meaning of marketing research study

• Search Search Please fill out this field.

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 .”

• How to Start a Business: A Comprehensive Guide and Essential Steps 1 of 25
• How to Do Market Research, Types, and Example 2 of 25
• Marketing Strategy: What It Is, How It Works, and How to Create One 3 of 25
• Marketing in Business: Strategies and Types Explained 4 of 25
• What Is a Marketing Plan? Types and How to Write One 5 of 25
• Business Development: Definition, Strategies, Steps & Skills 6 of 25
• Business Plan: What It Is, What's Included, and How to Write One 7 of 25
• Small Business Development Center (SBDC): Meaning, Types, Impact 8 of 25
• How to Write a Business Plan for a Loan 9 of 25
• Business Startup Costs: It’s in the Details 10 of 25
• Startup Capital Definition, Types, and Risks 11 of 25
• Bootstrapping Definition, Strategies, and Pros/Cons 12 of 25
• Crowdfunding: What It Is, How It Works, and Popular Websites 13 of 25
• Starting a Business with No Money: How to Begin 14 of 25
• A Comprehensive Guide to Establishing Business Credit 15 of 25
• Equity Financing: What It Is, How It Works, Pros and Cons 16 of 25
• Best Startup Business Loans for May 2024 17 of 25
• Sole Proprietorship: What It Is, Pros and Cons, and Differences From an LLC 18 of 25
• Partnership: Definition, How It Works, Taxation, and Types 19 of 25
• What Is an LLC? Limited Liability Company Structure and Benefits Defined 20 of 25
• Corporation: What It Is and How To Form One 21 of 25
• Starting a Small Business: Your Complete How-to Guide 22 of 25
• Starting an Online Business: A Step-by-Step Guide 23 of 25
• How to Start Your Own Bookkeeping Business: Essential Tips 24 of 25
• How to Start a Successful Dropshipping Business: A Comprehensive Guide 25 of 25

• Terms of Service
• Editorial Policy
• Privacy Policy
• Your Privacy Choices

• Skip to main content
• Skip to primary sidebar
• Skip to footer
• QuestionPro

• Solutions Industries Gaming Automotive Sports and events Education Government Travel & Hospitality Financial Services Healthcare Cannabis Technology Use Case NPS+ Communities Audience Contactless surveys Mobile LivePolls Member Experience GDPR Positive People Science 360 Feedback Surveys
• Resources Blog eBooks Survey Templates Case Studies Training Help center

Home Market Research

Marketing research: Definition, steps, uses & advantages

What is marketing research?

Marketing research is defined as any technique or a set of practices that companies use to collect information to understand their target market better. Organizations use this data to improve their products, enhance their UX, and offer a better product to their customers. Marketing research is used to determine what the customers want, and how they react to products or features of a product.

Gather research insights

Four standard marketing research methods

The four most common marketing research methods are surveys, interviews, customer observations, and focus groups. You can research various ways without limiting yourself to just one way. Let’s dive deeper into each of these marketing research techniques.

Researchers collect responses by deploying surveys and managing data via online questionnaires or on-screen surveys at the POS. These surveys contain closed-ended and open-ended questions. They are popular and are the most widely used research techniques.

Why are online surveys popular?

Surveys are inexpensive, simple to set-up, deploy, and gather responses. It gets easy to collect multiple answers from a tailored audience group using surveys. Researchers rely on quantitative data, and online surveys provide quick responses compared to the more traditional offline methods. You can collect large amounts of data within minutes from anywhere in the world.

2. Interviews

Face-to-face or personal interviews are a more traditional way of doing marketing research. It is a slow and more expensive way of collecting responses. Researchers doing large scale marketing research do not prefer this method to collect a large number of responses. Interviews are conducted both in-person and on the telephone (CATI). 

Why are interviews important?

Personal interviews may not be widely used but play a significant role in understanding precisely what the respondent feels. You can record more than just verbal responses and understand the customer better. Often, when two humans interact with each other, more information is shared because of the dialogue. Personal interviews are useful in small-scale studies, where the researcher wants to interview a specific group of local respondents. CATI’s are helpful when the respondent base is more expansive.

3. Focus groups

Focus groups or online focus groups involve several respondents who participate in discussions about a particular topic. A researcher conducts focus groups to obtain richer information. The main reason for a focus group is to hold a dialogue between various people on a particular topic of interest. Unlike interviews, focus group members are allowed to interact with each other and influence one another.

Why are focus groups impactful?

It is no secret that focus groups are hugely impactful in decision making. Researchers gain a lot of information by organizing focus groups. Often, focus groups bring up issues not foreseen by researchers. Online or video focus groups have a broad reach, and many organizations have now started creating and nurturing research communities for better respondent handling and data gathering. Direct interaction of business groups and customers positively impacts users because they feel that their voices are heard.

4. Observation

Observation, though not popular and widely used, gives intuitive feedback. Research companies organize customer observation sessions to gather information on how they engage with the product or service (or a similar competitor product or service). Feedback from people’s behavioral attitudes is a powerful tool for researchers looking to improve their products and services.

What makes observation so powerful?

Observational market research is an excellent alternative to focus groups. It’s not only an inexpensive research tool, but you will also witness people interacting with and using your product in a natural environment. The downside is that you will have to make inferences about their feelings and reactions.

LEARN ABOUT: market research trends

How to conduct marketing research

Follow these four marketing research steps to help you understand what your users think and feel about your product, service, or business.

LEARN ABOUT: Behavioral Research

1. Create simple user personas

A user persona is nothing more than a fictional character that represents a user or a customer. Understanding user personas will help you gauge how different persons react to other products and services to understand their needs. To create a persona, your questions must answer these types questions about the user or customer:

• Who are they?
• What’s their primary goal?
• What stops them from achieving that goal?

2. Conduct observational research

Use both overt and covert observation methods to observe and take notes while users use your products or a similar one.

Overt vs. covert observation

• Overt observation asks users if they will allow you to watch them use your product. 
• Covert observation studies users in a natural environment without them knowing. This type of observation generally works only if you sell a product that consumers buy and use regularly. It brings in the purest observational research data as people act naturally while using the products. 

3. Conduct personal interviews

One-on-one conversations with your target population allow you to explore and dig deep into their concerns, revealing answers to many questions. Here are a few tips for conducting personal interviews.

• Be a journalist and not a salesperson. Ask users about their frustrations, needs, and areas where they think they need an improvement in the product. 
• Pose the ‘why’ question to dig deeper. Dive into the details to know more about their past behavior.
• Recording the conversation helps you focus on it rather than take notes simultaneously.

4. Analyze the data

The idea of conducting lean marketing research is to receive quick, actionable insight data. Analyze the information you have collected using various techniques to draw patterns into what customers like and dislike, what they want, and what they do not need. Create a simple visual representation of how people will interact with each other and the product to assess their needs in a better way.

LEARN ABOUT: Marketing Insight

Why is research so valuable?

Without research, it is impossible to gauge and understand your customers. Of course, you will have an idea of what they need and who they are and, but you must dive deeper to win their loyalty. Here is why marketing research matters:

• Attract potential customers: The primary aim of marketing research is to find ways to attract potential customers. It also helps to keep current happy and coming back for more. Understanding your customers entirely is the only way to progress. You’ll lose potential customers if you stop caring about improving your user experience.
• Answer the why’s: Marketing research gives you the answer to the ‘why.’ Make use of user analytics, big data, and reporting dashboards in marketing research to tell you what your users are thinking and why they think and act that way. For example, only marketing research can explain why customers leave you.
• Data-backed decisions: Research beats trends, assumptions, and so-called best business practices. Bad decisions are often taken due to emotional reasoning and guesswork. Focusing on customer experience by listening to your customers directs you in the right direction.
• Better planning: Research keeps you from making absurd decisions by planning in a vacuum. You might not fully gauge what your customers experience and feel while using your product. Customers may use products in a way that surprises you, and they may get confused by features that seem obvious to you. Conducting too much planning but not testing your assumptions will waste your money, time, efforts, and resources. Research helps you save up on all these factors.

LEARN ABOUT: 12 Best Tools for Researchers

Advantages of MKT research

Marketing research and user experience (UX) design help you continuously improve your product by acting on your feedback. Here are the advantages of conducting marketing research:

• Improved efficiency: Efficiency draws you closer to your users. You can improve the efficiency of delivering the product to the market and also increase its usability.
• Cost-effective: Marketing research helps you make the right decisions based on consumer demand, thus saving you costs in creating something that customers do not like or want.

LEARN ABOUT:  Test Market Demand

• Competitive edge: Quicker, more robust insights can help you place your services and products strategically, gaining a competitive advantage over others.
• Build strategies: You can quickly build, alter, or design new approaches to attract your users and consumers.
• Improved communication: Bridge the communication gap by interacting with consumers and hearing them out. This helps consumers feel wanted and special.
• LEARN ABOUT: Market research vs marketing research

MORE LIKE THIS

15 Best Customer Experience Software of 2024

May 2, 2024

Journey Orchestration Platforms: Top 11 Platforms in 2024

Top 12 Employee Pulse Survey Tools Unlocking Insights in 2024

May 1, 2024

Taking Action in CX – Tuesday CX Thoughts

Apr 30, 2024

Other categories

• Academic Research
• Artificial Intelligence
• Assessments
• Brand Awareness
• Case Studies
• Communities
• Consumer Insights
• Customer effort score
• Customer Engagement
• Customer Experience
• Customer Loyalty
• Customer Research
• Customer Satisfaction
• Employee Benefits
• Employee Engagement
• Employee Retention
• Friday Five
• General Data Protection Regulation
• Insights Hub
• Life@QuestionPro
• Market Research
• Mobile diaries
• Mobile Surveys
• New Features
• Online Communities
• Question Types
• Questionnaire
• QuestionPro Products
• Release Notes
• Research Tools and Apps
• Revenue at Risk
• Survey Templates
• Training Tips
• Uncategorized
• Video Learning Series
• What’s Coming Up
• Workforce Intelligence

What is marketing research? Definition and examples

Marketing Research involves systematically collecting data about consumers, rivals, and other entities. That data is analyzed to gain a better understanding of consumers’ needs and other features of the market. Marketing people then summarize the data and conclusions in a report. The report helps senior managers and business owners make informed decisions regarding future plans and strategies.

Effective marketing research also aids in identifying potential new markets or customer segments, allowing companies to expand their reach and diversify their customer base.

Moreover, marketing research continuously evolves to adapt to emerging trends and technologies, ensuring that businesses stay competitive in rapidly changing markets.

“Marketing research is the systematic gathering, recording, and analysis of qualitative and quantitative data about issues relating to marketing products and services. The goal is to identify and assess how changing elements of the marketing mix impacts customer behavior.”

Three main types of marketing research

Marketing research generally consists of three main types of research: 1. Market research . 2. Product researc h. 3. Consumer research .

Market research

Market research is a study of the market, specifically who purchase a product, why they buy it, how competitors behave, and how something is sold.

It is an organized effort to gather and analyze data about target markets. The following quote comes from our article that defines market research:

“We often use the term with the same meaning as marketing research. However, marketing research concentrates on the marketing processes, while market research is about the market in general.”

Product research

Product research involves identifying a need or want and the characteristics of the product or service that will satisfy it. In other words, if consumers have a desire or want, what features or benefits of your product satisfies them and to what extent.

This type of research helps companies determine what consumers really want or need. They can then tailor their goods or services to match those consumer wants and needs.

According to mnbaskool.com:

“Product research is the marketing research that provides information on the desired characteristics of a product or service . Product research helps companies to understand what the customers really want, so that the product can be tailored to match the needs of the customer. This research can help to refine new product ideas.”

Consumer research

Consumer research is all about identifying consumer preferences, motivations, and purchasing behaviors. Specifically, the consumers that the company is focusing on; in other words, the target consumer.

Many marketing experts say that consumer research is part of market research. Marketers gather information through published sources, direct observation, face-to-face interviews, and mail surveys. Telephone interviews are also popular.

Who performs this type of research?

Some companies perform the research themselves while others hire third-party experts or consultants.

Hiring a consulting firm has both advantages and disadvantages. The main advantage is that consultants are marketing research experts. They probably have more experience and training than employees within the company.

The main disadvantage is that they may not understand some the products or services as well as company employees do. The same may also apply to customers and potential customers.

Compound phrases with ‘marketing research’

A compound phrase consists of two or more words. In business and marketing English, there are many compound phrases with the term ‘marketing research’ in them. Let’s have a look at the give most common ones:

Marketing Research Techniques

Refers to the specific methods and tools used in conducting marketing research. As in:

“The company employed various marketing research techniques, such as surveys and focus groups, to understand consumer preferences.”

Marketing Research Analysis

The process of examining and interpreting data collected through marketing research. For example:

“After conducting surveys, the marketing research analysis revealed a growing demand for eco-friendly products among consumers.”

Marketing Research Ethics

Principles and standards guiding the conduct of marketing research to ensure honesty, fairness, and responsibility. For instance:

“Adhering to marketing research ethics, the firm ensured all participant data was kept confidential and used solely for research purposes.”

Global Marketing Research

Research conducted to understand marketing dynamics, consumer behavior, and trends in international markets. As in:

“In their global marketing research, the company discovered significant cultural differences in consumer behavior across different regions, impacting their product strategy.”

Digital Marketing Research

Involves collecting and analyzing data related to digital marketing efforts, such as online consumer behavior, social media trends, and digital advertising effectiveness. For example:

“The digital marketing research showed that the company’s target audience predominantly engaged with their brand through social media platforms, leading to an increased focus on social media advertising.”

Vide – What is Marketing Research?

This video presentation, from our YouTube partner channel – Marketing Business Network , explains what a ‘Marketing Research’ is using simple and easy-to-understand language and examples.

Share this:

• Renewable Energy
• Artificial Intelligence
• 3D Printing
• Financial Glossary

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.

Access best-in-class company data

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.

Related Articles

• Entrepreneurs
• 15 min read

What Is Competitive Analysis and How to Do It Effectively

Rebecca Strehlow, Copywriter at Crunchbase

17 Best Sales Intelligence Tools for 2024

• Market research
• 10 min read

How to Do Market Research for a Startup: Tips for Success

Jaclyn Robinson, Senior Manager of Content Marketing at Crunchbase

Search less. Close more.

Grow your revenue with Crunchbase, the all-in-one prospecting solution. Start your free trial.

Quick links

• Case Studies
• White Papers

Send Inquiry

Market Research Definition, Types, Tools and Benefits

Published on Jul 01, 2022

More than doubling in size from 2008 to 2021, the market research sector brought in over $76.4 (Statista) billion worldwide in 2021.  

What is Market Research?

Market research is the process of gathering, analyzing, and interpreting information about a market, about the product or service to be offered for sale in that market. It is also about the previous, current, and potential customers for the product or service. 

Data collection, analysis, and interpretation are the three main steps in any successful market research project. The data could pertain to a certain demographic, general consumers, rival businesses, or the entire market. This is the cornerstone of any thriving business. The findings can be used for anything from discovering a fresh opportunity to entering the market to developing an entirely new product or service. 

Small business owners can benefit greatly from conducting market research. It can eliminate uncertainty in the creative process and direct energy and funding toward the most promising ideas and initiatives. Many types of market research are conducted by businesses at many different stages. 

Market Research for Businesses  

Accurate and comprehensive data gives a plethora of information on potential and existing customers, competitors, and the industry as a whole, making it the bedrock of any successful commercial endeavor. It helps entrepreneurs weigh the odds of success before sinking a lot of money into a new firm. 

An essential aspect of every successful business plan is conducting market research to gather data that can be used to address potential marketing obstacles. In reality, it is not viable to develop tactics like market segmentation (identifying distinct groups within a market) and product differentiation (establishing a unique selling proposition for a product or service that distinguishes it from the competition) without conducting market research. 

Types of Market Research  

1. quantitative research .

The results of quantitative studies are typically presented using numerical and graphic representations. It's the gold standard for verifying or disproving hypotheses. It is possible to establish broad, overarching truths about a subject by conducting this kind of study. Experiments, numerically recorded observations, and surveys with a limited number of predetermined answer choices are all examples of common quantitative approaches. 

2. Qualitative research 

Words are the currency of qualitative inquiry. It's a tool for making sense of things like ideas and experiences. Using this method, you can learn more about a topic from every angle, which is very useful for researching controversial or poorly understood subjects. Open-ended interviews, written descriptions of observations, and in-depth analyses of the existing literature are all examples of common qualitative techniques. 

Qualitative vs. Quantitative Research 

Quantitative research focuses on numerical and statistical facts, while qualitative research examines concepts and interpretations. Both are necessary to learn various things. Comparatively, qualitative research draws its conclusions from interviews and documents rather than statistics and reasoning. Quantitative studies typically report their findings numerically or graphically, while qualitative studies report their findings verbally. 

3. Primary Research 

Primary data refers to a study that seeks to collect firsthand information from real-world participants. Primary research is data collected by the researcher themselves through various techniques of approaching the target audience directly. You have full legal and ethical rights to the data set you to create. Primary research can be challenging due to the time, money, resources, and familiarity with the topic that it demands. 

4. Secondary Research 

Secondary research is a study that is done after primary research has already been conducted, and it consists of analyzing, interpreting, and summarizing the results of the primary research. A more precise definition of secondary research would be any study that makes use of publicly available data. When conducting secondary research, scholars refer to information that has already been gathered, processed, and made public (and therefore, you do not own this data). Since the accessible data has already been evaluated and interpreted, the researcher just needs to determine the data he wants to use, i.e., the data that is necessary for his project. 

Primary Research vs. Secondary Research

Research that involves the collection of new information, or "primary" research, is distinguished from secondary research by the fact that it is conducted for the first time on a particular topic. Instead, secondary research makes use of information that has previously been gathered through primary research. The fundamental dividing line between primary and secondary research is whether the research has been done before. 

5. Market Research 

Market research on branding can help a business develop, launch, and sustain its brand. This may involve the firm's ethos, branding, visuals, ideals, or very name. Interviews, focus groups, and surveys are all viable options for conducting research. 

6. Customer Research 

Market research on customers is learning what factors most strongly affect your demographic of interest and what adjustments may be made to better attract and retain them as paying customers. The objective of this study is to acquire an intimate understanding of your consumer base and their habits and preferences as they relate to your business. 

7. Competitor Research 

Conducting market research on your competitors entails learning about their businesses and assessing how they stack up against your own. Your competitive product in the market or how to break into a new market could also be a topic of discussion. The study's overarching goal is to help your company prepare for the future by identifying methods to set itself apart from competitors and by learning from customers' opinions and suggestions. 

8. Product Research 

Conducting market research on your items is essential to ensuring they will sell successfully once they hit the shelves. Finding out how people feel about your product and if they feel it's valuable and functioning properly is the goal of this study. The ability to think creatively about enhancements and new features is another benefit. 

Benefits of Market Research 

According to a survey, the market research business is expected to increase at a rate of 12-14% (The Economic Times) per year through FY26, at which point it would have surpassed the $4 billion mark. 

The following is a list of the most important reasons and benefits of marketing research: 

It's a great tool for boosting companies' standing. The ability to think critically and act on that thinking is the key to success. You can keep your business one step ahead of the competition by conducting market research to expand your knowledge of your market or target audience. 

Reduces the potential for loss on an investment. This is a basic point to think about, but it is often crucial to the success of a firm. When starting a firm, it makes sense to spend what amounts to a negligible amount on research and testing the market, product, concept, or idea. 

Possible dangers and benefits are highlighted. Insurance against these two glaring pitfalls lies in both primary research (fieldwork) and secondary research (desk research). Opportunities or red flags may be uncovered through the combination of this with qualitative research for further investigation. 

You can learn more about the advantages and disadvantages of your own business and of your competitors. To achieve entirely objective reporting, it is generally recommended to collaborate with a market research agency. Take advantage of what you've learned from study to improve in areas where you're weak and to gain an edge over the competition. 

Strategic preparation is helped by this. Where do you stand with the core principles of your company plan? If it's supported by data, and you've put in the time and effort to do your own (hopefully continuous) research, you can rest assured that you're giving yourself the best chance of success in your commercial endeavors. 

This aids in the identification of developing tendencies. Being the first, the best, or coming up with the idea that nobody else has is typically what it takes to stay ahead in business. Taking the pulse of your industry on a regular basis is an important habit. You can learn more about the tools available to you to identify and capitalize on these trends by consulting with a research firm or expert. 

Helpful for firms in keeping up with the competition. Being the best calls for an insatiable need for knowledge and a propensity to experiment. The key to success, and the ability to maintain that success, is knowing how to effectively apply the information gleaned from market research, audience research, and data research. 

It includes forecasts for future income. One of the most important parts of any market study is a forecast, which looks into the future and predicts the size, makeup, and trends of the market you're interested in. This allows for the categorization of prospective clients. You should prioritize the market that is the best fit for your business rather than the largest or fastest-growing. 

It's geared toward meeting the wants and desires of its patrons. Many things in business, including research, benefit from keeping clients front and center. By reaching out to individuals through online panels, web forums, telephone surveys, in-depth interviews, and focus groups, market researchers can learn where their business's ideas, services, and products can be strengthened. 

Using this method, one can measure the progress of one's company against predetermined standards. Utilize data gathered from the market to study the competition, gauge employee enthusiasm, identify knowledge or skill shortages, and identify development opportunities. This will allow you to consider novel approaches, ideas, and resources for boosting your company's efficiency. 

Market Research Tools 

In order to better understand your market and target audience, you need to use market research techniques. It's fundamental to every company's success, and in today's more crowded marketplace, a thorough familiarity with your target market is more important than ever. Good news: you don't have to be an "insights genius" to get started collecting the data you need, owing to the proliferation of market research tools. Some of the best and most widely used methods of market research include: 

• Answer the Public 
• Attest 
• Google Trends 
• Social Mention 
• Remesh 
• Heartbeat Ai 
• Think With Google 
• Spyfu 
• Latana 
• BuzzSumo 
• Statista 
• Typeform 
• Otter.ai 
• Dimensions.ai 

How to Conduct Research for Your Business: Market Research Strategies 

Despite their different objectives, market research and marketing research should use the same framework for gathering and analyzing information about your company's target audiences. These help in primary research as well as secondary research.  

Clearly identify the problem at stake. Establish an initial research topic. Having a clear research question in mind will allow you to better organize your findings. 

Start by figuring out your financial and time constraints. How much money do you have to put into your study? When do you anticipate finishing data collection? Research, like any other tactic for expanding your company, should be carried out within your means. Nonetheless, it may be worthwhile to spend more money to receive the most comprehensive results available, especially if the questions you are answering are time-sensitive. 

Planning your approach and requirements. Find out what information needs to be gathered and figure out how to get it. Observation, surveys, phone calls, and focus groups are among the alternatives. Consult a professional research agency if you are unsure of how to organize your data collection. 

Pick a way to sample the data. I need to know how you plan on picking people to take part in your study. You may require a cross-section of the consumer population at large, a subset of the population who share a particular characteristic of their way of life, or just the opinions of those who are already familiar with your brand. Develop a plan for tracking down and contacting the persons who will take part in your research. 

Prepare a data analysis strategy. Think about the methods you'll use to examine the data. Do you require numbers for statistical analysis, or can you get a sense of things from qualitative, observable data? Spend some time learning about the many types of analysis so you can pick the one that will yield the most useful results for your study. 

Gathering information. The next step is data collection, which may begin once you have settled on a research question and developed a strategy for answering it within the bounds of your time and money. Research is often outsourced to professional firms or consultants by many corporations. 

Examining the information. It is important to apply certain methods of analysis to make sense of your data, no matter how simple it may appear at first. Which analytical techniques you employ are most suited to your data is a function of the information you've gathered. Also, this is the time to double-check for any mistakes that might have crept into your data gathering, analysis, or sampling. 

Make the report you need. Concluding your research with a written report is the next to last stage. From formulating a problem statement to discussing the findings of your data study, your report should include it all. 

Why is Market Research Important?

Over 44,000 businesses across the United States provide some form of market research. Their total annual income is around $23 billion (QuestionPro).  

The importance of Market Research is the following -  

1. Identifies new products or services

By conducting market research, a business can learn what consumers want and how to best meet their demands. Identifying the major challenges associated with creating a product or service can help you save money. It's useful for figuring out what customers value most and how to implement that into your product or service offering. 

2. Identifies potential customers

You may learn more about your clientele by analyzing demographic information like their gender, age, income, occupation, and interests. You'll have a better idea of who to target with your future advertising efforts if you have a clear picture of your current clientele. When a product is marketed to the wrong demographic, sales suffer. 

3. Establishes viability of a product or service

If your organization is considering introducing a novel product or service to consumers, you should find out if there is a need for it. Do people need this product? Do the people you plan to sell to actually want this product? Does it have any chance of succeeding, and does it even have a chance of being a viable trend? 

4. Anticipates and discovers future market trends 

If you are familiar with your market and the tendencies that are just beginning to emerge, you will be better prepared to build tactics to combat any negative tendencies that may threaten your company. As a result, you can use rising tendencies to your advantage and propel your company forward. 

5. Keeps your company ahead of competitors

Examining your company's performance in relation to that of its rivals is a prime use for comparative research. If they're much ahead of you, it's a fantastic chance to figure out what you're doing wrong. It is possible to devise business plans that will help you surpass the competition. 

6. Decide the best marketing strategy

Conducting research is helpful for pinpointing the optimal distribution platform for reaching your target audience. If you find out that a large portion of your audience prefers one form of communication over another, it makes sense to concentrate your efforts there. Because of the scarcity of these resources, it only makes sense to direct them toward endeavors with a high probability of success. 

7. Reduces risk and increases profitability

The ability to assess the value of potential risks in light of past performance and anticipated future market behavior is a crucial business skill. The success or failure of a business idea depends heavily on the results of market research. Understanding your consumers and their habits is another crucial step in risk reduction. Taking less risk leads to greater financial rewards. 

8. Identifies threats and opportunities

The SWOT analysis is likely familiar to many of you. The acronym SWOT refers to a company's "strengths," "weaknesses," and "All four of them can be figured out with the use of market research . While a lot of data can be collected through market research, not all of it needs to be used. Use only information that is directly related to your major objective (which you will have established in advance). 

9. Helps to understand existing customers

By conducting market research, you can learn more about your current clientele. Because of this complexity, you can't assume that you know what your clients require. If you want to be successful, you need to take the temperature of your clientele on a frequent basis. Satisfaction levels among customers can also be measured with the help of surveys. You can find out what is bothering them and make adjustments if necessary. If they are already rather high, you can examine the factors that led to this success and implement changes to maintain it. 

10. Assists in realistic goal setting

Goals that are more realistic can be established with the support of up-to-the-minute information on your market and customer base. Knowing what to expect and how to realistically expand growth over time is greatly aided by establishing a growth pattern throughout time. Setting objectives that are too lofty will cause you to waste time and energy trying to achieve something that is impossible. 

How Efficient is Market Research? 

You should only invest time, energy, and money into market research if you expect to see a favorable return on that investment. Because it is so worthwhile, market research continues to play a significant role in the success of any organization. Market research won't ensure your company's success on its own, but it will arm you with the data you need to make the moves that will. 

Many of the advantages of this type of study were examined, but the drawbacks were also taken into account. If you don't conduct market research, you run the danger of losing clients to the competition, missing out on growth prospects, being more susceptible to hazards, making bad business decisions, and more. Some companies succeed without first doing their homework, but those situations are unusual. To build your firm and avoid typical errors, conduct market research. 

Market Research Methods  

Although there are a variety of approaches to conducting market research, the majority of companies opt to utilize one of the following five fundamental approaches: surveys, focus groups, personal interviews, observation, and field trials. Which strategies you decide to implement for your company will depend on the kinds of data you require as well as the amount of money you are ready to pay. Some of the major methods of market research are following - 

1. Surveys 

Surveys ask participants questions. They can use numerous survey methods. Surveys are a cost-effective technique to collect data for the study. Written surveys may encourage truthful responses since participants feel like they're speaking privately. 

2. Discussions 

Focus groups are moderated discussions. Companies assemble consumers to conduct focus groups, pose questions, and record replies. Participants' replies may reveal what consumers want in a firm or a product because they represent a broad group. Focus groups offer longer participant interaction than surveys. 

3. Interviews 

An interview combines focus group and one-on-one survey aspects. It includes recording one participant's comments at a time. Open-ended questions elicit in-depth answers from the interviewee. Researchers can ask follow-up questions and let interviewees ask their own. 

4. Social media listening 

Social media users routinely discuss corporations and their products. Researchers can search for discussion topics and measure consumer sentiment through social media listening. 

5. Observations 

Observation in market research means studying how consumers shop. Filming shoppers in a store and studying their shopping habits is common. This strategy can reveal their natural selves if they are ignorant of the observation. 

6. Experiments 

In a field trial, a corporation lets participants use a product under typical conditions and collects data. Participants' feedback was used to improve the product. 

7. Competitive analysis 

Competitive analysis is a secondary market research process where companies acquire and analyze competition information. It entails identifying primary and secondary rivals and analyzing their offerings, revenues, and marketing methods. 

8. Statistics 

Public data entails seeking and evaluating public market data. This research is often free online or in libraries. Research centers, polls, or government databases may provide this information. Public data is often used to confirm or compare primary market research. 

9. Purchased data 

Companies without the time or resources to perform their own market research can buy it. Several market research companies sell database subscriptions. Small and medium-sized businesses that can't afford primary market research may benefit from this approach. 

10. Analysis of sales data 

Competition analysis is just one way that may be used in tandem with sales data analysis to show how different business tactics affect revenue. It can also reveal consumers' buying behavior and consumer trends. 

Functions of Marketing Research  

The following are the main functions of Marketing Research - 

Description: Marketing research details customers. Age, sex, education, income, etc., are listed. It describes the market and competitors. This description helps marketing decision-makers and problem-solvers. 

Evaluation: Marketing research evaluates firm performance. It evaluates production and marketing policies. It measures customer reactions to product quality, price, packaging, advertising, sales, and promotions. If consumers dislike the company's policies, they must alter them. It contrasts company and rival policies. 

Explanation: Marketing research answers all marketing questions. It explains why sales are declining, why retailers are unhappy, etc. It explains the problem's causes. It gives a solution. 

Prediction: Marketing research forecasts. Predictions are future forecasts. It predicts sales, market prospects, dangers, marketing environment, customer behavior, etc. All predictions may be wrong. Predictions help the organization create plans and policies. It helps seize possibilities. It prevents future hazards. 

Decision Making: Marketing research aids decision-makers. It gives decision-making data. Decision-making involves choosing between options. Decision-making requires accurate data. MR helps the marketer decide. It gives decision-making data. It offers alternatives. It compares each option's pros and cons. It helps marketing managers choose the right action. 

Conclusion 

The world's markets are changing at a dizzying rate, making it more important than ever for companies to adapt quickly enough to be competitive. One method is to conduct market research. The results of your market research and analysis will provide you with a thorough understanding of your target audience's wants and needs, as well as your competitors' strengths and weaknesses. 

The key to making your business successful in the face of intense competition is identifying and fixing your deficiencies. The right market research tools will aid you in doing just that! The time to begin expanding your company is now.  

With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.    

A leader in  Market research services , SG Analytics enables organizations to achieve actionable insights into products, technology, customers, competition, and the marketplace to make insight-driven decisions.  Contact us  today if you are an enterprise looking to make critical data-driven decisions to prompt accelerated growth and breakthrough performance.

Our Services

Investment Insights

Market Research

Data Analytics

ESG Services

Data Solutions

ESG Data Services

Technology Services

Investment Banking

Private Equity/VC

ESG Data and Research

Marketing Analytics

Advanced Analytics

Customer Analytics

Hedge Fund Services

Market Intelligence

Equity Research

Recent Blogs

Impact Fund Opportunity: Spotlight on Emerging Managers

Transparent Trading: Private Equity’s Increasing Involvement in the Offsets Market

From Mess to Magic: Streamlining Data Operations for Maximum Efficiency

Navigating the Digitization Paradox: Balancing AI And Personal Touch in the Age of Automation

DataVersity: Embracing the Power of Unified Data Solutions

NAB 2024 Key Trends

A Shift toward Sustainable Media Consumption Imminent

ESG Global Enterprise Pulse Survey 2023: Key Findings

Future Trends and Technological Advances in Vaccine and Disease Prevention

SGA Knowledge Team

We are a dynamic team of subject matter experts who create informative, relevant and...

How To Do Market Research: Definition, Types, Methods

Jan 2, 2024

11 min. read

Market research isn’t just collecting data. It’s a strategic tool that allows businesses to gain a competitive advantage while making the best use of their resources. Research reveals valuable insights into your target audience about their preferences, buying habits, and emerging demands — all of which help you unlock new opportunities to grow your business.

When done correctly, market research can minimize risks and losses, spur growth, and position you as a leader in your industry. 

Let’s explore the basic building blocks of market research and how to collect and use data to move your company forward:

Table of Contents

What Is Market Research?

Why is market research important, market analysis example, 5 types of market research, what are common market research questions, what are the limitations of market research, how to do market research, improving your market research with radarly.

Market Research Definition: The process of gathering, analyzing, and interpreting information about a market or audience.

Market research studies consumer behavior to better understand how they perceive products or services. These insights help businesses identify ways to grow their current offering, create new products or services, and improve brand trust and brand recognition .

You might also hear market research referred to as market analysis or consumer research .

Traditionally, market research has taken the form of focus groups, surveys, interviews, and even competitor analysis . But with modern analytics and research tools, businesses can now capture deeper insights from a wider variety of sources, including social media, online reviews, and customer interactions. These extra layers of intel can help companies gain a more comprehensive understanding of their audience.

With consumer preferences and markets evolving at breakneck speeds, businesses need a way to stay in touch with what people need and want. That’s why the importance of market research cannot be overstated.

Market research offers a proactive way to identify these trends and make adjustments to product development, marketing strategies , and overall operations. This proactive approach can help businesses stay ahead of the curve and remain agile as markets shift.

Market research examples abound — given the number of ways companies can get inside the minds of their customers, simply skimming through your business’s social media comments can be a form of market research.

A restaurant chain might use market research methods to learn more about consumers’ evolving dining habits. These insights might be used to offer new menu items, re-examine their pricing strategies, or even open new locations in different markets, for example.

A consumer electronics company might use market research for similar purposes. For instance, market research may reveal how consumers are using their smart devices so they can develop innovative features.

Market research can be applied to a wide range of use cases, including:

• Testing new product ideas
• Improve existing products
• Entering new markets
• Right-sizing their physical footprints
• Improving brand image and awareness
• Gaining insights into competitors via competitive intelligence

Ultimately, companies can lean on market research techniques to stay ahead of trends and competitors while improving the lives of their customers.

Market research methods take different forms, and you don’t have to limit yourself to just one. Let’s review the most common market research techniques and the insights they deliver.

1. Interviews

3. Focus Groups

4. Observations

5. AI-Driven Market Research

One-on-one interviews are one of the most common market research techniques. Beyond asking direct questions, skilled interviewers can uncover deeper motivations and emotions that drive purchasing decisions. Researchers can elicit more detailed and nuanced responses they might not receive via other methods, such as self-guided surveys.

Interviews also create the opportunity to build rapport with customers and prospects. Establishing a connection with interviewees can encourage them to open up and share their candid thoughts, which can enrich your findings. Researchers also have the opportunity to ask clarifying questions and dig deeper based on individual responses.

Market research surveys provide an easy entry into the consumer psyche. They’re cost-effective to produce and allow researchers to reach lots of people in a short time. They’re also user-friendly for consumers, which allows companies to capture more responses from more people.

Big data and data analytics are making traditional surveys more valuable. Researchers can apply these tools to elicit a deeper understanding from responses and uncover hidden patterns and correlations within survey data that were previously undetectable.

The ways in which surveys are conducted are also changing. With the rise of social media and other online channels, brands and consumers alike have more ways to engage with each other, lending to a continuous approach to market research surveys.

3. Focus groups

Focus groups are “group interviews” designed to gain collective insights. This interactive setting allows participants to express their thoughts and feelings openly, giving researchers richer insights beyond yes-or-no responses.

One of the key benefits of using focus groups is the opportunity for participants to interact with one another. They spark discussions while sharing diverse viewpoints. These sessions can uncover underlying motivations and attitudes that may not be easily expressed through other research methods.

Observing your customers “in the wild” might feel informal, but it can be one of the most revealing market research techniques of all. That’s because you might not always know the right questions to ask. By simply observing, you can surface insights you might not have known to look for otherwise.

This method also delivers raw, authentic, unfiltered data. There’s no room for bias and no potential for participants to accidentally skew the data. Researchers can also pick up on non-verbal cues and gestures that other research methods may fail to capture.

5. AI-driven market research

One of the newer methods of market research is the use of AI-driven market research tools to collect and analyze insights on your behalf. AI customer intelligence tools and consumer insights software like Meltwater Radarly take an always-on approach by going wherever your audience is and continuously predicting behaviors based on current behaviors.

By leveraging advanced algorithms, machine learning, and big data analysis , AI enables companies to uncover deep-seated patterns and correlations within large datasets that would be near impossible for human researchers to identify. This not only leads to more accurate and reliable findings but also allows businesses to make informed decisions with greater confidence.

Tip: Learn how to use Meltwater as a research tool , how Meltwater uses AI , and learn more about consumer insights and about consumer insights in the fashion industry .

No matter the market research methods you use, market research’s effectiveness lies in the questions you ask. These questions should be designed to elicit honest responses that will help you reach your goals.

Examples of common market research questions include:

Demographic market research questions

• What is your age range?
• What is your occupation?
• What is your household income level?
• What is your educational background?
• What is your gender?

Product or service usage market research questions

• How long have you been using [product/service]?
• How frequently do you use [product/service]?
• What do you like most about [product/service]?
• Have you experienced any problems using [product/service]?
• How could we improve [product/service]?
• Why did you choose [product/service] over a competitor’s [product/service]?

Brand perception market research questions

• How familiar are you with our brand?
• What words do you associate with our brand?
• How do you feel about our brand?
• What makes you trust our brand?
• What sets our brand apart from competitors?
• What would make you recommend our brand to others?

Buying behavior market research questions

• What do you look for in a [product/service]?
• What features in a [product/service] are important to you?
• How much time do you need to choose a [product/service]?
• How do you discover new products like [product/service]?
• Do you prefer to purchase [product/service] online or in-store?
• How do you research [product/service] before making a purchase?
• How often do you buy [product/service]?
• How important is pricing when buying [product/service]?
• What would make you switch to another brand of [product/service]?

Customer satisfaction market research questions

• How happy have you been with [product/service]?
• What would make you more satisfied with [product/service]?
• How likely are you to continue using [product/service]?

Bonus Tip: Compiling these questions into a market research template can streamline your efforts.

Market research can offer powerful insights, but it also has some limitations. One key limitation is the potential for bias. Researchers may unconsciously skew results based on their own preconceptions or desires, which can make your findings inaccurate.

• Depending on your market research methods, your findings may be outdated by the time you sit down to analyze and act on them. Some methods struggle to account for rapidly changing consumer preferences and behaviors.
• There’s also the risk of self-reported data (common in online surveys). Consumers might not always accurately convey their true feelings or intentions. They might provide answers they think researchers are looking for or misunderstand the question altogether.
• There’s also the potential to miss emerging or untapped markets . Researchers are digging deeper into what (or who) they already know. This means you might be leaving out a key part of the story without realizing it.

Still, the benefits of market research cannot be understated, especially when you supplement traditional market research methods with modern tools and technology.

Let’s put it all together and explore how to do market research step-by-step to help you leverage all its benefits.

Step 1: Define your objectives

You’ll get more from your market research when you hone in on a specific goal : What do you want to know, and how will this knowledge help your business?

This step will also help you define your target audience. You’ll need to ask the right people the right questions to collect the information you want. Understand the characteristics of the audience and what gives them authority to answer your questions.

Step 2: Select your market research methods

Choose one or more of the market research methods (interviews, surveys, focus groups, observations, and/or AI-driven tools) to fuel your research strategy.

Certain methods might work better than others for specific goals . For example, if you want basic feedback from customers about a product, a simple survey might suffice. If you want to hone in on serious pain points to develop a new product, a focus group or interview might work best.

You can also source secondary research ( complementary research ) via secondary research companies , such as industry reports or analyses from large market research firms. These can help you gather preliminary information and inform your approach.

Step 3: Develop your research tools

Prior to working with participants, you’ll need to craft your survey or interview questions, interview guides, and other tools. These tools will help you capture the right information , weed out non-qualifying participants, and keep your information organized.

You should also have a system for recording responses to ensure data accuracy and privacy. Test your processes before speaking with participants so you can spot and fix inefficiencies or errors.

Step 4: Conduct the market research

With a system in place, you can start looking for candidates to contribute to your market research. This might include distributing surveys to current customers or recruiting participants who fit a specific profile, for example.

Set a time frame for conducting your research. You might collect responses over the course of a few days, weeks, or even months. If you’re using AI tools to gather data, choose a data range for your data to focus on the most relevant information.

Step 5: Analyze and apply your findings

Review your findings while looking for trends and patterns. AI tools can come in handy in this phase by analyzing large amounts of data on your behalf.

Compile your findings into an easy-to-read report and highlight key takeaways and next steps. Reports aren’t useful unless the reader can understand and act on them.

Tip: Learn more about trend forecasting , trend detection , and trendspotting .

Meltwater’s Radarly consumer intelligence suite helps you reap the benefits of market research on an ongoing basis. Using a combination of AI, data science, and market research expertise, Radarly scans multiple global data sources to learn what people are talking about, the actions they’re taking, and how they’re feeling about specific brands.

Our tools are created by market research experts and designed to help researchers uncover what they want to know (and what they don’t know they want to know). Get data-driven insights at scale with information that’s always relevant, always accurate, and always tailored to your organization’s needs.

Learn more when you request a demo by filling out the form below:

Continue Reading

What Are Consumer Insights? Meaning, Examples, Strategy

How Coca-Cola Collects Consumer Insights

Market Intelligence 101: What It Is & How To Use It

9 Top Consumer Insights Tools & Companies

Quickonomics

Market Research

Definition of market research.

Market research refers to the process of gathering, analyzing, and interpreting data about a specific market or industry. It is a systematic and objective way of collecting information about consumers, competitors, and market trends to make informed business decisions. Market research can involve various methods such as surveys, interviews, focus groups, and data analysis.

Let’s say you are planning to start a new business selling organic skincare products. Before launching your products, you want to understand the market demand, competition, and preferences of potential customers. In order to conduct market research, you can start by designing a survey to collect information from a sample of your target audience. The survey can include questions about their skincare routines, preferences, and willingness to pay for organic products.

Additionally, you can analyze existing market data and reports to understand the competitive landscape and identify market trends. This might involve examining sales figures, market share data, and consumer behavior patterns in the skincare industry.

Based on your research findings, you can make data-driven decisions on aspects such as product development, pricing, marketing strategies, and distribution channels.

Why Market Research Matters

Market research is crucial for any business because it provides valuable insights and understanding of the market environment. It helps businesses identify opportunities and potential challenges, make informed decisions, and minimize risks. By conducting market research, businesses can gain a competitive advantage, tailor their products or services to meet customer needs, and develop effective marketing campaigns. It allows businesses to stay ahead of the competition, attract and retain customers, and ultimately drive business growth and success.

To provide the best experiences, we and our partners use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us and our partners to process personal data such as browsing behavior or unique IDs on this site and show (non-) personalized ads. Not consenting or withdrawing consent, may adversely affect certain features and functions.

Click below to consent to the above or make granular choices. Your choices will be applied to this site only. You can change your settings at any time, including withdrawing your consent, by using the toggles on the Cookie Policy, or by clicking on the manage consent button at the bottom of the screen.

• Content Marketing
• Content Strategy
• Pillar-Based Marketing
• SEO Keyword Research
• SEO Pillars
• SEO Strategy
• Website Content
• DJ For Agencies
• Customer Stories
• Documentation
• Press Releases

What Is Marketing Research?

April 6, 2020 • DJ Team

Marketing research refers to the process by which an organization gathers information about its ideal customer and larger market in order to inform the organization’s go-to-market strategy. This research might include gathering data from current or former customers, consumers in your target market, or even marketing activities of competitors.

(Automate your marketing research with Consumer Insights .)

Maybe you’re already doing something in this area but you’re wondering if you’re doing it well. Whether you’re looking for a market research definition or just have questions like “what is market research used for?” or “why is marketing research important?”, you’ve come to the right place.

How Does Market Research Help a Business?

Marketing research helps a business by giving it insights into what customers say they like and dislike, what they say they want. These insights come in both quantitative and qualitative forms and can play a massive role in empowering a business’s decision-making.

Marketers play a significant role in both gathering and interpreting the data used in marketing research. In most organizations, the marketing department (sometimes in conjunction with sales) has a pulse on the customer base. Marketers are well positioned to actually reach the people needed to perform market research.

Generally speaking, marketing also has the skills needed to interpret the data that comes in through market research. Companies of any size will have a trained researcher or analyst that assists with preparing marketing research, keeping results rational rather than reactionary.

Market Research Methods

All that is well and good, but if you’re still wondering “how do you do market research?” we’ve got you covered.

The role of research in marketing is to derive marketing insights from real data. We love marketing and marketers—truly we do—but relying on marketers’ good sense and one-off customer interactions is a reactionary, even dangerous, way to operate a business. It’s much safer to operate with real market research data backing up your decisions.

You may also be wondering, what are the elements of marketing research? While the marketing research process will look a little different for every organization, there are some marketing research steps that are common in most scenarios. To build an effective marketing research study, most marketers will follow some combination of the following market research steps or categories:

• Qualitative marketing research explores a topic from a descriptive or conceptual lens. With this type of marketing research, participants describe from their perspective how something is or behaves, rather than putting numbers to it.
• Quantitative marketing research is a purely numbers-driven approach. This type of research gathers data from responses that can be counted or quantified.
• Ethnographic marketing research is any effort that attempts to gauge the marketing initiative or product in a natural environment or with anthropology as its basis.
• Business to business (B2B) marketing research is any of the above or other methods or steps applied in a B2B context. This category has a new set of challenges: getting any responses at all can be difficult, and getting honest ones can in some situations be challenging.

Types of Marketing Research

So what is an example of marketing research? It depends on what type you’re looking for. Within the broader category of marketing research, there are several different types. The following list is just a sampling:

• Analysis of marketing performance
• Brand awareness research
• Brand association research
• Demand estimation
• Marketing effectiveness
• Mystery shopping
• Sales forecasting
• Trendspotting

We’ll look at a couple marketing research examples illustrating some of these types.

Successful market research examples are those that gather real customer data that’s both representative and realistic and that result in improvements for the company. These improvements could be increased sales, increased profits, improved customer relationships or a host of other objectives.

For example, you might look at trends in search traffic to to understand how your competitors are bringing consumers to their websites over time, and therefore, what search terms consumers are using to find the products they like.

When analyzing this marketing data, you can find key insights to inform your own paid search marketing strategy - such as what keywords to bid on or how to structure your ad campaigns.

One easy way to conduct marketing research is to take a look into the analytics platforms your team may be using to track marketing performance. When you leverage cross-channel analytics , you are able to evaluate the customer journey holistically and understand how customers prefer to interact with your brand across their entire path to purchase.

You can also begin to estimate demand, discover consumer trends, and gather marketing ideas by following your competitors with market intelligence platforms . These platforms show you what types of marketing initiatives are working for others in your market, and based on this data, even show specific tactics you should use to bring in new customers.

To illustrate several of the above categories, consider the humble consumer survey. In today’s internet economy, surveys are everywhere, both free and paid. Surveys can measure a number of these elements, including brand awareness research (“which of the following brands have you heard of?”) and brand association research (“when you think of this topic, which brands come to mind?”).

To some degree, surveys can cover other marketing research types like sales forecasting and demand estimation as well.

You’ve also likely seen marketing effectiveness research campaigns in progress. Have you ever gotten a survey-style ad on YouTube or Facebook asking which brands you recall seeing an advertisement for? If so, you’ve seen a marketing effectiveness campaign in the wild.

Create a Market Research Report Using DemandJump

If you want to do market research without some of the nitty gritty work, use DemandJump. We offer insight reports that tell you what your target audience cares about and what they’re asking about. From there, we will give you a list of keywords and questions to use in your content. These keywords will help you increase your chances of landing a page-one spot on Google. Do that, and your prospective customers are more likely to find your content and visit your webpage. Save time by using our platform. If you have questions or could use help implementing a marketing strategy, get a demo to see how DemandJump can help your business.

Please Share:

Consumer Insights • Market Intelligence

Featured Articles

• Attribution Tracking (13)
• Channel Optimization (11)
• Consumer Insights (68)
• Content Marketing (251)
• Data Science (8)
• Digital Marketing (6)
• Digital Transformation (26)
• Enterprise (10)
• Lead Generation (14)
• Market Intelligence (8)
• Marketing Analytics (39)
• Marketing Attribution (57)
• Marketing Management (153)
• Marketing Operations (86)
• Organic Search (222)
• Paid Search (52)
• Pillar-Based Marketing (63)
• Programmatic Advertising (9)
• SaaS Content (14)
• SaaS Marketing (29)
• Search Marketing (111)
• SEO Keyword Research (28)
• SEO Pillar (18)
• SEO Strategy (46)
• Website Content (12)

Get Your Free Pillar Strategy Preview!

Marketing Research: Types, Process, Models

Let’s learn about Marketing Research, its types, processes, steps, and models.

Meaning of Marketing Research

Marketing research specifies the information, manages and implements the data collection process, analyzes the results, and communicates the findings and implications. To offset unpredictable consumer behavior, companies invest in marketing research.

Increased customer focus, resource productivity demands, and domestic and international competition have prompted an increased emphasis on marketing research.

Managers cannot always wait for information to arrive in bits and pieces from marketing departments. They often require formal studies of specific situations. This official study is called marketing research, whether performed internally or externally.

As stated earlier, marketing research is generally considered part of an MIS.

Marketing research is the systematic and scientifically unbiased data collection and analysis, preparing information relevant to a particular problem or opportunity.

It may also be defined as the systematic collection of information for decision-making. A firm gets and tests ideas through marketing research.

You should know that marketing research is not a part of the marketing mix but rather an aid to management in making decisions about the company’s marketing mix and the target market.

It is a process, not an institution; as such, it is a part of virtually all aspects of the research process, from data collection to information transmission .

Marketing research processes are almost always used to collect data for recurring and unique decision-making.

For data evaluation, research methods are commonly used to determine the error factors in collected data when certain sampling techniques ( e.g., purposive samples) are used.

Similarly, data transformation occurs mostly through statistical testing methods normally used in marketing research.

We first define and discuss what marketing research refers to.

Marketing Research Definition

Marketing research is the systematic and objective identification, collection, analysis, and dissemination of information about issues relating to marketing products and services for the sole purpose of assisting management in decision-making related to the identification and solution of problems and opportunities in marketing.

Marketing research aims to identify and assess how changing elements of the marketing mix impact customer behavior.

The term is commonly interchanged with market research; however, expert practitioners sometimes draw a distinction.

Market research is concerned specifically with markets, while marketing research is concerned with marketing processes.

Marketing research is partitioned into two sets of categorical pairs:

• Consumer marketing research
• Business-to-business (B2B) marketing research

Consumer Marketing Research

Consumer marketing research is a form of applied sociology that concentrates on understanding consumers’ preferences, attitudes, and behaviors in a market-based economy. It aims to understand the effects and relative success of marketing campaigns.

Arthur Nielsen pioneered consumer marketing research as a statistical science by founding the AC Nielsen Company in 1923.

Marketing managers make numerous strategic and tactical decisions in identifying and satisfying customer needs.

They make decisions about potential opportunities, target market selection , market segmentation, planning and implementing marketing programs, marketing performance, and control.

Traditionally, marketing researchers provided relevant information, and the managers made marketing decisions.

However, the roles are changing, marketing researchers are becoming more involved in decision-making, and marketing managers are becoming more involved with research.

DECIDE Model in Marketing Research

The role of marketing research in managerial decision-making is explained further using the framework of what is known as the DECIDE model . The structure of the model is as follows:

• D: Define the marketing problem;
• E: Enumerate the decision factors;
• C: Collect relevant information;
• I: Identify the best alternative;
• D: Develop (and implement) a marketing plan;
• E: Evaluate the decision and the decision-making process.

The DECIDE model conceptualizes managerial decision-making as a set of six steps. The decision process begins by defining the problem, opportunity, objectives, and constraints.

Next, the possible decision factors that make up the alternative courses of action (controllable factors) and uncertainties (uncontrollable factors) are enumerated.

Then, relevant information on the alternatives and possible outcomes is collected. The next step is to select the best option based on chosen criteria or measures of success.

Then a detailed plan to implement the alternative selected is developed and put into effect. Lastly, the outcome of the decision and the decision process itself is evaluated.

A specialized form of marketing research is the so-called advertising research. The sole purpose of conducting this research is to improve the efficacy of advertising.

It may focus on a specific ad or campaign or be directed at a more general understanding of how advertising works or how consumers use the information in advertising.

It can entail various research approaches, including psychological, sociological, economic, and other perspectives.

Another component of marketing research is product research

Product research looks at what products can be produced with available technology and what new product innovations near-future technology can develop .

Business-to-business (B2B) Marketing Research

There are several ways in which a company can obtain marketing research. The company may have a marketing research department.

The person in charge of this department plays a multidimensional role, such as a study director, administrator, company consultant, and advocate who usually reports to the company’s marketing head.

If the company cannot afford to maintain a separate marketing research department or the services of marketing research firms, it has other affordable options.

They are as follows:

• It can engage students and professors to design and carry out marketing research projects in their favor. This is the most cost-effective way of marketing research activities, and even small companies may afford it.
• The other option is to use online information services where business information may be collected at a meager cost. There are many online services available nowadays on the internet. Browsing the internet may help a company get much-needed information quickly and economically.
• Checking out competitors is another option that small companies may exploit nicely. A regular visit to competitors’ business premises may help the company get many important tips that may be utilized later.
• Taking help from Syndicated Service Research firms is another good option. This type of firm gathers different information on trade and consumers and offers them for sale to interested companies. Information may be gathered at a relatively low cost from syndicated research firms.
• Custom marketing research firms may be hired for some specific projects. This type of firm, if given responsibility, designs the study, conducts it, and reports to the clients on findings. But, it is interesting to note that the study results become the property of the appointing firm.
• Specialty-line marketing research firms may also be hired to get some specialized research services. One of the example of such firms is a field interviewing service firm. This type of firm only provides field interviewers.

Types of Marketing Research

All marketing research activities are not the same and are different in many respects. They may differ in objectives, research design, covered area, depth, data analysis method , presentation, etc.

Research activities may be classified as exploratory, aimed at a specific problem, or used to provide routine feedback. Now let us look at each of them in the following section.

Exploratory Research

Exploratory research is conducted when the problem is generally known, but its nature and causes are not or partially known.

For example, if a company experiences no change in sales even after aggressive promotion, it may conduct exploratory research in this situation.

Because the problem is known here, but its nature and causes are unidentified. What is the problem here?

The problem is sales have not increased despite aggressive sales promotion activities .

Specific Research

This is another type of research. When a problem has been defined, a different type of information input is needed to enable management to make decisions concerning alternative ways of solving the problem.

Specific questions that might be posed include:

• What changes should be made in the marketing mix ?
• Is the product positioned properly?

Questions such as these lead to specific research. Specific research generally involves larger samples and is more costly than exploratory research.

While exploratory research aims to suggest hypotheses, specific research enables management to accept or reject hypotheses with a predetermined confidence level.

Routine Feedback

It attempts to continuously monitor certain development variables such as sales, market share, or consumer sentiment.

Firms with well-operating marketing information systems would receive such information through the marketing intelligence subsystem . Firms without such sophisticated means of conducting routine feedback research have two options.

The first is to utilize the marketing research department to gather and assess routine feedback. Companies without the necessary internal resources may avail themselves of commercial services offered by the different outside research organizations.

What is the primary purpose of marketing research?

Marketing research is the systematic and objective identification, collection, analysis, and dissemination of information about issues relating to marketing products and services to assist management in decision-making related to problems and opportunities in marketing.

How is marketing research different from market research?

Market research is specifically concerned with markets, while marketing research is concerned with marketing processes.

What are the two main categories of marketing research?

The two main categories of marketing research are Consumer marketing research and Business-to-business (B2B) marketing research.

What is the difference between secondary and primary data in research?

Secondary data are data that have already been collected for some other purpose, while primary data are collected by the researcher from the source specifically for the particular purpose of the study.

7 Steps of Marketing Research Process

Most marketing managers delegate the detailed design and implementation of research projects to specialists either within or outside their organizations.

The principal reason for such delegation is that most marketing managers do not have the time or the expertise to engage in market research activities. They must, to a greater or lesser extent, depend on the efforts of others.

Therefore, it is most important that managers know enough about the research process , design, and methods of implementing research to be effective in commissioning research and appraising the quality and cost-effectiveness of its results.

Because marketing research is an element vital in an MIS , it must be conducted systematically and unbiasedly. The information it generates is too important to be haphazardly collected, analyzed, and disseminated.

The methodology can be elaborate and comprehensive, depending on the significance of the problem or opportunity needing study.

Underlying any research study, then, is the need to obtain the best information possible, given environmental and company limitations (e.g., time and money).

But the more scientifically based, the more expensive and time-consuming the marketing research process will be.

Although there is always a risk of collecting and processing useless data, the seven-step research process described below and in the following exhibit will minimize these risks:

• Determine the needed information.
• Conduct a preliminary investigation.
• Weigh the costs and benefits of formal research.
• The research design-how data will be collected.
• Develop the questionnaire or other data collection forms.
• Conduct a formal study.
• Analyze the data and report the results.

Step-1: Determining the Needed Information/Problem Definition

The best research on the wrong study is as useless as conducting the worst research on the right study. If we fail to do a thorough job at this stage, no sophisticated research will save us.

Often, the rush for answers leads to research based on vaguely defined objectives and unspecified information needs. When this happens, decision-makers typically receive only part of the information they actually must have. The research tends to take longer and costs more to collect than is necessary.

The process begins with clearly defined objectives.

• What is the research supposed to accomplish?
• Why is a study going to be made?

Although research studies are conducted for various reasons, the most common ones determine if a problem or opportunity exists or obtain information pertinent to a problem or opportunity.

Whatever the reason, there must be a purpose involved – research is too costly to conduct for idle curiosity. When objectives are clearly defined, specific informational needs can be determined.

Step-2: Conduct a Preliminary Investigation

A preliminary investigation is necessary before any formal data collection is actually undertaken. This investigation tends to be informal, relatively inexpensive, and beneficial for three reasons.

First, the activities in step two define the objectives of the study and the informational needs.

Second, a preliminary investigation sometimes provides the decision-maker with enough information, making further study necessary.

Third, preliminary investigations help familiarize the researchers with the issues involved.

Researchers often are not experts in the fields they study, and they need to develop a feel for the problems or opportunities if they are to prepare and conduct a useful study.

Whatever the reasons, researchers frequently make preliminary investigations, using various sources to obtain the data they need.

The most likely sources used in this particular collection process are secondary data sources, interviews with people inside the firm, and observations of, or interviews with, people outside the firm.

Sources of data

Public institutions and private agencies collect a tremendous amount of data that can frequently prove useful to a researcher. Data that have already been collected for some other purpose are known as secondary data.

That which is collected by the researcher from the source for the particular purpose of the study is called primary data. Quite obviously, secondary data are usually easier, quicker, and cheaper to obtain than primary data.

Unfortunately, secondary data are not always readily available and desirable. Data may be free or for sale, handily indexed and in a useable form, or buried within volumes of other extraneous data.

The accuracy of secondary data frequently cannot be assessed. Information on how they were collected might not be available, so the researcher will never really know if they were obtained systematically and unbiasedly.

Despite these problems, secondary data are still generally preferred because of time, trouble, and cost savings. Among the more important and useful sources of secondary data are:

Internal Company Records

The company’s own records are one of the best sources. Data on sales volume, market shares, competitive tactics, etc., are nearly always maintained.

Government Documents

Certainly, the largest single source of secondary data is the government.

Marketing Research Firms

Several private businesses collect and analyze market data and sell them to other firms. Also, several firms known for their public opinion surveys can provide specialized types of market data.

Trade and Professional Associations

Local and national associations frequently collect and publish data about their particular trades and professions. Since these associations so closely match their industries, they are usually good sources of information.

Advertising Agencies and Media Firms

Advertising agencies, television stations, and large newspapers and radio stations often collect data on the market areas they serve. Researchers may take help from such data in the course of their research.

University Research Centers

Many of the larger universities have developed research bureaus providing published data useful to marketing researchers.

Published Sources

Various business and trade publications are accessible, inexpensive, and usually very timely.

The primary data can be obtained mainly from two sources. Now we shall mention these two sources/ways of collecting primary data:

Interviews with People Inside the Firm

Marketing researchers frequently turn to knowledgeable people within the firm during a preliminary investigation. Salespeople and sales managers, brand managers, senior marketing executives, and other top marketing and nonmarketing personnel have considerable experience and vast amounts of expertise.

Interviews with People Outside the Firm

Researchers prefer not to go outside the firm to conduct interviews unless they find it necessary. This process is more time-consuming and expensive, but these interviews can alert customers and competitors to problems and opportunities within the firm.

Despite these drawbacks, present and potential customers, suppliers, and even competitors undoubtedly can provide valuable data for the preliminary investigation. The most frequently used methods to collect these data are informal interviews and observation.

Informal interviews are more popular because they are simpler. They are used like interviews conducted with people inside the firm to obtain various people’s attitudes and opinions. The other method, observation, will be discussed later in this lesson.

Step-3: Weigh the Costs and Benefits of Formal Research

Very few issues are destined to be the subject of formal data collection. The researcher must determine whether further research is necessary or justified.

Step two may yield enough information for the executive to make the decisions without more formal research.

When enough information is not available, the researcher must determine whether the added study’s benefits would justify the costs.

A formal study’s costs must be determined, including data collection, data analysis , data interpretation, and report preparation and presentation. If the researcher believes that decision-makers could use additional information, the value of better information must be estimated.

Admittedly, the process of weighing the costs and benefits is somewhat subjective. It depends heavily on the estimates of the executive and researcher.

Step-4: Develop the Research Design

Once it has been decided that a formal research study is needed, detailed plans can be developed.

Among the most important questions are the following;

• How will the data be collected?
• How will respondents be selected? How many respondents will data be collected from?

Answers to these questions form the research design – the formal plans for the conduct of the study.

How will data be collected?

The initial decision in the development of a research design is the choice of a data collection method . Researchers usually use the survey, observational, or experimental method. Each approach has unique strengths and weaknesses.

Survey Method

Here researcher gathers data from only a portion of all the people it would be appropriate to collect data from. Those included in the survey are known as the sample, and the entire group is called the population.

Three specific techniques are used to collect data – personal, telephone, and mail interviews. Personal interviews involve a direct interface between the researcher and the interviewee or respondent.

Telephone interviews are another technique providing direct interaction between the researcher and the respondent, although telephone contact is only vocal.

Although rapport is harder to build over the telephone, it is still better than a mail survey. It also tends to be fairly inexpensive to administer since no travel is involved, and even long-distance calls are relatively cheap compared to personal interviews .

Finally, the telephone survey has the special advantage of speed, making it most appropriate when short.

Mail surveys are also popular in business research . Researchers send respondents printed questionnaires to complete and return within a specified period of time.

This technique is very efficient when respondents are dispersed geographically, as in a national survey.

Observation Method

This method allows the researcher to watch the actions (or listen to the words) of people or events to obtain the desired data. Normally, this is done within the people’s own environment without their knowledge.

Trained observers are needed here to ensure that the data is collected accurately and that people’s actions are properly interpreted. Additionally, the events they monitor have to occur with sufficient frequency to make this method feasible.

Finally, there are some ethical considerations for monitoring people without their knowledge or consent.

Experimental Method

Historically, this method has been used mostly in the natural sciences and not in business. With this method, the researcher tries to determine causes and effect relationships. By controlling some variables and varying others, the results can be measured and relationships identified.

Sample Size Determination

Deciding on sample size is one of the more important issues in the research design.

Although a census – interviewing all population members – is always preferable from an accurate viewpoint, it is usually not feasible. The costs involved and the difficulty in reaching everybody are just too great. Executives and researchers must trade accuracy for cost savings.

Most nonresearchers mistakenly believe that the sample size depends on the size of the sample population. Actually, the main determinant of sample size is how the sample population varies on the issues under study. The more they vary, the greater the sample size needed to obtain accurate data.

There are several formulas researchers use to determine sample size. One of the simplest is:

Sample Selection

Once the sample size has been determined, the researcher can plan for the sample selection.

This is an especially important element in the research design since the people selected might significantly impact the research results. The researcher’s objective is to make the sample just like the sample population in terms of its mean, median, and mode.

However, it is tough to obtain a sample that is a perfect miniature of the sample population.

The researcher has to select a sample that is as close as possible, given time and cost limitations. The researcher must decide between probability or nonprobability sampling plans as a method in selecting the sample.

Probability Samples

In a probability sampling plan , chance determines whether an individual member of the population is included or excluded from the sample.

The basic probability sampling plan is known as the simple random sample . Here, each sample population member has a known and equal chance of being included in the sample.

This plan is called simple, but it is not always so.

In fact, researchers frequently find it very difficult or expensive to obtain a full list of the population from where the sample is drawn. To reduce some of the problems associated with a simple random sample , an area cluster sample is often used, where a population is grouped into smaller units (clusters).

Then, some of those units are selected in a purely random manner. Finally, some of the members of the selected units are also chosen in a purely random fashion.

Although both the simple random and area cluster sampling plans are commonly used, neither can assure the researcher that the sample selected will represent the population.

To maximize the likelihood of obtaining a representative sample, a stratified sampling plan should be used.

In a stratified sampling plan, the population is grouped based on characteristics relevant to the study. Based on the size of each group, specified numbers will be randomly selected from each.

Nonprobability Samples

Although probability samples can be more exact because they eliminate interviewer bias in selecting respondents, they frequently are either too costly or impossible to use.

In those instances, researchers turn to nonprobability sampling plans, where they or others select the final sample instead of it being done on a random-chance basis.

The easiest nonprobability sampling plan for a researcher to use is a convenience sample. The researcher may choose people closest to each other or a group gathered in one place. No consideration is given to whether the sample group reflects the entire sample population.

To refine this method, a researcher will sometimes use a judgment sample, choosing respondents who are thought to match the population.

The most sophisticated nonprobability plan is the quota sample, similar to the stratified sample. The researcher identifies the population’s relevant characteristics and tries to select a roughly proportional sample.

If, for example, it is known that 51 percent of the population are men, the researcher would make sure that 51 percent of the sample selected are men.

Step-5: Develop the Questionnaire or Other Data Form

Although not all marketing research involves surveys, much of it does. Accordingly, the process of survey research will be described here. Developing a good data collection instrument or questionnaire is one of the more difficult tasks.

There are many different types of questionnaires . Initially, the researcher must decide whether to use one that is structured or unstructured.

If a personal or telephone interview is used, the most common is the structured questionnaire, where every question is worded and sequenced, and the interviewer does not depart from it at all. No other questions can be asked, nor different sequences be used.

An unstructured questionnaire contains a limited number of questions allowing the interviewer to vary the wording after the sequence or probe for more data based on the respondent’s answers.

The advantage is that the additional questions may obtain some valuable data.

Now we shall present some of the important issues in this regard;

Question Design

Each question must be carefully prepared, whether it is in a structured or unstructured questionnaire.

Most importantly, questions must be appropriately formed and worded for the specific data being sought. The researcher can use open-ended, dichotomous choice, or multiple-choice questions.

Open-ended questions allow the respondent to answer in their own words so that exact data can be collected. Dichotomous choice questions limit respondents to two choices – yes or no, agree or disagree, etc.

Multiple-choice questions force respondents to select one of several pre-established answers.

Question Sequencing

A questionnaire is not simply an assortment of questions that happened to be grouped. If they are improperly ordered, respondents may not answer any of the questions or not answer them accurately.

The questions are interrelated but must be sequenced logically to flow together, assisting the respondent in answering correctly and truthfully.

In general, questions should be ordered in the following manner :

• from easy to difficult
• from general to specific
• from insensitive to sensitive (or confidential)
• in groups by topical area
• with demographic questions toward the end

Questionnaire Design

A questionnaire consists of four parts: the introduction, the set of instructions to the interviewer and respondent, the set of questions, and the closing.

The introduction is especially important because it helps the interviewer gain rapport with the respondent. It also gives the respondent some general information on what the study is about and why it is being conducted.

Inexperienced researchers often ignore instructions . Interviewers and respondents need to know how the interview will proceed and how responses are recorded on the questionnaire.

The questions were discussed earlier, but a courteous closing is called for in deference to the respondent’s cooperation after the questions.

The physical layout is a final consideration in the questionnaire design. Proper use of white space, quality printing, and paper are all important.

Location and spaces for responses to the questions are also a concern and should be arranged to simplify transferring the data to punch cards or tape.

Step-6: Conduct the Formal Study

The formal study is a three-phase process.

• First, the questionnaire must be pre-tested to ensure that it is defect-free.
• Second, trained interviewers are needed to collect the data properly.
• Finally, the formal study can be conducted, but only after the first two phases have been completed.

Even the most experienced researcher pretests the questionnaire before using it in a formal study.

Omitting an important question, wording a question ambiguously, or making some other mistake is very easy. As a safeguard, the questionnaire is tested on a relatively small group of people.

When the questionnaire has been finalized, the interviewers – if they are using a personal or telephone survey – must be familiarized with the questionnaire and the overall study.

Interviewers need to know the type of people they will meet and the questionnaire they will use.

Finally, the beginning and end dates for the study must be established and adhered to.

Step-7: Analyze the Data and Report the Results

Once the data has been collected, the researcher can begin making an analysis. For relatively large studies, the data will be transferred from the questionnaires directly into a computer or recorded on punch cards or tape.

With small studies, it is common for the data to be tallied by hand, although this method is becoming less frequent.

The particular analysis conducted on the data depends on the study’s objectives.

The analysis will most often begin with a simple tabulation of the mean, median, mode, and frequencies. Although this is certainly the least sophisticated step, it frequently provides valuable information.

If a probability sampling plan has been used, further analysis through some of the higher-level statistical tests can be conducted, such as regression analysis, chi-square, correlation analysis, and analysis of variance.

Most of the quantitative analyses have been computerized to complete the actual computations quickly and easily.

Before the information obtained from the data analysis is sent to an executive, it is usually translated into a more useful form for decision­making purposes. The value of the entire project depends on how well the executive understands and uses the results.

Reports are usually prepared to describe the purpose, methodology, limitations, analysis, and study findings. Many executives demand the full report and an “Executive Summary” capsulizing the study in one or two pages.

Final Words

From time to time, marketers may be required to undertake marketing research to collect information on the market.

Your email address will not be published. Required fields are marked *

• Join the AMA
• Find learning by topic
• Free learning resources for members
• Certification
• Training for teams
• Why learn with the AMA?

Marketing News

• Academic Journals
• Guides & eBooks
• Marketing Job Board
• Academic Job Board
• AMA Foundation
• Diversity, Equity and Inclusion
• Collegiate Resources
• Awards and Scholarships
• Sponsorship Opportunities
• Strategic Partnerships

We noticed that you are using Internet Explorer 11 or older that is not support any longer. Please consider using an alternative such as Microsoft Edge, Chrome, or Firefox.

Definitions of Marketing

What Is Marketing?

The AMA’s definitions of marketing and marketing research are reviewed and reapproved/modified regularly by a panel of five scholars who are active researchers.

Definition of Marketing

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved 2017)

Get Started Growing Your Skills

On-Demand Training

An Overview of Marketing

This course introduces marketing, the marketing mix (the Four Ps), the strategic importance of marketing, and customer values and satisfaction.

Brand Strategy 101

With practice and a dash of curiosity, this course will reveal what’s needed to bring a brand to life using this formula: Brand Commitment + Brand Voice + Design + Implementation = Brand Strategy.

Modern Marketing: Strategy and Execution

The course focuses on providing practical, hands-on advice to entrepreneurs and small-business people, including video segments with analysis and commentary from industry-leading practitioners and subject matter experts.

Definition of Marketing Research

Marketing research is the function that links the consumer, customer, and public to the marketer through information—information used to identify and define opportunities and problems; generate, refine, and evaluate actions; monitor performance; and improve understanding of it as a process. It specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications. (Approved 2017)

Definition of Brand

A brand is a name, term, design, symbol, or any other feature that identifies one seller’s goods or service as distinct from those of other sellers.

ISO brand standards add that a brand “is an intangible asset” that is intended to create “distinctive images and associations in the minds of stakeholders, thereby generating economic benefit/values.”

Read More About Brands

What’s in a Brand Name?

An analysis of what makes some brand names more effective than others.

Does the World Really Need More Brands?

Confronting capitalism and brand purpose in the age of anxiety.

The Mythology of Totemic Brands

Radical new principles of engagement to help you see your brand more clearly.

Inbound vs Outbound Marketing

Inbound Marketing

Inbound is when customers initiate contact with the marketer in response to various methods used to gain their attention. These methods include email, events, content and web design.

Outbound Marketing

In this, the marketer initiates contact with the customer through methods such as TV, radio and digital display advertising . It is often used to influence consumer awareness and preference for a brand. 

Search and Content

Search Engine Optimization

Search engine optimization (SEO) is the process of developing a marketing/technical plan to improve visibility within one or more  search engines . Typically, this consists of two elements.

On a technical side, SEO refers to ensuring that a  website  can be indexed properly by the major search engines and includes the use of the proper keywords, content, code, and links.

On the marketing side, SEO refers to the process of targeting specific keywords where the site should “win” in searches . This can be done by modifying a website to score well in the algorithms search engines use to determine rank, or by purchasing placement with individual keywords. Often, SEO programs are a blend of several elements and strategies.  [2]

Keyword Marketing

Involves placing a message in front of  users  based on the specific  keywords and phrases  they are using to search. [1]

A key advantage of this method is that it gives marketers the ability to reach the right people with the right message at the right time. For many marketers, this method results in the placement of an  ad  when certain keywords are entered.

Note that in  SEO , this term refers to achieving top placement in the search results themselves.

Content Marketing

A technique of creating and distributing  valuable ,  relevant  and consistent content to attract and acquire a clearly defined  audience —with the objective of driving profitable  customer  action.

According to the Association of National Advertisers (ANA), it involves various methods to tell the brand story. More and more marketers are evolving their advertising to content marketing/storytelling to create more stickiness and emotional bonding with the consumer. 

Areas of Marketing

Relationship marketing.

According to the Association of National Advertisers (ANA), relationship marketing refers to strategies and tactics for segmenting consumers to build loyalty.

Relationship marketing  leverages database marketing, behavioral advertising and analytics to target consumers precisely and create loyalty programs. 

Influencer Marketing

This focuses on leveraging individuals who have influence over potential buyers and orienting activities around these individuals to drive a brand message to the larger market.

With this, a brand inspires or compensates influencers (which can include celebrities, content creators, customer advocates, and employees) to get the word out on their behalf.

Viral Marketing

A phenomenon that facilitates and encourages people to pass along an advertising message.

Nicknamed “viral” because the number of people exposed to a message mimics the process of passing a virus or disease from one person to another. [1]

Guerilla Marketing

Describes an unconventional and creative strategy intended to get maximum results from minimal resources.

Green Marke t ing

Refers to the development and promotion of  products  that are presumed to be environmentally safe (i.e., designed to minimize negative effects on the physical environment or to improve its quality).

This term may also be used to describe efforts to produce, promote, package, and reclaim products in a manner that is sensitive or responsive to ecological concerns.

Email Marketing

A common and powerful tool for marketers at all levels. Email marketing has a role in direct, digital, inbound and outbound marketing efforts. It helps marketers with lead generation, brand awareness, relationship building and more.

The 4 Ps of Marketing

A product is defined as a bundle of attributes (features, functions, benefits, and uses) capable of exchange or use, usually a mix of tangible and intangible forms.

A product may be an idea, a physical entity (goods), or a  service , or any combination of the three. It exists for the purpose of exchange in the satisfaction of individual and organizational objectives.

Price is the formal ratio that indicates the quantity of money,  goods , or  services  needed to acquire a given quantity of goods or services.

It is the amount a  customer  must pay to acquire a  product . 

Place (or Distribution)

Distribution refers to the act of carrying products to consumers . It is also used to describe the extent of market coverage for a given product.

In the  4 Ps , distribution is represented by place or placement.

Promotion includes tactics that encourage short-term purchase, influence trial and quantity of purchase, and are very measurable in volume, share and profit.

Examples include  coupons ,  sweepstakes , rebates,  premiums , special packaging, cause-related marketing and  licensing .

About Our Definitions

• Bernard Jaworski, Peter F. Drucker Chair in Management and the Liberal Arts, Claremont Graduate University
• Richard Lutz, J.C. Penney Professor of Marketing, University of Florida
• Greg W. Marshall, Charles Harwood Professor of Marketing and Strategy, Rollins College
• Linda Price, Philip H. Knight Chair and Professor of Marketing, University of Oregon
• Rajan Varadarajan, University Distinguished Professor and Distinguished Professor of Marketing and Ford Chair in Marketing & E-Commerce, Texas A&M University

Marketing Dictionary

The AMA helps support the Marketing Dictionary . Head there if you are looking for more definitions of marketing terms.

Keep Reading

What Is SEO Marketing?

SEO marketing is a subset of digital marketing that involves the optimization of websites and web pages for major search engines like Google. As these search engines became a predominant way of finding just about anything, various practices have emerged to help organizations improve the visibility of their digital assets. The term “search engine optimization […]

Data and Analytics for Marketers

While being a marketer is often considered a creative field, there is magic in the mashup of data and creativity . Data and analytics take the guesswork out of marketing and allow you to focus on what matters – the success of your marketing campaigns. Plus, they help you get more value from your marketing budget, improve customer efficiency, and understand what is working best in your marketing strategy. Even if you don’t consider yourself a data and analytics expert, it is important to have some knowledge in these areas as a marketer in 2022 and beyond. Additionally, as a marketer, it is important to know how to use data and analytics tools to your advantage to demonstrate your success to your clients or to superiors within your company.

How to Create a Digital Marketing Strategy

Most of our consumption of content today exists online. Because of this, companies have had to shift to digital marketing in order to get the word out about their products and services. However, you cannot simply make content for online platforms and hope for the best. You need to build a digital marketing strategy to […]

By continuing to use this site, you accept the use of cookies, pixels and other technology that allows us to understand our users better and offer you tailored content. You can learn more about our privacy policy here

Marketing Research – Meaning, Scope, Objectives & Process

Meaning of marketing research.

Marketing research is a process of analyzing and conducting research about the market to understand market trends. It involves proper collection, analysis and interpretation of information regarding market conditions. Marketing research is mainly conducted to identify changes in preferences and behaviour of customers arising from the change in market mix elements viz. promotion, place, price and product. It may be defined as the mechanism which helps in linking the customers, producers and several other end users to the marketer and help in finding and communicating of all required information.

Scope of Marketing Research

Determines Customer Behaviour

Market research helps the organisation in understanding the behaviour of customers. It performs research and acquires data like age, gender, income, likes, dislikes etc. related to customers. All this data provided to an organisation helps them in developing the right product as to satisfy their wants. Marketing research helps organisations in understanding the needs and wants of customers and thereby accordingly formulates their production policies.

Provide Valuable Data

Effective decision making of any organisation depends entirely on the quality of information available with it. Marketing research supplies all important information about the market to the management team. It keeps organisation aware of market factors like demand, supply, competition, technological changes, consumer behaviour etc. All this information is vital for strategic decision making. Managers frame all their organisation policies in accordance with data supplied by marketing research.

Helps in Sales Forecasting

Marketing research support business activities by forecasting sales using different techniques. Producing and maintaining an optimum level of inventory in the organisation is a challenging task in front of every product manager. Producing goods in accordance with demand helps in reducing risk and raising profit. Over producing and under-producing of goods adversely affects the business. Marketing research forecasts sales using sale force estimate method, sale force method, jury method etc. and supplies data to the organisation. This helps in framing production policies accordingly.

Lower Business Risk

Marketing research plays an important role in reducing business risk and raising the revenue of the business organisation. It helps businesses in carrying on their operations in accordance with market requirements. The business acquires all current data and generalized information about market trends. All decisions are taken in order to focus on the customer’s current demands and thereby producing the right product. This results in avoiding resources of organisation and lowering risk.

Evaluate Market Performance

Market performance has an effective role in developing a good image of the business in the market. Marketing research helps the business in evaluating its performance in the market and taking action accordingly to improve it. It checks the effects of product, price, brand name, packaging etc. on sales volume. Marketing research studies the customer response towards company products in the market and provides all data. It evaluates and helps in choosing best pricing policies, distribution channel and advertising techniques which help in improving the market performance.

Facilitates Introduction of New Products

Marketing research enables the business to examine and introduce their new products in the market. It enables to conduct testing of new products in small or local markets initially and studies consumer reaction towards it. This helps the business in understanding the deficiencies and problem in their product. They can accordingly overcome these issues and develops an efficient marketing mix for their product. All these helps in minimising the risk involved in the launching of a new product. 

Choose Best Promotion Techniques

Selection of proper promotional techniques is a must for increasing the sales of a business. Marketing research helps business in deciding suitable promotional and marketing programmes for their products. It helps the business in understanding the customers’ needs and behaviour.

Accordingly, promotional techniques are designed and implemented which displays the keys wants of customers as the product features. It has an influencing and long-lasting effect on customers and helps in attracting more of them. Marketing research increases the sales of a business by choosing the best promotional measures.

Objectives of Marketing Research

Identify Customer Needs And Expectations

Marketing research helps business in understanding the needs and wants of customers. Proper knowledge of what customer want is necessary to deliver the products as per their expectations. Marketing research involves reaching out to customers and interacting with them to understand their demands. It helps in developing the right product as per customer requirements.

Minimise Marketing Costs

Marketing research process monitors and controls all marketing programmes. It performs a proper analysis and research of the market before formulating various marketing policies. It helps in choosing the efficient means of advertising and distributing the goods to reduce the marketing expenses. Marketing strategies used by competitors are also analysed through this process to design better plans for marketing.

Setting Up Proper Price Policy

Deciding a proper price is a crucial decision for every business organisation. Pricing policy should be such that it should neither adversely affects the customers nor the organisation itself. Market research conduct research about price policies adopted by several other competitors in the market. It collects a considerable amount of information regarding what competitors are charging and also what customers are willing to pay. This all helps in deciding optimum prices for different products.

Finds Target Market And New Opportunities

Identifying potential customers and new opportunities are important for grabbing the market. Marketing research explores the wide and large market and find out the opportunities for new products by recognising the unfulfilled needs of customers.

It finds and gathers collection about new areas where its products can be sold. Different information about people of that area like their taste and preferences, purchasing power, culture and tradition is collected and analysed to target that area.

Recognise Deficiencies In Product

Marketing research helps the companies in identifying the deficiencies in their products. Timely identification and removal of faults from company products is essential to retain its image in the market. Marketing research process involves interacting with customers and takes their valuable feedback and suggestion.

These suggestions and feedback from customer help the customers in improving their product quality. Marketing research also informs of any technological changes in market to business so that accordingly changes can be made timely.

Product Positioning In Market

Positioning of product among targeted customers is an important task. It is the means through which customers are attracted and the market for the product is developed. Marketing research process collects all relevant information about the targeted audience.

This information helps in designing a company offers an image that may attract customers and have a long-lasting effect on their mind. Positioning strategy is designed differently for each product that may attract large customers. These strategies should clearly denote the main features of products.

Process of Marketing Research

Problem identification.

The first and foremost step in the marketing research process. The identification of problems. For which the research is to be conducted. Unless and until the problem is recognized clearly. No clear cut plan can be formed leading to wastage of resources.

Research Plan Formulation

It consists of strategies. That is to be followed, for solving the problem and achieving the required objectives goals. It involves various  data sources . From which data is to be collected. Various research approaches, contacting ways and sampling methods.

Acquiring And Gathering Information

It is one of the important step in this process. Its focus is on a collection of all required information. Using various data sources. So that the result will come true and fair.

Interpretation Of Information

The successful collection of all required information. A systematic and proper study is to be done. To conduct a successful analysis of all collected information. To get details in accordance with the research plan.

Result Presentation

In this step, all the findings of the process are presented to  management  team. For the researcher to take efficient decision-making.

Decision Making

This is the ending of the marketing research process. Once the research results are presented to the management team. They use this research information in their decision-making.

Marketing research plays an important role in studying consumer behaviour. It is very efficient tool for the marketers to understand the trends of the market that mainly consists of information relating to new product launch in the market, trends in consumer demand, pricing strategy of the competitor and available close substitutes of the product.

Marketing research companies easily identify what their customers want which helps in developing products of their use so that competitive advantage over other competitors can be maintained in the market. It helps in finding out the target market and interacts directly with potential customers to get valuable feedback and suggestion. These all information acquired through this process enables in the smooth functioning of the marketing process.

Related posts:

• Nature and Importance of Consumer Behaviour
• Characteristics of Organisational Behaviour
• Functions of Marketing Information System
• Nature and Scope of Marketing Management
• Meaning & Process of Customer Relationship Management
• 9 Applications of Marketing Research

Add CommerceMates to your Homescreen!

Your Article Library

Marketing research: meaning, definition and objectives– explained.

ADVERTISEMENTS:

Marketing Research: Meaning, Definition and Objectives– Explained!

It is very important to understand at the outset that the, modern concept of marketing revolves around the customer. Satisfaction of customer is the main aim of marketing. For achieving this goal, marketing research is undertaken.

In fact, marketing management is nothing but marketing research. With the expansion of business, marketing management becomes complex. It has to rely heavily on marketing research for solving problems in the field of marketing.

Various definitions of marketing research are given below:

“The systematic gathering, recording and analysis of data about problems relating to the marketing of goods and services” —The American Marketing Association.

“The systematic objective and exhaustive research for and study of the facts relevant to any problem in the field of marketing.” —Richard Crisp

“Marketing research is the careful and objective study of product design, markets, and such transfer activities as physical distribution and warehousing, advertising and sales management.” —Clark and Clark

“Marketing research is the inclusive term which embraces all research activities carried on for the management of marketing work, the gathering, recording and analysing of all facts about problems relating to the transfer and sale of goods and services from producer to consumer.” —Harry Hapner

From the above definitions, it is clear that marketing research is concerned with tackling the problems emerging from the beginning to the final stage of marketing process.

The origin and development of marketing research was started in England. In 1911, Prof. Arthur Bowie used the method of random sampling and published a paper entitled “Working Class Households.” Afterwards, it was developed by a German Prof. Whilhelm Vershofen, who is known as the father of market research.

Marketing research techniques and methods are being increasingly adopted by all the countries of the world whether developed, developing or underdeveloped. In America, marketing research is conducted by many companies on a very high scale.

Marketing Research V/S Market Research:

Marketing research is a broader term including market research. Marketing research is concerned with all the major functions of marketing. Market research is primarily concerned with knowing the capacity of the market to absorb a particular product. Marketing research is not only concerned with the jurisdiction of the market but also covers nature of the market, product analysis, sales analysis, time, place and media of advertising, personal selling and marketing intermediaries and their relationships etc.

Marketing Research:

Marketing research serves the purpose of ‘intelligence wing of the marketing management. Its scope is very broad as compared to market- research. It is concerned with collection of market information systematically and impartially, analysis and evaluation of relevant data and use such data for the benefit of the organisation.

It is a careful and objective study of various areas of marketing activities. What, when, where and how to sell the end product and the services are four questions to which the marketing research wing provides an answer.

Thus, market research and marketing research are different from each other. Market research is a narrow concept whereas marketing research is a broad one and its scope is much wider.

It includes nature of the market, product analysis, sales analysis, time, place and media of advertising, personal selling, pricing, sales organisation, packaging, brand names, etc.

Objectives of Marketing Research:

Marketing research is undertaken for attaining the following objectives:

(1) To Provide Basis For Proper Planning:

Marketing and sales forecast research provides sound basis for the formulation of all marketing plans, policies, programmes and procedures.

(2) To Reduce Marketing Costs:

Marketing research provides ways and means to reduce marketing costs like selling, advertisement and distribution etc.

(3) To Find Out New Markets for The Product:

Marketing research aims at exploring new markets for the product and maintaining the existing ones.

(4) To Determine Proper Price Policy:

Marketing research is considered helpful in the formulation of proper price policy with regard to the products.

(5) To Study in Detail Likes and Dislikes of the Consumers:

Marketing research tries to find out what the consumers, (the men and women who constitute the market) think and want. It keeps us in touch with the consumers, minds and to study their likes and dislikes.

(6) To Know The Market Competition:

Marketing research also aims at knowing the quantum of competition prevalent in the market about the product in question. The company may need reliable information about competitor’s moves and strategies which are of immense significance for further planning.

(7) To Study The External Forces and Their Impact:

Marketing research provides valuable information by studying the impact of external forces on the organisation. External forces may include conditions developing in foreign markets, govt, policies and regulations, consumer incomes and spending habits, new products entering in the market and their impact on the company’s products.

Prof. Gilies has rightly pointed out that, “The basic objective of marketing research is to supply management with information which will lead to a fuller understanding of the distribution habits and attitudes of present and potential buyers and users, and their reactions to products, packing, selling and advertising methods”.

Related Articles:

• Marketing Management: Meaning and Importance of Marketing Management – Explained!
• Marketing Research: Meaning, Elements, Areas and Objectives

Marketing Research

No comments yet.

Leave a reply click here to cancel reply..

You must be logged in to post a comment.

• To save this word, you'll need to log in. Log In

marketing research

Definition of marketing research

Examples of marketing research in a sentence.

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'marketing research.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

1915, in the meaning defined above

Dictionary Entries Near marketing research

marketing ploy

marketization

Cite this Entry

“Marketing research.” Merriam-Webster.com Dictionary , Merriam-Webster, https://www.merriam-webster.com/dictionary/marketing%20research. Accessed 3 May. 2024.

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

Can you solve 4 words at once?

Word of the day.

See Definitions and Examples »

Get Word of the Day daily email!

Popular in Grammar & Usage

What’s the difference between ‘hillbilly’ and ‘redneck’, more commonly misspelled words, commonly misspelled words, how to use em dashes (—), en dashes (–) , and hyphens (-), absent letters that are heard anyway, popular in wordplay, 12 star wars words, the words of the week - may 3, 9 superb owl words, 10 words for lesser-known games and sports, your favorite band is in the dictionary, games & quizzes.

• Accountancy
• Business Studies
• Commercial Law
• Organisational Behaviour
• Human Resource Management
• Entrepreneurship

Marketing Research: Meaning, Scope and Uses

• Sports Marketing : Meaning, Types and Strategies
• Marketing Ethics : Meaning, Roles, Types and Principles
• 7 Stages in Marketing Research Process
• Marketing Plan : Meaning, Types, Steps and Examples
• International Marketing Research | Meaning, Significance and Process
• Retail Marketing : Meaning, Importance, Types and Strategies
• Demarketing : Meaning, Types, Strategies and Examples
• Tourism Marketing: Meaning, Importance, Types and Strategies
• Methods of Marketing Research
• Field Marketing : Meaning, Importance, Types and Strategy
• Service Marketing - Types and Marketing Strategies for Service Firms
• Meme Marketing : Meaning, Strategy, Uses, Advantages and Disadvantages
• Co-Branding: Meaning, Types, Types and Strategies
• Ambush Marketing : Meaning, Types and Examples
• 4 Ps of Marketing and How to Use Them ?
• 5 Steps of Marketing Process
• User Research in Product Management
• Relationship Marketing : Meaning, Importance, Strategies and Examples
• Horizontal Marketing System: Meaning, Types and Advantages
• Video Marketing : Meaning, Importance, Working and Types
• Slogan : Meaning, Purpose and Types
• Flywheel Marketing: Meaning, Need, Model and Examples
• Technical Marketing: Meaning, Importance and Elements
• Marketing Strategy: Meaning, Steps to Create and Components
• Direct Marketing: Meaning, Working, Types and Examples
• Mobile Marketing : Meaning, Types, Importance and Examples
• Types of User Research in Product Management
• SEO and Marketing
• Market Research Vs User Research in Product Management

What is Marketing Research?

Marketing Research is defined as a study that consists of multiple techniques used by companies in order to gain more information about their target audience and the current market. Market research helps to gain information regarding current trends, profits, losses, economic and social factors affecting the market, and market strategies used. By utilising the gained information the companies and producers improve the overall quality of their products, their advertisements, and other marketing strategies.

Marketing Research helps companies to know the requirements of their customers and develop strategies that will help them reach out to their customers easily. As the market grows for a particular product, there increases the involvement of parties other than producers and consumers. This decreases the direct gap between both. Therefore the use of marketing research becomes necessary as it helps to get the required information.

Scope of Marketing Research

1. Research on Market: Research on Market studies about current market trends and products. It does a comparison between both the current market and the potential market. It analyses areas such as:

• Size of market
• Analysis of Market Shares
• Selecting the Target Market
• Analysing the need or demand for new products
• Setting sales territories and quotes
• Assessing current market trends and projecting future market trends

2. Research on Advertising: Advertisements are considered one of the major parts of marketing. Higher budgets are used to make effective advertisements. The research on advertising studies areas such as:

• Selection of media that will be used for advertising, such as videos, images, articles, blogs, podcasts, etc.
• Selection of advertising channels
• Studying promotion elements
• Positive and negative effects of advertisement in society and market
• Advertising role at different stages of product life cycle
• Government restrictions on advertising
• Studying competitors’ advertising strategies and practices

3. Research on Pricing: The price of the product is the major aspect considered by consumers while purchasing the product. Therefore proper research is made regarding the pricing. Having relevant pricing is important to attract more customers. The research on Pricing makes an analysis on below points:

• Studying pricing policies
• Studying offers and discounts
• Comparing the quality and price
• Use of various strategies for setting prices
• Pricing strategies on different stages of the product life cycle
• New product and pricing policies

4. Research on Distribution: In today’s Marketing world, distribution plays a vital role in the success of the product. The selection of a proper distribution channel is important. Many distribution channels are being used between producers and consumers. Research on distribution includes the below analysis:

• Studying various distribution channels
• Selecting from direct and indirect distribution channels
• Studying online marketing
• Studying factors and strategies used for distribution
• Study on physical distribution and ancillary services
• Legal issues related to distributions

5. Research on Product: Research on Products involves detailing with the products and services. The research covers all the issues and details that are related to the product. Understanding the use and quality of the product is essential before it is launched in the market. Therefore, research on products is important. It covers the study of below points:

• Characteristics of product
• Uses of product
• Studying other competitors available in market
• Studying about problems of consumers.
• Studying the lifecycle of products, packaging, sale, etc.
• Determining the uses of existing products
• Finding out the need for new product development
• Product life cycle
• Consumer Adoption Study

6. Research on Sales Methods and Policies: Research on Sales Methods and Policies consists of a study that is related to sales of the product. For sales, the distribution of products is important. The strategies used for sales improve the overall business and its profit. This study covers below points:

• Studying sales methods that are currently being used
• Analysis of sales records
• Management of sales force with parameters such as size, control, etc.
• Studying the sales department
• Study of advertisements, incoming customer traffic, etc.
• Study on activity and effectiveness of salesmen

7. Research on Business Environment and Corporate Responsibility: Research on the Business Environment and Corporate Responsibility consists of a study that is related to marketing problems. This study is conducted for big businesses and analyses the data. It helps the business to work on its business strategies and work accordingly. This research involves analysis on:

• Availability of product-related resources
• Long-term and short-term goals of the business
• Social, financial, and cultural factors that affect the business
• Income, economic growth, and Policies for business
• Impacts of Acts and Legal Provisions
• Technological Aspects

Uses of Marketing Research

Marketing research is used by many businesses and applications. Below are some uses of Marketing Research:

1. Analysing the current market and its situation: Marketing research helps a company to analyse the current market scenario. This analysis consists of identifying the current market trends, economic condition, profit and loss, pricing, distribution, etc. This analysis helps to confirm the strategies and methods that are used.

2. Studying the company’s strengths and weaknesses and utilising these strengths to gain advantages in the business: Through marketing research, a business can verify its strengths and weaknesses with the help of a SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis. This helps businesses to work more on their strengths, reduce their weakness and improve accordingly.

3. Continuously diagnosing the threats that can occur in business: Continuously identifying the threats that can occur is an important task for the growth of a business. By analysing the threats that can occur, a business can take all the preventive measures that are needed and prevent them from loss.

4. Identifying the strengths and strategies used by competitors: Marketing research enables companies to gain insights into their competitors’ strengths, weaknesses, and strategies. Understanding the competitive landscape helps businesses position themselves effectively and devise strategies that can exploit competitors’ weaknesses or differentiate from their strengths.

5. Studying market opportunities and utilising them at the right time: Marketing research helps to analyse the available opportunities in the market. It helps to analyse trends, the needs of customers, and their segments.

6. Studying the marketing patterns of customers: It is important to study the purchasing patterns of customers; their habits, choices, motivations, and preferences they use. This analysis helps the company to enhance its products according to the need of customers and change its marketing strategies and techniques.

7. Analysis of other competitors present in the market: Marketing research helps to study other competitors that are present in the market. This analysis helps to improve strategies used by the company in order to play a leading role in the market, change their approaches, use statistics, and then perform accordingly.

8. Studying the overall progress done by the company: Studying the overall progress helps to analyse the profitable strategies and their techniques. By measuring some parameters such as brand awareness, satisfaction of customers, profits, and marketing a business can improve by working according to the study. 

Please Login to comment...

Similar reads.

Improve your Coding Skills with Practice

What kind of Experience do you want to share?

Marketing Research Definition

Everything you need to know about the definitions of marketing research. Like the term marketing, marketing research evokes different images in different people’s minds.

Some quote it with consumer interviews; some think of it as sales forecasting or sales analysis; to others it represents obtaining reactions to new product ideas or models.

Different companies even use different terms. There are about as many definitions of market research as there are active market researches today, but they all have one thing in common; Market Research is the arm of marketing that finds out things and thereby lays the basis for marketing strategy.

It is concerned with the facts of what people buy, when they buy, where they buy. Marketing Research may be defined as the planned and systematic gathering and collection of data and the analysis of information relating to all aspects of marketing and the final consumption of goods or services.

ADVERTISEMENTS:

Marketing research includes the complete analysis of the market. Information regarding the nature, size, organisation profitability of different markets, changes in markets and the various factors (economic, social, and political) affecting those change are studied vigorously.

Learn about the definitions of marketing research defined by some eminent authors like Zaltman, Burger, Richard D. Crisp, Delens, A.H, Green, Tull, Donald Taylor, Hugh Wales, Philip Kotler, W.J. Stanton, David Luck and some famous institutions.

Definitions of Marketing Research : By Zaltman, Burger, Richard D. Crisp, Delens, A.H, Green and Tull and Some Famous Institutions

Definitions of marketing research – by american marketing association, zaltman, burger and encyclopedia britannica.

Marketing research is the application of scientific methods to the solution of marketing problems. It embraces all research activities for systematic, objective and exhaustive search for and the study of marketing problems. The standard official definition of marketing research (MR) given by American Marketing Association is, “the systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services.”

In this definition the first part of the sentence describes ‘research’ and the second part marketing’. Research is the process of gathering recording and analysis of relevant facts about any problem in any human branch. Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer.

Compiling the meaning of both the words we can say MR encompasses systematic analysis of all relevant marketing information and the facts finding approach for better decision-making.

Therefore, MR involves- (a) the analysis of problem as well as data, and (b) improvement of decision-making and control not just have data about marketing problems. Thus, marketing research is the systematic design, collection, analysis and reporting of data and finding relevant to a specific marketing situation facing to company.

Zaltman and Burger describe MR as, “the diagnosis of information needs and the selection of relevant inter-related variable about which valid and valuable information is gathered recorded and analyzed.” It means, this is like a RADAR activity where a company has to remain always alert to find out any new opportunities or to trace out any problem in existing marketing Programme. It is the continuous search for information needs.

Encyclopedia Britannica describes, “MR as the application of the scientific method to the solutions of marketing problems. It studies people as buyers, sellers and consumers, examining their attitudes, preferences, habits and purchasing power. It is also concerned with the channels of distribution, promotion and pricing and with the design of the product and services to be marketed. Although there is hardly a form of commercial activity that does not use marketing research with some frequency, it finds its widest application in manufacturing probably because manufacturing is further from the ultimate consumer than are most service industries, public utilities and wholesale and retail enterprises.”

The very basic purpose of MR is to obtain information which aids in identification and solution of marketing problems. MR is the systematic collection and analysis of pertinent information to assist decision-making. MR is an important component of marketing information system.

It is the process of scientific study in which marketing information are collected and purposeful decisions are taken for better performance. The MR increases the profit of business as well as social goodness. It includes various subsidiary type of researches and it is not restricted to any given specific marketing problem but it applies to any field directly or indirectly related to marketing.

Definitions of Marketing Research – By t he American Marketing Association, Delens, Green and Tull

i. Research that gathers and analyzes information about the moving of good or services from producer to consumer.

ii. Marketing research is the systematic gathering, recording, and analysis of data about issues relating to marketing products and services.

iii. The identification of informational needs, the collection of relevant data, the analysis and interpretation of that data, and the reporting of the findings.

iv. Linking the customer, consumer and public with the marketer through information which is used to identify and define marketing opportunities and problems.

v. The facilitating function of collecting and interpreting data on consumer demands and characteristics so that firms can develop new products and sell existing ones profitably.

vi. The process of collecting, analysing and evaluating information/data about an organization’s customers (market).

Marketing research is defined as the objective and formal process of systematically obtaining, analyzing and interpreting data for actionable decision making in marketing. This definition lays stress on two aspects, namely, objectivity and systematic process in the collection and analysis of data.

In fact, marketing research should not be allowed to be influenced by personal views and considerations. Before undertaking any research study it is essential to delimit the primary objectives of the project and define the methodology of undertaking the project in as much details as possible.

Also, there is an implicit assumption that the ultimate findings should have the actionable quality. That is, the user must be able to utilize the results for marketing decision making purpose.

Otherwise, its utility is considerably undermined. That is to say, any marketing research done on an arbitrary basis (i.e., lack of objectivity) or applying one’s personal- convenience in the data collection and interpretation (i.e., on systematic search) will certainly be of no use.

Marketing research as an integral part of a MIS, should prove a flow of information inputs, mainly from external sources, useful in marketing decisions making. Marketing research is carried on in the effort to learn something reliable about a specific marketing problem encountered by the management.

The value of the results of the marketing research depends upon the skill with which the marketing research programme is framed and put into action. The investment of money and time will all be wasted if marketing research programme is ill designed.

The American Marketing Association has defined marketing research as, “systematic gathering, recording and analyzing data about problem relating to the marketing of goods and ‘services’. In the words of Richard D. Crisp, marketing research is, “the systematic, objective and exhaustive research for and study of the facts relevant to any problem in ‘the field of marketing”.

“Marketing research is the systematic and continuing study and evaluation of all factors bearing on any business operation, which involves the transfer of goods form producer to consumer”. – Delens, A.H

“It is the systematic and objective search for an analysis of information relevant to the identification and solution of any problem in the field of marketing.” – Green and Tull

The Salient Features of Marketing Research:

i. It is a search for data which are relevant to marketing problems.

ii. It is carried out in a systematic and objective manner.

iii. It involves a process of gathering, recording and analysis of data.

None of the definitions is explicit about the managerial purposes of marketing research, except saying that data are required for solving marketing problems.

A better definition of marketing research is, that it is an objective, and systematic collection, recording and analysis of data, relevant to marketing problems of a business in order to develop an appropriate information base for decision making in the marketing area.

Definitions of Marketing Research – By Paul Green, Donald Tull, David Luck, Donald Taylor, Hugh Wales, Philip Kotler and W.J. Stanton

The American Marketing Association defines marketing research as “The function that links the consumer, customer, and public to the marketer through information—information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyses the results, and communicates the findings and their implications.”

The complexities of marketing in the modern world necessitate research to understand the business environment. An organization faces problems related to consumer preferences, product, competition, advertising and sales promotion, etc. Marketing research helps to provide a deeper insight into these issues. It is a systematic and scientific process conducted in an organized way.

Data related to the various aspects of marketing is collected, analyzed, interpreted and recorded in forms of reports and studies. This information is consulted for understanding the market conditions and taking decisions on various matters. Marketing research is very wide in scope; it includes product research, customer research, advertising research, logistics research, etc.

Some Definitions of Marketing Research :

Paul Green and Donald Tull- “Marketing research is the systematic and objective search for, and analysis of, information relevant to the identification and solution of any problem in the field of marketing.”

David Luck, Donald Taylor and Hugh Wales- “Marketing research is the application of scientific methods in the solution of marketing problems.”

Philip Kotler- “Marketing research is a systematic problem analysis, model building and fact finding for the purpose of improved decision-making and control in the marketing of goods and services.”

W.J. Stanton- “Marketing research is the systematic gathering, recording and analysis of data about marketing problems to facilitate decision-making.”

The term ‘market research’ is often confused with ‘marketing research’. Although these terms are often used interchangeably, technically they are different. Market research is a term for describing research into markets: their size, geographical distribution, incomes, and so forth.

On the other hand, marketing research is a wider concept; it also includes market research. The term marketing research is concerned with the entire sphere of marketing; it is the systematic and objective study of the facts relevant to any issue within the scope of marketing.

Definitions of Marketing Research – Explained!

Research is used to investigate the psychological reasons why individuals buy specific types of merchandise, or why they respond to specific advertising appeals, to determine the base of brand choices and product preferences.

Motivation Research is the application of the knowledge and techniques of the social sciences, especially psychology and sociology, to understanding consumer attitudes and behavior – used as a guide in advertising and marketing.

Motivational Research is the systematic analysis of the motives behind consumer decisions, used especially by advertisers and marketers to assess attitudes toward products and services.

It refers to the studies conducted in order to determine the motivations behind consumer purchases. The research is psychologically oriented and attempts to learn why people behave as they do, why they make certain purchases, and why they respond to specific types of advertising appeals.

The resultant information is used by advertisers and advertising agencies to plan new products, develop advertising campaigns and in general, to create more effective advertising

Motivational research attempts to unravel the mystery of consumer behavior as it relates to a specific product or service, so that the marketer better understands the target audience and how to influence that audience.

Motivational research is a type of marketing research that attempts to explain why consumers behave as they do. Motivational research seeks to discover and comprehend what consumers do not fully understand about themselves. Implicitly, motivational research assumes the existence of underlying or unconscious motives that influence consumer behavior.

It attempts to identify forces and influences that consumers may not be aware of (e.g., cultural factors, sociological forces). Typically, these unconscious motives (or beyond-awareness reasons) are intertwined with and complicated by conscious motives, cultural biases, economic variables and fashion trends (broadly defined).

Motivational research attempts to shift through all of these influences and factors to unravel the mystery of consumer behavior as it relates to a specific product or service, so that the marketer better understands the target audience and how to influence that audience.

Motivational research is most valuable when powerful underlying motives are suspected of exerting influence upon consumer behavior. Products and services that relate, or might relate, to attraction of the opposite sex, to personal adornment, to status or self-esteem, to power, to death, to fears, or to social taboos are all likely candidates for motivational research.

For example- why do women tend to increase their expenditures on clothing and personal adornment products as they approach the age of 50 to 55? The reasons relate to the loss of youth’s beauty and the loss of fertility, and to related fears of losing their husband’s love. It is also a time of life when discretionary incomes are rising (the children are leaving the nest).

Other motives are at work as well (women are complicated creatures), but a standard marketing research survey would never reveal these motives, because most women are not really aware of why their interest in expensive adornments increases at this particular point in their lives.

Even benign, or low-involvement, product categories can often benefit from the insights provided by motivational research. Typically, in low-involvement product categories, perception variables and cultural influences are most important.

Our culture is a system of “rules and regulations” that simplify and optimize our existence. Cultural rules govern how we squeeze a tube of toothpaste, how we open packages, how we use a bath towel, who does what work, etc.

Most of us are relatively unaware of these cultural rules. Understanding how these cultural rules influence a particular product can be extremely valuable information for the marketer.

Definitions of Marketing Research – By t he American Marketing Association, Philip Kotler and Parker Holmes

In order to implement the marketing concept, marketers require information about the characteristic, needs wants and desires of their target markets. Thus, the solution to this is research. Research always starts with a question or a problem. Its purpose is to find answers to questions through the application of the scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studied.

Research can be classified into two broad categories:

(i) Basic research, and (ii) Applied research.

(i) Basic Research is sometimes called “fundamental” research, “theoretical” research or “pure” research. It aims at expanding the frontiers of knowledge and does not directly involve pragmatic problems.

(ii) Applied research, on the other hand, proceeds with a certain problem, and it specifies alternative solutions and the possible outcomes of each alternative.

Applied research can be further divided into two categories –

a. Problem-solving research as the name implies, is concerned with a particular issue or a problem and is usually proprietary in character. The latter characteristic indicates that such a research is undertaken within a firm or by an outside consultant on its behalf.

b. Problem-oriented research, on the other hand, is concerned with a class of issues of problems in which several firms may be interested. Research of this type is usually concerned with conceptual aspects but is oriented towards applied problems.

Marketing research has an advisory role in marketing management. It is used to acquire and analyse information and to make recommendations to management as to how marketing problems should be solved. Marketing research is a systematic and objective study of problems pertaining to the marketing of goods and services.

As marketing research tackles problems which seem to have immediate commercial potential, it should be regarded as applied research. We may also say that marketing research is of both types – problem solving and problem oriented.

Marketing research is the application of scientific methods to the study of factors that affect buying decision in a given market and the profitability of business concerned.

The American Marketing Association (AMA) has defined Marketing Research as – “the function which links the consumer, customer, and public to the marketer through information – information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.”

According to Philip Kotler, “Marketing Research is systematic problem analysis, model building and fact finding for the purpose of improved decision making and control in the marketing of goods and services.”

Parker Holmes defines- Marketing Research, may be considered to be the application of scientific methods and procedures in the study of marketing problems, to provide management with actual information upon which to formulate executive decision and policies.

In order to make MR effective, it is important that it should be linked with business strategy and should respond to emerging scenarios in the market place. The research problem must be properly framed, and while collecting and analyzing the data researcher must keep the context in mind. Also, the researcher needs to construct appropriate questions and must have the skill to ask them, elicit responses, and sift through them. Further, MR should be able to give conclusions well in time.

Definitions of Marketing Research – By t he American Marketing Association and Kotler

Marketing research is the systematic and objective process of generating information for use in making marketing decisions. This process includes defining the problem and identifying what information is required to solve the problem, designing the method for collecting information, managing and implementing, the collection of data, analysing the results, and communicating the findings and their implications.

This definition suggests that marketing research is a special effort rather than a haphazard attempt at gathering information. Haphazard or accidental information gathering, such as glancing at a news magazine on an airplane or overhearing a rumour, is not marketing research.

Even if a rumour or a fact casually overheard becomes the foundation of a marketing strategy, it is not a product of marketing research because it was not systematically and objectively gathered and recorded. The term marketing research suggests a specific, serious effort to generate new information. The term research suggests a patient, objective, and accurate search.

There are about as many definitions of market research as there are active market researches today, but they all have one thing in common; Market Research is the arm of marketing that finds out things and thereby lays the basis for marketing strategy. It is concerned with the facts of what people buy, when they buy, where they buy.

The American Marketing Association defines marketing research as – “The systematic gathering, recording and analysis of data about problems relating to marketing of goods and services”.

According to Kotler, Marketing research is the systematic design, collection analysis and reporting of data and findings relevant of a specific marketing situation facing the company. The key word in this definition is ‘systematic’. This is the difference between research and haphazard gathering of findings.

For a study/research to be systematic there must be two qualities in the least. First, it should be orderly so that the measurement have accuracy and there is a fair cross-section. Second, it should be impartial in analysis and interpretation.

We thus arrive at a definition of Marketing Research; “Marketing research is the planning of and systematic gathering, recording, analysis and interpreting data abo it problems (or opportunities) relating to the, marketing of goods and services”. Although marketing managers may perform the research task themselves, they often use the help of specialists known as marketing researchers.

The researcher’s role requires detachment from the question under study. If researchers lack this impersonal quality, they may try to prove something rather than to generate objective data. If bias of any type enters into the investigative process, the value of the findings must be questioned.

Yet this sort of thing can happen relatively easily. For example, a developer who owned a large parcel of land on which she wanted to build a high-priced, high-prestige shopping centre conducted a study to demonstrate to prospective mall occupants that there was an attractive market for such a centre.

By conducting the survey only in elite neighbourhoods, she generated “proof” that area residents wanted a high-prestige shopping centre. Misleading “research” of this kind must be avoided. Unfortunately, business people with no knowledge of proper marketing research methods may inadvertently conduct poorly designed, biased studies or may be sold such work by marketing research firms.

All business people should understand marketing research well enough to avoid these mistakes. Both researcher and manager must understand that research is not intended to answer all questions or eliminate the need for managerial judgment. It does broaden the manager’s viewpoint and offer a way to see a marketing problem from more than one perspective.

The marketer knows how he or she views a particular issue. Marketing research helps the marketer obtain facts and additional perspectives (for example, how the buyer sees the same issue). Further, research is essentially useless unless management actually puts it to work.

It is the manager’s responsibility to study the researcher’s findings and to explain, if necessary, how they might better be presented to marketing executives. It is the researcher’s responsibility to present information in a usable format, such as – a report that includes recommended actions.

Definitions of Marketing Research – By the American Marketing Association , Luck, Wales, Taylor , Wentz and Glasser

The essential purpose of marketing research is to provide information, which will help in the identification of an opportunity or a problem situation, and to assist marketing managers in arriving at the best possible decisions when such situations are encountered.

To understand marketing research, the phrase ‘Marketing’ and ‘Research’ should be understood separately. Marketing is defined as the managerial process by which products are matched with markets and through which the consumer is enabled to use or enjoy the product. It is also related with need, wants and demands, products, value and satisfaction, exchange and transactions.

Research can be defined as logical and systematised application of the fundamentals of science to be general and overall questions of a study and scientific technique, which provide precise tools in finding explanations to misconceived facts of social life.

Hence the above two phrases explain that marketing research is required to solve specific problems, but it is more than that, since now it is considered an indispensable part of marketing information system which has been a continuous aspect of management.

Against this background, one can say that marketing research is research relating to any problem in the area of marketing.

Marketing research is a social science research and is defined by different authors as follows:

“Marketing research is the systematic, objective and exhaustive search for and study of the facts relevant to any probl em in the field of marketing.” – American Marketing Association

“Marketing research is the systematic recording and analysis of data about problems relating to marketing.” – American Marketing Association

Marketing research is “the application of scientific method to the so lution of marketing problems.” – Luck, Wales, Taylor

“Marketing research is the gathering and analysis of information to assist management in making marketing decision. These decisions involve the manipulation of the firm’s pricing, Production, distri bution and product variables.” – Wentz

“Marketing research is the application of scientific methods to the study of the factors that affect the buying decisions in a given market and the profitability of the busi ness concerned.” – Glasser

Marketing research is an integral part of marketing information system. It is both a science and art. It is a science because there is systematic application of the principles of research. It is an art because it tells us how to solve day-to-day and specific problems of management, particularly problems of marketing management.

Related Articles:

• What is the definition of Marketing according to American people
• Brief essay on Marketing (597 Words)
• Marketing: Earlier and Contemporary Approaches to Marketing
• What is the Definition of Operations Research?