conducting a market research project

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.

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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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Get trusted first-party funding data, revenue data and firmographics

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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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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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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A guide to conducting market research

Assumptions only get you so far when it comes to developing a product and growing your business. Market research can provide you with crucial insights into what your audience and customers need from you. Armed with this data, you can differentiate your product from your competitors and work towards winning your market.

In this article, you will learn what market research is, the four approaches to it, and the steps you need to take to make more informed product decisions.

What is market research?

Market research is the process of gathering information about potential and current customers and your target audience. The data can reveal the viability of a new product idea based on customer needs and wants. Market research is an essential part of developing products and services that are desirable to consumers.

Market research is also used to:

• Evaluate customer attitude toward a newly released product or feature
• Discover customer pain points
• Understand brand perception
• Develop product differentiation
• Craft a marketing strategy that resonates with the target audience
• Find opportunities for product improvement
• Test your assumptions about your product or audience
• Create a competitive advantage

Market research is a critical part of research and development (R&D) . Bad market research can lead to making decisions based on assumptions, emotional reasoning, and other guesswork. Ultimately, market research is the only way to make informed decisions about what you need to develop for your product.

What are the 4 ways to do market research?

Market research falls into two categories: Primary and secondary. Primary research is gathered by the company, while secondary research comes from outside sources. Both of these options provide valuable information on your target audience.

For this article, let’s focus on primary research. There are four methods you can use to collect primary data for your market research:

Interviews are face-to-face meetings with an individual. This can be one of the most insightful market research methods since there is no interaction with outside influences that may affect the opinion of the interviewee. It allows an interviewer to ask deeper questions, while also providing a chance to observe body language.

Surveys are a useful method for collecting data quickly. Surveys can appear on the company website or app and ask questions directly to consumers. You can have multiple choice, scales, or yes and no questions to gain several types of data points. It’s also a relatively easy and cost-effective method to deploy.

Focus groups

Focus groups are a tricky method of market research. Participants of a focus group make up the company’s target audience. When done well, they can provide insights into a group’s perceptions of a company’s products, advertising, or competitors. However, it requires a trained moderator to ensure participation from all members of the focus group and prevent a minority party from leading the conversation.

Customer observation

Customer observation is a powerful way to gain an understanding of how customers are interacting with your product. You can learn a lot from how they react to the product, what obstacles they encounter, and what questions they have while using it.

While you can observe in person, you could also use tools like a heat map to conduct customer observation. Alternatively, you can also ask participants to test out a competitor’s product to see how they engage with the product.

While interviews, surveys, focus groups, and customer observations are the 4 most common types of market research, companies can also use these other methods to do their research, including:

• Buyer persona research
• Market segmentation research
• Competitive analysis
• SWOT analysis
• Pricing research
• Customer satisfaction and loyalty research
• Brand research
• Campaign results

A step-by-step guide to conducting market research

Market research can seem like a large and daunting project. To help you break it down into manageable tasks, here is a basic step-by-step guide to conducting market research.

1. Determine the market research goal

Begin by determining what you want to learn from the market research. You’ll get the best results when you can clearly define the problem or question. Once you have defined your market research goal, then you can choose which market research method would work best.

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Let’s explore this example throughout the guide: Your company wants to know if your product is satisfying the needs of your current customers

2. Identify what persona group to engage

If you don’t know who your customers are, then you should create buyer personas before you move further along in the market research process.

The next step is to identify which buyer persona or persona groups have the information you need to answer your market research goal. Choosing the right personas to participate is necessary to avoid wasting resources.

Example: You want to collect data from active users. You may also receive valuable insights from users who use your product infrequently or didn’t purchase the product

3. Prepare questions and collect data

At this stage, you can determine which research methods are best for collecting data. You’ll also form the right questions to ask. All questions should be open-ended to give participants the chance to share their opinions freely without feeling judged or influenced by the moderator.

Preparing questions in advance helps you stay focused on the market research. However, if you’re conducting interviews or focus groups, then it’s important to stay flexible and ask deeper questions based on how the conversation is going. You should consider these core principles while interviewing an individual or a group:

• Don’t ask leading questions — A leading question is when moderator bias appears and steers the participant toward a certain answer. For example, “Did you think the new product feature was great?” is leading. An objective question is “Did the new product feature solve your problem?”
• Don’t ask loaded questions — Loaded questions have a built-in assumption the participant may disagree with and limits replies. For example, “Why are we better than our competitor?” is loaded because it assumes the participant thinks your company is better than your competition. An objective question might be, “How do you feel about our competitor?”

Once the methods and questions are determined, you can start to collect your data.

Example: To collect data from current users, a pop-up survey will appear when a user logs into their account. It has a scale of 1-10 and asks “How satisfied are you with our product?” Once a user answers, they have the option to provide a short answer on what the product could do better

4. Analyze data

When analyzing data, you should look for themes or patterns in responses. You can also utilize data visualization tools to help detect any trends. Once you have analyzed your data, you can create a report based on the findings. It may include items like:

• What are the main problems participants faced while using a product
• What participants consider when choosing a product
• What feature was a deal breaker or clincher

Most importantly, your report should include an action plan on how to resolve issues discovered in the market research. This could involve creating more useful user guides, creating or modifying a new feature, or a more efficient onboarding process.

Example: Results from the survey showed that unhappy customers frequently didn’t know where to go to get help on using the product. An action plan is created to develop how-to tutorials

5. Implement changes

The market research report is presented to executives, and they need to decide on the best way to move forward. It may involve approving the action plan or finding alternative solutions. The good news is that they are going to make a data-based decision because they have accurate information on their customers and target audience.

Once a plan is approved, product managers or other departments can begin working on implementing changes.

Example: Executives approve an action plan to develop how-to tutorials. A knowledge base is created for users filled with written and video tutorials on how to use product features

6. Test results

Market research is not a one-time-only project. It should be continually conducted to provide insights into your product, industry, trends, and other factors that could affect your business. The market research process will help you maintain a competitive advantage while ensuring every iteration of your product is meeting the needs of your target audience.

Key takeaways

Market research is more than something you do to confirm if there is customer interest in your product idea. It’s there to support you for nearly every important pillar of your business, including product development, marketing, and business growth. Continuously conducting market research will help your company stay in touch with your customers and emerging trends.

Market research can be as simple as a one-question survey to 30-minute interviews with your target market. Regardless of the method, you stand to glean valuable insights that you can turn into a data-informed action plan.

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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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Understanding Market Research: Everything You Need to Know

Appinio Research · 13.12.2022 · 19min read

Conducting market research is the best way to ensure the success of your business idea, but it can seem daunting at times. Appinio got your back and came up with your ultimate guide for all the things market research, from the most common market research methodologies to how to identify the right method for your business case, everything you need to know is down below, keep reading.

What is market research?

Market research is the process of gathering information about consumers or markets. This information can be used to help businesses discover  more about their customers, determine what products or services to offer, and gauge customer interest in new products or services. There are different ways to do market research. Some common types of market research include primary research , secondary market research , market intelligence, market segmentation, market sizing or  market forecasting.Regardless of the method you use, market research helps you develop your products or services, and ensures that you are meeting the needs of your customers. 

If you are looking to conduct market research on your own, there are a variety of tools and resources available to help you get started. For example, online market research platforms can make it easy to gather information from large groups of people, while market data and analysis tools can help you to understand trends, market size, and competitor activity. Whether you choose to do market research on your own or work with a market research firm, the key to success is understanding the needs of your customers and adapting your products or services accordingly. With the right market research, tools and strategies, you can gain  valuable insights into your market and customers, helping you to achieve success with your business ideas. 

How is market research used?

Market research is used by businesses of all sizes to gain actionable insights into their target markets and customers. This information can be used to inform product development, help to identify new market opportunities, understand customer needs and preferences, and track competitor activity. Usually companies use market research to make well informed decisions, improve their products and services, uncover trends and opportunities, and understand consumer behavior.

Who can benefit from market research?

Any business can benefit from market research, whether they are a small startup or a large multinational corporation. Market research helps businesses to better understand their target customers, identify interesting opportunities, and gain insights into consumer behavior.Any company would benefit from knowing what their customers want, how they rank against their competitors or validate their business decisions.

How can companies profit from market research?

Conducting market research process means helping businesses to better understand their customers and trends, identifying new product or service ideas, determining the demand for existing products or services, optimizing marketing campaigns and messaging, understanding consumer behavior and preferences, tracking competitor activity and market share, and ultimately improving sales, customers’ loyalty and brand image overall.

How to conduct market research

So how does the market research process work? There are a variety of tools and techniques that you can leverage, including customer surveys, focus groups , market analysis, and online platforms. Whatever approach you choose, it is important to stay organized and ensure that your data is accurate and reliable. With the right market research strategy in place, you can gain actionable insights into your market and customers, helping to ensure that your business or business idea is positioned for success. Here are our tips for conducting your own market research project successfully including setting clear goals and objectives, choosing the right methodologies based on your market and budget constraints, leveraging online market research tools to gather information from large numbers of people quickly and easily, and analyzing and interpreting your market data to make well informed decisions for your business. With the right market research strategy and tools, you can gain valuable insights into your market and customers, helping you to build a strong foundation for your business decisions and future growth. 

Step one: define your research objectives

The first step in the market research process is to clearly define your goals and objectives. What do you want to know? Are you planning to launch a new product on the market or are you planning to launch your hero product in new unexplored markets? Depending on what you want to uncover you would need to include identifying market trends, market size, customer demographics and psychographics, competitor activity, and more.

Step two: choose the market research methods 

Once you define your research objectives, you need to pick the tools that are best suited to your needs. Are you testing a new logo or a new name? Then you may need quite a few people and the best way to reach them could be a survey. Do you want to know consumers attitudes around your existing products? Then face-to-face interviews could be the way to go.

Step three: collect and analyze 

Finally, you need to organize all the precious data into digestible data to provide actionable insights into your market and customers, usually in the form of a report and then you and your team will be able to use this information to make informed decisions, improve your business strategy and ultimately grow.

Looking forward to starting your first market research project already? Sign up for Appinio today!

Types of market research

There are quite a few types of market research but the first differentiation to make is between primary and secondary market research. Primary research is when a company collects information directly from its customers or market, while the latter involves gathering data that has already been collected by other companies or organizations. 

Primary research

Primary market research can include surveys, focus groups, market analysis tools such as SWOT or PESTLE analysis, and online platforms like Google Trends. The advantages of primary research can include a more direct understanding of customer needs and preferences, gaining market insights that are not available through secondary market research, and being able to collect specific data about the market that is most relevant to your business. The disadvantages entail time and resources spent on this type of research. Depending on the research method you may need quite some time to complete all data collection and it could also turn out to be quite costly in terms of money, as you need to invest in recruiting the people that will reply to your questions.

Secondary research

Secondary research methods, such as analyzing industry data that has already been collected by other companies or organizations, can be an efficient way to gain a broad overview of the market and identify trends, gaps in knowledge, and more. This is often easier and less expensive to conduct than primary market research. It also allows businesses to access a wealth of market data that has already been collected by other organizations and companies, which can be useful for benchmarking, identifying trends, and gaining key insights into market conditions and customer needs. However, since this information may not be relevant to your specific business needs, it is important to always triangulate your data by combining results from multiple sources.

Qualitative market research

Another important distinction is between qualitative and quantitative market research.Qualitative research is a qualitative approach to quantitatively analyzing your market and customers. It can give you great insights into customer needs and preferences, helping you to craft better products and services that meet the needs of your market. One of the main advantages of qualitative research is understanding deeply how consumers think and even being able to understand how they talk about your service and product on an everyday basis, being able to connect with your consumers on a deeper level by , quite literally, “speaking their language”.Examples of qualitative market research tools include interviews and focus groups, which can help you understand your customers' behaviors, preferences, and needs. Ethnographic studies, in-depth interviews and in general, explorative research can also be a useful tool for gaining a deeper understanding of your market and customers. 

Quantitative market research

Quantitative research is a systematic empirical investigation of quantifiable phenomena through the use of statistical, mathematical or computational techniques. In other words, quantitative research uses numbers and mathematical formulas to analyze data collected in order to understand a given problem or question. It is often used in the social sciences, business, and marketing research. This type of research has several advantages over other types of market research, including its ability to provide statistically significant results. This approach can involve gathering quantifiable data through techniques such as surveys, tracking customer activity with analytics tools, analyzing sales numbers and revenue trends, or testing new product ideas with pilot programs. Quantitative data can be used to measure customer satisfaction and loyalty. One very common example of quantitative research in marketing is the use of surveys to measure customer satisfaction. Surveys can be used to ask customers about a variety of topics, such as how satisfied they are with a product or service, how likely they are to recommend it to others, and what changes they would like to see. Quantitative market research can be an effective way to gain valuable insights into your market, customers, and competitive landscape.No matter what type of market research you choose to conduct, it is important to always stay focused on your goals and business strategies. By understanding the current state of your market, you can make well informed decisions about how to grow and expand your business in the future.It is important to keep in mind that market research is a tool, not an endpoint. Always be sure to review your market research findings carefully and critically, and use them as a guide rather than as a definitive answer to your business questions. With the right approach, market research can be an incredibly powerful tool for success providing a competitive advantage in today's marketplace.

What different methodologies can be used? 

There are many different market research methodologies that can be used, depending on the specific business needs and goals. As we mentioned above, some of the most common market research techniques include surveys, focus groups, interviews, questionnaires, field experiments, ethnographic research, explorative research, market testing, market intelligence reports, and industry analysis. Each of these methods has its own advantages and benefits, so the market research approach that is most appropriate for your business will depend on a variety of factors, including the type of market you are targeting, your budget and timeline, and the specific information you hope to glean from market research. Ultimately, choosing the most effective market research methodology is an important decision that should be made carefully and strategically, in order to get the most value from your market research investment.

Most common market research methodologies

The field of market research is wide and the methodologies vary depending on your research objectives. Once you define what you want to find out, how you'll find it out is the next step, here is a rundown of the most common market research methods. 

Market research surveys

Surveys are a popular market research method, and can be used to gather information from both consumers' attitudes and businesses. Surveys typically involve sending out questionnaires or online surveys to large groups of people, often through email or social media platforms. They are an effective way to quickly gather large amounts of data in a relatively low-cost way. Market research surveys are a common way to gather information from customers. A survey can be administered in person, over the phone, or online. It typically includes a series of questions about the customer's needs, preferences, and buying habits.Surveys can be effective for understanding customer needs and preferences, determining market size and segmentation, and gauging customer interest in new products or services.

However, care should be taken to ensure that the questions are relevant and interesting to respondents, or they may not complete the survey. 

Interviews are a one-on-one meeting with potential customers or market segments. The interviewer asks questions about the customer's needs and preferences, as well as their purchasing habits and intentions. Interviews can be conducted in person, online or over the phone, and they offer a more personal interaction with customers than other market research methods as the interviewer (a.k.a.market researcher) and the interviewee can naturally discuss the topic of interest. You can choose to go for structured, semi-structured or unstructured interviews depending on the research objective, but the main advantage of interviews is the serendipity factor, even in the most structured of interviews, the interaction between interviewer and interviewee can take unexpected turns (in a good and a bad way!).Interviews can provide actionable insights into why customers make certain purchasing decisions, their needs and wants, what might persuade them to buy a particular product or service and uncover the unexpected. However, interviews are also more expensive and time consuming than other methods and they cannot provide statistically significant results.

Focus groups

A focus group involves a small group of people (typically 8-10) who are brought together to discuss a product or service. The focus group is usually moderated by market researchers, who ask questions and encourage discussion among the participants. The aim is to get feedback on what people like and don't like about the product or service, as well as their suggestions for improvement.A focus group can provide insights into how people feel about a product or service, what features they like and don't like, and what potential improvements they would like to see. However, it is important to note that focus groups cannot provide statistically significant results, so they should be used in conjunction with other market research methods. Other common market research practices include intercept interviews, mystery shopping, market scans, social listening, and online panels.

Most common use cases in market research

Segmentation, target group analysis.

One of the most common uses of market research is to segment customers or identify a specific market segment.

Market segmentation allows you to understand your target audience more deeply and identify specific groups who may be interested in your product or service. Examples of target group analysis might include identifying geographic, demographic, or psychographic profiles for different market segments.

Utility analysis / Feature Prioritization

Another common use of market research is utility analysis or feature prioritization. This method can be used to understand which features are most important to potential customers, and how different products or services stack up against each other in terms of their functionality and usability.

MaxDiff analysis

A popular method to identify features or services to prioritize is the MaxDiff analysis (Maximum Difference Scaling, also known as "Best Worst Scaling), which involves asking participants to rate different features or options, from which they are to select the best and worst alternative for them.

Based on the results, you can identify concrete preference or importance rankings. This information can then be used to inform product development decisions and prioritize features for your customer base.

TURF Analysis

The abbreviation TURF stands for Total Unduplicated Reach & Frequency. To be precise, the TURF method is not a survey method per se, but can be applied to a variety of different question types — even after the survey is already done. The aim of the method is to determine which product portfolio, marketing mix or even product variants appeal to the highest number of customers and hence, expand the potential target group.

Conjoint Analysis 

Conjoint analysis is used to understand consumer preferences and purchasing behavior.

By quantifying the relative importance of different product features, the conjoint analysis provides insights into which features are most important to potential customers and how they compare different options against each other.

This information can then be used to inform product development and marketing decisions, as well as understand customer needs and preferences in more detail.One common approach to conducting a conjoint analysis is to create multiple "choice tasks" or versions of the product, each with different features and attributes. Participants are then asked to rate each version based on their preferences, which can be quantified using statistical techniques such as regression analysis. 

Kano analysis 

The Kano analysis helps businesses understand the factors that drive customer satisfaction. By quantifying different product features and their impact on your customers, the Kano analysis will help you identify which aspects of your product or service are most important to them, as well as features that consumers see as irrelevant, or unexpected sources of value that can help set you apart from your competitors. 

Driver Analysis

A driver analysis is a market research method that helps businesses identify the key factors driving customer behavior and purchasing decisions. By quantifying different product features and their impact on customers, the driver analysis can help businesses better understand which aspects of their products or services are most important to consumers, as well as any "drivers" or key variables that drive demand for their products.

Price analysis 

Price analysis is a market research tool that helps businesses understand customer preferences and purchasing behavior around different price points. By quantifying the relative importance of different price levels, price analysis can help businesses identify the optimal pricing strategy for their products or services, as well as better understand customer demand at different price tiers.Some of the benefits of conducting price analysis include better understanding of customer preferences, more effective pricing strategies, and enhanced market insights.There are a variety of approaches to conducting price analysis.

Gabor-Granger Price Analysis

The Gabor-Granger price analysis is a market research method that uses statistical data & techniques to understand how customers respond to different pricing strategies. By quantifying the impact of different price points on customer demand. The Gabor-Granger price analysis can help businesses better understand consumer preferences and optimize their pricing strategy for maximum profitability.Some of the key advantages of Gabor-Granger price analysis include enhanced market insights, improved pricing accuracy, and more effective marketing campaigns. By understanding how customers respond to different price points, businesses can develop more targeted marketing strategies that appeal to their specific needs and preferences. Additionally, the Gabor-Granger price analysis can help businesses better understand areas where they may be missing opportunities or overcharging customers, allowing them to make more informed pricing decisions that maximize profitability. 

Van Westendorp Pricing Analysis

The Van Westendorp pricing analysis is another market research methodology that helps companies and brands understand customer preferences around different price points. By quantifying the relative importance of different price levels, Van Westendorp pricing analysis can help businesses identify the optimal pricing strategy for their products or services and gain insights into customer behavior and purchasing decisions. 

Perception and Evaluation

Implicit testing.

Implicit testing is another method for quantifying customer preferences and association. This technique involves asking participants to rate a set of products or services on various dimensions, such as quality, value, and desirability. The responses from these evaluations can then be quantified using statistical methods such as conjoint analysis and utility theory.

Best Online tools to conduct your market research project

Some of the best online tools to conduct your market research project and collect quantitative data include platforms like SurveyMonkey, Google Analytics, Qualtrics and Appinio. These tools make it easy to create an online survey, analyze data, and generate reports that can help you gain insights into your market segments.Disadvantages of market research online platforms include the potential for data bias and lower response rates from survey participants, which can impact the accuracy and reliability of your research results. Additionally, many market research platforms are subscription-based, so you will likely need to invest in a paid plan in order to take full advantage of their features and functionality. However, despite these disadvantages, online platforms offer a number of advantages that can make them a valuable tool for your market research project. First, they are often more affordable than traditional market research methods, such as focus groups and surveys. Additionally, they are quick and easy to use, and can help you generate results quickly. Finally, online platforms provide a wealth of data that you can use to analyze your target market and understand their needs and preferences.

Interested in how Appinio can help your business idea? Talk to us.

Recruitment panel partners

To conduct effective market research, you may need to work with a recruitment panel partner. Recruitment panels are groups of qualified individuals who have been selected based on specific criteria and can provide actionable insights into your target. Some of the key benefits of working with a recruitment panel partner include better understanding of your target market, more effective data collection strategies, and increased accuracy in quantifying customer preferences and behaviors as usually these partners have access to very big pools of consumers, and can often reach even very niche targets.Of course, there are also disadvantages when working with recruitment panels. One is the cost of contracting these partners, another is the potential sampling bias and other limitations that may impact the quality and reliability of your market research data, as you’re basically using a middle man to select your desired consumers.

Appinio, the all in one survey tool

If you're looking for a market research tool that can help you quickly and easily create online surveys, analyze and gather data, and generate reports, then Appinio is the perfect solution for you.Appinio is an all-in-one survey tool that makes it easy to collect data and generate beautiful charts and graphs. With Appinio, you can create surveys in minutes, and quickly analyze the results to get insights into your target market. Appinio also offers a number of handy features such as drag-and-drop question creation, automatic result analysis, and interactive graphs and charts.  One of the advantages of Appinio is that it has a large proprietary panel in more than 90 countries. This means that you can reach a large number of survey participants quickly and easily. Additionally, Appinio's panel is carefully recruited and includes only qualified individuals who can provide valuable insights into your specific market. Despite being an all-in-one platform that you can use on your own, Appinio also offers consulting services. Appinio research consultants will help you design your research, selecting the best method for your specific research needs and will guide you through the entire process.Whether you are looking to gain a better understanding of your customers' purchasing behaviors or need market sizing estimates for product positioning, Appinio has the tools and functionality you need to succeed.

So if you're ready to take your market research efforts to the next level, sign up for Appinio today!

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Home Blog Customer experience How to conduct market research – A complete guide

How to conduct market research – A complete guide

Are your market research efforts falling flat? It’s a common problem. All that data – a sea of numbers and statistics – with nothing to bring it to life. No magic. No pizazz. No WOW factor.

But that doesn’t really matter, does it? Market research isn’t meant to be entertaining, right?

Perhaps not, but it does need to capture the attention of your audience – otherwise, what’s the point? You can have the most valuable insights in the world, but if people are skipping over them to get to the good bit (that never comes), your data is going nowhere.

So, what do you do about it?

Conduct market research effectively, of course.

Welcome to the modern world, a place of digital disruption and data-driven insights; of short attention spans and constant distractions. In all, a challenging landscape were standing out and capturing attention requires more effort than ever before.

Luckily, the field of market research has evolved to meet these challenges. Today, market research is about understanding customer behavior and weaving that understanding into a relatable narrative. It’s about valuing quality insights over quantity and becoming increasingly customer centric.

In this blog, we’ll explore what market research is, why it’s important, and how to conduct market research effectively. We’ll delve into different types of market research, including primary research and secondary research, and discuss popular methods for conducting market research, such as surveys, focus groups, and interviews. We’ll also talk about how to avoid bias in your research and how to make sense of your data.

By the end of this guide, you’ll have all the tools you need to conduct market research that captures the insights you’re craving. You can tap this wealth to make sure your product and services development and delivery are on target, as well make sure you’re stacking up against your competition.

What is market research?

Market research is the process of delving deep into the hearts and minds of your customers, like a detective searching for clues. It’s about uncovering the secrets of your market, discovering what drives your customers’ behavior, and using that knowledge to make informed decisions about your business. Think of it as a treasure map, leading you on a journey to uncover valuable insights and opportunities.

Why use market research?

Market research is a secret weapon for your business. With it, you can keep you place at the head of the pack and avoid any looming potholes in your industry landscape.

By understanding your target market, customers, and competition, you can make strategic decisions that will help your business thrive. It’s a powerful tool that can give you a competitive edge and help you power up your business.

Primary vs secondary research

Primary research is like digging for diamonds, it’s the process of collecting original data. Secondary research, on the other hand, is more like panning for gold, it’s the process of gathering data that has already been collected. Primary research is often more time-consuming and expensive, but it allows you to gather information that is specific to your needs. Secondary research is often quicker and cheaper, but it may not be as specific to your needs.

When conducting market research, it is important to consider both primary and secondary research methods. By combining the two, you can gather a comprehensive understanding of your target audience and make informed decisions. Primary research provides a deeper understanding of your target audience, while secondary research provides a broad understanding of the industry and market trends.

In conclusion, primary and secondary research methods are both important tools in the market researcher’s toolbox. Each has its own strengths and weaknesses, and by utilizing both, you can gather a well-rounded understanding of your target audience and make informed decisions. Always remember to keep your research goals and objectives in mind when deciding which research method to use.

Market research methods

There are many methods available to conduct market research, each with unique advantages and disadvantages.

One popular method is surveys, which can be conducted online, by phone, or in person. Surveys are a great way to gather a large amount of data quickly and relatively cheaply. However, they are not always the most effective way to really understand what customers say and do.

Another common method is focus groups, where a small group of people are brought together to discuss a specific topic or product. This method is particularly useful for getting in-depth feedback on a product or service, as participants can discuss their thoughts and experiences with others. However, focus groups can be expensive to organize and may not be representative of the broader population.

Interviewing individual customers is also an effective way to gain insight into customer behavior and attitudes. This method is particularly useful for gaining a deep understanding of a specific target market or customer segment. However, it can be time-consuming and costly to conduct many interviews.

Finally, observational research allows researchers to observe customers in their natural environment, without any interference. This method is useful for gaining insight into customer behavior and can help identify patterns and trends that may not be visible through other research methods.

No matter which method you choose, it is important to remember that market research is not just about gathering data, but also about understanding and interpreting that data.

By using storytelling to bring statistics to life, businesses can create powerful, data-driven customer stories that grab the attention of stakeholders, illustrate key findings, and contribute to customer-centric decisions. Without a compelling narrative, data can become dry and unengaging, leaving readers with fact-fatigue, and missing out on the meaningful takeaways.

How to conduct market research

Conducting market research can seem daunting, but it doesn’t have to be. Start by defining your research question, then choose the methods that will work best for your business. Then, gather and analyze the data, and use it to make informed decisions. Remember that market research is an ongoing process, so be sure to keep track of your findings and adjust as needed.

First up, define the research question. The more specific and focused you are, the easier it’ll be to design your research and analyze the results. For example, if you are a new clothing retailer, your research question might be “What are the most popular clothing styles among teenagers in our target market?”

You’ll need to choose of the many available research methods that work best for your business. There are many different methods of market research, including surveys, focus groups, interviews, and observational studies. Surveys are a popular method because they are relatively cheap and easy to administer. Focus groups are also a good option, as they provide valuable insights into consumer behavior and attitudes. Interviews can be more time-consuming, but they are useful for gaining in-depth information from a small number of participants. Observational studies involve observing consumers in their natural environment, which can provide valuable insights into consumer behavior.

After you have chosen your research methods, it is time to gather and analyze the data. Surveys, focus groups, and interviews should be designed with care, as the questions and format can greatly affect the quality of the data. For observational studies, be sure to have a clear plan for observing and recording consumer behavior. Once you’ve got the data, analyze it to find patterns and trends – using software or (unlikely!) by hand.

Of course, data is only worth what you can do with it – use the data to find what’s possible, what’s under threat, and where you can do better. For example, if your research shows that teens in your target market are really into utility jackets, you make sure you’ve got multiple options in your clothing line.

But you can’t rest on your laurels! Market research is ongoing and constant – keeping up with trends never stop and know that customers behaviors shift too. If you don’t keep up with the changes, you’ll lag your competitors.

You might feel swamped at the idea of doing effective market research, but if you take it step by step, with the right methods for your needs, it can be the key to unlocking growth and results.

Remember, keep your research question focused, choose the right methods, gather, and analyze data, and use the data to make informed decisions. Also, remember to keep track of your findings and adjust as needed. It is an ongoing process, so be prepared to adapt and evolve with the market.

15 common market research questions

When it comes to market research, there’s no such thing as a one-size-fits-all approach. Every business has unique needs and goals, but there are certain questions that are commonly asked in market research. Some of these questions include:

• Who is my target market?
• What are the needs and preferences of my target market?
• What are my competitors doing?
• How can I improve my product or service?
• How can I reach my target market more effectively?
• What are the current trends in my industry?
• How does my product or service compare to others in the market?
• What are the potential barriers to entry in my market?
• What is my product or service’s unique selling point?
• How can I increase brand awareness?
• What is my target market’s buying behavior?
• How can I increase customer loyalty?
• What is the potential market size for my product or service?
• How can I increase customer retention?
• What is the potential return on investment for my product or service?

Answering these questions through market research can help you gain a deeper understanding of your market and make more informed decisions. However, these questions are just the tip of the iceberg when it comes to market research, and you should tailor your questions to your specific needs and goals.

Examples of market research

Are you feeling like Victor Frankenstein on a stormy night, tasked with bringing life to something dull on the surface but brimming with potential? That’s the challenge of market research. But why does it matter so much?

To truly understand your customers and gain valuable insights from your data, you need to dig deep and discover what drives their behavior. And once you have that understanding, you can craft a compelling story. By sharing powerful, data-driven customer stories with your stakeholders, you can grab their attention, illustrate key findings, and contribute to customer-centric decisions.

Because let’s face it, without stories to bring statistics to life, it’s easy for readers to tune out. Our brains relate best to characters, and by constructing characters in your market research, your content will have more impact. In fact, a study from McMaster University found that when stakeholders can see their customers in the story, they connect with the message.

To give you a better idea of how market research can be applied in the real world, let’s look at a couple of examples. In the retail industry, market research can be used to determine which products are in demand and what customers are looking for. A retail company may conduct a survey to gather data on customer preferences and use that information to inform their product development and market focus.

A popular example of market research in the retail industry is Walmart’s use of customer feedback and data analysis to optimize their product selection and improve their in-store experience. In the healthcare industry, market research can be used to understand patient needs and preferences, such as in a study conducted by the Cleveland Clinic to improve their patient satisfaction scores. In the technology industry, market research can be used to understand customer needs and preferences in product development, such as in a study conducted by Apple to improve the user experience of their products.

And let’s not forget successful market research campaigns. One that stands out is Coca-Cola’s “Share a Coke” campaign. By conducting market research and understanding the importance of personalization, Coca-Cola was able to create a campaign that resonated with their target audience and increased sales. Another example is Netflix’s use of data analysis and customer feedback to inform their decision to create their own content, leading to the success of original series like Stranger Things and The Crown.

In summary, market research is essential for understanding your customers and making informed business decisions. From product development to marketing strategies, it can inform a wide range of decisions and lead to success. So, don’t be like Frankenstein on that stormy night, use market research to bring your ideas to life.

How can Forsta help?

At Forsta, we know that market research is a powerful tool for businesses, but it can be difficult to conduct effectively. That’s why we’ve developed a software specifically designed to make market research easier for businesses. Our  market research survey software  is packed with features that make conducting market research a breeze.

Discover the advantages of Forsta’s market research survey software: If you’re looking to take your market research to the next level, then take a look at our website and see how Forsta’s  market research survey software  can help your business conduct market research effectively.

The power of market research at your fingertips: Market research is crucial for any business that wants to stay competitive. It provides valuable information about your target market, customers, and competition, which can inform a wide range of business decisions. From product development to marketing strategies, market research is essential for the success of your business.

Ready to research? Let’s go.

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How to Do Market Research: A Definitive Guide

Article Snapshot

Section 1: introduction to market research.

Before we dive into the intricacies of market research, let's first establish a solid understanding of what it entails. Market research is the systematic process of collecting, analyzing, and interpreting data about a target market or industry. It involves gathering information about potential customers, their needs and preferences, as well as assessing the overall market landscape and identifying opportunities for growth.

Market research plays a vital role in shaping business strategies and decision-making processes. It helps businesses identify market trends, evaluate product or service viability, understand customer behavior, and develop effective marketing campaigns. By leveraging market research, companies can minimize risks, optimize resources, and increase their chances of success.

Section 2: Preparing for Market Research

Before embarking on any market research endeavor, it is crucial to establish clear objectives and determine the appropriate research methodology. In this section, we will guide you through the essential steps of preparing for market research.

Defining Research Objectives

The first step in any market research project is to define clear research objectives. These objectives should align with your business goals and provide a framework for your research efforts. Whether you aim to understand customer satisfaction, evaluate market potential for a new product, or analyze competitor strategies, defining specific and measurable objectives is essential to ensure the research is focused and effective.

Choosing the Right Research Methodology

Once you have defined your research objectives, the next step is to select the most appropriate research methodology. There are various methodologies available, each with its strengths and limitations. Qualitative research methods, such as interviews and focus groups, allow for in-depth exploration of customer opinions and perceptions. On the other hand, quantitative research methods, like surveys and data analysis, provide statistical insights and numerical data.

Creating a Research Plan

To ensure the success of your market research endeavor, it is essential to develop a comprehensive research plan. A research plan outlines the steps, timeline, budget, and resources required for your market research project. By creating a well-structured plan, you can effectively manage your research activities, allocate resources efficiently, and stay on track to achieve your research objectives.

Section 3: Conducting Primary Market Research

Primary market research involves collecting firsthand data directly from your target audience. This section will explore various primary research methods and provide insights into how to conduct effective primary market research.

Survey Research

Surveys are a popular and effective method for gathering primary research data. They allow businesses to collect a large volume of data from a diverse audience. Designing effective survey questions, selecting appropriate survey administration methods, and maximizing response rates are crucial elements to consider when conducting survey research.

Interviews and Focus Groups

Interviews and focus groups offer a more in-depth understanding of customer opinions and behaviors. By engaging directly with participants, businesses can explore complex topics and gain valuable insights. This section will cover techniques for conducting successful interviews and focus groups, as well as analyzing and interpreting the qualitative data obtained.

Observational Research

Observational research involves observing and analyzing consumer behavior in real-life situations. This method provides rich insights into consumer interactions, preferences, and decision-making processes. We will discuss different types of observational research and address ethical considerations associated with this methodology.

Section 4: Gathering and Analyzing Secondary Market Research

Secondary market research involves gathering existing data and information from various sources. This section will explore reliable sources for secondary research data, data collection methods, and techniques for analyzing and interpreting secondary research findings.

Sources of Secondary Research Data

Identifying reputable sources for secondary market research data is crucial for obtaining accurate and reliable information. We will explore a wide range of sources, including market research firms, industry reports, government publications, and online databases.

Data Collection and Analysis

Once you have gathered the secondary research data, the next step is to organize and analyze it effectively. This section will provide insights into various data collection methods and techniques for analyzing and interpreting secondary research findings. We will also discuss the utilization of data visualization tools to present data in a visually appealing and informative manner.

Section 5: Utilizing Market Research Findings

Market research findings hold immense value only when they are effectively utilized to drive business growth. In this section, we will explore how to interpret and apply research findings, communicate results, and continually monitor and evaluate market research efforts.

Interpreting and Applying Research Findings

Interpreting research findings accurately is vital to extract actionable insights. We will discuss techniques and strategies for interpreting research findings and applying them to make informed business decisions. Real-world case studies will be presented to illustrate the practical application of market research findings.

Communicating Research Results

Effectively communicating research results is essential for ensuring that the insights gained are understood and utilized by key stakeholders. This section will provide tips for creating visually appealing and informative research reports and delivering impactful presentations to stakeholders and decision-makers.

Monitoring and Evaluating Market Research

Market research is an ongoing process, and continuous monitoring and evaluation are crucial to stay abreast of market trends and changes. We will explore strategies for tracking market dynamics, monitoring the effectiveness of research efforts, and adjusting research strategies based on feedback and evolving market conditions.

Understanding the Importance of Market Research

Market research is an indispensable component of any successful business strategy. It provides crucial insights into customer behavior, market trends, and competitor analysis, enabling businesses to make informed decisions and gain a competitive edge. In this section, we will explore the significance of market research and its role in driving business success.

The Value of Market Research

Market research serves as a guiding light for businesses, helping them navigate the complex landscape of consumer demands and market dynamics. By conducting thorough research, businesses can gain a deep understanding of their target audience, identify unmet needs, and develop products or services that truly resonate with their customers.

One of the primary benefits of market research is its ability to minimize risk. By gathering data and insights before launching a new product or expanding into a new market, businesses can assess market potential, evaluate customer preferences, and anticipate potential challenges. This proactive approach reduces the likelihood of costly mistakes and increases the chances of success.

Moreover, market research plays a vital role in identifying and capitalizing on market opportunities. By staying attuned to market trends, businesses can spot emerging consumer needs, industry shifts, and technological advancements. Armed with this knowledge, they can adapt their strategies, develop innovative solutions, and stay ahead of the competition.

Market research also provides a solid foundation for effective marketing campaigns. By understanding the target audience's preferences, motivations, and pain points, businesses can tailor their messaging, positioning, and communication channels to effectively reach and engage their customers. This targeted approach not only increases customer acquisition but also enhances customer loyalty and brand advocacy.

The Risks of Neglecting Market Research

Failing to conduct market research can have dire consequences for businesses. Without a deep understanding of their target audience, businesses risk developing products or services that do not meet customer needs or preferences. This can lead to low customer satisfaction, decreased sales, and ultimately, business failure.

Additionally, neglecting market research can result in missed opportunities. In a rapidly evolving marketplace, failing to track consumer trends, competitor strategies, and industry shifts can leave businesses lagging behind. By the time they realize the need for change, it may be too late to catch up, leading to lost market share and diminished competitiveness.

Furthermore, without market research, businesses may struggle to effectively allocate their resources. They may invest in marketing campaigns that do not resonate with their target audience or allocate resources to markets with limited potential. This misalignment of resources can drain finances and hinder overall business growth.

The Role of Market Research in Decision-Making

Market research serves as a compass for decision-making, guiding businesses in making strategic choices based on data-driven insights. Whether it is launching a new product, entering a new market, or adjusting pricing strategies, market research provides the necessary information to make informed decisions.

By conducting market research, businesses can gain a comprehensive understanding of their target audience's preferences, needs, and behaviors. This knowledge allows them to develop products or services that align with customer expectations, resulting in higher customer satisfaction and increased sales.

Market research also empowers businesses to assess the competitive landscape. By studying competitors' strengths, weaknesses, and market positioning, businesses can identify gaps and opportunities for differentiation. This knowledge enables them to develop unique value propositions and competitive strategies that set them apart from their rivals.

Additionally, market research helps businesses evaluate the effectiveness of their marketing efforts. By measuring key performance indicators (KPIs) and analyzing consumer responses, businesses can identify areas for improvement and refine their marketing strategies. This iterative approach ensures that marketing budgets are optimized and yields the highest return on investment (ROI).

In conclusion, market research is an invaluable tool for businesses aiming to thrive in a competitive marketplace. By understanding the importance of market research and leveraging its insights, businesses can make informed decisions, minimize risks, seize opportunities, and ultimately drive sustainable growth. Now that we have established the significance of market research, let's delve into the practical steps of preparing for and conducting market research.

Preparing for Market Research

Before diving into market research, it is crucial to lay a solid foundation by preparing for the research process. This section will explore the essential steps involved in preparing for market research, including defining research objectives, selecting the appropriate research methodology, and creating a comprehensive research plan.

Clearly defining research objectives is the cornerstone of any successful market research project. Research objectives serve as guiding principles that outline the specific goals and outcomes you hope to achieve through your research efforts. These objectives should be specific, measurable, achievable, relevant, and time-bound (SMART).

When defining your research objectives, consider what you aim to accomplish. Are you seeking to understand customer preferences for a new product? Do you want to assess market potential for a specific geographic region? Defining clear and focused research objectives will help you stay on track and ensure that your research efforts yield actionable insights.

Once you have defined your research objectives, the next step is to select the most appropriate research methodology. Different research methodologies offer unique advantages and are suited for different research objectives.

Qualitative research methods, such as interviews and focus groups, provide in-depth insights into customer opinions, attitudes, and perceptions. These methods allow for rich, nuanced data collection and are particularly useful for exploring complex topics or understanding the underlying motivations and emotions driving consumer behavior.

Quantitative research methods, on the other hand, involve the collection and analysis of numerical data. Surveys and questionnaires are common quantitative research tools that allow for large-scale data collection. These methods are useful for measuring customer satisfaction, analyzing customer preferences, and identifying statistical relationships between variables.

It's important to choose a research methodology that aligns with your research objectives, budget, and time constraints. Consider the advantages and limitations of each methodology and select the one that will provide the most relevant and accurate data for your specific research needs.

A well-structured research plan is essential for conducting market research efficiently and effectively. A research plan serves as a roadmap that outlines the steps, timeline, budget, and resources required for your research project.

By creating a comprehensive research plan, you can ensure that your market research efforts are well-organized, efficient, and yield valuable insights. The plan will also serve as a reference point to track progress and make adjustments as needed throughout the research process.

Now that you understand the importance of preparing for market research, we will delve into the practicalities of conducting primary market research in the next section.

Conducting Primary Market Research

Survey research is one of the most commonly used methods for collecting primary research data. Surveys allow businesses to gather a large volume of data from a diverse audience efficiently. They can be conducted through various channels, including online surveys, phone interviews, or in-person questionnaires.

When designing a survey, it is important to carefully craft the survey questions to ensure they are clear, unbiased, and relevant to the research objectives. Use a combination of open-ended and closed-ended questions to gather both qualitative and quantitative data. Open-ended questions provide respondents with the opportunity to express their opinions and provide detailed feedback, while closed-ended questions offer predefined response choices that can be easily analyzed.

To maximize response rates, it is essential to carefully consider the survey administration method. Online surveys are cost-effective and convenient, allowing respondents to complete the survey at their convenience. Phone interviews provide a personal touch and allow for follow-up questions, while in-person questionnaires enable businesses to interact directly with respondents. Choosing the appropriate survey administration method depends on factors such as target audience demographics, research objectives, and available resources.

Additionally, it is crucial to consider respondent fatigue and survey length. Long and tedious surveys can lead to decreased response rates and inaccuracies in responses. Keep the survey concise, focused, and engaging to ensure higher participation and reliable data.

Interviews and focus groups provide valuable qualitative insights into consumer opinions, preferences, and behaviors. These methods allow businesses to engage directly with participants and gain a deeper understanding of their thoughts and motivations.

Interviews can be conducted in-person, over the phone, or through video calls. They provide an opportunity to ask probing questions, delve into specific topics, and explore in-depth responses. The interviewer can adapt the questioning based on the participant's responses, allowing for a dynamic and personalized conversation.

Focus groups involve bringing together a small group of individuals to discuss a specific topic or product. This method allows participants to interact with one another, share their opinions, and generate insights through group discussions. Focus groups provide a unique perspective by capturing the collective thoughts and experiences of the participants.

To conduct successful interviews and focus groups, it is essential to carefully plan the session. Develop a discussion guide or interview script that includes a set of key questions or topics to cover. This will ensure consistency and enable comparability across interviews or focus groups. Actively listen to participants, encourage open and honest responses, and create a comfortable environment for sharing opinions.

Qualitative data obtained from interviews and focus groups require careful analysis. Use techniques such as thematic analysis or coding to identify recurring themes, patterns, and insights. These qualitative insights can provide valuable context and depth to complement quantitative data collected through surveys or other methods.

Observational research involves observing and analyzing consumer behavior in real-life settings. This method allows businesses to gain insights into consumer interactions, preferences, and decision-making processes. It can be particularly useful in retail environments, public spaces, or during product usage.

Participant observation involves immersing oneself in the context being studied and actively participating in the observed activities. This method allows researchers to gain firsthand experience and capture the nuances of behavior and interactions. Non-participant observation, on the other hand, involves observing from a distance without directly engaging with the participants. This method allows for more objective observations and avoids potential biases that may arise from researcher-participant interaction.

When conducting observational research, it is essential to consider ethical considerations and obtain necessary permissions, especially in public spaces or when observing sensitive behavior. Maintain confidentiality and anonymity of participants and ensure that the research does not infringe upon their privacy.

Observational research often involves recording observations through notes, photographs, or video recordings. These records serve as valuable data for analysis and interpretation. Analyze the collected data by identifying patterns, behaviors, and trends. Observational research findings can be used to supplement and validate other primary research methods, providing a comprehensive understanding of consumer behavior.

As we have explored the various primary research methods, it is important to note that choosing the appropriate method depends on the research objectives, target audience, available resources, and the depth of insights required. By carefully selecting and conducting primary market research methods, businesses can uncover valuable insights about their target audience, preferences, and behaviors.

Gathering and Analyzing Secondary Market Research

While primary market research provides valuable firsthand data, secondary market research involves gathering existing data and information from various sources. This section will explore the sources of secondary research data and provide insights into data collection methods and techniques for analyzing and interpreting secondary research findings.

Secondary market research relies on existing data and information that has been collected by others. There are various sources from which businesses can gather secondary research data, including:

When gathering secondary research data, it is crucial to consider the reliability and credibility of the sources. Ensure that the data comes from reputable sources and is up-to-date. Cross-referencing information from multiple sources can help validate the accuracy and consistency of the data.

Once you have gathered the relevant secondary research data, the next step is to organize and analyze it effectively. The process of data collection and analysis involves several key steps:

Secondary research findings should be interpreted and used in conjunction with primary research data to gain a comprehensive understanding of the market landscape. Combining primary and secondary research data allows for triangulation, validation, and a more holistic analysis of the research objectives.

By effectively gathering and analyzing secondary research data, businesses can gain valuable insights into market trends, consumer behavior, and industry dynamics. These insights serve as a foundation for informed decision-making, strategy formulation, and staying ahead of the competition.

Utilizing Market Research Findings

Interpreting and analyzing research findings is a critical step in extracting actionable insights that can drive business decisions. Here are some key considerations when interpreting and applying research findings:

Remember that market research is an iterative process, and new insights may emerge as you delve deeper into the data. Continuously revisit and refine your interpretation of the research findings to ensure that you capture the most accurate and valuable insights.

Effectively communicating research results is crucial to ensure that the insights gained are understood and utilized by key stakeholders. Here are some tips for communicating research results:

Market research is an ongoing process that requires continuous monitoring and evaluation. Here are some key aspects to consider when monitoring and evaluating market research efforts:

By monitoring and evaluating market research efforts, you can ensure that the insights gained are effectively utilized and that your research strategies remain aligned with the evolving market landscape.

In conclusion, effectively utilizing market research findings is essential for driving business growth and staying ahead of the competition. By interpreting and applying research findings, communicating results effectively, and continuously monitoring and evaluating research efforts, businesses can make informed decisions, improve customer experiences, and seize market opportunities.

Conclusion: The Power of Market Research

Market research is a powerful tool that empowers businesses to make informed decisions, understand their target audience, and gain a competitive edge. Throughout this comprehensive guide, we have explored the various aspects of market research, from understanding its importance to conducting primary and secondary research, and utilizing research findings effectively. Now, let's recap the key points and emphasize the power of market research in driving business success.

Market research serves as a compass for businesses, guiding them through the complex landscape of consumer demands, market trends, and competitor analysis. By conducting thorough research, businesses can gain valuable insights into their target audience, identify market opportunities, and mitigate risks. Market research enables businesses to make informed decisions, optimize resources, and drive sustainable growth.

One of the primary benefits of market research is its ability to provide a deep understanding of customer preferences and needs. By gaining insights into customer behavior, businesses can develop products and services that truly resonate with their target audience, leading to higher customer satisfaction and loyalty.

Market research also enables businesses to stay ahead of the competition. By monitoring market trends, tracking competitor activities, and assessing industry dynamics, businesses can identify emerging opportunities and adapt their strategies accordingly. This flexibility allows businesses to maintain a competitive edge and seize market opportunities before their competitors.

Furthermore, market research plays a vital role in effective marketing campaigns. By understanding consumer preferences, motivations, and pain points, businesses can tailor their messaging, positioning, and communication channels to reach and engage their target audience more effectively. This targeted approach increases customer acquisition, enhances brand perception, and drives business growth.

However, market research is not a one-time endeavor. It requires continuous monitoring and evaluation to stay attuned to evolving market trends, consumer preferences, and competitive dynamics. By monitoring key metrics, tracking market trends, and gathering ongoing customer feedback, businesses can refine their strategies, identify areas for improvement, and deliver exceptional customer experiences.

In conclusion, market research is an indispensable tool for businesses aiming to thrive in a competitive marketplace. By understanding the importance of market research, preparing thoroughly, conducting primary and secondary research effectively, interpreting and applying research findings, and continuously monitoring and evaluating research efforts, businesses can gain a deeper understanding of their target audience, make informed decisions, and drive business growth. Embrace the power of market research and unlock the endless opportunities it holds for your organization.

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How to Conduct Market Research for a Startup

• 17 Mar 2022

With every innovative product idea comes the pressing question: “Will people want to buy it?”

As an entrepreneur with a big idea, what’s the best way to determine how potential customers will react to your product? Conducting market research can provide the data needed to decide whether your product fits your target market.

Before launching a new venture, you should understand market research. Here’s how to conduct market research for a startup and why it’s important.

Access your free e-book today.

What Is Market Research?

Market research is the process of gathering information about customers and the market as a whole to determine a product or service’s viability. Market research includes interviews, surveys, focus groups, and industry data analyses.

The goal of market research is to better understand potential customers, how well your product or service fits their needs, and how it compares to competitors’ offerings.

There are two types of research you can conduct: primary and secondary.

• Primary research requires collecting data to learn about your specific customers or target market segment. It’s useful for creating buyer personas, segmenting your market, and improving your product to cater to customers’ needs .
• Secondary research is conducted using data you didn’t collect yourself. Industry reports, public databases, and other companies’ proprietary data can be used to gain insights into your target market segment and industry.

Why Is Market Research Important for Entrepreneurs?

Before launching your venture, it’s wise to conduct market research to ensure your product or service will be well received. Feedback from people who fall into your target demographics can be invaluable as you iterate on and improve your product.

Performing market research can also help you determine a pricing strategy by gauging customers’ willingness to pay for your product. Additionally, it can improve the user experience by revealing what features matter most to potential customers.

When assessing which startups to fund, investors place heavy importance on thorough market research that indicates promising potential. Providing tangible proof that your product fulfills a market need and demonstrating you’ve taken the time to iterate on and improve it signal that your startup could be a worthwhile investment.

Related: How to Talk to Potential Investors: 5 Tips

How to Do Market Research for a Startup

1. form hypotheses.

What questions do you aim to answer through market research? Using those questions, you can make predictions called hypotheses . Defining your hypotheses upfront can help guide your approach to selecting subjects, researching questions, and testing designs.

An example question you may ask is: “How much are people in my target demographic willing to pay for the current version of my product?” Your hypothesis could be: “If my product contains all its current features, customers will be willing to pay $500 for it.”

Another example question you may ask is: “What’s the user’s biggest pain point, and is my product meeting their needs?” Your hypothesis could be: “I believe the user’s biggest pain point is needing an easy, unintimidating way to learn basic car maintenance, and I predict that my product meets that need.”

You can and should test multiple hypotheses, but try to select no more than a few per test, so the research stays focused.

Related: A Beginner’s Guide to Hypothesis Testing in Business

2. Select the Type of Research Needed to Test Hypotheses

Once you’ve formed your hypotheses, determine which type of research to conduct.

If your hypotheses focus on determining your startup’s place in the broader market, start with secondary research. This can include using existing data to determine market size, how much of that market your startup could reasonably own, who your biggest competitors are, and how your brand and product compare to theirs.

If your hypotheses require primary research, decide which data collection method best fits your needs. These can include one-on-one interviews, surveys, focus groups, and polls. Primary research allows you to gather insights into customer satisfaction and loyalty, brand awareness and perception, and real-time product usability.

3. Identify Target Demographics and Recruit Subjects

To gather meaningful insights, you need to understand your target demographic. Do you aim to cater to working parents, young athletes, or pet owners? Determine the type of person who can benefit from your product.

If you conduct primary research, you need to recruit subjects. This can be done in several ways, including:

• Word of mouth: The simplest but least reliable way to recruit participants is by word of mouth. Ask people you know to refer others to be research subjects, then screen them to confirm they fit your target demographic.
• Promoting the study on social media: Many social media platforms enable you to show an ad to people who fall into specific demographic categories or have certain interests. This allows you to get the word out to a large number of people who qualify.
• Hiring a third-party market research company: Some companies provide full market research services and recruit participants and conduct research on your behalf.

However you recruit subjects, ensure they take a screener survey beforehand, which allows you to determine whether they fit the specific demographic you want to study or have a trait that eliminates them from the research pool. It also provides demographic data—such as age and race—that enables you to select a diverse subset of your target demographic.

In addition, you can offer compensation to boost participation, such as money, meal vouchers, gift cards, or early access to your product. Make it clear that compensation is in appreciation for subjects’ time and honest feedback.

4. Conduct the Research

Once you’ve determined the type of research and target demographic necessary to test your hypotheses, conduct your research. To reduce bias, enlist someone unfamiliar with your hypotheses to perform interviews or lead focus groups.

Ask questions based on your audience and hypotheses. For instance, if you’re aiming to test existing customers’ purchase motivations, you may ask: “What challenge were you trying to solve when you first bought the product?”

If examining brand perception, your audience should consist of potential customers who don’t yet know your brand. Present them with a list of competitor logos—with yours in the mix—and ask them to rank the brands by perceived reliability.

While the questions you ask are vehicles to prove or disprove hypotheses, ensure they don’t lead subjects in one direction. To craft unbiased research questions , use neutral language and vary the order of options in multiple-choice questions. This can keep subjects from selecting the same option each time if they sense the third option is always mapped to a certain outcome. It also helps account for primacy bias (the tendency to select the first option in a list) and recency bias (the tendency to select the final option in a list).

Once you’ve collected data, ensure it’s organized efficiently and securely so you can protect subjects’ identities .

Related: 3 Examples of Bad Survey Questions and How to Fix Them

5. Gather Insights and Determine Action Items

After you’ve organized your data, analyze it to extract actionable insights. While some of the data will be qualitative rather than quantitative, you can detect patterns in responses to make it quantifiable. For instance, noting that 15 of 20 subjects mentioned feeling overwhelmed when attempting to assemble your product.

Once you’ve analyzed the data and communicated emerging trends using data visualizations , outline action items.

If the majority of users in your target demographic reported feeling overwhelmed while assembling your product, action items might include:

• Creating different versions of assembly instructions to test with other groups, varying diagrams and instructional language
• Researching instruction manual best practices

Each round of market research can offer more information about how your product is perceived and experienced by potential users.

Market Research as an Ongoing Endeavor

While it’s useful to conduct market research before launching your product, you should revisit your hypotheses and form new ones over the course of building your venture.

By conducting market research with each version of your product, you can gradually improve it and ensure it continues to fit target customers’ needs.

Are you interested in bolstering your entrepreneurship skills? Explore our four-week online course Entrepreneurship Essentials and our other entrepreneurship and innovation courses to learn to speak the language of the startup world.

About the Author

Conducting Market Research 101: A Step by Step Guide

What is market research? Market research is the process of […]

Published on

What is market research?

What is the importance of market research, who needs to conduct market research, types of market research: primary vs secondary, how to conduct a simple market research, market research tools available to businesses.

Market research is the process of gathering, analyzing, and interpreting information about a market, product, service, or industry. It’s an essential tool for businesses of all sizes, as it helps them to understand their target market, identify opportunities, and make informed decisions.

A typical market research report could cover the targeted business’ market size, potential growth, latest market trends, consumer analysis, TAM, SWOT analysis , and competitors’ analysis.

If you’re interested in gaining deeper insights into the dynamics of the restaurant world, explore our SWOT Analysis for Restaurant 2023 guide

There are several reasons why market research is important for businesses:

• Identifying target market : Market research helps businesses to understand who their target market is, what their needs and preferences are, and how to best reach them.
• Identifying opportunities : Market research can help businesses to identify new opportunities, such as untapped markets or emerging trends.
• Competitive analysis : Market research can help businesses to understand their competition and identify areas where they can differentiate themselves.
• Product development : Market research can help businesses to develop and improve their products and services by understanding customer needs and preferences.
• Marketing strategy : Market research can help businesses to develop effective marketing strategies by understanding what messages resonate with their target market and how to best reach them.
• Measuring effectiveness : Market research can help businesses to measure the effectiveness of their marketing and sales efforts and make adjustments as needed.

In short, market research is an essential tool for businesses of all sizes, as it helps them to make data-driven decisions and stay competitive in their industry.

A market analysis is essential for businesses of all sizes and industries, as it helps them make data-driven decisions and stay competitive in their market. Some examples of organizations that need to conduct market research include:

• Small businesses : Small businesses often conduct market research to identify new opportunities and understand their target market.
• Large corporations: Large corporations conduct market research to understand consumer trends, identify new markets, and develop new products and services.
• Non-profit organizations: Non-profit organizations conduct market research to understand their target audience, develop effective fundraising campaigns, and measure the impact of their programs.
• Government agencies: Government agencies conduct market research to understand public opinion, identify social issues, and evaluate the effectiveness of public policies.
• Start-ups : Start-ups conduct market research to validate their business idea, and identify potential customers and competition.
• Entrepreneurs: Entrepreneurs conduct market research to identify new business opportunities, understand the target market, and develop a marketing strategy.
• Researchers : Researchers conduct market research to explore new ideas, test hypotheses, and validate their findings.
• Consultants : Consultants conduct market research to provide valuable insights for their clients, identify new opportunities, and recommend strategies.

In short, market research is essential for anyone who wants to make data-driven decisions, stay competitive in their market, or validate an idea or a hypothesis.

Primary research is a research method that involves collecting original data directly from the source. This type of research is often used to gather the information that is specific to a particular research question or target audience. Examples of primary research methods include:

• Surveys : Surveys are a popular method of primary research that involves asking a large number of people a set of standardized questions. For example, a clothing retailer might conduct a survey to understand consumer preferences for different types of clothing.
• Interviews : Interviews are another popular method of primary research that involve one-on-one conversations between a researcher and a participant. For example, a car manufacturer might conduct interviews with potential customers to understand their preferences for different features in a car.
• Focus groups : Focus groups are a method of primary research that involve a small group of people discussing a particular topic or product. For example, a food manufacturer might conduct focus groups to understand consumer preferences for different types of packaging.
• Experiments : Experiments are a method of primary research that allows you to test a hypothesis by manipulating an independent variable and observing the effect on a dependent variable. For example, an e-commerce website might conduct an A/B test to compare the conversion rate of two different website layouts.

Secondary research is a research method that uses existing data that has already been collected by someone else. This type of research is often used to gather information that is more general or broad in scope. Examples of secondary research methods include:

• Literature review : A literature review is a method of secondary research that involves reading and summarizing existing studies on a particular topic. For example, a researcher might conduct a literature review to understand the current state of knowledge on a particular subject.
• Government statistics : Government statistics are a common source of secondary data, and can be used to gather information on a wide range of topics, such as population demographics, economic indicators, and crime rates.
• Industry reports : Industry reports are another common source of secondary data, and can be used to gather information on specific industries or market segments. For example, a market research firm might use industry reports to understand the size and growth of a particular market.
• Press releases : Press releases are a method of secondary research that can be used to gather information on company news and announcements. For example, a researcher might use press releases to understand the product launch plans of a particular company.

In general, primary research is more specific but may be more expensive and time-consuming. Secondary research is more general and often less expensive, but may not be as specific to a particular research question or target audience.

Step 1: Define your research objectives

Before you begin conducting market research, it’s important to define your research objectives. These objectives should be specific, measurable, and time-bound, and should align with your overall business goals. For example, your research objectives may include understanding consumer behavior, identifying market trends, or evaluating the effectiveness of your current marketing strategy.

Step 2: Determine your research method

Once you have defined your research objectives, you’ll need to determine the best research method to use. There are two main types of market research: primary research and secondary research.

Primary research is conducted by collecting data directly from the source, such as through surveys, focus groups, or interviews. This method allows you to gather information that is specific to your research objectives and to get a deeper understanding of your target market.

Secondary research, on the other hand, involves collecting data that has already been collected by others, such as industry reports, government statistics, and online data. This method is useful for gathering general information about your industry and market and can be a more cost-effective option.

Step 3: Design your research plan

Once you have determined your research method, you’ll need to design a research plan that outlines the steps you’ll take to conduct your research. Your research plan should include the following:

• A description of your research method and why it’s the best option for your research objectives
• A list of the specific research questions you’ll be answering
• A list of the data sources you’ll be using
• A timeline for the research
• A budget for the research

Step 4: Collect your data

With your research plan in place, you’re ready to begin collecting data. Depending on your research method, this may involve conducting surveys, focus groups, interviews, or collecting data from industry reports and other sources.

It’s important to ensure that the data you collect is accurate and reliable and to use a variety of methods to collect data, if possible. For example, if you’re conducting a survey, it’s a good idea to use both online and offline methods to reach a wider audience.

Step 5: Analyze your data

Once you have collected your data, you’ll need to analyze it to extract meaningful insights. This can be a complex process, but there are several tools and techniques you can use to make it easier.

Some of the most common methods of data analysis include statistical analysis, content analysis, and thematic analysis. It’s important to choose the right method for your research objectives and the type of data you’ve collected.

Step 6: Communicate your findings

Finally, it’s important to communicate your findings to the relevant stakeholders in your business. Your findings should be presented in a clear and concise manner and should include both quantitative and qualitative data.

In addition to providing a written report, it’s also a good idea to present your findings in a visual format, such as a graph or chart, to make it easier for stakeholders to understand.

There are many market research tools available to businesses, but some of the most popular and widely used include:

• Online analytics tools : Many businesses use online analytics tools to track website traffic, user behavior, and other data. Some popular tools include Google Analytics, Adobe Analytics, and Piwik.
• Social media listening tools : Social media listening tools allow businesses to track and analyze conversations on social media platforms. Some popular tools include Hootsuite, Brand24 , and Buzzsumo .
• A/B testing : A/B testing is a method of comparing two versions of a product or marketing campaign to see which one performs better. It can be used to test website layouts, headlines, and other elements.

These are just a few examples of the many market research tools available. The best tool will depend on the specific research objectives and target audience.

In conclusion, conducting market research is an essential step in understanding your target market and making informed decisions for your business. By following a step-by-step guide, you can ensure that you gather the information you need to make data-driven decisions.

About the Author: Loaloa Riad

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How to Conduct Market Research: A Step-By-Step Guide

Figuring out how to do market research for the first time can be intimidating and confusing. There are so many categories and different methods to choose from. It often seems like an endless list of organizational tasks and preparations.

However cumbersome as it might seem, research has an irreplaceable value for every company, be it a startup or a big corporation. It’s an instrument that leaders must use to keep themselves informed and up-to-date with market changes and make smart choices.

By observing your customers, you gain valuable insights into their personalities, motivations, challenges, and consumer behavior.

Furthermore, the data you gather gives you a glimpse of the processes that control the marketplace. You can gain a strategic edge over seemingly random or meaningless situations by learning more about them.

To sum up, doing your research helps you make better data-based business choices. This leads to better products, satisfied customers, and crushed competition. Sounds good, right?

If you follow through with your research with precision and discipline, you will soon be able to scale your company’s success rate significantly.

Before you read this guide and start your efforts, we advise you to brush up on the basics first and go through our other articles on market research:

• Market Research 101: From Beginner to Advanced
• Conducting Market Research: 6 Methods to Explore
• 15 Essential Market Research Tips for Businesses

Digging deeper into the process will give you the necessary background and confidence to go forth without any concerns.

So, without further ado, let’s roll our sleeves and get started on how to conduct market research. Read on and take notes!

1. Define the Research Goal

The first step of the process is defining your goal. It is important to start with a clear idea of why you are doing the research and what you want to accomplish. If your motivation is vague, you risk straying from your objectives and becoming distracted by irrelevant information.

During your study, you may find other important topics that are not closely related to the problem you are addressing. You should record them and save them for later research in different projects.

Mixing questions regarding too many problems in one survey can confuse the respondents and affect the accuracy of their answers. It can also make the research results too inconsistent. And it’s hard to conclude a bunch of random facts.

By stating the purpose and the problems of your research, you can establish a clear goal guiding everyone throughout the process.

This way, you’ll concentrate your efforts, and, in the end, you’ll be able to make informed decisions based on data.

For example, if you are choosing the pricing model for a new SaaS product, you should perform market research to make sure you’ll pick out the best one for your business. In this case, it should be something like “ Find out the best pricing strategy for the product ”. Some of the objectives can be:

• Identify the target audience.
• Find out what products they are currently using.
• Learn how much they are paying for them.
• Understand how much they are willing to pay.
• Research how they are using similar products.
• Discover what features they’d pay more for.
• Compare your product to the competition, etc.

Ultimately, your goal should be what you want to see accomplished in the future. That’s why it’s best to focus on your plans and targets, rather than on your current problems. Otherwise, you risk being stuck with unsolvable issues rather than with creative solutions.

2. Create Client Personas

When doing market research, you need a group of people who’ll answer your questions and whose opinions are important to your business. To identify these people, you should first create profiles that fit your target audience.

Client personas, or buyer personas , are collective profiles representing your ideal customers’ common qualities. They can be based on your top buyers in an attempt to attract more people like them to your business, or if you are just starting, they can be the product of separate market research.

Every business should have market personas. If you have already created yours – way to go, you are one step ahead! If you have not yet done it, now is a good time.

When building the buyer persona’s profile, you should include the following basic information, and add other specific factors, if there are any:

• Demographic – Age, gender, location, etc.
• Personal Information – Family status, income, interests, etc.
• Work-related details – Company, position, decision-making level, etc.
• Pain Points – Work and personal life struggles, barriers to achieving goals, etc.

For further reference on how to build buyer persona profiles, you can read DevriX’s article:

An Advanced Guide to Creating and Using Buyer Personas to Convert Leads

3. Identify the Sample

A market research sample is a representative group of people who match your client persona profiles. Depending on the scope of the study, you might include in it people who fit one or multiple personas.

Ideally, if you want the results to be representative, you should focus on a single profile. However, if you feel that you will get more information from different types of customers, you can define separate samples for every participating persona and compare the results at the end.

Defining and identifying a representative sample is the foundation of accumulating accurate results. If your participants don’t match the profile you need, their answers will not be relevant to your goals.

Participants for samples can be identified in:

• Your customer database . Clients should be divided into groups matching your buyer persona profiles. If you haven’t already implemented the segmentation , doing it will help you sift through who to invite to participate in the research.
• Competitors’ clients. People who use products similar to yours and fit the profile, but are not currently your customers, are a great addition to your research. By learning about their opinions and preferences, you can attract them as clients in the future.
• Your lead database . Every lead you have in your email list or CRM tool can be a potential candidate for the survey sample. As with existing customers, leads should be segmented not only for research but also for better marketing.
• Social media profiles . Your network of followers on different social media platforms can be a valuable resource in every survey. By announcing the desired profiles participants should fit and encouraging people to share with acquaintances, you can reach many more potential participants.

Your sample must be large enough and also representative of the population you are targeting. Choosing an audience too small or an ill-targeted group of people can make the results of the research biased.

Although there is not a universal minimal number of people to include in your study, it is generally accepted amongst scientists that less than 100 people is insufficient to make up a statistically relevant conclusion. Therefore, to ensure you’ll reach this number, you’ll have to distribute your questions to at least 150 people.

However, if you want to research only your existing customers and they are less than 100 in total, you can still carry out your study but you’ll have to accept a larger error margin .

4. Perform Your Chosen Research Methods

Once your sample is clear, you can move forward to conducting market research. Depending on your goals, you can explore different methods, but we will be using a strategy combining a few of them for this article. This is usually the safest way to guarantee that your results will be comprehensible and on point.

Prep Your Questions

The goals and objectives you set in the initial stages of your research should be organized and formulated into questions you can ask your participants.

Although the phrasing and scope of these will probably change and be refined throughout the different stages of the research, you should consider testing them at the beginning on a small sample. This will allow you to eliminate rookie mistakes and save you some trouble further on in the research.

Do Secondary Research

Before you start studying your audience, you should consider doing secondary research to build a general idea of the market.

You can find paid and free data available in government databases, private research companies, educational institutions, and public libraries.

There is a chance that the information you go through has nothing to do with the goals of your particular research. But it can still help you identify market patterns at scale and configure your following moves.

Try Various Exploratory Methods

The next step is to dive into your specific target audience and see how things are. This can be done via different exploratory research methods.

1. Observation. At this stage, consider starting with observation. This will give you an idea of how your customers act in real-life situations in their natural environment.

2. Focus Group Meetings. You can continue by consolidating your initial impressions in focus group meetings. The moderator can ask the participants about the subjects that got their attention and the discussion that follows can give you additional insights.

3. Personal Interviews. Interviewing individual representatives of your sample will allow you to ask even more follow-up questions and have a chance to learn about your customers’ preferences, goals, and pain points.

Distribute Customer Surveys

You can leverage all the information you’ve gathered in the previous steps to design customer surveys . They will help you acquire the answers to your questions at scale and prove or disprove the hypothesis built in the exploratory stage.

The questions in the surveys should be as simple and easy to understand as possible. Avoid answers that lead the customer in the direction you’d like. This might influence their responses and compromise the results.

5. Analyze the Data and Organize It Into a Report

The data you obtain should be analyzed and organized at the end of every stage of your market research. These preliminary reports will serve you in the process of the study and will make building the final report easier.

Results from the research will be both qualitative and quantitative and should be properly visualized to make sense to everyone to whom they would be presented.

Cold statistics can be overwhelming, but presenting the data in an engaging format can make it more appealing and clear.

Some forms of reporting are customer journey maps and affinity diagrams . Even users who are not technically advanced can take advantage of modern data visualization tools and make research data interesting to the audience of their presentation.

Step-by-Step Market Research

Conducting market research is complicated. It takes a lot of preparation and can seem intimidating at first. But once you become familiar with the basics, you will be able to do it yourself and reap its success.

By using this guide, you can study different aspects of your target market, and get to know your audience on a different level. Leveraging the data and insights you gather will give you a strategic advantage and empower you to make more informed data-based decisions for your business.

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Market Research: A Beginner’s Guide

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Knowing how to conduct market research enables marketers to create new products, features, and pricing that speak directly to the needs of their customers.

Sadly, most of us lack psychic powers. But we do have market research .

We mere mortals need a way to learn about what our audience wants, how we can earn their business, and how we can maintain or improve loyalty to our brand over time.

This is the domain of market research, a skill that can be intimidating to non-researchers, but one that needs to be part of every marketer’s toolkit.

There are just three phases to a market research project, and this guide will help you tackle all three with gusto. These phases are:

• Collect Data
• Analyze (and Act)

In this post, we break down each phase into multiple steps. Once you get these right, it will be almost as good as being psychic.

Phase 1: Planning for Market Research

To get the best results, start your market research project with a plan. A sk yourself these questions about your products and services:

Is there a need for this product in the market?

Make sure that you are in the right market for your business. If you live in Anchorage, it’s not likely that you would want to start a business selling outdoor swimming pools.

Do my products meet specific market needs?

Think about the general needs that you perceive in your target market, then ask yourself if and how you meet them. Think about what you are doing now and what you could do.

Culturally, healthy eating is popular, but there are multiple different types of diets. If you plan to open a restaurant, are you going to offer healthy options as well as options for those on restrictive diets?

Is my pricing fair and competitive?

Pricing is one of the largest factors in why consumers may leave you for the competition, so keep an eye on both your prices and that of your competitors.

While you want to maximize your profit per unit sold, to maintain regular business, you need to be aware of what your competitors are doing and stay competitive.

Decide What Data You’re Looking for in Your Market Research Study

By analyzing your answers to the above questions, you can come up with a good platform from which to start your research.

The goal is to have an idea of what you can change and make a plan of how to do so.

For example, a specific market need could be gluten-free dinner options. Currently, you have one, but wonder if you should expand your menu to include a wider variety.

Your plan is to survey people with Celiac’s disease and gluten intolerance to see what options they would be most interested in adding to your menu.

By establishing exactly what data you’re looking for, you’ll be able to keep your study on-target.

Form a Research Hypothesis 

Just like having a basic understanding of your market is beneficial to your research, so to is having a hypothesis to inform what you think the results will be.  But, be prepared to be surprised!

Before you begin the research phase, you should have dedicated some time to thinking about how you expect it to go. The true outcome may vary greatly but you will be a better position to analyze your data and make effective changes if you go into it with some plan of attack.

Phase 2: Collecting Market Research Data

Now, on to the meat of your market research project: going out and getting responses!

There are two ways that you will want to approach the data collection process:

Quantitative research is the mathematical approach and should be used heavily in your process. Quantitative question types like radio buttons, checkboxes, and Likert scales are easy to measure and compare.

While the data can be a bit general, quantitative research methods allow you to identify broad trends within the data that you can act on.

Google Analytics is another example of quantitative research that can support or inform your market research surveys. Here, you can look at where your leads are coming from, how long people are staying on your pages or maybe where they are leaving your page. This can give you an idea of what to fix to bring people through the sales funnel.

Qualitative research , on the other hand, asks for more detail. The most common examples are open text question types where respondents put their answers in their own words.

This type of research is usually used in conjunction with quantitative question types as this data is more difficult to analyze, but provides specific examples and deep insights.

For example, you can use Google Analytics as quantitative data showing how potential customers are reaching your page. To find out why  those referrals are more effective than others, use qualitative research.

Surveys, focus groups, user testing, and face-to-face interviews are prime examples of qualitative research and can provide you with answers that are actionable while opening a window  into behavior patterns.

The Two (Main) Types of Market Research

Once you have a plan and hypothesis, it’s time to determine the type of research you need. There are two broad types of market research that you will want to focus on.

Primary research involves conducting your own research about products and services that you plan to offer. Secondary research looks at published data and can be used to create benchmarks and understand the competition.

While there is no set order to gathering your data, I find that conducting secondary research first can help give you the background information that will allow you to create a more targeted primary research project that produces better data.

How to Conduct Secondary Market Research for Your Business

When conducting secondary research, keep your plan and project goals at the top of your mind. It’s easy to fall down a rabbit hole of data and become overwhelmed. Maintaining focus on your pre-established goals will keep you and your market research surveys on target.

Step one is to determine your questions.

Do you need to learn more about the market to help determine your target demographics? Are you hoping to learn more about the competition and how they operate? Do you understand consumer preferences and how they’ll play into your business model?

Next, you’ll need to figure out what kind of information you need to answer your questions. Definining what data you need will keep you on track during your research and help you sift through the mountains of data.

Ask yourself what would be most beneficial to you: statistical data such as annual reports and financial records, or location-specific data and consumer information.

  Once you know what questions you need answered have an idea of the information that will best answer them, you are ready to start the research.

We suggest the following resources for successful secondary research:

• Public sources such as libraries and government departments
• Banks and other financial institutions
• Educational institutions such as universities and technical institutes
• Online periodicals and industry studies (try searching in Google Scholar)

How to Conduct Primary Market Research

  Once you’ve completed your secondary research and have a solid understanding of your particular market, your target demographics, and the competition, you’ll want to get started on your primary research.

Your primary research will get more in-depth about the particulars of your business, products, and location. The questions you ask will be specific for your situation but often the questions include:

• Which factors do consumers consider when making a purchase?
• What do they like/dislike about our current products?
• Where could this product improve?
• What is a fair price for this product?

Collecting Responses for Primary Market Research Surveys

  There are a number of ways to get answers to these questions, however, when in the primary research stage, you want to make sure that you are collecting information from specific segments of people. Use qualifying questions to ensure that your sample meets your demographics are a great way to make sure that your data is practical and actionable. This can involve offering incentives to respondents.

Tapping into Focus Groups for Market Research

If you would like specific answers to how a product could be improved upon, a focus group is a great option.

Focus groups may require the largest incentive but are a great way to get direct feedback on a product. This involves bringing a small group of people together and having them sample your product. Afterwards you’ll ask them specific questions to gather feedback.

Using Surveys and Questionnaires for Market Research

For overarching questions, such as, “what factors do you consider when purchasing?” a survey or questionnaire is a great way to get the opinions of a larger group of people. These can be created online and require less of an incentive as the respondent can take them at their leisure.

If your business is more service oriented, you will still want to explore all of these options, but what may benefit you the most is direct interviews. These can be done face-to-face or over the phone and can focus primarily on getting feedback about the performance of the service.

Phase 3: Analyzing and Acting on Your Market Research Data

The most important aspect of market research is, of course, acting on it. All of the research and data in the world can’t help your business is you don’t put it into action!

In order to thrive, you must be agile and willing to address any faults that your research uncovers. While you may not be able to change everything immediately, you can make incremental improvements that will add up.

How to Accurately Analyze Market Research Survey Data

Throughout the steps taken during research, your quantitative studies should have pointed you in the direction of any areas of weakness. Now you’ll turn your eye on the qualitative research to learn how to fix the problem.

By studying Google Analytics, maybe you found the page where people are most often leaving your site. Having acknowledged the problem, you got direct feedback on where and why and are now ready to fix the issue.

Or while developing a menu, your team discussed the idea of introducing healthy options to please the more conscientious eaters. Using a survey, you polled your market and found that 40% of people said they are concerned about their health and would like to see a menu that reflects this growing trend.

Acting on Your Market Research Findings

Collecting all of this information without acting on it is time wasted, right? Take a look at the feedback you are given and come up with solutions.

If you’re not the sole proprietor, this could involve having your team get together to come up with ways to address any issues or weaknesses. During brainstorming sessions, write every single idea down. Slowly whittle them away until you are left with tangible solutions to established problems.

If you’ve discovered that there is a page where people seem to be falling off in masses. Your qualitative research should give you an idea of why they’re leaving that page and how to improve that experience.

For example, is there something distracting them and causing them to lose focus? Is the contact form a bit too invasive and scaring people away? Fortunately, in the online world, you can use split testing to try out multiple solutions at once to find a winner.

  For the restaurateur, data showed that a huge segment of your market is interested in eating healthy but that they are also economical when it comes to eating out. Through your secondary research, you found that the competition is making a killing by offering seasonal salads that are both healthy and cost effective. What do you do? Adapt accordingly.

The More You Conduct Market Research, The Easier It Gets

It’s easy to look at the market research process and think to yourself that it’s too much work. “How can I overwhelm myself with all of this research when my business is losing money?” you say with your head in your hands.

Sit down, drink a glass of water and remind yourself why you got into business in the first place. Now ask yourself if that business is worth the energy required to make it successful.

Hopefully the answer to that is yes.

And happily, it does get easier. Each time you conduct research, you’re becoming more and more familiar with the market. It won’t happen overnight but soon you’ll have a good enough understanding of your audience that you’ll be providing the studies that newer businesses are looking to during their secondary research.

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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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Academic Experience

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Module 6: Marketing Information and Research

The marketing research process, learning objectives.

• Identify the steps of conducting a marketing research project

A Standard Approach to Research Inquiries

Marketing research is a useful and necessary tool for helping marketers and an organization’s executive leadership make wise decisions. Carrying out marketing research can involve highly specialized skills that go deeper than the information outlined in this module. However, it is important for any marketer to be familiar with the basic procedures and techniques of marketing research.

It is very likely that at some point a marketing professional will need to supervise an internal marketing research activity or to work with an outside marketing research firm to conduct a research project. Managers who understand the research function can do a better job of framing the problem and critically appraising the proposals made by research specialists. They are also in a better position to evaluate their findings and recommendations.

Periodically marketers themselves need to find solutions to marketing problems without the assistance of marketing research specialists inside or outside the company. If you are familiar with the basic procedures of marketing research, you can supervise and even conduct a reasonably satisfactory search for the information needed.

Step 1: Identify the Problem

The first step for any marketing research activity is to clearly identify and define the problem you are trying to solve. You start by stating the marketing or business problem you need to address and for which you need additional information to figure out a solution. Next, articulate the objectives for the research: What do you want to understand by the time the research project is completed? What specific information, guidance, or recommendations need to come out of the research in order to make it a worthwhile investment of the organization’s time and money?

It’s important to share the problem definition and research objectives with other team members to get their input and further refine your understanding of the problem and what is needed to solve it. At times, the problem you really need to solve is not the same problem that appears on the surface. Collaborating with other stakeholders helps refine your understanding of the problem, focus your thinking, and prioritize what you hope to learn from the research. Prioritizing your objectives is particularly helpful if you don’t have the time or resources to investigate everything you want.

To flesh out your understanding of the problem, it’s useful to begin brainstorming actual research questions you want to explore. What are the questions you need to answer in order to get to the research outcomes? What is the missing information that marketing research will help you find? The goal at this stage is to generate a set of preliminary, big-picture questions that will frame your research inquiry. You will revisit these research questions later in the process, but when you’re getting started, this exercise helps clarify the scope of the project, whom you need to talk to, what information may already be available, and where to look for the information you don’t yet have.

Applied Example: Marketing Research for Bookends

To illustrate the marketing research process, let’s return to Uncle Dan and his ailing bookstore, Bookends. You need a lot of information if you’re going to help Dan turn things around, so marketing research is a good idea. You begin by identifying the problem and then work to set down your research objectives and initial research questions:

Step 2: Develop a Research Plan

Once you have a problem definition, research objectives, and a preliminary set of research questions, the next step is to develop a research plan. Essential to this plan is identifying precisely what information you need to answer your questions and achieve your objectives. Do you need to understand customer opinions about something? Are you looking for a clearer picture of customer needs and related behaviors? Do you need sales, spending, or revenue data? Do you need information about competitors’ products, or insight about what will make prospective customers notice you? When do need the information, and what’s the time frame for getting it? What budget and resources are available?

Once you have clarified what kind of information you need and the timing and budget for your project, you can develop the research design. This details how you plan to collect and analyze the information you’re after. Some types of information are readily available through  secondary research and secondary data sources. Secondary research analyzes information that has already been collected for another purpose by a third party, such as a government agency, an industry association, or another company. Other types of information need to from talking directly to customers about your research questions. This is known as primary research , which collects primary data captured expressly for your research inquiry.   Marketing research projects may include secondary research, primary research, or both.

Depending on your objectives and budget, sometimes a small-scale project will be enough to get the insight and direction you need. At other times, in order to reach the level of certainty or detail required, you may need larger-scale research involving participation from hundreds or even thousands of individual consumers. The research plan lays out the information your project will capture—both primary and secondary data—and describes what you will do with it to get the answers you need. (Note: You’ll learn more about data collection methods and when to use them later in this module.)

Your data collection plan goes hand in hand with your analysis plan. Different types of analysis yield different types of results. The analysis plan should match the type of data you are collecting, as well as the outcomes your project is seeking and the resources at your disposal. Simpler research designs tend to require simpler analysis techniques. More complex research designs can yield powerful results, such as understanding causality and trade-offs in customer perceptions. However, these more sophisticated designs can require more time and money to execute effectively, both in terms of data collection and analytical expertise.

The research plan also specifies who will conduct the research activities, including data collection, analysis, interpretation, and reporting on results. At times a singlehanded marketing manager or research specialist runs the entire research project. At other times, a company may contract with a marketing research analyst or consulting firm to conduct the research. In this situation, the marketing manager provides supervisory oversight to ensure the research delivers on expectations.

Finally, the research plan indicates who will interpret the research findings and how the findings will be reported. This part of the research plan should consider the internal audience(s) for the research and what reporting format will be most helpful. Often, senior executives are primary stakeholders, and they’re anxious for marketing research to inform and validate their choices. When this is the case, getting their buy-in on the research plan is recommended to make sure that they are comfortable with the approach and receptive to the potential findings.

Applied Example: A Bookends Research Plan

You talk over the results of your problem identification work with Dan. He thinks you’re on the right track and wants to know what’s next. You explain that the next step is to put together a detailed plan for getting answers to the research questions.

Dan is enthusiastic, but he’s also short on money. You realize that such a financial constraint will limit what’s possible, but with Dan’s help you can do something worthwhile. Below is the research plan you sketch out:

Step 3: Conduct the Research

Conducting research can be a fun and exciting part of the marketing research process. After struggling with the gaps in your knowledge of market dynamics—which led you to embark on a marketing research project in the first place—now things are about to change. Conducting research begins to generate information that helps answer your urgent marketing questions.

Typically data collection begins by reviewing any existing research and data that provide some information or insight about the problem. As a rule, this is secondary research. Prior research projects, internal data analyses, industry reports, customer-satisfaction survey results, and other information sources may be worthwhile to review. Even though these resources may not answer your research questions fully, they may further illuminate the problem you are trying to solve. Secondary research and data sources are nearly always cheaper than capturing new information on your own. Your marketing research project should benefit from prior work wherever possible.

After getting everything you can from secondary research, it’s time to shift attention to primary research, if this is part of your research plan. Primary research involves asking questions and then listening to and/or observing the behavior of the target audience you are studying. In order to generate reliable, accurate results, it is important to use proper scientific methods for primary research data collection and analysis. This includes identifying the right individuals and number of people to talk to, using carefully worded surveys or interview scripts, and capturing data accurately.

Without proper techniques, you may inadvertently get bad data or discover bias in the responses that distorts the results and points you in the wrong direction. The module on Marketing Research Techniques discusses these issues in further detail, since the procedures for getting reliable data vary by research method.

Applied Example: Getting the Data on Bookends

Dan is on board with the research plan, and he’s excited to dig into the project. You start with secondary data, getting a dump of Dan’s sales data from the past two years, along with related information: customer name, zip code, frequency of purchase, gender, date of purchase, and discounts/promotions (if any).

You visit the U.S. Census Bureau Web site to download demographic data about your metro area. The data show all zip codes in the area, along with population size, gender breakdown, age ranges, income, and education levels.

The next part of the project is customer-survey data. You work with Dan to put together a short survey about customer attitudes toward Bookends, how often and why they come, where else they spend money on books and entertainment, and why they go other places besides Bookends. Dan comes up with the great idea of offering a 5 percent discount coupon to anyone who completes the survey. Although it eats into his profits, this scheme gets more people to complete the survey and buy books, so it’s worth it.

For a couple of days, you and Dan take turns doing “man on the street” interviews (you interview the guy in the red hat, for instance). You find people who say they’ve never been to Bookends and ask them a few questions about why they haven’t visited the store, where else they buy books and other entertainment, and what might get them interested in visiting Bookends sometime. This is all a lot of work, but for a zero-budget project, it’s coming together pretty well.

Step 4: Analyze and Report Findings

Analyzing the data obtained in a market survey involves transforming the primary and/or secondary data into useful information and insights that answer the research questions. This information is condensed into a format to be used by managers—usually a presentation or detailed report.

Analysis starts with formatting, cleaning, and editing the data to make sure that it’s suitable for whatever analytical techniques are being used. Next, data are tabulated to show what’s happening: What do customers actually think? What’s happening with purchasing or other behaviors? How do revenue figures actually add up? Whatever the research questions, the analysis takes source data and applies analytical techniques to provide a clearer picture of what’s going on. This process may involve simple or sophisticated techniques, depending on the research outcomes required. Common analytical techniques include regression analysis to determine correlations between factors; conjoint analysis to determine trade-offs and priorities; predictive modeling to anticipate patterns and causality; and analysis of unstructured data such as Internet search terms or social media posts to provide context and meaning around what people say and do.

Good analysis is important because the interpretation of research data—the “so what?” factor—depends on it. The analysis combs through data to paint a picture of what’s going on. The interpretation goes further to explain what the research data mean and make recommendations about what managers need to know and do based on the research results. For example, what is the short list of key findings and takeaways that managers should remember from the research? What are the market segments you’ve identified, and which ones should you target?  What are the primary reasons your customers choose your competitor’s product over yours, and what does this mean for future improvements to your product?

Individuals with a good working knowledge of the business should be involved in interpreting the data because they are in the best position to identify significant insights and make recommendations from the research findings. Marketing research reports incorporate both analysis and interpretation of data to address the project objectives.

The final report for a marketing research project may be in written form or slide-presentation format, depending on organizational culture and management preferences. Often a slide presentation is the preferred format for initially sharing research results with internal stakeholders. Particularly for large, complex projects, a written report may be a better format for discussing detailed findings and nuances in the data, which managers can study and reference in the future.

Applied Example: Analysis and Insights for Bookends

Getting the data was a bit of a hassle, but now you’ve got it, and you’re excited to see what it reveals. Your statistician cousin, Marina, turns out to be a whiz with both the sales data and the census data. She identified several demographic profiles in the metro area that looked a lot like lifestyle segments. Then she mapped Bookends’ sales data into those segments to show who is and isn’t visiting Bookends. After matching customer-survey data to the sales data, she broke down the segments further based on their spending levels and reasons they visit Bookends.

Gradually a clearer picture of Bookends’ customers is beginning to emerge: who they are, why they come, why they don’t come, and what role Bookends plays in their lives. Right away, a couple of higher-priority segments—based on their spending levels, proximity, and loyalty to Bookends—stand out. You and your uncle are definitely seeing some possibilities for making the bookstore a more prominent part of their lives. You capture these insights as “recommendations to be considered” while you evaluate the right marketing mix for each of the new segments you’d like to focus on.

Step 5: Take Action

Once the report is complete, the presentation is delivered, and the recommendations are made, the marketing research project is over, right? Wrong.

What comes next is arguably the most important step of all: taking action based on your research results.

If your project has done a good job interpreting the findings and translating them into recommendations for the marketing team and other areas of the business, this step may seem relatively straightforward. When the research results validate a path the organization is already on, the “take action” step can galvanize the team to move further and faster in that same direction.

Things are not so simple when the research results indicate a new direction or a significant shift is advisable. In these cases, it’s worthwhile to spend time helping managers understand the research, explain why it is wise to shift course, and explain how the business will benefit from the new path. As with any important business decision, managers must think deeply about the new approach and carefully map strategies, tactics, and available resources to plan effectively. By making the results available and accessible to managers and their execution teams, the marketing research project can serve as an ongoing guide and touchstone to help the organization plan, execute, and adjust course as it works toward desired goals and outcomes.

It is worth mentioning that many marketing research projects are never translated into management action. Sometimes this is because the report is too technical and difficult to understand. In other cases, the research conclusions fail to provide useful insights or solutions to the problem, or the report writer fails to offer specific suggestions for translating the research findings into management strategy. These pitfalls can be avoided by paying due attention to the research objectives throughout the project and allocating sufficient time and resources to do a good job interpreting research results for those who will need to act on them.

Applied Example: Bookends’ New Customer Campaign

Your research findings and recommendations identified three segments for Bookends to focus on. Based on the demographics, lifestyle, and spending patterns found during your marketing research, you’re able to name them: 1) Bored Empty-Nesters, 2) Busy Families, and 3) Hipster Wannabes. Dan has a decent-sized clientele across all three groups, and they are pretty good spenders when they come in. But until now he hasn’t done much to purposely attract any of them.

With newly identified segments in focus, you and Dan begin brainstorming about a marketing mix to target each group. What types of books and other products would appeal to each one? What activities or events would bring them into the store? Are there promotions or particular messages that would induce them to buy at Bookends instead of Amazon or another bookseller? How will Dan reach and communicate with each group? And what can you do to bring more new customers into the store within these target groups?

Even though Bookends is a real-life project with serious consequences for your uncle Dan, it’s also a fun laboratory where you can test out some of the principles you’re learning in your marketing class. You’re figuring out quickly what it’s like to be a marketer.

Well done, rookie!

Check Your Understanding

Answer the question(s) below to see how well you understand the topics covered in this outcome. This short quiz does  not  count toward your grade in the class, and you can retake it an unlimited number of times.

Use this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.

• Revision and Adaptation. Authored by : Lumen Learning. License : CC BY: Attribution
• Chapter 3: Marketing Research: An Aid to Decision Making, from Introducing Marketing. Authored by : John Burnett. Provided by : Global Text. Located at : http://solr.bccampus.ca:8001/bcc/file/ddbe3343-9796-4801-a0cb-7af7b02e3191/1/Core%20Concepts%20of%20Marketing.pdf . License : CC BY: Attribution
• Urban life (Version 2.0). Authored by : Ian D. Keating. Located at : https://www.flickr.com/photos/ian-arlett/19313315520/ . License : CC BY: Attribution

Conducting Market Research Project Plan Template

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Gaining a deep understanding of your target market is essential for any successful business. But conducting market research can be overwhelming without a well-structured plan. That's where ClickUp's Conducting Market Research Project Plan Template comes in!

This template empowers your market research team to:

• Outline clear goals and objectives for your research project
• Identify the most effective research methods to gather accurate insights
• Create a detailed timeline and allocate resources efficiently
• Analyze competitor analysis, consumer preferences, and market trends

By using ClickUp's Market Research Project Plan Template, you'll streamline your research process and uncover valuable insights that drive your business forward. Don't miss out on this opportunity - get started today!

Conducting Market Research Project Plan Template Benefits

When using the Conducting Market Research Project Plan Template, you can expect the following benefits:

• Streamline your market research process by having a clear roadmap and timeline for each stage of the project
• Ensure accuracy and reliability of research results by defining specific research methods and data collection techniques
• Optimize resource allocation by identifying the necessary personnel, budget, and tools required for each research task
• Improve decision-making by gaining valuable insights into your target market, competitors, and consumer preferences
• Increase your competitive advantage by staying updated on market trends and identifying new opportunities for growth

Main Elements of Conducting Market Research Project Plan Template

When it comes to conducting market research, you need a solid plan in place to gather accurate and valuable insights. ClickUp's Conducting Market Research Project Plan template has got you covered. Here are the main elements:

• Custom Statuses: Keep track of the progress of your market research tasks with statuses like Complete, In Progress, and To Do.
• Custom Fields: Use custom fields to capture essential information such as research methods, goals, objectives, timeline, and required resources, ensuring that nothing gets overlooked.
• Different Views: Choose from three different views - Doc, Board, and List - to visualize and organize your market research project plan in the way that works best for you.
• Collaboration: Collaborate seamlessly with your market research team by assigning tasks, setting due dates, and attaching files within ClickUp.
• Integration: Integrate with other tools and platforms to streamline your market research process and bring all your data together in one place.

How To Use Conducting Market Research Project Plan Template

If you're looking to conduct market research and need a plan to guide you, follow these five steps using the Conducting Market Research Project Plan Template in ClickUp:

1. Define your research objectives

Start by clearly defining the objectives of your market research project. What specific information are you looking to gather? Are you trying to understand customer preferences, market trends, or competitor analysis? Defining your objectives will help you stay focused and ensure that your research is targeted and effective.

Use custom fields in ClickUp to outline your research objectives and keep them front and center throughout the project.

2. Identify your target audience

Next, identify the specific group of people you want to gather data from. This could be your existing customers, potential customers, or a specific demographic that aligns with your target market. Understanding who your target audience is will help you tailor your research methods and ensure that you're collecting relevant data.

Create tasks in ClickUp to define your target audience and plan how you will reach out to them for data collection.

3. Choose your research methods

There are various methods you can use to gather market research data, such as surveys, interviews, focus groups, or data analysis. Choose the methods that best align with your research objectives and target audience. Consider both qualitative and quantitative research methods to get a well-rounded understanding of your market.

Utilize the Gantt chart in ClickUp to visualize and plan out the timeline for each research method you choose to implement.

4. Collect and analyze data

Once you have determined your research methods, it's time to start collecting data. Implement your chosen methods, whether it's conducting surveys, conducting interviews, or analyzing existing data. Be sure to gather data consistently and accurately to ensure the validity of your research findings.

Use custom fields in ClickUp to track and analyze the data you collect, and create tasks to assign team members responsible for data collection and analysis.

5. Interpret and report findings

After collecting and analyzing the data, it's time to interpret your findings and report them in a clear and concise manner. Identify key insights and trends that emerged from your research and present them in a format that is easy to understand. This could be through a written report, a presentation, or visual representations such as graphs and charts.

Utilize the Table view in ClickUp to organize and present your research findings, and create a Doc to summarize your key insights and recommendations.

By following these five steps and using the Conducting Market Research Project Plan Template in ClickUp, you'll be able to conduct thorough market research and make informed decisions for your business.

Get Started with ClickUp’s Conducting Market Research Project Plan Template

Market research teams can use the Conducting Market Research Project Plan Template to streamline their market research process and gather valuable insights about their target market.

First, hit "Add Template" to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to conduct effective market research:

• Use the Doc view to create a comprehensive project plan that outlines your research goals, objectives, methods, timeline, and resources needed
• The Board view will help you visualize your research tasks and progress, making it easy to track and manage your research activities
• Utilize the List view to create a detailed checklist of research tasks, ensuring that nothing is missed
• Customize the custom fields to capture specific information relevant to your market research project, such as target audience demographics or competitor analysis data
• Organize tasks into three different statuses: Complete, In Progress, To Do, to keep track of progress
• Update statuses as you complete tasks to ensure everyone is informed of the project's progress
• Monitor and analyze tasks to ensure maximum productivity and gather accurate market insights.
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