty research gives you a look into how you can get current customers to return for more business and what will motivate them to do so (e.g., loyalty programs , rewards, remarkable customer service).

10. Brand Awareness Research

Brand awareness research tells you what your target audience knows about and recognizes from your brand. It tells you about the associations people make when they think about your business.

11. Campaign Research

Campaign research entails looking into your past campaigns and analyzing their success among your target audience and current customers. The goal is to use these learnings to inform future campaigns.

• Define your buyer persona.
• Identify a persona group to engage.
• Prepare research questions for your market research participants.
• List your primary competitors.
• Summarize your findings.

1. Define your buyer persona.

You have to understand who your customers are and how customers in your industry make buying decisions.

This is where your buyer personas come in handy. Buyer personas — sometimes referred to as marketing personas — are fictional, generalized representations of your ideal customers.

Use a free tool to create a buyer persona that your entire company can use to market, sell, and serve better.

Don't forget to share this post!

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Market research is a cornerstone of all successful, strategic businesses. It can also be daunting for entrepreneurs looking to launch a startup or start a side hustle . What is market research, anyway? And how do you…do it?

We’ll walk you through absolutely everything you need to know about the market research process so that by the end of this guide, you’ll be an expert in market research too. And what’s more important: you’ll have actionable steps you can take to start collecting your own market research.

What Is Market Research?

Market research is the organized process of gathering information about your target customers and market. Market research can help you better understand customer behavior and competitor strengths and weaknesses, as well as provide insight for the best strategies in launching new businesses and products. There are different ways to approach market research, including primary and secondary research and qualitative and quantitative research. The strongest approaches will include a combination of all four.

“Virtually every business can benefit from conducting some market research,” says Niles Koenigsberg of Real FiG Advertising + Marketing . “Market research can help you piece together your [business’s] strengths and weaknesses, along with your prospective opportunities, so that you can understand where your unique differentiators may lie.” Well-honed market research will help your brand stand out from the competition and help you see what you need to do to lead the market. It can also do so much more.

The Purposes of Market Research

Why do market research? It can help you…

• Pinpoint your target market, create buyer personas, and develop a more holistic understanding of your customer base and market.
• Understand current market conditions to evaluate risks and anticipate how your product or service will perform.
• Validate a concept prior to launch.
• Identify gaps in the market that your competitors have created or overlooked.
• Solve problems that have been left unresolved by the existing product/brand offerings.
• Identify opportunities and solutions for new products or services.
• Develop killer marketing strategies .

What Are the Benefits of Market Research?

Strong market research can help your business in many ways. It can…

• Strengthen your market position.
• Help you identify your strengths and weaknesses.
• Help you identify your competitors’ strengths and weaknesses.
• Minimize risk.
• Center your customers’ experience from the get-go.
• Help you create a dynamic strategy based on market conditions and customer needs/demands.

What Are the Basic Methods of Market Research?

The basic methods of market research include surveys, personal interviews, customer observation, and the review of secondary research. In addition to these basic methods, a forward-thinking market research approach incorporates data from the digital landscape like social media analysis, SEO research, gathering feedback via forums, and more. Throughout this guide, we will cover each of the methods commonly used in market research to give you a comprehensive overview.

Primary vs. Secondary Market Research

Primary and secondary are the two main types of market research you can do. The latter relies on research conducted by others. Primary research, on the other hand, refers to the fact-finding efforts you conduct on your own.

This approach is limited, however. It’s likely that the research objectives of these secondary data points differ from your own, and it can be difficult to confirm the veracity of their findings.

Primary Market Research

Primary research is more labor intensive, but it generally yields data that is exponentially more actionable. It can be conducted through interviews, surveys, online research, and your own data collection. Every new business should engage in primary market research prior to launch. It will help you validate that your idea has traction, and it will give you the information you need to help minimize financial risk.

You can hire an agency to conduct this research on your behalf. This brings the benefit of expertise, as you’ll likely work with a market research analyst. The downside is that hiring an agency can be expensive—too expensive for many burgeoning entrepreneurs. That brings us to the second approach. You can also do the market research yourself, which substantially reduces the financial burden of starting a new business .

Secondary Market Research

Secondary research includes resources like government databases and industry-specific data and publications. It can be beneficial to start your market research with secondary sources because it’s widely available and often free-to-access. This information will help you gain a broad overview of the market conditions for your new business.

Identify Your Goals and Your Audience

Before you begin conducting interviews or sending out surveys, you need to set your market research goals. At the end of your market research process, you want to have a clear idea of who your target market is—including demographic information like age, gender, and where they live—but you also want to start with a rough idea of who your audience might be and what you’re trying to achieve with market research.

You can pinpoint your objectives by asking yourself a series of guiding questions:

• What are you hoping to discover through your research?
• Who are you hoping to serve better because of your findings?
• What do you think your market is?
• Who are your competitors?
• Are you testing the reception of a new product category or do you want to see if your product or service solves the problem left by a current gap in the market?
• Are you just…testing the waters to get a sense of how people would react to a new brand?

Once you’ve narrowed down the “what” of your market research goals, you’re ready to move onto how you can best achieve them. Think of it like algebra. Many math problems start with “solve for x.” Once you know what you’re looking for, you can get to work trying to find it. It’s a heck of a lot easier to solve a problem when you know you’re looking for “x” than if you were to say “I’m gonna throw some numbers out there and see if I find a variable.”

How to Do Market Research

This guide outlines every component of a comprehensive market research effort. Take into consideration the goals you have established for your market research, as they will influence which of these elements you’ll want to include in your market research strategy.

Secondary Data

Secondary data allows you to utilize pre-existing data to garner a sense of market conditions and opportunities. You can rely on published market studies, white papers, and public competitive information to start your market research journey.

Secondary data, while useful, is limited and cannot substitute your own primary data. It’s best used for quantitative data that can provide background to your more specific inquiries.

Find Your Customers Online

Once you’ve identified your target market, you can use online gathering spaces and forums to gain insights and give yourself a competitive advantage. Rebecca McCusker of The Creative Content Shop recommends internet recon as a vital tool for gaining a sense of customer needs and sentiment. “Read their posts and comments on forums, YouTube video comments, Facebook group [comments], and even Amazon/Goodreads book comments to get in their heads and see what people are saying.”

If you’re interested in engaging with your target demographic online, there are some general rules you should follow. First, secure the consent of any group moderators to ensure that you are acting within the group guidelines. Failure to do so could result in your eviction from the group.

Not all comments have the same research value. “Focus on the comments and posts with the most comments and highest engagement,” says McCusker. These high-engagement posts can give you a sense of what is already connecting and gaining traction within the group.

Social media can also be a great avenue for finding interview subjects. “LinkedIn is very useful if your [target customer] has a very specific job or works in a very specific industry or sector. It’s amazing the amount of people that will be willing to help,” explains Miguel González, a marketing executive at Dealers League . “My advice here is BE BRAVE, go to LinkedIn, or even to people you know and ask them, do quick interviews and ask real people that belong to that market and segment and get your buyer persona information first hand.”

Market research interviews can provide direct feedback on your brand, product, or service and give you a better understanding of consumer pain points and interests.

When organizing your market research interviews, you want to pay special attention to the sample group you’re selecting, as it will directly impact the information you receive. According to Tanya Zhang, the co-founder of Nimble Made , you want to first determine whether you want to choose a representative sample—for example, interviewing people who match each of the buyer persona/customer profiles you’ve developed—or a random sample.

“A sampling of your usual persona styles, for example, can validate details that you’ve already established about your product, while a random sampling may [help you] discover a new way people may use your product,” Zhang says.

Market Surveys

Market surveys solicit customer inclinations regarding your potential product or service through a series of open-ended questions. This direct outreach to your target audience can provide information on your customers’ preferences, attitudes, buying potential, and more.

Every expert we asked voiced unanimous support for market surveys as a powerful tool for market research. With the advent of various survey tools with accessible pricing—or free use—it’s never been easier to assemble, disseminate, and gather market surveys. While it should also be noted that surveys shouldn’t replace customer interviews , they can be used to supplement customer interviews to give you feedback from a broader audience.

Who to Include in Market Surveys

• Current customers
• Past customers
• Your existing audience (such as social media/newsletter audiences)

Example Questions to Include in Market Surveys

While the exact questions will vary for each business, here are some common, helpful questions that you may want to consider for your market survey. Demographic Questions: the questions that help you understand, demographically, who your target customers are:

• “What is your age?”
• “Where do you live?”
• “What is your gender identity?”
• “What is your household income?”
• “What is your household size?”
• “What do you do for a living?”
• “What is your highest level of education?”

Product-Based Questions: Whether you’re seeking feedback for an existing brand or an entirely new one, these questions will help you get a sense of how people feel about your business, product, or service:

• “How well does/would our product/service meet your needs?”
• “How does our product/service compare to similar products/services that you use?”
• “How long have you been a customer?” or “What is the likelihood that you would be a customer of our brand?

Personal/Informative Questions: the deeper questions that help you understand how your audience thinks and what they care about.

• “What are your biggest challenges?”
• “What’s most important to you?”
• “What do you do for fun (hobbies, interests, activities)?”
• “Where do you seek new information when researching a new product?”
• “How do you like to make purchases?”
• “What is your preferred method for interacting with a brand?”

Survey Tools

Online survey tools make it easy to distribute surveys and collect responses. The best part is that there are many free tools available. If you’re making your own online survey, you may want to consider SurveyMonkey, Typeform, Google Forms, or Zoho Survey.

Competitive Analysis

A competitive analysis is a breakdown of how your business stacks up against the competition. There are many different ways to conduct this analysis. One of the most popular methods is a SWOT analysis, which stands for “strengths, weaknesses, opportunities, and threats.” This type of analysis is helpful because it gives you a more robust understanding of why a customer might choose a competitor over your business. Seeing how you stack up against the competition can give you the direction you need to carve out your place as a market leader.

Social Media Analysis

Social media has fundamentally changed the market research landscape, making it easier than ever to engage with a wide swath of consumers. Follow your current or potential competitors on social media to see what they’re posting and how their audience is engaging with it. Social media can also give you a lower cost opportunity for testing different messaging and brand positioning.

SEO Analysis and Opportunities

SEO analysis can help you identify the digital competition for getting the word out about your brand, product, or service. You won’t want to overlook this valuable information. Search listening tools offer a novel approach to understanding the market and generating the content strategy that will drive business. Tools like Google Trends and Awario can streamline this process.

Ready to Kick Your Business Into High Gear?

Now that you’ve completed the guide to market research you know you’re ready to put on your researcher hat to give your business the best start. Still not sure how actually… launch the thing? Our free mini-course can run you through the essentials for starting your side hustle .

About Mary Kate Miller

Mary Kate Miller writes about small business, real estate, and finance. In addition to writing for Foundr, her work has been published by The Washington Post, Teen Vogue, Bustle, and more. She lives in Chicago.

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How to do market research in 4 steps: a lean approach to marketing research

From pinpointing your target audience and assessing your competitive advantage, to ongoing product development and customer satisfaction efforts, market research is a practice your business can only benefit from.

Learn how to conduct quick and effective market research using a lean approach in this article full of strategies and practical examples. 

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A comprehensive (and successful) business strategy is not complete without some form of market research—you can’t make informed and profitable business decisions without truly understanding your customer base and the current market trends that drive your business.

In this article, you’ll learn how to conduct quick, effective market research  using an approach called 'lean market research'. It’s easier than you might think, and it can be done at any stage in a product’s lifecycle.

How to conduct lean market research in 4 steps

What is market research, why is market research so valuable, advantages of lean market research, 4 common market research methods, 5 common market research questions, market research faqs.

We’ll jump right into our 4-step approach to lean market research. To show you how it’s done in the real world, each step includes a practical example from Smallpdf , a Swiss company that used lean market research to reduce their tool’s error rate by 75% and boost their Net Promoter Score® (NPS) by 1%.

Research your market the lean way...

From on-page surveys to user interviews, Hotjar has the tools to help you scope out your market and get to know your customers—without breaking the bank.

The following four steps and practical examples will give you a solid market research plan for understanding who your users are and what they want from a company like yours.

1. Create simple user personas

A user persona is a semi-fictional character based on psychographic and demographic data from people who use websites and products similar to your own. Start by defining broad user categories, then elaborate on them later to further segment your customer base and determine your ideal customer profile .

How to get the data: use on-page or emailed surveys and interviews to understand your users and what drives them to your business.

How to do it right: whatever survey or interview questions you ask, they should answer the following questions about the customer:

Who are they?

What is their main goal?

What is their main barrier to achieving this goal?

Pitfalls to avoid:

Don’t ask too many questions! Keep it to five or less, otherwise you’ll inundate them and they’ll stop answering thoughtfully.

Don’t worry too much about typical demographic questions like age or background. Instead, focus on the role these people play (as it relates to your product) and their goals.

How Smallpdf did it: Smallpdf ran an on-page survey for a couple of weeks and received 1,000 replies. They learned that many of their users were administrative assistants, students, and teachers.

Next, they used the survey results to create simple user personas like this one for admins:

Who are they? Administrative Assistants.

What is their main goal? Creating Word documents from a scanned, hard-copy document or a PDF where the source file was lost.

What is their main barrier to achieving it? Converting a scanned PDF doc to a Word file.

💡Pro tip: Smallpdf used Hotjar Surveys to run their user persona survey. Our survey tool helped them avoid the pitfalls of guesswork and find out who their users really are, in their own words. 

You can design a survey and start running it in minutes with our easy-to-use drag and drop builder. Customize your survey to fit your needs, from a sleek one-question pop-up survey to a fully branded questionnaire sent via email. 

We've also created 40+ free survey templates that you can start collecting data with, including a user persona survey like the one Smallpdf used.

2. Conduct observational research

Observational research involves taking notes while watching someone use your product (or a similar product).

Overt vs. covert observation

Overt observation involves asking customers if they’ll let you watch them use your product. This method is often used for user testing and it provides a great opportunity for collecting live product or customer feedback .

Covert observation means studying users ‘in the wild’ without them knowing. This method works well if you sell a type of product that people use regularly, and it offers the purest observational data because people often behave differently when they know they’re being watched. 

Tips to do it right:

Record an entry in your field notes, along with a timestamp, each time an action or event occurs.

Make note of the users' workflow, capturing the ‘what,’ ‘why,’ and ‘for whom’ of each action.

Don’t record identifiable video or audio data without consent. If recording people using your product is helpful for achieving your research goal, make sure all participants are informed and agree to the terms.

Don’t forget to explain why you’d like to observe them (for overt observation). People are more likely to cooperate if you tell them you want to improve the product.

💡Pro tip: while conducting field research out in the wild can wield rewarding results, you can also conduct observational research remotely. Hotjar Recordings is a tool that lets you capture anonymized user sessions of real people interacting with your website. 

Observe how customers navigate your pages and products to gain an inside look into their user behavior . This method is great for conducting exploratory research with the purpose of identifying more specific issues to investigate further, like pain points along the customer journey and opportunities for optimizing conversion .

With Hotjar Recordings you can observe real people using your site without capturing their sensitive information

How Smallpdf did it: here’s how Smallpdf observed two different user personas both covertly and overtly.

Observing students (covert): Kristina Wagner, Principle Product Manager at Smallpdf, went to cafes and libraries at two local universities and waited until she saw students doing PDF-related activities. Then she watched and took notes from a distance. One thing that struck her was the difference between how students self-reported their activities vs. how they behaved (i.e, the self-reporting bias). Students, she found, spent hours talking, listening to music, or simply staring at a blank screen rather than working. When she did find students who were working, she recorded the task they were performing and the software they were using (if she recognized it).

Observing administrative assistants (overt): Kristina sent emails to admins explaining that she’d like to observe them at work, and she asked those who agreed to try to batch their PDF work for her observation day. While watching admins work, she learned that they frequently needed to scan documents into PDF-format and then convert those PDFs into Word docs. By observing the challenges admins faced, Smallpdf knew which products to target for improvement.

“Data is really good for discovery and validation, but there is a bit in the middle where you have to go and find the human.”

3. Conduct individual interviews

Interviews are one-on-one conversations with members of your target market. They allow you to dig deep and explore their concerns, which can lead to all sorts of revelations.

Listen more, talk less. Be curious.

Act like a journalist, not a salesperson. Rather than trying to talk your company up, ask people about their lives, their needs, their frustrations, and how a product like yours could help.

Ask "why?" so you can dig deeper. Get into the specifics and learn about their past behavior.

Record the conversation. Focus on the conversation and avoid relying solely on notes by recording the interview. There are plenty of services that will transcribe recorded conversations for a good price (including Hotjar!).

Avoid asking leading questions , which reveal bias on your part and pushes respondents to answer in a certain direction (e.g. “Have you taken advantage of the amazing new features we just released?).

Don't ask loaded questions , which sneak in an assumption which, if untrue, would make it impossible to answer honestly. For example, we can’t ask you, “What did you find most useful about this article?” without asking whether you found the article useful in the first place.

Be cautious when asking opinions about the future (or predictions of future behavior). Studies suggest that people aren’t very good at predicting their future behavior. This is due to several cognitive biases, from the misguided exceptionalism bias (we’re good at guessing what others will do, but we somehow think we’re different), to the optimism bias (which makes us see things with rose-colored glasses), to the ‘illusion of control’ (which makes us forget the role of randomness in future events).

How Smallpdf did it: Kristina explored her teacher user persona by speaking with university professors at a local graduate school. She learned that the school was mostly paperless and rarely used PDFs, so for the sake of time, she moved on to the admins.

A bit of a letdown? Sure. But this story highlights an important lesson: sometimes you follow a lead and come up short, so you have to make adjustments on the fly. Lean market research is about getting solid, actionable insights quickly so you can tweak things and see what works.

💡Pro tip: to save even more time, conduct remote interviews using an online user research service like Hotjar Engage , which automates the entire interview process, from recruitment and scheduling to hosting and recording.

You can interview your own customers or connect with people from our diverse pool of 200,000+ participants from 130+ countries and 25 industries. And no need to fret about taking meticulous notes—Engage will automatically transcribe the interview for you.

4. Analyze the data (without drowning in it)

The following techniques will help you wrap your head around the market data you collect without losing yourself in it. Remember, the point of lean market research is to find quick, actionable insights.

A flow model is a diagram that tracks the flow of information within a system. By creating a simple visual representation of how users interact with your product and each other, you can better assess their needs.

You’ll notice that admins are at the center of Smallpdf’s flow model, which represents the flow of PDF-related documents throughout a school. This flow model shows the challenges that admins face as they work to satisfy their own internal and external customers.

Affinity diagram

An affinity diagram is a way of sorting large amounts of data into groups to better understand the big picture. For example, if you ask your users about their profession, you’ll notice some general themes start to form, even though the individual responses differ. Depending on your needs, you could group them by profession, or more generally by industry.

We wrote a guide about how to analyze open-ended questions to help you sort through and categorize large volumes of response data. You can also do this by hand by clipping up survey responses or interview notes and grouping them (which is what Kristina does).

“For an interview, you will have somewhere between 30 and 60 notes, and those notes are usually direct phrases. And when you literally cut them up into separate pieces of paper and group them, they should make sense by themselves.”

Pro tip: if you’re conducting an online survey with Hotjar, keep your team in the loop by sharing survey responses automatically via our Slack and Microsoft Team integrations. Reading answers as they come in lets you digest the data in pieces and can help prepare you for identifying common themes when it comes time for analysis.

Hotjar lets you easily share survey responses with your team

Customer journey map

A customer journey map is a diagram that shows the way a typical prospect becomes a paying customer. It outlines their first interaction with your brand and every step in the sales cycle, from awareness to repurchase (and hopefully advocacy).

The above  customer journey map , created by our team at Hotjar, shows many ways a customer might engage with our tool. Your map will be based on your own data and business model.

📚 Read more: if you’re new to customer journey maps, we wrote this step-by-step guide to creating your first customer journey map in 2 and 1/2 days with free templates you can download and start using immediately.

Next steps: from research to results

So, how do you turn market research insights into tangible business results? Let’s look at the actions Smallpdf took after conducting their lean market research: first they implemented changes, then measured the impact.

Implement changes

Based on what Smallpdf learned about the challenges that one key user segment (admins) face when trying to convert PDFs into Word files, they improved their ‘PDF to Word’ conversion tool.

We won’t go into the details here because it involves a lot of technical jargon, but they made the entire process simpler and more straightforward for users. Plus, they made it so that their system recognized when you drop a PDF file into their ‘Word to PDF’ converter instead of the ‘PDF to Word’ converter, so users wouldn’t have to redo the task when they made that mistake. 

In other words: simple market segmentation for admins showed a business need that had to be accounted for, and customers are happier overall after Smallpdf implemented an informed change to their product.

Measure results

According to the Lean UX model, product and UX changes aren’t retained unless they achieve results.

Smallpdf’s changes produced:

A 75% reduction in error rate for the ‘PDF to Word’ converter

A 1% increase in NPS

Greater confidence in the team’s marketing efforts

"With all the changes said and done, we've cut our original error rate in four, which is huge. We increased our NPS by +1%, which isn't huge, but it means that of the users who received a file, they were still slightly happier than before, even if they didn't notice that anything special happened at all.”

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Market research (or marketing research) is any set of techniques used to gather information and better understand a company’s target market. This might include primary research on brand awareness and customer satisfaction or secondary market research on market size and competitive analysis. Businesses use this information to design better products, improve user experience, and craft a marketing strategy that attracts quality leads and improves conversion rates.

David Darmanin, one of Hotjar’s founders, launched two startups before Hotjar took off—but both companies crashed and burned. Each time, he and his team spent months trying to design an amazing new product and user experience, but they failed because they didn’t have a clear understanding of what the market demanded.

With Hotjar, they did things differently . Long story short, they conducted market research in the early stages to figure out what consumers really wanted, and the team made (and continues to make) constant improvements based on market and user research.

Without market research, it’s impossible to understand your users. Sure, you might have a general idea of who they are and what they need, but you have to dig deep if you want to win their loyalty.

Here’s why research matters:

Obsessing over your users is the only way to win. If you don’t care deeply about them, you’ll lose potential customers to someone who does.

Analytics gives you the ‘what’, while research gives you the ‘why’. Big data, user analytics , and dashboards can tell you what people do at scale, but only research can tell you what they’re thinking and why they do what they do. For example, analytics can tell you that customers leave when they reach your pricing page, but only research can explain why.

Research beats assumptions, trends, and so-called best practices. Have you ever watched your colleagues rally behind a terrible decision? Bad ideas are often the result of guesswork, emotional reasoning, death by best practices , and defaulting to the Highest Paid Person’s Opinion (HiPPO). By listening to your users and focusing on their customer experience , you’re less likely to get pulled in the wrong direction.

Research keeps you from planning in a vacuum. Your team might be amazing, but you and your colleagues simply can’t experience your product the way your customers do. Customers might use your product in a way that surprises you, and product features that seem obvious to you might confuse them. Over-planning and refusing to test your assumptions is a waste of time, money, and effort because you’ll likely need to make changes once your untested business plan gets put into practice.

Lean User Experience (UX) design is a model for continuous improvement that relies on quick, efficient research to understand customer needs and test new product features.

Lean market research can help you become more...

Efficient: it gets you closer to your customers, faster.

Cost-effective: no need to hire an expensive marketing firm to get things started.

Competitive: quick, powerful insights can place your products on the cutting edge.

As a small business or sole proprietor, conducting lean market research is an attractive option when investing in a full-blown research project might seem out of scope or budget.

There are lots of different ways you could conduct market research and collect customer data, but you don’t have to limit yourself to just one research method. Four common types of market research techniques include surveys, interviews, focus groups, and customer observation.

Which method you use may vary based on your business type: ecommerce business owners have different goals from SaaS businesses, so it’s typically prudent to mix and match these methods based on your particular goals and what you need to know.

1. Surveys: the most commonly used

Surveys are a form of qualitative research that ask respondents a short series of open- or closed-ended questions, which can be delivered as an on-screen questionnaire or via email. When we asked 2,000 Customer Experience (CX) professionals about their company’s approach to research , surveys proved to be the most commonly used market research technique.

What makes online surveys so popular?  

They’re easy and inexpensive to conduct, and you can do a lot of data collection quickly. Plus, the data is pretty straightforward to analyze, even when you have to analyze open-ended questions whose answers might initially appear difficult to categorize.

We've built a number of survey templates ready and waiting for you. Grab a template and share with your customers in just a few clicks.

💡 Pro tip: you can also get started with Hotjar AI for Surveys to create a survey in mere seconds . Just enter your market research goal and watch as the AI generates a survey and populates it with relevant questions. 

Once you’re ready for data analysis, the AI will prepare an automated research report that succinctly summarizes key findings, quotes, and suggested next steps.

An example research report generated by Hotjar AI for Surveys

2. Interviews: the most insightful

Interviews are one-on-one conversations with members of your target market. Nothing beats a face-to-face interview for diving deep (and reading non-verbal cues), but if an in-person meeting isn’t possible, video conferencing is a solid second choice.

Regardless of how you conduct it, any type of in-depth interview will produce big benefits in understanding your target customers.

What makes interviews so insightful?

By speaking directly with an ideal customer, you’ll gain greater empathy for their experience , and you can follow insightful threads that can produce plenty of 'Aha!' moments.

3. Focus groups: the most unreliable

Focus groups bring together a carefully selected group of people who fit a company’s target market. A trained moderator leads a conversation surrounding the product, user experience, or marketing message to gain deeper insights.

What makes focus groups so unreliable?

If you’re new to market research, we wouldn’t recommend starting with focus groups. Doing it right is expensive , and if you cut corners, your research could fall victim to all kinds of errors. Dominance bias (when a forceful participant influences the group) and moderator style bias (when different moderator personalities bring about different results in the same study) are two of the many ways your focus group data could get skewed.

4. Observation: the most powerful

During a customer observation session, someone from the company takes notes while they watch an ideal user engage with their product (or a similar product from a competitor).

What makes observation so clever and powerful?

‘Fly-on-the-wall’ observation is a great alternative to focus groups. It’s not only less expensive, but you’ll see people interact with your product in a natural setting without influencing each other. The only downside is that you can’t get inside their heads, so observation still isn't a recommended replacement for customer surveys and interviews.

The following questions will help you get to know your users on a deeper level when you interview them. They’re general questions, of course, so don’t be afraid to make them your own.

1. Who are you and what do you do?

How you ask this question, and what you want to know, will vary depending on your business model (e.g. business-to-business marketing is usually more focused on someone’s profession than business-to-consumer marketing).

It’s a great question to start with, and it’ll help you understand what’s relevant about your user demographics (age, race, gender, profession, education, etc.), but it’s not the be-all-end-all of market research. The more specific questions come later.

2. What does your day look like?

This question helps you understand your users’ day-to-day life and the challenges they face. It will help you gain empathy for them, and you may stumble across something relevant to their buying habits.

3. Do you ever purchase [product/service type]?

This is a ‘yes or no’ question. A ‘yes’ will lead you to the next question.

4. What problem were you trying to solve or what goal were you trying to achieve?

This question strikes to the core of what someone’s trying to accomplish and why they might be willing to pay for your solution.

5. Take me back to the day when you first decided you needed to solve this kind of problem or achieve this goal.

This is the golden question, and it comes from Adele Revella, Founder and CEO of Buyer Persona Institute . It helps you get in the heads of your users and figure out what they were thinking the day they decided to spend money to solve a problem.

If you take your time with this question, digging deeper where it makes sense, you should be able to answer all the relevant information you need to understand their perspective.

“The only scripted question I want you to ask them is this one: take me back to the day when you first decided that you needed to solve this kind of problem or achieve this kind of a goal. Not to buy my product, that’s not the day. We want to go back to the day that when you thought it was urgent and compelling to go spend money to solve a particular problem or achieve a goal. Just tell me what happened.”

— Adele Revella , Founder/CEO at Buyer Persona Institute

Bonus question: is there anything else you’d like to tell me?

This question isn’t just a nice way to wrap it up—it might just give participants the opportunity they need to tell you something you really need to know.

That’s why Sarah Doody, author of UX Notebook , adds it to the end of her written surveys.

“I always have a last question, which is just open-ended: “Is there anything else you would like to tell me?” And sometimes, that’s where you get four paragraphs of amazing content that you would never have gotten if it was just a Net Promoter Score [survey] or something like that.”

What is the difference between qualitative and quantitative research?

Qualitative research asks questions that can’t be reduced to a number, such as, “What is your job title?” or “What did you like most about your customer service experience?” 

Quantitative research asks questions that can be answered with a numeric value, such as, “What is your annual salary?” or “How was your customer service experience on a scale of 1-5?”

 → Read more about the differences between qualitative and quantitative user research .

How do I do my own market research?

You can do your own quick and effective market research by 

Surveying your customers

Building user personas

Studying your users through interviews and observation

Wrapping your head around your data with tools like flow models, affinity diagrams, and customer journey maps

What is the difference between market research and user research?

Market research takes a broad look at potential customers—what problems they’re trying to solve, their buying experience, and overall demand. User research, on the other hand, is more narrowly focused on the use (and usability ) of specific products.

What are the main criticisms of market research?

Many marketing professionals are critical of market research because it can be expensive and time-consuming. It’s often easier to convince your CEO or CMO to let you do lean market research rather than something more extensive because you can do it yourself. It also gives you quick answers so you can stay ahead of the competition.

Do I need a market research firm to get reliable data?

Absolutely not! In fact, we recommend that you start small and do it yourself in the beginning. By following a lean market research strategy, you can uncover some solid insights about your clients. Then you can make changes, test them out, and see whether the results are positive. This is an excellent strategy for making quick changes and remaining competitive.

Net Promoter, Net Promoter System, Net Promoter Score, NPS, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld, and Satmetrix Systems, Inc.

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How to Create a Market Research Plan

Table of Contents

While having a great idea is an important part of establishing a business, you’ll only get so far without laying the proper groundwork. To help your business take off, not only do you need to size up the competition, but you also need to identify who will buy your product, how much it will cost, the best approach to selling it and how many people will demand it.

To get answers to these questions, you’ll need a market research plan, which you can create yourself or pay a specialist to create for you. Market research plans define an existing problem and/or outline an opportunity. From there, the marketing strategy is broken down task by task. Your plan should include objectives and the methods that you’ll use to achieve those objectives, along with a time frame for completing the work.

What should a market research plan include?

A market research plan should provide a thorough examination of how your product or service will fare in a defined area. It should include:

• An examination of the current marketplace and an analysis of the need for your product or service: To know where you fit in the market, it’s important to have a broad understanding of your industry — covering everything from its annual revenue to the industry standards to the total number of businesses operating within it. Start by gathering statistical data from sources like the U.S. Bureau of Labor Statistics and BMI Research and consider the industry’s market size, potential customer base and how external factors such as laws, technology, world events and socioeconomic changes impact it.
• An assessment of the competition: By analyzing your competitors, you can discover strategies to fill market gaps. This involves identifying well-known competitors and noting trends they employ successfully, scrutinizing customer feedback about businesses in your sector, such as through online reviews, and understanding competitors’ product or service offerings. This knowledge can then guide the refinement of your own products or services to differentiate them from others in the market.
• Data about customers: Identify which segment of potential customers in your industry you can effectively target, considering their demographics — such as age, ethnicity, income and location and psychographics, including beliefs, values and lifestyle. Learn about the challenges your customers face in their daily lives and determine how the features and benefits of your offerings address their needs.
• The direction for your marketing in the upcoming year: Your plan should provide a clear roadmap for your marketing strategies for the next year, focusing on approaches to distinguish your brand from competitors. Develop marketing messages that resonate with and display empathy toward your target market and find ways to address customers’ needs and demonstrate value.
• Goals to be met: Outline goals your business would like to achieve and make these goals clear to all employees on your team. Create goals that are realistic and attainable while also making a meaningful impact on the business’s growth. Consider factors including your target number of products or services, the expected number of units to sell based on market size, target market behavior, pricing for each item and the cost of production and advertising.

How to create your market research plan

Doing business without having a marketing plan is like driving without directions. You may eventually reach your destination, but there will be many costly and time-consuming mistakes made along the way.

Many entrepreneurs mistakenly believe there is a big demand for their service or product but, in reality, there may not be, your prices may be too high or too low or you may be going into a business with so many restrictions that it’s almost impossible to be successful. A market research plan will help you uncover significant issues or roadblocks.

Step 1. Conduct a comprehensive situation analysis.

One of the first steps in constructing your marketing plan is to create a strengths, weaknesses, opportunities and threats (SWOT) analysis , which is used to identify your competition, to know how they operate and then to understand their strengths and weaknesses.

Step 2: Develop clear marketing objectives.

In this section, describe the desired outcome for your marketing plan with realistic and attainable objectives, the targets and a clear and concise time frame. The most common way to approach this is with marketing objectives, which may include the total number of customers and the retention rate, the average volume of purchases, total market share and the proportion of your potential market that makes purchases.

Step 3: Make a financial plan.

A financial plan is essentia l for creating a solid marketing plan. The financial plan answers a range of questions that are critical components of your business, such as how much you intend to sell, what will you charge, how much will it cost to deliver your services or produce your products, how much will it cost for your basic operating expenses and how much financing will you need to operate your business.

In your business plan, be sure to describe who you are, what your business will be about, your business goals and what your inspiration was to buy, begin or grow your business.

Step 4: Determine your target audience.

Once you know what makes you stand out from your competitors and how you’ll market yourself, you should decide who to target with all this information. That’s why your market research plan should delineate your target audience. What are their demographics and how will these qualities affect your plan? How do your company’s current products and services affect which consumers you can realistically make customers? Will that change in the future? All of these questions should be answered in your plan.

Step 5: List your research methods.

Rarely does one research avenue make for a comprehensive market research plan. Instead, your plan should indicate several methods that will be used to determine the market share you can realistically obtain. This way, you get as much information as possible from as many sources as possible. The result is a more robust path toward establishing the exact footprint you desire for your company.

Step 6: Establish a timeline.

With your plan in place, you’ll need to figure out how long your market research process will take. Project management charts are often helpful in this regard as they divide tasks and personnel over a timeframe that you have set. No matter which type of project management chart you use, try to build some flexibility into your timeframe. A two-week buffer toward the home stretch comes in handy when a process scheduled for one week takes two — that buffer will keep you on deadline.

Step 7: Acknowledge ethical concerns.

Market research always presents opportunities for ethical missteps. After all, you’ll need to obtain competitor information and sensitive financial data that may not always be readily available. Your market research plan should thus encourage your team to not take any dicey steps to obtain this information. It may be better to state, “we could not obtain this competitor information,” than to spy on the competitor or pressure their current employees for knowledge. Plus, there’s nothing wrong with simply feeling better about the final state of your plan and how you got it there.

Using a market research firm

If the thought of trying to create your own market research plan seems daunting or too time-consuming, there are plenty of other people willing to do the work for you.

Pros of using a market research firm

As an objective third party, businesses can benefit from a market research firm’s impartial perspective and guidance, helping to shape impactful brand strategies and marketing campaigns. These firms, which can help businesses with everything from their marketing campaigns to brand launches, deliver precise results, drawing on their expertise and experience to provide in-depth insights and solutions tailored specifically to your company’s needs. 

Even more, working with a market research firm can elevate a brand above the competition, as they provide credible and unique research that is highly valued by the media, enhancing brand credibility and potentially increasing website traffic, social media shares and online visibility.

Cons of using a market research firm

Although hiring a firm can provide businesses with tremendous results, certain downsides can lead a business toward the do-it-yourself route. Most notably, market research firms can be a costly expense that some businesses can’t afford. However, businesses that can allocate the funds will likely see a positive return on investment, as they are paying for the expertise and proficiency of seasoned professionals in the field.

Additionally, finding the right market research firm for your business’s needs can take some time — and even longer, ranging from weeks to months, for a market research firm to complete a plan. This lack of immediate results can be detrimental for businesses that don’t have the time to wait. 

Market research firms can charge into the thousands of dollars for a market research plan, but there are ways to get help more affordably, including:

• Outline your plans carefully and spell out objectives.
• Examine as many sources as possible.
• Before paying for any information, check with librarians, small business development centers or market research professors to see if they can help you access market research data for free.
• You may think you’ll need to spend a hefty sum to create a market research plan, but there are plenty of free and low-cost sources available, especially through university business schools that will guide you through the process.

Miranda Fraraccio contributed to this article. 

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How to Write a Market Research Plan (+ Free Template)

Chris martin, pitch it: the business case for customer salience.

As insight experts, we understand the power of insights, their inherent value in key decision-making...

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A market research plan, similar to a brief, is a vital document that details important information about your market research project. Though it is often an overlooked step of the market research process , an effective plan is often a critical factor in determining whether or not your market research efforts are successful.

Why? Because a well-thought through plan, more so than objectives alone, can be a vital instrument in focusing your investment. It ensures you know, ahead of the commencement date, the timeline, budget and desired outcomes from the project. It can even be used as a tool for receiving quicker sign-off from management when embarking on a new venture.

But it’s also important to remember that the research plan is not just for your team. To make full use of this document, it should be written in a way that can be distributed to agency partners as well – ensuring that your insight team and specialist partners are all working towards the same goal.

Tips for Crafting a Successful Plan

The first rule of writing a successful market research plan is to keep it short. The perfect length is between 1-2 pages, but as an absolute maximum try to ensure that it never exceeds 3. This will give you enough space to explain the background, scope and practicalities of the project while ensuring it is concise enough to be read in full. Throughout these few short pages, the tone of your plan should be informative. Remember that you are outlining information that you already know.

Write in a way that holistically encompasses all aspects of the project. Throughout the duration of your scripting, data collection, analysis and reporting stages of your project you should always be referring back to this document in order to remain focused. As any researcher knows, one of the biggest challenges in any research project is staying true to your original objectives.

With both exploratory and confirmatory research alike, new information is likely to arise which may spark other ideas or bring light to previously unknown issues. Remember these, but set them aside for further investigation at a later date. Travelling too far down the rabbit hole is the quickest way to overspend and under deliver on your original goal.

The 10 Elements of the Best Research Plans

First, let me preface this with a reminder: every project is different. A long term co-creation community will have different needs and requirements to a customer feedback survey or ad testing project. However, despite this – it is important to give equal consideration to all projects, and plan each with the same high degree of meticulous care. With this in mind, these are the 10 key aspects we recommend that all research plans should include:

1. Overview

Use this first section to outline the background to the problem that you are attempting to solve. Include background information on the business to provide context, as well as the circumstances that have led to the need for research. Overviews should be limited to 200 words at most, with most of the word count dedicated to the business circumstances & challenges surrounding the research.

2. Objectives

Arguably the most important aspect of the entire document, objectives should be in bullet point format. List 3-5 of the decisions or initiatives that the research will inform – this will become the remit of the project. Below are a few examples of both well and poorly written objectives:

Well written research objectives:

• Understand the channels in which our customers are most comfortable shopping, in order to decide which should be prioritised in the 2017 Q1 budget
• Develop an active co-creation community that contributes 2 user-generated product improvements for testing to the R & D team per month
• Learn what is leading to an increase in customer churn so that a new retention strategy can be put in place within 12 weeks

Poorly written research objectives:

• Survey 1,000 potential customers to find out how our products can be improved
• Develop a panel of employees that are able to provide answers to research questions on an ad-hoc basis
• Learn how our company is perceived in comparison to competitors and how we can stand out in the marketplace

3. Deliverable outcomes

This section acts as a list what you expect to be produced at the end of the project. This can include, but is not limited to: a target number of responses you expect to receive, descriptions of how the data should be presented and the extent to which the data will be used to inform future decisions. In long term projects such as panels or communities, this may include a target for the amount of decisions that research is expected to inform and/or a pipeline for new ideas in exploratory studies.

4. Target audience

Different to sample, your target audience describes the population that you wish to research. This can be defined by a number of factors depending on the nature of your project. Some of the most common include: demographics, psychographics, life stages and company/ product interaction.

5. Sample plan

The sample plan should be used to indicate the amount of participants you wish to research, as well as a breakdown of each group. This will be affected by the choice to use qualitative, quantitative or multi-method approaches, as well as the estimated size of the target population.

6. Research Methods

List the different research methods that you plan to use in your project. This will be used by your team and agency partners to ensure that the insight you need comes from the most appropriate tools. Be sure to include any non-traditional methods you plan to use as well – it’s important that your team are aware of how data will be captured, even if it is being gathered by an experimental technique.

7. Timeline

These usually take the form of a Gantt chart, but can vary depending on the scope and length of your project. Try to break down tasks as much as possible but be wary of dependencies within your chart. Be sure to schedule enough time in case some research tasks over-run or response rates are lower than expected.

Perhaps the most dreaded aspect of any research plan, budgeting is never easy. But by providing a breakdown of costs and outlining which elements of the project require most investment, a well-planned budget can be a benefit rather than a hurdle.

9 & 10. Ethical and Further considerations

Finally, you should outline any ethical/ other considerations or issues that may arise throughout the course of your project. Whether these are as simple as a conflict of interest or a concern about supplier relationships – this is your chance to address any problems that may arise before they do.

Free Market Research Plan Template

Use this link to download our   free market research plan template . The template comes complete with each of the sections outlined above, with instructions on usage and tips on how to make the most out of it. Currently available in .docx format, please email   [email protected]  if you have any problems with the download.

What do you believe should be included in a successful market research plan? Share your advice with us in the comments below and join the conversation.

About FlexMR

We are The Insights Empowerment Company. We help research, product and marketing teams drive informed decisions with efficient, scalable & impactful insight.

About Chris Martin

Chris is an experienced executive and marketing strategist in the insight and technology sectors. He also hosts our MRX Lab podcast.

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6.3: Steps in a Successful Marketing Research Plan

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Learning Objectives

By the end of this section, you will be able to:

• Identify and describe the steps in a marketing research plan.
• Discuss the different types of data research.
• Explain how data is analyzed.
• Discuss the importance of effective research reports.

Define the Problem

There are seven steps to a successful marketing research project (see Figure 6.3). Each step will be explained as we investigate how a marketing research project is conducted.

The first step, defining the problem, is often a realization that more information is needed in order to make a data-driven decision. Problem definition is the realization that there is an issue that needs to be addressed. An entrepreneur may be interested in opening a small business but must first define the problem that is to be investigated. A marketing research problem in this example is to discover the needs of the community and also to identify a potentially successful business venture.

Many times, researchers define a research question or objectives in this first step. Objectives of this research study could include: identify a new business that would be successful in the community in question, determine the size and composition of a target market for the business venture, and collect any relevant primary and secondary data that would support such a venture. At this point, the definition of the problem may be “Why are cat owners not buying our new cat toy subscription service?”

Additionally, during this first step we would want to investigate our target population for research. This is similar to a target market, as it is the group that comprises the population of interest for the study. In order to have a successful research outcome, the researcher should start with an understanding of the problem in the current situational environment.

Develop the Research Plan

Step two is to develop the research plan. What type of research is necessary to meet the established objectives of the first step? How will this data be collected? Additionally, what is the time frame of the research and budget to consider? If you must have information in the next week, a different plan would be implemented than in a situation where several months were allowed. These are issues that a researcher should address in order to meet the needs identified.

Research is often classified as coming from one of two types of data: primary and secondary. Primary data is unique information that is collected by the specific researcher with the current project in mind. This type of research doesn’t currently exist until it is pulled together for the project. Examples of primary data collection include survey, observation, experiment, or focus group data that is gathered for the current project.

Secondary data is any research that was completed for another purpose but can be used to help inform the research process. Secondary data comes in many forms and includes census data, journal articles, previously collected survey or focus group data of related topics, and compiled company data. Secondary data may be internal, such as the company’s sales records for a previous quarter, or external, such as an industry report of all related product sales. Syndicated data , a type of external secondary data, is available through subscription services and is utilized by many marketers. As you can see in Table 6.1, primary and secondary data features are often opposite—the positive aspects of primary data are the negative side of secondary data.

There are four research types that can be used: exploratory, descriptive, experimental, and ethnographic research designs (see Figure 6.4). Each type has specific formats of data that can be collected. Qualitative research can be shared through words, descriptions, and open-ended comments. Qualitative data gives context but cannot be reduced to a statistic. Qualitative data examples are categorical and include case studies, diary accounts, interviews, focus groups, and open-ended surveys. By comparison, quantitative data is data that can be reduced to number of responses. The number of responses to each answer on a multiple-choice question is quantitative data. Quantitative data is numerical and includes things like age, income, group size, and height.

Exploratory research is usually used when additional general information in desired about a topic. When in the initial steps of a new project, understanding the landscape is essential, so exploratory research helps the researcher to learn more about the general nature of the industry. Exploratory research can be collected through focus groups, interviews, and review of secondary data. When examining an exploratory research design, the best use is when your company hopes to collect data that is generally qualitative in nature. 7

For instance, if a company is considering a new service for registered users but is not quite sure how well the new service will be received or wants to gain clarity of exactly how customers may use a future service, the company can host a focus group. Focus groups and interviews will be examined later in the chapter. The insights collected during the focus group can assist the company when designing the service, help to inform promotional campaign options, and verify that the service is going to be a viable option for the company.

Descriptive research design takes a bigger step into collection of data through primary research complemented by secondary data. Descriptive research helps explain the market situation and define an “opinion, attitude, or behavior” of a group of consumers, employees, or other interested groups. 8 The most common method of deploying a descriptive research design is through the use of a survey. Several types of surveys will be defined later in this chapter. Descriptive data is quantitative in nature, meaning the data can be distilled into a statistic, such as in a table or chart.

Again, descriptive data is helpful in explaining the current situation. In the opening example of LEGO , the company wanted to describe the situation regarding children’s use of its product. In order to gather a large group of opinions, a survey was created. The data that was collected through this survey allowed the company to measure the existing perceptions of parents so that alterations could be made to future plans for the company.

Experimental research , also known as causal research , helps to define a cause-and-effect relationship between two or more factors. This type of research goes beyond a correlation to determine which feature caused the reaction. Researchers generally use some type of experimental design to determine a causal relationship. An example is A/B testing, a situation where one group of research participants, group A, is exposed to one treatment and then compared to the group B participants, who experience a different situation. An example might be showing two different television commercials to a panel of consumers and then measuring the difference in perception of the product. Another example would be to have two separate packaging options available in different markets. This research would answer the question “Does one design sell better than the other?” Comparing that to the sales in each market would be part of a causal research study. 9

The final method of collecting data is through an ethnographic design. Ethnographic research is conducted in the field by watching people interact in their natural environment. For marketing research, ethnographic designs help to identify how a product is used, what actions are included in a selection, or how the consumer interacts with the product. 10

Examples of ethnographic research would be to observe how a consumer uses a particular product, such as baking soda. Although many people buy baking soda, its uses are vast. So are they using it as a refrigerator deodorizer, a toothpaste, to polish a belt buckle, or to use in baking a cake?

Select the Data Collection Method

Data collection is the systematic gathering of information that addresses the identified problem. What is the best method to do that? Picking the right method of collecting data requires that the researcher understand the target population and the design picked in the previous step. There is no perfect method; each method has both advantages and disadvantages, so it’s essential that the researcher understand the target population of the research and the research objectives in order to pick the best option.

Sometimes the data desired is best collected by watching the actions of consumers. For instance, how many cars pass a specific billboard in a day? What website led a potential customer to the company’s website? When are consumers most likely to use the snack vending machines at work? What time of day has the highest traffic on a social media post? What is the most streamed television program this week? Observational research is the collecting of data based on actions taken by those observed. Many data observations do not require the researched individuals to participate in the data collection effort to be highly valuable. Some observation requires an individual to watch and record the activities of the target population through personal observations .

Unobtrusive observation happens when those being observed aren’t aware that they are being watched. An example of an unobtrusive observation would be to watch how shoppers interact with a new stuffed animal display by using a one-way mirror. Marketers can identify which products were handled more often while also determining which were ignored.

Other methods can use technology to collect the data instead. Instances of mechanical observation include the use of vehicle recorders, which count the number of vehicles that pass a specific location. Computers can also assess the number of shoppers who enter a store, the most popular entry point for train station commuters, or the peak time for cars to park in a parking garage.

When you want to get a more in-depth response from research participants, one method is to complete a one-on-one interview . One-on-one interviews allow the researcher to ask specific questions that match the respondent’s unique perspective as well as follow-up questions that piggyback on responses already completed. An interview allows the researcher to have a deeper understanding of the needs of the respondent, which is another strength of this type of data collection. The downside of personal interviews it that a discussion can be very time-consuming and results in only one respondent’s answers. Therefore, in order to get a large sample of respondents, the interview method may not be the most efficient method.

Taking the benefits of an interview and applying them to a small group of people is the design of a focus group . A focus group is a small number of people, usually 8 to 12, who meet the sample requirements. These individuals together are asked a series of questions where they are encouraged to build upon each other’s responses, either by agreeing or disagreeing with the other group members. Focus groups are similar to interviews in that they allow the researcher, through a moderator, to get more detailed information from a small group of potential customers (see Figure 6.5).

Link to Learning: Focus Groups

Focus groups are a common method for gathering insights into consumer thinking and habits. Companies will use this information to develop or shift their initiatives. The best way to understand a focus group is to watch a few examples or explanations. TED-Ed has this video that explains how focus groups work.

You might be asking when it is best to use a focus group or a survey. Learn the differences, the pros and cons of each, and the specific types of questions you ask in both situations in this article .

Preparing for a focus group is critical to success. It requires knowing the material and questions while also managing the group of people. Watch this video to learn more about how to prepare for a focus group and the types of things to be aware of.

One of the benefits of a focus group over individual interviews is that synergy can be generated when a participant builds on another’s ideas. Additionally, for the same amount of time, a researcher can hear from multiple respondents instead of just one. 11 Of course, as with every method of data collection, there are downsides to a focus group as well. Focus groups have the potential to be overwhelmed by one or two aggressive personalities, and the format can discourage more reserved individuals from speaking up. Finally, like interviews, the responses in a focus group are qualitative in nature and are difficult to distill into an easy statistic or two.

Combining a variety of questions on one instrument is called a survey or questionnaire . Collecting primary data is commonly done through surveys due to their versatility. A survey allows the researcher to ask the same set of questions of a large group of respondents. Response rates of surveys are calculated by dividing the number of surveys completed by the total number attempted. Surveys are flexible and can collect a variety of quantitative and qualitative data. Questions can include simplified yes or no questions, select all that apply, questions that are on a scale, or a variety of open-ended types of questions. There are four types of surveys (see Table 6.2) we will cover, each with strengths and weaknesses defined.

Let’s start off with mailed surveys —surveys that are sent to potential respondents through a mail service. Mailed surveys used to be more commonly used due to the ability to reach every household. In some instances, a mailed survey is still the best way to collect data. For example, every 10 years the United States conducts a census of its population (see Figure 6.6). The first step in that data collection is to send every household a survey through the US Postal Service (USPS). The benefit is that respondents can complete and return the survey at their convenience. The downside of mailed surveys are expense and timeliness of responses. A mailed survey requires postage, both when it is sent to the recipient and when it is returned. That, along with the cost of printing, paper, and both sending and return envelopes, adds up quickly. Additionally, physically mailing surveys takes time. One method of reducing cost is to send with bulk-rate postage, but that slows down the delivery of the survey. Also, because of the convenience to the respondent, completed surveys may be returned several weeks after being sent. Finally, some mailed survey data must be manually entered into the analysis software, which can cause delays or issues due to entry errors.

Phone surveys are completed during a phone conversation with the respondent. Although the traditional phone survey requires a data collector to talk with the participant, current technology allows for computer-assisted voice surveys or surveys to be completed by asking the respondent to push a specific button for each potential answer. Phone surveys are time intensive but allow the respondent to ask questions and the surveyor to request additional information or clarification on a question if warranted. Phone surveys require the respondent to complete the survey simultaneously with the collector, which is a limitation as there are restrictions for when phone calls are allowed. According to Telephone Consumer Protection Act , approved by Congress in 1991, no calls can be made prior to 8:00 a.m. or after 9:00 p.m. in the recipient’s time zone. 12 Many restrictions are outlined in this original legislation and have been added to since due to ever-changing technology.

In-person surveys are when the respondent and data collector are physically in the same location. In-person surveys allow the respondent to share specific information, ask questions of the surveyor, and follow up on previous answers. Surveys collected through this method can take place in a variety of ways: through door-to-door collection, in a public location, or at a person’s workplace. Although in-person surveys are time intensive and require more labor to collect data than some other methods, in some cases it’s the best way to collect the required data. In-person surveys conducted through a door-to-door method is the follow-up used for the census if respondents do not complete the mailed survey. One of the downsides of in-person surveys is the reluctance of potential respondents to stop their current activity and answer questions. Furthermore, people may not feel comfortable sharing private or personal information during a face-to-face conversation.

Electronic surveys are sent or collected through digital means and is an opportunity that can be added to any of the above methods as well as some new delivery options. Surveys can be sent through email, and respondents can either reply to the email or open a hyperlink to an online survey (see Figure 6.7). Additionally, a letter can be mailed that asks members of the survey sample to log in to a website rather than to return a mailed response. Many marketers now use links, QR codes, or electronic devices to easily connect to a survey. Digitally collected data has the benefit of being less time intensive and is often a more economical way to gather and input responses than more manual methods. A survey that could take months to collect through the mail can be completed within a week through digital means.

Design the Sample

Although you might want to include every possible person who matches your target market in your research, it’s often not a feasible option, nor is it of value. If you did decide to include everyone, you would be completing a census of the population. Getting everyone to participate would be time-consuming and highly expensive, so instead marketers use a sample , whereby a portion of the whole is included in the research. It’s similar to the samples you might receive at the grocery store or ice cream shop; it isn’t a full serving, but it does give you a good taste of what the whole would be like.

So how do you know who should be included in the sample? Researchers identify parameters for their studies, called sample frames . A sample frame for one study may be college students who live on campus; for another study, it may be retired people in Dallas, Texas, or small-business owners who have fewer than 10 employees. The individual entities within the sampling frame would be considered a sampling unit . A sampling unit is each individual respondent that would be considered as matching the sample frame established by the research. If a researcher wants businesses to participate in a study, then businesses would be the sampling unit in that case.

The number of sampling units included in the research is the sample size . Many calculations can be conducted to indicate what the correct size of the sample should be. Issues to consider are the size of the population, the confidence level that the data represents the entire population, the ease of accessing the units in the frame, and the budget allocated for the research.

There are two main categories of samples: probability and nonprobability (see Figure 6.8). Probability samples are those in which every member of the sample has an identified likelihood of being selected. Several probability sample methods can be utilized. One probability sampling technique is called a simple random sample , where not only does every person have an identified likelihood of being selected to be in the sample, but every person also has an equal chance of exclusion. An example of a simple random sample would be to put the names of all members of a group into a hat and simply draw out a specific number to be included. You could say a raffle would be a good example of a simple random sample.

Another probability sample type is a stratified random sample , where the population is divided into groups by category and then a random sample of each category is selected to participate. For instance, if you were conducting a study of college students from your school and wanted to make sure you had all grade levels included, you might take the names of all students and split them into different groups by grade level—freshman, sophomore, junior, and senior. Then, from those categories, you would draw names out of each of the pools, or strata.

A nonprobability sample is a situation in which each potential member of the sample has an unknown likelihood of being selected in the sample. Research findings that are from a nonprobability sample cannot be applied beyond the sample. Several examples of nonprobability sampling are available to researchers and include two that we will look at more closely: convenience sampling and judgment sampling.

The first nonprobability sampling technique is a convenience sample . Just like it sounds, a convenience sample is when the researcher finds a group through a nonscientific method by picking potential research participants in a convenient manner. An example might be to ask other students in a class you are taking to complete a survey that you are doing for a class assignment or passing out surveys at a basketball game or theater performance.

A judgment sample is a type of nonprobability sample that allows the researcher to determine if they believe the individual meets the criteria set for the sample frame to complete the research. For instance, you may be interested in researching mothers, so you sit outside a toy store and ask an individual who is carrying a baby to participate.

Collect the Data

Now that all the plans have been established, the instrument has been created, and the group of participants has been identified, it is time to start collecting data. As explained earlier in this chapter, data collection is the process of gathering information from a variety of sources that will satisfy the research objectives defined in step one. Data collection can be as simple as sending out an email with a survey link enclosed or as complex as an experiment with hundreds of consumers. The method of collection directly influences the length of this process. Conducting personal interviews or completing an experiment, as previously mentioned, can add weeks or months to the research process, whereas sending out an electronic survey may allow a researcher to collect the necessary data in a few days. 13

Analyze and Interpret the Data

Once the data has been collected, the process of analyzing it may begin. Data analysis is the distillation of the information into a more understandable and actionable format. The analysis itself can take many forms, from the use of basic statistics to a more comprehensive data visualization process. First, let’s discuss some basic statistics that can be used to represent data.

The first is the mean of quantitative data. A mean is often defined as the arithmetic average of values. The formula is:

A common use of the mean calculation is with exam scores. Say, for example, you have earned the following scores on your marketing exams: 72, 85, 68, and 77. To find the mean, you would add up the four scores for a total of 302. Then, in order to generate a mean, that number needs to be divided by the number of exam scores included, which is 4. The mean would be 302 divided by 4, for a mean test score of 75.5. Understanding the mean can help to determine, with one number, the weight of a particular value.

Another commonly used statistic is median. The median is often referred to as the middle number. To generate a median, all the numeric answers are placed in order, and the middle number is the median. Median is a common statistic when identifying the income level of a specific geographic region. 14 For instance, the median household income for Albuquerque, New Mexico, between 2015 and 2019 was $52,911. 15 In this case, there are just as many people with an income above the amount as there are below.

Mode is another statistic that is used to represent data of all types, as it can be used with quantitative or qualitative data and represents the most frequent answer. Eye color, hair color, and vehicle color can all be presented with a mode statistic. Additionally, some researchers expand on the concept of mode and present the frequency of all responses, not just identifying the most common response. Data such as this can easily be presented in a frequency graph, 16 such as the one in Figure 6.9.

Additionally, researchers use other analyses to represent the data rather than to present the entirety of each response. For example, maybe the relationship between two values is important to understand. In this case, the researcher may share the data as a cross tabulation (see Figure 6.10). Below is the same data as above regarding social media use cross tabulated with gender—as you can see, the data is more descriptive when you can distinguish between the gender identifiers and how much time is spent per day on social media.

Not all data can be presented in a graphical format due to the nature of the information. Sometimes with qualitative methods of data collection, the responses cannot be distilled into a simple statistic or graph. In that case, the use of quotations, otherwise known as verbatims , can be used. These are direct statements presented by the respondents. Often you will see a verbatim statement when reading a movie or book review. The critic’s statements are used in part or in whole to represent their feelings about the newly released item.

Link to Learning: Infographics

As they say, a picture is worth a thousand words. For this reason, research results are often shown in a graphical format in which data can be taken in quickly, called an infographic .

Check out this infographic on what components make for a good infographic. As you can see, a good infographic needs four components: data, design, a story, and the ability to share it with others. Without all four pieces, it is not as valuable a resource as it could be. The ultimate infographic is represented as the intersection of all four.

Infographics are particularly advantageous online. Refer to this infographic on why they are beneficial to use online .

Prepare the Research Report

The marketing research process concludes by sharing the generated data and makes recommendations for future actions. What starts as simple data must be interpreted into an analysis. All information gathered should be conveyed in order to make decisions for future marketing actions. One item that is often part of the final step is to discuss areas that may have been missed with the current project or any area of further study identified while completing it. Without the final step of the marketing research project, the first six steps are without value. It is only after the information is shared, through a formal presentation or report, that those recommendations can be implemented and improvements made. The first six steps are used to generate information, while the last is to initiate action. During this last step is also when an evaluation of the process is conducted. If this research were to be completed again, how would we do it differently? Did the right questions get answered with the survey questions posed to the respondents? Follow-up on some of these key questions can lead to additional research, a different study, or further analysis of data collected.

Methods of Quantifying Marketing Research

One of the ways of sharing information gained through marketing research is to quantify the research . Quantifying the research means to take a variety of data and compile into a quantity that is more easily understood. This is a simple process if you want to know how many people attended a basketball game, but if you want to quantify the number of students who made a positive comment on a questionnaire, it can be a little more complicated. Researchers have a variety of methods to collect and then share these different scores. Below are some of the most common types used in business.

Is a customer aware of a product, brand, or company? What is meant by awareness? Awareness in the context of marketing research is when a consumer is familiar with the product, brand, or company. It does not assume that the consumer has tried the product or has purchased it. Consumers are just aware. That is a measure that many businesses find valuable. There are several ways to measure awareness. For instance, the first type of awareness is unaided awareness . This type of awareness is when no prompts for a product, brand, or company are given. If you were collecting information on fast-food restaurants, you might ask a respondent to list all the fast-food restaurants that serve a chicken sandwich. Aided awareness would be providing a list of products, brands, or companies and the respondent selects from the list. For instance, if you give a respondent a list of fast-food restaurants and ask them to mark all the locations with a chicken sandwich, you are collecting data through an aided method. Collecting these answers helps a company determine how the business location compares to those of its competitors. 17

Customer Satisfaction (CSAT)

Have you ever been asked to complete a survey at the end of a purchase? Many businesses complete research on buying, returning, or other customer service processes. A customer satisfaction score , also known as CSAT, is a measure of how satisfied customers are with the product, brand, or service. A CSAT score is usually on a scale of 0 to 100 percent. 18 But what constitutes a “good” CSAT score? Although what is identified as good can vary by industry, normally anything in the range from 75 to 85 would be considered good. Of course, a number higher than 85 would be considered exceptional. 19

Customer Acquisition Cost (CAC) and Customer Effort Score (CES)

Other metrics often used are a customer acquisition cost (CAC) and customer effort score (CES). How much does it cost a company to gain customers? That’s the purpose of calculating the customer acquisition cost. To calculate the customer acquisition cost , a company would need to total all expenses that were accrued to gain new customers. This would include any advertising, public relations, social media postings, etc. When a total cost is determined, it is divided by the number of new customers gained through this campaign.

The final score to discuss is the customer effort score , also known as a CES. The CES is a “survey used to measure the ease of service experience with an organization.” 20 Companies that are easy to work with have a better CES than a company that is notorious for being difficult. An example would be to ask a consumer about the ease of making a purchase online by incorporating a one-question survey after a purchase is confirmed. If a number of responses come back negative or slightly negative, the company will realize that it needs to investigate and develop a more user-friendly process.

Knowledge Check

It’s time to check your knowledge on the concepts presented in this section. Refer to the Answer Key at the end of the book for feedback.

Sagar is completing a marketing research project and is at the stage where he must decide who will be sent the survey. What stage of the marketing research plan is Sagar currently on?

• Defining the problem
• Developing the research plan
• Selecting a data collection method
• Designing the sample

A strength of mailing a survey is that ________.

• you are able to send it to all households in an area
• it is inexpensive
• responses are automatically loaded into the software
• the data comes in quickly

Bartlett is considering the different types of data that can be pulled together for a research project. Currently they have collected journal articles, survey data, and syndicated data and completed a focus group. What type(s) of data have they collected?

• Primary data
• Secondary data
• Secondary and primary data
• Professional data

Which statistic can be used to show how many people responded to a survey question with “strongly agree”?

Why would a researcher want to use a cross tabulation?

• It shows how respondents answered two variables in relation to each other and can help determine patterns by different groups of respondents.
• By presenting the data in the form of a picture, the information is easier for the reader to understand.
• It is an easy way to see how often one answer is selected by the respondents.
• This analysis can used to present interview or focus group data.

How to write a research plan: Step-by-step guide

Last updated

30 January 2024

Reviewed by

Today’s businesses and institutions rely on data and analytics to inform their product and service decisions. These metrics influence how organizations stay competitive and inspire innovation. However, gathering data and insights requires carefully constructed research, and every research project needs a roadmap. This is where a research plan comes into play.

There’s general research planning; then there’s an official, well-executed research plan. Whatever data-driven research project you’re gearing up for, the research plan will be your framework for execution. The plan should also be detailed and thorough, with a diligent set of criteria to formulate your research efforts. Not including these key elements in your plan can be just as harmful as having no plan at all.

Read this step-by-step guide for writing a detailed research plan that can apply to any project, whether it’s scientific, educational, or business-related.

• What is a research plan?

A research plan is a documented overview of a project in its entirety, from end to end. It details the research efforts, participants, and methods needed, along with any anticipated results. It also outlines the project’s goals and mission, creating layers of steps to achieve those goals within a specified timeline.

Without a research plan, you and your team are flying blind, potentially wasting time and resources to pursue research without structured guidance.

The principal investigator, or PI, is responsible for facilitating the research oversight. They will create the research plan and inform team members and stakeholders of every detail relating to the project. The PI will also use the research plan to inform decision-making throughout the project.

• Why do you need a research plan?

Create a research plan before starting any official research to maximize every effort in pursuing and collecting the research data. Crucially, the plan will model the activities needed at each phase of the research project.

Like any roadmap, a research plan serves as a valuable tool providing direction for those involved in the project—both internally and externally. It will keep you and your immediate team organized and task-focused while also providing necessary definitions and timelines so you can execute your project initiatives with full understanding and transparency.

External stakeholders appreciate a working research plan because it’s a great communication tool, documenting progress and changing dynamics as they arise. Any participants of your planned research sessions will be informed about the purpose of your study, while the exercises will be based on the key messaging outlined in the official plan.

Here are some of the benefits of creating a research plan document for every project:

Project organization and structure

Well-informed participants

All stakeholders and teams align in support of the project

Clearly defined project definitions and purposes

Distractions are eliminated, prioritizing task focus

Timely management of individual task schedules and roles

Costly reworks are avoided

• What should a research plan include?

The different aspects of your research plan will depend on the nature of the project. However, most official research plan documents will include the core elements below. Each aims to define the problem statement, devising an official plan for seeking a solution.

Specific project goals and individual objectives

Ideal strategies or methods for reaching those goals

Required resources

Descriptions of the target audience, sample sizes, demographics, and scopes

Key performance indicators (KPIs)

Project background

Research and testing support

Preliminary studies and progress reporting mechanisms

Cost estimates and change order processes

Depending on the research project’s size and scope, your research plan could be brief—perhaps only a few pages of documented plans. Alternatively, it could be a fully comprehensive report. Either way, it’s an essential first step in dictating your project’s facilitation in the most efficient and effective way.

• How to write a research plan for your project

When you start writing your research plan, aim to be detailed about each step, requirement, and idea. The more time you spend curating your research plan, the more precise your research execution efforts will be.

Account for every potential scenario, and be sure to address each and every aspect of the research.

Consider following this flow to develop a great research plan for your project:

Define your project’s purpose

Start by defining your project’s purpose. Identify what your project aims to accomplish and what you are researching. Remember to use clear language.

Thinking about the project’s purpose will help you set realistic goals and inform how you divide tasks and assign responsibilities. These individual tasks will be your stepping stones to reach your overarching goal.

Additionally, you’ll want to identify the specific problem, the usability metrics needed, and the intended solutions.

Know the following three things about your project’s purpose before you outline anything else:

What you’re doing

Why you’re doing it

What you expect from it

Identify individual objectives

With your overarching project objectives in place, you can identify any individual goals or steps needed to reach those objectives. Break them down into phases or steps. You can work backward from the project goal and identify every process required to facilitate it.

Be mindful to identify each unique task so that you can assign responsibilities to various team members. At this point in your research plan development, you’ll also want to assign priority to those smaller, more manageable steps and phases that require more immediate or dedicated attention.

Select research methods

Research methods might include any of the following:

User interviews: this is a qualitative research method where researchers engage with participants in one-on-one or group conversations. The aim is to gather insights into their experiences, preferences, and opinions to uncover patterns, trends, and data.

Field studies: this approach allows for a contextual understanding of behaviors, interactions, and processes in real-world settings. It involves the researcher immersing themselves in the field, conducting observations, interviews, or experiments to gather in-depth insights.

Card sorting: participants categorize information by sorting content cards into groups based on their perceived similarities. You might use this process to gain insights into participants’ mental models and preferences when navigating or organizing information on websites, apps, or other systems.

Focus groups: use organized discussions among select groups of participants to provide relevant views and experiences about a particular topic.

Diary studies: ask participants to record their experiences, thoughts, and activities in a diary over a specified period. This method provides a deeper understanding of user experiences, uncovers patterns, and identifies areas for improvement.

Five-second testing: participants are shown a design, such as a web page or interface, for just five seconds. They then answer questions about their initial impressions and recall, allowing you to evaluate the design’s effectiveness.

Surveys: get feedback from participant groups with structured surveys. You can use online forms, telephone interviews, or paper questionnaires to reveal trends, patterns, and correlations.

Tree testing: tree testing involves researching web assets through the lens of findability and navigability. Participants are given a textual representation of the site’s hierarchy (the “tree”) and asked to locate specific information or complete tasks by selecting paths.

Usability testing: ask participants to interact with a product, website, or application to evaluate its ease of use. This method enables you to uncover areas for improvement in digital key feature functionality by observing participants using the product.

Live website testing: research and collect analytics that outlines the design, usability, and performance efficiencies of a website in real time.

There are no limits to the number of research methods you could use within your project. Just make sure your research methods help you determine the following:

What do you plan to do with the research findings?

What decisions will this research inform? How can your stakeholders leverage the research data and results?

Recruit participants and allocate tasks

Next, identify the participants needed to complete the research and the resources required to complete the tasks. Different people will be proficient at different tasks, and having a task allocation plan will allow everything to run smoothly.

Prepare a thorough project summary

Every well-designed research plan will feature a project summary. This official summary will guide your research alongside its communications or messaging. You’ll use the summary while recruiting participants and during stakeholder meetings. It can also be useful when conducting field studies.

Ensure this summary includes all the elements of your research project. Separate the steps into an easily explainable piece of text that includes the following:

An introduction: the message you’ll deliver to participants about the interview, pre-planned questioning, and testing tasks.

Interview questions: prepare questions you intend to ask participants as part of your research study, guiding the sessions from start to finish.

An exit message: draft messaging your teams will use to conclude testing or survey sessions. These should include the next steps and express gratitude for the participant’s time.

Create a realistic timeline

While your project might already have a deadline or a results timeline in place, you’ll need to consider the time needed to execute it effectively.

Realistically outline the time needed to properly execute each supporting phase of research and implementation. And, as you evaluate the necessary schedules, be sure to include additional time for achieving each milestone in case any changes or unexpected delays arise.

For this part of your research plan, you might find it helpful to create visuals to ensure your research team and stakeholders fully understand the information.

Determine how to present your results

A research plan must also describe how you intend to present your results. Depending on the nature of your project and its goals, you might dedicate one team member (the PI) or assume responsibility for communicating the findings yourself.

In this part of the research plan, you’ll articulate how you’ll share the results. Detail any materials you’ll use, such as:

Presentations and slides

A project report booklet

A project findings pamphlet

Documents with key takeaways and statistics

Graphic visuals to support your findings

• Format your research plan

As you create your research plan, you can enjoy a little creative freedom. A plan can assume many forms, so format it how you see fit. Determine the best layout based on your specific project, intended communications, and the preferences of your teams and stakeholders.

Find format inspiration among the following layouts:

Written outlines

Narrative storytelling

Visual mapping

Graphic timelines

Remember, the research plan format you choose will be subject to change and adaptation as your research and findings unfold. However, your final format should ideally outline questions, problems, opportunities, and expectations.

• Research plan example

Imagine you’ve been tasked with finding out how to get more customers to order takeout from an online food delivery platform. The goal is to improve satisfaction and retain existing customers. You set out to discover why more people aren’t ordering and what it is they do want to order or experience. 

You identify the need for a research project that helps you understand what drives customer loyalty. But before you jump in and start calling past customers, you need to develop a research plan—the roadmap that provides focus, clarity, and realistic details to the project.

Here’s an example outline of a research plan you might put together:

Project title

Project members involved in the research plan

Purpose of the project (provide a summary of the research plan’s intent)

Objective 1 (provide a short description for each objective)

Objective 2

Objective 3

Proposed timeline

Audience (detail the group you want to research, such as customers or non-customers)

Budget (how much you think it might cost to do the research)

Risk factors/contingencies (any potential risk factors that may impact the project’s success)

Remember, your research plan doesn’t have to reinvent the wheel—it just needs to fit your project’s unique needs and aims.

Customizing a research plan template

Some companies offer research plan templates to help get you started. However, it may make more sense to develop your own customized plan template. Be sure to include the core elements of a great research plan with your template layout, including the following:

Introductions to participants and stakeholders

Background problems and needs statement

Significance, ethics, and purpose

Research methods, questions, and designs

Preliminary beliefs and expectations

Implications and intended outcomes

Realistic timelines for each phase

Conclusion and presentations

How many pages should a research plan be?

Generally, a research plan can vary in length between 500 to 1,500 words. This is roughly three pages of content. More substantial projects will be 2,000 to 3,500 words, taking up four to seven pages of planning documents.

What is the difference between a research plan and a research proposal?

A research plan is a roadmap to success for research teams. A research proposal, on the other hand, is a dissertation aimed at convincing or earning the support of others. Both are relevant in creating a guide to follow to complete a project goal.

What are the seven steps to developing a research plan?

While each research project is different, it’s best to follow these seven general steps to create your research plan:

Defining the problem

Identifying goals

Choosing research methods

Recruiting participants

Preparing the brief or summary

Establishing task timelines

Defining how you will present the findings

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Home Market Research

How to Write a Market Research Plan

In the past, we BUDGETED for market research.  This usually included our annual customer satisfaction survey and then we simply looked at our marketing plan an set aside a budget for the new product research we were going to do in the next year.

These days things are a little different.  I find myself recommending a market research plan over and over to small businesses and that means that I had better start explaining what a market research plan looks like.

LEARN ABOUT: Market research vs marketing research

Why You Need a Research Plan NOW – When You Didn’t Need One in the Past?

The short answer is that it’s a response to several trends that are going on in our lives today – that weren’t there in the past:

• Social Media – The ability to use social media as a tool to collect feedback and analyze text and chatter from your marketplace about your company and your brand is a relatively new phenomenon.  The challenge is that if left unmanaged and under-leveraged, it goes to waste as a resource of valuable market research information.

LEARN ABOUT:  Market research industry

• Time Slicing – This is an interesting behavioral trend among all of us.  You can easily compare it to multi-tasking.   Time slicing, however is more like inserting short tasks in between larger tasks.  Such as checking emails on your mobile device while waiting in line.
• Mobile Devices – The use of mobile devices as computers and communication tools and quite literally “time killers” opens up a new way to reach our respondents when they have just a few minutes to spare.

The Market Research Plan Outline

• Set Goals :  I think it’s important to set a general goal or direction about what decisions you’re going to be making over the course of the year.  For the sake of this outline, I’m treating goals as more general statements such as “Start marketing products online.”  The benefit of making a general goal statement is that it gets your mind focused in a particular direction and allows for some flexibility – which you’re going to need as you start strategizing around the information and feedback that you’re planning on collecting.
• Set objectives :  Every research project has objectives and every marketing plan has objectives.  So it stands to reason that your research plan will too.  In this case, your objectives around the research plan might include the decisions that you are trying to make right now around that general goal of “marketing products online”.  Some possible objectives might include understanding who our customers would be online, or how our target customer shops online or to what degree do they use mobile devices to shop or research products and services.
• Lay out your collection channels. You’ve heard the term distribution channel, well in research I call it the collection channel.  This involves listing all the possible ways that you can collect feedback and information from your target audience.  These might include online surveys, MicroPoll, IdeaScale (Crowd sourcing), mobile device surveys, social media, and some others.
• Brainstorm a list of questions .  Now you can start brainstorming questions that will help you make your decisions.  I like brainstorming questions first because it focuses your mind on exactly what you want to know and why you want to know it.  We can always edit the questions later based on what collection channel is best suited for the question.
• Assign questions to the collection channels. Again none of this is cast in stone.  But it helps you get your mind around how to best leverage the collection tools that are available to you.  Start assigning your questions to the channels that will provide the best information.  For example – treat your social media channels as you might a focus group. Start conversations with your Facebook Fans and ask questions.  LinkedIn, Facebook and Twitter are all ideal channels for getting your target audience involved in helping you develop more specific questions around the issues that your customers care most about.  Not only are you getting input into how to frame questions and what to focus on – you’re getting some additional marketing and PR buzz about your mission and vision about what you’re developing.
• Use crowd sourcing tools like IdeaScale to prioritize suggestions .  Now that you’ve gotten ideas from social media conversations – create an IdeaScale space and seed the space with the feedback you’ve learned.  Then launch that page to your social media community and ask them to vote and continue the feedback on this space.  Don’t forget to visit the space and offer feedback to the community on how your development is going.  Again – this is more marketing and PR.
• Start putting your online surveys together. Now you might be ready to put some online marketing surveys together.  Keep in mind that NONE of your respondents want to spend more than 5 minutes on a survey.  Just like online videos. their attention span is about 2-3 minutes at best.  After that they are bored and tired and leave.  If your survey takes longer than 5 minutes – you will need to look for alternative ways to ask those questions.
• Use MicroPoll to supplement your online survey. MicroPoll is underutilized as a survey instrument.  People LOVE polls because they are short and they offer immediate feedback.  If your online survey takes longer than 5 minutes.  Take a look at which questions you can transfer to MicroPoll.  You can launch a new MicroPoll every week.  This will keep your audience engaged and involved in what you’re up to.  (I think that’s more marketing and PR – while doing research – that’s what I call leverage and multi-tasking)
• Can you take it viral? Another important question to ask yourself is if you can take your online survey viral in order to collect feedback from a broader market segment than you are able to reach.  One word of warning.  Viral surveys are most successful when you are asking very broad and socially relevant questions.  In other words – questions around topics that people in a broader community can answer.  NOT technically sophisticated questions or questions that contain customer or sensitive information.  A good question for a viral survey might be “What percentage or sales do you spend on market research?”  This is a general enough question anyone can answer AND the answers across industry segments would be valuable.

LEARN ABOUT: market research trends

Last Minute Tips for Successful Market Research Plans

• Keep it short and simple.  No more than 5 pages.
• Leverage the free and low-cost tools that are available
• Brainstorm great questions.  This is the key.  No respondent wants to answer bad questions.

In future posts – I will break some of these down into more focused practical how-to’s.  In the meantime — do YOU currently do a market research plan?  What are your tips, Do’s and Don’ts?

Reader Interactions

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[…] groups are probably the most important, yet most overlooked component of a market research plan.  Having a group of people in a room where you can watch their body language and watch their […]

[…] How to Write a Market Research Plan – October 12, 2010 […]

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9 Key stages in your marketing research process

You can conduct your own marketing research. Follow these steps, add your own flair, knowledge and creativity, and you’ll have bespoke research to be proud of.

Marketing research is the term used to cover the concept, development, placement and evolution of your product or service, its growing customer base and its branding – starting with brand awareness , and progressing to (everyone hopes) brand equity . Like any research, it needs a robust process to be credible and useful.

Marketing research uses four essential key factors known as the ‘marketing mix’ , or the Four Ps of Marketing :

• Product (goods or service)
• Price ( how much the customer pays )
• Place (where the product is marketed)
• Promotion (such as advertising and PR)

These four factors need to work in harmony for a product or service to be successful in its marketplace.

The marketing research process – an overview

A typical marketing research process is as follows:

• Identify an issue, discuss alternatives and set out research objectives
• Develop a research program
• Choose a sample
• Gather information
• Gather data
• Organize and analyze information and data
• Present findings
• Make research-based decisions
• Take action based on insights

Step 1: Defining the marketing research problem

Defining a problem is the first step in the research process. In many ways, research starts with a problem facing management. This problem needs to be understood, the cause diagnosed, and solutions developed.

However, most management problems are not always easy to research, so they must first be translated into research problems. Once you approach the problem from a research angle, you can find a solution. For example, “sales are not growing” is a management problem, but translated into a research problem, it becomes “ why are sales not growing?” We can look at the expectations and experiences of several groups : potential customers, first-time buyers, and repeat purchasers. We can question whether the lack of sales is due to:

• Poor expectations that lead to a general lack of desire to buy, or
• Poor performance experience and a lack of desire to repurchase.

This, then, is the difference between a management problem and a research problem. Solving management problems focuses on actions: Do we advertise more? Do we change our advertising message? Do we change an under-performing product configuration? And if so, how?

Defining research problems, on the other hand, focus on the whys and hows, providing the insights you need to solve your management problem.

Step 2: Developing a research program: method of inquiry

The scientific method is the standard for investigation. It provides an opportunity for you to use existing knowledge as a starting point, and proceed impartially.

The scientific method includes the following steps:

• Define a problem
• Develop a hypothesis
• Make predictions based on the hypothesis
• Devise a test of the hypothesis
• Conduct the test
• Analyze the results

This terminology is similar to the stages in the research process. However, there are subtle differences in the way the steps are performed:

• the scientific research method is objective and fact-based, using quantitative research and impartial analysis
• the marketing research process can be subjective, using opinion and qualitative research, as well as personal judgment as you collect and analyze data

Step 3: Developing a research program: research method

As well as selecting a method of inquiry (objective or subjective), you must select a research method . There are two primary methodologies that can be used to answer any research question:

• Experimental research : gives you the advantage of controlling extraneous variables and manipulating one or more variables that influence the process being implemented.
• Non-experimental research : allows observation but not intervention – all you do is observe and report on your findings.

Step 4: Developing a research program: research design

Research design is a plan or framework for conducting marketing research and collecting data. It is defined as the specific methods and procedures you use to get the information you need.

There are three core types of marketing research designs: exploratory, descriptive, and causal . A thorough marketing research process incorporates elements of all of them.

Exploratory marketing research

This is a starting point for research. It’s used to reveal facts and opinions about a particular topic, and gain insight into the main points of an issue. Exploratory research is too much of a blunt instrument to base conclusive business decisions on, but it gives the foundation for more targeted study. You can use secondary research materials such as trade publications, books, journals and magazines and primary research using qualitative metrics, that can include open text surveys, interviews and focus groups.

Descriptive marketing research

This helps define the business problem or issue so that companies can make decisions, take action and monitor progress. Descriptive research is naturally quantitative – it needs to be measured and analyzed statistically , using more targeted surveys and questionnaires. You can use it to capture demographic information , evaluate a product or service for market, and monitor a target audience’s opinion and behaviors. Insights from descriptive research can inform conclusions about the market landscape and the product’s place in it.

Causal marketing research

This is useful to explore the cause and effect relationship between two or more variables. Like descriptive research , it uses quantitative methods, but it doesn’t merely report findings; it uses experiments to predict and test theories about a product or market. For example, researchers may change product packaging design or material, and measure what happens to sales as a result.

Step 5: Choose your sample

Your marketing research project will rarely examine an entire population. It’s more practical to use a sample - a smaller but accurate representation of the greater population. To design your sample, you’ll need to answer these questions:

• Which base population is the sample to be selected from? Once you’ve established who your relevant population is (your research design process will have revealed this), you have a base for your sample. This will allow you to make inferences about a larger population.
• What is the method (process) for sample selection? There are two methods of selecting a sample from a population:

1. Probability sampling : This relies on a random sampling of everyone within the larger population.

2. Non-probability sampling : This is based in part on the investigator’s judgment, and often uses convenience samples, or by other sampling methods that do not rely on probability.

• What is your sample size? This important step involves cost and accuracy decisions. Larger samples generally reduce sampling error and increase accuracy, but also increase costs. Find out your perfect sample size with our calculator .

Step 6: Gather data

Your research design will develop as you select techniques to use. There are many channels for collecting data, and it’s helpful to differentiate it into O-data (Operational) and X-data (Experience):

• O-data is your business’s hard numbers like costs, accounting, and sales. It tells you what has happened, but not why.
• X-data gives you insights into the thoughts and emotions of the people involved: employees, customers, brand advocates.

When you combine O-data with X-data, you’ll be able to build a more complete picture about success and failure - you’ll know why. Maybe you’ve seen a drop in sales (O-data) for a particular product. Maybe customer service was lacking, the product was out of stock, or advertisements weren’t impactful or different enough: X-data will reveal the reason why those sales dropped. So, while differentiating these two data sets is important, when they are combined, and work with each other, the insights become powerful.

With mobile technology, it has become easier than ever to collect data. Survey research has come a long way since market researchers conducted face-to-face, postal, or telephone surveys. You can run research through:

• Social media ( polls and listening )

Another way to collect data is by observation. Observing a customer’s or company’s past or present behavior can predict future purchasing decisions. Data collection techniques for predicting past behavior can include market segmentation , customer journey mapping and brand tracking .

Regardless of how you collect data, the process introduces another essential element to your research project: the importance of clear and constant communication .

And of course, to analyze information from survey or observation techniques, you must record your results . Gone are the days of spreadsheets. Feedback from surveys and listening channels can automatically feed into AI-powered analytics engines and produce results, in real-time, on dashboards.

Step 7: Analysis and interpretation

The words ‘ statistical analysis methods ’ aren’t usually guaranteed to set a room alight with excitement, but when you understand what they can do, the problems they can solve and the insights they can uncover, they seem a whole lot more compelling.

Statistical tests and data processing tools can reveal:

• Whether data trends you see are meaningful or are just chance results
• Your results in the context of other information you have
• Whether one thing affecting your business is more significant than others
• What your next research area should be
• Insights that lead to meaningful changes

There are several types of statistical analysis tools used for surveys. You should make sure that the ones you choose:

• Work on any platform - mobile, desktop, tablet etc.
• Integrate with your existing systems
• Are easy to use with user-friendly interfaces, straightforward menus, and automated data analysis
• Incorporate statistical analysis so you don’t just process and present your data, but refine it, and generate insights and predictions.

Here are some of the most common tools:

• Benchmarking : a way of taking outside factors into account so that you can adjust the parameters of your research. It ‘levels the playing field’ – so that your data and results are more meaningful in context. And gives you a more precise understanding of what’s happening.
• Regression analysis : this is used for working out the relationship between two (or more) variables. It is useful for identifying the precise impact of a change in an independent variable.
• T-test is used for comparing two data groups which have different mean values. For example, do women and men have different mean heights?
• Analysis of variance (ANOVA) Similar to the T-test, ANOVA is a way of testing the differences between three or more independent groups to see if they’re statistically significant.
• Cluster analysis : This organizes items into groups, or clusters, based on how closely associated they are.
• Factor analysis: This is a way of condensing many variables into just a few, so that your research data is less unwieldy to work with.
• Conjoint analysis : this will help you understand and predict why people make the choices they do. It asks people to make trade-offs when making decisions, just as they do in the real world, then analyzes the results to give the most popular outcome.
• Crosstab analysis : this is a quantitative market research tool used to analyze ‘categorical data’ - variables that are different and mutually exclusive, such as: ‘men’ and ‘women’, or ‘under 30’ and ‘over 30’.
• Text analysis and sentiment analysis : Analyzing human language and emotions is a rapidly-developing form of data processing, assigning positive, negative or neutral sentiment to customer messages and feedback.

Stats IQ can perform the most complicated statistical tests at the touch of a button using our online survey software , or data from other sources. Learn more about Stats iQ now .

Step 8: The marketing research results

Your marketing research process culminates in the research results. These should provide all the information the stakeholders and decision-makers need to understand the project.

The results will include:

• all your information
• a description of your research process
• the results
• conclusions
• recommended courses of action

They should also be presented in a form, language and graphics that are easy to understand, with a balance between completeness and conciseness, neither leaving important information out or allowing it to get so technical that it overwhelms the readers.

Traditionally, you would prepare two written reports:

• a technical report , discussing the methods, underlying assumptions and the detailed findings of the research project
• a summary report , that summarizes the research process and presents the findings and conclusions simply.

There are now more engaging ways to present your findings than the traditional PowerPoint presentations, graphs, and face-to-face reports:

• Live, interactive dashboards for sharing the most important information, as well as tracking a project in real time.
• Results-reports visualizations – tables or graphs with data visuals on a shareable slide deck
• Online presentation technology, such as Prezi
• Visual storytelling with infographics
• A single-page executive summary with key insights
• A single-page stat sheet with the top-line stats

You can also make these results shareable so that decision-makers have all the information at their fingertips.

Step 9 Turn your insights into action

Insights are one thing, but they’re worth very little unless they inform immediate, positive action. Here are a few examples of how you can do this:

• Stop customers leaving – negative sentiment among VIP customers gets picked up; the customer service team contacts the customers, resolves their issues, and avoids churn .
• Act on important employee concerns – you can set certain topics, such as safety, or diversity and inclusion to trigger an automated notification or Slack message to HR. They can rapidly act to rectify the issue.
• Address product issues – maybe deliveries are late, maybe too many products are faulty. When product feedback gets picked up through Smart Conversations, messages can be triggered to the delivery or product teams to jump on the problems immediately.
• Improve your marketing effectiveness - Understand how your marketing is being received by potential customers, so you can find ways to better meet their needs
• Grow your brand - Understand exactly what consumers are looking for, so you can make sure that you’re meeting their expectations

Download now: 8 Innovations to Modernize Market Research

Scott Smith

Scott Smith, Ph.D. is a contributor to the Qualtrics blog.

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How to do market research: The complete guide for your brand

Written by by Jacqueline Zote

Published on  April 13, 2023

Reading time  10 minutes

Blindly putting out content or products and hoping for the best is a thing of the past. Not only is it a waste of time and energy, but you’re wasting valuable marketing dollars in the process. Now you have a wealth of tools and data at your disposal, allowing you to develop data-driven marketing strategies . That’s where market research comes in, allowing you to uncover valuable insights to inform your business decisions.

Conducting market research not only helps you better understand how to sell to customers but also stand out from your competition. In this guide, we break down everything you need to know about market research and how doing your homework can help you grow your business.

Table of contents:

What is market research?

Why is market research important, types of market research, where to conduct market research.

• Steps for conducting market research
• Tools to use for market research

Market research is the process of gathering information surrounding your business opportunities. It identifies key information to better understand your audience. This includes insights related to customer personas and even trends shaping your industry.

Taking time out of your schedule to conduct research is crucial for your brand health. Here are some of the key benefits of market research:

Understand your customers’ motivations and pain points

Most marketers are out of touch with what their customers want. Moreover, these marketers are missing key information on what products their audience wants to buy.

Simply put, you can’t run a business if you don’t know what motivates your customers.

And spoiler alert: Your customers’ wants and needs change. Your customers’ behaviors today might be night and day from what they were a few years ago.

Market research holds the key to understanding your customers better. It helps you uncover their key pain points and motivations and understand how they shape their interests and behavior.

Figure out how to position your brand

Positioning is becoming increasingly important as more and more brands enter the marketplace. Market research enables you to spot opportunities to define yourself against your competitors.

Maybe you’re able to emphasize a lower price point. Perhaps your product has a feature that’s one of a kind. Finding those opportunities goes hand in hand with researching your market.

Maintain a strong pulse on your industry at large

Today’s marketing world evolves at a rate that’s difficult to keep up with.

Fresh products. Up-and-coming brands. New marketing tools. Consumers get bombarded with sales messages from all angles. This can be confusing and overwhelming.

By monitoring market trends, you can figure out the best tactics for reaching your target audience.

Not everyone conducts market research for the same reason. While some may want to understand their audience better, others may want to see how their competitors are doing. As such, there are different types of market research you can conduct depending on your goal.

Interview-based market research allows for one-on-one interactions. This helps the conversation to flow naturally, making it easier to add context. Whether this takes place in person or virtually, it enables you to gather more in-depth qualitative data.

Buyer persona research

Buyer persona research lets you take a closer look at the people who make up your target audience. You can discover the needs, challenges and pain points of each buyer persona to understand what they need from your business. This will then allow you to craft products or campaigns to resonate better with each persona.

Pricing research

In this type of research, brands compare similar products or services with a particular focus on pricing. They look at how much those products or services typically sell for so they can get more competitive with their pricing strategy.

Competitive analysis research

Competitor analysis gives you a realistic understanding of where you stand in the market and how your competitors are doing. You can use this analysis to find out what’s working in your industry and which competitors to watch out for. It even gives you an idea of how well those competitors are meeting consumer needs.

Depending on the competitor analysis tool you use, you can get as granular as you need with your research. For instance, Sprout Social lets you analyze your competitors’ social strategies. You can see what types of content they’re posting and even benchmark your growth against theirs.

Brand awareness research

Conducting brand awareness research allows you to assess your brand’s standing in the market. It tells you how well-known your brand is among your target audience and what they associate with it. This can help you gauge people’s sentiments toward your brand and whether you need to rebrand or reposition.

If you don’t know where to start with your research, you’re in the right place.

There’s no shortage of market research methods out there. In this section, we’ve highlighted research channels for small and big businesses alike.

Considering that Google sees a staggering 8.5 billion searches each day, there’s perhaps no better place to start.

A quick Google search is a potential goldmine for all sorts of questions to kick off your market research. Who’s ranking for keywords related to your industry? Which products and pieces of content are the hottest right now? Who’s running ads related to your business?

For example, Google Product Listing Ads can help highlight all of the above for B2C brands.

The same applies to B2B brands looking to keep tabs on who’s running industry-related ads and ranking for keyword terms too.

There’s no denying that email represents both an aggressive and effective marketing channel for marketers today. Case in point, 44% of online shoppers consider email as the most influential channel in their buying decisions.

Looking through industry and competitor emails is a brilliant way to learn more about your market. For example, what types of offers and deals are your competitors running? How often are they sending emails?

Email is also invaluable for gathering information directly from your customers. This survey message from Asana is a great example of how to pick your customers’ brains to figure out how you can improve your quality of service.

Industry journals, reports and blogs

Don’t neglect the importance of big-picture market research when it comes to tactics and marketing channels to explore. Look to marketing resources such as reports and blogs as well as industry journals

Keeping your ear to the ground on new trends and technologies is a smart move for any business. Sites such as Statista, Marketing Charts, AdWeek and Emarketer are treasure troves of up-to-date data and news for marketers.

And of course, there’s the  Sprout Insights blog . And invaluable resources like The Sprout Social Index™  can keep you updated on the latest social trends.

Social media

If you want to learn more about your target market, look no further than social media. Social offers a place to discover what your customers want to see in future products or which brands are killin’ it. In fact, social media is become more important for businesses than ever with the level of data available.

It represents a massive repository of real-time data and insights that are instantly accessible. Brand monitoring and social listening are effective ways to conduct social media research . You can even be more direct with your approach. Ask questions directly or even poll your audience to understand their needs and preferences.

The 5 steps for how to do market research

Now that we’ve covered the why and where, it’s time to get into the practical aspects of market research. Here are five essential steps on how to do market research effectively.

Step 1: Identify your research topic

First off, what are you researching about? What do you want to find out? Narrow down on a specific research topic so you can start with a clear idea of what to look for.

For example, you may want to learn more about how well your product features are satisfying the needs of existing users. This might potentially lead to feature updates and improvements. Or it might even result in new feature introductions.

Similarly, your research topic may be related to your product or service launch or customer experience. Or you may want to conduct research for an upcoming marketing campaign.

Step 2: Choose a buyer persona to engage

If you’re planning to focus your research on a specific type of audience, decide which buyer persona you want to engage. This persona group will serve as a representative sample of your target audience.

Engaging a specific group of audience lets you streamline your research efforts. As such, it can be a much more effective and organized approach than researching thousands (if not millions) of individuals.

You may be directing your research toward existing users of your product. To get even more granular, you may want to focus on users who have been familiar with the product for at least a year, for example.

Step 3: Start collecting data

The next step is one of the most critical as it involves collecting the data you need for your research. Before you begin, make sure you’ve chosen the right research methods that will uncover the type of data you need. This largely depends on your research topic and goals.

Remember that you don’t necessarily have to stick to one research method. You may use a combination of qualitative and quantitative approaches. So for example, you could use interviews to supplement the data from your surveys. Or you may stick to insights from your social listening efforts.

To keep things consistent, let’s look at this in the context of the example from earlier. Perhaps you can send out a survey to your existing users asking them a bunch of questions. This might include questions like which features they use the most and how often they use them. You can get them to choose an answer from one to five and collect quantitative data.

Plus, for qualitative insights, you could even include a few open-ended questions with the option to write their answers. For instance, you might ask them if there’s any improvement they wish to see in your product.

Step 4: Analyze results

Once you have all the data you need, it’s time to analyze it keeping your research topic in mind. This involves trying to interpret the data to look for a wider meaning, particularly in relation to your research goal.

So let’s say a large percentage of responses were four or five in the satisfaction rating. This means your existing users are mostly satisfied with your current product features. On the other hand, if the responses were mostly ones and twos, you may look for opportunities to improve. The responses to your open-ended questions can give you further context as to why people are disappointed.

Step 5: Make decisions for your business

Now it’s time to take your findings and turn them into actionable insights for your business. In this final step, you need to decide how you want to move forward with your new market insight.

What did you find in your research that would require action? How can you put those findings to good use?

The market research tools you should be using

To wrap things up, let’s talk about the various tools available to conduct speedy, in-depth market research. These tools are essential for conducting market research faster and more efficiently.

Social listening and analytics

Social analytics tools like Sprout can help you keep track of engagement across social media. This goes beyond your own engagement data but also includes that of your competitors. Considering how quickly social media moves, using a third-party analytics tool is ideal. It allows you to make sense of your social data at a glance and ensure that you’re never missing out on important trends.

Email marketing research tools

Keeping track of brand emails is a good idea for any brand looking to stand out in its audience’s inbox.

Tools such as MailCharts ,  Really Good Emails  and  Milled  can show you how different brands run their email campaigns.

Meanwhile, tools like  Owletter  allow you to monitor metrics such as frequency and send-timing. These metrics can help you understand email marketing strategies among competing brands.

Content marketing research

If you’re looking to conduct research on content marketing, tools such as  BuzzSumo  can be of great help. This tool shows you the top-performing industry content based on keywords. Here you can see relevant industry sites and influencers as well as which brands in your industry are scoring the most buzz. It shows you exactly which pieces of content are ranking well in terms of engagements and shares and on which social networks.

SEO and keyword tracking

Monitoring industry keywords is a great way to uncover competitors. It can also help you discover opportunities to advertise your products via organic search. Tools such as  Ahrefs  provide a comprehensive keyword report to help you see how your search efforts stack up against the competition.

Competitor comparison template

For the sake of organizing your market research, consider creating a competitive matrix. The idea is to highlight how you stack up side-by-side against others in your market. Use a  social media competitive analysis template  to track your competitors’ social presence. That way, you can easily compare tactics, messaging and performance. Once you understand your strengths and weaknesses next to your competitors, you’ll find opportunities as well.

Customer persona creator

Finally, customer personas represent a place where all of your market research comes together. You’d need to create a profile of your ideal customer that you can easily refer to. Tools like  Xtensio  can help in outlining your customer motivations and demographics as you zero in on your target market.

Build a solid market research strategy

Having a deeper understanding of the market gives you leverage in a sea of competitors. Use the steps and market research tools we shared above to build an effective market research strategy.

But keep in mind that the accuracy of your research findings depends on the quality of data collected. Turn to Sprout’s social media analytics tools to uncover heaps of high-quality data across social networks.

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What Is Market Research?

• How It Works
• Primary vs. Secondary
• How to Conduct Research

The Bottom Line

• Marketing Essentials

How to Do Market Research, Types, and Example

Joules Garcia / Investopedia

Market research examines consumer behavior and trends in the economy to help a business develop and fine-tune its business idea and strategy. It helps a business understand its target market by gathering and analyzing data.

Market research is the process of evaluating the viability of a new service or product through research conducted directly with potential customers. It allows a company to define its target market and get opinions and other feedback from consumers about their interest in a product or service.

Research may be conducted in-house or by a third party that specializes in market research. It can be done through surveys and focus groups, among other ways. Test subjects are usually compensated with product samples or a small stipend for their time.

Key Takeaways

• Companies conduct market research before introducing new products to determine their appeal to potential customers.
• Tools include focus groups, telephone interviews, and questionnaires.
• The results of market research inform the final design of the product and determine how it will be positioned in the marketplace.
• Market research usually combines primary information, gathered directly from consumers, and secondary information, which is data available from external sources.

Market Research

How market research works.

Market research is used to determine the viability of a new product or service. The results may be used to revise the product design and fine-tune the strategy for introducing it to the public. This can include information gathered for the purpose of determining market segmentation . It also informs product differentiation , which is used to tailor advertising.

A business engages in various tasks to complete the market research process. It gathers information based on the market sector being targeted by the product. This information is then analyzed and relevant data points are interpreted to draw conclusions about how the product may be optimally designed and marketed to the market segment for which it is intended.

It is a critical component in the research and development (R&D) phase of a new product or service introduction. Market research can be conducted in many different ways, including surveys, product testing, interviews, and focus groups.

Market research is a critical tool that companies use to understand what consumers want, develop products that those consumers will use, and maintain a competitive advantage over other companies in their industry.

Primary Market Research vs. Secondary Market Research

Market research usually consists of a combination of:

• Primary research, gathered by the company or by an outside company that it hires
• Secondary research, which draws on external sources of data

Primary Market Research

Primary research generally falls into two categories: exploratory and specific research.

• Exploratory research is less structured and functions via open-ended questions. The questions may be posed in a focus group setting, telephone interviews, or questionnaires. It results in questions or issues that the company needs to address about a product that it has under development.
• Specific research delves more deeply into the problems or issues identified in exploratory research.

Secondary Market Research

All market research is informed by the findings of other researchers about the needs and wants of consumers. Today, much of this research can be found online.

Secondary research can include population information from government census data , trade association research reports , polling results, and research from other businesses operating in the same market sector.

History of Market Research

Formal market research began in Germany during the 1920s. In the United States, it soon took off with the advent of the Golden Age of Radio.

Companies that created advertisements for this new entertainment medium began to look at the demographics of the audiences who listened to each of the radio plays, music programs, and comedy skits that were presented.

They had once tried to reach the widest possible audience by placing their messages on billboards or in the most popular magazines. With radio programming, they had the chance to target rural or urban consumers, teenagers or families, and judge the results by the sales numbers that followed.

Types of Market Research

Face-to-face interviews.

From their earliest days, market research companies would interview people on the street about the newspapers and magazines that they read regularly and ask whether they recalled any of the ads or brands that were published in them. Data collected from these interviews were compared to the circulation of the publication to determine the effectiveness of those ads.

Market research and surveys were adapted from these early techniques.

To get a strong understanding of your market, it’s essential to understand demand, market size, economic indicators, location, market saturation, and pricing.

Focus Groups

A focus group is a small number of representative consumers chosen to try a product or watch an advertisement.

Afterward, the group is asked for feedback on their perceptions of the product, the company’s brand, or competing products. The company then takes that information and makes decisions about what to do with the product or service, whether that's releasing it, making changes, or abandoning it altogether.

Phone Research

The man-on-the-street interview technique soon gave way to the telephone interview. A telephone interviewer could collect information in a more efficient and cost-effective fashion.

Telephone research was a preferred tactic of market researchers for many years. It has become much more difficult in recent years as landline phone service dwindles and is replaced by less accessible mobile phones.

Survey Research

As an alternative to focus groups, surveys represent a cost-effective way to determine consumer attitudes without having to interview anyone in person. Consumers are sent surveys in the mail, usually with a coupon or voucher to incentivize participation. These surveys help determine how consumers feel about the product, brand, and price point.

Online Market Research

With people spending more time online, market research activities have shifted online as well. Data collection still uses a survey-style form. But instead of companies actively seeking participants by finding them on the street or cold calling them on the phone, people can choose to sign up, take surveys, and offer opinions when they have time.

This makes the process far less intrusive and less rushed, since people can participate on their own time and of their own volition.

How to Conduct Market Research

The first step to effective market research is to determine the goals of the study. Each study should seek to answer a clear, well-defined problem. For example, a company might seek to identify consumer preferences, brand recognition, or the comparative effectiveness of different types of ad campaigns.

After that, the next step is to determine who will be included in the research. Market research is an expensive process, and a company cannot waste resources collecting unnecessary data. The firm should decide in advance which types of consumers will be included in the research, and how the data will be collected. They should also account for the probability of statistical errors or sampling bias .

The next step is to collect the data and analyze the results. If the two previous steps have been completed accurately, this should be straightforward. The researchers will collect the results of their study, keeping track of the ages, gender, and other relevant data of each respondent. This is then analyzed in a marketing report that explains the results of their research.

The last step is for company executives to use their market research to make business decisions. Depending on the results of their research, they may choose to target a different group of consumers, or they may change their price point or some product features.

The results of these changes may eventually be measured in further market research, and the process will begin all over again.

Benefits of Market Research

Market research is essential for developing brand loyalty and customer satisfaction. Since it is unlikely for a product to appeal equally to every consumer, a strong market research program can help identify the key demographics and market segments that are most likely to use a given product.

Market research is also important for developing a company’s advertising efforts. For example, if a company’s market research determines that its consumers are more likely to use Facebook than X (formerly Twitter), it can then target its advertisements to one platform instead of another. Or, if they determine that their target market is value-sensitive rather than price-sensitive, they can work on improving the product rather than reducing their prices.

Market research only works when subjects are honest and open to participating.

Example of Market Research

Many companies use market research to test new products or get information from consumers about what kinds of products or services they need and don’t currently have.

For example, a company that’s considering starting a business might conduct market research to test the viability of its product or service. If the market research confirms consumer interest, the business can proceed confidently with its business plan . If not, the company can use the results of the market research to make adjustments to the product to bring it in line with customer desires.

What Are the Main Types of Market Research?

The main types of market research are primary research and secondary research. Primary research includes focus groups, polls, and surveys. Secondary research includes academic articles, infographics, and white papers.

Qualitative research gives insights into how customers feel and think. Quantitative research uses data and statistics such as website views, social media engagement, and subscriber numbers.

What Is Online Market Research?

Online market research uses the same strategies and techniques as traditional primary and secondary market research, but it is conducted on the Internet. Potential customers may be asked to participate in a survey or give feedback on a product. The responses may help the researchers create a profile of the likely customer for a new product.

What Are Paid Market Research Surveys?

Paid market research involves rewarding individuals who agree to participate in a study. They may be offered a small payment for their time or a discount coupon in return for filling out a questionnaire or participating in a focus group.

What Is a Market Study?

A market study is an analysis of consumer demand for a product or service. It looks at all of the factors that influence demand for a product or service. These include the product’s price, location, competition, and substitutes as well as general economic factors that could influence the new product’s adoption, for better or worse.

Market research is a key component of a company’s research and development (R&D) stage. It helps companies understand in advance the viability of a new product that they have in development and to see how it might perform in the real world.

Britannica Money. “ Market Research .”

U.S. Small Business Administration. “ Market Research and Competitive Analysis .”

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Market Research for a Business Plan: How to Do It in a Day

Whether it’s your first time using market research for a business plan or this isn’t exactly your first rodeo: a quick refresh on the topic can do no harm.

If anything, it’s the smart route to take. Particularly when you consider modern-day market research data can be obtained quicker than ever – when the right tools are used.

Today, I’m going to explain exactly how to conduct market research for a business plan, and how to access that key data and juicy intel without hassle.

The importance of market research in business planning

They say knowledge is power, and where your rivals and your market are concerned, there’s nothing quite like it. By looking at things like consumer behavior, the competitive landscape , market size, and the digital strategies of others; companies at any stage in their lifecycle can stay relevant, maintain a competitive edge, set strategic direction, and experience growth. Doing periodic market research also helps businesses develop a deeper, more informed understanding of a market, its audience, and key players. If you’re seeking financial backing, doing market research is essential to show credibility and build confidence in your plans.

How to conduct market research for a business plan

Good market research for a business plan should be contextualized with information about your company, its goals, products, pricing, and financials. Sounds like a lot of work, right? Read on to learn how to conduct all the market research for a business plan you’re going to need – quickly, using the most up-to-date data there is. I’ll show you how to:

• Understand your audience
• Identify target personas
• Size your market 
• Research the competition 
• Discover your unique sales proposition
• Define marketing priorities 

Before you start, make sure your business planning document includes the following 10 headings:

This format is considered best practice, so I’ve indicated the specific sections that each element of your market research fits into.

Sound good? Then let’s get started.

1. Understand your audience

What it is – A target audience is a social segment of people who are likely to be interested in your products or services. It’s a snapshot of your target customer base, sorted by certain characteristics. It’s also known as audience demographics and can contain data like age, gender, location, values, attitudes, behaviors, and more.     

Where to use this market research in a business plan – Demographical data can help determine the size of your market, which slots into the executive summary, marketing plan, market sizing, and financial sections of the plan. What’s more, when you use it to identify groups of people to target, it can also be used in the products and services, competitive research tools , and SWOT analysis sections.

Bonus: Audience demographics can also help you develop stronger branding by choosing imagery that appeals most to your ideal customers.

How to do a quick audience analysis

Similarweb Research Intelligence gives you the ability to view almost any industry in a few seconds; you can also create a custom industry based on specific players in your market.  Here’s how to see relevant audience demographics in a market. For this example, I chose the airline industry.

View typical audience relevant to your sector with gender and age distribution, along with geographical data . You can see which companies are experiencing growth and at what rate. Audience loyalty is also key to understanding how people behave, if they tend to shop around and what search terms they use to discover sites in any niche.

Read more: Learn more about how to do a demographic analysis of your market’s audience .

2. Identify target personas

What it is – An audience or target persona is a typical customer profile. It starts with audience demographics, and then zooms into a much deeper level. Most organizations develop multiple target personas, based on things like pain points, location, gender, background, occupation, influential factors, decision-making, likes, dislikes, goals, ideals, and more. 

Pro Tip: If you’re in B2B, your target personas are based on the people who make purchasing decisions, not the business itself.

Where to use this market research in a business plan – Creating target personas for your business shows you know whom you’re targeting, and how to market to them. This information will help you complete market sizing, product or service overview, marketing plan, and could fit into the competitive research section too.

How to create a buyer persona in five steps

Guesswork does not equal less work – there’s no place for shortcuts here. Your success depends on developing the most accurate representation of who your customers are, and what they care about. 

1. Research: If you’re already in business, use market research surveys as a tool to collect information about your customers. If you’re a startup or pre-startup, you can use a platform like Similarweb to establish a typical customer profile for your market. Don’t forget to use mobile app intelligence and website analytics in tandem to build a complete picture of your audience. 

Pro Tip: Secondary market research is another good source of intel for startups. You might be able to find published surveys that relate to your products or market to learn more.

2. Analysis: Here, you’re looking to answer key questions to fill in the blanks and build a complete picture of your ideal customer. Tools like Similarweb Digital Research Intelligence, Google Analytics, and competitors’ social media channels can help you find this out. Typical questions include:

• Where is your audience coming from?
• What channels do they use to find your site?
• Do they favor access via mobile site, app, or desktop?
• What are their demographics? Think age, job, salary, location, and gender.

3. Competitive market research: This shows you what marketing channels, referral partners, and keywords are sending traffic to businesses similar to yours When you combine this data with what you learned in sections 1 + 2, you are ready to build your personas.

4. Fill in a buyer persona template: We’ve done the hard work for you. Download a pre-made template below .

Further reading: The complete guide to creating buyer personas

3. Size your market

What it is – Market sizing is a way to determine the potential size of a target market using informed estimation. This is how you find out the potential revenue and market volume applicable to your business . There are three key metrics: total addressable market (TAM), service addressable market (SAM), and service obtainable market (SOM).

Where to use this market research in a business plan – Knowing how big the slice of the pie you’re going after is crucial. It can inform any goal setting and help with forecasting too. This data can be used in your executive summary, marketing plan, competitive research, SWOT analysis, market sizing, operations, and financial sections.

Further reading: How to do market sizing shows you how to calculate the TAM, SAM, and SOM for your business.

4. Research the competition

What it is – Competitive landscaping shows who you’re up against and how your offering stacks up vs others in your space. By evaluating rivals in-depth and looking at things like features, pricing, support, content, and additional products, you can form a detailed picture of the competition.

Where to use this market research in a business plan – The information you gain from performing a competitive analysis can transform what you offer and how you go to market. In business planning, this market research supports the executive summary, product or service overview, marketing plan, competitive research, SWOT analysis, and operation sections.  

How to do competitive landscaping

Using the industry overview section of Similarweb Digital Research Intelligence, competitor research is made quick and easy. Access key metrics on an industry or specific players, then download raw data in a workable excel file or get a PNG image of charts in an instant. Most data can be downloaded via excel or as an image and included in the resource section of your plan.

Here, you can see a summary of a market, yearly growth, and top sites. A quick click to industry leaders shows you market leaders and rising stars. Select any name for a complete picture of their digital presence – use this to spot potential opportunities to gain a competitive advantage.

Read more: See how to do a competitive analysis and get a free template to help you get started.

5. Discover your unique sales proposition

What it is – Not all businesses have them, and that’s OK. A unique selling proposition (USP) is something distinctive your business offers but your rivals don’t . It can be anything that’s unique to a product, service, pricing model, or other.  

Why it’s useful – Having a compelling USP helps your company stand out in a market. It can make your business more valuable to a customer vs the competition, and ultimately help you win and retain more customers.

Where to use this market research in a business plan – Your USP should be highlighted in the executive summary, the product and service overview, and the SWOT analysis.

How to find your USP

Unless you’ve developed a unique product or service, or you’re planning to sell to the market at a lower-than-average price point, you’re going to have to look for some kind of service differentiator that’ll help you stand out. In my experience, the quickest way to discover this is through competitive benchmarking. Here, I’m talking about evaluating your closest rivals to uncover things they’re not doing, or looking for gaps that your business can capitalize on. 

A competitive review of their site should look at things like:

• Customer support: do they have live chat, email support, telephone support, etc.?
• Content: do they produce additional content that offers value, free resources, etc.?
• Offers: what promotions or offers do they run?
• Loyalty or referral programs: do they reward loyalty or referrals?
• Service level agreements: what commitments do they make to their customers?
• Operations: consider delivery methods, lead times, returns policy etc.
• Price promises: what satisfaction or price promises do they offer, if at all?

Go easy on yourself and create a basic template that details each point. Once complete, look for opportunities to provide something unique that nobody else currently offers.

6. Define marketing priorities

What it is – A detailed plan showing how you position and market your products or service. It should define realistic, clear, and measurable goals that articulate tactics, customer profiles, and the position of your products in the market.

Where to use this market research in a business plan – Relevant intel you uncover should inform the marketing plan first and foremost. However, it can also be used in the SWOT analysis, operation, and financial sections.

How to do it – with a market research example

Using the marketing channels within Similarweb Digital Research Intelligence, you can short-cut the lengthy (and often costly) process of trial and error when trying to decide which channels and activities work best.

Let me show you how.

Using Similarweb Digital Research Intelligence, I can hone in on any site I like, and look at key marketing intel to uncover the strategies they’re using, along with insights into what’s driving traffic, and traffic opportunities.

In less than 60 seconds, I can see easyJet’s complete online presence; its marketing and social channels, and a snapshot of every metric that matters, like referrals, organic and paid ads, keywords, and more. Expand any section to get granular data, and view insights that show exactly where key losses, gains, and opportunities exist.

You can take this a step further and add other sites into the mix. Compare sites side-by-side to see who is winning, and how they’re doing it. While this snapshot shows a comparison of a single competitor, you can compare five at any one time. What’s more, I can see industry leaders, rising players, and any relevant mobile app intelligence stats, should a company or its rivals have an app as part of their offering.

Best practice for market research data in business plans

When doing any type of market research , it’s important to use the most up-to-date data you can get your hands on. There are two key factors for data are timeliness and trustworthiness.

For any market, look for data that applies to any period over the last 12 months. With how fast markets evolve and how quickly consumer behaviors change, being able to view dynamic data is key. What’s more, the source of any data matters just as much as its age.

To emphasize the importance of using the right type of data in a business plan, here’s some timely advice from SBA commercial lending expert and VP of Commerce National Bank and Trust, Steve Fulmer. As someone who, in the past 15 years, has approved approximately $150 million in loans to SMBs; his advice is worth paying attention to.

“ For anybody doing market research for a business plan, they must cite sources. Most new or small businesses lack historical performance data, which removes substantial confidence in their plans. As a lender, we cannot support assumptions in their business plan or their projections if their data hasn’t come from a trustworthy source.”

Wrapping up…

Now you know the six ways to do market research for a business plan, it’s time to knuckle down and get started. With Similarweb, you’ve got access to all the market intel you’re going to need to conduct timely, accurate, and reliable market research. What’s more, you can return to the platform anytime to benchmark your performance , get fresh insights, and adapt your strategies to focus on growth – helping you build a sustainable business that can withstand the test of time.

How do I do market research for a business plan?

By using Digital Research Intelligence tools like Similarweb, you can quickly conduct audience research, company research, market analysis, and benchmarking from a single place. Another method is secondary market research, but this takes more time and data isn’t always up to date. 

Why does a business plan need market research?

Doing market research for a business plan is the quickest and easiest way to validate a business idea and establish a clear view of the market and competitive landscape. When done right, it can show you opportunities for growth, strategies to avoid, and effective ways to market your business. 

What is market research in a business plan?

Market research in business planning is one of the most powerful tools you can use to flesh out and validate your company or its products. It can tell you whether there’s a market for your product, and how big that market is – it also helps you discover industry trends, and examine the strategies of the rising stars and industry leaders in detail. 

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How to Develop A Market Research Plan

• Market Research

Market research can often get de-prioritized. Yet, having an effective market research can be a game changer for your marketing strategy.

By taking the time to craft a goal-oriented market research plan , you can ensure that your team is keeping its focus on high value initiatives that will either give you a leg up on the competition, strengthen your connection with your audience, or both.

But what does a effective, goal-oriented market research plan look like? We’ve compiled dozens (if not hundreds) here at Alchemer, and these are what we’ve found to be key drivers of success.

4 Common Market Research Areas

Most market research surveys are conducted to gain insight about the target audience and ways to expand market reach. Here are some common market research types:

Brand Awareness: Brand awareness studies measure consumers’ awareness of your product or service.

They are usually anonymous and ask consumers how familiar they are with a brand, or what familiar brands they recall for a particular product or service. These studies often include questions about buying behavior (usage, convenience, attributes, price, etc.).

Brand awareness studies will help you determine your brand’s relative position in the marketplace and where your competitors may have an edge.

Target Audience: You can’t afford to target everyone. Knowing who your target audience is will help you craft relevant messages that resonate with them. By focusing on those who are most likely to purchase from you can prioritize your marketing spend and get the best possible ROI.

Customer Acquisition: To acquire new customers, you need to understand what makes them tick. Surveying your ideal customers can be a great way to learn how and why they chose your brand so you can acquire more customers like them.

Customer Retention: As marketers, we know that it is cheaper to retain current customers than acquire new ones. Conduct market research to measure customer satisfaction, increase customer loyalty, and drive up those retention numbers.

What Market Research Can Tell You

Simply knowing these common subjects of market research is a great place to start, but you also need a strong understanding of what you hope to learn at the end of the process.

A well-designed market research survey can help you determine whether you need to:

• Enter a new market
• Launch a new product or service
• Promote brand awareness
• Optimize your marketing campaign
• Improve customer service
• Change messaging perception of your product or service
• Adjust price points
• Change your product packaging or delivery method

Once you’ve identified your objectives, it’s time to start creating the plan itself.

5 Success Tips for Market Research Surveys

These are our top five tips for giving your market research the best chance for success.

1. Define Your Marketing Challenge

The first step to designing a good market research plan is to define your need. What issue do you want to address? What do you hope to achieve? Set a survey goal to keep your market research focused on the decisions you are trying to make.

You may need to conduct a qualitative research study first to identify which issue is the most pressing or test a hypothesis. This exploratory market survey can be distributed to a focus group, or you could conduct a phone or personal interview.

Social media has become increasingly popular for gauging people’s interest and is a great way to engage your audience around a topic you would like to address. You can post a short survey or a one question poll to quickly test your hypothesis before conducting a full study.

2. Craft Your Survey Questions Carefully

With your market research goal in mind, you are ready to design and build your survey questions.

Since the exploratory phase has already been completed, the majority of your questions should be of a quantitative nature. Quantifiable data will give you data you can act on. You can use a few qualitative questions, but keep these to a minimum to avoid survey fatigue and abandonment.

Only ask questions that are relevant to your objectives. Asking the wrong questions will result in misleading answers that in turn will lead to poor business decisions.

Knowing how to ask a question is just as important as what to ask. Avoid leading questions and be aware of sensitive questions that some respondents may find too personal or offensive. Keep your questions simple, specific and direct.

3. Distribute Your Research Survey to the Right Audience

Before you start collecting data, you need to consider the sample size needed to draw a statistically sound conclusion, as well as the distribution method that’s needed to reach the audience you’re after.

Market Sample Size

It is not realistic to think that you will be able to survey your entire target population, but you do need an adequate percentage and a representative cross-section of your consumer base.

If there are variations in your target population or if you are interested in finding statistically significant differences between subgroups in the sample, the sample size should be adjusted for these goals. You can read more about the intricacies of these types of analysis survey sample size here.

Survey Distribution Method

Choosing the right distribution method to collect your data is important, because the distribution method determines the audience you can access. Additionally, different modes introduce different forms of bias.

Carefully consider your target audience and then find the best channel for reaching them.

For instance, if your target audience is an older demographic group, social media or internet channels may not be the best distribution options. Direct mail, phone, or personal interview may be the best option for reaching this audience.

If, however, your audience is young and active, social media, email invitations, mobile surveys, or a survey embedded on your website may be the way to go. Also consider other distribution methods, such as QR code or web addresses on receipts, newsletters, and printed brochures to expand your survey’s reach.

4. Review Your New Market Research Data

Before you report and share your results, there are several steps you should take to review and prepare your data.

Clean your survey data:

Consider cleaning your survey data to locate any low-quality responses that could distort your conclusions.

Identify and weed out responses that have straight-line, Christmas tree, red herring, and/or outlier patterns.

You may also need to keep an eye on completion times; people who finish considerably faster than average may not be giving the questions their full attention.

Analyze your data:

Analyze the data to determine if your questions were answered in the format you expected. Unusual trends could indicate a problem with the question or question type.

If so, you may need to discount the question or run another study related to the learning objective.

Segment your data:

Filter your report by population segments to see if you have a ratio that accurate represents the demographics of your audience. If not, you may need to adjust the weight of your responses.

You can also segment your data by learning objective so that you can identify trends and patterns.

Report your results:

It’s time to highlight and share your findings! Consider data visualizations such as pie charts, bar graphs, and infographics that help to visually convey your message.

These visuals can drive home your data without requiring your audience to read each individual response.

5. Make Data-Driven Marketing Decisions

Armed with your market research data, you can confidently make sound marketing decisions. You can proceed with new campaigns with confidence, knowing that you’ve gotten in touch with your audience directly and can create relevant messages.

Plan Your Next Online Market Research Survey

Budgeting and planning your market research can save you time, effort, and money in the long run by ensuring that you are targeting the right audience, investing in the right sectors, and delivering the right branding message.

A well-designed marketing plan allows you to make tactical and strategic business decisions with confidence. So start planning your next market research survey!

Discussion: How often to you conduct a market research study? Share how your organization has benefited from them!

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6.3 Steps in a Successful Marketing Research Plan

Learning outcomes.

By the end of this section, you will be able to:

• 1 Identify and describe the steps in a marketing research plan.
• 2 Discuss the different types of data research.
• 3 Explain how data is analyzed.
• 4 Discuss the importance of effective research reports.

Define the Problem

There are seven steps to a successful marketing research project (see Figure 6.3 ). Each step will be explained as we investigate how a marketing research project is conducted.

The first step, defining the problem, is often a realization that more information is needed in order to make a data-driven decision. Problem definition is the realization that there is an issue that needs to be addressed. An entrepreneur may be interested in opening a small business but must first define the problem that is to be investigated. A marketing research problem in this example is to discover the needs of the community and also to identify a potentially successful business venture.

Many times, researchers define a research question or objectives in this first step. Objectives of this research study could include: identify a new business that would be successful in the community in question, determine the size and composition of a target market for the business venture, and collect any relevant primary and secondary data that would support such a venture. At this point, the definition of the problem may be “Why are cat owners not buying our new cat toy subscription service?”

Additionally, during this first step we would want to investigate our target population for research. This is similar to a target market, as it is the group that comprises the population of interest for the study. In order to have a successful research outcome, the researcher should start with an understanding of the problem in the current situational environment.

Develop the Research Plan

Step two is to develop the research plan. What type of research is necessary to meet the established objectives of the first step? How will this data be collected? Additionally, what is the time frame of the research and budget to consider? If you must have information in the next week, a different plan would be implemented than in a situation where several months were allowed. These are issues that a researcher should address in order to meet the needs identified.

Research is often classified as coming from one of two types of data: primary and secondary. Primary data is unique information that is collected by the specific researcher with the current project in mind. This type of research doesn’t currently exist until it is pulled together for the project. Examples of primary data collection include survey, observation, experiment, or focus group data that is gathered for the current project.

Secondary data is any research that was completed for another purpose but can be used to help inform the research process. Secondary data comes in many forms and includes census data, journal articles, previously collected survey or focus group data of related topics, and compiled company data. Secondary data may be internal, such as the company’s sales records for a previous quarter, or external, such as an industry report of all related product sales. Syndicated data , a type of external secondary data, is available through subscription services and is utilized by many marketers. As you can see in Table 6.1 , primary and secondary data features are often opposite—the positive aspects of primary data are the negative side of secondary data.

There are four research types that can be used: exploratory, descriptive, experimental, and ethnographic research designs (see Figure 6.4 ). Each type has specific formats of data that can be collected. Qualitative research can be shared through words, descriptions, and open-ended comments. Qualitative data gives context but cannot be reduced to a statistic. Qualitative data examples are categorical and include case studies, diary accounts, interviews, focus groups, and open-ended surveys. By comparison, quantitative data is data that can be reduced to number of responses. The number of responses to each answer on a multiple-choice question is quantitative data. Quantitative data is numerical and includes things like age, income, group size, and height.

Exploratory research is usually used when additional general information in desired about a topic. When in the initial steps of a new project, understanding the landscape is essential, so exploratory research helps the researcher to learn more about the general nature of the industry. Exploratory research can be collected through focus groups, interviews, and review of secondary data. When examining an exploratory research design, the best use is when your company hopes to collect data that is generally qualitative in nature. 7

For instance, if a company is considering a new service for registered users but is not quite sure how well the new service will be received or wants to gain clarity of exactly how customers may use a future service, the company can host a focus group. Focus groups and interviews will be examined later in the chapter. The insights collected during the focus group can assist the company when designing the service, help to inform promotional campaign options, and verify that the service is going to be a viable option for the company.

Descriptive research design takes a bigger step into collection of data through primary research complemented by secondary data. Descriptive research helps explain the market situation and define an “opinion, attitude, or behavior” of a group of consumers, employees, or other interested groups. 8 The most common method of deploying a descriptive research design is through the use of a survey. Several types of surveys will be defined later in this chapter. Descriptive data is quantitative in nature, meaning the data can be distilled into a statistic, such as in a table or chart.

Again, descriptive data is helpful in explaining the current situation. In the opening example of LEGO , the company wanted to describe the situation regarding children’s use of its product. In order to gather a large group of opinions, a survey was created. The data that was collected through this survey allowed the company to measure the existing perceptions of parents so that alterations could be made to future plans for the company.

Experimental research , also known as causal research , helps to define a cause-and-effect relationship between two or more factors. This type of research goes beyond a correlation to determine which feature caused the reaction. Researchers generally use some type of experimental design to determine a causal relationship. An example is A/B testing, a situation where one group of research participants, group A, is exposed to one treatment and then compared to the group B participants, who experience a different situation. An example might be showing two different television commercials to a panel of consumers and then measuring the difference in perception of the product. Another example would be to have two separate packaging options available in different markets. This research would answer the question “Does one design sell better than the other?” Comparing that to the sales in each market would be part of a causal research study. 9

The final method of collecting data is through an ethnographic design. Ethnographic research is conducted in the field by watching people interact in their natural environment. For marketing research, ethnographic designs help to identify how a product is used, what actions are included in a selection, or how the consumer interacts with the product. 10

Examples of ethnographic research would be to observe how a consumer uses a particular product, such as baking soda. Although many people buy baking soda, its uses are vast. So are they using it as a refrigerator deodorizer, a toothpaste, to polish a belt buckle, or to use in baking a cake?

Select the Data Collection Method

Data collection is the systematic gathering of information that addresses the identified problem. What is the best method to do that? Picking the right method of collecting data requires that the researcher understand the target population and the design picked in the previous step. There is no perfect method; each method has both advantages and disadvantages, so it’s essential that the researcher understand the target population of the research and the research objectives in order to pick the best option.

Sometimes the data desired is best collected by watching the actions of consumers. For instance, how many cars pass a specific billboard in a day? What website led a potential customer to the company’s website? When are consumers most likely to use the snack vending machines at work? What time of day has the highest traffic on a social media post? What is the most streamed television program this week? Observational research is the collecting of data based on actions taken by those observed. Many data observations do not require the researched individuals to participate in the data collection effort to be highly valuable. Some observation requires an individual to watch and record the activities of the target population through personal observations .

Unobtrusive observation happens when those being observed aren’t aware that they are being watched. An example of an unobtrusive observation would be to watch how shoppers interact with a new stuffed animal display by using a one-way mirror. Marketers can identify which products were handled more often while also determining which were ignored.

Other methods can use technology to collect the data instead. Instances of mechanical observation include the use of vehicle recorders, which count the number of vehicles that pass a specific location. Computers can also assess the number of shoppers who enter a store, the most popular entry point for train station commuters, or the peak time for cars to park in a parking garage.

When you want to get a more in-depth response from research participants, one method is to complete a one-on-one interview . One-on-one interviews allow the researcher to ask specific questions that match the respondent’s unique perspective as well as follow-up questions that piggyback on responses already completed. An interview allows the researcher to have a deeper understanding of the needs of the respondent, which is another strength of this type of data collection. The downside of personal interviews it that a discussion can be very time-consuming and results in only one respondent’s answers. Therefore, in order to get a large sample of respondents, the interview method may not be the most efficient method.

Taking the benefits of an interview and applying them to a small group of people is the design of a focus group . A focus group is a small number of people, usually 8 to 12, who meet the sample requirements. These individuals together are asked a series of questions where they are encouraged to build upon each other’s responses, either by agreeing or disagreeing with the other group members. Focus groups are similar to interviews in that they allow the researcher, through a moderator, to get more detailed information from a small group of potential customers (see Figure 6.5 ).

Link to Learning

Focus groups.

Focus groups are a common method for gathering insights into consumer thinking and habits. Companies will use this information to develop or shift their initiatives. The best way to understand a focus group is to watch a few examples or explanations. TED-Ed has this video that explains how focus groups work.

You might be asking when it is best to use a focus group or a survey. Learn the differences, the pros and cons of each, and the specific types of questions you ask in both situations in this article .

Preparing for a focus group is critical to success. It requires knowing the material and questions while also managing the group of people. Watch this video to learn more about how to prepare for a focus group and the types of things to be aware of.

One of the benefits of a focus group over individual interviews is that synergy can be generated when a participant builds on another’s ideas. Additionally, for the same amount of time, a researcher can hear from multiple respondents instead of just one. 11 Of course, as with every method of data collection, there are downsides to a focus group as well. Focus groups have the potential to be overwhelmed by one or two aggressive personalities, and the format can discourage more reserved individuals from speaking up. Finally, like interviews, the responses in a focus group are qualitative in nature and are difficult to distill into an easy statistic or two.

Combining a variety of questions on one instrument is called a survey or questionnaire . Collecting primary data is commonly done through surveys due to their versatility. A survey allows the researcher to ask the same set of questions of a large group of respondents. Response rates of surveys are calculated by dividing the number of surveys completed by the total number attempted. Surveys are flexible and can collect a variety of quantitative and qualitative data. Questions can include simplified yes or no questions, select all that apply, questions that are on a scale, or a variety of open-ended types of questions. There are four types of surveys (see Table 6.2 ) we will cover, each with strengths and weaknesses defined.

Let’s start off with mailed surveys —surveys that are sent to potential respondents through a mail service. Mailed surveys used to be more commonly used due to the ability to reach every household. In some instances, a mailed survey is still the best way to collect data. For example, every 10 years the United States conducts a census of its population (see Figure 6.6 ). The first step in that data collection is to send every household a survey through the US Postal Service (USPS). The benefit is that respondents can complete and return the survey at their convenience. The downside of mailed surveys are expense and timeliness of responses. A mailed survey requires postage, both when it is sent to the recipient and when it is returned. That, along with the cost of printing, paper, and both sending and return envelopes, adds up quickly. Additionally, physically mailing surveys takes time. One method of reducing cost is to send with bulk-rate postage, but that slows down the delivery of the survey. Also, because of the convenience to the respondent, completed surveys may be returned several weeks after being sent. Finally, some mailed survey data must be manually entered into the analysis software, which can cause delays or issues due to entry errors.

Phone surveys are completed during a phone conversation with the respondent. Although the traditional phone survey requires a data collector to talk with the participant, current technology allows for computer-assisted voice surveys or surveys to be completed by asking the respondent to push a specific button for each potential answer. Phone surveys are time intensive but allow the respondent to ask questions and the surveyor to request additional information or clarification on a question if warranted. Phone surveys require the respondent to complete the survey simultaneously with the collector, which is a limitation as there are restrictions for when phone calls are allowed. According to Telephone Consumer Protection Act , approved by Congress in 1991, no calls can be made prior to 8:00 a.m. or after 9:00 p.m. in the recipient’s time zone. 12 Many restrictions are outlined in this original legislation and have been added to since due to ever-changing technology.

In-person surveys are when the respondent and data collector are physically in the same location. In-person surveys allow the respondent to share specific information, ask questions of the surveyor, and follow up on previous answers. Surveys collected through this method can take place in a variety of ways: through door-to-door collection, in a public location, or at a person’s workplace. Although in-person surveys are time intensive and require more labor to collect data than some other methods, in some cases it’s the best way to collect the required data. In-person surveys conducted through a door-to-door method is the follow-up used for the census if respondents do not complete the mailed survey. One of the downsides of in-person surveys is the reluctance of potential respondents to stop their current activity and answer questions. Furthermore, people may not feel comfortable sharing private or personal information during a face-to-face conversation.

Electronic surveys are sent or collected through digital means and is an opportunity that can be added to any of the above methods as well as some new delivery options. Surveys can be sent through email, and respondents can either reply to the email or open a hyperlink to an online survey (see Figure 6.7 ). Additionally, a letter can be mailed that asks members of the survey sample to log in to a website rather than to return a mailed response. Many marketers now use links, QR codes, or electronic devices to easily connect to a survey. Digitally collected data has the benefit of being less time intensive and is often a more economical way to gather and input responses than more manual methods. A survey that could take months to collect through the mail can be completed within a week through digital means.

Design the Sample

Although you might want to include every possible person who matches your target market in your research, it’s often not a feasible option, nor is it of value. If you did decide to include everyone, you would be completing a census of the population. Getting everyone to participate would be time-consuming and highly expensive, so instead marketers use a sample , whereby a portion of the whole is included in the research. It’s similar to the samples you might receive at the grocery store or ice cream shop; it isn’t a full serving, but it does give you a good taste of what the whole would be like.

So how do you know who should be included in the sample? Researchers identify parameters for their studies, called sample frames . A sample frame for one study may be college students who live on campus; for another study, it may be retired people in Dallas, Texas, or small-business owners who have fewer than 10 employees. The individual entities within the sampling frame would be considered a sampling unit . A sampling unit is each individual respondent that would be considered as matching the sample frame established by the research. If a researcher wants businesses to participate in a study, then businesses would be the sampling unit in that case.

The number of sampling units included in the research is the sample size . Many calculations can be conducted to indicate what the correct size of the sample should be. Issues to consider are the size of the population, the confidence level that the data represents the entire population, the ease of accessing the units in the frame, and the budget allocated for the research.

There are two main categories of samples: probability and nonprobability (see Figure 6.8 ). Probability samples are those in which every member of the sample has an identified likelihood of being selected. Several probability sample methods can be utilized. One probability sampling technique is called a simple random sample , where not only does every person have an identified likelihood of being selected to be in the sample, but every person also has an equal chance of exclusion. An example of a simple random sample would be to put the names of all members of a group into a hat and simply draw out a specific number to be included. You could say a raffle would be a good example of a simple random sample.

Another probability sample type is a stratified random sample , where the population is divided into groups by category and then a random sample of each category is selected to participate. For instance, if you were conducting a study of college students from your school and wanted to make sure you had all grade levels included, you might take the names of all students and split them into different groups by grade level—freshman, sophomore, junior, and senior. Then, from those categories, you would draw names out of each of the pools, or strata.

A nonprobability sample is a situation in which each potential member of the sample has an unknown likelihood of being selected in the sample. Research findings that are from a nonprobability sample cannot be applied beyond the sample. Several examples of nonprobability sampling are available to researchers and include two that we will look at more closely: convenience sampling and judgment sampling.

The first nonprobability sampling technique is a convenience sample . Just like it sounds, a convenience sample is when the researcher finds a group through a nonscientific method by picking potential research participants in a convenient manner. An example might be to ask other students in a class you are taking to complete a survey that you are doing for a class assignment or passing out surveys at a basketball game or theater performance.

A judgment sample is a type of nonprobability sample that allows the researcher to determine if they believe the individual meets the criteria set for the sample frame to complete the research. For instance, you may be interested in researching mothers, so you sit outside a toy store and ask an individual who is carrying a baby to participate.

Collect the Data

Now that all the plans have been established, the instrument has been created, and the group of participants has been identified, it is time to start collecting data. As explained earlier in this chapter, data collection is the process of gathering information from a variety of sources that will satisfy the research objectives defined in step one. Data collection can be as simple as sending out an email with a survey link enclosed or as complex as an experiment with hundreds of consumers. The method of collection directly influences the length of this process. Conducting personal interviews or completing an experiment, as previously mentioned, can add weeks or months to the research process, whereas sending out an electronic survey may allow a researcher to collect the necessary data in a few days. 13

Analyze and Interpret the Data

Once the data has been collected, the process of analyzing it may begin. Data analysis is the distillation of the information into a more understandable and actionable format. The analysis itself can take many forms, from the use of basic statistics to a more comprehensive data visualization process. First, let’s discuss some basic statistics that can be used to represent data.

The first is the mean of quantitative data. A mean is often defined as the arithmetic average of values. The formula is:

A common use of the mean calculation is with exam scores. Say, for example, you have earned the following scores on your marketing exams: 72, 85, 68, and 77. To find the mean, you would add up the four scores for a total of 302. Then, in order to generate a mean, that number needs to be divided by the number of exam scores included, which is 4. The mean would be 302 divided by 4, for a mean test score of 75.5. Understanding the mean can help to determine, with one number, the weight of a particular value.

Another commonly used statistic is median. The median is often referred to as the middle number. To generate a median, all the numeric answers are placed in order, and the middle number is the median. Median is a common statistic when identifying the income level of a specific geographic region. 14 For instance, the median household income for Albuquerque, New Mexico, between 2015 and 2019 was $52,911. 15 In this case, there are just as many people with an income above the amount as there are below.

Mode is another statistic that is used to represent data of all types, as it can be used with quantitative or qualitative data and represents the most frequent answer. Eye color, hair color, and vehicle color can all be presented with a mode statistic. Additionally, some researchers expand on the concept of mode and present the frequency of all responses, not just identifying the most common response. Data such as this can easily be presented in a frequency graph, 16 such as the one in Figure 6.9 .

Additionally, researchers use other analyses to represent the data rather than to present the entirety of each response. For example, maybe the relationship between two values is important to understand. In this case, the researcher may share the data as a cross tabulation (see Figure 6.10 ). Below is the same data as above regarding social media use cross tabulated with gender—as you can see, the data is more descriptive when you can distinguish between the gender identifiers and how much time is spent per day on social media.

Not all data can be presented in a graphical format due to the nature of the information. Sometimes with qualitative methods of data collection, the responses cannot be distilled into a simple statistic or graph. In that case, the use of quotations, otherwise known as verbatims , can be used. These are direct statements presented by the respondents. Often you will see a verbatim statement when reading a movie or book review. The critic’s statements are used in part or in whole to represent their feelings about the newly released item.

Infographics

As they say, a picture is worth a thousand words. For this reason, research results are often shown in a graphical format in which data can be taken in quickly, called an infographic .

Check out this infographic on what components make for a good infographic. As you can see, a good infographic needs four components: data, design, a story, and the ability to share it with others. Without all four pieces, it is not as valuable a resource as it could be. The ultimate infographic is represented as the intersection of all four.

Infographics are particularly advantageous online. Refer to this infographic on why they are beneficial to use online .

Prepare the Research Report

The marketing research process concludes by sharing the generated data and makes recommendations for future actions. What starts as simple data must be interpreted into an analysis. All information gathered should be conveyed in order to make decisions for future marketing actions. One item that is often part of the final step is to discuss areas that may have been missed with the current project or any area of further study identified while completing it. Without the final step of the marketing research project, the first six steps are without value. It is only after the information is shared, through a formal presentation or report, that those recommendations can be implemented and improvements made. The first six steps are used to generate information, while the last is to initiate action. During this last step is also when an evaluation of the process is conducted. If this research were to be completed again, how would we do it differently? Did the right questions get answered with the survey questions posed to the respondents? Follow-up on some of these key questions can lead to additional research, a different study, or further analysis of data collected.

Methods of Quantifying Marketing Research

One of the ways of sharing information gained through marketing research is to quantify the research . Quantifying the research means to take a variety of data and compile into a quantity that is more easily understood. This is a simple process if you want to know how many people attended a basketball game, but if you want to quantify the number of students who made a positive comment on a questionnaire, it can be a little more complicated. Researchers have a variety of methods to collect and then share these different scores. Below are some of the most common types used in business.

Is a customer aware of a product, brand, or company? What is meant by awareness? Awareness in the context of marketing research is when a consumer is familiar with the product, brand, or company. It does not assume that the consumer has tried the product or has purchased it. Consumers are just aware. That is a measure that many businesses find valuable. There are several ways to measure awareness. For instance, the first type of awareness is unaided awareness . This type of awareness is when no prompts for a product, brand, or company are given. If you were collecting information on fast-food restaurants, you might ask a respondent to list all the fast-food restaurants that serve a chicken sandwich. Aided awareness would be providing a list of products, brands, or companies and the respondent selects from the list. For instance, if you give a respondent a list of fast-food restaurants and ask them to mark all the locations with a chicken sandwich, you are collecting data through an aided method. Collecting these answers helps a company determine how the business location compares to those of its competitors. 17

Customer Satisfaction (CSAT)

Have you ever been asked to complete a survey at the end of a purchase? Many businesses complete research on buying, returning, or other customer service processes. A customer satisfaction score , also known as CSAT, is a measure of how satisfied customers are with the product, brand, or service. A CSAT score is usually on a scale of 0 to 100 percent. 18 But what constitutes a “good” CSAT score? Although what is identified as good can vary by industry, normally anything in the range from 75 to 85 would be considered good. Of course, a number higher than 85 would be considered exceptional. 19

Customer Acquisition Cost (CAC) and Customer Effort Score (CES)

Other metrics often used are a customer acquisition cost (CAC) and customer effort score (CES). How much does it cost a company to gain customers? That’s the purpose of calculating the customer acquisition cost. To calculate the customer acquisition cost , a company would need to total all expenses that were accrued to gain new customers. This would include any advertising, public relations, social media postings, etc. When a total cost is determined, it is divided by the number of new customers gained through this campaign.

The final score to discuss is the customer effort score , also known as a CES. The CES is a “survey used to measure the ease of service experience with an organization.” 20 Companies that are easy to work with have a better CES than a company that is notorious for being difficult. An example would be to ask a consumer about the ease of making a purchase online by incorporating a one-question survey after a purchase is confirmed. If a number of responses come back negative or slightly negative, the company will realize that it needs to investigate and develop a more user-friendly process.

Knowledge Check

It’s time to check your knowledge on the concepts presented in this section. Refer to the Answer Key at the end of the book for feedback.

• Defining the problem
• Developing the research plan
• Selecting a data collection method
• Designing the sample
• you are able to send it to all households in an area
• it is inexpensive
• responses are automatically loaded into the software
• the data comes in quickly
• Primary data
• Secondary data
• Secondary and primary data
• Professional data
• It shows how respondents answered two variables in relation to each other and can help determine patterns by different groups of respondents.
• By presenting the data in the form of a picture, the information is easier for the reader to understand.
• It is an easy way to see how often one answer is selected by the respondents.
• This analysis can used to present interview or focus group data.

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Types of market research: Methods and examples

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Here at GWI we publish a steady stream of blogs, reports, and other resources that dig deep into specific market research topics.

But what about the folks who’d appreciate a more general overview of market research that explains the big picture? Don’t they deserve some love too?

Of course they do. That’s why we’ve created this overview guide focusing on types of market research and examples. With so many market research companies to choose from, having a solid general understanding of how this sector works is essential for any brand or business that wants to pick the right market research partner.

So with that in mind, let’s start at the very beginning and get clear on…

Market research definition

At the risk of stating the slightly obvious, market research is the gathering and analyzing of data on consumers, competitors, distributors, and markets. As such it’s not quite the same as consumer research , but there’s significant overlap.

Market research matters because it can help you take the guesswork out of getting through to audiences. By studying consumers and gathering information on their likes, dislikes, and so on, brands can make evidence-based decisions instead of relying on instinct or experience. 

What is market research?

Market research is the organized gathering of information about target markets and consumers’ needs and preferences. It’s an important component of business strategy and a major factor in maintaining competitiveness.

If a business wants to know – really know – what sort of products or services consumers want to buy, along with where, when, and how those products and services should be marketed, it just makes sense to ask the prospective audience. 

Without the certainty that market research brings, a business is basically hoping for the best. And while we salute their optimism, that’s not exactly a reliable strategy for success.

What are the types of market research?

Primary research .

Primary research is a type of market research you either conduct yourself or hire someone to do on your behalf.

A classic example of primary research involves going directly to a source – typically customers or prospective customers in your target market – to ask questions and gather information about a product or service. Interviewing methods include in-person, online surveys, phone calls, and focus groups.

The big advantage of primary research is that it’s directly focused on your objectives, so the outcome will be conclusive, detailed insights – particularly into customer views – making it the gold standard.

The disadvantages are it can be time-consuming and potentially costly, plus there’s a risk of survey bias creeping in, in the sense that research samples may not be representative of the wider group.

Secondary research 

Primary market research means you collect the data your business needs, whereas the types of market research known as secondary market research use information that’s already been gathered for other purposes but can still be valuable. Examples include published market studies, white papers, analyst reports, customer emails, and customer surveys/feedback.

For many small businesses with limited budgets, secondary market research is their first choice because it’s easier to acquire and far more affordable than primary research.

Secondary research can still answer specific business questions, but with limitations. The data collected from that audience may not match your targeted audience exactly, resulting in skewed outcomes. 

A big benefit of secondary market research is helping lay the groundwork and get you ready to carry out primary market research by making sure you’re focused on what matters most.

Qualitative research

Qualitative research is one of the two fundamental types of market research. Qualitative research is about people and their opinions. Typically conducted by asking questions either one-on-one or in groups, qualitative research can help you define problems and learn about customers’ opinions, values, and beliefs.

Classic examples of qualitative research are long-answer questions like “Why do you think this product is better than competitive products? Why do you think it’s not?”, or “How would you improve this new service to make it more appealing?”

Because qualitative research generally involves smaller sample sizes than its close cousin quantitative research, it gives you an anecdotal overview of your subject, rather than highly detailed information that can help predict future performance.

Qualitative research is particularly useful if you’re developing a new product, service, website or ad campaign and want to get some feedback before you commit a large budget to it.

Quantitative research

If qualitative research is all about opinions, quantitative research is all about numbers, using math to uncover insights about your audience. 

Typical quantitative research questions are things like, “What’s the market size for this product?” or “How long are visitors staying on this website?”. Clearly the answers to both will be numerical.

Quantitative research usually involves questionnaires. Respondents are asked to complete the survey, which marketers use to understand consumer needs, and create strategies and marketing plans.

Importantly, because quantitative research is math-based, it’s statistically valid, which means you’re in a good position to use it to predict the future direction of your business.

Consumer research 

As its name implies, consumer research gathers information about consumers’ lifestyles, behaviors, needs and preferences, usually in relation to a particular product or service. It can include both quantitative and qualitative studies.

Examples of consumer research in action include finding ways to improve consumer perception of a product, or creating buyer personas and market segments, which help you successfully market your product to different types of customers.

Understanding consumer trends , driven by consumer research, helps businesses understand customer psychology and create detailed purchasing behavior profiles. The result helps brands improve their products and services by making them more customer-centric, increasing customer satisfaction, and boosting bottom line in the process.

Product research 

Product research gives a new product (or indeed service, we don’t judge) its best chance of success, or helps an existing product improve or increase market share.

It’s common sense: by finding out what consumers want and adjusting your offering accordingly, you gain a competitive edge. It can be the difference between a product being a roaring success or an abject failure.

Examples of product research include finding ways to develop goods with a higher value, or identifying exactly where innovation effort should be focused. 

Product research goes hand-in-hand with other strands of market research, helping you make informed decisions about what consumers want, and what you can offer them.

Brand research  

Brand research is the process of gathering feedback from your current, prospective, and even past customers to understand how your brand is perceived by the market.

It covers things like brand awareness, brand perceptions, customer advocacy, advertising effectiveness, purchase channels, audience profiling, and whether or not the brand is a top consideration for consumers.

The result helps take the guesswork out of your messaging and brand strategy. Like all types of market research, it gives marketing leaders the data they need to make better choices based on fact rather than opinion or intuition.

Market research methods 

So far we’ve reviewed various different types of market research, now let’s look at market research methods, in other words the practical ways you can uncover those all-important insights.

Consumer research platform 

A consumer research platform like GWI is a smart way to find on-demand market research insights in seconds.

In a world of fluid markets and changing attitudes, a detailed understanding of your consumers, developed using the right research platform, enables you to stop guessing and start knowing.

As well as providing certainty, consumer research platforms massively accelerate speed to insight. Got a question? Just jump on your consumer research platform and find the answer – job done.

The ability to mine data for answers like this is empowering – suddenly you’re in the driving seat with a world of possibilities ahead of you. Compared to the most obvious alternative – commissioning third party research that could take weeks to arrive – the right consumer research platform is basically a magic wand.

Admittedly we’re biased, but GWI delivers all this and more. Take our platform for a quick spin and see for yourself.

And the downside of using a consumer research platform? Well, no data set, however fresh or thorough, can answer every question. If you need really niche insights then your best bet is custom market research , where you can ask any question you like, tailored to your exact needs.

Face-to-face interviews 

Despite the rise in popularity of online surveys , face-to-face survey interviewing – using mobile devices or even the classic paper survey – is still a popular data collection method.

In terms of advantages, face-to-face interviews help with accurate screening, in the sense the interviewee can’t easily give misleading answers about, say, their age. The interviewer can also make a note of emotions and non-verbal cues. 

On the other hand, face-to-face interviews can be costly, while the quality of data you get back often depends on the ability of the interviewer. Also, the size of the sample is limited to the size of your interviewing staff, the area in which the interviews are conducted, and the number of qualified respondents within that area.

Social listening 

Social listening is a powerful solution for brands who want to keep an ear to the ground, gathering unfiltered thoughts and opinions from consumers who are posting on social media. 

Many social listening tools store data for up to a couple of years, great for trend analysis that needs to compare current and past conversations.

Social listening isn’t limited to text. Images, videos, and emojis often help us better understand what consumers are thinking, saying, and doing better than more traditional research methods. 

Perhaps the biggest downside is there are no guarantees with social listening, and you never know what you will (or won’t) find. It can also be tricky to gauge sentiment accurately if the language used is open to misinterpretation, for example if a social media user describes something as “sick”.

There’s also a potential problem around what people say vs. what they actually do. Tweeting about the gym is a good deal easier than actually going. The wider problem – and this may shock you – is that not every single thing people write on social media is necessarily true, which means social listening can easily deliver unreliable results.

Public domain data 

Public domain data comes from think tanks and government statistics or research centers like the UK’s National Office for Statistics or the United States Census Bureau and the National Institute of Statistical Sciences. Other sources are things like research journals, news media, and academic material.

Its advantages for market research are it’s cheap (or even free), quick to access, and easily available. Public domain datasets can be huge, so potentially very rich.

On the flip side, the data can be out of date, it certainly isn’t exclusive to you, and the collection methodology can leave much to be desired. But used carefully, public domain data can be a useful source of secondary market research.

Telephone interviews 

You know the drill – you get a call from a researcher who asks you questions about a particular topic and wants to hear your opinions. Some even pay or offer other rewards for your time.

Telephone surveys are great for reaching niche groups of consumers within a specific geographic area or connected to a particular brand, or who aren’t very active in online channels. They’re not well-suited for gathering data from broad population groups, simply because of the time and labor involved.

How to use market research 

Data isn’t an end in itself; instead it’s a springboard to make other stuff happen. So once you’ve drawn conclusions from your research, it’s time to think of what you’ll actually do based on your findings.

While it’s impossible for us to give a definitive list (every use case is different), here are some suggestions to get you started.

Leverage it . Think about ways to expand the use – and value – of research data and insights, for example by using research to support business goals and functions, like sales, market share or product design.

Integrate it . Expand the value of your research data by integrating it with other data sources, internal and external. Integrating data like this can broaden your perspective and help you draw deeper insights for more confident decision-making.

Justify it . Enlist colleagues from areas that’ll benefit from the insights that research provides – that could be product management, product development, customer service, marketing, sales or many others – and build a business case for using research.

How to choose the right type of market research 

Broadly speaking, choosing the right research method depends on knowing the type of data you need to collect. To dig into ideas and opinions, choose qualitative; to do some testing, it’s quantitative you want.

There are also a bunch of practical considerations, not least cost. If a particular approach sounds great but costs the earth then clearly it’s not ideal for any brand on a budget.

Then there’s how you intend to use the actual research, your level of expertise with research data, whether you need access to historical data or just a snapshot of today, and so on.

The point is, different methods suit different situations. When choosing, you’ll want to consider what you want to achieve, what data you’ll need, the pros and cons of each method, the costs of conducting the research, and the cost of analyzing the results. 

Market research examples

Independent agency Bright/Shift used GWI consumer insights to shape a high-impact go-to-market strategy for their sustainable furniture client, generating £41K in revenue in the first month. Here’s how they made the magic happen .

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Market Activity

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Retail trading activity tracker.

What is Retail Trading Activity Tracker? This dataset tracks the daily buying and selling activity of retail investors at the ticker level.

• "% of Retail Activity” is the ratio of $USD traded by retail investors in a given ticker divided by total $USD traded by retail investors across all tickers.
• “Buy/Sell Sentiment” is a sentiment score, whereby the more positive the score, the greater the proportion of recent retail net buying.

With Retail Trading Activity Tracker, you can see the most heavily traded tickers each day, gauge the momentum of the crowd by analysing buy and sell sentiment and assess how current events impact what Main Street is buying and selling.

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Money latest: Britons choose tea over alcohol - but experts say we should treat a morning brew like glass of wine

It's International Tea Day - and we have expert tips on making your brew better. Read this and the rest of today's consumer and personal finance news - and leave a comment - below.

Tuesday 21 May 2024 07:12, UK

• Britons should treat tea more like wine, expert says - as some secrets of improving flavour revealed
• BT delays switch from analogue landlines
• August interest rate cut on cards - economists
• Two big moments this week - here's what's happening 

Essential reads

• Money Problem : 'My second-hand Ford is being written off with a known issue - but no one is taking responsibility'
• How to sell your home without an estate agent
• Basically... What is the FTSE
• Basically... What is PIP - and what could government changes mean?
• Best of the Money blog - an archive

Ask a question or make a comment

Basically, the FTSE (short for Financial Times Stock Exchange) is an index of the 100 largest companies by market capitalisation listed on the London Stock Exchange.

The index, operated by a division of the London Stock Exchange Group, is often referred to by its nickname "Footsie" and was created in 1984.

Among the companies in it are BP, HSBC, Barclays, Glencore and AstraZeneca.

Figures are reviewed every quarter. At each review some companies will exit and others will enter. Promotion and relegation, just like in league football for example, depends on performance.

The value figure presented in the evening is the closing value of the FTSE 100 for that day - representing the combined value of the top 100 companies.

How to invest in FTSE 100

You can buy individual shares of FTSE 100 companies via a share dealing platform.

There is stamp duty of 0.5% to pay on UK share purchases.

Once you've bought shares you will need to keep track of the markets. If the shares you buy go up in value, you'll make a profit when you sell them subject to any fees.

Losses are only crystallised if you sell below the purchase price.

Tracker funds (open-ended investment companies or exchange-traded funds) provide the easiest way of investing in the FTSE 100.

Trading hours are Monday to Friday from 8am- 4.30pm.

You may have read about the FTSE reaching record highs in recent weeks - but the London-based index is actually a relative laggard this year compared with rivals in the US, Japan and Germany.

Membership arguably doesn't hold the prestige it once did - and an increasing number of major companies are citing the fact they could be valued higher as a reason for snubbing London.

Shell last month indicted it could abandon the City for New York for this reason.

Is it the top British companies?

The index is chock-full of companies that have little or nothing to do with the UK - such as Fresnillo, a Mexican gold and silver miner; Antofagasta, a Chilean copper and gold miner; and Ashtead Group, a plant and tool hire company which derives £90 in every £100 it earns from the US.

Even companies thought of as British, such as BP, Rolls-Royce, BAE Systems, Shell and Diageo, the world's biggest scotch whisky and tequila producer, derive the vast majority of their earnings outside the UK. In fact, of the 20 biggest companies in the Footsie, only one - the Lloyds Banking Group - can be said to make most of its income in the UK.

For a better gauge of how corporate Britain is doing, investors are better off looking at the FTSE 250, the next biggest 250 listed companies on the London Stock Exchange and home to household names such as Bellway, Games Workshop and ITV.

Read other entries in our Basically... series:

Britons will, on average, pay £182.40 more a year for broadband and £94.80 for mobile after last month's hikes, according to research by Uswitch.

Price hikes in April mean monthly broadband bills have increased by an average £15.20 and mobile bills by £7.90, with customers who have stayed with their provider for more than five years being hit hardest. 

Mobile customers across both pay-monthly and SIM only contracts who have stayed with their provider for eight to nine years paid an extra £13.20 on their mobile bill last month - a huge rise in comparison with the national average price increase of £7.90, Uswitch reports.

Those who switched their provider less than one year ago were the best off, with their increases averaging out at £6.70.

Similarly, broadband customers who stayed with their provider for seven to eight years paid an extra £22.10 this month - significantly more than the national average price rise of £15.20.

Those who switched less than one year ago paid 23% lower than the national average.

This Uswitch chart illustrates the numbers...

"Customers seeing these price rises can still take action," says Sabrina Hoque, telecoms expert at Uswitch.

"Your provider will let you know when your contract is about to end, so don't be tempted to ignore these emails when they come through. Run a comparison or ring your provider up and negotiate a better deal."

We are a nation of tea drinkers – we drink around 100 million cups a day and 70% of us say we'd choose tea over alcohol.

But, on International Tea Day, experts have told Sky News that Britons should be treating tea more like wine.

One key thing not enough of us are doing is checking the back of the packet to see which country our tea is coming from.

Tea is grown in more than 60 countries, with the UK getting most of its supply from East Africa. All tea comes from the same plant – the Camellia sinensis – but where it is grown can really affect its flavour.

"The black tea that we tend to drink here are blends, so you could have tea from seven different origins in one bag," the chief executive of the UK Tea and Infusions Association, Dr Sharon Hall, told the Money blog.

"You might have Kenyan tea in there for that really good colour but you might also have teas from Assam in there to give it that really malty flavour which we as consumers love in the UK.

"Depending on where that tea bush is grown, whether it's up high in the Himalayas or down low, the tea leaves off that will really have a different flavour profiles. It's just like wines," she added.

If you look on the packet, it should tell you the origins of the tea you are consuming.

According to the Teabackyard website , the following regions have these flavour profiles...

Assam . Assam tea grows in tropical lowlands in the Assam region in India, near the Brahmaputra River. This produces a malty, chocolatey flavour. 

Ceylon . Ceylon tea is cultivated in Sri Lanka. Some tea plants are grown at up to 6,000 feet. The flavour is said to be spicy, chocolatey, and citrusy.

Kenyan . Kenya's black tea plants grow in lush green plantations located in lowland regions. This tea is often used in tea blends to provide a robust base because it is strong and full-bodied. It is a tea that almost needs milk to tame down its "bite".

Keemun . Keemun tea is grown only in the Anhui province of China. Some in China claim this was the first breakfast tea - and it is now used in tea blends too. It is a lighter-bodied black tea with a more delicate taste and isn't usually used as a base tea. Hints of smoky maltiness come through in flavour with a subtle floral aroma.

Two teabags?

Dr Hall said two teabags was quite typical of the UK's habits, with the majority of Britons preferring a strong brew.

Despite this, data from the UKTIA shows only 7% of people brew their tea for the optimal 3-4 minutes suggested by many black tea brands, and nearly a fifth only leave the bag in for less than a minute.

Dr Hall insists tea hasn't become weaker, so if you are using two tea bags, it might be time to check the packet to see what your recommended brew time is and giving that a go to get the "optimal flavour". 

"Really in terms of the flavour you get out of those blends, they are very brand specific, like a stronger black tea you might find a brand that delivers that. But in terms of strength, that is really to do with brew time and how you prepare your tea," she explained,

She said that for green tea, she might brew the bag for slightly less time, but she likes to leave her black tea for a good five minutes.

If you are still struggling to make the perfect cup of tea, Dr Hall suggests a key ingredient could be how you boil your water.

One element that she emphasised in particular is using a "smart boil" system to make your tea – basically, measure out the amount of water you need and only boil that amount.

Not only does it save you money, it also means there is more oxygen in your water which "excites the flavours out of the leaves", meaning it could help to make your tea more flavourful, she said.

Your favourite mug, adding the milk after the water, and taking five minutes to relax are also key, she said.

UKTIA has released its latest UK "tea census" today - here are some of the key findings:

• 70% of Britons are choosing tea over booze;
• The age group most likely to choose a cuppa over alcohol are 30-44-year-olds (81%);
• 18-29-year-olds are more likely (72%) than 45-59-year-olds (64%) to pass up alcohol in favour of tea;
• Sweet biscuits are the most popular snack pairing (48%), followed by a chocolate biscuits, cake, a sandwich, chocolate;
• Britons' preferred types of tea are black tea (84%), green tea (60%), peppermint (46%), ginger (43%), chamomile (37%), lemon balm (22%) and spearmint (20%);
• Around 40% of people say putting on the kettle helps to encourage someone to open up, according to the UKTIA.

HMRC is reportedly using AI to recruit staff , with some not speaking to a human until their first day.

The hiring process for some junior roles - including customer service adviser - are being done virtually with candidates asked to send a CV and 1,000-word statement to an email address and then answer six questions from a pre-recorded video, according to The Sunday Times .

One current HMRC employee who went through the process told the newspaper it was "so daft and the questions themselves were waffle".

HMRC said that for entry-level roles, recruitment processes were automated to manage the higher level of applicants it received.

Ryanair has reported another year of record profits and passenger numbers.

At the same time, the average fare at the airline, which is Europe's largest by passenger numbers, was 21% more expensive than 12 months earlier, its annual results showed.

But the company suggested a cut in ticket prices could be on the way after this summer when prices will either be the same or more expensive than last year.

Annual profits reached €1.92bn (£1.64bn), surpassing the previous record of €1.45bn (£1.26bn) made in the year ending March 2018.

Read the full story here ...

Business flights to and from the UK have decreased by nearly a third  since the COVID pandemic.

Data from the Office for National Statistics (ONS) and examined by the New Economics Foundation found there were 29%  fewer trips in 2023 than in 2019.

In total, businesses shelled out around £2.9bn less on air travel in 2023, a 22% decrease from four years earlier, according to City AM.

"Business use of air travel peaked in 2007 and has fallen further since the pandemic. Today, growth causes major damage to our climate while benefiting only a tiny group of airport owners and wealthy frequent flyers," Alex Chapman, senior economist at the New Economics Foundation, told the newspaper.

The number of 56-65 year olds looking to buy their first home has grown by 13% in the first quarter of this year.

The average age of a first-time buyer is 33 - but 2.2% are now in the 56-65 age bracket.

This compares with 44.8% aged 18-30 and 35.6% aged 31-40, according to data from Legal & General.

Further analysis found the average loan searched for at the end of 2023 and beginning of 2024 increased by 3.7% from £214,299 to £222,148, pointing to the fact buyers can afford larger loan values due to inflation dropping and monthly earning increasing.

Kevin Roberts, Legal & General Mortgage Services managing director, said: "Our figures show that the desire to own a home remains strong, even for those who are waiting longer to take those first steps onto the property ladder. 

"As affordability begins to ease, we'll likely see further activity in the first-time buyer market, especially if inflation continues to fall and the Bank of England reduces its base rate later in the year." 

BT Group has pushed back its timetable for moving all customers off the Public Switched Telephone Network (PSTN) and onto digital landlines.

New digital landlines provide services using the internet and will replace 40-year-old analogue landline technology that has become increasingly fragile and difficult to fix.

It aims to allow all UK telecoms companies to offer consumers and businesses clearer and better quality phone calls, as well as new features such as anonymous caller rejection or three-way calling, according to the Gov.uk website.

When is the switch happening?

BT now says the switch is happening in stages.

From this summer, customers who have not used their landline in the last 12 months, who do not identify as vulnerable or have additional needs, have not contacted an Alarm Receiving Centre (ARC) in the last 24 months and live in an area where a data sharing agreement is in place, will be switched - unless they have opted out.

Vulnerable customers or those with additional needs will start to be switched from summer 2025 with the aim to have all customers moved off the old analogue PSTN by the end of January 2027.

Howard Watson, chief security and networks officer at BT Group, said: "Managing customer migrations from analogue to digital as quickly and smoothly as possible, while making the necessary provisions for those customers with additional needs, including telecare users, is critically important.

"We need all local authorities and telecare providers to share with us the phone lines where they know there's a telecare user."

Young twin sisters have gone viral on TikTok after fuming over the prices charged by an ice cream man. 

In a video posted on the social media site, Marnie and Mylah rant after being quoted £9 for two ice creams. 

"There's an ice cream van there selling two ice creams with two chewing gums in it for bloody £9," one of the twins says. 

She adds that the ice cream van who visits her street usually charges between £1 and £2 for an ice cream. 

"He's going to get nowhere with that," she says. 

To make the situation even worse, she's outraged that he only accepts "bloody card". 

"Bloody hell. It's bloody well bad," she says. 

The average price of a 450ml - 1 litre tub of ice cream is currently £3.39 - up 6.3% since last year, the latest data from the Office for National Statistics show. 

The ice cream van industry has been plagued with difficulties, from rising running costs and rubbish weather. 

According to the Ice Cream Alliance, the market is worth a huge £1.4bn. 

Sky News contacted the ICA, the industry's trade association, for comment. 

A popular music magazine has been closed down just months after being relaunched online. 

Q, which originally closed after 34 years in 2020, was revived as an online publication nearly six months ago after a licensing deal was struck by New-York based Empire Media Group. 

But its surprise closure, which came to light on Friday, means a team of six full-time staff have lost their jobs.

Writer Will Harris is one of them, saying he'd lost his "first full-time employment in a dozen years".

Writing on Substack , he said the move had been a "business decision" but that staff had been working long hours to "make it the best publication" possible. 

"We worked our shifts, worked before and after our shifts, and delivered consistently top-shelf content that was, to our way of thinking, exactly the sort of thing that a new incarnation of Q Magazine should offer," he wrote. 

Editor-in-chief Andrew Barker said the decision to shut the magazine down "came with no advance warning, and no indication that anything was wrong". 

"To say that we were shocked and devastated would be a colossal understatement." 

Sky News has contacted Empire Media Group for comment. 

Separately, last week saw the return of a 90s lads mag Loaded.

The magazine relaunched its website after disappearing nine years ago, offering a £9 monthly membership. 

As part of its revival, it has changed its tagline from "for men who should know better" to "for men who know better". 

"The relaunch of the platform is a digital rebellion for the modern man who refuses to fit into a stereotype, from the finest in music, sports, film, and anything else that is of interest," it said in a statement. 

"Loaded is about building a space where men challenge each other, celebrate wins, and tackle all that matters to them." 

Virgin Trains has applied for a licence that could see it return to running rail services on the West Coast route between London and Glasgow, five years after losing its contract.

The company had operated the service, which runs from London Euston via Birmingham and Manchester to Scotland, for 22 years before Avanti West Coast took over in 2019.

The company has now applied to the regulator - the Office of Rail and Road - for an Open Access licence. If granted, it means Virgin Trains receives no subsidy and runs services alongside the franchise, at its own risk.

A spokesperson for Virgin Group told Sky News: "While this application is just the first step towards exploring what might be possible, we think Open Access is the way forward.

"Open Access increases consumer choice and competition both of which Virgin has always supported."

By Sarah Taaffe-Maguire , business reporter

After four weeks of rises the Financial Times Stock Exchange (FTSE) 250 index of the 101st to 350th most valuable companies on the London Stock Exchange has begun a fifth week in positive territory - up 0.54%. 

If it ends this week higher than now it'll be the best run it has had since before the pandemic, in December 2019. 

The most valuable companies on the London Stock Exchange - the FTSE 100 index - also started the week on a high, up 0.22%. Mexican mining company Fresnillo is the best performing company of the day so far with shares up 3.17% as copper hit an all-time peak.

The oil price is staying lower than all of April and most of March at $84.24 for a barrel of Brent crude oil - the benchmark price. 

A pound is equal to $1.2696 or €1.1675. 

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Opposites Attract: LogRhythm And Exabeam To Merge

Allie Mellen , Principal Analyst

Joseph Blankenship , VP, Research Director

Today, LogRhythm and Exabeam announced their intent to merge into a single company. This is another big change for the security analytics platform market, which has been undergoing a rollercoaster of activity the past few years, from Microsoft announcing Sentinel in 2019  and Cisco’s acquisition of Splunk  to XDR vendors shooting their shot and vendor misalignment with customer needs .

The merger between LogRhythm and Exabeam is a classic case of opposites attracting:

• LogRhythm has languished in the last 5–10 years, struggling to transition its product and customers to the cloud. Part of this is because many of its customers prioritize on-premises, given its EMEA market focus. It has also faced challenges with lack of innovation and slow time to market on its cloud-native offering, however, providing LogRhythm Cloud in 2019 as a stop gap before LogRhythm Axon, its cloud-native product, was released in 2022.
• Exabeam hit its peak in customer interest, especially in North America, its focus, around 2020 because of its high-quality user behavior analytics (UBA). But its popularity waned in recent years due to its lack of completeness in other areas of the offering, such as the SIEM and SOAR capabilities, new market entrants (like Microsoft), customers looking to consolidate vendors during and after the pandemic, and the accompanying macroeconomic challenges.

Opposites Provide Some Synergies

On the one hand, the merger could be great for LogRhythm and Exabeam. LogRhythm has a solid SIEM foundation, while Exabeam has a high-quality UBA. Both companies needed a missing piece that the other could provide, which is an opportunity for customer expansion.

But Opposites Are Still Opposites

Merging will present challenges for both companies. They have dramatically different company cultures and processes, as LogRhythm is a veteran security company founded in 2003 with a focus on a suite-style offering, while Exabeam is, by comparison, a younger company founded in 2012 with a focus on modular, stand-alone products. In addition, both of these companies have faced challenges in recent years that are not solved by a merger: difficulty keeping pace with market innovation and with the transition to the cloud. LogRhythm has traditionally focused on the midmarket, while Exabeam aggressively pursued large enterprise deals, highlighting a difference in target market that must be bridged.

Expect A Tumultuous Short Term And An Unknown Long Term

Mergers are a tumultuous time for vendors — innovation gets put on the backburner, attrition rates increase, and customer support often suffers. All this happens as the vendor shifts focus to creating a central organization, set of offerings, and market message. Current customers of LogRhythm and Exabeam must prepare for a period of innovation stagnation as the vendors adjust their footing. In the longer term, the vendors will push the synergies of their offerings to make the case for a security analytics portfolio competitive with the likes of market leaders. Given where the competition sits in the market, however, the speed at which this newly merged company is able to start innovating will dictate its long-term success.

The combined organization is likely to push hard in the midmarket, where LogRhythm’s existing suite has had success, and the Exabeam user experience makes it a more natural fit.

Security Analytics Market Changes Will Continue

Overall, this merger showcases how security analytics platform vendors continue to face headwinds on ensuring completeness of offering while competing with innovation coming from other vendors, including hyperscalers like Microsoft, AWS, and Google and cybersecurity stalwarts like Palo Alto Networks. Expect more consolidation in the security analytics platform market in the years to come, as well as increased competition from extended detection and response vendors that are pushing into the SecOps space.

Forrester clients can  schedule an inquiry or guidance session with me to discuss their options with LogRhythm and Exabeam moving forward.

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• Cybersecurity Trends
• mergers & acquisitions (M&As)
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