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19 Key Market Research Statistics

Written by Backlinko Team In collaboration with Semrush

Market research is a growing multi-billion-dollar industry.

Brands leverage market research insights to introduce customer-focused offerings and improve their experiences.

From mobile-first surveys to social media analytics, researchers have access to a growing toolkit helping companies make data-driven business decisions.

Here’s a breakdown of what you’ll find on this page:

• Market Research Industry Statistics
• Market Research Methods Statistics
• AI in Market Research Statistics

Market Research Statistics (Highlights)

• The global market research industry is forecasted to bring in $140 billion in revenue in 2024.
• Online/mobile quantitative research services accounted for 35% of worldwide revenues of market research companies.
• Around 47% of researchers worldwide state that they use AI regularly in their market research activities.
• Online surveys rank as the most used quantitative method among market research professionals with 85% of respondents who say they use this method regularly.
• Online in-depth interviews with webcams rank as the most used qualitative research method, with over one-third ( 34% ) of researchers using it regularly.

1. Market Research Industry Statistics

This section presents key statistics to show market research industry revenues, leading players in the industry and revenue breakdown by market research services.

• Between 2021 and 2024, the market research industry grew by 37.25% from $102 billion to $140 billion – ESOMAR

2. Market Research Methods Statistics

There’s a growing number of market research methods from traditional surveys to eye tracking available to market research professionals. In this section, we’ll cover recent stats on most used market research methods.

• More than 6-in-10 (62%) researchers say that their “company depends on their research and insights significantly” – Qualtrics
• A majority of researchers have reported an increase in their budgets allocated for customer experience (CX) research (53%), consumer trends (52%), UX research (51%), qualitative research (51%) and brand strategy (50%) – Qualtrics

3. AI in Market Research Statistics

AI is disrupting nearly every industry and job function. Market research is no exception and there are various AI use cases to apply in the everyday work of market researchers. We’ll explore the latest stats on AI adoption rate among market researchers in this section.

• The vast majority (73%) of researchers worldwide claim they’re “very confident” or “extremely confident” on how to apply AI to their market research activities – Qualtrics
• Around 1-in-4 researchers state they’re concerned about AI impact outpacing their personal or team skills – Qualtrics

That’s it for my list of market research statistics.

While market research has been around for a while, it has been undergoing constant transformation. It will be interesting to see how AI impacts market research projects.

We update this list of statistics from time to time so feel free to check it later for new insights.

How to conduct relevant market research in just 5 steps?

By Jennifer Montérémal

Published: October 25, 2024

Table of contents

Doing your own market research for your future business ?

It may seem daunting at first, but with a bit of rigor and patience, it's perfectly possible to do most of it yourself.

What's in it for you?

Over and above the obvious economic benefits , it gives you a perfect grasp of your future market , providing you with all the keys you need to steer your business in the right direction.

But how do you create a business market study that makes sense, and what components do you need to take into account?

Steps , examples and advice ... this article will show you how to gather and use the data you need to assess the feasibility of your project and guide your decision-making.

Definition of market research

But first, a quick reminder of what a market study entails .

Are you an entrepreneur looking to set up a business based on a specific idea? Then you need to make sure that your future product or service will be well received by the market.

By gathering and analyzing a range of data, market research enables you to :

• estimate the sales and success potential of your offering,
• guide your strategy to differentiate yourself from your competitors .

The different types of market research

There are two main types of market research.

Quantitative market research

Quantitative market research is essentially based on figures and statistics , obtained from a large panel of individuals .

In particular, it enables us to calculate :

• market size (number of potential future customers ),
• market value ( forecast sales ).

Qualitative market research

Qualitative market research generally involves a smaller sample. However, thanks to a system of open-ended responses and the collection of verbatim comments from interviewees, it provides a more precise picture of consumer purchasing behavior and aspirations.

☝️ Effective market research combines both methods.

The cost of market research

It can be tempting to call on external services to carry out your market research. You have several options.

• Contact a specialized agency. It will carry out a complete and personalized market study. Estimated costs 👉 from €5,000 to €10, 0001 .
• Call in a junior entrepreneur . While the rates are more advantageous, you'll benefit from less expertise. Estimated costs 👉 from €1,500 to €3 ,0001.
• Buy a ready-made market study online . Prices vary, but it will be more limited and not necessarily suited to your business start-up project , especially if you're launching an innovative product or service.

Whatever the case, doing the work yourself will prove to be cost-effective. That's why we've outlined the steps involved in carrying out your own market research.

1 Estimated rates from webmarketing.com

Steps in market research

Step 1: identify the data you need.

As a general rule, market research is based on the analysis of data relating to :

• the sector ,
• competition ,
• environment .

To do this, you need answers to a number of questions.

Ask yourself questions about the sector

Understanding your sector and market is built around an economic analysis , taking into account current data and future developments .

Examples of questions to ask yourself:

• How is the industry doing?
• What is the potential market size?
• What is the market's potential value?
• What is the estimated repeat purchase rate for your products or services?
• What are the trends in this market?
• Is it a sector of the future?
• What innovations can you foresee in this market?
• How does this market appear to be evolving?

Ask yourself about demand

This involves identifying and analyzing the buying behavior and desires of your future customers.

• Who are you targeting?
• What are their characteristics (catchment area , income, age, buying habits , etc.)?
• What are their buying motivations?
• What are their needs or desires?
• What value do they place on the quality of a product or service?
• What psychological price would they be willing to pay for your products?

☝️ Beware: a high price can drive customers away. Conversely , a price that's too low is often associated with poor product and service quality.

💡 Have you heard of the empathy card ? A collaborative tool, it is sometimes used by sales and marketing teams to understand the customer by identifying:

• what they want to do,
• what they see,
• what they say,
• what they do,
• what they hear,
• what he thinks,
• what he feels.

This technique can provide you with a framework to guide your questioning .

Example of an empathy card :

Find out about the competition

It's vital to analyze what's already on the market, not least to consider how you're going to position yourself and differentiate yourself.

☝️Notez There are two types of competitor:

• direct competitors : they offer the same product as you.
• indirect competitors : they offer a different product, but meet similar needs. For example, a supermarket and a local organic store don't really have the same positioning. They do, however, meet the same need: food.
• Who are your direct and indirect competitors ?
• How are they doing economically?
• What are their sales figures?
• What is their current strategy?
• What is their positioning and brand image?
• What are their strengths and weaknesses?
• What are their projects?
• What types of recruitment are they currently undertaking?

Ask yourself about the current environment

Finally, look at the broader factors that may influence your business by studying the environment:

• technological
• environmental,

This is known as PESTEL analysis :

Taking these various events into account is essential, in order to avoid certain pitfalls. After all, let's remember that some companies suffered from the implementation of the RGPD, which called into question, at least in part, their operations.

Step 2: conduct a literature review

Once you've identified your market research objectives, it's time to put them into practice!

To begin with, carry out a literature review .

Also known as market intelligence , this involves drawing on existing resources, usually available online.

This type of research is particularly useful for gleaning information about :

• official websites such as those of chambers of commerce or trade unions,
• reports and studies, such as those provided by INSEE ,
• in the press (print or online) relating to your sector of activity.
• their official websites,
• corporate legal and financial information sites such as Societe.com,
• employment media such as Welcome to the Jungle.

☝️ Always check the relevance and quality of the information you obtain. Make sure it's recent enough to be usable.

And if you want to cut your research time by a factor of ten and be sure of the data you've collected, you can also use specialized software such as Smappen .

This geomarketing software enables you to find the best area in which to set up your business, with over 350 INSEE indicators directly accessible on their platform. You can also consult and analyze your competitors to avoid unpleasant surprises, thanks to access to SIRENE database data.

Step 3: prepare your field survey

The field study is carried out directly with your potential customers, but also through contact with experts in your field. It generally takes place after the documentary study.

How do you prepare your interviews and questionnaires?

Field research involves obtaining key information for your market study by means of :

• face-to-face or telephone interviews ,
• questionnaires , usually distributed via the Internet.

In both cases, it's ideal to prepare both open and closed questions, with the aim of obtaining quantitative AND qualitative data.

☝️ There is a real difference between the objectives of open-ended questions (more suited to qualitative research) and closed-ended questions (more suited to quantitative research). For example, if you're creating a line of perfumes, you might ask questions like:

• Do you buy more than two bottles of perfume a year? 👉 closed question for quantitative research.
• What qualities do you look for in a perfume? 👉 open-ended question for qualitative research.

Although it depends on your objectives, a questionnaire is generally structured as follows:

• questions about the respondent 's profile ,
• questions about your future products or services ,
• questions relating to the business sector in general.

💡 The good news is that some software programs have been developed to help you create and distribute questionnaires and surveys. This is the case, for example, with Drag'n Survey. The tool offers various templates to personalize your document as much as possible, and also provides you with a bank of over 500 questions to inspire you. What's more, it facilitates the distribution of your questionnaires, as well as the analysis of results through the visualization of reports.

Example of a Drag'n Survey questionnaire:

[Sample market research questionnaire]

To illustrate the points made above, here's an example of a market research questionnaire relating to the opening of a second-hand clothing depot.

It contains both open and closed questions, relating to the respondent's profile, future services and the market in general.

Step 4: Distribute your questionnaires and/or conduct interviews

Once you've created your questionnaires and surveys, it's time to distribute them or collect contacts to talk to them directly.

There are several methods you can use. Here are a few examples:

☑️ Call on your friends and family and their networks . However, this technique should be used sparingly, to avoid emotional bias in responses. The closer a person is to you, the more likely they are to unconsciously agree with you, so as not to "offend" you.

☑️ Go to places where you can approach interviewees directly . Passing places, such as shopping mall exits, are good opportunities for approaching potential customers. On the other hand, you'll find it easier to meet experts at professional events such as trade fairs or conferences.

☑️ Distribute questionnaires on the Internet . To do this, we recommend targeting social networks (Facebook groups, for example), forums or blogs dealing with subjects likely to be of interest to your core target audience.

If you want to interview experts in your sector, consider professional networks such as LinkedIn to get in touch with them.

Step 5: Analyze your results and prepare your report

Once you've gathered all your data from your documentary and field studies, transcribe them into a document: the market research report.

The aim is to use it as a strategic tool to guide your decision-making, but also to convince banks or potential investors.

It must therefore meet certain criteria:

• reveal the essential information needed to convince your clients of the relevance of your project,
• be both clear and concise ,
• include visual elements such as graphs and tables.

Here's an example of how to present a market research report:

☝️ Important recommendation: take a step back from the results of your market research. The aim is not to convince yourself that your project, as you imagined it, is relevant. Always be objective, so that you can readjust your actions if necessary.

Conquering your future market!

That's it, with patience, rigor and method, you've done your market research. But your work doesn't stop there!

In fact, market research is a prerequisite for other actions that will consolidate your project and guarantee the success of your business creation .

Of course, we're thinking first and foremost of your business plan , including the identification of your business model - an indispensable tool for attracting both your future business partners and investors.

But your market study will also determine your marketing strategy and communication plan . After all, you now know what differentiates your business from the competition, as well as the type of clientele you wish to target .

So, are you ready to choose your weapons and set out to conquer your future market?

Article translated from French

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: 03/30/16

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

Download Free

All fields are required.

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.

10 Free Competitive Analysis Templates

Track and analyze your competitors with these ten free planning templates.

• SWOT Analysis
• Battle Cards
• Feature Comparison
• Strategic Overview

Identifying Content Competitors

Search engines are your best friends in this area of secondary market research.

To find the online publications with which you compete, take the overarching industry term you identified in the section above, and come up with a handful of more specific industry terms your company identifies with.

A catering business, for example, might generally be a “food service” company, but also consider itself a vendor in “event catering,” “cake catering,” or “baked goods.” Once you have this list, do the following:

• Google it. Don't underestimate the value in seeing which websites come up when you run a search on Google for the industry terms that describe your company. You might find a mix of product developers, blogs, magazines, and more.
• Compare your search results against your buyer persona. If the content the website publishes seems like the stuff your buyer persona would want to see, it's a potential competitor, and should be added to your list of competitors.

5. Summarize your findings.

Feeling overwhelmed by the notes you took? We suggest looking for common themes that will help you tell a story and create a list of action items.

To make the process easier, try using your favorite presentation software to make a report, as it will make it easy to add in quotes, diagrams, or call clips.

Feel free to add your own flair, but the following outline should help you craft a clear summary:

• Background: Your goals and why you conducted this study.
• Participants: Who you talked to. A table works well so you can break groups down by persona and customer/prospect.
• Executive Summary : What were the most interesting things you learned? What do you plan to do about it?
• Awareness: Describe the common triggers that lead someone to enter into an evaluation. (Quotes can be very powerful.)
• Consideration: Provide the main themes you uncovered, as well as the detailed sources buyers use when conducting their evaluation.
• Decision: Paint the picture of how a decision is really made by including the people at the center of influence and any product features or information that can make or break a deal.
• Action Plan: Your analysis probably uncovered a few campaigns you can run to get your brand in front of buyers earlier and/or more effectively. Provide your list of priorities, a timeline, and the impact it will have on your business.

Within a market research kit, there are a number of critical pieces of information for your business‘s success. Let’s take a look at these elements.

Pro Tip: Upon downloading HubSpot's free Market Research Kit , you'll receive editable templates for each of the given parts of the kit, instructions on how to use the kit, and a mock presentation that you can edit and customize.

What Is a Competitive Analysis — and How Do You Conduct One?

The Beginner's Guide to the Competitive Matrix [+ Templates]

What is a Competitive Analysis — and How Do You Conduct One?

9 Best Marketing Research Methods to Know Your Buyer Better [+ Examples]

SWOT Analysis: How To Do One [With Template & Examples]

28 Tools & Resources for Conducting Market Research

TAM, SAM & SOM: What Do They Mean & How Do You Calculate Them?

How to Run a Competitor Analysis [Free Guide]

5 Challenges Marketers Face in Understanding Audiences [New Data + Market Researcher Tips]

Causal Research: The Complete Guide

Free Guide & Templates to Help Your Market Research

Marketing software that helps you drive revenue, save time and resources, and measure and optimize your investments — all on one easy-to-use platform

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What Is Market Research?

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

The Bottom Line

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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.

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Key Facts About the Market Research Industry

by Sarah Schmidt , on October 10, 2022

In this data-driven blog post, we’ll take a look at key statistics and expert analysis from a variety of new reports covering the global market research industry. Read on to gain a quick overview of the industry’s performance and important new trends to watch.

Market Sizing and Forecast

The global market research services market increased from $69.6 billion in 2016 to $76.37 billion in 2021 at a compound annual growth rate (CAGR) of 1.87 percent, according to a recent report by The Business Research Company .

An even higher growth rate is expected in the future. The global market research services market is forecast to grow from $76.37 billion in 2021 to $108.57 billion in 2026 at a CAGR of 7.29 percent.

The Role of Market Research

Companies in this industry gather, analyze, and present marketing and public opinion data. They conduct qualitative and quantitative research on behalf of clients to identify the needs and preferences of specific demographics or consumer groups. These insights can help companies customize their products, services, and marketing efforts to fit the intended target market.

In addition, the market intelligence that research firms provide can help clients make broad strategic decisions such as how to expand business operations, enter new markets, or establish distribution channels effectively.

Top Market Research Companies

Leading market research companies identified by First Research, Inc , include:

• Forrester Research

Key Market Drivers

Demand for market research services is driven by the strength of the economy and corporate profits. When profit margins rise, corporations seek out the help of market research companies to identify avenues for growth and improve their product and service offerings.

The U.S. Market Research Industry

From 2014 to 2019, the U.S. market research industry grew at a strong pace, propelled by increasing expenditures on research and development and internet advertising, according to a report by IBISWorld . Acquisitions were widespread among leading industry players, and large advertising firms also acquired market research companies to expand their portfolio of services.

As noted by First Research, the U.S. market research industry is known to be concentrated. The top 50 companies generate about 60% of industry revenue. “Large companies have advantages in providing a variety of research and ancillary services to large customers, and in achieving economies of scale in marketing and computerized operations,” according to First Research. “Small companies can compete successfully by specializing in a research methodology or in emerging niche knowledge areas.”

U.S. Revenue Forecast to 2029

The U.S. industry for business intelligence, market research, and opinion polling is expected to reach $24.96 billion by 2029. For complete benchmarking of the industry and its top companies, see a 58-page report published by Plunkett Research in September 2022 .

Market Research Trends to Watch

The rising use of the internet among consumers and advertisers created an opening for new market research companies to enter the market and prompted some established firms to adopt more innovative methods.

In the future, increasingly complex data analysis and changing consumption activity is expected to drive the demand for consumer market research, but some headwinds remain.

“Instituted interest rate hikes and increases in commodity prices are projected to put slight downward pressure on corporate profit growth, which typically has a relatively direct downstream impact on advertising and R&D expenditure,” according to IBISWorld.

However, the uncertainty created by supply chain and inflation pressures will also drive a continued need for “greater granularity” in market data, according to Freedonia Custom Research , as clients refine datasets and assumptions “that may have changed over the last 18-24 months that were fairly consistent in the past.”

Where to Find Out More

Whether you are interested in media buying agencies, public opinion polling, or statistical services, MarketResearch.com offers a variety of reports covering different market segments and geographical areas. Search  our website  to find out more.

To keep up with the latest industry trends,  subscribe to the MarketResearch.com blog .

About the Author :  Sarah Schmidt is a Managing Editor at MarketResearch.com, a leading provider of global market intelligence products and services.

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