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How to Do Market Research: The Complete Guide

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

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

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

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

What is market research?

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

Why is market research important? 

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

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

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

Types of market research 

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

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

1. Qualitative research

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

2. Quantitative research

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

3. Exploratory research

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

4. Descriptive research

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

5. Causal research

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

6. Cross-sectional research

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

7. Longitudinal research

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

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

Primary vs. secondary market research

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

Primary market research 

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

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

Secondary market research 

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

Here are the main characteristics of secondary market research:

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

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

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

Market research methods

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

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

1. Surveys and questionnaires

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

2. Interviews

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

3. Focus groups

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

4. Observational research

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

5. Online research tools

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

6. Experiments

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

7. Content analysis

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

8. Ethnographic research

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

How to do market research

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

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

1. Set clear objectives

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

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

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

2. Identify your target audience

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

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

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

3. Choose your research methods

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

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

4. Use the right market research tools

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

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

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

5. Collect data

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

6. Analyze data

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

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

7. Interpret your findings

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

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

8. Identify opportunities and challenges

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

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

9. Make informed business decisions

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

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

10. Monitor and adapt

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

Online market research sources

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

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

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

Market research examples

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

Example 1: Apple’s iPhone launch

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

Example 2: McDonald’s global expansion

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

Example 3: Organic and sustainable farming

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

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

Market research templates

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

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

Strengthen your business with market research

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

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

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

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What Is Market Research?

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

The Bottom Line

• Marketing Essentials

How to Do Market Research, Types, and Example

Joules Garcia / Investopedia

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

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

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

Key Takeaways

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

Market Research

How market research works.

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

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

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

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

Primary Market Research vs. Secondary Market Research

Market research usually consists of a combination of:

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

Primary Market Research

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

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

Secondary Market Research

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

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

History of Market Research

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

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

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

Types of Market Research

Face-to-face interviews.

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

Market research and surveys were adapted from these early techniques.

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

Focus Groups

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

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

Phone Research

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

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

Survey Research

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

Online Market Research

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

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

How to Conduct Market Research

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

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

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

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

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

Benefits of Market Research

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

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

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

Example of Market Research

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

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

What Are the Main Types of Market Research?

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

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

What Is Online Market Research?

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

What Are Paid Market Research Surveys?

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

What Is a Market Study?

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

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

Britannica Money. “ Market Research .”

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

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Home Market Research

Market Research: What it Is, Methods, Types & Examples

Would you like to know why, how, and when to apply market research? Do you want to discover why your consumers are not buying your products? Are you interested in launching a new product, service, or even a new marketing campaign, but you’re not sure what your consumers want?

LEARN ABOUT: Market research vs marketing research

To answer the questions above, you’ll need help from your consumers. But how will you collect that data? In this case and in many other situations in your business, market research is the way to get all the answers you need.

In this ultimate guide about market research, you’ll find the definition, advantages, types of market research, and some examples that will help you understand this type of research. Don’t forget to download the free ebook available at the end of this guide!

LEARN ABOUT: Perceived Value

Content Index

Three key objectives of market research

Why is market research important.

• Types of Market Research: Methods and Examples

Steps for conducting Market Research

Benefits of an efficient market research, 5 market research tips for businesses, why does every business need market research, free market research ebook, what is market research.

Market research is a technique that is used to collect data on any aspect that you want to know to be later able to interpret it and, in the end, make use of it for correct decision-making.

Another more specific definition could be the following:

Market research is the process by which companies seek to collect data systematically to make better decisions. Still, its true value lies in the way in which all the data obtained is used to achieve a better knowledge of the market consumer.

The process of market research can be done through deploying surveys , interacting with a group of people, also known as a sample , conducting interviews, and other similar processes.  

The primary purpose of conducting market research is to understand or examine the market associated with a particular product or service to decide how the audience will react to a product or service. The information obtained from conducting market research can be used to tailor marketing/ advertising activities or determine consumers’ feature priorities/service requirement (if any).

LEARN ABOUT: Consumer Surveys

Conducting research is one of the best ways of achieving customer satisfaction , reducing customer churn and elevating business. Here are the reasons why market research is important and should be considered in any business:

• Valuable information: It provides information and opportunities about the value of existing and new products, thus, helping businesses plan and strategize accordingly.
• Customer-centric: It helps to determine what the customers need and want. Marketing is customer-centric and understanding the customers and their needs will help businesses design products or services that best suit them. Remember that tracing your customer journey is a great way to gain valuable insights into your customers’ sentiments toward your brand.
• Forecasts: By understanding the needs of customers, businesses can also forecast their production and sales. Market research also helps in determining optimum inventory stock.
• Competitive advantage: To stay ahead of competitors market research is a vital tool to carry out comparative studies. Businesses can devise business strategies that can help them stay ahead of their competitors.

LEARN ABOUT: Data Analytics Projects

Types of Market Research: Market Research Methods and Examples

Whether an organization or business wishes to know the purchase behavior of consumers or the likelihood of consumers paying a certain cost for a product segmentation , market research helps in drawing meaningful conclusions.

LEARN ABOUT: Behavioral Targeting

Depending on the methods and tools required, the following are the types:

1. Primary Market Research (A combination of both Qualitative and Quantitative Research):

Primary market research is a process where organizations or businesses get in touch with the end consumers or employ a third party to carry out relevant studies to collect data. The data collected can be qualitative data (non-numerical data) or quantitative data (numerical or statistical data).

While conducting primary market research, one can gather two types of information: Exploratory and Specific. Exploratory research is open-ended, where a problem is explored by asking open ended questions in a detailed interview format usually with a small group of people, also known as a sample. Here the sample size is restricted to 6-10 members. Specific research, on the other hand, is more pinpointed and is used to solve the problems that are identified by exploratory research.

LEARN ABOUT: Marketing Insight

As mentioned earlier, primary market research is a combination of qualitative market research and quantitative market research. Qualitative market research study involves semi-structured or unstructured data collected through some of the commonly used qualitative research methods like:

Focus groups :

Focus group is one of the commonly used qualitative research methods. Focus group is a small group of people (6-10) who typically respond to online surveys sent to them. The best part about a focus group is the information can be collected remotely, can be done without personally interacting with the group members. However, this is a more expensive method as it is used to collect complex information.

One-to-one interview:

As the name suggests, this method involves personal interaction in the form of an interview, where the researcher asks a series of questions to collect information or data from the respondents. The questions are mostly open-ended questions and are asked to facilitate responses. This method heavily depends on the interviewer’s ability and experience to ask questions that evoke responses.

Ethnographic research :

This type of in-depth research is conducted in the natural settings of the respondents. This method requires the interviewer to adapt himself/herself to the natural environment of the respondents which could be a city or a remote village. Geographical constraints can be a hindering market research factor in conducting this kind of research. Ethnographic research can last from a few days to a few years.

Organizations use qualitative research methods to conduct structured market research by using online surveys , questionnaires , and polls to gain statistical insights to make informed decisions.

LEARN ABOUT: Qualitative Interview

This method was once conducted using pen and paper. This has now evolved to sending structured online surveys to the respondents to gain actionable insights. Researchers use modern and technology-oriented survey platforms to structure and design their survey to evoke maximum responses from respondents.

Through a well-structured mechanism, data is easily collected and reported, and necessary action can be taken with all the information made available firsthand.

Learn more: How to conduct quantitative research

2. Secondary Market Research:

Secondary research uses information that is organized by outside sources like government agencies, media, chambers of commerce etc. This information is published in newspapers, magazines, books, company websites, free government and nongovernment agencies and so on. The secondary source makes use of the following:

• Public sources: Public sources like library are an awesome way of gathering free information. Government libraries usually offer services free of cost and a researcher can document available information.
• Commercial sources: Commercial source although reliable are expensive. Local newspapers, magazines, journal, television media are great commercial sources to collect information.
• Educational Institutions: Although not a very popular source of collecting information, most universities and educational institutions are a rich source of information as many research projects are carried out there than any business sector.

Learn more: Market Research Example with Types and Methods

A market research project may usually have 3 different types of objectives.

• Administrative : Help a company or business development, through proper planning, organization, and both human and material resources control, and thus satisfy all specific needs within the market, at the right time.
• Social : Satisfy customers’ specific needs through a required product or service. The product or service should comply with a customer’s requirements and preferences when consumed.
• Economical : Determine the economical degree of success or failure a company can have while being new to the market, or otherwise introducing new products or services, thus providing certainty to all actions to be implemented.

LEARN ABOUT:  Test Market Demand

Knowing what to do in various situations that arise during the investigation will save the researcher time and reduce research problems . Today’s successful enterprises use powerful market research survey software that helps them conduct comprehensive research under a unified platform, providing actionable insights much faster with fewer problems.

LEARN ABOUT:  Market research industry

Following are the steps to conduct effective market research.

Step #1: Define the Problem

Having a well-defined subject of research will help researchers when they ask questions. These questions should be directed to solve problems and must be adapted to the project. Make sure the questions are written clearly and that the respondents understand them. Researchers can conduct a marketing test with a small group to know if the questions are going to know whether the asked questions are understandable and if they will be enough to gain insightful results.

Research objectives should be written in a precise way and should include a brief description of the information that is needed and the way in which it will obtain it. They should have an answer to this question “why are we doing the research?”

Learn more: Interview Questions

Step #2: Define the Sample

To carry out market research, researchers need a representative sample that can be collected using one of the many sampling techniques . A representative sample is a small number of people that reflect, as accurately as possible, a larger group.

• An organization cannot waste their resources in collecting information from the wrong population. It is important that the population represents characteristics that matter to the researchers and that they need to investigate, are in the chosen sample.
• Take into account that marketers will always be prone to fall into a bias in the sample because there will always be people who do not answer the survey because they are busy, or answer it incompletely, so researchers may not obtain the required data.
• Regarding the size of the sample, the larger it is, the more likely it is to be representative of the population. A larger representative sample gives the researcher greater certainty that the people included are the ones they need, and they can possibly reduce bias. Therefore, if they want to avoid inaccuracy in our surveys, they should have representative and balanced samples.
• Practically all the surveys that are considered in a serious way, are based on a scientific sampling, based on statistical and probability theories.

There are two ways to obtain a representative sample:

• Probability sampling : In probability sampling , the choice of the sample will be made at random, which guarantees that each member of the population will have the same probability of selection bias and inclusion in the sample group. Researchers should ensure that they have updated information on the population from which they will draw the sample and survey the majority to establish representativeness.
• Non-probability sampling : In a non-probability sampling , different types of people are seeking to obtain a more balanced representative sample. Knowing the demographic characteristics of our group will undoubtedly help to limit the profile of the desired sample and define the variables that interest the researchers, such as gender, age, place of residence, etc. By knowing these criteria, before obtaining the information, researchers can have the control to create a representative sample that is efficient for us.

When a sample is not representative, there can be a margin of error . If researchers want to have a representative sample of 100 employees, they should choose a similar number of men and women.

The sample size is very important, but it does not guarantee accuracy. More than size, representativeness is related to the sampling frame , that is, to the list from which people are selected, for example, part of a survey.

LEARN ABOUT: Behavioral Research If researchers want to continue expanding their knowledge on how to determine the size of the sample consult our guide on sampling here.

Step #3: Carry out data collection

First, a data collection instrument should be developed. The fact that they do not answer a survey, or answer it incompletely will cause errors in research. The correct collection of data will prevent this.

Step #4: Analyze the results

Each of the points of the market research process is linked to one another. If all the above is executed well, but there is no accurate analysis of the results, then the decisions made consequently will not be appropriate. In-depth analysis conducted without leaving loose ends will be effective in gaining solutions. Data analysis will be captured in a report, which should also be written clearly so that effective decisions can be made on that basis.

Analyzing and interpreting the results is to look for a wider meaning to the obtained data. All the previous phases have been developed to arrive at this moment. How can researchers measure the obtained results? The only quantitative data that will be obtained is age, sex, profession, and number of interviewees because the rest are emotions and experiences that have been transmitted to us by the interlocutors. For this, there is a tool called empathy map that forces us to put ourselves in the place of our clientele with the aim of being able to identify, really, the characteristics that will allow us to make a better adjustment between our products or services and their needs or interests. When the research has been carefully planned, the hypotheses have been adequately defined and the indicated collection method has been used, the interpretation is usually carried out easily and successfully. What follows after conducting market research?

Learn more: Types of Interviews

Step #5: Make the Research Report

When presenting the results, researchers should focus on: what do they want to achieve using this research report and while answering this question they should not assume that the structure of the survey is the best way to do the analysis. One of the big mistakes that many researchers make is that they present the reports in the same order of their questions and do not see the potential of storytelling.

To make good reports, the best analysts give the following advice: follow the inverted pyramid style to present the results, answering at the beginning the essential questions of the business that caused the investigation. Start with the conclusions and give them fundamentals, instead of accumulating evidence. After this researchers can provide details to the readers who have the time and interest.

Step #6: Make Decisions

An organization or a researcher should never ask “why do market research”, they should just do it! Market research helps researchers to know a wide range of information, for example,  consumer purchase intentions, or gives feedback about the growth of the target market. They can also discover valuable information that will help in estimating the prices of their product or service and find a point of balance that will benefit them and the consumers.

Take decisions! Act and implement.

Learn more: Quantitative Research

• Make well-informed decisions: The growth of an organization is dependent on the way decisions are made by the management. Using market research techniques, the management can make business decisions based on obtained results that back their knowledge and experience. Market research helps to know market trends, hence to carry it out frequently to get to know the customers thoroughly.

LEARN ABOUT: Research Process Steps

• Gain accurate information: Market research provides real and accurate information that will prepare the organization for any mishaps that may happen in the future. By properly investigating the market, a business will undoubtedly be taking a step forward, and therefore it will be taking advantage of its existing competitors.
• Determine the market size: A researcher can evaluate the size of the market that must be covered in case of selling a product or service in order to make profits.
• Choose an appropriate sales system: Select a precise sales system according to what the market is asking for, and according to this, the product/service can be positioned in the market.
• Learn about customer preferences: It helps to know how the preferences (and tastes) of the clients change so that the company can satisfy preferences, purchasing habits, and income levels. Researchers can determine the type of product that must be manufactured or sold based on the specific needs of consumers.
• Gather details about customer perception of the brand: In addition to generating information, market research helps a researcher in understanding how the customers perceive the organization or brand.
• Analyze customer communication methods: Market research serves as a guide for communication with current and potential clients.
• Productive business investment: It is a great investment for any business because thanks to it they get invaluable information, it shows researchers the way to follow to take the right path and achieve the sales that are required.

LEARN ABOUT: Total Quality Management

The following tips will help businesses with creating a better market research strategy.

Tip #1: Define the objective of your research.

Before starting your research quest, think about what you’re trying to achieve next with your business. Are you looking to increase traffic to your location? Or increase sales? Or convert customers from one-time purchasers to regulars? Figuring out your objective will help you tailor the rest of your research and your future marketing materials. Having an objective for your research will flesh out what kind of data you need to collect.

Tip #2: Learn About Your Target Customers.

The most important thing to remember is that your business serves a specific kind of customer. Defining your specific customer has many advantages like allowing you to understand what kind of language to use when crafting your marketing materials, and how to approach building relationships with your customer. When you take time to define your target customer you can also find the best products and services to sell to them.

You want to know as much as you can about your target customer. You can gather this information through observation and by researching the kind of customers who frequent your type of business. For starters, helpful things to know are their age and income. What do they do for a living? What’s their marital status and education level?

Learn more: Customer Satisfaction

Tip #3: Recognize that knowing who you serve helps you define who you do not.

Let’s take a classic example from copywriting genius Dan Kennedy. He says that if you’re opening up a fine dining steakhouse focused on decadent food, you know right off the bat that you’re not looking to attract vegetarians or dieters. Armed with this information, you can create better marketing messages that speak to your target customers.

It’s okay to decide who is not a part of your target customer base. In fact, for small businesses knowing who you don’t cater to can be essential in helping you grow. Why? Simple, if you’re small your advantage is that you can connect deeply with a specific segment of the market. You want to focus your efforts on the right customer who already is compelled to spend money on your offer.

If you’re spreading yourself thin by trying to be all things to everyone, you will only dilute your core message. Instead, keep your focus on your target customer. Define them, go deep, and you’ll be able to figure out how you can best serve them with your products and services.

Tip #4: Learn from your competition.

This works for brick-and-mortar businesses as well as internet businesses because it allows you to step into the shoes of your customer and open up to a new perspective of your business. Take a look around the internet and around your town. If you can, visit your competitor’s shops. For example, if you own a restaurant specializing in Italian cuisine, dine at the other Italian place in your neighborhood or in the next township.

As you experience the business from the customer’s perspective, look for what’s being done right and wrong.

Can you see areas that need attention or improvement? How are you running things in comparison? What’s the quality of their product and customer service ? Are the customers here pleased? Also, take a close look at their market segment. Who else is patronizing their business? Are they the same kinds of people who spend money with you? By asking these questions and doing in-person research, you can dig up a lot of information to help you define your unique selling position and create even better offers for your customers.

Tip #5: Get your target customers to open up and tell you everything.

A good customer survey is one of the most valuable market research tools because it gives you the opportunity to get inside your customer’s head. However, remember that some feedback may be harsh, so take criticism as a learning tool to point you in the right direction.

Creating a survey is simple. Ask questions about what your customer thinks you’re doing right and what can be improved. You can also prompt them to tell you what kinds of products and services they’d like to see you add, giving you fantastic insight into how to monetize your business more. Many customers will be delighted to offer feedback. You can even give customers who fill out surveys a gift like a special coupon for their next purchase.

Bonus Tip: Use an insight & research repository

An insight & research repository is a consolidated research management platform to derive insights about past and ongoing market research. With the use of such a tool, you can leverage past research to get to insights faster, build on previously done market research and draw trendlines, utilize research techniques that have worked in the past, and more.

Market research is one of the most effective ways to gain insight into your customer base , competitors , and the overall market. The goal of conducting market research is to equip your company with the information you need to make informed decisions.

It is especially important when small businesses are trying to determine whether a new business idea is viable, looking to move into a new market, or are launching a new product or service.  Read below for a more in-depth look at how market research can help small businesses.

• COMPETITION According to a study conducted by Business Insider, 72% of small businesses focus on increasing revenue. Conducting research helps businesses gain insight into competitor behavior. By learning about your competitor’s strengths and weaknesses, you can learn how to position your product or offering. In order to be successful, small businesses need to have an understanding of what products and services competitors are offering, and their price point.

Learn more: Trend Analysis

• CUSTOMERS Many small businesses feel they need to understand their customers, only to conduct market research and learn they had the wrong assumptions. By researching, you can create a profile of your average customer and gain insight into their buying habits, how much they’re willing to spend, and which features resonate with them. Additionally, and perhaps more importantly, you can learn what will make someone use your product or service over a competitor.

Learn more: Customer Satisfaction Survey

• OPPORTUNITIES Potential opportunities, whether they are products or services, can be identified by conducting market research. By learning more about your customers, you can gather insights into complementary products and services. Consumer needs change over time, influenced by new technology and different conditions, and you may find new needs that are not being met, which can create new opportunities for your business.

Learn more: SWOT Analysis 

• FORECAST A small business is affected by the performance of the local and national economy, as are its’ customers. If consumers are worried, then they will be more restrained when spending money, which affects the business. By conducting research with consumers, businesses can get an idea of whether they are optimistic or apprehensive about the direction of the economy, and make adjustments as necessary. For example, a small business owner may decide to postpone a new product launch if it appears the economic environment is turning negative.

Learn more: 300+ Market Research Survey Questionnaires

Market research and market intelligence may be as complex as the needs that each business or project has. The steps are usually the same. We hope this ultimate guide helps you have a better understanding of how to make your own market research project to gather insightful data and make better decisions.

LEARN ABOUT: Projective Techniques

We appreciate you taking the time to read this ultimate guide. We hope it was helpful! 

You can now download our free ebook that will guide you through a market research project, from the planning stage to the presentation of the outcomes and their analysis.

Sign up now, and download our free ebook: The Hacker’s Guide to Advanced Research Methodologies 

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What is Market Research? (Explained With Examples)

Oct 11, 2023

Market research is an essential component of any business strategy. It helps companies understand their target market, identify consumer preferences, and make informed decisions about product development, marketing campaigns, and overall business growth. In this article, we will explore the concept of market research in detail, providing clear definitions, discussing advantages and disadvantages, and providing real-world examples to illustrate its importance

1°) What is Market Research?

Market research is the process of gathering and analyzing relevant data about a target market to gain insights into consumer behavior, preferences, and needs. It involves collecting both qualitative and quantitative data to understand market trends, competitor analysis, and customer satisfaction levels.

Market research plays a crucial role in helping businesses make informed decisions and develop effective strategies. By understanding the market dynamics and customer demands, companies can tailor their offerings to meet the specific needs of their target audience. This not only enhances customer satisfaction but also increases the chances of business success.

1.1 - Definition of Market Research

Market research can be defined as the systematic gathering, interpretation, and analysis of data about a specific target market, industry, or product/service. It helps businesses understand market dynamics, customer demands, and competitor strategies, ultimately enabling them to make informed decisions.

Market research involves various methods and techniques to collect data, such as surveys, interviews, focus groups, and observation. These methods help researchers gather both qualitative and quantitative data, providing a comprehensive understanding of the target market.

1.2 - Advantages of Market Research

There are several advantages of conducting market research:

Market Insights: Market research provides valuable insights into customer preferences, behaviors, and pain points, allowing businesses to tailor their offerings to meet customer needs effectively. By understanding what drives consumer decision-making, companies can develop marketing strategies that resonate with their target audience.

Competitor Analysis: By conducting market research, companies can gain a comprehensive understanding of their competitors, their strengths, weaknesses, and unique selling propositions. This knowledge helps businesses refine their own strategies and stand out in the market. It enables companies to identify opportunities for differentiation and develop competitive advantages.

Product Development: Market research helps businesses identify potential gaps in the market, enabling them to develop innovative products that satisfy unmet consumer needs. By understanding customer preferences and pain points, companies can create products that address specific challenges or provide unique solutions.

Evidence-Based Decision Making: By collecting and analyzing data, market research eliminates guesswork and supports data-driven decision making, reducing the risk of making costly mistakes. It provides businesses with the necessary information to evaluate market opportunities, assess risks, and make informed choices.

1.3 - Disadvantages of Market Research

While market research offers numerous benefits, it also has certain limitations:

Time-consuming: Conducting comprehensive market research can be a time-consuming process, requiring careful planning, data collection, and analysis. It involves identifying research objectives, designing research methodologies, collecting data, and analyzing the findings. This process can take weeks or even months, depending on the scope of the research.

Costly: Market research can be expensive, especially when involving large sample sizes or advanced research techniques. The costs include expenses related to data collection, analysis, and hiring research professionals. Small businesses with limited budgets may find it challenging to invest in extensive market research.

Accuracy Limitations: Despite efforts to ensure reliability, market research results are still subject to bias, sample error, and respondent inaccuracies. Researchers must carefully design their studies to minimize these limitations, but it is impossible to completely eliminate them. The accuracy of market research findings depends on the quality of data collection, sample representativeness, and the honesty of respondents.

2°) Examples of Market Research

Real-world examples can help illustrate the practical application of market research:

2.1 - Example in a Startup Context

Imagine a startup aiming to disrupt the meal delivery industry. Before launching their service, they conduct market research to identify the preferences and demands of their target audience. Through surveys, focus groups, and data analysis, they uncover that convenience, healthy options, and affordability are essential factors for their target market. Armed with this information, they develop a meal delivery service that meets these needs and differentiates themselves from established competitors.

For instance, during their market research, the startup discovers that their target audience values convenience above all else. They find that busy professionals and families are looking for a meal delivery service that can provide them with quick and easy options for their busy lifestyles. Armed with this insight, the startup decides to focus on developing a user-friendly mobile app that allows customers to easily order meals with just a few taps on their smartphones. This innovative approach to convenience sets them apart from their competitors and attracts a loyal customer base.

In addition to convenience, the startup also uncovers a strong demand for healthy meal options. They find that their target audience is health-conscious and actively seeks out nutritious meals that align with their dietary preferences. To cater to this demand, the startup partners with local farms and suppliers to source fresh and organic ingredients for their meals. They also collaborate with nutritionists and chefs to create a menu that offers a variety of healthy and delicious options. This commitment to providing healthy meals not only meets the needs of their target audience but also positions the startup as a trusted and reliable choice in the market.

Lastly, the startup identifies affordability as a key factor for their target market. They discover that price sensitivity is high among their audience, and they are looking for cost-effective meal delivery options that don't compromise on quality. To address this, the startup adopts a pricing strategy that offers competitive prices while still maintaining the quality and value of their meals. They also introduce subscription plans and loyalty programs to incentivize repeat customers and provide additional savings. This focus on affordability allows the startup to attract price-conscious customers and gain a competitive edge in the market.

2.2 - Example in a Consulting Context

A consulting firm specializing in marketing strategy decides to expand its service offerings. To ensure they align with market demand, they conduct market research to identify the most sought-after services and emerging industry trends. By analyzing market data, interviewing industry experts, and conducting competitor analysis, they identify a gap in the market for data-driven digital marketing strategies. This research helps the consulting firm refine their service offerings and attract new clients.

During their market research, the consulting firm uncovers a growing demand for data-driven digital marketing strategies. They find that businesses are increasingly looking for ways to leverage data and analytics to optimize their marketing efforts and drive better results. Armed with this insight, the consulting firm decides to develop a specialized service that focuses on helping businesses harness the power of data in their marketing strategies.

To deliver this service, the consulting firm invests in hiring data analysts and marketing experts with a strong background in data-driven marketing. They also develop proprietary tools and software that can collect, analyze, and interpret marketing data to provide actionable insights and recommendations to their clients. By offering this specialized service, the consulting firm is able to position themselves as industry leaders in data-driven marketing and attract clients who are seeking innovative and effective marketing solutions.

In addition to data-driven marketing, the consulting firm also identifies an emerging trend in influencer marketing. They find that businesses are increasingly turning to influencers and social media platforms to reach their target audience and build brand awareness. Recognizing the potential of this trend, the consulting firm expands their service offerings to include influencer marketing strategies. They develop partnerships with popular influencers in various industries and create comprehensive influencer marketing campaigns for their clients. This expansion allows the consulting firm to tap into a growing market and provide their clients with a holistic approach to digital marketing.

2.3 - Example in a Digital Marketing Agency Context

A digital marketing agency wants to optimize its client's pay-per-click (PPC) advertising campaigns. They conduct market research to understand consumer behavior and identify effective strategies. By analyzing search data, conducting A/B testing, and reviewing industry case studies, they discover that creating personalized ad copy and optimizing landing pages increases click-through rates and conversions. Armed with this knowledge, the agency produces better results for their clients and improves their overall reputation.

During their market research, the digital marketing agency delves into consumer behavior to gain insights into what motivates users to click on PPC ads and convert into customers. They find that personalization is a key factor in capturing the attention of users and driving conversions. Armed with this insight, the agency develops a strategy that focuses on creating personalized ad copy that resonates with the target audience. They conduct extensive research on the target audience's demographics, interests, and preferences to craft ad copy that speaks directly to their needs and desires. This personalized approach increases the relevance and effectiveness of the PPC ads, resulting in higher click-through rates and conversions for their clients.

In addition to personalized ad copy, the digital marketing agency also discovers the importance of optimizing landing pages in maximizing the success of PPC campaigns. They find that a well-designed and user-friendly landing page can significantly impact the conversion rate of PPC ads. Armed with this insight, the agency conducts A/B testing to identify the most effective landing page design and layout. They analyze user behavior, conduct heat map analysis, and gather feedback from users to refine and optimize the landing pages. This meticulous approach to landing page optimization leads to improved conversion rates and a higher return on investment for their clients' PPC campaigns.

2.4 - Example with Analogies

Imagine a chef who wants to create a new dessert recipe. Before experimenting with ingredients, they conduct market research to gather inspiration and understand current dessert trends. By analyzing popular recipes, studying customer reviews, and experimenting with flavors, the chef can develop a unique and delicious dessert that resonates with their target audience.

During their market research, the chef explores various dessert trends and flavors that are currently popular among consumers. They analyze social media platforms, food blogs, and culinary magazines to identify the latest dessert trends and gather inspiration for their own creation. Armed with this knowledge, the chef experiments with different flavor combinations, textures, and presentation styles to develop a dessert that not only satisfies the taste buds but also captures the attention of their target audience.

The chef also pays close attention to customer reviews and feedback on existing dessert recipes. They analyze the strengths and weaknesses of popular recipes and use this information to refine their own creation. By incorporating customer preferences and addressing common complaints or suggestions, the chef ensures that their dessert stands out from the competition and meets the expectations of their target audience.

Market research plays a pivotal role in understanding consumer needs, identifying market opportunities, and driving business success. Whether you are a startup, consulting firm, or digital marketing agency, conducting market research can provide valuable insights, inform decision-making, and improve overall business performance.

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Arnaud Belinga

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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.  

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• What Is Market Research?

Summary: Market research is a structured process to identify, gather, and analyze information to support business decisions. Market research can provide insights into the customer journey and guide decisions related to product development, marketing strategy, pricing strategy, and points of sales (online and offline) to create a customer experience that supports customer acquisition and retention.

8 minutes to read. By author Michaela Mora on July 10, 2021 Topics: Relevant Methods & Tips , Business Strategy , Market Research

Market research is a discipline with roots in psychology and sociology and involves the identification, collection, analysis, and use of information to make business decisions.

Market research and marketing research are so connected that the nuances are lost and both terms are used interchangeably in practice. For this article, I’ll use the term market research.

We use market research to identify and solve problems in different business areas, often connected to the four Ps in marketing:

• Place (distribution, point of sale)
• Promotion (advertising)

Overall, these four aspects of any product or service are drivers of the customer experience as customers interact with each of them through the customer journey from product development, pre-sale, point-of-sale, and post-sale.

Market Research to Identify Problems

The use of market research to identify problems aims at the discovery of what we don’t know. It is often called “generative research” in the context of product development as we look for new product ideas. At a very high level is exploratory in its goals and it can use qualitative and quantitative data collection and analysis techniques.

We use market research for problem discovery when we design research to:

• Identify unmet market needs and their market potential.
• Size the market share for specific products or services.
• Monitor brand image issues of our brand and competitors.
• Profile market segments.
• Analyze sales trends.
• Forecast future trends.
• Identify business trends.

Market Research to Solve Problems

Once a business discovers market opportunities through an understanding of unmet needs, or issues related to its branding, pricing of distribution that may impact the customer experience, the next step is to generate solutions and validate them.

The solutions may be new products and services, new product features to improve the customer experience, a pricing strategy, a brand positioning, a marketing strategy including customization of marketing messages and content for different marketing channels, a redesign of points of sales (online and offline), an internal reorganization to align systems and employees with the customer experience, etc.

For each need or issue discovered there are many potential solutions limited by resources available to the business. The more limited the resources are, the higher the need to use them effectively. Market research can help design solutions for high business impact.

We use market research to solve problems when we design research to:

• Identify actionable market segments for products or services (digital or physical)
• Develop new products (digital or physical)
• Establish a pricing strategy and identify optimal price points.
• Determine effective ways to advertise products and services and optimize marketing channels.
• Identify distribution issues and barriers to the path to purchase.
• Improve customer experience to support customer acquisition and retention strategies.

The Market Research Process

For any given market research project, the process usually includes six major steps:

• Business problem definition and translation to a research problem
• Development of an approach to the research problem
• Research design selection
• Data collection or fieldwork
• Data processing
• Analysis and reporting

Market Research Design Categories

There are different ways to categorize market research depending on:

• The focus on the problem at hand: Primary vs. Secondary.
• The research design goal: Exploratory vs. Descriptive, vs. Causal
• The type of data and collection methods used: Qualitative vs. Quantitative.

Each of these categories helps us guide how to select different research designs, data collection methods, and analysis techniques to gather the information we need to help solve the research problem and provide insights to support business decisions.

Primary Vs. Secondary

First, we try to determine whether we need to conduct secondary or primary research.

Primary research is based on data collection designed to address specific problems.

Secondary research is based on data that have already been collected for other purposes but may be related to the topic at hand. Secondary research should be a prerequisite to the collection of primary data, which would be appropriate when the secondary data sources have been exhausted or yield minimal returns.

Exploratory vs. Descriptive vs. Causal

Exploratory research designs are used to provide insights into problems we don’t fully understand or have not been discovered yet. This is often the type of research we start with when we use market research to identify problems.

We conduct descriptive market research when we try to describe characteristics of target markets or segments of interest, frequency of certain behaviors, attitudes, and perceptions, market trends, etc.

Causal market research, on the other hand, tries to find evidence of cause-and-effect relationships to understand which variables are the cause of behaviors, attitudes, perceptions , or other phenomena of interest.

Qualitative vs. Quantitative

This categorization helps us separate data collection and analysis methods based on their:

• Objectives.
• Sample design.
• Type of data and analysis they allow.
• Type of decisions they support.

Generally, qualitative research helps us explore and get a deeper understanding of a problem, while we use quantitative research to quantify and validate findings and test hypotheses. The latter may come from qualitative research, secondary research, or just assumptions made by the business.

Note that different combinations of the four criteria mentioned may render a research design qualitative or quantitative. For example, surveys with small samples may provide only directional results more appropriate for qualitative analysis.

Primary Market Research Data Collection Methods

As describe above, once we decide to design research to answer a specific business and research problem, we are on our way to conduct primary research.

We use a myriad of data collection methods in primary market research depending on the research objectives and research design selected.

Ideally, we should combine qualitative and quantitative methods since they provide different types of data and insights.

Qualitative Research

Qualitative Research is one type of exploratory market research methodology based on semi-structured or unstructured data collection. Data collection methods used in primary qualitative research can be classified as direct or indirect .

Direct methods are those in which we disclose the research objective to participants. These data collection methods include:

• In-depth Interviews (IDIs) – Online , In-person, Phone
• Focus Groups , Online, In-person
• Online bulletin boards
• Diary Studies
• Usability Testing , Online, In-person
• Usability Expert Reviews
• Contextual inquiry
• Shop-alongs
• Ethnographic observation

Indirect methods are those for which the true purpose of the research is not disclosed to participants. These are based on projective techniques, which are unstructured questioning techniques to encourage respondents to reveal underlying motivations, beliefs, attitudes, and feelings regarding particular issues.

These techniques are usually embedded into direct data collection methods and are classified into four major groups:

• Association
• Construction

Quantitative Research

Primary quantitative data collection methods include surveys and observational methods .

Surveys involve the administration of a questionnaire through different modes (online, phone, mail, in-person) to groups of interest. As a best practice, we try to always use qualitative research to design good surveys .

We use the survey format, particularly in the online mode, to implement many different question types that sometimes are considered “research methods” by those new to research, especially in the UX field. Surveys used in online unmoderated, remote usability tests are an example.

These are just surveys with very special question formats for very specific purposes.

Observation, on the other hand, doesn’t include communicating with the people being observed and can be conducted through different structured and unstructured, direct and indirect methods and performed in natural or lab environments.

Quantitative observational methods include:

• Digital transaction/behavior tracking (e.g., sales tracking, web traffic tracking, A/B testing).
• Biometric measurement
• Audit and inventory analysis.
• Content analysis.
• Trace analysis from past behaviors.

Although these data collection methods are very different, they should not be seen as mutually exclusive. Each method has advantages and disadvantages and can be used productively in combination.

Market Research Career

To emphasize the value of market research in supporting business decisions and get away from being mainly associated with data collection, the market research industry went through a rebranding process a few years ago. The American Market Research Association is now called the Insights Association , and many market researchers have changed their titles to “Insights” professionals.

You will find insights professionals in research agencies, like ours, and in nonprofit and profit organizations. The latter group is often referred to as corporate researchers. They often in a group within the marketing department or as independent centralized function serving other departments or functional areas in a company. Nowadays, this group goes by names such as “Customer Insights,” “Insights & Analytics,” “Voice of the Customer,” “Consumer Insights,” and the like.

As of 2021, many digital-first companies don’t have a market research/consumer insight group. These companies tend to be organized around digital products (app, software, online service) and prioritize UX research if any research is conducted at all.

Unfortunately, many don’t understand that UX research is a specific application of market research used to solve a particular set of problems.

Market researchers in agencies or inside organizations are involved with all or some steps of the research process depending on whether they do the work themselves or partner with other research vendors in the market research ecosystem.

Market Research Ecosystem

There are many specialists in the market research echo system offering services in line with different steps of the research process or servicing specific industries.

Overall, the market research ecosystem includes providers in areas such as:

• Participant sample (online panels, phone list, mail lists, qualitative panels)
• Data collection tools for different modes (online survey tools, online qualitative tools, phone surveys, mail surveys, eye tracking, biometrics, usability testing tools)
• In-person interviewing services (for onsite, intercept interviews at public places, stores, etc.)
• Mystery shopping services
• Facilities for in-person research (focus groups, interviews, food testing, product testing)
• Data aggregators (syndicated data services, omnibus services)
• Qualitative moderation (focus group moderators, in-depth interview moderators)
• Analytic software tools (Tools for statistical analyses, crosstabulations, advanced procedures, text analytics )
• Panel and community technology platforms (to create proprietary panels and branded research communities)
• Recruitment services (for qualitative research and hard to reach audiences)
• Open-ended question coding services
• Transcription services
• Data and reporting visualization tools
• Software development for specific applications and methodologies

I hope this summary gives you an idea of what the market research/insights profession is about and how this discipline can be used to find information needed to support business decisions.

Many who are not familiar with the field confuse market research with specific data collection methods (e.g., surveys, focus groups) and tools that facilitate data collection (e.g., online survey tools), but market research is more than its tools.

As researchers, we need to have expertise in research methodology to avoid providing biased insights. This knowledge of methodology is applied in the context of business problems related to product development, customer experience, branding, and financial outcomes. Our goal is to guide decisions that have a business impact.

To read more about how to use market research, check the article 10 Key Pieces of Advice On How to Do And Use Market Research .

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Written by Mary Kate Miller | June 1, 2021

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

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

What Is Market Research?

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

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

The Purposes of Market Research

Why do market research? It can help you…

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

What Are the Benefits of Market Research?

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

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

What Are the Basic Methods of Market Research?

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

Primary vs. Secondary Market Research

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

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

Primary Market Research

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

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

Secondary Market Research

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

Identify Your Goals and Your Audience

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

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

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

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

How to Do Market Research

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

Secondary Data

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

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

Find Your Customers Online

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

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

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

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

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

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

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

Market Surveys

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

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

Who to Include in Market Surveys

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

Example Questions to Include in Market Surveys

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

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

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

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

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

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

Survey Tools

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

Competitive Analysis

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

Social Media Analysis

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

SEO Analysis and Opportunities

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

Ready to Kick Your Business Into High Gear?

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

About Mary Kate Miller

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

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Market Research: A How-To Guide and Template

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

MARKET RESEARCH KIT

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

Updated: 02/21/24

Published: 02/21/24

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

Enter: Market Research.

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

Table of Contents

What is market research?

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

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

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

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

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

How? Consider these two things:

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

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

Free Market Research Kit

• SWOT Analysis Template
• Survey Template
• Focus Group Template

You're all set!

Click this link to access this resource at any time.

Why do market research?

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

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

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

Market research also provides insight into the following:

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

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

As a result, you can make better business decisions.

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

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

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

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

Primary Research

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

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

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

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

Secondary Research

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

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

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

1. Interviews

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

2. Focus Groups

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

3. Product/Service Use Research

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

4. Observation-Based Research

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

5. Buyer Persona Research

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

6. Market Segmentation Research

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

7. Pricing Research

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

8. Competitive Analysis

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

9. Customer Satisfaction and Loyalty Research

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

10. Brand Awareness Research

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

11. Campaign Research

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

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

1. Define your buyer persona.

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

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

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

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

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

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

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

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

How to conduct lean market research in 4 steps

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

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

Research your market the lean way...

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

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

1. Create simple user personas

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

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

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

Who are they?

What is their main goal?

What is their main barrier to achieving this goal?

Pitfalls to avoid:

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

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

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

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

Who are they? Administrative Assistants.

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

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

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

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

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

2. Conduct observational research

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

Overt vs. covert observation

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

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

Tips to do it right:

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

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

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

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

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

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

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

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

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

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

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

3. Conduct individual interviews

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

Listen more, talk less. Be curious.

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

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

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

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

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

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

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

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

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

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

4. Analyze the data (without drowning in it)

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

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

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

Affinity diagram

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

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

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

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

Hotjar lets you easily share survey responses with your team

Customer journey map

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

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

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

Next steps: from research to results

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

Implement changes

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

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

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

Measure results

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

Smallpdf’s changes produced:

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

A 1% increase in NPS

Greater confidence in the team’s marketing efforts

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

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

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

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

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

Here’s why research matters:

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

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

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

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

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

Lean market research can help you become more...

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

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

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

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

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

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

1. Surveys: the most commonly used

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

What makes online surveys so popular?  

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

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

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

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

An example research report generated by Hotjar AI for Surveys

2. Interviews: the most insightful

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

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

What makes interviews so insightful?

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

3. Focus groups: the most unreliable

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

What makes focus groups so unreliable?

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

4. Observation: the most powerful

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

What makes observation so clever and powerful?

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

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

1. Who are you and what do you do?

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

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

2. What does your day look like?

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

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

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

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

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

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

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

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

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

— Adele Revella , Founder/CEO at Buyer Persona Institute

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

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

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

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

What is the difference between qualitative and quantitative research?

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

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

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

How do I do my own market research?

You can do your own quick and effective market research by 

Surveying your customers

Building user personas

Studying your users through interviews and observation

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

What is the difference between market research and user research?

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

What are the main criticisms of market research?

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

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

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

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

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How to Create a Market Research Plan

Table of Contents

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

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

What should a market research plan include?

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

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

How to create your market research plan

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

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

Step 1. Conduct a comprehensive situation analysis.

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

When developing a market research plan, it is essential that you do your homework to determine your possible customer base, to gain knowledge about the competition and to have a solid foundation for your marketing strategy.

Step 2: Develop clear marketing objectives.

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

Step 3: Make a financial plan.

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

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

Step 4: Determine your target audience.

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

Step 5: List your research methods.

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

A good market research plan involves using more than one type of research to obtain the information you need.

Step 6: Establish a timeline.

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

Step 7: Acknowledge ethical concerns.

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

Using a market research firm

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

You don’t need to pay thousands of dollars for assistance crafting a market research plan. University business schools often provide free resources that can assist you.

Pros of using a market research firm

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

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

Cons of using a market research firm

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

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

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

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

Miranda Fraraccio contributed to this article. 

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How To Write Market Research Proposal: Tips and Best Practices

Entrepreneurs and companies need to get critical information about their industry or specific market landscape to help ensure their business becomes a success.

This is where market research plays a role. But to be effective, proper steps must be outlined through a market research proposal.

If you’re a business owner or a marketer, you must learn how to write a market research proposal correctly . So here’s a handy step-by-step guide on how to do just that. Plus, we’ll throw in a free template to help you get started.

Table of Contents

How To Write a Market Research Proposal

When drafting a market research proposal , you can adopt various styles depending on the industry or business. But to put forth a more organized proposal, it helps to adhere to proven structures and follow these steps.

1. Start with an overview

It’s always wise to open with an overview to give the readers of the proposal a general idea of what the market research is all about, as well as set their expectations. If you don’t want to use the term overview, you can also go with an executive summary or an introduction.

You can do a simple overview consisting of one to three paragraphs. Or if the situation calls for it, you can also present your executive summary with supporting information that may include any or all of the following:

• Definition of terms. List the terms that will be used in the market research proposal. Make sure to define them properly.
• Market conditions. Give an overall picture of the current market conditions. Explain the industry’s state and the competition level, as well as mention relevant economic or even political factors.
• Strengths, weaknesses, opportunities, and threats (SWOT) analysis. You can also present market conditions through a SWOT diagram, which summarizes everything neatly.
• Feasibility. If you want to cut to the chase, state the overall feasibility. You can also consider including the potential ROI (return on investment ).

2. Define the objectives

When writing a market research proposal, define the project’s goals as clearly as possible. You can begin with a larger, encompassing objective and then break it up with its corresponding parts. 

If you are dealing with multiple goals, make sure to explain how each separate objective relates to or affects one another.

Remember that clearly defined goals will guide the execution of the market research project – from the budget to the types of surveys or questions you will use.

3. Outline the execution

Market research can be accomplished in various ways, but there needs to be a clear plan for executing it.

Outline your methodology and approach to getting the information you need. As far as methods are concerned, you can choose from options like organizing focus groups, deploying online surveys, or holding interviews over the phone or face-to-face.

You should also consider if your approach is multi-faceted. Will the surveys be done once or through a series of batches? Will you follow up on the first wave of interviews with email surveys? 

Never forget to include the rationale for choosing your methodology. Factors to remember include costs, logistics, and timeline.

4. Explain how the results will be analyzed and reported

Market research proposal creation would be incomplete without including the mechanics for analyzing and reporting the results.

You must present a concrete plan for how the market research data will be collected and safely stored. 

Next on your list is to explain how the data will be analyzed. Of course, what comes after is the reporting part. It’s more than just presenting the facts. You should also include your interpretations and, more importantly, your recommendations.

5. Discuss the timeline, costs, and conditions

Market research takes time and isn’t free. So, you’ll need to define your timeline and expected costs clearly.

It’s also important to tackle the terms and conditions of the market research project. The more transparent you are, the more you can prevent misunderstandings in the future.

Download the Market Research Proposal Template

When drafting a market research proposal, you can accomplish things faster using a reliable template. 

Sign up now for a free account at Fill to get a market research proposal template. It’s just one of several templates that we offer for free.

Market Research Proposal

Common Mistakes to Avoid When Writing a Market Research Proposal

It’s not enough to know how to draft a market research proposal. You also have to be aware of common mistakes people commit when preparing these proposals.

• Lack of details. When you already know how to create market research proposals, you use certain structures and templates repeatedly. But sometimes, you forget to add elements that make your proposal look legit instead of being an apparent copy of another.
• There is not enough review and fact-checking. We’re not talking about simple spelling and grammar errors. We’re referring to the information you included in your market research proposal. Are they up-to-date? Are the sources considered trustworthy?
• There is too much hype. Be careful not to get caught up in the excitement of your proposal. Remember that you are dealing with business people. Be realistic and be clear about the goals. The last thing you need is to promise something you can’t deliver.
• Disorganized presentation. You can follow a decent structure when writing your market research proposal. But if you don’t organize the information you present in each section, you will you’re lose your reader’s interest.
• Underestimating visuals and diagrams. Yes, it’s showing real data is important, but you can be more persuasive by strategically using visuals, graphs, charts, and tables in your proposal. 

Using Fill to Create Your Market Research Proposal

Now that you know how to write a market research proposal, it’s time to put your learnings into practice immediately.

Create an account at Fill and grab a free market research proposal template today.

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BUS101: Introduction to Business

Marketing research process.

To accurately arrive at a target market, businesses must research who their typical customer is. Read each section to learn about conducting marketing research. Try to summarize these lessons and write a brief reflection of how you would research if you were the owner of an upscale retail clothing store in a major metropolitan city with several competitors.

Learning Objectives

• Outline objectives and problems as part of the marketing research process
• Describe the formulation of research design within the context of the marketing research process
• Recognize the basis for developing a specific approach to the objective or problem to be solved through the marketing research process
• Construct the rationale of fieldwork or data collection from a marketing research process perspective
• Summarize the characteristics of data preparation and methodology of data analysis
• Identify the characteristics of preparing, presenting, and documenting the results of marketing research
• The marketing research process involves six steps: 1: problem definition, 2: develop an approach to the problem, 3: research design formulation, 4: data collection, 5: data preparation and analysis, and 6: report preparation and presentation.
• The first step in any marketing research study is to define the problem while taking into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making. This stage involves discussion with the decision-makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups.
• Marketers can employ three types of objectives their research: exploratory research, descriptive research, and causal research.
• The marketing process details the procedures to obtain this information. It aims to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide the information needed for decision making.
• Researchers need to choose the type of data they want to obtain from the respondents, such as via a survey or experiment and design a questionnaire and sampling plan to choose the most appropriate respondents for their study.
• Research design involves secondary data analysis; qualitative research; quantitative data methods (survey, observation, and experimentation); information needed; measurement and scaling procedures; questionnaire design; sampling process and sample size; and a plan of data analysis.
• Data collection involves a field force or staff that operates in the field, as in the case of personal interviewing, from an office by telephone, or through the mail (traditional mail and mail panel surveys with pre-recruited households).
• Proper selection, training, supervision, and evaluation of the field force helps minimize data-collection errors. Data is carefully edited, coded, transcribed, and verified so it can be properly analyzed during this phase of the research process. Verification ensures that the data from the original questionnaires have been accurately transcribed, while data analysis gives meaning to the data that have been collected.
• Bias must be avoided when interpreting data because only the results (not personal opinion) should be communicated.
• The entire project should be documented in a written report that addresses the specific research questions identified; describes the approach, research design, data collection, and data analysis procedures adopted; and presents the results and the major findings.
• The findings should be presented in a comprehensible format so they can be readily used in the decision-making process. An oral presentation to management, using tables, charts, and graphs, will enhance clarity and impact.
• Business Intelligence – Information that pertains to the history, current status, or future projections of a business organization.
• Data – Values of qualitative or quantitative variables belonging to a set of items; Data are typically the results of measurements and can be visualized using graphs or images
• Data Mining – A technique for searching large-scale databases for patterns; used mainly to find previously unknown correlations between variables that may be commercially useful.
• Ethnographic research – Information regarding cultural phenomena.
• Executive Summary – A short section or document that summarizes a longer report or proposal so readers can quickly learn about a larger work without having to read it in its entirety.
• Mall Intercept – A survey where respondents are intercepted in shopping malls to administer a survey on the spot or invite them to a research facility to conduct the interview.
• Market Research – The systematic collection and evaluation of data regarding customers' preferences for actual and potential products and services.
• Marketing Research – A research process that links the consumers, customers, and public to the marketer through information. This information is 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.
• Objective – Not influenced by irrational emotions or prejudices.
• Qualitative Research – A method of inquiry employed in many different academic disciplines, traditionally in the social sciences but also in market research and further contexts.
• Scientific Method – A body of techniques for acquiring new knowledge or correcting and integrating previous knowledge. To be termed scientific, a method of inquiry must be based on empirical and measurable evidence subject to specific principles of reasoning.
• Secondary Data – Information collected by someone other than the user of the data.
• Secondary Research – A research process that Involves the summary, collation, and synthesis of existing research rather than primary research, where data is collected from subjects or experiments.
• Survey Research – A research process that obtains information from a predetermined set of questions given to a sample, used to assess thoughts, opinions, and feelings.
• Systematic – Carried out using a planned, ordered procedure.

Marketing Research Is Systematic and Objective:

• Systematic planning is required at all stages of the marketing research process. The procedures followed at each stage are methodologically sound, well documented, and, as much as possible, planned in advance. Marketing research uses the scientific method in that data are collected and analyzed to test prior notions or hypotheses.
• Marketing research aims to provide accurate information that reflects a true state of affairs and, thus, should be conducted impartially. While research is always influenced by the researcher's research philosophy, it should be free from the personal or political biases of the researcher or the management.

Overview of the Marketing Research Process:

Step 1: problem definition, step 2: development of an approach to the problem, step 3: research design formulation.

• Step 4: Field Work or Data Collection

Step 5: Data Preparation and Analysis

Step 6: report preparation and presentation.

Define the problem and research objectives. The first step in any marketing research study is to define the problem while taking into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making. This stage involves discussion with the decision-makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups. There are three types of objectives that can be deployed in marketing research:

The first stage of the marketing research process involves defining the problem.

1. Exploratory research

• Used to better define a problem or scout opportunities.
• In-depth interviews and discussion groups are commonly used.

2. Descriptive research

• Used to assess a situation in the marketplace (that is, the potential for a specific product or consumer attitudes).
• Methods include personal interviews and surveys.

3. Causal research

• Used for testing cause and effect relationships.
• Typically through estimation.

Step two includes formulating an objective or theoretical framework, analytical models, research questions, hypotheses, and identifying characteristics or factors that can influence the research design. This process is guided by discussions with management and industry experts, case studies and simulations, analysis of secondary data, qualitative research, and pragmatic considerations.

Planning involves the creation and maintenance of a plan.

A research design is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the required information, and its purpose is to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide the information needed for decision making. Decisions are also made regarding what data should be obtained from the respondents (such as by conducting a survey or an experiment). A questionnaire and sampling plan also are designed in order to select the most appropriate respondents for the study. The following steps are involved in formulating a research design:

• Secondary data analysis (based on secondary research)
• Qualitative research
• Methods of collecting quantitative data (survey, observation, and experimentation)
• Definition of the information needed
• Measurement and scaling procedures
• Questionnaire design
• Sampling process and sample size
• Plan of data analysis

Secondary data analysis is one of the steps involved in formulating a Research Design

Developing the research plan for collecting information:

The research plan outlines sources of existing data and spells out the specific research approaches, contact methods, sampling plans, and instruments that researchers will use to gather data. This plan includes a written proposal that outlines the management problem, research objectives, information required, how the results will help management decisions, and the budget allocated for the research.

Step 4: Fieldwork or Data Collection

Fieldwork, or data collection, involves a field force or staff that operates either in the field, as in the case of personal interviewing (focus group, in-home, mall intercept, or computer-assisted personal interviewing), from an office by telephone (telephone or computer-assisted telephone interviewing/CATI), or through the mail (traditional mail and mail panel surveys with pre-recruited households). Proper selection, training, supervision, and evaluation of the field force helps minimize data-collection errors. In marketing research, an example of data collection is when a consumer goods company hires a market research company to conduct in-home ethnographies and in-store shop-alongs in an effort to collect primary research data.

Soldiers and family members participated in USAG-RC-sponsored focus group s

Marketing Research is Systematic and Objective

• Systematic planning is required at all stages of the marketing research process, especially in the data collection step. The procedures followed at each stage are methodologically sound, well documented, and, as much as possible, planned in advance. Marketing research uses the scientific method in that data are collected and analyzed to test prior notions or hypotheses.
• Marketing research aims to provide accurate information that reflects a true state of affairs and thus, should be conducted impartially. While research is always influenced by the researcher's philosophy, it should be free from the personal or political biases of the researcher or the management. This is especially important in the data collection phase. The data collected will be analyzed and used to make marketing decisions. Hence, it is vital that the data collection process be free of as much bias as possible.

Primary Versus Secondary Research

There are many sources of information a marketer can use when collecting data. The Nielson Ratings is an audience measurement system that provides data on audience size and the composition of television markets in the United States. The Gallup Polls conduct public opinion polls with its results published daily in the form of data-driven news. The U.S Census Bureau, directed by the U.S. Government is the principal agency that is responsible for producing data about American people and the economy. Population, housing, and demographic characteristics are gathered to help plan and define transportation systems, police and fire precinct, election districts, and schools.

Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with the goal of highlighting useful information, suggesting conclusions, and supporting decision making. Data analysis has multiple facets and approaches, encompassing diverse techniques under a variety of names in different business, science, and social science domains. Data mining is a particular data analysis technique that focuses on modeling and knowledge discovery for predictive rather than purely descriptive purposes. Marketers use databases to extract applicable information that identifies customer patterns, characteristics, and behaviors.

Notes on data analysis process and testing parameters .

Business intelligence covers data analysis that relies heavily on aggregation and focusing on business information. In statistical applications, some people divide data analysis into descriptive statistics, exploratory data analysis (EDA), and confirmatory data analysis (CDA). EDA focuses on discovering new features in the data and CDA focuses on confirming or falsifying existing hypotheses. Predictive analytics focuses on the application of statistical or structural models for predictive forecasting or classification. Text analytics applies statistical, linguistic, and structural techniques to extract and classify information from textual sources, a species of unstructured data. All are varieties of data analysis.

During this phase of the research process, data is carefully edited, coded, transcribed, and verified in order for it to be properly analyzed. Statistical market research tools are used. The validity of the results is also assessed to confirm how well the data measures what it is supposed to measure. Oftentimes, the research team will arrange a debriefing session with the client to review highlights from the data and brainstorm potential ideas on how the findings can be implemented. This typically happens when a client hires a market research company and they want to remain thoroughly involved in the research process.

Researchers can set up a debriefing meeting to review the analysis

Types of data analysis outputs: heat map, bar plots, scatter plots .

Helpful tips to keep in mind during data analysis:

• Communicate the results.
• Try to avoid bias when interpreting data.
• Just because results fail to confirm original hypotheses, does not mean the research results are useless.

During the Report Preparation and Presentation step, the entire project should be documented in a written report that addresses the specific research questions identified; describes the approach, the research design, data collection, and data analysis procedures adopted; and presents the results and the major findings. This permanent document is also helpful because it can be easily referenced by others who may not have been part of the research.

The findings should be presented in a comprehensible format so that they can be readily used in the decision-making process. In addition, an oral presentation should be made to management using tables, figures, and graphs to enhance clarity and impact.

Someone giving a presentation using visual elements

A successful presentation will include but is not limited to the following elements:

• Final conclusions (based on the insights gathered from data collected) that effectively meet the initial objectives of the research
• Recommendations about how to apply the research
• Charts, graphs, and visual elements that help showcase important facts and make the presentation easily digestible and memorable

A formal research report presentation typically includes the following:

• Table of Contents
• Executive Summary
• Research Objectives
• Research Methodology
• Highlights of Fieldwork Data Collected
• Appendix (including Respondent Screening Instrument and Questionnaire)
• Findings/Insights
• Recommendations/Implications and Action Plan

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3.7: The Value of marketing research

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It is important to point out that it is not always necessary to conduct research before attempting to solve a problem in marketing management. The manager may feel that he already knows enough to make a good decision. In a few instances, there may be no choice among alternatives and hence no decision to make. It is rather pointless to study a problem if there is only one possible solution. But in most business situations, the manager must make a choice among two or more courses of action. This is where fact-finding enters in to help make the choice.

Even if a manager would like more information in order to make a decision, it is not always wise for him or her to conduct the research that would be required. One reason is that the time involved may be too great. Another more compelling reason is that the cost of the research may exceed its contribution. In principle, it is easy to understand how such a cost test might be applied. If the cost of conducting the research is less than its contribution to the improvement of the decision, the research should be carried out. If its cost is greater, it should not be conducted. The application of this principle in actual practice is somewhat more complex. Finally, good research should help integrate marketing with the other areas of the business.

➢ How can marketing research help managers create successful product lines and customer relationships?

➢ Most people conduct research when buying certain "big ticket" items like cars or computers. How do you conduct marketing research for these types of items?

➢ How has the Internet impacted consumers and their purchase decisions? What about the impact on companies?

Capsule 7: Review

1. [1] Sources : John W. Verity, "Coaxing Meaning out of Raw Data," Business Week , February 3, 1997, pp. 134-138; "Researchers Integrate Internet Tools in Their Work," R&D Magazine , June 2000, vol. 24, No.6, p. E13; "Smarter Kids. Com Chooses Quadstons–The Smartest Customer Data Mining Solution," Business Week , July 31, 2000.

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Market Research Terms Glossary

Section 1: market research terminology, section 2: question & survey types, section 3: survey bias, section 4: pollfish features.

You can’t become a market research expert without learning the lingo. That’s why we created the Pollfish Market Research Terms Glossary.

This alphabetical listing of key market research terms, concepts and ideas has been segmented into four sections: Market Research Terminology, Survey Design & Question Types, Survey Bias and Pollfish Features.

For basic research concepts, check out the Market Research Terminology section. Survey Design & Question Types gives simple definitions of the different types of surveys and questions you can build with Pollfish. The Survey Bias section takes you through the ways you can bias your results. And the Pollfish Features section gives you definitions of Pollfish-specific tools and features so you’ll always know what’s going on.

Check it out!

The more you read about market research, the more surveys you build and the deeper you sink into the world of consumer insights, the more you translate the language surrounding it.

Here, we define some basic terms that you will need to have an understanding of to become a market research expert.

A    |    C    |    D    |    E    |    F    |    I    |    L    |    M    |    N    |    O    |    P    |    Q    |    R    |    S    |    T

Agile market research An approach that values numerous small experiments over a few large bets, rapid iterations over big-bang campaigns and responding to change over following a plan.

Complete A fully completed survey that has been screened for bias, insufficient responses and bots. Completion Rate The rate at which surveys are completed as compared to the number of surveys started by respondents. To calculate completion rate, divide the number of completes by the number of starts. Consumer Insights Valuable information on the preferences, opinions, habits and emotions of your most valuable customers. Consumer insights usually encompass insights related to a product or service. Control Group Survey participants can be split into two groups–an experimental group, exposed to a product or service, and a control group that is neutral. A common example is ad effectiveness testing, where researchers can track a respondent’s exposure to an ad through cookies. They then split those who have viewed the ad and those who have not into separate groups, asking the same questions to see how responses differ. Cost Per Complete The price you pay per completed survey. This calculation is based on certain factors of your survey, including the number of screening questions, quotas, demographic/geographic filtering and more. Learn More > Cross Tabulation (Crosstab) A feature of your survey platform that presents data in a table with rows and columns, designed to help researchers observe two or more variables at the same time. Crosstabs are useful when you want to divide your respondents into subgroups to see how a dependent variable changes the results.

Data Any information collected by your survey, along with any outside information collected, observed, generated or created in service of your research goals. Data Cleaning Removing unqualified, biased or incomplete responses from a survey. This process improves data quality and protects against survey bias. Learn More > Device ID An individually assigned ID given to a Respondent’s device to differentiate them from other respondents. Many survey platforms who deliver surveys via mobile devices will collect or create Device IDs. At Pollfish, these IDs are passed to us from the mobile app publishers where we deliver your survey. This ID, along with demographic information respondents give on their first survey, are collected and used for targeting and filtering purposes in the future. Learn More > DIY market research Market research conducted using a self-service platform, as opposed to partnering with a market research agency or research consultant. Most DIY market research is conducted in-house to avoid the speed and cost limitations of working with outside entities. Learn More > Drop-Offs When a respondent begins a survey and doesn’t complete it. These are also called Starts. Drop-offs are not counted as completes and, therefore, you will not be charged for them.

Engagement Engagement has many meanings. It can refer to a high degree of focus and interest in stimuli. In digital marketing and technology, engagement often refers to metrics surrounding use of platforms, content features or apps (think clicks, time on page, etc). In market research, engagement refers to how users interact with your survey. Does their time spent on each question indicate they are confused or don’t understand how to choose an answer? If so, your completion rate could be impacted.

Feasibility Study A feasibility study is designed to determine the likely success of a project, product or service. There are many factors that go into a feasibility study, including existing competitors, production limitations, timing, estimated pricing and more. Brands or researchers may conduct feasibility studies to determine the market interest in a new product or service, or even to help determine the feasibility of a future research project. Fielding Fielding refers to the distribution of the survey questionnaire. When using Pollfish, you can watch your results roll in in real time using our Results Dashboard.

Implicit data Implicit data refers to information that is not provided from respondents directly, but is gathered from available data. For example, Pollfish collects location data and information on a respondent’s mobile carrier from the App publisher, not from the respondent directly. Incidence Rate Incidence rate is the measure for the rate of occurrence or the percentage of persons eligible to participate in a survey, based on the targeting criteria selected.

Longitudinal Research Researchers performing a longitudinal study will run the same survey many times over short or long periods, in an effort to observe how the opinions, behaviors or habits of the same population change over time. The population can also be randomized to see how time impacts the questions being asked, regardless of population.

Margin of error Margin of error, also called the confidence interval, is a statistical measurement of difference between survey results and the population value, expressed as a percentage. Within the survey ecosystem, the margin of error measures the difference between your survey results and how accurately they reflect the views of the overall population. Learn More > Market research Market research refers to the gathering of consumers’ needs, preferences, habits, behaviors and more in an attempt to better understand a company’s potential customers, brand positioning and potential interest in a product or service. Mobile ID Also known as the Advertising ID, this unique ID number is how mobile advertisers are able to cookie users and keep track of engagement with mobile ads. At Pollfish, we use this id in a similar way, delivering surveys to users in much the same way an app delivers ads. We use the advertising ID to ensure we don’t send the same survey to the same user more than once. Learn More >

Non-Probability Sampling Non-probability sampling excludes some of the population in your sample, and that exact number can not be calculated – meaning there are limits on how much you can determine about the population from the sample. These methods include convenience sampling, quota sampling, judgement sampling and snowball sampling. Learn More >

Online panel Online panels collect responses either via a fully opt-in structure, including a signup page, or start with some form of digital outreach to potential respondents who have agreed to take surveys in advance. Panelists are then recruited to participate in specific surveys, for example via email invitation to the page of the panel provider. Pollfish avoids the pitfalls of traditional online panels by asking users to take surveys while they are using apps or games in real-time, increasing data quality and reducing biased responses. Learn More >

Panel A panel is a collection of potential respondents who have agreed to take a survey in advance of the survey’s fielding process. These respondents are typically promised some type of incentive in exchange for joining the panel, which would effectively pay them for their time. Learn More > Piping Piping allows researchers to personalize surveys by ‘piping’ an answer from a previous question into a later question. For example, you can ask a respondent their name or occupation on the first question, and then add that name or occupation to future questions to make the questions more personalized. Population The population is the total group of respondents who you attempted to survey. If they complete your survey, they become part of your sample. Primary Data Primary data refers to the data collected by researchers directly from respondents using surveys, interviews or direct observation. Primary research Primary research refers to the methodology of using only data collected directly from respondents, rather than relying on data collected during previous research or from some external source (government agencies, employment records, etc). Probability Sampling Probability sampling refers to a randomized method of respondent selection. In order to utilize probability sampling, researchers have to have a method that ensures every member of the population has an equal chance of being chosen to participate (like picking names out of a hat). Psychographic Unlike demographics, which explain who your respondents are, psychographics seek to explain why they do what they do. While any quantitative study, group of screening questions or even secondary location data can net you demographic data, psychographics are more often culled from qualitative studies. For example, is your respondent concerned with health and appearance? Do they enjoy socializing or are they more introverted? You can get answers to these questions from scale-based quantitative questions, but open-ended questioning or interviewing often provides more depth to these groupings. Depending on how you plan to use them, you should consider this before creating your survey. Learn More > Public Opinion Research Public opinion refers to the opinions of a majority of people in a certain population. Polling the public opinion requires taking as broad of a study as possible and asking direct, quantifiable questions about specific issues.

Qualification rate The qualification rate is the estimated percentage of people you expect to qualify for your survey based on your targeting criteria, screening questions and other filters. Qualitative research Qualitative survey questions aim to gather data that is not easily quantified such as attitudes, habits, and challenges. They are often used in an interview-style setting to observe behavioral cues that may help direct the questions. Learn More > Quantitative research Quantitative research is about collecting information that can be expressed numerically. Quantitative research is usually conducted through surveys or web analytics, often including large volumes of people to ensure trends are  statistically representative . Learn More > Questionnaire Your questionnaire is the list of questions you plan to ask your respondents. There are many different types of survey questions you can ask, depending on your survey goals. Learn More > Quota Quotas are limits you can set for the number of responses your survey collects from a particular group. They can be set across the entire survey or on a given question or segment. Unlike weighting, which ties your quotas to existing data sets like a national or local census, quotas can be chosen by the researcher to match the goals of your survey. If, for example, you’d like to survey a population that is 75% female, you can do that.

Respondent A respondent is a person who meets your targeting criteria and completes your survey in full. Response Rate The response rate is the percentage of the total targeted population who responded to your survey. Learn More >

Sample Your sample refers to the respondents who matched your targeting criteria and completed your survey. Sample size Your sample size is the number of completes your survey receives. Learn More > Secondary data Secondary data refers to data that has been collected outside of the bounds of a researcher’s survey, but which the researcher can use to add context. For example, DMV records, national census records and other government information can be used for things like weighting and quotas, or just to show the disparity between perception and reality within a studied population. Secondary research Secondary research refers to the summary or synthesis of existing research towards a new research goal. In this practice, previous primary research projects are used as sources. Segmentation Segmentation studies seek to separate larger audiences into smaller segments based on similar tastes, interests, perceptions and other secondary factors like education, employment or lifestyle. Statistical significance A measurement to quantify whether a result is just due to chance or due to some significant factor. Getting a survey that is not statistically significant comes from sampling error. That’s when your sample doesn’t accurately reflect the population of your survey and, therefore, may cause skewed results. There are two things to contend with when trying to remove sampling error: sample size and variation. The larger the sample size, the less chance there is in the result so that reduces sampling error and increases significance. Controlling for variability of your sample also can impact sampling error–the more variability in your sample, the more prone to error the study will be. Survey In its most basic form, a survey refers to the questionnaire–delivered either in person or online–that a researcher administers in service of a research study. When using Pollfish and other online survey platforms, a survey refers to the targeting you select, the questionnaire you create and the results files created once you run your survey. Each survey’s full info is grouped together in your account dashboard.

Targeting Targeting refers to the criteria you select to screen potential survey respondents. Once targeting is selected, a population is created and your survey is delivered. Tracking Study (Tracker) Tracking studies use the same questionnaire, delivered over time, to track brand awareness, monitor customer satisfaction, study consumer interest in new products or services, analyze the effectiveness of advertising creative and more. Tracking studies may be delivered to the same populations (to gauge how perceptions of the same group changes as time goes on) or different populations to view time as just one factor impacting shifting perceptions.

Section 2: Survey Design & Question Types

When creating your survey design, it is important to start with the type of survey you want to run. Understanding the small but significant differences between survey types is a great first step.

Here, we want to review the different types of studies you can run with Pollfish, as well as the ideal question types for each one.

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Ad Absorption A study designed to show the effectiveness of certain advertising creative. These studies tend to use narrow audience targeting screening questions and even control groups to determine if new ad creative is having statistically significant impact on user experience or understanding of a product, brand or service. Learn More > Attitude & Usage Testing A study that aims to understand the available market for a product or service. This typically involves things like market sizing, general understanding of the product category, questions understanding brand decisions, gathering targeting information and more. Audience Profiling Profiling is a process of collecting demographic information to define an audience or population. Researchers may need to conduct surveys of a population to determine if there are enough available survey takers for the demographic or other targeting they want to run. At Pollfish, we use a rolling profiling model to keep our audience up to date. We also collect most of the demographic data you will need up front, including demographic, gender and mobile usage data. Learn More > Audio question A question that requires the respondent to listen to an audio clip in full before answering.

Brand Awareness Brand awareness is the extent to which consumers are familiar with a brand, the extent to which the brand’s intended perception matches reality and the extent to which a company’s brand is helping or hurting sales.

Closed-ended question Closed ended questions are those that offer a limited selection of answers to choose from, such a single or multiple-selection question, matrix, or scaling question type. Learn More > Competitive Analysis Competitive analysis testing helps you better understand how your potential customers are discovering your competitor’s product, feature preferences, user behavior and more. Learn More > Concept Testing The process of testing a big idea, concept testing allows you to run ideas past a sample of your target market before producing them. These ideas can be new logos, new product ideas, new ad campaign ideas and more. Content Creation Surveys Conducting surveys can reveal gaps in news coverage that can help digital media brands develop a unique editorial voice. By surveying outside of existing readers to prospective readers and even competitive readers, digital media companies can gauge interest in, and existing knowledge of–certain topic areas. Learn More > Creative Testing A test allowing a creative team to gauge the effectiveness of their work at conveying the feelings and emotions they were aiming for. This includes logo testing, ad creative testing and more. Creative testing may ask questions about brand effectiveness, gauge tone and consumer enjoyment and gauge the likelihood of someone to purchase before and after viewing creative assets.

Description question A question in your questionnaire that contains a basic description. This question type is usually used to provide directions to the respondent. Learn More >

Image question A survey question requiring respondents to look at and respond to an image or a group of images.

Likert Scale A Likert Scale is typically a 5 or 7 point scale that asks a respondent to express how much they agree or disagree with a statement. Learn More > Logo Testing A type of creative testing focused on changes, updates or just current opinions of a brand or product logo. This type of survey may contain questions gauging how appealing, authoritative or on-brand a logo is, or even reveal possible changes to a brand logo and ask potential customers to weigh in. Learn More >

Market Analysis Studies that focus on the size, scope and potential of a market. Before launching a new product, companies may want to figure out the size of the potential market by broadly surveying interest for that product across key areas and demographic groups. This helps companies determine how large a product rollout may be needed. Matrix multiple selection question A matrix question asks respondents to make selections for multiple options on a scale. A matrix multiple selection question lets you select multiple responses for a single option. For example, a matrix may contain elements of a hotel, asking respondents to rate elements like the pool or the lobby bar using a variety of potential responses like “Clean” or “Fun.” A multiple selection matrix will allow you to check all descriptions that apply. Learn More > Matrix single selection question A matrix single selection question will ask you to select one answer per option on a scale. For example, a matrix may contain elements of a hotel, asking respondents to rate elements like the pool or the lobby bar using a variety of potential responses. Because responses are single-selection, researchers will often ask something more definitive, like “How likely were you to use these different elements of our hotel?” And ask for a scale of 1-5. Learn More > Multiple selection question Multiple selection questions contain a list of options and ask respondents to select all that apply. For example, the question “what kind of music do you like?” will contain a list of music types so respondents can select all types they prefer. Learn More >

Naming Tests Studies concerning the names of things–new product names, new website URLs, new brand names or even the name of a new film or TV show–naming tests help reveal potential perception issues that can occur. For example, does one title effectively convey what the product or service is? Does the name defy expectations and surprise the user? Net Promoter Score (NPS) Net Promoter Score is a widely used customer/consumer experience test that asks a simple question: on a scale of 1-10, how likely are you to recommend this business, brand, product or service to a friend or colleague? Respondents who rate 0-6 are detractors, 7-8 are considered passive and 9-10 are considered promoters. Learn More > NPS Survey An NPS Survey asks the Net Promoter Score question to a specified target population. This allows companies to gauge how well they are doing on the NPS scale with their specific target customer or potential customer. Learn More > Numeric open-ended question An open-ended question that requires a numeric answer. For example, researchers may ask how much money you’d potentially pay for a product or service. Learn More >

Open-ended question Open-ended questions do not require the respondent to select from a specific list of responses, but instead asks them to type their response into a text box. Open-ended questions, therefore, are less definitive, seeking to gather more qualitative responses, getting at the feelings and broader opinions from the respondent in their own words. Learn More >

Package Testing Studies that provide consumer feedback on product packaging. Would you be more or less likely to buy a product with new packaging? Does the packaging effectively convey what is inside? How do your potential customers feel when they look at your new packaging? Pre/Post Studies A pre-post study examines whether participants in an intervention improve or become worse off during the course of the intervention, and then attributes any such improvement or deterioration to the intervention. Product / Market Fit Product/Market fit is a the degree to which a particular product meets the demands of the market it is in. Have you created the minimum viable product for your market, that solves a problem or need that exists? Product/Market fit studies aim to survey early adopters or potential customers to see if the product meets previously identified criteria for satisfaction within a market. Product Testing A final test of a product, product testing gives users access to a prototype and seeks to identify opinions–positive or negative–of a product before it goes to market.

Qualitative survey question Qualitative research focuses on personalized behavior, such as habits or motivations behind their decisions. This can be gathered through contextual inquiries or interviews to learn more about feelings, attitudes, and habits that are harder to quantify but offer important additional context to support statistical data. Learn More > Quantitative survey question Quantitative survey questions are those that can be expressed numerically, meaning they require respondents to select from a pre-selected list of potential responses. Learn More >

Ranking question Similar to a single-selection matrix, ranking questions ask users to rank different elements of a product or service on a numerical scale. Learn More > Rating stars A question where respondents answer using a scale of a number of stars. Learn More >

Screening question Screening questions help researchers ensure they are getting the exact sample they want using filtering that falls outside of available targeting criteria. For example, if you only want to include people in your survey who have seen the movie Pulp Fiction, your screening question would ask potential respondents if they have seen the film, and screen them based on their answers. Learn More > Single selection question A question providing a list of potential responses, from which respondents may choose one answer. Learn More > Slider question A question where respondents answer by dragging a button across a slider to provide a rating. Learn More >

Usability Testing Usability testing aims to test user experience changes on real users to determine if the experience has been positively or negatively impacted by any changes. Unlike more traditional product testing, usability testing usually focuses more on design changes and more commonly relates to app or software development. UX Testing Any testing related to the overall user experience of a product (usually app or software). UX testing tends to be more holistic than Usability testing, running qualitative and quantitative studies of each phase of the user journey.

Video question A question where respondents much watch a video in its entirety before answering.

One of the most important factors in DIY survey creation is avoiding bias. Survey bias reduces data quality, threatening the integrity of your consumer insights.

We have gone in-depth on ways to root out survey bias here. But to fully understand the different types of bias you may have to contend with, here are some helpful definitions.

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Acquiescence Bias Also referred to as “yea-saying,” Acquiescence bias occurs when respondents are overly agreeable, to the point of contradicting themselves. You can avoid this by limiting the number of questions asking respondents to simply agree or disagree, as these statements often result in over-agreement. Learn More > Alternators Alternators are survey takers that fill in responses in familiar patterns, simply alternating responses but not engaging with the questions. You can avoid this by mixing in some open-ended, audio or video questions. If responses appear to be biased, Pollfish will remove them from your sample. Learn More >

Double-Barreled Questions Double-barrelled questions happen when researchers blend two questions into one, and then allow for only one answer. The respondent must agree in total with a statement they may only partially believe, creating incomplete or biased responses. For example, “Did you find the product interesting and helpful? Yes or no?” Learn More >

Extreme Responding If given the option, some respondents will select only the most extreme option. Make sure to mix up your question types. If you have several scales or rating questions, make sure to mix in some others that require a bit more attention. Learn More >

Leading Question Leading questions use biased language to influence respondents in a direction. Keep questions as simple and direct as possible, taking care to remove any editorializing adjectives that may betray a preference towards one response or another. Learn More > Loaded Question Loaded questions make assumptions. For example, asking “what kind of candy do you get when you go to the movies?” assumes the respondent goes to the movies, eats candy and gets candy at the movies. This creates a biased environment where the respondent may not be able to answer accurately. Learn More >

Order Bias The order you list question responses in a quantitative survey question can bias respondents towards choices higher on the list. If your survey platform has the ability, use answer shuffling to remove the potential for this bias. Learn More >

Prestige Question Inserting prestige into a question by citing an expert opinion one way or another biases the respondent towards the expert’s opinion. For example, “Doctors say smoking causes cancer. Do you agree?” or “Do you support the President’s policy on Zimbabwe?” Learn More >

Self-Selection Bias This occurs when respondents are allowed, through whatever means, to opt out of taking a survey based on its content. This biases the results by oversampling people with a previous interest or overly polarized opinion on a given topic. Learn More > Social Desirability Bias This occurs when respondents will attempt to discern what the researchers want them to say and respond accordingly. This often occurs when participants see the brand or topic ahead of time and try to give answers the company or researcher may want to hear. Avoid exposing this information, or asking any leading or loaded questions that may betray an interest. Learn More > Speeders Respondents who complete surveys far too fast to have actually read the questions or truly contemplated answers. Pollfish removes these respondents through AI and machine learning algorithms. Learn More > Stereotype Question When researchers infuse bias into survey questions, they open the potential for respondents to agree with or defy that bias. If, for example, a survey question reminds respondents that gender stereotypes exist around math, that question may have planted a seed in the mind of respondents that changes responses. Avoid this type of language at all costs. Learn More > Straight-Liners When respondents answer using the first available choice for every question. Respondents answering in familiar patterns in order to complete surveys faster will be removed from the Pollfish sample. Learn More >

Sometimes, we get so excited about the features of Pollfish, we forget to define them all for you!

So we decided to explain them all in one place. Feel free to bookmark this section so you can return to it as you read through resources.pollfish.com.

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Advanced branching Also known as skip logic, advanced branching allows you to show respondents different questions based on responses to earlier questions. For example, if a respondent says they have tried your product, you can show them one set of questions and if they have not, you can show them different questions. Branching provides an alternative to screening questions. Learn More > App Monetization App monetization refers to the method or methods app publishers use to make money on their apps. There are a variety of app monetization strategies and platforms. Pollfish provides a way for app publishers to immediately monetize their creations by installing the Pollfish SDK and exposing their user base to Pollfish surveys. Learn More >

Programmatic Advertising Programmatic advertising refers to the automated buying and selling of online advertising. Pollfish functions on a programmatic advertising model, delivering surveys in much the same way advertisers deliver ads in apps. Learn More >

Quotas If a survey must meet a set percentage of participants from an age or gender group, you can set quotas.

Radius Targeting When setting geographic targeting on your Pollfish survey, you can select a city, congressional district or town. You can also use our Radius Targeting tool to select a specific radius on a map to target your survey. Learn More >

Skip Logic Also known as Branching, skip logic allows you to show respondents different questions based on responses to earlier questions. For example, if a respondent says they have tried your product, you can show them one set of questions and if they have not, you can show them different questions. Skip logic provides an alternative to screening questions. Learn More > Survey Stratification Stratified sampling involves dividing a population into smaller sub-populations called strata. There are many ways of accomplishing this, including balancing using predetermined quotas before you run your survey, or weighting your results after the fact. Learn More >

Weighting A type of stratification where quotas–often pegged to pre-existing data like a local or national census–are used to weight respondent pools to more accurately reflect the population being surveyed. With Pollfish, you can weight your survey results to the local or national census (where available) with the push of a button. Learn More >

Do you want to distribute your survey? Pollfish offers you access to millions of targeted consumers to get survey responses from $0.95 per complete. Launch your survey today.

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Module 13: Marketing Function

The marketing research process, learning outcomes.

• Explain the process and goal of market research
• Explain how market research helps marketers validate their target markets

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

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

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

Click on the image for a larger view.

Step 1: Identify the Problem

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

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

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

Marketing Research for Bookends

Your uncle Dan owns an independent bookstore called Bookends, and it’s not doing very well. (That’s you in the picture.) The store’s sales are down, and the rent is going up. Dan has turned to you for help, since you know a thing or two about marketing.

You need a lot of information if you’re going to help your uncle turn things around, so marketing research is a good idea. You begin by identifying the problem and then work to set down your research objectives and initial research questions:

Step 2: Develop a Research Plan

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

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

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

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

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

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

A Bookends Research Plan

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

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

Step 3: Conduct the Research

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

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

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

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

Getting the Data on Bookends

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

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

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

Step 4: Analyze and Report Findings

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

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

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

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

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

Analysis and Insights for Bookends: Target market validation

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

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

Step 5: Take Action

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

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

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

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

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

Bookends’ New Customer Campaign

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

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

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

Well done, rookie!

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Home » Research Project – Definition, Writing Guide and Ideas

Research Project – Definition, Writing Guide and Ideas

Table of Contents

Research Project

Definition :

Research Project is a planned and systematic investigation into a specific area of interest or problem, with the goal of generating new knowledge, insights, or solutions. It typically involves identifying a research question or hypothesis, designing a study to test it, collecting and analyzing data, and drawing conclusions based on the findings.

Types of Research Project

Types of Research Projects are as follows:

Basic Research

This type of research focuses on advancing knowledge and understanding of a subject area or phenomenon, without any specific application or practical use in mind. The primary goal is to expand scientific or theoretical knowledge in a particular field.

Applied Research

Applied research is aimed at solving practical problems or addressing specific issues. This type of research seeks to develop solutions or improve existing products, services or processes.

Action Research

Action research is conducted by practitioners and aimed at solving specific problems or improving practices in a particular context. It involves collaboration between researchers and practitioners, and often involves iterative cycles of data collection and analysis, with the goal of improving practices.

Quantitative Research

This type of research uses numerical data to investigate relationships between variables or to test hypotheses. It typically involves large-scale data collection through surveys, experiments, or secondary data analysis.

Qualitative Research

Qualitative research focuses on understanding and interpreting phenomena from the perspective of the people involved. It involves collecting and analyzing data in the form of text, images, or other non-numerical forms.

Mixed Methods Research

Mixed methods research combines elements of both quantitative and qualitative research, using multiple data sources and methods to gain a more comprehensive understanding of a phenomenon.

Longitudinal Research

This type of research involves studying a group of individuals or phenomena over an extended period of time, often years or decades. It is useful for understanding changes and developments over time.

Case Study Research

Case study research involves in-depth investigation of a particular case or phenomenon, often within a specific context. It is useful for understanding complex phenomena in their real-life settings.

Participatory Research

Participatory research involves active involvement of the people or communities being studied in the research process. It emphasizes collaboration, empowerment, and the co-production of knowledge.

Research Project Methodology

Research Project Methodology refers to the process of conducting research in an organized and systematic manner to answer a specific research question or to test a hypothesis. A well-designed research project methodology ensures that the research is rigorous, valid, and reliable, and that the findings are meaningful and can be used to inform decision-making.

There are several steps involved in research project methodology, which are described below:

Define the Research Question

The first step in any research project is to clearly define the research question or problem. This involves identifying the purpose of the research, the scope of the research, and the key variables that will be studied.

Develop a Research Plan

Once the research question has been defined, the next step is to develop a research plan. This plan outlines the methodology that will be used to collect and analyze data, including the research design, sampling strategy, data collection methods, and data analysis techniques.

Collect Data

The data collection phase involves gathering information through various methods, such as surveys, interviews, observations, experiments, or secondary data analysis. The data collected should be relevant to the research question and should be of sufficient quantity and quality to enable meaningful analysis.

Analyze Data

Once the data has been collected, it is analyzed using appropriate statistical techniques or other methods. The analysis should be guided by the research question and should aim to identify patterns, trends, relationships, or other insights that can inform the research findings.

Interpret and Report Findings

The final step in the research project methodology is to interpret the findings and report them in a clear and concise manner. This involves summarizing the results, discussing their implications, and drawing conclusions that can be used to inform decision-making.

Research Project Writing Guide

Here are some guidelines to help you in writing a successful research project:

• Choose a topic: Choose a topic that you are interested in and that is relevant to your field of study. It is important to choose a topic that is specific and focused enough to allow for in-depth research and analysis.
• Conduct a literature review : Conduct a thorough review of the existing research on your topic. This will help you to identify gaps in the literature and to develop a research question or hypothesis.
• Develop a research question or hypothesis : Based on your literature review, develop a clear research question or hypothesis that you will investigate in your study.
• Design your study: Choose an appropriate research design and methodology to answer your research question or test your hypothesis. This may include choosing a sample, selecting measures or instruments, and determining data collection methods.
• Collect data: Collect data using your chosen methods and instruments. Be sure to follow ethical guidelines and obtain informed consent from participants if necessary.
• Analyze data: Analyze your data using appropriate statistical or qualitative methods. Be sure to clearly report your findings and provide interpretations based on your research question or hypothesis.
• Discuss your findings : Discuss your findings in the context of the existing literature and your research question or hypothesis. Identify any limitations or implications of your study and suggest directions for future research.
• Write your project: Write your research project in a clear and organized manner, following the appropriate format and style guidelines for your field of study. Be sure to include an introduction, literature review, methodology, results, discussion, and conclusion.
• Revise and edit: Revise and edit your project for clarity, coherence, and accuracy. Be sure to proofread for spelling, grammar, and formatting errors.
• Cite your sources: Cite your sources accurately and appropriately using the appropriate citation style for your field of study.

Examples of Research Projects

Some Examples of Research Projects are as follows:

• Investigating the effects of a new medication on patients with a particular disease or condition.
• Exploring the impact of exercise on mental health and well-being.
• Studying the effectiveness of a new teaching method in improving student learning outcomes.
• Examining the impact of social media on political participation and engagement.
• Investigating the efficacy of a new therapy for a specific mental health disorder.
• Exploring the use of renewable energy sources in reducing carbon emissions and mitigating climate change.
• Studying the effects of a new agricultural technique on crop yields and environmental sustainability.
• Investigating the effectiveness of a new technology in improving business productivity and efficiency.
• Examining the impact of a new public policy on social inequality and access to resources.
• Exploring the factors that influence consumer behavior in a specific market.

Characteristics of Research Project

Here are some of the characteristics that are often associated with research projects:

• Clear objective: A research project is designed to answer a specific question or solve a particular problem. The objective of the research should be clearly defined from the outset.
• Systematic approach: A research project is typically carried out using a structured and systematic approach that involves careful planning, data collection, analysis, and interpretation.
• Rigorous methodology: A research project should employ a rigorous methodology that is appropriate for the research question being investigated. This may involve the use of statistical analysis, surveys, experiments, or other methods.
• Data collection : A research project involves collecting data from a variety of sources, including primary sources (such as surveys or experiments) and secondary sources (such as published literature or databases).
• Analysis and interpretation : Once the data has been collected, it needs to be analyzed and interpreted. This involves using statistical techniques or other methods to identify patterns or relationships in the data.
• Conclusion and implications : A research project should lead to a clear conclusion that answers the research question. It should also identify the implications of the findings for future research or practice.
• Communication: The results of the research project should be communicated clearly and effectively, using appropriate language and visual aids, to a range of audiences, including peers, stakeholders, and the wider public.

Importance of Research Project

Research projects are an essential part of the process of generating new knowledge and advancing our understanding of various fields of study. Here are some of the key reasons why research projects are important:

• Advancing knowledge : Research projects are designed to generate new knowledge and insights into particular topics or questions. This knowledge can be used to inform policies, practices, and decision-making processes across a range of fields.
• Solving problems: Research projects can help to identify solutions to real-world problems by providing a better understanding of the causes and effects of particular issues.
• Developing new technologies: Research projects can lead to the development of new technologies or products that can improve people’s lives or address societal challenges.
• Improving health outcomes: Research projects can contribute to improving health outcomes by identifying new treatments, diagnostic tools, or preventive strategies.
• Enhancing education: Research projects can enhance education by providing new insights into teaching and learning methods, curriculum development, and student learning outcomes.
• Informing public policy : Research projects can inform public policy by providing evidence-based recommendations and guidance on issues related to health, education, environment, social justice, and other areas.
• Enhancing professional development : Research projects can enhance the professional development of researchers by providing opportunities to develop new skills, collaborate with colleagues, and share knowledge with others.

Research Project Ideas

Following are some Research Project Ideas:

Field: Psychology

• Investigating the impact of social support on coping strategies among individuals with chronic illnesses.
• Exploring the relationship between childhood trauma and adult attachment styles.
• Examining the effects of exercise on cognitive function and brain health in older adults.
• Investigating the impact of sleep deprivation on decision making and risk-taking behavior.
• Exploring the relationship between personality traits and leadership styles in the workplace.
• Examining the effectiveness of cognitive-behavioral therapy (CBT) for treating anxiety disorders.
• Investigating the relationship between social comparison and body dissatisfaction in young women.
• Exploring the impact of parenting styles on children’s emotional regulation and behavior.
• Investigating the effectiveness of mindfulness-based interventions for treating depression.
• Examining the relationship between childhood adversity and later-life health outcomes.

Field: Economics

• Analyzing the impact of trade agreements on economic growth in developing countries.
• Examining the effects of tax policy on income distribution and poverty reduction.
• Investigating the relationship between foreign aid and economic development in low-income countries.
• Exploring the impact of globalization on labor markets and job displacement.
• Analyzing the impact of minimum wage laws on employment and income levels.
• Investigating the effectiveness of monetary policy in managing inflation and unemployment.
• Examining the relationship between economic freedom and entrepreneurship.
• Analyzing the impact of income inequality on social mobility and economic opportunity.
• Investigating the role of education in economic development.
• Examining the effectiveness of different healthcare financing systems in promoting health equity.

Field: Sociology

• Investigating the impact of social media on political polarization and civic engagement.
• Examining the effects of neighborhood characteristics on health outcomes.
• Analyzing the impact of immigration policies on social integration and cultural diversity.
• Investigating the relationship between social support and mental health outcomes in older adults.
• Exploring the impact of income inequality on social cohesion and trust.
• Analyzing the effects of gender and race discrimination on career advancement and pay equity.
• Investigating the relationship between social networks and health behaviors.
• Examining the effectiveness of community-based interventions for reducing crime and violence.
• Analyzing the impact of social class on cultural consumption and taste.
• Investigating the relationship between religious affiliation and social attitudes.

Field: Computer Science

• Developing an algorithm for detecting fake news on social media.
• Investigating the effectiveness of different machine learning algorithms for image recognition.
• Developing a natural language processing tool for sentiment analysis of customer reviews.
• Analyzing the security implications of blockchain technology for online transactions.
• Investigating the effectiveness of different recommendation algorithms for personalized advertising.
• Developing an artificial intelligence chatbot for mental health counseling.
• Investigating the effectiveness of different algorithms for optimizing online advertising campaigns.
• Developing a machine learning model for predicting consumer behavior in online marketplaces.
• Analyzing the privacy implications of different data sharing policies for online platforms.
• Investigating the effectiveness of different algorithms for predicting stock market trends.

Field: Education

• Investigating the impact of teacher-student relationships on academic achievement.
• Analyzing the effectiveness of different pedagogical approaches for promoting student engagement and motivation.
• Examining the effects of school choice policies on academic achievement and social mobility.
• Investigating the impact of technology on learning outcomes and academic achievement.
• Analyzing the effects of school funding disparities on educational equity and achievement gaps.
• Investigating the relationship between school climate and student mental health outcomes.
• Examining the effectiveness of different teaching strategies for promoting critical thinking and problem-solving skills.
• Investigating the impact of social-emotional learning programs on student behavior and academic achievement.
• Analyzing the effects of standardized testing on student motivation and academic achievement.

Field: Environmental Science

• Investigating the impact of climate change on species distribution and biodiversity.
• Analyzing the effectiveness of different renewable energy technologies in reducing carbon emissions.
• Examining the impact of air pollution on human health outcomes.
• Investigating the relationship between urbanization and deforestation in developing countries.
• Analyzing the effects of ocean acidification on marine ecosystems and biodiversity.
• Investigating the impact of land use change on soil fertility and ecosystem services.
• Analyzing the effectiveness of different conservation policies and programs for protecting endangered species and habitats.
• Investigating the relationship between climate change and water resources in arid regions.
• Examining the impact of plastic pollution on marine ecosystems and biodiversity.
• Investigating the effects of different agricultural practices on soil health and nutrient cycling.

Field: Linguistics

• Analyzing the impact of language diversity on social integration and cultural identity.
• Investigating the relationship between language and cognition in bilingual individuals.
• Examining the effects of language contact and language change on linguistic diversity.
• Investigating the role of language in shaping cultural norms and values.
• Analyzing the effectiveness of different language teaching methodologies for second language acquisition.
• Investigating the relationship between language proficiency and academic achievement.
• Examining the impact of language policy on language use and language attitudes.
• Investigating the role of language in shaping gender and social identities.
• Analyzing the effects of dialect contact on language variation and change.
• Investigating the relationship between language and emotion expression.

Field: Political Science

• Analyzing the impact of electoral systems on women’s political representation.
• Investigating the relationship between political ideology and attitudes towards immigration.
• Examining the effects of political polarization on democratic institutions and political stability.
• Investigating the impact of social media on political participation and civic engagement.
• Analyzing the effects of authoritarianism on human rights and civil liberties.
• Investigating the relationship between public opinion and foreign policy decisions.
• Examining the impact of international organizations on global governance and cooperation.
• Investigating the effectiveness of different conflict resolution strategies in resolving ethnic and religious conflicts.
• Analyzing the effects of corruption on economic development and political stability.
• Investigating the role of international law in regulating global governance and human rights.

Field: Medicine

• Investigating the impact of lifestyle factors on chronic disease risk and prevention.
• Examining the effectiveness of different treatment approaches for mental health disorders.
• Investigating the relationship between genetics and disease susceptibility.
• Analyzing the effects of social determinants of health on health outcomes and health disparities.
• Investigating the impact of different healthcare delivery models on patient outcomes and cost effectiveness.
• Examining the effectiveness of different prevention and treatment strategies for infectious diseases.
• Investigating the relationship between healthcare provider communication skills and patient satisfaction and outcomes.
• Analyzing the effects of medical error and patient safety on healthcare quality and outcomes.
• Investigating the impact of different pharmaceutical pricing policies on access to essential medicines.
• Examining the effectiveness of different rehabilitation approaches for improving function and quality of life in individuals with disabilities.

Field: Anthropology

• Analyzing the impact of colonialism on indigenous cultures and identities.
• Investigating the relationship between cultural practices and health outcomes in different populations.
• Examining the effects of globalization on cultural diversity and cultural exchange.
• Investigating the role of language in cultural transmission and preservation.
• Analyzing the effects of cultural contact on cultural change and adaptation.
• Investigating the impact of different migration policies on immigrant integration and acculturation.
• Examining the role of gender and sexuality in cultural norms and values.
• Investigating the impact of cultural heritage preservation on tourism and economic development.
• Analyzing the effects of cultural revitalization movements on indigenous communities.

About the author

Muhammad Hassan

Researcher, Academic Writer, Web developer

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