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The 8 types of market research: definitions, uses and examples.

13 min read What are the different types of market research that can help you stay ahead of the curve with your marketing strategy? Understand how to use each type, and what the advantages and disadvantages are.

Market research  (also called marketing research) is the action or activity of gathering information about market needs and preferences. This helps companies understand their target market — how the audience feels and behaves. There are 8 variations of market research in our lineup that we’ll explore in more detail.

Download our free eBook: How to rethink and reinvent market research

A number of the tools for carrying out market research can be classed under two main categories: primary and secondary market research. Let’s start our list by exploring these two types first.

1. Primary research

Primary research is research that you collect yourself but going directly to the target market through a range of methods. Because it is data you create, you own the data set.

Two types of results — exploratory information (determines the nature of a problem that hasn’t yet been clearly defined) and conclusive information (carried out to solve a problem that exploratory research identified) — from participants are collected as raw data and then analysed to gather insights from trends and comparisons.

This method is good for getting the views of a lot of people at one time, especially when time is short, but it comes with its own management issues. The interviewer must prepare a way to gather answers and record these, while engaging in conversation with many people.

Participants may be affected by the group setting, either from acquiescence bias (the desire to say yes to please the interviewer), dominance bias (stronger participants can alter the results from less dominant participants) or researcher bias (where the research leads or impacts the participant responses indirectly).

This provides a structured setting where the interviewer can listen to what’s being said and investigate further into an answer. The interviewer can also pick up on non-verbal cues from body language can help the interview understand where to deep-dive and broaden their understanding.

However, some of the same biases (acquiescence and researcher) still exit in this format. The method is time consuming to do the interviews and collect the data afterwards.

A survey is an excellent method for carrying out primary research as participants do need to be physically present with the interviewer to carry it out. The survey can be completed anywhere there is an internet connection, meaning there is flexibility for the participants to use different devices and for interviewers to contact participants in different geographical time-zones.Preparation is key, however, as the researchers must segment the market and create a list of participants to send the survey to. Hiring a panel or using existing marketing lists can help with this.

2. Secondary research

Secondary research is the use of data that has previously been collected, analysed and published (and therefore you do not own this data). An example of this for market research is:

Most information is freely available, so there are less costs associated with this kind of secondary research over primary research methods.

Secondary research can often be the preparation for primary research activities, providing a knowledge base. The information gathered may not provide the specific information to explain the results, which is where primary market research would be used to enhance understanding.

There is also a logistics planning need for a recording solution that can handle large datasets, since manual management of the volumes of information can be tricky.

Both primary and secondary research have its advantages and disadvantages, as we’ve seen, but they are best used when paired together. Combined, the data can give you the confidence to act knowing that any hypothesis you have is backed up.

Learn more about primary and secondary research methods

The next market research types can be defined as qualitative and quantitative research types:

3. Qualitative research

Qualitative market research is the collection of primary or secondary data that is non-numerical in nature, and therefore hard to measure.

Researchers collect this market research type because it can add more depth to the data.

This kind of market research is used to summarise and infer, rather than pin-points an exact truth held by a target market. For example, qualitative market research can be done to find out a new target market’s reaction to a new product to translate the reaction into a clear explanation for the company.

4. Quantitative research

Quantitative research is the collection of primary or secondary data that is numerical in nature, and so can be collected more easily.

Researchers collect this market research type because it can provide historical benchmarking, based on facts and figures evidence.

There are a number of ways to collect this data — polls, surveys, desk research, web statistics, financial records — which can be exploratory in nature without a lot of depth at this stage.

Quantitative market research can create the foundation of knowledge needed by researchers to investigate hypotheses further through qualitative market research.

Learn more about qualitative and quantitative research

The next four variations of market research are specific to topics areas, that bring about specific information.:

5. Branding research

Branding  market research assists a company to create, manage and maintain the company brand. This can relate to the tone, branding, images, values or identity of the company.

Research can be carried out through interviews, focus groups or surveys. For example, brand awareness surveys will ask your participants whether the brand is known to them and whether it is something they would be interested in buying.

Additional areas for brand research is also around brand loyalty,  brand perception ,  brand positioning ,  brand value  and brand identity .

The aim of research will be to understand how to know if:

• Your brand is performing in relation to other competitors
• There are areas to improve your brand activities
• There are positives to showcase to enhance your brand’s image

6. Customer research

Customer market research looks at the key influences on your target customers and how your company can make changes to encourage sales.

The aim of this research is to know your customer inside out, and continuously learn about how they interact with the company. Some themes covered by this include:

• Customer satisfaction  – Exploring what keeps customers happy, as higher customer satisfaction is more likely to lead to increased customer retention.
• Customer loyalty  – This looks at what experiences have happened to lead to greater customer loyalty across the customer lifecycle.
• Customer segmentation research  – Discovering who the customers are, what their behaviour and preferences are and their shared characteristics.

Relevant desk research may look at historical purchase records,  customer journey mapping , customer segmentation, demographics and persona templates.

Primary research, such as  NPS  and  customer satisfaction surveys , or customer satisfaction interviews at the end of customer support calls, can also give more details.

7. Competitor research

Competitor market research is about knowing who your competition is and understanding their strengths and weaknesses, in comparison to your organisation. It can also be about your competitive offering in the market, or how to approach a new market.

The aim of this research is to find ways to make your organisation stand out and future planning through horizon scanning and listening to customer preferences.

For example, for competitive analysis, researchers would create a SWOT for your business and your competitors, to see how your business compares.

Primary research could interview customers about their buying preferences, while secondary sources would look at competitor’s market dominance, sales, structure and so on. With this thorough analysis, you can understand where you can change to be more competitive, and look for ideas that make you stand out.

8. Product research

Product market research is a key way to make sure your products and services are fit for launching in the market, and are performing as well as they can.

The aim of this research is to see how your product is perceived by customers, if they are providing value and working correctly. Ideas can also be formed about upgrades and future product development.

There are a number of avenues within product research:

• Product branding  – Does the product brand and design attract customers in the intended way?
• Product feature testing  – this can happen at various stages of development with target markets (in early development, between versions, before product launch, etc.) to check if there are positive reaction to new or improved features
• Product design  thinking  – what solutions would solve your customers’ current or future problems?
• Product marketing  – Do the marketing messages help your product’s memorability and saleability, or can they be improved?

Primary research methods have a clear advantage in this kind of market research: Surveys can ask for rankings on the popularity or usefulness of features or conduct conjoint analysis, while in-person observation interviews (where the participant can handle a product) can be particularly useful in seeing what customers do with the product in real time.

How to use market research types in your company

In a good marketing strategy, it’s preferable to have a mixture of data across:

• Qualitative and quantitative research
• Primary and secondary research
• Your specific topic area or area of focus

With these three components, you can make sure your market strategy gives you a complete picture of your market’s  operational data and experience data , —  what  your market does and  why .

Economical experience data (O data)

This type of experience data is quantitative in nature (including operations, featuring sales data, finance data and  HR data ). As it can be quantified into numerical values, it can be measured over and over, providing datasets.

There is the opportunity to use a data-driven approach to understanding the results and making predictions based on historical trends.

This sort of data can be measured more easily than emotions and feelings. But it can only tell you about past activities and what happened. It can’t tell you what will happen in the future and why things will happen — this is where X data comes in.

Emotional experience data (X data)

This type of experience data seeks to find reasons to explain emotional decisions and how brands ‘sit’ in people’s minds. In this way, this data is qualitative in nature.

Companies that have X data have a ‘mental advantage’ over other companies,  as they are able to understand the perceptions of the customer, their needs and values.

When you have tangible insights on the audience’s needs, you can then take steps to meet those needs and solve problems. This mitigates the risk of an experience gap – which is what your audience expects you deliver versus what you actually deliver.

eBook: How to rethink and reinvent market research

Related resources

Market intelligence 9 min read, qualitative research questions 11 min read, ethnographic research 11 min read, business research methods 12 min read, qualitative research design 12 min read, business research 10 min read, qualitative research interviews 11 min read, request demo.

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Types of market research: Methods and examples

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

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

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

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

Market research definition

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

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

What is market research?

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

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

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

What are the types of market research?

Primary research .

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

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

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

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

Secondary research 

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

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

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

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

Qualitative research

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

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

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

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

Quantitative research

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

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

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

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

Consumer research 

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

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

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

Product research 

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

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

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

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

Brand research  

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

It covers things like brand awareness, brand perceptions, customer advocacy, advertising effectiveness, purchase channels, audience profiling, and whether or not the brand is a top consideration for consumers.

The result helps take the guesswork out of your messaging and brand strategy. Like all types of market research, it gives marketing leaders the data they need to make better choices based on fact rather than opinion or intuition.

Market research methods 

So far we’ve reviewed various different types of market research, now let’s look at market research methods, in other words the practical ways you can uncover those all-important insights.

Consumer research platform 

A consumer research platform like GWI is a smart way to find on-demand market research insights in seconds.

In a world of fluid markets and changing attitudes, a detailed understanding of your consumers, developed using the right research platform, enables you to stop guessing and start knowing.

As well as providing certainty, consumer research platforms massively accelerate speed to insight. Got a question? Just jump on your consumer research platform and find the answer – job done.

The ability to mine data for answers like this is empowering – suddenly you’re in the driving seat with a world of possibilities ahead of you. Compared to the most obvious alternative – commissioning third party research that could take weeks to arrive – the right consumer research platform is basically a magic wand.

Admittedly we’re biased, but GWI delivers all this and more. Take our platform for a quick spin and see for yourself.

And the downside of using a consumer research platform? Well, no data set, however fresh or thorough, can answer every question. If you need really niche insights then your best bet is custom market research , where you can ask any question you like, tailored to your exact needs.

Face-to-face interviews 

Despite the rise in popularity of online surveys , face-to-face survey interviewing – using mobile devices or even the classic paper survey – is still a popular data collection method.

In terms of advantages, face-to-face interviews help with accurate screening, in the sense the interviewee can’t easily give misleading answers about, say, their age. The interviewer can also make a note of emotions and non-verbal cues. 

On the other hand, face-to-face interviews can be costly, while the quality of data you get back often depends on the ability of the interviewer. Also, the size of the sample is limited to the size of your interviewing staff, the area in which the interviews are conducted, and the number of qualified respondents within that area.

Social listening 

Social listening is a powerful solution for brands who want to keep an ear to the ground, gathering unfiltered thoughts and opinions from consumers who are posting on social media. 

Many social listening tools store data for up to a couple of years, great for trend analysis that needs to compare current and past conversations.

Social listening isn’t limited to text. Images, videos, and emojis often help us better understand what consumers are thinking, saying, and doing better than more traditional research methods. 

Perhaps the biggest downside is there are no guarantees with social listening, and you never know what you will (or won’t) find. It can also be tricky to gauge sentiment accurately if the language used is open to misinterpretation, for example if a social media user describes something as “sick”.

There’s also a potential problem around what people say vs. what they actually do. Tweeting about the gym is a good deal easier than actually going. The wider problem – and this may shock you – is that not every single thing people write on social media is necessarily true, which means social listening can easily deliver unreliable results.

Public domain data 

Public domain data comes from think tanks and government statistics or research centers like the UK’s National Office for Statistics or the United States Census Bureau and the National Institute of Statistical Sciences. Other sources are things like research journals, news media, and academic material.

Its advantages for market research are it’s cheap (or even free), quick to access, and easily available. Public domain datasets can be huge, so potentially very rich.

On the flip side, the data can be out of date, it certainly isn’t exclusive to you, and the collection methodology can leave much to be desired. But used carefully, public domain data can be a useful source of secondary market research.

Telephone interviews 

You know the drill – you get a call from a researcher who asks you questions about a particular topic and wants to hear your opinions. Some even pay or offer other rewards for your time.

Telephone surveys are great for reaching niche groups of consumers within a specific geographic area or connected to a particular brand, or who aren’t very active in online channels. They’re not well-suited for gathering data from broad population groups, simply because of the time and labor involved.

How to use market research 

Data isn’t an end in itself; instead it’s a springboard to make other stuff happen. So once you’ve drawn conclusions from your research, it’s time to think of what you’ll actually do based on your findings.

While it’s impossible for us to give a definitive list (every use case is different), here are some suggestions to get you started.

Leverage it . Think about ways to expand the use – and value – of research data and insights, for example by using research to support business goals and functions, like sales, market share or product design.

Integrate it . Expand the value of your research data by integrating it with other data sources, internal and external. Integrating data like this can broaden your perspective and help you draw deeper insights for more confident decision-making.

Justify it . Enlist colleagues from areas that’ll benefit from the insights that research provides – that could be product management, product development, customer service, marketing, sales or many others – and build a business case for using research.

How to choose the right type of market research 

Broadly speaking, choosing the right research method depends on knowing the type of data you need to collect. To dig into ideas and opinions, choose qualitative; to do some testing, it’s quantitative you want.

There are also a bunch of practical considerations, not least cost. If a particular approach sounds great but costs the earth then clearly it’s not ideal for any brand on a budget.

Then there’s how you intend to use the actual research, your level of expertise with research data, whether you need access to historical data or just a snapshot of today, and so on.

The point is, different methods suit different situations. When choosing, you’ll want to consider what you want to achieve, what data you’ll need, the pros and cons of each method, the costs of conducting the research, and the cost of analyzing the results. 

Market research examples

Independent agency Bright/Shift used GWI consumer insights to shape a high-impact go-to-market strategy for their sustainable furniture client, generating £41K in revenue in the first month. Here’s how they made the magic happen .

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Market 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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2023 Guide to Market Research: Key Strategies and Best Practices

When Steve Sasson—a Kodak engineer—invented the first digital camera in 1975, a breakthrough in photography was born. However, Kodak wasn’t interested—it was a film company, and Sasson’s digital camera threatened to disrupt its core business. Despite an extensive market research effort confirming the imminent shift from film to digital, Kodak continued to double down on its film business until it filed for bankruptcy in 2012.

The moral of the story is that strategic decisions need to be based on accurate market research in order to avoid costly mistakes, especially when they entail reinvention. Kodak is just one example—another common scenario in which a company might need to reinvent itself is when it’s looking to expand into new markets . Be it a new or adapted product or service, a new target audience, or new business models—changing tack to cater to a new market can be a make-or-break moment for businesses.

That’s why, if you’re looking to take your product global, conducting market research should be a key part of your strategy. Venturing into unfamiliar markets armed with solid market intelligence can help you make the most of opportunities and avoid pitfalls. In this article, we will discuss best practices for market research as a key component of a global expansion , and how you can make the most of it.

What is market research?

Market research is the process of collecting and analyzing data about a target market to understand consumer preferences and purchasing decisions. Companies can use this information to better inform their business strategies, such as what products or services to develop, how to adapt them to different market conditions, or what factors can affect demand.

When a company operates globally or is trying to enter new markets, market research becomes even more important. This is because culture and geography can have a big impact on consumer behavior. To be successful, you need to understand the nuances of each market and tailor your products and marketing strategies accordingly.

Market research vs marketing research

It’s common to see the terms “market research” and “marketing research” used interchangeably, but they actually refer to two different things.

Market research is a broad category that includes all types of data collection and analysis related to a target market. The aim is to understand the market, including the needs of consumers and the dynamics of competition.

Marketing research, on the other hand, is more specific and refers to the process of collecting and analyzing data to assess and identify the changing elements of the marketing mix (product, price, place, and promotion).

For example, if you want to launch a new product in the Spanish market, you would first conduct market research to assess whether there is a demand for it, what the market size, what market trends are, and what the competition looks like.

Once you have this information, you can then move on to marketing research for concept testing and to determine how to market the product , what channels to use for distribution, and what kind of marketing campaigns will be most effective.

Both activities do share some similarities, though: They may use the same data sources and methods, and the line between them can sometimes be blurry. Ultimately, the goal of both is to generate insights that can be used to make better business decisions.

Why is market research important?

There are many reasons why market research is important, but perhaps the most important is that it helps you reduce risk. When you have a clear understanding of your target market and what they want, you are much less likely to make costly mistakes.

In the context of globalization , market research can help you assess the potential of new markets and make informed decisions about where to allocate resources. It can also help you develop strategies for entering new markets, such as identifying the most effective channels for marketing and distribution.

When you’re expanding your business into new markets informed by market research, you’re much more likely to:

• Develop successful products and services: By understanding your customers’ needs , you can develop products and services that they will actually want to buy.
• Increase sales: By understanding your target market’s buying habits, pain points, and motivators, you can develop marketing campaigns that are more likely to resonate and result in sales.
• Improve customer satisfaction: If you know what your customers want, you can deliver it to them, resulting in happier customers who are more likely to continue doing business with you.
• Reduce costs by avoiding duplicate effort: Market intelligence allows you to allocate resources strategically and get it right the first time. For example, you can avoid spending money on conventional translation for marketing campaigns that require more creative adaptation to be effective in a new market.
• Get localization right: A good localization strategy is a key to success in any new market. But without market intelligence, it can be difficult to know how to adapt your products and marketing materials for a new culture. For example, you might not realize that certain colors have different connotations in different cultures, or that video content gives you a higher return on investment in one market but not another.

Arming yourself with nothing but assumptions can lead to less-than-optimal results—and this is especially true when expanding into new markets. When legal systems, consumer preferences, and business practices differ from country to country, the risks are even greater, and so should your commitment to market research.

Market analytics vs market research

A common misconception is that market research and analytics mean the same. In reality, they’re two distinct ways of doing consumer investigation, and they serve different purposes.

Market analytics is the process of collecting and analyzing data to unveil patterns and trends. This data can come from a variety of sources, including surveys, social media, transactional data, and web analytics. For example, you might use market analytics to track how often certain foreign-language keywords are being searched for on Google or to understand which demographics are most likely to purchase your product outside your home market.

Market research, on the other hand, captures data to answer specific questions. For example, a company might want to know what factors influence its customers’ purchase decisions in a particular market, or what the barriers to entry are for a new product.

Market analytics can help generate hypotheses that you can then test through market research. You can think of analytics as the inward-looking “what” (What happens? What are the trends?) and market research as the outward-looking “why” (Why does it happen? Why do people want this?).

When you leverage market analytics and market research together, you can get a well-rounded view of your target market and what they want. This, in turn, helps you make better business decisions and avoid costly mistakes.

What types of market research are there?

There are several types of market research depending on the questions you want to answer, the type of data you need, the resources that you have available, and the timeline that you are working with.

Primary market research vs secondary market research

Primary research is the first-hand research that you conduct yourself. This could involve surveys, interviews, focus groups, or any other type of research method where you directly interact with consumers.

Secondary research is the intelligence that someone else has already gathered and published. This includes data from government reports, trade associations, industry journals, commercial data providers, and other published sources.

Quantitative market research vs qualitative market research

Quantitative research focuses on numbers and statistics. For example, if you want what percentage of people in a certain age group prefer your product over a competitor’s, you would use quantitative research. Polls, surveys, desk research, web statistics, and consumer panels are all quantitative research methods.

Qualitative research, on the other hand, focuses on understanding people’s opinions, motivations, and behaviors. Multilingual sentiment analysis, ethnography, and in-depth interviews are all qualitative research methods.

Exploratory market research vs conclusive market research

You use exploratory research to generate hypotheses and identify key variables. This type of research is frequent at the beginning of a project to get a better understanding of the problem. For example, if you want to know why customers are leaving your website in a foreign market, you might use exploratory research to generate hypotheses that you can then test through further market research.

Conclusive research is used to test hypotheses and measure relationships. This type of research usually comes after exploratory research. For example, if your exploratory research suggests that customers are leaving your website because the current user experience isn’t considering their cultural preferences—think things like imagery or payment methods—you could use conclusive research to measure the impact of a new user interface that takes these cultural preferences into account.

Branding research

Branding research helps you create, manage, and measure the success of your brand. This type of research can help you understand how customers perceive your brand, what associations they have with it, and how well your brand is positioned in the market.

When expanding globally, branding research can help you strike the right balance between global brand consistency and local brand relevance. It can also help you understand how to adapt your brand messaging and identity to different cultures.

Product development research

Product development research helps you establish if there is a market for your product or service and what features or benefits customers are looking for. This type of research can help you understand the viability of your product, optimize its characteristics, and ensure it performs well before taking it to market.

Most global companies adapt their product offering to local markets. Product development research can help you understand what features or benefits are most important to customers in different countries so you can out-compete local companies.

Customer research

Customer research is a type of market research that can serve different purposes, from segmenting your customer base to measuring customer satisfaction. In the context of international operations, customer research can help you understand how to appeal to different customer segments in different countries.

For example, when you know that 64% of Asian-Pacific customers are willing to share personal data for a tailored online experience, you can use this information to improve your website design and user experience in the region.

The main types of customer research are:

• Customer satisfaction research: Also known as customer experience research, this type of research helps you understand how customers feel about your product or service. This includes understanding what they like and don’t like, their unmet needs, and how likely they are to recommend your product or service to others.
• Customer segmentation research: Segmentation research helps you understand how to divide your customer base into smaller groups with shared characteristics. This type of research can help you better target your marketing efforts and create more personalized experiences for your customers.
• Consumer insights: Consumer insights are actionable, research-based observations about your customers. They go beyond demographic information to include things like customer values, preferences, and behaviors. For example, if you want to understand why customers in a certain market are choosing your competitor’s product over yours, consumer insights research could help you uncover the reasons.

Competitive market research

Competitive market research helps you understand what your competitors are doing. This can include things like their marketing strategies, product offerings, pricing, and distribution channels. Understanding your competitor’s strengths and weaknesses can help you make informed decisions about how to position your own product or service in the market.

How to do market research?

Like every complex process, you can break market research down into smaller, more manageable steps. Here’s a high-level overview of how to do market research:

Identify your target audience

The first step in any market research project is to identify your target audience. This will help you focus your research efforts and ensure that you’re gathering information that’s relevant to your business. For example, if you’re planning an expansion to the Brazilian market, an example of a target audience you might identify would be “Brazilian upper-middle-class women ages 25-40.”

Define your research objectives

Identify an issue, problem, or opportunity that you want to understand better. For example: “I want to understand what payment methods Brazilian upper-middle-class women ages 25-40 prefer when shopping online so we can optimize our checkout process.”

Select your research methods

Once you’ve identified your target audience and objectives, you’ll need to select the research methods that will help you gather the data you need. There are many different market research methods, some of which are quantitative and some of which are qualitative. In the case above, to find out the preferred payment methods of Brazilian shoppers, you might conduct a survey.

Develop your research plan

Once you’ve selected your methods, you move on to developing your research plan. This should include a detailed description of how you’ll execute your project, including timelines, budgets, and any risks or challenges you anticipate. For example, if you’re planning to conduct interviews in Brazil, you’ll need to consider things like language barriers and cultural differences.

Collect and analyze your data

Once you’ve executed your research plan, it’s time to collect and analyze your data. This can be a complex process, depending on the methods you’ve used and the type of data you’ve gathered. In the case of a survey, you might use statistical software to analyze your results.

Present your findings

After you’ve analyzed your data, you’ll need to present your findings in a way that’s easy for others to understand. The stakeholders in your business will use these findings to make decisions about things like product development, marketing, and expansion plans. How you present your findings will depend on the type of data you’ve collected and the objectives of your research. For example, if you’re presenting the results of a survey, you might create a report or presentation that includes charts and graphs.

The above steps are a high-level overview of the market research process. In practice, each project will be unique, and you’ll need to tailor your approach to fit the specific needs of your business.

What are some key market research methods? 

We’ve briefly touched on some of the most common market research methods, but let’s take a closer look at each one:

Surveys involve collecting data from a target audience through questions administered either in person, by phone, or online. They can be used to gather data about a wide range of topics, including consumer behavior, preferences, and opinions.

• Surveys are relatively easy and inexpensive to administer.
• They can provide a great deal of immediate information.
• Their extensive reach gives you insights about a large number of people.
• Analyzing survey data is typically straightforward.
• Surveys can be time-consuming to administer and analyze.
• It can be difficult to find people who are willing to participate.
• Survey results can be skewed by the way you word questions or by the order in which you ask them .

How to do it right:

• Avoid asking too many questions so as not to overwhelm respondents
• Make sure your questions are clear and concise
• Try to ask neutral questions that don’t lead respondents to a particular answer
• Include open-ended questions to encourage respondents to give more detailed answers.

Interviews are a type of market research that involve conducting in-depth conversations with individuals from a target audience. They can be used to gather data about a wide range of topics, including attitudes, beliefs, and motivations.

• Interviews can provide a great deal of rich, detailed information about a small number of people.
• You can conduct them online if needed.
• They allow you to build empathy with your audience.
• The resources required to administer interviews (e.g., time, money, personnel) can be significant.
• It can be challenging to find people who are willing to participate (incentives might be necessary to encourage participation).
• They don’t reach an audience as extensive as surveys do.
• Choose the most appropriate format for your interview—e.g., in-person, phone, video chat, etc.
• Make sure to explain to the respondent what the interview will entail and how you will use their responses.
• Build rapport by repeating back what the respondent says and showing empathy
• Leave time for follow-up questions.

Focus groups

Many companies choose to bring together a group of potential customers to discuss a product or service before it’s launched. This type of market research is called a focus group, and it can be used to gather data about things like reactions, perceptions, and opinions.

• Focus groups can provide rich, detailed information about a small number of people.
• They can provide insights into the purchase decision-making process.
• You can easily measure customer reactions to a product’s design, packaging, price and message.
• They aren’t as in-depth as interviews.
• They can be expensive to conduct.
• They can be biased by the moderator’s questions or the group dynamics—like a dominant personality in the group who steers everyone’s opinions.
• People might not give honest feedback if you’re paying them to participate.
• Ensure the recruiting process is well-designed so you end up with a diverse and representative group of participants.
• Use skilled and experienced moderators who know how to keep the discussion on track.
• Pay attention to the nonverbal cues of participants—e.g., body language.
• Establish ground rules at the beginning of the session.
• Consider and pre-empty potential intercultural communication issues.

Observational research

When you observe people, you’re looking at their behavior in a natural setting. This type of market research can be used to gather data about a wide range of topics, including shopping habits, use of public spaces, and interactions with technology. There’s both overt and covert observational research, depending on whether or not participants are aware that they’re being watched.

• Observational research is relatively easy and inexpensive to conduct.
• Natural surroundings can provide insights that would be difficult or impossible to glean from other types of market research.
• The researcher’s own biases can skew the data.
• It can be time-consuming to observe people for extended periods of time.
• People might not behave naturally if they’re aware that someone’s watching them.
• When conducting covert observational research, be sure to follow all ethical guidelines.
• When conducting overt observational research, make sure to get the consent of participants.
• Always capture context.
• Try to avoid bias by maintaining a detached and objective attitude.
• Be sure to take detailed notes or record videos of the behavior you’re observing.
• Complete debriefing notes as soon as possible after the observation so the data is fresh in your mind.

What are some best practices for market research?

For any market research project, it’s important to keep the following best practices in mind:

Define your scope and objectives clearly

Unless you know what you’re trying to learn, it will be difficult to design an effective market research project. Based on your product offering, target market, and expansion goals, you should be able to define the scope and objectives of your project. These will help guide the rest of your decisions.

Get input from stakeholders early on

People whom the results of the market research will affect—e.g., marketing, sales, leadership—should be involved from the outset to help shape the project. Their input will ensure that the objectives of the market research are aligned with the company’s goals, and it will help ensure buy-in for the project from key stakeholders.

Consider cultural differences

If you’re expanding into new markets, it’s important to be aware of cultural differences that could affect your market research. For example, some cultures might consider it impolite to ask certain types of questions, or the interpretation of body language might be different. Working with local market research partners can help you navigate these differences.

Choose the right method

While it’s tempting to assume that any research method will eventually get you the information you need, that’s often not the case. For example, if you’re trying to learn about the associations that your content is getting in a foreign market to spot and fix any cultural missteps, a multiple-choice survey with predefined answers might not be the most optimal method.

Pilot-test your methods

Before you launch a full-scale market research project, it’s important to pilot-test your methods to make sure they’re effective. This will help you identify any potential problems so that you can fix them before they impact your data.

Analyze your results carefully

All the data in the world won’t be of any use if you don’t take the time to analyze it carefully. When reviewing your results, look for both quantitative and qualitative trends, and try to identify any potential sources of bias. Moreover, if you’ve conducted the research in a language other than your own, it’s a good idea to enlist the help of professional localizers who can help you interpret the results—they’ll be familiar with the nuances of the language and culture that you might not be.

Communicate your findings effectively

Communication can be a challenge when dealing with market research since you’re often dealing with complex data sets. However, presenting your findings in a way that’s clear and actionable for stakeholders is crucial if you want your research to have an impact.

Follow up with respondents

If you’ve collected data from respondents, it’s important to follow up with them after the fact. This shows that you value their input. Moreover, if you’ve acted on any of their feedback, be sure to let them know the results—e.g., a feature they suggested was added to the product, their feedback helped shape a new marketing campaign, etc. This can make a big impression and solidify your relationship with respondents.

Effective market research must be systematic

When done right, market research is a powerful tool that can help companies make informed decisions about their expansion strategies. However, a lack of planning and foresight can lead to wasted effort and resources.

By following a systematic process and keeping best practices in mind, you can ensure that your market research is effective and informative. The result is a stronger market expansion strategy and a better chance of success in new markets.

Last updated on August 11, 2023.

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Types of Market Research Explained and How to Use Them

6 min. read

Updated May 10, 2024

As a small business, you must understand your market, target customers, and brand. 

This knowledge significantly affects your decision-making, marketing effectiveness, and potential for business growth.

And while the steps to do market research are relatively simple—your research options are far more complex.

Let’s explore the different types of market research and how to apply them to your business.

• 1. Primary research

Primary market research is first-hand information you collect from customers within your market.

For business owners:

Use this method when validating your business idea . Break it down into two result categories — exploratory and specific.

Exploratory is non-quantifiable customer feedback. You’re not looking to measure results but gauge interest or an emotional response.

Now, follow up with very specific questions that can be quantified. Use this to evaluate the value of a product or service, your market direction, and product/market fit. 

Your goal is to come back with numerical (purchases, revenue, estimated sales, etc.) insights to drive and support your decisions.

Research methods:

• 1:1 Interviews
• Focus groups
• Observations

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• 2. Secondary research

Secondary research covers every other piece of data you have available. This includes resources such as:

• Public sources: Typically free and highly accessible information gathered through government-sponsored research projects. 
• Commercial sources: Research studies conducted by private organizations regarding the state of specific markets, industries, or innovations. 
• Internal sources: Data you have collected through everyday business operations.

For business owners: 

Secondary research is a cost-effective way to gather existing information on the industry, market trends, and competitors. It helps you benchmark against industry standards and identify potential market opportunities.

Use this research as a starting point. It can inform the direction of more costly primary research methods. 

• Industry reports
• Market statistics
• Academic publications
• News articles
• In-house data
• 3. Qualitative research

Qualitative research is the collection of information that is not reliant on numbers making it difficult to measure. It adds depth or context to quantitative research by measuring sentiment or collecting responses to open-ended questions.

Qualitative research delves deep into customer psychologies, helping you understand the reasons behind their choices. This can guide product development, branding, and marketing strategies to better resonate with your audience.

• In-depth interviews
• Case studies
• 4. Quantitative research

The collection of numerical data can be easily collected and analyzed. It should be seen as exploratory. Your goal is to uncover evidence or trends that can be explored further through qualitative research. 

Quantitative research provides measurable data that you can then analyze. 

Short-term, it helps you make data-driven decisions, forecast trends, and understand the market size and segmentation. Long-term, it’s your baseline for performance that can be referenced in additional market research efforts. 

• Financial data
• 5. Observational research

Researchers observe and record the actions of participants. This can be done in a formal or informal setting. 

For example, you want to open a coffee shop and need to understand the total foot traffic in a specific area. You could stake out the location and count the number of people that pass by over a set period.

Observational research offers genuine real-time insights into how customers interact with products or services. 

You can identify potential pain points, understand if features meet expectations, and even improve  

• Direct observation
• Participant observation
• Time-lapse videos
• Eye-tracking studies
• 6. Competitive analysis

Research competitors in the market to understand their strategies, strengths, and weaknesses.

A competitive analysis helps position your business. 

You’ll identify your unique selling points, opportunities to improve, and potential threats to your business. 

• SWOT analysis
• Competitor benchmarking
• Mystery shopping
• Online monitoring
• 7. Branding research

This focuses on how a brand is perceived in the market. It relates to your company’s tone, imagery, design, and overall values.

Branding research can help in creating, managing, or maintaining your brand. 

You can research brand awareness, loyalty, perception, value, and positioning. For this research to be effective, you must have a distinct purpose. 

Typically, you’re attempting to gauge overall performance, identify opportunities to enhance your brand or diminish areas that do not reflect it.   

• Brand awareness surveys
• Brand loyalty assessments
• Social listening (brand mentions, interactions, etc.)
• 8. Customer research

This involves gathering insights directly from current or potential customers to understand their needs, preferences, and experiences.

Customer research is pivotal in ensuring your business meets customer needs and expectations. It can guide customer service improvements, enhance loyalty, and increase customer lifetime value.

• Customer satisfaction surveys
• Net Promoter Score (NPS) surveys
• Customer feedback forms
• Customer interviews
• 9. Product research

This focuses on evaluating a product’s performance, acceptance, and potential improvements in the market.

Product research helps refine product features, understand its market fit, and identifying areas for innovation. It ensures that the product meets customer needs and stays competitive.

You can test hypothetical solutions, product features, branding, and marketing collateral. Ideally, you’d test each of these elements in specific phases. And let the results inform the direction of each step.

• Product usage surveys
• Product testing and trials
• Feature preference studies
• Concept testing
• 10. Experimental research

Involves manipulating one variable to determine if it causes a change in another.

Experimental research can help test hypotheses about market behaviors, allowing for optimization of product features, pricing strategies, or marketing campaigns based on actual results.

• Controlled experiments
• Field experiments
• A/B testing
• Lab experiments
• 11. Field trials

Testing products, services, or promotions in a real-world setting before a full-scale launch.

Field trials use a real-world testing ground to gauge the effectiveness of a new product or campaign and make necessary adjustments before a broader rollout.

For physical products, this could be done geographically. Where only a select number of locations receive and sell a given product.

For software or services, you can beta test with a selection of users. Ideally, these are dedicated customers deep in your solution and can provide pointed feedback.

• Product sampling
• Test marketing
• Beta testing
• Store audits
• How to choose the best research method(s) for your business

You’ll end up using several types of market research. You may have even noticed how many of the market research methods overlapped. 

What you start with depends on several factors:

Why you’re doing this research and the desired results will influence your chosen methods. 

For those starting a business, focus on getting market data and direct customer insight. You want a broad understanding of the market you’re entering, your competitors, and where you fit. 

You also need to know your target market. Quantitative data is a great starting point, but you won’t have a clear picture without direct conversation.

Research requires monetary investment. Whether it’s purchasing reports, hiring a research firm, or compensating a tester. You should account for the payroll cost if it’s you or an employee doing the research. 

Research doesn’t have to be expensive. Many online tools offer free or affordable options for surveys and feedback collection. But if you need to go deeper, you’ll likely need to pay more.

Time investment

Research requires time. Time to run, analyze, and report. You need to understand how long a specific method will take and the return you expect.

Remember, it may take time now, but it will ideally save you time (and money) in the future.

• Explore more on marketing research

Choosing how you’ll conduct market research is just part of the process. Check out our curated selection of resources to learn more about: 

• Finding your customer
• Get to know your competitors
• Market research tools

Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.

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How to do Market Research: a Step-by-Step Guide

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Looking for the best way to do market research? From framing your initial question to extracting valuable customer insights, we’ll walk you through the lean market research process step-by-step. You will learn effective techniques for collecting and analyzing data , with practical tips on applying your findings to benefit your SaaS. Get ready to empower your decisions with real-world market intelligence.

• Market research is vital for making informed business decisions, enabling companies to understand the market, target audience, and competitors, reducing risks, and optimizing marketing communications and product strategies .
• Effective market research requires clear and measurable objectives, guiding decision-making and ensuring relevance to the project’s needs, and should be accompanied by appropriate methods , including both primary and secondary research .
• Applying insights from market research to product development and marketing strategies can significantly enhance business growth. This allows businesses to tailor their offerings and engage more effectively with their target market.

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What is market research

Essentially, market research is the process of understanding one’s target audience’s needs and wants to validate a new product, feature, or service idea. It involves probing and extracting answers based on empirical evidence instead of relying on hunches or speculative judgment.

Why should you do market research?

Understanding your consumers’ behavior and needs well through methodical market research is vital for informed decision-making when it comes to your product roadmap. These choices can make or break your SaaS company. Without thorough market research, you’re navigating blindly, basing crucial judgments on antiquated notions of customer habits, imprecise economic gauges, or untested assumptions rather than solid competitive analysis.

The outcome? Sharper marketing messages, savvy product development strategies, and an intimate grasp of both prospective buyers and existing customers’ preferences and needs.

Identifying your market research goals

Before you do anything – you need to determine specific and actionable goals of your market research project. Setting SMART (specific, measurable, achievable, relevant and time-bound) goals will help you stay on track, come up with better market research questions and achieve more reliable results faster.

For effective market research outcomes, your goals must be:

• Quantifiable .
• Attainable.
• Directly aligned with project requirements.

Having established unambiguous goals prior to delving into data analysis sets up a solid foundation ensuring pivotal questions, hypotheses, and indicators are systematically tackled during effective market research.

Market research methods

Now that you understand the role of well-defined research objectives, let’s examine the different types of market research and research techniques for realizing these goals. These methods are essentially your toolkit for extracting valuable insights and they fall into two broad categories: primary research and secondary research . Choosing between them depends on many factors such as your budget, time availability, and whether you’re looking for more exploratory research data or concrete answers.

Engaging in primary research is comparable to unearthing precious metals—it requires gathering new information straight from sources through several approaches including:

• Focus groups.

This approach gives you first-hand insight into your target audience.

Conversely, secondary research uses already established datasets of primary data – which can add depth and reinforcement to your firsthand findings. For a 360 view of your market trends, combine both techniques – exploratory primary research and secondary channels of inquiry.

Let’s look a bit deeper into them now.

What is primary market research?

Market research uses primary market research as an essential tool. This involves collecting new data directly from your target audience using various methods, such as surveys , focus groups, and interviews.

Each method has its benefits. For example, observational studies allow you to see how consumers interact with your product.

There are many ways to conduct primary research.

Focus Groups : Hold discussions with small groups of 5 to 10 people from your target audience. These discussions can provide valuable feedback on products, perceptions of your company’s brand name, or opinions on competitors.

Interviews : Have one-on-one conversations to gather detailed information from individuals in your target audience.

Surveys : These are a common tool in primary market research and can be used instead of focus groups to understand consumer attitudes. Surveys use structured questions and can reach a broad audience efficiently.

Navigating secondary market research

While market research using primary methods is like discovering precious metals, secondary market research technique is like using a treasure map. This approach uses data collected by others from various sources, providing a broad industry view. These sources include market analyses from agencies like Statista, historical data such as census records, and academic studies.

Secondary research provides the basic knowledge necessary for conducting primary market research goals but may lack detail on specific business questions and could also be accessible to competitors.

To make the most of secondary market research, it’s important to analyze summarized data to identify trends, rely on reputable sources for accurate data, and remain unbiased in data collection methods.

The effectiveness of secondary research depends significantly on how well the data is interpreted, ensuring that this information complements the insights from primary research.

The role of qualitative and quantitative data in market research

In market research, there are two main types of data: qualitative and quantitative. Qualitative data explores the reasons behind consumer actions, collecting non-numeric information to understand consumer behaviors and motivations. For more on gathering and analyzing qualitative data, see How to Analyse Qualitative Data . On the other hand, quantitative data uses numeric data to measure consumer preferences, behaviors, and market sizes. To learn more about handling this type of data, check out User Analytics .

A thorough market analysis usually combines both qualitative and quantitative data. This approach provides a full view of the market by merging detailed qualitative insights with concrete quantitative statistics. For more on combining these approaches, refer to Generative vs. Evaluative Research .

Gathering qualitative insights

Qualitative research involves direct engagement with customers, like having detailed discussions. It includes observational studies that capture genuine consumer reactions. This type of research provides deep insights into consumer perceptions, brand comparisons, consumer behavior, and feedback on specific product features.

Studies on customer satisfaction and loyalty reveal effective strategies for keeping customers and what keeps them loyal, such as loyalty programs and quality customer service. The strength of qualitative research lies in its ability to dig deeper than just numbers, reaching insights that quantitative data might miss. By using qualitative data to customize experiences, businesses can increase customer satisfaction, interaction , and loyalty, leading to greater business growth.

Analyzing quantitative data

Quantitative research provides precision and the ability to measure findings using structured data collection methods like polls and surveys. Product analytics tools such as Userpilot , Amplitude , Heap , and Mixpanel are highly effective for collecting and organizing quantifiable data. This type of data is crucial for identifying trends and insights, which can help businesses track important performance indicators such as conversion rates or customer lifetime value , supporting their growth strategies.

Quantitative research data is divided into two types: discrete data, which includes countable numbers, and continuous data, which consists of numbers that can have fractions or decimals. These are vital for revealing important demographic information.

Segmenting your target market

Market research plays a key role in segmenting your target audience into manageable segments.

These market segments are typically grouped by similar needs or attributes, and display similar responses in marketing research surveys and initiatives. The full market segmentation process is vital for comprehensively grasping and satisfying the requirements of your targeted consumer base.

Accumulating demographic information forms the basis for executing effective market segmentation strategies. Businesses prioritize obtaining user data such as:

• Job functions.
• Organizational scale.
• Customer demographics profiles.
• Lifestyle choices.
• Values systems.
• Product usage patterns.

This information can be collected in the initial sign-up flow (through a signup flow survey; see the Asana example below) or by conducting comprehensive market research surveys .

At its core, successful market segmentation enables businesses to communicate effectively in their target customers’ dialects while catering explicitly to their distinct demands.

Userpilot allows you to easily segment your users not only by demographic information, company size, plan, or role – but also by their in-app engagement ( behavioral segmentation ):

In summary, the techniques used to create detailed analyses, like conducting specialized surveys and carefully collecting relevant participant information, are crucial for identifying groups within a larger target population. These groups are defined by usage patterns and broad demographic and economic indicators, enabling companies to not only reach but also deeply connect with each niche market they aim to capture.

Creating buyer personas based on your market research

Creating buyer personas is a strategic process that helps businesses better understand and cater to their target customers. Here’s how you can systematically approach creating effective buyer personas:

• Gather Initial Data : Start by collecting basic demographic information such as age, gender, location, and education level. This can come from existing customer databases, market research, or industry reports.

• Segment the Audience : Based on the collected data, segment your audience into distinct groups. Each segment should represent a type of customer with similar characteristics and behaviors. This segmentation helps in personalizing marketing and sales strategies effectively.
• Build Detailed Personas : For each segment, create a detailed persona that includes not only demographic and behavioral traits but also psychographics like interests, values, and lifestyle. Each persona should tell the story of an ideal customer, making them relatable for your marketing team.
• Refine Over Time : Buyer personas are not static. As you gather more data and the market evolves, revisit and refine your personas to keep them relevant and accurate.
• Utilize Tools Like Userpilot : Tools such as Userpilot can enhance this process by providing analytics that reveal how users interact with your product. This can confirm hypotheses or uncover new insights about user preferences and behaviors, which can be integrated into existing personas to make them even more accurate.

By carefully crafting and continually updating buyer personas, businesses can achieve a deeper understanding of their customers. This enables them to tailor their offerings and communications effectively, thereby enhancing customer engagement and satisfaction.

Recruiting participants for primary research

Choosing the right participants for primary research is a crucial step in market research. It’s important to find individuals who can provide relevant and meaningful consumer feedback, on your product or service, as this feedback is key to developing accurate user personas.

Userpilot can be instrumental in this process. It collects data on how users interact with and use your products, helping you identify who might be the best candidates for more detailed studies, such as interviews.

To efficiently recruit participants for interviews, Userpilot’s in-app features, such as in-app modals with embedded surveys can be extremely useful. You can use these tools to engage directly with users who meet your specific criteria, right within your app.

This method not only simplifies the recruitment process but also ensures that you’re interacting with the most relevant users. By leveraging these features, you can gather deep insights that significantly enhance the development of your user personas, ensuring your research is both timely and informed.

Competitive analysis for strategic advantage

Competitive analysis helps businesses understand their rivals’ strategies. It involves identifying which industries or markets to target and listing key competitors to gain a clear view of the competitive environment. This includes evaluating competitors’ market share, strengths, weaknesses, and potential entry barriers, often using tools like SWOT analysis.

By understanding competitors’ operations and past marketing efforts, businesses can craft new strategies, pinpoint opportunities, and learn from competitors’ mistakes. Employing market research, brand perception surveys, and market statistics, alongside analytical frameworks like Porter’s Five Forces Model, helps businesses uncover new opportunities and maintain a competitive advantage.

Ultimately, competitive analysis uses the understanding of competition to fuel business growth.

Conducting effective market research surveys

Primary market research often uses surveys as a cost-effective way to gather data. These surveys reach wide audiences and provide quick feedback. It’s crucial to carefully plan the creation and distribution of these surveys to ensure they are effective. Given the high amount of web traffic from mobile devices, it’s particularly important to make surveys mobile-friendly.

To get the most comprehensive data, include both quantitative (closed-ended) and qualitative (open-ended) questions in your survey . Offering incentives like financial compensation or vouchers can encourage participation, but it’s important to manage these carefully to avoid biasing the responses.

Well-designed surveys are like direct interviews with your target audience and are key to obtaining valuable insights about their views and experiences.

Userpilot offers over 50 in-app survey templates along with a bespoke builder, which are important tools for collecting the right responses. These features allow you to tailor surveys precisely to your needs, ensuring you gather accurate and relevant data directly from your users. By leveraging these templates and customizing them with the bespoke builder, you can effectively engage your audience and enhance the quality of insights you receive. This setup is crucial for conducting efficient and effective market research.

Analyzing and interpreting market research data

Once you have collected data through surveys, market research data analysis is the next critical step. It involves identifying patterns, establishing connections, and extracting insights that inform business decisions.

Userpilot’s analytics suite offers deep and easily accessible insights into your market research data:

This process starts with preparing the data by cleaning and organizing it to ensure accuracy and ease of analysis. Depending on the study’s goals, various analytical methods can be used, from simple descriptive statistics to complex multivariate analyses, all chosen to provide meaningful insights.

The core of this analysis aims to uncover market trends and understand industry specifics, which can highlight key factors such as impactful customer experiences, profitable products or services, and effective marketing strategies. Communicating these findings effectively involves presenting them in clear reports and using visual aids while making practical recommendations and addressing any limitations in the research scope or methods. Ultimately, data analysis transforms raw data into compelling narratives that offer actionable business intelligence.

Applying market research to product or service development

Market research is much more than just collecting data and uncovering insights; it’s a vital tool for driving business growth and guiding product development at every stage. Here’s how market research supports business throughout the product lifecycle:

• Concept Creation : Helps identify market needs and opportunities to inform the initial product idea.
• Building a Business Case : Provides evidence and data to justify investment in the new product.
• Product Development : Offers insights into customer preferences and feedback for refining product features.
• Market Introduction : Aids in strategizing the launch, targeting the right audience, and setting the right price.
• Lifecycle Management : Continuously gathers data on customer usage and satisfaction to enhance the product over time.

Consider a B2B SaaS company that develops project management software. By engaging in targeted market research activities like surveys and doing focus group call groups among its business clients, the company can:

• Understand Business Needs : Gain insights into the specific project management challenges and needs of different industries.
• Refine Product Features : Discover which software features are most valued by businesses, such as integration capabilities, user-friendliness, or specific tools for collaboration.
• Tailor Marketing Strategies : Identify the most effective communication channels and messaging that resonate with business clients, such as emphasizing efficiency gains or return on investment.

Market research guides businesses from the initial idea through to launch and beyond, acting as a strategic tool that ensures all actions are aligned with market demands and customer needs , ultimately aiming for successful business outcomes.

Utilizing tools for efficient market research

Using tools like Userpilot, SurveyMonkey, Google Forms, and Typeform, market researchers can reach a wide audience and get fast responses. These platforms help to design, distribute, and analyze surveys efficiently.

Userpilot stands out by allowing businesses to create targeted in-app experiences that engage users directly where they are most active—within the app itself. This direct engagement method improves the quality of the feedback collected as it relates to specific features or user experiences.

Userpilot also offers features such as demographic filtering and behavioral-based segmentation, which speeds up the process of finding and recruiting the right participants for market research.

These tools are essential for performing detailed and effective market research. They break down geographic and cultural barriers, offer access to diverse user groups, and enable businesses to conduct deep, actionable analyses across different market segments.

Translating research findings into business growth

Market research does more than just gather and analyze data; it aims to transform these insights into tangible business improvements. This process is crucial in guiding product development and helping increase a company’s market share by informing targeted strategies. For instance, a B2B SaaS company could use market research to:

• Tailor marketing strategies specifically for key user personas.
• Identify the most valued features for your users.
• Develop pricing strategies that appeal to companies of different sizes.
• Gain insight into the specific needs and expectations of their customers.

By implementing effective market research techniques, companies can customize their products or services to better serve their target audience’s needs, fundamental for stimulating company growth . Conducting personalized market research adds value, while collaborating with specialized firms may yield additional profound insights.

Market research is not just about collecting data; it’s about deeply understanding your customers, spotting opportunities, and making informed decisions that drive your business forward. It provides essential insights into the market and business environment, influencing how potential clients perceive your company.

By conducting competitor analysis and market research, organizations can:

• Connect with their target audience.
• Understand their competitive position.
• Plan strategically for future initiatives.
• Gain insights into customer perceptions of their brand, uncovering new perspectives or opportunities for improvement.

Since competitors also use market research to their advantage, engaging in these analytical processes is crucial for a comprehensive marketing strategy, aimed at business growth.

Start your own market research and journey today to pave the way to success.

Frequently asked questions

What is market research and why is it important.

Understanding their target market through collected information and insights, businesses can make informed decisions, diminish risks, and enhance marketing strategies with the aid of market research. This ensures that choices are based on reliable data, which is crucial for business success.

What is the difference between primary and secondary research?

To summarize, primary research entails the gathering of original data directly from the source, whereas secondary research utilizes previously compiled data sources to add perspective and reinforce conclusions derived from primary research.

How does market research guide product development?

By offering critical data on consumer habits and preferences, market research steers the enhancement of product features, thereby influencing decisions across all stages of a product’s life cycle and aiding in the evolution of product development.

What tools can be used for efficient market research?

Platforms such as Userpilot, SurveyMonkey, Google Forms, and Typeform can be leveraged alongside technologies that are driven by data to simplify the process of crafting, disseminating, and examining online surveys which play a crucial role in conducting market research effectively.

How can market research translate into business growth?

By informing product development, marketing strategies, and identifying opportunities for growth through enlightened decision-making, market research results can propel business expansion.

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What Is Market Research?

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

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How to Do Market Research, Types, and Example

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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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• Introduction to Market Research and the Research Process

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• Market Research

Learn about the broad set of activities that fall within the realm of “market research.”

Market research is an evolving profession responsible for meeting a growing list of demands. As a result, market research tools are changing rapidly for an increasingly complex world.

This online Principles Express course introduces you to the broad set of activities that define “market research.” It will help you understand the many roles and purposes that research plays in business and other settings and how being a researcher often places you at the heart of decision-making

Register today for a Webinar: Specialty Certifications for Market Research/Insights Professionals on January 13, 2022.

Learning Objectives

Who should attend, course information.

Market research connects companies to their customers.

Market research is a key process by which a firm understands the needs, wants, and desires of customers and translates those needs into solutions that meet business objectives.

Decision makers use market research to develop strategies and tactics that minimize risk. Market research typically focused on increasing the efficiency and effectiveness of the company’s productive capacity, thereby increasing the return on investment.

Market research is an evolving profession responsible for meeting a growing list of demands. As a result, market research tools are changing rapidly for an increasingly complex world. At the same time, a number of fundamental aspects of the field remain unchanged, and provide continuity with a distinguished heritage serving business, other types of organizations, and society as a whole.

After completing this course you should be able to:

• Describe how the role and function of market research relate to the role and function of marketing organizations as a whole.
• Name the different types of business decisions in which market research is used by companies to develop strategy and tactics.
• Describe the relationship between strategic decision makers and market research.
• List the six steps in the market research process.
• Discuss the basic marketing information needs and research methods used to address these needs, including ways to collect and analyze relevant information needed in consumer, business, government, healthcare, and institutional markets.
• Acquire an appreciation of the complexities of international market research, including the ways in which research methods and interpretation can differ in global versus local market settings.
• Illustrate how market research can identify the strongest positioning and messaging that organizations can use in communicating with consumers and other audiences.
• Review the basic issues in product (and services) management, planning and development as related to the product life cycle, brand strategy, product research, and decision making.
• Identify the different types of companies that comprise the market research industry by the services they offer.
• Describe the recent evolution of market research to take advantage of emerging data sources (such as online data collection and large datasets) and analysis methods (such as text analysis, data mining, and modeling).
• Describe the ethical considerations that guide market research activity--including data collection and reporting--to clients, participants, and the public.

Successful enrollees earn a Digital Badge and 1.4 University of Georgia Continuing Education Units (CEUs).

• Market researchers in client-facing roles looking to advance their careers.
• Client-side researchers responsible for synthesizing and disseminating research results within their companies.
• Mid-level staff seeking to expand their skillset.
• Experienced researchers looking to catch up with the latest developments in communicating market research findings.
• Corporations seeking professional development options for their internal training portfolio.
• Supplier-side researchers seeking courses for new-employee onboarding.
• Mid-level professionals wanting to expand their skillsets beyond population sampling, data collection, and analysis of data subsets.
• People just entering the research field who want to understand the full process of market research from beginning to end.
• Enroll at any time
• Complete the course's required graded components within 30 days
• For more details on How Does “Introduction to Research Design and Research Process” Course Work , please click on the downloadable file.
• For Frequently Asked Questions , please click on the downloadable file.

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$329 - Association Discount (Members* of: Insights Association; ESOMAR; Canadian Research Insights Council, The Research Society, Intellus Worldwide, QRCA, AMAI, WAPOR-Latinoamérica, MRII Board of Directors, UGA MMR Advisory Board.)

$50 - One-Month Extension (only one extension is granted per participant)

*Membership will be verified.

Prepayment is required to be registered. The prices listed are per person (US Funds). Prices are subject to change.

C. Frederic (Fred) John – Founder and Principal, Consilience Research & Consulting, LLC

Continuing Education Information

Students successfully completing graded components earn a Digital Badge and 1.4 University of Georgia Continuing Education Unit (CEU) from The University of Georgia.

As a graduate of the course you will be recognized by industry associations, employers, peer groups and other professionals as understanding how to translate your research findings into reports and presentations that grab your audience’s attention, address the business decision your client needs to make, and offer sound and useful recommendations. This recognition will help you advance in your company and the industry.

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Suggested Textbook (not required) Malhotra, Naresh K., Essentials of Marketing Research: A Hands-On Orientation, Pearson Education: Upper Saddle River, NJ. ISBN-13: 978-­0-13-340182-0 (digital subscription edition)

Included in the online course are suggested reading assignments from the above textbook. These readings are not required content and will not be part of the testing for the course. The textbook suggestions are simply intended to add additional depth to your understanding of the topic.

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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 to Conduct Market Research effectively?

What is Market Research? How to Conduct Market Research Effectively?

CEO Avada Commerce

Drive 20-40% of your revenue with Avada

Long gone are the days when you buy a domain, create a simple static website, and wait for people to flock to your store. The marketplace has changed a lot, especially in today’s ever-shifting online marketing landscape.

So, what can you do to turn your website into a place where clients won’t be able to resist?

We got only two words for you: Market Research .

No matter if you are a new entrepreneur, or you have been joining the game for a while, performing market research before launching a new business idea is an essential step to help ensure your new venture will be successful.

In this article, we will look at the definition, importance, types of market research. Besides, you will also find out 5 steps to conduct your market research effectively . And in the final section, we focus on some mistakes when doing market research that would help you avoid.

Let’s explore!

What is market research?

Market research is known as the process of gathering, analyzing, and interpreting information, which could be about the target market, customers, competitors, and the industry as a whole.

The purpose of market research is to provide relevant data of the market associated with a specific good or service to ascertain how audiences will respond to it. As a matter of fact, business strategies, such as market segmentation (identifying specific groups within a market), and product differentiation (creating an identity for a product or service that stands out from competitors) are impossible to conduct without market research.

Many organizations are carrying out market research to test out new products and services, or to get information from customers about what types of potential products they need.

For instance, let’s say a restaurant is considering launching new vegetarian items. The manager might conduct market research to test the viability of the latest products. If the market research confirms consumer interest, he can proceed confidently with the business plan. If not, he should use the results of the market research to make appropriate adjustments to bring the product in line with customer desires.

The importance of market research

Market research is a crucial tool in helping entrepreneurs make well-informed decisions. It not only takes the guesswork out of innovation but also resources into ideas and projects that can hold the most potential. Businesses at different stages of growth conduct market research for various reasons.

There is not any doubt about the importance of market research. To prove this statement, we’ve outlined the 5 following things that market research can do for your business .

A better understanding of your customers

Who will buy your products or services? Who are your ideal consumers? What do they need from you? What do they want and expect? The more details you have, the more understanding you’ll get.

Market research will help you map out the full profile of your target customers . Understanding your customers will help you determine the market size and how best to reach them. You’ll gain valuable insights into their age, gender & income, and location, which are useful for creating effectively tailored marketing and pricing plans.

Knowledge about your competitors

The rivals are taking away your customers, and to win the game, you need to do market studies ahead of them. If you can find out your customer needs and you aim to fulfill those needs, you’ve got a better chance of standing out from the rest.

Furthermore, market research will help you identify the weaknesses in the approach of your competitors. These are gaps that you can take advantage of to gain more customers. In turn, you are able to think out-of-the-box while modeling your new strategy.

Knowing about the competition as much as possible will be pivotal to the success of your business in the long run.

Product testing before launch

Before going all-in on a significant change for your business, you can test it on a smaller subset of your customers to see if the change would be suitable. For instance, if you plan to redesign your product, show the new design to the most frequent buyers. Test or ask them if they’re more likely to buy the new design or not.

By testing your new idea or product, you will reduce the risk factors, and most importantly, avoid delivering a bad quality product to the marketplace. You can never be 100% sure that your product will immediately connect with potential customers. With market research, you’ll find out what approach you should take when marketing the product.

New opportunities

Once you’ve done your market research, you’ll know who you want to reach out to (your target audiences), and where you can engage them (your marketing channels). Then you are able to easily spot business opportunities. For instance:

• Establish partnerships with other businesses . By researching, you will find other small businesses for joint promotions that will be mutually beneficial.
• Generate different profitable products . Knowing the other products or services that your customers tend to purchase can help you come up with add-ons, product bundles, and upsells that eventually increase your sales.
• Find new locations to sell . Spotting the geographical areas where most of your target customers live will enable you to create compelling targeted campaigns that match the needs and culture of that area.

Sustainable business growth

By gauging customer sentiment and understanding the perception of your brand, you can gain an opportunity for further business growth and development.

For any company to be competitive, accessing high-quality and reliable market research can guide everything from investments to product development. Staying ahead and adapting to changing market conditions allow companies to develop strong short term, as well as sustainable long-term strategies.

Types of market research

There are two major types of market research that your business can conduct to collect useful information, including primary and secondary research.

Primary research

Primary research involves the collection of first-hand information by yourself or hiring a third-party company to do it for you. Primary research fills in the subsequent gaps in information, which a researcher hardly finds through secondary research methods.

Primary research is useful in segmenting your market and creating your buyer personas, and this type of market research tends to fall into two basic kinds of information.

• Exploratory . This kind of primary market research is general and open-ended, and typically involves interviews with an individual or small group.
• Specific . This kind often follows exploratory research to dive into issues or opportunities. The business can take a smaller or more precise segment of their audience, and ask questions aimed at solving problems.

Although it takes more time, effort, resources to conduct primary research, it is still the best or even the only way to gain authentic and fresh data. When carrying out primary research, you can use one or more of the following tools.

Customer surveys/ questionnaires

Once conducted with pen and paper, surveys and questionnaires have come a long way since then. Today, most researchers use online surveys to gather information from respondents. Customer surveys are convenient and can be done over smartphones, mails, or in person.

In order to get maximum information from participants, surveys should be simple, straight to the point, and include a good mix of open-ended and closed-ended questions. Surveys should not be too lengthy, otherwise, respondents will lose their interest and tend to leave it half-done.

It is a good practice to reward participants for their time, effort, and valuable information after filling out surveys. Most organizations or businesses often give away gift cards from famous brands that respondents can redeem later.

You can take advantage of online survey websites such as MonkeySurvey, Google Forms, JotForm Survey Maker , HubSpot, Typeform, etc. to make your surveys or questionnaires.

In-depth interviews

Conducted via phone or face-to-face, in-depth interviews are an open-ended method which involves dialogues or interaction between the interviewer (researcher) and interviewee (respondent). Interviews usually last for 30 minutes or even longer, depending on the subject of research.

This type is considered to be one of the most cost-effective forms of primary research. Besides, it helps to dig further into consumers’ problems, their psychological motivations, opinions, and perceptions.

However, the success of in-depth interviews depends mostly on the skills and experience of the researchers. They should have a detailed interview script and memorize it instead of reading it. It is also essential to make respondents comfortable to share their interests.

Focus groups

This popular research technique is used to gather data from a small group of 8 to 12 people, who share common characteristics and fit a demographic target. Focus groups are a great way to get feedback on a product or service idea directly from several potential customers.

Focus groups often have a moderator that stimulates discussions among members to get greater insights. Organizations and businesses can make the most of this method to identify a niche market and learn about a specific group of consumers.

Observation

As its name suggests, observation market research involves watching customers and their behaviors in action., and there is no direct interaction between researcher and consumer being observed.

Although this method is quite time-consuming, it can provide unbiased results, as consumers are not put under any pressure and will behave naturally. Then, the insights gained are more practical and reliable.

For instance, a bakery store wants to know how people react to its new cakes, and the observer will note the first reaction of consumers and evaluate collective data to draw the inference.

Secondary research

Secondary research is all the information and data that has been compiled, collected, organized, and published by others. It can be public reports and studies by trade associations, government agencies, or other businesses in your industry.

You can access the secondary data both online and offline. A lot of secondary research is available on the Internet, so you just need to enter keywords and phrases for the type of information you’re looking for. You can also obtain secondary research by reading articles, trade journals, industry publications, visiting a reference library, etc. Some data published by private companies may require permission, and sometimes a fee to access.

For small businesses with tight budgets, most research is typically secondary, as it can be obtained faster and more affordably than primary research. However, the downside is that the results may not be tailored to your needs, and you have no control over the investigation process.

Secondary research has two main types, which are external sources and internal sources.

External sources

These sources are the first and most accessible layer of material when carrying out secondary market research. External sources contain data from people, organizations, associations outside the business.

You can find tons of external sources nowadays. Here are some of the most popular sources of external data.

• Government reports and studies
• Trade journals, magazines, newspapers
• Academic and educational resources
• Literature reviews
• Online articles and case studies
• Television and radio

Internal sources

This type is the market data that your business already has in-house, which consists of annual reports or studies. Balance sheets, profit and loss statements, inventory records, average revenue per sale, customer retention rate, and other historical data can help you draw conclusions on what your consumers want right now.

Internal sources provide a massive amount of information and data in the most inexpensive, most accessible, and most affordable way. Besides, internal data is unique and exclusive to every company, so no other competitor can benefit from it.

In the concept of market research, both primary and secondary approaches have their own pros and cons . Primary research brings about precise, updated, and need-specific data, but it requires a lot of your time, effort, and resources. Meanwhile, secondary research requires is much cheaper, more time-saving, but the data may be outdated and not fit your needs.

So, to determine which types of research to use, you should first examine your business goals, budgets, and resources available.

5 Steps to conduct market research

Conducting market research can take time and a lot of effort; it’s not something you can whip up overnight. To help guide you through your market research journey, we’ve listed the 5 steps below. If you’re familiar with the basic procedures of market research, you can supervise and even carry out a reasonably satisfactory search for the information needed.

Step 1. Define the problems

The very first step for any market research activities is to clearly identify the problems you’re trying to solve. This will determine what information your business needs and how to get that information. Your business might be finding ways to best address the loss of market share, or how to launch a new product to a specific demographic, for instance.

To flesh out the understanding of the problem, it will help a lot if you brainstorm actual research questions. These are often questions about your target market or ideal buyer persona. These might include questions about demographics, such as customer’s occupation, income, education level, etc. The goal of this stage is to create a set of preliminary and big pictures that will frame your research inquiry, and clarify the research scope.

Also, two heads are often better than one, so it’s essential to share the problems and research questions with other team members to get their input and further refine your research objectives.

Step 2. Develop the research plan

Once you have identified your problems, research objectives, and a set of research questions, the next step is to develop a research plan.

Your research plan should start with the timing and budget, as well as what kind of information you need. This details how you plan to gather and analyze the information. For example, your business requires fresh, updated, and need-specific data, while your budget and timing have no limits, you can come with the primary research.

Next, you should know that not every person will be your customer. When you research the market, you need to pinpoint who your potential consumers are, by looking at things like:

• Educational level
• Marital or family status

After you narrow down who they are, find out their personalities, interests, needs, and purchasing behaviors.

And finally, your research plan also specifies who will conduct the research activities, including data collection, analysis, interpretation, and reporting on final results.

Step 3. Collect relevant information and data

This is the time when you administer your survey, run your focus groups, conduct interviews, implement field tests, and so on. Most of the data you collect will be quantitative (numbers and statistics), or qualitative (descriptive and observational data). Ideally, you will combine these two types of data. And automate the data collection process with residential proxies for deeper insights.

Whatever the type of data you choose to collect, make sure that it is valid and unbiased. For example, avoid asking questions like this, “You think that we should sell the new product with a discount, correct?”. This type of question easily manipulates the way respondents answer.

Step 4. Analyze and report findings

Now when you’ve collected all of the information you need, it is time for the fun and exciting part: analyzing the data.

This step involves transforming the primary and/or secondary data into useful and practical information and insights that answer the research questions. This information is condensed into a format to be used by business managers - usually a presentation or detailed report.

Good analysis is undoubtedly crucial. Therefore, individuals with a good 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.

Sometimes it is necessary to write up a summary of the research, including the process of conducting, final results, and recommendations. Even if you don’t need a formal market research report, be sure that you review the research and results, so that you can articulate the recommended course of action. Sharing numbers of charts and data will be pointless if it does not lead to action.

Step 5. Take action

Your research is complete, the presentation is delivered, and recommendations are made. What comes next is arguably the most vital step of all: putting the research results into action.

You can now start developing your marketing strategies and campaigns. The business environment is constantly changing, which means that your research is never over. So, you should do market research on a regular basis. The more you know about your buyer personas and the entire industry, the more success your business will gain.

5 common mistakes to avoid when conducting market research

When it comes to effectively conducting market research, here are 5 common mistakes that your business should consider and avoid.

Have poor sampling

Many researchers start their surveys, focus groups, or interviews by asking their families and a couple of friends to take part in. This is a classic mistake that many businesses make when carrying out their market research.

Don’t entirely rely on people you know to give you honest feedback. Identify your target consumer base and then decide whether they should be divided into sub-groups that may require further analysis or cross-comparison. Just make sure that your sampling is good quality and unbiased.

Make a poor choice of reference materials

It’s important to know which sources your data and information come from. These days, you can find anything on the Internet, but do you know what the statistics you have found are based on? And do you know if the original questioning was dated and biased? So, research your research materials, check dates, and double-check the information they provide.

Ask ambiguous questions

If your questions are not clear and precise enough, your analysis and interpretation will be incorrect, which can eventually lead to wrong decisions.

It might sound basic, but designing a set of questions and measurement scales is the foundation of useful data in your research. So, make sure you follow the best practices for speech writing service survey questions like avoiding leading and ambiguous questions.

Neglect the competition

Businesses can easily fail if they don’t know how other companies in the marketplace are differentiating themselves. This prompts you to have a comprehensive understanding of how other brands are distinguishing their offerings in both marketing and production.

Hence, get as much information about your competitors as you can, such as their brand value, pricing plans, strengths, and weaknesses. The more you understand about their business, the more effective it will be for you to create your competitive edge.

Make a wrong interpretation of data

Remember that misinterpreting statistics and failing to see the big picture will destroy your research. In this situation, make sure you have an appropriate set of skills to look at raw data before you analyze it.

Besides, no matter how much you hope your hypothesis to be true, let the numbers speak for themselves. You can have an external market research agency provide your company with an unbiased view when interpreting the data.

The bottom line

You’ve been through a complete guide of market research, including its definition, importance, and types. Besides, this article also shows 5 necessary steps to conduct market research effectively , as well as 5 common mistakes to avoid when doing.

After reading, you’ll see that conducting market research can be a very eye-opening experience. Even when you think you understand your consumers pretty well, completing the study will likely uncover new things and lessons to help improve your business performance.

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