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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 types of market research, each with their own methods and tools:

• Primary research
• Secondary research
• Qualitative research
• Quantitative research
• Branding research
• Customer research
• Competitor research
• Product research

Let’s start our list by exploring primary and secondary research first.

Free eBook: How to rethink and reinvent market research

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 analyzed 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 vs 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.

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 organization. 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 organization 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.

Related resources

Market intelligence 10 min read, marketing insights 11 min read, ethnographic research 11 min read, qualitative vs quantitative research 13 min read, qualitative research questions 11 min read, qualitative research design 12 min read, primary vs secondary research 14 min read, request demo.

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8 Types of Market Research Studies and How To Use Them

A look at the different types of market research methods and studies brands can tap into for specific insights required to steer a business toward success.

quantilope is the Consumer Intelligence Platform for all end-to-end research needs

A market research study is a study that brands create to understand their target audience from a variety of angles (who they are, what they do, how they act, and other behaviors relevant to their business decisions). With a variety of market research study types available, the trick is knowing which type will deliver the right kind of information.

In this blog, we look at 8 different types of market research studies and how they can tap into the specific insights needed to steer a business toward success.

Table of contents: 

• Brand research studies
• Consumer insights research
• Customer satisfaction research 
• Product/service research
• Competitor research
• Segmentation research
• Advertising research
• Usability testing

Consumer research studies with quantilope

1. brand research studies .

A brand image can be a company’s greatest asset, so it’s crucial that businesses know how their brand or portfolio of brands is performing from a consumer point of view. This includes:

Brand awareness and recall:

Whether consumers know your brand exists, and whether they remember it (spontaneously)

Brand image:

How consumers perceive your brand and your brand's overall reputation 

Brand positioning:

Your brand's values, personality, and where it sits within the competitive set

Brand performance:

How your brand is selling/performing in the market, and its projected future sales

Brand trust:

Whether your brand is viewed as reliable and if consumers trust it

Brand loyalty:

Whether customers stick with your brand or move on to a competitor instead

All of these brand topics can be researched using a mixture of qualitative and quantitative research, and oftentimes it would be advantageous to combine them. Aspects like brand awareness and brand loyalty are best understood via quantitative methods as solid percentages can be attached to awareness and loyalty amongst different customer segments or demographics (e.g. by life stage, location, gender). The more nuanced aspects of brand image and positioning can really be brought to life through qualitative research ; hearing from consumers in their own words can clearly explain how they feel, what their body image says about the brand, and other sentiment analyses. Depending on a brand's needs, qualitative research might be used to prompt ideas for a later quantitative study, supplement insights from a previously-run quantitative study, or, used on its own. 

Brands can track t hese metrics over a period of time using a brand health tracking approach - an equally incremented capture of consumer data to see how consumer perceptions around a brand change over time. Back to table of contents

2. Consumer insights research   

Consumer insights are all about putting together a comprehensive picture of who your target market is: their demographics, their lifestyles, their likes and dislikes, what’s important to them, their values, needs, and behaviors. It can be thought of as a ‘scene-setting’ exercise, so that brands can build consumer profiles that help guide their marketing or product development strategies.  Brands might also want to run consumer insights research with regard to a certain area of its business: branding, social media activity, or product usage, for example.

Sales data can act as a starting point for consumer insights research, which brings useful knowledge around demographics. Knowing who buys your brand will determine which types of people to recruit for future market research studies. For example, if you know your customer base is made up mainly of women, you might set a sample quota that is 80% female and 20% male. Like brand research studies, consumer insights research is beneficial both quantitatively and qualitatively. Q uantitative research will provide insights in the form of numerical data while q ualitative research (focus groups, interviews and observations) are useful for exploring consumers' values, needs, and behaviors in further context.  Back to table of contents  

3. Customer satisfaction research  

Satisfaction research investigates which areas of a brand or product are performing well and which could do with improvement. In most cases, quantitative research is used since businesses need the reliability of larger numbers to show how satisfied customers are. Survey questions ask respondents to score the brand/product/service on a variety of metrics (e.g. usability, reliability, value for money, design, taste, etc.) and computer-based analysis tools are used to calculate satisfaction according to those scores. NPS (Net Promoter Score) is a common methodology used for this research purpose.   NPS measures how likely a consumer is to recommend a product or brand to someone they know, which gives a good indication of the value they attach to it . Back to table of contents

4. Product/service research  

Product or service research forms a core part of market research in many businesses. For existing products, ensuring they remain relevant and achieve sales targets means making changes to them when appropriate. Product development research involves capturing consumer feedback on a product to identify what’s working well or where the pain points are, which feeds into ideas for improving the offer. New product research involves presenting respondents with a concept or product mock-up/prototype and gathering feedback, while new service research means exploring the potential of a brand's service that hasn't existed before. As with many studies, qual and quant both play their part here, with qual nailing down the issues that exist and quant putting numbers against them. Back to table of contents

5. Competitor research 

Regardless of the business you’re in, knowing what/who you’re up against in your category is essential. Understanding your competitors’ strengths and weaknesses means your brand can capitalize on gaps in the market and create an option for consumers that meets their needs. This is an area where existing sales and performance data on a variety of brands can be used effectively and cheaply, as this information is generally freely available (i.e. secondary data). But primary research (new research carried out to explore the issue at hand) also has its place, with focus groups hammering out the pros and cons of various brands, and quantitative market research rating brands on relevant metrics. Once findings are in, a SWOT analysis (strengths, weaknesses, opportunities, and threats) can be created to identify what a brand should continue doing and where it should improve.

Back to table of contents

One of the best ways to understand competitors is to use a multi-implicit association test: 

6. Segmentation research

Market segmentation takes a target market and divides it up into groups that share similar traits, preferences, attitudes, needs, and behaviors. It is a useful way to understand that a target market isn’t one homogenous mass of people, but that it includes different groups who operate in different ways. This is powerful knowledge to have when developing marketing messages, as sub-groups will respond in different ways to advertising and other communications. Segmentation is primarily done through quantitative means to size the groups and quantify the prominence of traits, though segments can always be further explored through qualitative research as well. Back to table of contents

7. Advertising research

Any business should care about whether or not its advertising is resonating with consumers in terms of message, style, and tone. Testing a selection of possible campaign routes (with an A/B test for example) helps advertising teams make the right decisions about which one to run with. Brands can test all sorts of elements in an A/B test such as advertising channel, ad format, color scheme, font size, logo placement , and so on. As with other types of research, qual research can help in gauging initial reactions to ad executions amongst a small audience, as well as refining them once quantitative research has taken place (or, vice versa). Quantitative research delivers scores on different aspects of the advertising, thereby showing which are working well, which are irrelevant, and which require improvement. Back to table of contents

8. Usability testing

Usability testing asks respondents to use a product or service and report on how well it performs. This could be anything from a car, to a website, to a pack of cleaning wipes. Qualitative research excels here at revealing the pertinent issues that might not have been uncovered if the research had gone straight into a quantitative approach (i.e. a consumer explaining that the scent of a cleaning wipe reminded them of a negative experience and that's why they rated it poorly). Ethnographical research is a form of qualitative research that sheds light on how products or services are actually used, so that design teams can work on the technicalities a product. Quantitative research (whether done before, after, or apart from qualitative research) can quantifies how many consumers report good/bad usability of a product, and for what reasons.  Back to table of contents

quantilope can help with all aspects of your research and marketing strategy. Its online qual and quant tools deliver high-quality research for all eight of the research study types outlined above and many more.

quantilope’s online survey platform makes quantitative research simple to set up, analyze, and present. With just a few clicks, you can create a questionnaire to be sent to target customers in a fraction of the time it takes with traditional research vendors. When results come in, quantilope’s automated advanced research methods take the data and model it in a way that makes the findings actionable for your business. Analysis tools like MaxDiff will identify which features of a brand or product are most important in the purchase decision, or which parts of an advertising message are most motivating. Key Driver Analysis will reveal which attributes are most likely to end in a positive outcome (customer satisfaction, loyalty, or purchase, for example.) Meanwhile, quantilope’s dedicated segmentation tool will map your target market and identify the defining characteristics and needs of each. These are just a few of quantilope’s advanced analysis methods - each created to solve specific business issues.

In addition to our quantitative offer, quantilope’s inColor video research tool takes a qualitative approach to research. Respondents post videos of themselves answering specific research questions, talking generally about a research topic, or even using a product or service. Brands can put together a sample as large or small as they wish, then use the videos to create showreels for their stakeholders that illustrate consumer views on the topics covered.

If you’d like to chat more about what quantilope's end-to-end Consumer Intelligence Platform can do for your business, get in touch below: 

Request a 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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The Types of Market Research [+10 Market Research Methods]

• Market research

Jaclyn Robinson, Senior Manager of Content Marketing at Crunchbase

Market research can help startups understand where they should be placing their resources and time. It can tell you everything from how people are perceiving your company, as well as which features to drop or continue developing. And while there are plenty of ways to conduct market research, not every market research method is right for every situation.

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Market research can help play a major role in developing your product, marketing, and overall business strategy. Understanding the different market research methods can be the difference between wasting months of engineering time or exceeding your ambitious revenue targets.

We review the types of market research as well as the market research methods you can pursue based on your primary objectives and business goals.

The 2 types of market research

All market research falls under two distinct categories: primary research and secondary research.

Primary research looks at any data you collect yourself (or someone you pay). It encompasses analyzing current sales, metrics, and customers. It also takes into account the effectiveness of current practices, while taking competitors into account.

Secondary research looks at data that has already been published by others. It includes reports and studies from other companies, government organizations, and others in your industry.

10 market research methods

The type of data you need will decide which market research technique to use. Here are the most commonly used market research methods:

Primary research methods

These primary research methods will help you identify both qualitative and quantitative data. Qualitative data is information that cannot be measured while qualitative data is taken from a large sample size and is a statistically significant mathematical analysis.

1. Interviews

Great for: expert advice

Consisting of one-on-one discussions, interviews are a great source of qualitative data. You can either perform interviews by telephone, video conference, or face-to-face. Interviews are great for an in-depth look for target audience insights.

In-depth interviews are great when expert advice is needed or when discussing highly complex or sensitive topics. Interviews are usually 10 to 30 minutes long with 25 to 75 respondents.

Great for: understanding brand awareness, satisfaction and loyalty analysis, pricing research, and market segmentation .

One of the most commonly used market research methods, Surveys are an easy way to understand your target audience and allow you to test a large sample size to determine if findings are true across a larger segment of your customers.

3. Questionnaires

Great for: Customer feedback and satisfaction surveys (NPS surveys), and when you want more detail on your target audience and customer base.

Do not confuse questionnaires for surveys !  While surveys are aggregated for statistical analysis, questionnaires are a set of written questions used for collecting information.

Questionnaires are used to collect information rather than draw a conclusion.  Surveys can include a questionnaire, but a survey must aggregate and analyze the responses to the questions.

When writing questionnaires for market research, keep the number of questions in mind.

In one study, SurveyMonkey found that questionnaires with 40 questions have about a 10% lower response rate than questionnaires with 10 questions . The more questions, the less likely people will finish your questionnaire.

4. Focus groups

Great for: Price testing, advertising concepts, product/messaging testing

Even with the rise of big data, focus groups have remained an integral part of how companies build their products, strategy, and messaging. Focus groups are intentionally compromised by a group of purposefully selected individuals. Above all, the collaborative setting ensures that members of the group are able to interact and influence each other.

Typically these open and interactive groups are composed of around five to 12 screened individuals . Make sure that your participants are diverse so you can get a range of opinions and you have enough representation from several segments of your market.

Many smaller startups will conduct DIY focus groups and will use video conferencing technology, which is one of the most cost-effective and time-efficient market research methods.

This is a great resource to see some good questions to ask your focus groups as well as what topics focus groups should touch on.

5. User groups

Great for: Feature testing, UX and web design feedback

User groups are used to gather UX data and provide insight for website design. User groups usually meet regularly to discuss their experience with a product, while researchers capture their comments.

Here’s a great guide on how to format questions for user groups .

6. Test markets

Great for: Testing new marketing campaigns

Test markets represent a larger market. Using a test group as well as a control group can show you the success of a new landing page, messaging copy, or CTA button. We particularly like the free version of Google Optimize to get quantitative data on how your experiment is performing based on a specific goal.

Secondary research methods

Secondary research can help establish a starting point prior to diving into more expensive primary research techniques. While there is a lot of data on the web regarding basic statistics, you may have to purchase a distinct data provider for a more in-depth look at your market.

Crunchbase Pro and Marketplace partners are a great and inexpensive way to start your secondary research directly on Crunchbase.com.

7. Competitor benchmarks

Great for: Understanding your revenue, churn, operating costs, sales, profit margin, and burn rate.

Competitor benchmarks are the most valuable and widely used of the secondary research methods. Moreover, competitor benchmarks measure specific growth metrics or key performance indicators in comparison to business within the same industry and of a similar size.

You can use Crunchbase Pro to find how much companies in a certain industry are raising and who are the leading players with our global coverage on companies ranging from pre-seed to late-stage. So, as one of the most informative of the market research methods, competitive benchmarks are a great way to inform your business strategy. 

Free Crunchbase registered users have access to revenue estimates as well as web traffic data.

8. Sales data

Great for: Understanding your audience and where to place marketing efforts.

Taking a look at internal sales data not only reveals profitability but also helps market researchers segment customer trends.

However, taking a look at competitive sales data is a great way to make sure that you’re meeting the numbers you should be targeting as well as capturing the full potential of the market

9. Government publications and statistics

Great for: General demographic information and larger trends

The U.S. Census Bureau is a great resource of national demographic data. You can also review patents as a preview of industry trends and future innovation.

Also, you can find additional data and research from Data.gov , The World Bank , as well as the Pew Research Center to help inform your market research decisions.

10. Commercial data

Great for: Greater insight into industry trends and reports

If you’re interested in purchasing secondary market research, commercial data is available. For comprehensive reports, Mintel and IBISWorld are both traditional market research companies that provide commercial data.

Additionally, to choose which type of market research method is best for your goal, follow this graph from Relevant Insights. Begin with the metric you’re trying to move and then backtrack into a targeted market research method.

How can Crunchbase help with my market research?

Crunchbase gives market researchers flexible access to Crunchbase’s complete company data. Innovative teams and leaders in market research rely on Crunchbase’s live company data to build powerful internal databases and research insights in respective industries. Learn more about how Crunchbase can help you with your market research .

• Originally published March 14, 2019, updated April 26, 2023

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What Is Market Research?

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

The Bottom Line

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How to Do Market Research, Types, and Example

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Joules Garcia / Investopedia

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

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

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

Key Takeaways

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

Market Research

How market research works.

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

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

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

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

Primary Market Research vs. Secondary Market Research

Market research usually consists of a combination of:

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

Primary Market Research

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

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

Secondary Market Research

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

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

History of Market Research

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

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

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

Types of Market Research

Face-to-face interviews.

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

Market research and surveys were adapted from these early techniques.

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

Focus Groups

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

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

Phone Research

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

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

Survey Research

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

Online Market Research

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

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

How to Conduct Market Research

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

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

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

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

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

Benefits of Market Research

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

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

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

Example of Market Research

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

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

What Are the Main Types of Market Research?

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

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

What Is Online Market Research?

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

What Are Paid Market Research Surveys?

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

What Is a Market Study?

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

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

Britannica Money. “ Market Research .”

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

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The 8 types of market research and how to use them

There are eight types of marketing research you can try to stay ahead of the competition. Learn more about marketing research methods and how to use them.

Latest posts on Tips

Typeform    |    08.2024

Typeform    |    07.2024

“If you keep doing what you’ve always done, you’ll keep getting what you’ve always got.”

Doesn’t sound too threatening if you’ve always been successful, right?

Continuing to do what you’ve always done means you’ll fall behind—and probably fade to darkness—to where all the forgotten brands go.

Take Kodak. They were a major player in photography for decades—remember? When digital photography boomed, Kodak kept doing what they always did. Their business floundered and people forgot about them. Well, everyone apart from Pitbull.

Now, look at Fujifilm, one of Kodak’s biggest competitors. They did the opposite and looked for ways to apply their expertise in film to the technology of the new millennium instead. Their company is still going strong.

The same goes for research. If you’re doing the same old types of market research, speaking to the same old people, and doing the same old tired surveys—you’re already behind.

How do you decide what kind of market research you need to do? It all comes down to what you need to know and what your business goals are.

In this article, we’ll explain the various types of market research you can use to solve issues and challenges in your business. We’ll throw you a freebie, too, and provide some market research tips about when to use each strategy.

Let’s get you ahead of the curve.

1. Brand research

Brand research helps with creating and managing a company’s brand, or identity. A company’s brand is the images, narratives, and characteristics people associate with it.

When to use it

Brand research can be used at every stage in a business’s lifecycle, from creation to new product launches and re-branding. There are at least seven types of brand research:

Brand advocacy: How many of your customers are willing to recommend your brand?

Brand awareness : Does your target market know who you are and consider you a serious option?

Brand loyalty: Are you retaining customers?

Brand penetration: What is the proportion of your target market using your brand?

Brand perception : What do people think of as your company’s identity or differentiating qualities?

Brand positioning: What is the best way to differentiate your brand from others in the consumer’s mind and articulate it in a way that resonates?

Brand value: How much are people willing to pay for an experience with your brand over another?

How to do it

A researcher will use several types of market research methods to assess your and your competitors’ strengths and weaknesses. Generally, they will conduct competitor research, both qualitative and quantitative, to get a picture of the overall marketplace. Focus groups and interviews can be used to learn about their emotions and associations with certain brands.

Market research surveys are useful to determine features and benefits that differentiate you from competitors . These are then translated into emotionally compelling consumer language.

2. Campaign effectiveness

This type of market research is designed to evaluate whether your advertising messages are reaching the right people and delivering the desired results. Successful campaign effectiveness research can help you sell more and reduce customer acquisition costs.

It’s estimated people see up to 5,000 advertising messages each day. That means attention is a scarce resource, so campaign effectiveness research should be used when you need to spend your advertising dollars effectively.

Campaign effectiveness research depends on which stage of the campaign you use it in (ideally, it’s all of them!). Quantitative research can be conducted to provide a picture of how your target market views advertising and address weaknesses in the advertising campaign.

3. Competitive analysis

Competitive analysis allows you to assess your competitors’ strengths and weaknesses in the marketplace, providing you with fuel to drive a competitive advantage.

No business exists in a vacuum—competitive analysis is an integral part of any business and market plan. Whether you’re just getting started, moving into a new market, or doing a health check of your business, a competitive analysis will be invaluable.

A researcher will typically choose a few of your main competitors and analyze things like their marketing strategy, customer perceptions, revenue or sales volume, and so on.

Secondary sources such as articles, references, and advertising are excellent sources of competitive information; however, primary research, such as mystery shopping and focus groups, can offer valuable information on customer service and current consumer opinions.

4. Consumer insights

Consumer insights research does more than tell you about who your customers are and what they do. It reveals why customers behave in certain ways and helps you leverage that to meet your business goals.

Knowing your customers deeply is integral to creating a strategic marketing plan. This type of market research can help you anticipate consumer needs, spark innovation, personalize your marketing, solve business challenges, and more.

Consumer insights research should be specific to your business—it’s about getting to know your target audience and customers. Various market research methods can be used, such as interviews, ethnography, survey research, social monitoring, and customer journey research.

Here are some of the characteristics you should understand through consumer insights research:

Purchase habits

Interests, hobbies, passions

Personal and professional information

How they consume media and advertising

5. Customer satisfaction research

Customer satisfaction research is a type of market research that measures customers’ experiences with products or services, specifically looking at how those meet, exceed, or fail to live up to their expectations.

Customer satisfaction is a strong indicator of customer retention and overall business performance. Successful customer satisfaction research should help you understand what your customers like, dislike, and feel needs improvement. You can use this type of market research to look at the quality and design of products, speed and timeliness of delivery, staff and service reliability, knowledge, and friendliness, market price, and value for money.

There are several ways to measure customer satisfaction, most commonly using surveys. An NPS or Voice of the Customer Survey can help you measure customer loyalty. Customer Effort Scoring measures how satisfied people are with customer service or problem resolution. CSAT is any survey that measures customer satisfaction , typically measured using Likert scale surveys . They can be conducted at different points in the customer experience, allowing deeper insight into that moment.

6. Customer segmentation research

Customer segmentation studies aim to divide markets or customers into smaller groups or personas with similar characteristics to enable targeted marketing. By understanding how people in each category behave, you can understand how each influences revenue.

Customer segmentation research is best used if you’re ready to give customers individualized experiences. Not every customer in your target market is the same. The more you understand each specific persona, the easier it is to focus on delivering personalized marketing, build loyal relations, price products effectively, and forecast how new products and services will perform in each segment.

Market researchers use four characteristics to segment customers.

Demographics: demographic information such as age, gender, family status, education, household income, occupation and so on

Geography: where people live, from cities and countries to whether they are city dwellers or suburbanites

Psychographics: socioeconomic status, class, lifestyle, personality traits, generation, interests, hobbies, etc.

Behavior: brand affinity, consumption and shopping habits, spending, etc.

A researcher will identify your current customers and collect data about them through various market research methods, such as surveys, database research, website analytics, interviews, and focus groups. The aim is to gather as much information as possible.

7. Product development

Market research for product development involves using customer knowledge to inform the entire process of creating or improving a product, service, or app and bringing it to market.

Innovation is hard work. A quick Google will tell you that 80–95% of new products fail every year. Conducting market research for product and app development helps minimize the risk of a new product or change going bust as it enters the market. There are three stages where you can use market research:

Conception: The moment you’re thinking about adding something new, market research can find market opportunities and provide insights into customer challenges or their jobs-to-be-done, so you can find a way to fill the gap.

Formation: Once you have an idea, market researchers can help you turn it into a concept that can be tested. You can learn more about strategizing pricing, testing advertising and packaging, value proposition, and so on.

Introduction: Market research can help you gauge attitudes toward the product once it’s in the market and adapt your messaging as it rolls out.

Keep making the product better or find opportunities to introduce it to new markets.

Product development research will utilize different market research methods, depending on the goal of the research. A researcher could present focus groups with product concepts and listen to their opinions, conduct interviews to learn more about their pain points, or perform user testing to see how they interact with an app or website.

8. Usability testing

Usability testing is concerned with understanding how customers use your products in real time. It can involve physical products, like a new blender, or digital products like a website or app.

Usability testing is helpful when you need to detect problems or bugs in early prototypes or beta versions before launching them. It typically costs far less to test a product or service beforehand than to pull a flawed product off the shelves or lose sales because of poor functionality.

There are several types of usability tests, which vary based on whether you’re testing a physical or digital product.

Journey testing involves observing the customer experience on an app or website and monitoring how they perform. This type of study can be done online

Eye tracking studies monitor where people’s eyes are drawn. Generally, they are conducted on websites and apps, but can also be done in stores to analyze where people look while shopping

Learn ability studies quantify the learning curve over time to see which problems people encounter after repeating the same task

Click tracking follows users’ activity on websites to evaluate the linking structure of a website

Checklist testing involves giving users tasks to perform and recording or asking them to review their experience

Combining types of market research with Typeform

When it comes to market research, you need to ask yourself what business challenge or question you’re trying to address. Then, select the appropriate methods and tools, such as market research automation , to simplify your process.From there, the world of useful data and actionable insights will open to you.

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How To Do Market Research: Definition, Types, Methods

Jul 25, 2024

11 min. read

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

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

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

Table of Contents

What Is Market Research?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Interviews

3. Focus Groups

4. Observations

5. AI-Driven Market Research

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

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

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

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

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

3. Focus groups

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

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

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

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

5. AI-driven market research

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

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

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

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

Examples of common market research questions include:

Demographic market research questions

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

Product or service usage market research questions

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

Brand perception market research questions

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

Buying behavior market research questions

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

Customer satisfaction market research questions

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

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

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

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

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

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

Step 1: Define your objectives

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

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

Step 2: Select your market research methods

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

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

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

Step 3: Develop your research tools

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

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

Step 4: Conduct the market research

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

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

Step 5: Analyze and apply your findings

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

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

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

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

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

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

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Written by Mary Kate Miller | June 1, 2021

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

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

What Is Market Research?

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

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

The Purposes of Market Research

Why do market research? It can help you…

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

What Are the Benefits of Market Research?

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

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

What Are the Basic Methods of Market Research?

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

Primary vs. Secondary Market Research

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

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

Primary Market Research

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

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

Secondary Market Research

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

Identify Your Goals and Your Audience

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

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

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

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

How to Do Market Research

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

Secondary Data

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

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

Find Your Customers Online

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

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

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

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

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

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

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

Market Surveys

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

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

Who to Include in Market Surveys

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

Example Questions to Include in Market Surveys

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

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

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

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

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

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

Survey Tools

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

Competitive Analysis

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

Social Media Analysis

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

SEO Analysis and Opportunities

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

Ready to Kick Your Business Into High Gear?

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

About Mary Kate Miller

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

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Types of Market Research: 10 Effective Methods

Either if you’re a company or market researcher, one of the most important things to understand is the different types of market research that are available to you. Each type has its strengths, weaknesses, and unique applications. It’s essential to know which one to use for your research needs. In this post, we’ll break down the most common types of market research and explain when to use each.

LEARN ABOUT: Behavioral Research

What are the Types of Market Research?

When it comes to market research, there are many different types to choose from, each with its strengths, weaknesses, and unique applications. The key is understanding the different types and knowing when to use them to get the most valuable insights for your research goals. Remember, the more you know about the different types of market research, the better equipped you’ll be to make informed business decisions.

LEARN ABOUT: Market research vs marketing research

Companies can use surveys as a type of market research to gather valuable information about their customers, their market, and their competition. Here are a few ways that a business owner can use surveys for market research:

• Customer satisfaction : Surveys can gauge how satisfied customers are with a business’s products or services and identify areas where improvements can be made.
• Market segmentation : Surveys can gather information about a business’s target market, including demographics, behaviors, and preferences. This information can be used to segment the market and tailor products or services to specific groups of customers.
• Product development : Surveys can gather information about customers’ needs and preferences, which can inform the development of new products or services.
• Competitor analysis : Surveys can gather information about competitors, including their products, prices, and marketing strategies. This information can be used to inform a business’s own strategic decisions.
• Brand awareness : Surveys can measure customers’ understanding of a business’s brand and how well the market perceives it.
• Advertising : Surveys can gather information about a business’s advertising campaigns’ effectiveness and identify improvement opportunities.
• Employee satisfaction : Surveys can be used to measure the satisfaction of a business’s employees and identify ways to improve employee morale and productivity.

LEARN ABOUT:  Market Evaluation

2. Exploratory Research

Exploratory research is like going on a treasure hunt, but instead of looking for gold and jewels, you’re searching for valuable insights and information. It’s a way to dive deeper into a topic, uncover new angles, and better understand the subject.

Think of it like a choose-your-own-adventure book, where every turn leads to a new discovery. You might uncover a new market research trend , a gap in the market, or a customer pain point you never knew existed. You never know what you’re going to find, but that’s the fun of it!

Exploratory research is all about asking open-ended questions and taking a flexible approach. It’s not about finding one specific answer but rather gathering as much information as possible. It can include methods such as focus groups, interviews, and literature reviews.

LEARN ABOUT:   Research Process Steps

3. Qualitative Research

This type of research is all about understanding people’s experiences and perspectives. It’s often conducted through interviews, focus groups, or observational studies. The data is then analyzed to identify themes and patterns. Qualitative research is significant for understanding things like consumer attitudes and motivations, and it’s often used to explore new marketing ideas and gain a deeper understanding of a topic.

It is the investigator of the research world, diving deep into the human experience to uncover people’s motivations, perceptions, and attitudes. It’s not just about collecting data but understanding its meaning and the “why” behind the “what.”

4. Quantitative Research

Quantitative research is excellent for understanding consumer behavior and market trends, and it’s often used to test hypotheses and make predictions. This type of research is all about numbers and statistics. It involves collecting data from a large sample of people through surveys, polls, or experiments. The data is then analyzed to identify patterns and trends.

5. Observational Research

This type of research is all about watching and recording what people do. It’s often conducted through ethnography, field studies, or participant observation. Observational research is excellent for understanding consumer behavior and social dynamics, and it’s often used to gain a deeper understanding of a particular group or population.

6. Primary Research

Primary research is a type of research where the researcher collects data themselves rather than using pre-existing sources. It’s a way for the researcher to gather original, firsthand information on a specific topic. This can be done through surveys, interviews, focus groups, and experiments.

This is an example of primary research . For instance, if a company wants to know what its customers think of their new product, it might survey to gather this information. The information collected through this survey is original and managed by the company itself rather than being sourced from elsewhere.

7. Secondary Research

Secondary research is a type of research that involves gathering information that has already been published by someone else. It’s a way to gather information by looking at sources that have already been created, such as market reports, industry publications, and online resources.

For example, suppose you’re a business owner and want to know more about your competitors. In that case, you could use secondary research to find market reports and industry publications that have already been written about your industry. This information can be used to understand the competitive landscape, identify trends, and inform your business strategies.

8. Experimental Research

This type of research is all about testing cause-and-effect relationships. It’s often conducted through experiments, where variables are manipulated to see how they affect the outcome. Experimental research is excellent for understanding consumer preferences and product performance, and it’s often used to test hypotheses and make predictions.

9. Ethnographic Research

This type of market research is a type of qualitative research that involves observing and studying people in their natural settings. It’s a way to understand a culture, community, or group of people and how they interact with a product or service.

Ethnographic research is a valuable tool for businesses because it provides a rich and detailed understanding of the customer experience. It allows the company to see the product or service in the context of the customer’s everyday life and gain insights that may not be apparent through other types of research.

LEARN ABOUT: 5 Ways Market Research

10. Product Testing

Product testing is a type of research that involves evaluating a product or service by using it in a controlled environment. It’s a way to gather information about the product’s performance, usability, and overall customer satisfaction.

For example, you might conduct product testing if you’re a business owner and want to know how customers will react to your new product. You would give the product to a group of testers and ask them to use it sometime, then gather feedback about their experience. This information can be used to identify any issues or improvements that need to be made before the product is released to the market.

Why do Business Owners need to Know the Types of Market Research?

Market research is a way for businesses to gather information about their target market, customers, and industry. It helps companies to make informed decisions about product development, marketing strategies, and overall business direction. There are several types of market research, each with itn purpouse and methods, which any business owner needs to know.

• Making informed decisions: Knowing the different types of market research allows businesses to choose the right kind of research for their specific needs. This can help them make more informed decisions about their products, services, or overall business strategy.
• Identifying opportunities: Market research can help businesses identify new opportunities, such as untapped markets or unmet customer needs. This can help them stay ahead of the competition and grow their business.
• Understanding customers: Market research can help companies understand their customers better. They can learn about their customers’ attitudes, behaviors, and needs by conducting research. This can help them tailor their products and services to meet those needs better.
• Monitoring the market: Market research can also help businesses monitor their market and stay informed about industry trends. This can help them anticipate changes and make strategic adjustments.
• Identifying potential problems: Market research can also help identify potential problems or challenges before they occur. For example, by conducting research, they may discover that a new competitor is about to enter the market or that a change in consumer behavior is affecting their sales. This can help them take proactive measures to address these issues.

Overall, by understanding the different types of market research and how to use them, we can gain valuable insights that can help us make more informed decisions, identify new opportunities, and grow businesses. It’s essential to stay on top of the research trends and industry changes to ensure the company runs smoothly and profitably.

LEARN ABOUT:  Market research industry

Learning about customers, markets, and competition is essential. We’ve covered the types of market research that we can use to gather valuable information. Whether you’re looking to gauge customer satisfaction, segment your market, or conduct competitor analysis, various research methods are available to help you make informed decisions for your business.

LEARN ABOUT: 12 Best Tools for Researchers

But if you’re looking for a powerful survey tool to help you conduct all types of market research, look no further than QuestionPro. With QuestionPro, you’ll have access to a wide range of features to help you create, distribute, and analyze surveys and gather insights that can inform your business strategies. So don’t hesitate. Subscribe to QuestionPro today and start conducting market research like a pro!

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13 Types of Market Research (+ Pros & Cons)

by Emily Rodgers

Posted at: 10/18/2023 12:30 PM

Today’s business decision-maker has an abundance of marketing research services  available to them.

Understanding what market research is and how best to use research methodologies to your advantage is vital in reaching your target customers and increasing ROI.

There are 13 types of market research, each with their own pros and cons:

• Online Surveys
• Phone Surveys
• Customer Surveys
• Omnibus Surveys
• Mail Surveys
• Intercept Surveys
• Ad Concept Testing
• Mystery Shopping
• Shop-Alongs
• Focus Groups
• In-Depth Interviews
• Feasibility Studies

Interested in hiring a third-party market research company? Consider Drive Research. Get a quote from our team by filling out an online contact form or emailing [email protected] .

Primary vs. Secondary Market Research

Primary and secondary market research are two fundamental categories in the field of market research, each serving distinct purposes when on the hunt for data-driven insights.

Primary research involves the direct gathering of information from original sources.

This method is akin to a first-hand investigation, where data is collected directly from respondents or subjects through methods like surveys, interviews, or observations.

Primary research provides fresh and specific insights tailored to the objectives at hand, offering a firsthand perspective on consumer behaviors, preferences, and trends.

Secondary research involves the analysis of existing data and information that has been previously collected by other sources.

This type of research leverages pre-existing data from a wide array of sources such as industry reports, government publications, academic papers, and market analyses.

Secondary research is particularly useful for gaining broader industry perspectives, historical data trends, and context for understanding market dynamics.

Qualitative vs Quantitative Market Research

Next, it’s important to establish the two categories of market research, qualitative and quantitative, to gain a better understanding of the various primary marketing research methodologies.

Qualitative research is an exploratory type of research, designed to gain a deeper insight into the underlying reasons, opinions, and motivations of a consumer.

Qualitative research allows your target audience to answer questions like:

• How did this commercial make you feel?
• What do you like most about X product?
• Why are you more likely to buy X product over Y?

Quantitative research is a statistical type of research, used to quantify and answer objectives by generating numerical data.

For example, an organization can conduct an online survey to collect statistical data on its brand, through the opinion of its customers.

Quantitative surveys can measure metrics such as:

• Customer satisfaction
• Likelihood to recommend

Recommended Reading: What's the Difference Between Qualitative and Quantitative Market Research?

Types of Market Research

There is no one "best" market research methodology as the most appropriate method depends on the specific research question and the target demographic.

Different research methods have different strengths and limitations.

Below, we cover the most common types of market research and their pros and cons to help determine which methodology is best for your unique needs.

For a short synopsis, I recommend watching the video from our market research company below.

1. Online Surveys

Online surveys are a form of quantitative research aimed at gaining feedback and insight on a specific objective. Web surveys are designed, programmed, and administered – you guessed it – online.

With the rise of technology, most surveys online are equipped to be taken on smartphones and tablets as well.

Pros of surveys online ✅

A major benefit of conducting surveys online is reaching a mass audience at low costs and in little time.

Traditional survey methods like phone or mail often require a large budget to achieve successful and accurate results.

Quick insights

An organization can obtain quick feedback from customers with a web-based questionnaire at little to no cost.

When working with an online survey agency , organizations can create, send, and receive results all in a matter of days.

Here is the process Drive Research follows when conducting online surveys for our clients.

Reduces response bias

Respondents may be more opt to provide honest feedback with online surveys as well.

Being that there is no moderator or interviewer, survey participants feel more inclined to offer up raw emotions and opinions on a company, products, or services.

This eliminates any bias injected by an interviewer.

Cons of online surveys ❌

Technical errors

As much as technology has progressed through the years, it’s nowhere near perfect. Technical mishaps happen every day and online surveys are no exception.

A poor user experience associated with technical problems such as a slow page load time, or worse timing out, can subsequently affect the online survey data.

Unfortunately, these online glitches aren’t always apparent at first sight. Significant errors within online platforms often don’t show up until the survey results are complete.

Less detailed feedback

Oftentimes, our market research company is asked: how many questions should I ask in my survey ?

It’s also a good rule of thumb to keep online surveys short and sweet. 15-20 questions is the sweet spot. 

That's because, unless informed otherwise, participants are less likely to stay fully engaged in a survey that takes more than 10 minutes to complete.

Therefore, with little real estate, it’s difficult to obtain detailed answers to key business questions.

Recommended Reading: How to Make Online Surveys More Engaging for Respondents

2. Phone Surveys

Phone surveys began as a core market research methodology decades ago and still prove to be at the forefront of market research methodologies.

This type of market research centers around collecting deeper feedback from two-way active communication between the interviewer and respondents.

Pros of phone surveys ✅

Two-way communication forum

The advantage of conducting a phone survey lies in the high quality of data it provides.

As opposed to other market research methodologies, phone surveys allow for an active and personable conversation between the interviewer and the participant.

Gather more in-depth insights

In comparison to online surveys, interviewers can receive additional feedback from respondents.

In other words, you are at the mercy of how much or how little participants are going to answer a question online – whereas phone surveys allow interviewers to ask respondents to explain their answers.

Respondents are more likely to answer phone survey questions in greater detail because it takes less time to voice your opinion than it would to type or write.

Survey participants from anywhere

Phone surveys are also at no mercy of the locale.

Especially with the move from landlines to mobile phones, phone survey companies can connect with respondents whether they are traveling, on their lunch break, taking a walk outside, etc.

Cons of phone surveys ❌

More costly

Where phone surveys may provide high-quality and immediate results, it is not as cost-effective or time-efficient as other market research methodologies.

Phone survey companies must collect a long list of participants to speak to, to then spend hours having detailed conversations or leaving voicemails.

Must conduct the research at specific times of day

Another factor driving the collapse of phone surveys is that the study has time constraints to work around. This means phone survey participants will likely only be available to speak outside of business hours.

Other factors such as taking care of children, going to the gym, and running errands can limit the available time respondents have to complete a phone survey.

Recommended Reading: Online Surveys vs. Phone Surveys - Which is Better for Your Business?

3. Customer Surveys

Customer satisfaction surveys measure the level of satisfaction a customer has with a brand. 

This is critical to the success of a brand - how will they know how to cater to customers without asking them? 

With the data gathered from these surveys, brands can implement…

• Improved marketing strategies
• Better customer service techniques 
• Personalized shopping experience

And this last one is super important, as 68% of consumers prefer a personalized shopping experience. 

Below, we'll cover some of the top benefits of running customer surveys, along with potential drawbacks. 

Pros of customer satisfaction surveys ✅

Insight into customer preferences and behaviors

Think of these surveys as a tool to directly tap into your audience. 

Here are some types of insights you can gather from customer surveys:

• How satisfied or dissatisfied customers are with your products or services
• Identify emerging trends and changing customer preferences in the market
• Demographic information such as age, gender, location, occupation, etc. to tailor marketing efforts accordingly
• Insights into the decision-making process of customers, including factors that influence their buying decisions

Identifying areas for improvement

We like to use this scenario: there may be something about your brand that customers dislike, making them less likely to buy from you.

With customer surveys, brands will be able to identify this type of issue straight from the customer. With that information, brands can improve their strategies. 

Measuring customer satisfaction and loyalty

Surveys that measure customer satisfaction metrics such as Net Promoter Score (NPS) offer valuable data about how happy your customers are. 

The key here is to track this data for continued improvement.  

As we always say, market research isn't a one-and-done deal, especially when you're dealing with surveys. Measuring customer opinion through surveys should be an ongoing strategy, as this allows brands to observe current trends and adjust accordingly. 

By continued measurement, brands will always be improving their strategies. This leads to increased customer retention, loyalty, and word-of-mouth referrals. 

Cons of customer surveys ❌

Survey fatigue

This drawback is more related to how the surveys are distributed. 

Put yourself in this position. If a store you've shopped at is continuously sending you links to take a survey, you're probably going to rush through the survey or ignore it. 

This is why it's so important to time your surveys correctly. Sending too many will likely annoy your customers (and maybe even push them away).

Remember, as a brand, you want your customers to know you care, but don't be pushy about it! 

The limited scope of feedback

Depending on the depth of data you want to uncover, surveys may not be the best option. 

One of the benefits of surveys is that they offer structured questions for better-defined responses. 

However, this can backfire and end up limiting you depending on your needs. If you're looking for more detailed insights, surveys may not be the answer.

Instead, methodologies such as customer focus groups or in-depth interviews will be a better fit as they offer more in-depth feedback.

But more on that in a minute!

4. Omnibus Surveys

Omnibus surveys or piggyback surveys are a type of online survey. However, instead of one company sponsoring the market research, the survey includes questions from multiple different organizations.

This type of market research allows several brands and businesses to purchase a few questions as part of a much larger survey.

• Company A wants to ask respondents about their recent car purchases
• Company B wants to ask respondents about home mortgages 
• Company C wants to ask respondents about coffee preferences 

A market research company, like Drive Research, takes these different objectives to create a multi-sponsor survey . When the survey is complete, each company is only given access to results from the questions they sponsored.

This type of market research typically takes 3 to 7 days to complete.

Thought, the length of the timeline depends on how quickly the survey draft is signed off on and how difficult the target audience is to reach.

We'll only just scratch the surface of omnibus market research in this article. For a full overview, read our Ultimate Guide to Conducting Omnibus Surveys .

Advantages of omnibus surveys ✅

Omnibus surveys carry many of the same advantages as online surveys: cost-effective, timely results, and access to a large sample of respondents.

These aspects become even more advantageous being that only a handful of questions are asked in most cases.

Therefore, a significant benefit of omnibus surveys is that Responses from a general population can be gathered in minutes.

If you are looking for a low-budget market research methodology , omnibus surveys are as cheap as they come.

Disadvantages of omnibus surveys ❌

Increased chances of respondent burnout

Because several organizations are purchasing questions to create an omnibus survey, the questionnaire can become quite unruly.

There is no guarantee that your questions will be asked at the beginning of a survey when respondents are most engaged.

There is a chance respondents will have answered 50 questions, before answering yours.

At this point, many respondents are disengaged and are not providing quality feedback. Realistically, they're rushing to complete the omnibus survey to receive an incentive. 

How to avoid respondent burnout in omnibus surveys

To avoid this, find a market research company like Drive Research that creates shorter surveys and can guarantee a goal number of responses.

Oftentimes when a client is looking to conduct an omnibus survey, our market research firm does not wait till other organizations join in.

We can field your survey questions within 24 to 48 hours.

Omnibus survey real-world example

Recently, Drive Research was hired to conduct an omnibus survey. 

The steps to complete an omnibus survey include:

• Finalizing the survey
• Programming the survey
• Creating the deliverables

The following survey was created and approved on a Monday, programmed and launched on a Tuesday, and the results were delivered to the client that Thursday.

Overall, the process took four days to complete.

About the omnibus survey

• The survey took an average of 3 minutes to complete and included 15 questions.
• There were 2 additional screener questions used to confirm the survey reached the specified target audience.
• The survey received 1000 responses.
• Fieldwork for the survey began on February 2 and lasted until February 3, 2021. 

With a probabilistic sample, a total of 1000 responses at the 95% confidence level offers a 3% margin of error.

If the survey were conducted with another random pool of 1000 respondents, the results would yield within +3% or -3% of the stated totals in the reports.

The margin of error can be used as a guideline to understand the reliability of these results.

Results of the omnibus survey

• This client wanted to receive the raw data file for the survey and a question-by-question online report.
• The online report was interactive. By hovering over data in a chart, it will provide more detail.
• Users can also expand the open-ended responses to read each comment by selecting "Show Responses."
• Lastly, users can export the results into several different formats (i.e., PDF, PowerPoint, Excel, and Word).

Example reporting links for omnibus surveys

• Here’s an example of an online report for an omnibus survey. Exports are disabled for this example.
• Here’s an example of an online crosstabulation report for an omnibus survey.

The crosstabulation reports can use any single-response or multiple-response questions (i.e., urbanicity, age group, gender, household income, marital status, race and ethnicity, children in the household, the highest level of education completed, employment status, or state).

The crosstabulation reports help bring more value to the results.

5. Mail Surveys

Emails, text messages, voicemails. Our inboxes are flooded with them. What about physical mail?

What once was labeled as an antiquated form of communication, mail surveys are back with a vengeance.

Mail surveys are a quantitative marketing research data collection method in which respondents complete questionnaires on paper and return them via postal mail.

Mail survey pros ✅

Mail surveys may seem like an archaic methodology, but they do offer some intriguing benefits. 

Best for industries with PII restrictions

Depending on the industry, say banks and credit union market research , businesses cannot reach their audience through online outlets due to organizational restrictions.

Mail surveys offer a personalized, credible solution to this problem.

Good response rates

Direct mail surveys also earn a good response rate.

Where most think direct mailers receive a 1-2% response rate, a mail survey company like Drive Research has seen an average response rate of 10-15%.

When potential participants actually open and hold the mail survey in their hands, many will opt to reply.

An email or online survey is much easier to ignore.

Mail survey cons ❌

Before you run to the post office, it should be noted that the average data quality and time invested in mail surveys deter non-restricted industries from choosing this type of market research methodology.

Timely and costly

The process of conducting mail surveys can be long and strenuous.

Only after you create and format the survey for mail, return for postage, fill and send the direct mail piece, and finally wait for responses to return are you able to start entering data.

Produces less detailed feedback

When choosing to participate in mail surveys, respondents are less likely to provide detailed answers as they would on the phone or online because it takes less time to talk or type a response, than it is to write one.

Recommended Reading: 4 Ways to Save Budget on Your Next Mail Survey 

💡Pro tip: Use a mail survey company

Are you intrigued by the advantages of conducting a mail survey, but don’t have the time required for a successful study?

When partnering with a mail survey company, much of the grunt work will be out of your hands.

A mail survey company handles all aspects of mail surveys, including a customized questionnaire template, data collection, and analysis of results with a detailed report.

6. Intercept Surveys

Intercept surveys are a form of quantitative research focused on capturing " in-the-moment " feedback from respondents.

This type of market research is commonly used after people attend an event or visit an establishment to collect perception information. Although, data can also be collected before or during a participant’s experience.

The feedback received from intercept surveys is usually collected via tablets or paper and pencil interviewing techniques.

If utilizing tablets or other electronic devices, our intercept survey company recommends using a platform with offline functionality.

Do not rely on Wi-Fi offered by large venues such as concerts or sporting events, because you will be fighting to connect to the internet with thousands of people.

Intercept survey example

Compared to other types of market research methods, intercept surveys allow for immediate, top-of-mind feedback from your customers.

For example, to test the success of a digital billboard at a New York Mets game, an intercept survey company representing Pepsi can conduct market research outside of Citi Field.

After the game, interviewers will approach fans as they are leaving the stadium to ask questions like:

• What billboard(s) did you remember seeing inside Citi Field?
• What type of food or beverage did you consume during the game?
• Are you more likely to choose Pepsi or Coca-Cola? What is the reason for this choice?

Drive Research conducted intercept surveys at 5 college football stadiums across the country.

Learn about our objectives, approach, and outcomes of the stadium intercepts.

Intercept survey advantages ✅

By approaching an audience remotely after the experience you are trying to test, the context is top of mind.

Interviewers in turn receive a fresh, candid response. Often times online or email surveys aren’t sent until days/weeks/months after an event has taken place.

This space in time can allow for a misguided representation of what actually happened.

Recommended Reading: Key Benefits of Offline Surveys.

Intercept survey disadvantages ❌

With this specific example, Pepsi would need permission from Citi Field to conduct this survey. Without permission, there is no survey and they’re back to the market research drawing board.

Another drawback to intercept surveys is lower participation rates compared to other market research methodologies. If people are leaving a venue, they are ready to go home or to their next destination.

They likely are not prepared or willing to stop and take an unsolicited survey. Rewards or trinkets are important to offer here.

7. Ad Concept Testing

Ad concept testing can be considered both quantitative and qualitative market research depending on the approach that is used.

F or example, brands can utilize online surveys and/or focus groups to measure consumer feedback regarding a set of advertisements.

The objective of ad concept testing is to compare various advertising or marketing messages to see which of the tested ads resonate most with the brand’s target audience.

For an in-depth overview, I recommend reading The Ultimate Guide to Ad Concept Testing Surveys .

Advantages to ad concept testing ✅

Rely on data-driven marketing strategies 

Ad concept testing is an excellent way to develop and refine marketing campaigns before launching them to the public.

Think of it like this. Buying a house is a huge investment. For this reason, many homebuyers tour and assess the property to limit any unwarranted costs after purchasing it.

The same analogy can be used for data-driven marketing strategies .

Spend marketing dollars more wisely

An ad concept testing survey assures that you are putting your money into the right message and design before investing too much money.

Better yet, this type of market research can help brands increase their return on investment than not conducting any research at all.

Disadvantages to ad concept testing surveys ❌

While I’d say the pros of ad concept testing far outweigh the negatives, I’ll play devil's advocate for just a moment.

Just like any market research study, if done incorrectly concept testing can produce misleading and inaccurate data.

As a result, brands end up making near-useless decisions as they drain more time and resources into a marketing campaign.

How can you ensure it is done correctly so that doesn’t happen? I’ll be frank – stop working with a marketing agency for ad concept testing .

Here’s why.

8. PR Surveys

PR surveys gather public opinion about a certain topic and are a useful type of market research to invest in. 

A quantitative form of research, PR surveys are a fantastic way for businesses to garner publicity as they gather statistical data that can be used by news outlets for various stories. 

These surveys are also referred to as:

• Content surveys
• Public opinion polls

When working with a PR survey company , brands can administer the questionnaire to a specific demographic group or the general population. From there, the standard online survey process is followed. 

Advantages of PR surveys ✅

There are plenty of benefits to conducting public relations surveys . 

We’re stating the obvious here, but journalists are always hungry for the latest findings on any topic. Using data from a PR survey in a press release is a great way to attract attention from journalists. 

Grow brand awareness

PR surveys can draw potential customers and clients to your brand. Say a figure from your custom PR survey catches the eye of a journalist and it ends up in a popular publication. 

Not only will you have your statistics published, but this exposure has the chance to draw several people to your business. 

Generate more backlinks and improve website visibility

All this activity will positively affect your brand’s website, too. 

Your data being referenced on news publication websites has the chance to:

• Generate backlinks
• Increase your domain authority 
• Boost website traffic 

For example, Drive Research often conducts public relations surveys as a link-building strategy . Our research has been featured on USA Today, CNBC, Yahoo News, and more sites. As a result, we've seen thousands more pageviews to our website and an improved domain authority

Be seen as an industry thought leader

When a brand is linked to accurate data, it automatically is seen as a trusted source by the public. People will begin to associate your organization with having reliable information about a specific topic.

Again–this could lead to increased customer activity and loyalty.

Disadvantages of PR surveys ❌

One disadvantage of PR surveys is simply choosing a topic to conduct a study on. 

In a way, this could be seen as a “good” disadvantage–having too many topics is better than having too few.

But to get public attention, you’ll need to choose the perfect topic. This takes time and will require teamwork. 

Conducting a PR survey does not automatically guarantee you will see media attention from the results. It is important to find a topic that is unique and headline-worthy.

9. Mystery Shopping

Mystery shopping is a type of market research using professionally trained shoppers to assess an experience in a natural storefront or retail environment.

Both qualitative and quantitative, mystery shopping is a perfect project to test all areas of customer service.

Mystery shopping examples

Two common best practices of mystery shopping are recruiting actual customers or hiring a market research team to uncover key business findings.

Say you are the owner of an Italian restaurant and you want to test how friendly the wait staff is. You can hire actual customers to eat at your restaurant by providing them with an evaluation form to track their experience.

Another example of mystery shopping could be testing employees’ knowledge of your product or service line.

A bank or financial institution could choose to hire a mystery shopping research company to call and speak with a loan officer as if they were a prospective customer looking to buy a house.

In this example, a bank could evaluate their employer based on:

• Knowledge of home and mortgage loan services
• Ability to communicate and identify a solution
• Speaking in a friendly and professional manner
• Following through on a promise to follow up with the “prospective customer”

Mystery shopping advantages ✅

Compared to survey questions that skew positive answers, mystery shopping can provide informal opinions and feedback on a variety of in-store elements such as cleanliness, product placement displays, and store layout.

The value and results found from partnering with a mystery shopping company , allow organizations to reevaluate their business from the outside looking in.

This type of market research clearly identifies training needs and sales opportunities to ensure a positive customer relationship on the front line.

Mystery shopping disadvantages ❌

When considering mystery shopping as a market research study you must also take into account, that a participant’s experience in a store only represents a single interaction with the staff and store location.

A busy day, short staff, or various other customer service elements can cause a poor experience. This single instance may not truly represent a typical customer visit.

10. Shop-Alongs

A similar market research methodology to mystery shopping is shop-along research .

A shop-along is where an interviewer accompanies a customer while they browse a store for different items, asking a series of questions throughout the consumer’s shopping experience .

This is to likely take place in a grocery store or various retail locations.

Those who participate in a shop-along are either pre-recruited by a shop-along company or intercepted on the spot before entering the store.

In either case, participants are usually rewarded with high cash incentives because of the level of evasiveness during their shopping experience.

Shop-along research advantages ✅

An interviewer can study several different action behaviors during a shop-along to see if a customer interacted with an end cap or what path they took from one department to the next.

The shop-along experience can also be more interactive, with an interviewer asking the participant questions like:

• You looked at this item but put it back on the shelf. What was your reason for this?
• Do you typically visit the produce section first upon entering the store? Why or why not?
• Do sales such as, “buy 2 get 1” influence your buying decision? Why or why not?

Shop-along research disadvantages ❌

A drawback to shop-along research is negatively affected data. Because participants know they’re being studied, they may drift away from their normal purchasing behaviors and decisions.

Customers might choose a product they otherwise would not, like buying name-brand products instead of their typical store products in fear that their purchase will be viewed as cheap.

Example of a shop-along study

Grocery or department store locations aren’t the only markets that can benefit from shop-along research, brands sell their products in these locations too.

Take, for example, Downy. Downy would like to understand the purchasing behaviors behind customers looking to buy laundry detergent.

To blind the study, a shop-along company would intercept customers on the spot.

The interviewer would list different products (eggs, milk, etc.) to determine if laundry detergent is on the customer’s grocery list. For this type of shop-along research, the participant should be shopping in an unbiased and natural environment.

Once reached the laundry detergent aisle, an interviewer will ask the same questions as any other product.

The customer will likely provide honest insight into their purchasing decision because they don’t know this is the purpose of the study.

Recommended Reading: Understanding Accompanied Shopping Trips in Market Research

💡 Pro Tip: Hire a shop-along research company

To avoid misconstrued data, it is important to work with a shop-along company as they will provide experienced interviewers to ease the nerves of the consumer.

Better yet, a shop-along research company will work with your team to design evaluation forms and understand your unique project needs.

11. Focus Groups

Focus groups are a form of qualitative research that involves an open dialogue between 4 to 12 participants and a trained moderator to guide the discussion.

A focus group company will often recommend holding two separate groups to answer the same questions.

If only moderating one focus group, you may have 3 axe grinders steering the discussion in one way, which will lead to inaccurate feedback.

Having a second focus group will act as a gut check to verify the findings from the first group.

Focus group participants often answer questions such as:

• How would you buy X product?
• What would you change about X product?
• What did you like about X product? What didn’t you like about X product?

Focus group discussion advantages ✅

A focus group allows a group of targeted individuals to talk through their opinions, reactions, and feelings surrounding a product, commercial, advertisement, etc.

This targeted group of individuals generally offers insight into how the larger market would react to these same marketing tactics.

These group discussions are best held at a focus group facility equipped with a one-way mirror.

In doing so, you can have an inside look while research is conducted – a quality not a lot of other research methodologies can provide.

Focus group discussion disadvantages ❌

With higher quality research and data, comes a higher price tag. Focus group fees depend on a variety of factors such as time of day, length of the focus group, the demographic of participants, amount of travel, etc.

Oftentimes businesses choose to conduct online focus groups to reduce the cost of market research. Remote focus groups decrease costs associated with qualitative recruitment, travel, facility rental, and more.

You must also be wary of focus group moderator biases. The moderator running the session may subconsciously ask questions in a way that influences the participants of a focus group.

These biased interactions can skew the data of focus group results.

Recommended Reading: Ultimate Guide to Online Focus Groups

12. In-Depth Interviews

In-depth interviews (IDIs) are a qualitative market research method involving a direct, one-on-one engagement with individual participants.

IDIs are not bound to a single location as they can be conducted in person, on the phone, or via webchat.

However, if the study requires visuals or videos to share, then an in-person or web conference interview is best.

In-depth interview example

In recent years, there has been an increase in B2B organizations utilizing in-depth interviews to speak with subject-matter experts who have a career in a specific industry.

For example, Cisco may consider using IDI research to speak with CEOs or IT purchasing managers to understand their buying process for technology equipment.

In-depth interviews can reveal information such as:

• The decision-making process for selecting a product
• Any stakeholders involved in the B2B buying decision
• What factors are considered before making the purchase
• Whether the company is happy with the product they chose

In-depth interview advantages ✅

As opposed to quick phone surveys , IDIs are reserved for deeper conversations lasting anywhere from thirty to ninety minutes.

IDIs also include more than just a survey representative but many roles of a market research company such as a moderator , a senior research analyst, and a project manager.

For this reason, it is important to have a scheduled meeting time for the in-depth interview company and participant to speak.

In-depth interviews disadvantages ❌

The downside to this type of market research is the time commitment and large budget necessary for conducting in-depth interviews.

Because participants tend to be high-level executives, some type of incentive is usually required to encourage participation.

With this in mind, there is a tedious vetting process that is now required to make sure potential respondents aren’t cheating the system to make a quick buck.

Once all qualified participants are chosen and the IDIs are scheduled, in-depth interview companies will then transcribe, analyze, and report back their findings.

Recommended Reading: Higher Rewards Can Equal Lower Market Research Costs - Here's Why

13. Feasibility Studies

A feasibility study is a type of market research that predicts the success or failure of a new business venture.

This could be a new product, service, concept, or location. It utilizes both primary and secondary market research to analyze the outcome of an idea or potential concept.

Drive Research often conducts feasibility studies for: 

• New product development
• New service launches
• New business concepts
• New business locations or an expansion to a new market

Many businesses find it important to work with a feasibility studies company and invest a little money now, before wasting money on a failed business venture down the road.

Advantages of feasibility studies ✅

Before investing too much money and time into a new product, service, or site location, a feasibility study relies on   predictive analytics   to inform better business decisions.

This not only gives business owners peace of mind but is a great study to present to potential investors as well.

Feasibility studies can also provide great insight to help encourage the success of a new concept such as:

• Who is the target audience?
• How likely are they to purchase this product or service?
• What are their main sources of awareness? 
• Who are your competitors?

When introducing a new concept or location to the market it is best to make data-driven decisions. This is not the time to rely on assumptions or what you think will work.

Disadvantages of feasibility studies ❌

Feasibility studies are a more expensive type of market research. Because this methodology requires several components such as secondary research, competitor analysis, and pricing analysis it takes time to accomplish each task.

The more project management time a project takes, the more expensive the project becomes. As a result, new businesses do not have the budget needed for this methodology. 

Benefits of hiring a full-service market research company

There is no one right way to conduct market research.

With different types of market research methodologies growing every year, it is helpful to partner your business objectives with a full-service market research company to make well-informed business decisions about your product offerings.

Whether it be how best to reach your target audience or learning the buying behaviors among current customers, a marketing research firm will work with you to decide what methodology is most beneficial for an organization.

Partnering with a company that knows your industry can give you the best recommendation and make market research a less daunting tactic.

Recommended Reading: 5 Factors to Consider When Choosing a Market Research Firm

Contact Our Full-Service Market Research Company

Drive Research is a national market research company located in Upstate NY . Our team has the knowledge and tools to design a robust market research study for a variety of organizations across the country.

Interested in learning more about our market research services ? Reach out through any of the four ways below.

• Message us on our website
• Email us at  [email protected]
• Call us at  888-725-DATA
• Text us at 315-303-2040

Emily Rodgers

A SUNY Cortland graduate, Emily has taken her passion for social and content marketing to Drive Research as the Marketing Manager. She has earned certificates for both Google Analytics and Google AdWords.

Learn more about Emily, here .

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Types of Market Research and Their Differences

• Market Research

There are many different types of market research that cover various areas of study, and as a result are often misunderstood.

Whether you’re interested in learning more about your customer’s buying habits or how much they might pay for a new product, market research can help (if you use it correctly).

To help you identify which type of market research is right for you, we’re going to outline the different types, their purposes, and when to use each one.

Common Types of Market Research

By “types of research” I don’t necessarily mean how you’re collecting data. Instead, I mean the procedures and methodology used to analyze the data collected.

These procedures include market segmentation, product testing, advertising testing, key driver analysis for satisfaction and loyalty, usability testing, awareness and usage research, and pricing research (using techniques such as conjoint analysis), among others.

Market Segmentation

When conducting market segmentation studies, we’re generally asking survey questions aimed at capturing needs, values, attitudes, behaviors and demographics. A B2B company might also want to investigate firmographic data such as company size, revenues, and product category that are relevant to the industry in question.

Marketing can’t effectively speak to every type of person or business at the same time, so one of the main goals of market segmentation is to allow for more efficient and effective marketing tactics.

Without market segmentation companies are shooting in the dark and wasting valuable bullets. They may hit a customer by accident, but they would miss a lot of others.

Product Testing

A detailed understanding of how your product meets (or doesn’t meet) your customer’s needs is crucial both to product development and marketing, so these types of market research studies need to be conducted throughout a product’s life.

Ultimately you should be able to make informed “go” or “not go” decisions about new features and products before launch, and thus save capital, time and effort.

Successful product testing should:

• Give insight into product/service viability by investigating competing and substitute alternatives alongside customers’ willingness to embrace new products/services.
• Determine competitive advantage as well as possible threats from similar products/services.
• Identify the products with the highest revenue potential.
• Clarify what improvements should be prioritized before a product launch (or re-launch).
• Pinpoint which product features (both existing and potential) are most important to your target audience.
• Help produce marketing messages to change or enhance existing perceptions about your products/services.

Advertising Testing

Like product testing, tests of your advertising campaigns can save you valuable time and resources. By taking potential campaigns directly to your audience and gauging their response you can focus on creating truly impactful advertising.

Satisfaction and Loyalty Analysis

Satisfied customers aren’t necessarily loyal customers , but consistently measuring customer satisfaction is a great way to increase customer retention.

This type of research is aimed at identifying key drivers of satisfaction and measuring the likelihood of customers to continue using a company’s products and services.

The goals of these kinds of studies are:

• Determine what factors influence loyalty, advocacy, and repeat purchases, including product/service attributes, company operation, customer service, price, etc.
• Carefully monitor overall satisfaction, recommendation likelihood, and defection likelihood over time.
• Provide early warnings about emerging gaps in product/service performance, customer service, and processes that might lead to customer defection.
• Help identify areas of the product or service that need improvement to meet changing needs.
• Guide the creation and/or ongoing development of customer loyalty and retention programs.
• Signal when organizational changes need to be made to improve operations and customer retention.

Brand Awareness and Reach

By conducting regular, well-designed brand awareness surveys you can keep tabs on how effective your marketing campaigns really are.

When done right, a brand awareness survey can help you measure:

• Brand Recall: Can a customer spontaneously recall your brand, or do they think first of a competitor?
• Brand Recognition: When presented with a list of brands, does your audience recognize yours as a reputable option?
• Brand Identity: Brand identity is what you as a marketing team create. It’s important to determine whether these efforts are being successful.
• Brand Image: While brand identity is created by the brand itself, a brand’s image is based in the customer’s perception alone. Tracking disparities in these two can reveal gaps in your marketing efforts.
• Brand Trust: In an era of data breaches, keeping tabs on your levels of brand trust is key. If your brand doesn’t appear trustworthy, you will have difficulty retaining customers.
• Brand Loyalty: Loyal customers can become evangelists, but you need to consistently track loyalty levels to determine how often this transformation is happening.
• Customer Profile: Changes in your core customer base may signal the need for a pivot, either in the product or your marketing messages (or both).

For more on starting your own brand awareness initiative, see our guide on these critical marketing surveys .

Pricing Research

Surveys that ask customers to choose between different products with unique features and price points, typically done via conjoint analysis , can help you identify what features are most valuable to your audience and what they’d be willing to pay for them.

Combined with some basic research on your competitors’ pricing, these insights can give you a distinct advantage in pricing your products and services.

Knowing Which Type of Research to Use

When to use each of these different types of market research data collection methods and types of research depends on the business issues, we are dealing with in one or more of four key areas:

• Awareness : let the market know that the product or service exists
• Targeting : reach the target segments with the highest profit potential
• Acquisition : optimize the marketing message, offer, and price that will close the sale
• Retention : generate repeat purchases from current customers

The chart below, which we call the Relevant Wheel, shows when it is most appropriate and relevant to conduct different types of research.

Our clients at Relevant Insights often use this chart as a reference to determine when a particular type of research is needed. Once this is defined, we then discuss the most appropriate qualitative or quantitative data collection methods.

Data Collection and Analysis Methods

Here we need to make a distinction between data collection methods and market research types based on analytical approach, which are often confused. Data collection methods differ based on whether we want to conduct quantitative or qualitative research.

Qualitative research , which is exploratory in nature, usually uses data collection methods such as focus groups, triads, dyads, in-depth interviews, uninterrupted observation, bulletin boards, and ethnographic participation/observation.

Quantitative research , which looks to quantify a problem, collects data through surveys in different modalities (online, phone, paper), audits, points of purchase (purchase transactions), and click-streams.

Choose the Market Research Type that Meets Your Needs

Next time you wonder what type of market research to conduct, I invite you to ask yourself where the particular problem at hand belongs: Awareness, Targeting, Acquisition or Retention. Then take a look at the Relevance Wheel to find the approach that will help you answer your specific questions.

If you choose your method carefully market research can give you a big advantage over your competition.

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The Ultimate Guide to Market Research: Types, Benefits, and Real-World Examples

Team Fratzke

Today's consumers hold a lot of power when making purchase decisions. With a quick inquiry in a search engine or search bar within a social media platform, they can access genuine reviews from their peers without relying on sales reps.

Considering this shift in consumer behavior, adjusting your marketing strategy so it caters to the modern-day buying process is essential . To achieve this, you must thoroughly understand your target audience, the market you operate in, and the factors influencing their decision-making.

This is where market research can be leveraged so you stay current with your audience and industry. 

Article Overview

In this article, we’ll walk you through everything you need to know about how to conduct market research, including:

• Why market research is essential for understanding your target audience, the market you operate in, and factors influencing decision-making
• What are the different types of market research, such as primary and secondary market research
• How to collect information about your customers and target market to determine the success of a new or existing product, improve your brand, and communicate your company's value
• Real-world examples of companies leveraging market research

What is market research?

Market research is a necessary process that involves collecting and documenting information about your target market and customers. This helps you determine the success of a new product, improve an existing one, or understand how your brand is perceived. You can then turn this research into profits by  developing marketing strategies and campaigns to effectively communicate your company's value .

While market research can provide insights into various aspects of an industry, it is not a crystal ball that can predict everything about your customers. Market researchers typically explore multiple areas of the market, which can take several weeks or even months to get a complete picture of the business landscape.

Even by researching just one of those areas, you can gain better insights into who your buyers are and what unique value proposition you can offer them that no other business currently provides.

Of course, you can simply use your industry experience and existing customer insights to make sound judgment calls. However, it's important to note that market research provides additional benefits beyond these strategies. There are two things to consider:

• Your competitors also have experienced individuals in the industry and a customer base. Your immediate resources may equal those of your competition's immediate resources. Seeking a larger sample size for answers can provide a better edge.
• Your brand's customers do not represent the entire market's attitudes, only those who are attracted to your brand.

The market research services industry is experiencing rapid growth , indicating a strong interest in market research as we enter 2024. The market is expected to grow from approximately $75 billion in 2021 to $90.79 billion in 2025, with a compound annual growth rate of 5%. 

Your competitors have highly skilled individuals within the industry, meaning your available personnel resources are likely similar to those of your competitors. So what are you going to do to get ahead?

You’re going to do thorough market research, which is why seeking answers from a larger sample size is essential. Remember that your customers represent only a portion of the market already attracted to your brand, and their attitudes may not necessarily reflect those of the entire market. You could be leaving money on the table by leaving out untapped customers .

Why do market research?

Market research helps you meet your buyers where they are. Understanding your buyer's problems, pain points, and desired outcomes is invaluable as our world becomes increasingly noisy and demanding. This knowledge will help you tailor your product or service to appeal to them naturally. 

What’s even better is when you're ready to grow your business, market research can also guide you in developing an effective market expansion strategy.

Market research provides valuable insights into factors that impact your profits and can help you to :

• Identify where your target audience and current customers are conducting their product or service research
• Determine which competitors your target audience looks to for information, options, or purchases
• Keep up with the latest trends in your industry and understand what your buyers are interested in
• Understand who makes up your market and what challenges they are facing
• Determine what influences purchases and conversions among your target audience
• Analyze consumer attitudes about a particular topic, pain, product, or brand
• Assess the demand for the business initiatives you're investing in
• Identify unaddressed or underserved customer needs that can be turned into selling opportunities
• Understand consumer attitudes about pricing for your product or service.

Market research provides valuable information from a larger sample size of your target audience, enabling you to obtain accurate consumer attitudes. By eliminating any bias or assumptions you have about your target audience, you can make better business decisions based on the bigger picture. 

As you delve deeper into your market research, you will come across two types of research: primary and secondary market research . Simply put, think of two umbrellas beneath market research - one for primary and one for secondary research. In the next section, we will discuss the difference between these two types of research. That way, if you work with a market who wants to use them, you’ll be ready with an understanding of how they can each benefit your business.

Primary vs. Secondary Research

Both primary and secondary research are conducted to collect actionable information on your product. That information can then be divided into two types: qualitative and quantitative research. Qualitative research focuses on public opinion and aims to determine how the market feels about the products currently available. On the other hand, quantitative research seeks to identify relevant trends in the data gathered from public records. 

Let's take a closer look at these two types.

Primary Research

Primary research involves gathering first-hand information about your market and its customers. It can be leveraged to segment your market and create focused buyer personas . Generally, primary market research can be categorized into exploratory and specific studies.

Exploratory Primary Research

This type of primary market research is not focused on measuring customer trends; instead, it is focused on identifying potential problems worth addressing as a team. It is usually conducted as an initial step before any specific research is done and may involve conducting open-ended interviews or surveys with a small group of people.

Specific Primary Research

After conducting exploratory research, businesses may conduct specific primary research to explore issues or opportunities they have identified as necessary. Specific research involves targeting a smaller or more precise audience segment and asking questions aimed at solving a suspected problem. Specific primary research reveals problems that are unique to your audience so you can then offer a unique (and valuable) solution.

Secondary Research

Secondary research refers to collecting and analyzing data that has already been published or made available in public records. This may include market statistics, trend reports, sales data, and industry content you already can access. Secondary research really shines when you go to your competitors . The most commonly used sources of secondary market research include:

• Public sources
• Commercial sources
• Internal sources

Public Sources

When conducting secondary market research, the first and most accessible sources of information are usually free . That’s right–these public sources are free and at your fingertips so there’s no reason for you to not be checking them out and leveraging them for your own gain.

One of the most common types of public sources is government statistics. According to Entrepreneur, two examples of public market data in the United States are the U.S. Census Bureau and the Bureau of Labor & Statistics. These sources offer helpful information about the state of various industries nationwide including:

Commercial Sources

Research agencies such as Pew, Fratzke, Gartner, or Forrester often provide market reports containing industry insights from their own in-depth studies . These reports usually come at a cost if you want to download and obtain the information, but these agencies are experts at what they do, so the research is most likely valuable.

Internal Sources

Internal sources of market data can include average revenue per sale, customer retention rates, and other data on the health of old and new accounts. They are often overlooked when it comes to conducting market research because of how specific the data is; however, these sources can be valuable as they provide information on the organization's historical data.

By analyzing this information, you can gain insights into what your customers want now . In addition to these broad categories, there are various ways to conduct market research. Let’s talk about them.  

Types of Market Research

• Interviews (in-person or remote)

Focus Groups

• Product/ Service Use Research

Observation-Based Research

Buyer persona research, market segmentation research, pricing research.

• Competitive Analysis Research

Customer Satisfaction and Loyalty Research

Brand awareness research, campaign research.

Interviews can be conducted face-to-face or virtually, allowing for a natural conversation flow while observing the interviewee's body language. By asking questions about themselves, the interviewee can help you create buyer personas , which are made by using information about the ideal customer, such as:

• Family size 
• Challenges faced at work or in life 

And other aspects of their lifestyle. This buyer profile can shape your entire marketing strategy , from the features you add to your product to the content you publish on your website. Your target audience will feel that the marketing was made just for them and will be drawn to your product or service.

Focus groups are market research involving a few carefully selected individuals who can test your product, watch a demonstration, offer feedback, and answer specific questions. This research can inspire ideas for product differentiation or highlight the unique features of your product or brand that set it apart from others in the market.  This is a great market research option to gain specific feedback, which you can use to improve your services .

Product/Service Use Research

Product or service usage research provides valuable insights into how and why your target audience uses your product or service.  This research can help in various ways including:

•  Identifying specific features of your offering that appeal to your audience. 
• Allowing you to assess the usability of your product or service for your target audience. 

According to a report published in 2020, usability testing was rated the most effective method for discovering user insights, with a score of 8.7 out of 10. In comparison, digital analytics scored 7.7, and user surveys scored 6.4.

Observation-based research is a process that involves observing how your target audience members use your product or service. The way that you intended your product or service to be used may not be the actual way that it is used. Observation-based research helps you understand what works well in terms of customer experience (CX) and user experience (UX), what problems they face, and which aspects of your product or service can be improved to make it easier for them to use.

To better understand how your potential customers make purchasing decisions in your industry, it is essential to know who they are. This is where buyer persona research comes in handy. Buyer or marketing personas are fictional yet generalized representations of your ideal customers. They give you someone to whom you want your marketing efforts to empathize and move, even though they don’t really exist. 

Gathering survey data and additional research to correctly identify your buyer personas will help you to visualize your audience so you can streamline your communications and inform marketing strategy . Key characteristics to include in a buyer persona are:

• Job title(s)
• Family size
• Major challenges

Market segmentation research enables you to classify your target audience into various groups or segments based on specific and defining characteristics. This method allows you to understand their needs, pain points, expectations, and goals more effectively.

Pricing research can provide valuable insights about the prices of similar products or services in your market. It can help you understand what your target audience expects to pay for your offerings and what would be a reasonable price for you to set. Correct pricing is important because if you set it too high, consumers will go to your cheaper competitor; but if you set it too low, your consumers may become suspicious of your product or service and still end up with your competitor. This information allows you to develop a solid pricing strategy aligning with your business goals and objectives. 

Competitive Analysis

Competitive analyses are incredibly valuable as they provide a deep understanding of your market and industry competition. Through these analyses, you can gain insights like: 

• What works well in your industry 
• What your target audience is already interested in regarding products like yours
• Which competitors you should work to keep up with and surpass 
• How you can differentiate yourself from the competition

Understanding customer satisfaction and loyalty is crucial to encouraging repeat business and identifying what drives customers to return (such as loyalty programs, rewards, and exceptional customer service). Researching this area will help you determine the most effective methods to keep your customers coming back again and again. If you have a CRM system, consider further utilizing automated customer feedback surveys to improve your understanding of their needs and preferences.

Brand awareness research helps you understand the level of familiarity your target audience has with your brand. It provides insights into your audience members' perceptions and associations when they think about your business.This type of research reveals what they believe your brand represents. This information is valuable for developing effective marketing strategies, improving your brand's reputation, and increasing customer loyalty .

To improve your marketing campaigns, you need to research by analyzing the success of your past campaigns among your target audience and current customers. This requires experimentation and thoroughly examining the elements that resonate with your audience. By doing so, you can identify the aspects of your campaigns that matter most to your audience and use them as a guide for future campaigns. 

Now that you understand the different market research categories and types let's look at how to conduct your market research.  Using our expertise and experience, we’ve created a step-by-step guide to conducting market research.

How to Do Market Research (Detailed Roadmap)

• Define the problem or objective of the research. 
• Determine the type of data needed. 
• Identify the sources of data. 
• Collect the data. 
• Analyze the data. 
• Interpret the results. 
• Report the findings. 
• Take action based on the findings.

1. Define the problem or objective of the research

Defining the problem or objective of the research is the first step in conducting market research. This involves identifying the specific issue that the research is trying to address. It is essential to be clear and specific about the research problem or objective, as it will guide the entire research process.

2. Determine the type of data needed

After defining the research problem or objective, the next step is determining the data type needed to address the issue. This involves deciding whether to collect primary or secondary data. Primary data is collected directly from the source, while secondary data is collected from existing sources such as government reports or market research studies.

3. Identify the sources of data

Once the data type has been determined, the next step is identifying the data sources. This involves identifying potential sources of primary and secondary data that can be used to address the research problem or objective. Primary data sources can include surveys, focus groups, and interviews, while secondary data sources can include government reports, industry publications, and academic journals.

4. Collect the data

After identifying the data sources, the next step is to collect the data. This involves designing and implementing a data collection plan consistent with the research problem or objective. The data collection plan should specify the methods and procedures for collecting data, sample size, and sampling method.

5. Analyze the data

Once the data has been collected, the next step is to analyze the data. This involves organizing, summarizing, and interpreting the data to identify patterns, relationships, and trends. The research problem or objective should guide the data analysis process and be conducted using appropriate statistical methods and software.

6. Interpret the results

After analyzing the data, the next step is to interpret the results. This involves drawing conclusions from the data analysis and using the results to address the research problem or objective. It is essential to analyze the results objectively and to avoid making assumptions or drawing conclusions that are not supported by the data.

7. Report the findings

Try identifying common themes to create a story and action items.To make the process easier, use your favorite presentation software to create a report, as it will make it easy to add quotes, diagrams, or call clips.

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

• Background: What are your goals, and why did you conduct this study?
• Participants: Who you talked to? A table works well to break groups down by persona and customer/prospect.
• Executive Summary: What were the most exciting things you learned? What do you plan to do about it?
• Key Findings: Identify the key findings using data visualizations and emphasize key points.
• Recommendations + Action Plan: Your analysis will uncover actionable insights to fuel strategies and campaigns you can run to get your brand in front of buyers earlier and more effectively. Provide your list of priorities, action items , a timeline, and its impact on your business.

8. Take action based on the findings

The final step in conducting market research is to take action based on the findings. This involves using the results to make informed decisions about the marketing strategy, product development, or other business decisions. It is important to use the findings to drive action and to monitor and evaluate the effectiveness of the action taken continuously.

How to Prepare for Market Research Projects

Identify a persona group to engage, prepare research questions for your market research participants, list your primary competitors.

The idea is to use your persona as a reference point for understanding and reaching out to your industry's audience members. Your business might cater to more than one persona, and that's completely acceptable! However, you must be mindful of each persona while strategizing and planning your content and campaigns. 

How to Identify the Right People to Engage for Market Research

When selecting a group on which to conduct market research , it is essential to consider individuals with the same characteristics as your target audience. 

If you need to research multiple target audiences, recruit separate groups for each one. Select people who have recently interacted with you by looking through social media for post interactions or seeing if they’ve made recent purchases from you.

If you are planning to conduct an evaluation, it is recommended that you focus on people who have completed it within the last six months. However, if you have a longer sales cycle or a specific market, you can extend the period up to a year. It is crucial to ask detailed questions during the evaluation, so the participants' experience must be fresh.

Gather a mix of participants

If you want to expand your customer base, you’re going to want to get viewpoints of your product or service from every angle. Consider getting this mix by recruiting individuals who have already purchased your product, those who have bought a competitor's product, and those who haven't purchased anything. While targeting your existing customers may be the easiest option, gathering information from non-customers can help you gain a more balanced market perspective .

We recommend taking the following steps to select a mix of participants:

• Create a list of customers who made a recent purchase . This is usually the most accessible group to recruit. If you have a CRM system with list segmentation capabilities, run a report of deals that closed within the past six months and filter it for the characteristics you're looking for. Otherwise, work with your sales team to get them a list of appropriate accounts.
• Create a list of customers who were in an active evaluation but didn't make a purchase. You should get a mix of buyers who either purchased from a competitor or decided not to purchase. Again, you can obtain this list from your CRM or your Sales team's system to track deals.
• Use social media to call for participants. Try reaching out to people who follow you on social media but decided not to buy from you. Some may be willing to talk to you and explain why they did not purchase your product.
• Leverage your network . Spread the word that you're conducting a study to your coworkers, former colleagues, and LinkedIn connections. Even if your direct connections don't qualify, some will likely have a coworker, friend, or family member who does.
• Choose an incentive to motivate participants to spend time on your study. If you're on a tight budget , you can reward participants for free by giving them exclusive access to content. 

Related Resources:

• Digital Marketing Strategy: Keep It Simple
• 5 Marketing Predictions for the Looming Recession
• Recession Proof Marketing Strategies for Your Business
• Marketing Operations Framework - The Five Ps
• Biggest Marketing Challenges Leaders Face
• Digital Marketing Benchmarks & KPIs - How To Compare Your Performance

Preparation is key when conducting research in hopes of gaining productive and informative conversations. This involves creating a discussion guide, whether it is for a focus group, an online survey, or a phone interview. The guide should help you cover all the relevant topics and manage your time efficiently.

The discussion guide should be in an outline format, with an allocated time and open-ended questions for each section. All the questions must be open-ended, as asking closed questions may lead the interviewee to respond with a simple "yes" or "no" answer. You may need more detailed answers to make informed decisions, so be sure to ask follow-up questions as necessary.  Also leave out any leading questions as they may unintentionally influence the interviewee's response, skewing your research results.

It's essential to identify your competitors accurately and you may even have some hidden in plain sight.  There are some instances where your company's business division might compete with your main product or service, even though that company's brand might have a different focus. Take a look at Apple:  the company is known primarily for its laptops and mobile devices, but Apple Music competes with Spotify over its music streaming service.

From a content perspective, you might compete with a blog, YouTube channel, or similar publication for inbound website visitors — even though their products don't overlap with yours. An example of this is when a toothpaste company might compete with publications like Health.com or Prevention on specific blog topics related to health and hygiene, even though the magazines don't sell oral care products.

Here are a few ways to build your competitor list:

• Check your industry quadrant on G2 Crowd: This is a significant first step for secondary market research in some industries. G2 Crowd aggregates user ratings and social data to create "quadrants" that show companies as contenders, leaders, niche players, or high performers in their respective industries. G2 Crowd specializes in digital content, IT services, HR, e-commerce, and related business services.
• Download a market report: Companies like Forrester and Gartner offer free and gated market forecasts yearly on the vendors leading their industry. On Forrester's website, for example, you can select "Latest Research" from the navigation bar and browse Forrester's latest material using a variety of criteria to narrow your search. These reports are good assets to save on your computer.
• Use social media : Social networks can be excellent company directories if you use the search bar correctly. On LinkedIn, for example, select the search bar and enter the name of the industry you're pursuing. Then, under "More," select "Companies" to narrow your results to the businesses that include this or a similar industry term on their LinkedIn profile.

Identifying Content Competitors

Search engines can be beneficial when it comes to secondary market research . To identify the online publications competing with your business, start with the overarching industry term you identified earlier, and then come up with more specific industry terms that are related to your company . For example, if you run a catering business, you might consider yourself a "food service" company, as well as a vendor in "event catering," "cake catering," "baked goods," and so on.

Once you have this list, follow these steps:

• Google it: Running a search on Google for the industry terms that describe your company can be very beneficial. You may come across a mix of product developers, blogs, magazines, and other websites.
• Compare your search results against your buyer persona: Remember the persona you created during the primary research stage? You can use it to evaluate whether a publication you found through Google could steal website traffic from you. If the website's content aligns with what your buyer persona would want to see, it is a potential competitor and should be added to your list of competitors.

After a series of similar Google searches for the industry terms you identify with, look for repetition in the website domains that have come up.

When searching, examine the first two or three pages of results. These websites are considered reputable sources of content in your industry and should be monitored closely as you create your collection of videos, reports, web pages, and blog posts.

Market Research Examples

Mcdonald's focus on customer feedback and profiling.

McDonald's invests in developing a detailed consumer profile to attract and retain customers, including parents of young children who appreciate the family-friendly atmosphere and menus. The brand seeks feedback from customers through surveys and questionnaires in stores, social media, and its mobile app. It also monitors customer feedback on digital channels.

Nike's Extensive Research and Collaboration for Running Shoes Development

Nike invests heavily in creating running shoes that cater to the needs of its customers, which it determines through extensive market research and customer surveys. The brand goes to great lengths to understand its customers' preferences, such as the type of running surface, the distance they run, and their running style, to develop shoes that meet their specific needs.

In addition to customer surveys, Nike also collaborates with athletes to develop shoes that cater to their specific requirements. This research helps Nike improve its existing running shoe models and innovate new ones, ensuring that the brand stays ahead of the competition.

Disney employs focus groups that specifically cater to children to test out their new characters and ideas.

The Walt Disney Company invests millions of dollars in creating captivating stories tested for their effectiveness with children, the intended audience. Disney executives hold focus groups with preschoolers and kindergartners several times a year to gather their opinions and feedback on TV episodes, Disney characters, and more. 

This market research strategy is effective because children are the ultimate audience that Disney aims to please. The collected feedback helps the company improve existing content to meet the preferences of its audience and ensure continued success as a multi-billion dollar enterprise.

KFC tested its meatless product in specific markets before launching it nationwide.

In 2019, KFC began developing and testing a meatless version of its famous chicken. However, instead of immediately launching the product nationwide, they decided to test it in select stores in the Atlanta, Georgia area. 

This is an innovative and practical approach to market research, as it allows the company to determine the product's sales performance on a smaller scale before committing too many resources to it. If the meatless chicken fails to gain popularity in Georgia, KFC can make the necessary changes to the product before introducing it to the broader market.

Yamaha conducted a survey to determine whether to use knobs or sliding faders on the Montage keyboard.

Yamaha is a Japanese corporation that produces various products, from motorcycles to golf cars to musical instruments. When it began developing its new Montage keyboard, the team was unsure whether to use knobs or sliding faders on the product. 

To address this dilemma, Yamaha used Qualtrics to send a survey to their customers. Within just a few hours , they received 400 responses. By using survey feedback, Yamaha ensured that it was designing a product that would perfectly meet the preferences of its audiences.

The Body Shop used social listening to determine how to reposition brand campaigns based on customer feedback.

The Body Shop is a well-known brand that offers ethically sourced and natural products. They take pride in their core value of sustainability. The Body Shop team tracked conversations to understand the sustainability subtopics that were most important to their audiences. 

They found that their customers cared a lot about refills. Based on this information, the Body Shop team confidently relaunched their Refill Program across 400 stores globally in 2021, with plans to add another 400 in 2022. Market research confirmed that their refill concept was on the right track and also highlighted the need for increased efforts to demonstrate how much the Body Shop cares about its customers' values .

VideoTranscript

The takeaway.

Fratzke Consulting offers a comprehensive suite of market research services to help brands gain valuable insights into their target market, competitors, and industry trends. Our expert team utilizes various primary and secondary research methods to gather accurate and unbiased data, including surveys, competitive research, and industry reports. With Fratzke Consulting, you'll have the tools to succeed in today's rapidly evolving business landscape.

Interested in learning more? Book a free audit consultation today.

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Types of Market Research

• By Bibhas Tarafdar
• On December 28, 2023

The basis for making well-informed business decisions is market research. It enables businesses to compile crucial data about their target market, rivals, and market trends. We’ll explore the different kinds of market research, the approaches taken, and why it’s so important for every organisation in this blog article. Let’s get going!

Table of Contents

What is market research.

The process of gathering, examining, and evaluating information about a market, including its rivals, current and potential customers, and market trends. It is an essential activity for companies and organisations because it enables them to establish smart marketing plans, understand their target market, and make well-informed decisions.

Before diving into the main types of market research, first, let us know a bit more about the importance of market research due to which various types of market research surveys are available in the market today. So let’s know about the importance of market research.

What is the Importance of Market Research?

1. exploring market opportunities.

Businesses can find developing trends, market niches, and unexplored markets through market research. They can take advantage of new chances and remain competitive thanks to this information.

2. Competitive Analysis

Market research aids businesses in evaluating their rivals. Businesses can improve their own strategies and market positioning by researching the tactics, advantages, and disadvantages of competitors.

3. Product Development

Businesses can utilise market research to validate their concepts prior to devoting resources to product development. Product launches might be more profitable if designers know what features or enhancements consumers want.

4. Expansion and Diversification

Market research offers vital advice on the viability and possible success of such endeavours for businesses wishing to expand into new markets or diversify their product offerings.

5. Customer Satisfaction and Loyalty

Businesses can track customer satisfaction and loyalty through ongoing market research. Businesses can retain and expand their customer base by addressing problems and making adjustments in response to customer input.

For firms to remain competitive, develop, and satisfy changing consumer needs, market research is a crucial tool. It offers useful insights that guide strategic choices, lower risks, and promote growth, making it a crucial component of contemporary corporate operations.

Businesses and organisations need various types of market research data to assess their daily operations.

What are the 5 Types of Market Research?

There are a variety of types of market research but when it comes to the main types of market research, these 5 types of market research must be studied. Let’s have a look at them:

1. Primary Research

Primary research is data that you compile on your own while using a variety of techniques to reach the target audience directly. You own the data set because it is made up of data you created.

Participants’ responses are gathered as raw data, which is then analysed to draw conclusions from trends and comparisons about two types of results: exploratory information which establishes the nature of a problem that hasn’t yet been clearly defined and conclusive information carried out to address a problem that exploratory research identified.

When time is limited, this strategy works well for gathering many people’s opinions at once, but it has management problems of its own. The interviewer must plan a strategy for gathering responses and recording them while conversing with a large number of people.

For example:  

A small food business is thinking of introducing a new line of organic snacks, and it wants to learn more about potential customers’ preferences and get input on possible product concepts.

In this case, a survey was used as the main research approach to obtain information directly from potential clients. The survey’s results were extremely important in determining the direction of the new organic snack line’s product development and marketing plan.

The corporation was able to acquire precise and pertinent information that was suited to its business objectives through primary research.

2. Secondary Research

Secondary research makes use of information that has already been gathered, examined, and published; you do not own this information.

Since most material is available for free, secondary research methods like this one are less expensive than primary research methods.

By establishing a knowledge base, secondary research frequently serves as a prelude to main research operations. Primary market research would be done to improve comprehension because the information acquired might not provide the precise information to explain the outcomes.

Since manual administration of the amounts of information can be challenging, a recording system that can handle huge datasets is also required for logistics planning.

A modest clothing retailer is thinking about adding sustainable and eco-friendly items to its selection. In order to make wise decisions, they seek to obtain market information and industry insights on sustainable fashion.

In this case, secondary research made it possible for the store to compile useful data from pre-existing sources without running brand-new polls or data collection. Compared to starting from scratch with primary research, it assisted them in making wise decisions and saving time and resources.

3. Qualitative Research

The goal of qualitative research is to uncover and comprehend the underlying meanings, drives, viewpoints, and experiences of individuals or groups. 

It is largely used to learn more about how individuals behave, think, and perceive in different situations. Quantitative research, which works with numerical data and statistical analysis, is frequently contrasted with qualitative research.

For example: 

To learn more about the difficulties, feelings, and coping strategies faced by those who look after family members who are suffering from Alzheimer’s.

The problems, coping techniques, and emotional cost of caregiving were highlighted by this qualitative study, which gave rise to a comprehensive and complex understanding of the experiences of carers of Alzheimer’s patients. These revelations can help better support services and interventions for carers in similar circumstances.

4. Quantitative Research

The gathering of primary or secondary data that is numerical in character and hence more readily gathered is known as quantitative research .

This particular sort of market research is gathered by researchers since it may offer historical benchmarking based on hard data.

There are many methods for gathering this information, including polls, surveys, desk research, web statistics, and financial records. These methods can be exploratory in nature at this point without going into great detail.

Researchers can use quantitative market research to lay the groundwork for qualitative market research that will further explore their hypotheses.

For example:

To evaluate how well social media advertising affects consumers’ purchasing choices.

It is possible to draw the conclusion that the social media advertising campaign had a measurable and advantageous impact on customer purchase intentions based on the quantitative research findings. These results can be used by businesses to improve the effectiveness of their social media advertising campaigns and the impact they have on consumer behaviour.

5. Customer Research

A business’s present or potential consumers’ information is systematically gathered, examined, and interpreted through the process of customer research. Understanding consumer behaviours, requirements, preferences, and views is the main aim of customer research. This data aids organisations in making educated decisions about new product development, marketing tactics, enhancing consumer satisfaction, and more. 

To collect opinions and suggestions from patrons in order to enhance the general eating experience at XYZ Restaurant locations.

The XYZ Restaurant’s customer research yielded insightful findings about the attitudes and preferences of its patrons.

With this information at hand, the restaurant chain might make specific decisions to improve pricing strategies, service training at some specific locations, invest in the restaurant atmosphere, and think about menu diversity to answer consumer issues and enhance the entire dining experience. 

The success of the restaurant can ultimately be attributed to this customer-centred strategy’s ability to boost customer happiness and loyalty.

Other Main Types of Market Research

There are yet some main types of market research methodology. Here are the other main types of market research:

1. Brand Research

In order to understand many facets of a brand’s performance, perception, and positioning in the market, brand research involves acquiring and analysing data. Gaining knowledge that can assist organisations in making wise choices regarding their branding strategies and marketing initiatives is the aim of brand research.

For Example :

To evaluate the success of a well-known fast-food restaurant’s most recent rebranding initiatives.

A strategic business process called competitive analysis involves assessing and contrasting a company’s goods, services, and performance with those of its rivals. Gaining knowledge of the advantages and disadvantages of your company as well as those of your rivals will help you decide how to strengthen your position of competitive advantage in the market. 

For Example:

Company X looked at the price, product features, and customer feedback of its main rivals to determine where their own product offering and pricing strategy could be strengthened.

Product development research is a sort of market research technique that aims to collect information and insights to guide the development, enhancement, or refinement of a good or service.

 These activities eventually serve to guide the development process and produce a product that is more in line with market demands. Usability testing, focus groups, surveys, and customer feedback are all examples of product development research that can be used to influence the functionality, design, and features of a product.

To capitalise on the expanding health-conscious market, a food producer is developing a new plant-based, gluten-free snack bar.

4. Customer Segmentation

The process of segmenting a target market into different groups or segments based on shared traits, preferences, behaviours, or demographics is known as customer segmentation. 

Businesses can more effectively target their marketing, offerings, and services to each segment’s unique requirements and preferences thanks to this segmentation. It enables more efficient and individualised marketing tactics, which ultimately improve client satisfaction and boost corporate performance.

An online fashion store divides its clients into groups like “budget shoppers,” “luxury enthusiasts,” and “athletic wear enthusiasts” to tailor product recommendations and marketing efforts.

5. Employee Satisfaction and Engagement

Research on employee satisfaction and engagement involves methodically collecting and examining data in order to comprehend and enhance employee satisfaction and engagement levels inside an organisation. It focuses on determining how satisfied and devoted individuals are to their jobs, coworkers, and the company as a whole.

A mid-sized technology company called XYZ Corporation needs to evaluate the levels of employee engagement and satisfaction in order to pinpoint areas that might use improvement and boost overall performance and well-being.

How to Conduct Market Research?

Different studies and research require different ways and methods of market research. There can be a unique process for every study. However, the following steps are a common guideline for almost every research. Have a look at the following steps to learn how to conduct effective market research:

1. Setting Research Objective

Establishing the study’s objectives is the first stage in doing effective market research. Each study should aim to resolve a specific, well-defined issue. For instance, a business might look for consumer preferences, brand familiarity, or the relative efficacy of several ad campaigns.

2. Target Population

The next step is to decide who will be a part of the research after that. Because market research is an expensive procedure, a business cannot squander resources by gathering pointless information. The company should establish in advance which consumer groups will be examined in the study, as well as how the information will be gathered. They should also take into account the likelihood of statistical mistakes or bias in sampling.

3. Information Gathering

The next stage is to gather the information and examine the findings. This should be simple if the first two steps were correctly carried out. The findings of the survey will be gathered by the researchers, who will record the ages, genders, and other pertinent information of each respondent. The outcomes of their research are then explained in a marketing report that analyses this.

4. Research Analysis

The final step involves business decisions being made by firm executives based on their market research. Depending on the findings of their study, they can decide to target a new market demographic, alter their price point, or adjust a few product attributes. The outcomes of these adjustments may later be evaluated in additional market research, and the procedure will start afresh.

What are the Benefits of Efficient Market Research?

1. identify specifics on how customers view the brand.

Market research assists a researcher in understanding how the public views a company or brand in addition to producing facts.

2. Analyse the methods used by customers to communicate

Market research acts as a reference for communicating with both present and prospective customers.

3. Gain correct knowledge

 Market research gives organisations actual, reliable information that helps them be ready for future catastrophes. A company will surely advance by conducting a thorough market analysis; consequently, it will benefit from its current competition.

4. Identify the market’s size

Researchers can assess the market size that must be served in order to sell a good or service and turn a profit.

5. Select a suitable sales strategy

 Choose a detailed sales strategy based on the demands of the market so that the product or service can be positioned there.

6. Profitable business investment

It is a wonderful investment for any business because it provides them with vital information and demonstrates to researchers how to go in order to follow the correct course and generate the necessary sales.

In conclusion, market research is a crucial tool for companies and other organisations that want to succeed in the cutthroat business environment of today. 

It acts as a compass, directing strategic choices, lowering risks, and encouraging progress. We’ve examined the numerous forms and methodologies of market research throughout this article, highlighting its critical role in modern business operations.

The importance of market research was first and foremost emphasised, along with its role in identifying new prospects, conducting competitive assessments, guiding product creation, facilitating growth and diversification, and boosting client happiness and loyalty. 

Organisations may adapt and evolve, staying nimble in response to changing consumer needs, by routinely obtaining and analysing data about customer behaviours, preferences, and market trends.

Frequently Asked Questions (FAQs)

Q. What is the primary purpose of market research in business?

The main purpose of conducting market research is to collect and examine data regarding a market, its rivals, consumers, and trends. Businesses may use this information to make educated decisions, create winning marketing plans, and gain a deeper understanding of their target market.

Q. What are the main types of market research?

There are many different types of market research, including primary research (direct data collection), secondary research (analysing already existing data), qualitative research (understanding behaviours and perceptions), quantitative research (analysing numeric data), and customer research (examining consumer preferences and behaviours).

Q. How can organisations benefit from efficient market research?

Organisations may assess brand perception, customise communication methods, gather precise market insights, estimate market size, choose appropriate sales techniques, and make lucrative investments thanks to effective market research. It serves as a compass, pointing enterprises in a hostile environment in the right direction.

Bibhas Tarafdar

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Market research and marketing research: key differences and similarities.

• December 26, 2023

Unveiling the Dynamics: A Deep Dive into Emerging Market Research Trends

Top 10 market research tools: navigating the complex world of business.

More From Forbes

7 types of market research and how to improve them.

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By Matthew Bertram, Head of Strategy at EWR Digital & Co-Host of "The Unknown Secrets of Internet Marketing Podcast."

Data-driven decision-making (DDDM) is just a fancy term for making intelligent decisions based on what your data is telling you.

Modern market research combines DDDM with advanced technology to uncover even more granular data, which can be used to personalize market messaging and find potential areas for growth.

Traditionally, market research encompassed four major disciplines: primary, secondary, quantitative and qualitative. However, as technology and marketing have become sophisticated, we’ve divided many of these types of research and insights into individual processes that allow for more granular data collection.

So instead of relying on primary research from focus groups and surveys, we can uncover much of the same information through brand research, keyword research and competitive analysis.

We’ll talk about these forms of market research and more, as well as some tips to improve each research process to help you master the process of data collection and analysis.

1. Competitive Analysis

When businesses have nowhere else to start, they can always scrap data about their competitors.

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Competitive analysis can benchmark future performance and inspire marketing, advertising, pricing and product development ideas.

In SEO, competitive research involves tracking metrics, such as keywords, online traffic, sales volume and advertising cost-per-click.

However, competitive research could include looking at your competitor’s online reputation, product pricing or any other variable important to your business.

To improve your competitive research, I suggest investing in the right tools, such as:

• SE Ranking

Nevertheless, most of the strategies and tools we outline in this guide can be used against competitors for greater detail.

2. Brand Sentiment

Brand sentiment measures how well customers perceive your brand. Generally, your brand sentiment will encompass your brand’s

• Awareness: How many people are aware of your brand?

• Loyalty: How loyal are people to your brand?

• Advocacy: How likely are people to recommend your brand?

• Penetration: How successful is your brand at penetrating its market vertical?

• Value: How valuable is your brand in nominal terms?

Again, technology is your best friend, and I recommend using tools like Hootsuite or Sprout Social that measure your brand’s sentiment on social media and across the web. Soliciting customer feedback and reading reviews are also great indicators of your brand’s perception.

Depending on the size of your brand and its age, pick the right metrics you want to track and then map out your brand visually against your competitors to see how well your brand stacks up and where weaknesses lie.

3. Customer Decision-Making

Customer journey or decision-making research tells why customers make purchases and why they don’t.

More specifically, this research speaks to their

• Purchasing habits

• Demographic information

• Hobbies and interests

• Media habits

Understanding these behavioral, demographic and psychographic parameters allows you to create personalized marketing campaigns and incentives that can increase sales.

First, gather data through a CRM like HubSpot or Salesforce that allows for customer journey mapping. Second, consult your analytics using tools like Google Analytics or Search Console that allows for on-page behavioral reporting and attribution data so you can understand what led to a buyer’s purchase.

Again, primary research tools like surveys and direct feedback can also help tremendously.

Additionally, tools like Meta’s Audience Insights have historically always been a data gold mine for segmenting and building the right audience lists for your business.

4. Customer Segmentation

This leads us to another important consideration: market segmentation. Researching the right customer segments to market to can help you increase ROI significantly.

You can use many of the same tools from the previous point to build a buyer persona based on geographic, psychographic and demographic data. For example, HubSpot and Meta’s Audience Insights are great for uncovering much of this data and building audience lists you can export to other programs.

To save time experimenting with different audience segments, use surveys to help you uncover more granular data regarding audience behavior and interests.

5. Market Messaging

Surveys and customer feedback are also incredibly important for monitoring campaign messaging from any advertising/marketing campaigns you are actively running. This research shows how well your business connects with its customers via messaging impact and reach.

For online advertising, use metrics like impressions, click-through rate, CPC and conversion ratio to show you how far your ads are reaching and how well they resonate.

On the organic side, tracking keyword rankings, on-page traffic, CTR and conversion rates can tell you if your marketing messaging is driving people to your site and whether they are making purchases.

6. Product Pricing

Finally, the last two forms of market research involve product pricing and development. Pricing is fairly straightforward and measures what customers are willing to pay for a product based on its utility.

To accurately test product pricing, conduct A/B tests with special plans, including tiered pricing that restricts some features or by scaling pricing based on different customer segments, such as separating plans between administrators and users.

Run tests and compare data with competitors to reach appropriate product pricing.

7. Product Development

Product development research tests how well a product is perceived by its intended audience. Sometimes this may incorporate usability testing, which tests how effective the product is for customers.

However, most product development research involves primary research via focus groups, surveys, one-on-one interviews and direct customer feedback. The idea is to hear how customers perceive the product directly to improve innovation and development.

The key to proper product development research is to account for every variable, such as:

• Customer research (interests, hobbies and perspectives)

• Market share (existing competition, product lifecycle, market risks, growth potential)

• Business case (problems solved, unique selling proposition)

• Marketing (promotion, pricing, proper messaging)

By harnessing the power of technology and improving your market research processes, you can position yourself to compete better and achieve more success within any given marketplace.

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Market Research Definition, Types, Tools and Benefits

Published on Jul 01, 2022

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

What is Market Research?

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

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

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

Market Research for Businesses  

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

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

Types of Market Research  

1. quantitative research .

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

2. Qualitative research 

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

Qualitative vs. Quantitative Research 

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

3. Primary Research 

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

4. Secondary Research 

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

Primary Research vs. Secondary Research

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

5. Market Research 

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

6. Customer Research 

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

7. Competitor Research 

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

8. Product Research 

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

Benefits of Market Research 

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

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

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

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

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

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

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

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

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

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

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

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

Market Research Tools 

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

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

How to Conduct Research for Your Business: Market Research Strategies 

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

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

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

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

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

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

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

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

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

Why is Market Research Important?

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

The importance of Market Research is the following -  

1. Identifies new products or services

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

2. Identifies potential customers

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

3. Establishes viability of a product or service

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

4. Anticipates and discovers future market trends 

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

5. Keeps your company ahead of competitors

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

6. Decide the best marketing strategy

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

7. Reduces risk and increases profitability

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

8. Identifies threats and opportunities

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

9. Helps to understand existing customers

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

10. Assists in realistic goal setting

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

How Efficient is Market Research? 

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

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

Market Research Methods  

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

1. Surveys 

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

2. Discussions 

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

3. Interviews 

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

4. Social media listening 

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

5. Observations 

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

6. Experiments 

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

7. Competitive analysis 

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

8. Statistics 

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

9. Purchased data 

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

10. Analysis of sales data 

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

Functions of Marketing Research  

The following are the main functions of Marketing Research - 

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

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

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

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

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

Conclusion 

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

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

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

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

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Wall Street Analysts See Deere (DE) as a Buy: Should You Invest?

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Deere ( DE Quick Quote DE - Free Report ) .

Deere currently has an average brokerage recommendation (ABR) of 1.85, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms. An ABR of 1.85 approximates between Strong Buy and Buy.

Of the 23 recommendations that derive the current ABR, 12 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 52.2% and 8.7% of all recommendations.

Brokerage Recommendation Trends for DE

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABR

Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is DE a Good Investment?

In terms of earnings estimate revisions for Deere, the Zacks Consensus Estimate for the current year has declined 0.7% over the past month to $25.41.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Deere. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, it could be wise to take the Buy-equivalent ABR for Deere with a grain of salt.

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