meaning of marketing research and market research

How to Do Market Research: The Complete Guide

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

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Market research is the systematic process of gathering, analyzing and interpreting information about a specific market or industry.

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

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

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

What is market research?

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

Why is market research important? 

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

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

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

Types of market research 

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

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

1. Qualitative research

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

2. Quantitative research

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

3. Exploratory research

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

4. Descriptive research

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

5. Causal research

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

6. Cross-sectional research

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

7. Longitudinal research

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

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

Primary vs. secondary market research

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

Primary market research 

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

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

Secondary market research 

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

Here are the main characteristics of secondary market research:

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

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

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

Market research methods

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

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

1. Surveys and questionnaires

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

2. Interviews

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

3. Focus groups

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

4. Observational research

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

5. Online research tools

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

6. Experiments

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

7. Content analysis

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

8. Ethnographic research

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

How to do market research

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

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

1. Set clear objectives

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

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

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

2. Identify your target audience

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

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

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

3. Choose your research methods

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

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

4. Use the right market research tools

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

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

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

5. Collect data

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

6. Analyze data

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

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

7. Interpret your findings

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

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

8. Identify opportunities and challenges

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

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

9. Make informed business decisions

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

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

10. Monitor and adapt

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

Online market research sources

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

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

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

Market research examples

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

Example 1: Apple’s iPhone launch

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

Example 2: McDonald’s global expansion

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

Example 3: Organic and sustainable farming

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

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

Market research templates

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

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

Strengthen your business with market research

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

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

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

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Market Research: What It Is, Why It Matters, and How To Get It Right

What is market research?

What is market research used for? How important is it? And, how do you choose the right type of research for your business?

Sit back, take five, and I’ll explain the different types of research , what tools are best for the job, and how you can leverage them to grow your business and master your market .

Market research definition:

Market research means to systematically collect and analyze data about a target market or defined segment. It’s a multivariate process that uncovers key facts and insights to inform decisions.

Whether you’re launching a new product , looking for ways to expand a business, or seeking out efficiencies in an existing company, market research is a highly effective way to flesh-out ideas, innovate, and grow. 

Advantages of market research

Market research helps you identify your greatest strengths, threats, and opportunities. It can help you find your way when markets become tough to predict and find efficient ways to grow your business .

• Reduce costs
• Define detailed customer personas
• Make data-driven decisions
• Find new opportunities for growth
• Unpack competitor’s successes
• Develop an informed content marketing strategy
• Identify trends
• Inform market analysis
• Discover the best marketing channels to use
• Find the best ways to communicate with customers
• Benchmark performance against rivals

Online market research can help the whole business at any stage of its life. When practiced consistently and systematically, you can realize its many benefits.

Why is market research important?

Market research helps you identify your greatest threats. And it also gives you a clear picture of opportunities you can capitalize on for greater returns on your business investments, or ROI.

Understanding your specific market on different levels and from different perspectives helps you reach well-informed, data-informed decisions . The process can involve multiple phases. But, if you follow a systematic approach using a market research template , your efforts will pay off.

To skip ahead and start right now, download our free pack of market research templates.

Different types of market research

Market research is a questions and answers game. Once you’ve asked the important questions, you’ll need to choose the right type of research to get your answers. There are four core types of research, each of which can be applied to help you solve a problem or gather insights to inform key decisions.

Primary market research

Primary market research is the first-hand collection of data. It’s data that’s not available to others, and can be obtained in a number of ways. Here are the most common.

• Web Metrics Use analytics software that provides traffic and engagement metrics to understand how audiences behave.
• Observation To observe how users behave and navigate your site, you can install software that records visits and creates heatmaps. Such tools are useful for qualitative research regarding your UX/UI and at the same time, quantify the findings.
• Customer surveys Survey questionnaires and polls can be distributed to any number of customers through email, SMS, your site, or social media. They let you collect both qualitative and quantitative data from respondents using open-ended questions.
• Focus groups You select a small number of people for a group discussion. A moderator leads the session with questions and records the conclusions. This is also a form of qualitative research, and you would use it to get in-depth information.
• Face-to-face interviews Another qualitative assessment method is one-on-one interviews. Consumers representative of your target audience or a segment of it are selected to answer questions about a specific research topic.
• Phone calls To involve a larger number of people and get more answers, you can conduct surveys over the phone. These interviews would be less specific and include fewer questions.

Helpful: A complete guide to doing primary market research

Secondary market research

Secondary research is second-hand data that has already been produced. It’s available to all who wish to consume it. Using this type of data is preferred by those who wish to keep costs low, as it can be quicker and freely available.

• Government reports and census data Annual, quarterly, and other periodic industry reports are a rich data source to tap into. Government organizations publish statistics in areas of trade, ecommerce, and finance.
• Academic papers and educational resources University research is a source of high-quality information. This is useful for in-depth background information on a broad scale.
• Online articles and case studies, public and commercial sources Industry-specific publications can be a valuable source of information for market segmentation, providing you with data and insights on market trends or a specific market segment or niche.

Further reading: A complete guide to doing desk research

Qualitative market research

Qualitative market research is one of the best ways to understand how people think or feel about a brand, product, or service. It takes more time to plan and analyze the results than other market research types. However, with tools like market research surveys , there are quick and effective ways to do it.

As some of the methods are outlined in the primary and secondary research sections, I’ve included a short list of qualitative research methods below.

• Focus groups
• Case study or whitepaper 
• Online forums
• Biometrics 
• Ethnography

Helpful: Read the complete guide to qualitative research and 83 qualitative research questions & examples

Quantitative market research

Quantitative market research is all about numbers. It collects numerical data to help answer specific research questions . The information collected can be easily quantified and analyzed to establish trends, insights, and patterns.

With this type of research, you’ve got three core data collection methods. However, you’ve also got to consider the design of the research, which can impact which method is used.

What is market research used for?

The applications for market research are virtually limitless. Market research can help you unravel the most complex of business challenges to reach data-driven decisions , and when used consistently, it can help you navigate turbulent times, fuel growth, and support your success . Here are just a few examples of what market research is used for, with a few real-world examples thrown in for good measure.

1. Company research

Market research allows you to shine a spotlight on any business and unpack its wins and losses for your own gain. Let’s say you are doing market research for a business plan ; you’ll likely want to evaluate the successes of others in your industry. Doing systematic company research is a proven way to inform a SWOT analysis .

Doing industry analysis can show you who your industry leaders are , along with any emerging players showing exponential growth.

Let’s say I want to find out which companies to research, I would use Similarweb Digital Research Intelligence to analyze an industry. Here, I can see who my top companies to watch are instantly. It also shows me other companies showing rapid growth in my market.

Read More: How to Research a Company: The Ultimate Guide

2. Competitive benchmarking

Most of your relevant data will come from your competition. If you plan to offer something that’s new for you but already exists in the market, learn from other’s mistakes and successes. If your goal is to evaluate and optimize, collect competitors’ data, and compare it to yours. See what works for them, find their weak spots, and improve on them.

What market research gives you here, is the ability to systematically compare each of your rivals. And, it’s not as complex as it sounds either. Simply choose a type of competitive analysis frameworks to use, complete the template for each; then compare the results to uncover relevant insights.

Read More: The Why and How of Competitive Benchmarking

3. Trendspotting

Another objective for market researchers is to forecast upcoming trends. Data collection over time helps you understand the dynamics of the market. Some markets have strong seasonal fluctuations. Increased shopping during December is an obvious example, but often these shifts are not always evident unless you measure and analyze them specifically.

With the data from your historical market research, you can evaluate their impact and the likelihood you will keep seeing these trends. Based on that, you can make predictions about future developments.

4. Audience analysis

Who will find your product most useful and why? 

Examining the size of your audience and the existing demand for your product or services is crucial. Understanding  your target audience allows you to build your product offering and marketing strategy more efficiently. You also want to learn first-hand where people buy this type of product and how much they are willing to spend so that you can estimate your reachable market share .

Here’s a quick example of how we use Similarweb to do effective audience analysis . You can unpack key audience demographics for any site you choose. And get up-to-date stats about gender, age, location, interests, browsing habits, and more.

5. Market segmentation

There are lots of ways to segment a market. Doing this well can deliver higher conversions, reduce costs, redefine marketing strategies, and help you connect with customers on a more personal level. Market research can help you do most types of market segmentation, the most widely adopted of all is demographic segmentation. Here, you look for shared but specific characteristics of a target audience.

Using Similarweb, I can view audience demographics for a website, and compare it side-by-side with rival sites. In this example, I am looking at hotel booking sites to try and spot any difference between the respective audiences of each.

Helpful: Read our complete guide to market segmentation

6. Marketing strategy

Market research can also help you reach the right decision regarding where to advertise or market your business. After analyzing the data, you’ll know which marketing channels are most effective with your target audience. You can also use research to look at the specific keywords and ad creatives that are generating the best responses and ROI.

Similarweb Digital Research Intelligence makes this type of research effortless. Within the marketing channels tab, you can analyze an entire industry or hone in on a specific site of interest. View the various channels across social media, email, direct, organic search, paid search, and display ads to see which channels convert and where the highest channel traffic comes from.

7. Customer experience

Market research is your best way to get information that isn’t naturally visible but that may significantly affect your business. Just think, the fact that your users don’t complain doesn’t necessarily mean they are all delighted with what you offer.

While some customers tend to keep their criticism to themselves, others will be vocal and leave reviews online. Market research is a powerful tool to help inform improvements to services and products alike. Asking for feedback, listening to it, and looking at the feedback left for rivals in your market can uncover telling insights that can shape service offerings, marketing campaigns, and new feature development.

To see what people use market research for and view real-world instances of research in action, head over to our market research examples page.

Tools for market research

When we look at what market research is, the answer is always rooted in data . Over 100 years ago, vehicle manufacturers undertook extensive research to help them develop different models to suit various segments of society. Fast-forward 100 years, and we find similar applications still exist. However, what’s changed are the tools being used and, more importantly, the accessibility of those tools to a far broader audience .

There are more market intelligence tools in existence today than ever before. Here’s a quick summary of a few you can use to collect information for your market research.

• Google Trends Google Trends is a valuable resource for quantitative research data about market tendencies and user behavior.

• Similarweb Research Intelligence Get the freshest digital intelligence from a platform that shows the insights that count. With the ability to analyze an entire market in an instant and unpick competitors’ wins and losses online, you can count on it to help you perform quick and effective market research.
• Hotjar The digital tool lets you observe and record user behavior on your website. It also creates heatmaps of your pages so you can analyze how visitors navigate.
• SurveyMonkey Create your own online survey with this free tool. SurveyMonkey provides templates for questionnaires and lets you distribute them through your various channels, then collect and interpret results.
• YouGov This platform offers its users daily with thousands of data points and statistics on consumer attitudes, opinions, and behavior.
• Pew Research Center This non-profit organization conducts and publishes public opinion polling, demographic research, content analysis, and other data-driven social science research.
• Living Facts The site provides current statistics about the American population, including demographics, social and health issues, opinions, and more.

Read this post to see what market research tools are hot right now.

Wrapping up: what is market research

Market research is insight. It gives you information to fuel key decisions in your business. Without it, companies must navigate their market uncertainly and make key decisions based on instinct or outdated data.

Similarweb transforms the way companies do market research . There’s no expensive outlay for prolonged research reports that take an age to produce. The data is the freshest there is; it’s credible and shows traffic trends and comparable performance like no other.

Try using it to answer your next big market research question.

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What are the benefits of market research?

Effective market research helps businesses understand and improve their position while also identifying potential threats and opportunities, while also spotting emerging trends .

What is the main purpose of market research?

The main benefit of market research is insight. It can give you access to the data you need to make decisions in your business. Before you invest money or time in any venture, use market research to inform your decision.  

What’s the difference between primary and secondary market research?

Primary research is research you conduct on your own that uses numbers and metrics, and secondary research is research that was done by someone else with a qualitative focus.

by Liz March

Digital Research Specialist

Liz March has 15 years of experience in content creation. She enjoys the outdoors, F1, and reading, and is pursuing a BSc in Environmental Science.

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What is Market Research: Key Insights

Market research is the process of gathering, analysing, and interpreting information about a market, including information about the target audience, competitors, and industry trends. This blog explores "What is Market Research?" highlighting its definition, importance, types, methods, real-world applications, challenges, and tools.

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Have you ever wondered, “What is Market Research?” It’s like having a roadmap for the business world, offering clear visions of customer desires and market shifts. Market Research is the detective work behind successful brands, uncovering clues and piecing together the consumer puzzle. It’s the key to unlocking what makes customers tick, shaping products that they’ll love, and sparking marketing messages that capture hearts.

Market Research isn’t just about collecting data; it’s about weaving that data into strategies that win markets. Ready to decode the secrets of success? Let’s dive into the captivating world of Market Research!

Table of Contents 

1) Understanding What is Market Research

2) Importance of Market Research 

3) Types of Market Research 

4) Market Research Methods

5) Real-world Applications of Market Research

6) Challenges in Market Research 

7) Market Research Tools

8) Conclusion

Understanding What is Market Research 

Market Research is a careful and organised way of collecting, analysing, and understanding information about a particular market or industry. Its main goal is to help organisations learn about their target audience, competitors, and the market they work in.

With clear goals, organisations can choose research methods, such as surveys, interviews, focus groups, observations, or a mix of these. These methods gather both detailed and numerical data, giving a clear picture of the market.  

Importance of Market Research 

 Here are some simple yet crucial reasons why Market Research matters:

Understanding Customers 

Market Research makes it easier for business organisations to have a real understanding of their consumers, their buying habits, and anything that may interest them. Using such knowledge, firms can enhance their goods and services in a way that will ensure satisfaction of the customer needs and hence improve the loyalty of the customers.

Identifying Opportunities 

Market Research helps consumer-facing organisations to understand missing opportunities and the trends in the market. It helps them capture new opportunities in the market and create new strategies that would fit the consumer requirements, thus expanding the market share and sales. 

Optimising Marketing Strategies 

Market Research helps in the formulation of efficient promotion strategies by identifying the channels, means, and situations to find potential customers. This knowledge aids marketers in crafting persuasive messages and identifying the suitable channel of communication, thus achieving a high level of effectiveness of marketing communication.

Mitigating Risks 

Businesses need to minimise uncertainty and gain better knowledge about their consumers and competitors through Market Research data. It limits the chances of going wrong when developing new products or venturing into new segments since decisions are made in reference to facts rather than educated guesses.

Competitor Insights 

Market Research provides insights into competitors' strengths and weaknesses. This information allows businesses to change their strategies, differentiate their offerings, and develop a competitive edge in the market. 

Informed Expansion 

Before entering new markets, businesses can conduct Market Research to understand local preferences and cultural nuances. This insight informs strategic decisions, minimises risks, and increases the chances of successful expansion. 

Types of Market Research 

There are two types of Market Research: primary and secondary research. These methods offer distinct approaches to gathering and analysing information.

Primary Research 

Primary research includes collecting new data directly from sources through methods such as surveys, interviews, and focus groups. This type of research provides firsthand insights and specific data tailored to a particular need or question. It is highly valuable for detailed and targeted analysis, allowing businesses to gain an understanding of their target audience and market dynamics.

Secondary Research 

Secondary research involves analysing existing data that has already been collected by others. This can include reports, studies, and statistical data from government agencies, industry associations, and other organisations. Secondary research is often more cost-effective and quicker to access than primary research. It provides a detailed understanding of market trends and general information.

Market Research Methods

Market Research is essential for understanding consumer needs, preferences, and market dynamics. Here are some of them:

a) Focus Groups: Focus groups involve gathering a small, diverse group of people to discuss a product, service, or concept in-depth. This method allows researchers to gather rich, qualitative data and insights based on participants' interactions and discussions.

b) Interviews: Interviews are one-on-one conversations between a researcher and a participant. They can be structured, semi-structured, or unstructured, providing detailed qualitative data about individual perspectives, experiences, and opinions.

c) Surveys: Surveys are a quantitative research method involving structured questionnaires to collect data from a large number of respondents. They can be conducted online, via phone, or in person and are useful for gathering broad, generalisable insights.

d) Consumer Research with Social Media Listening: It involves monitoring social media platforms to gather insights about consumer opinions, trends, and behaviours. This method helps researchers understand public sentiment and identify emerging trends in real time.

e) Observation: Observation involves watching and recording Consumer Behaviours in natural settings. This method provides valuable insights into actual behaviours and interactions with products or services.

f) Competitive Analysis: Competitive analysis involves examining competitors' products, services, marketing strategies, and market positions. This method helps businesses understand their competitive landscape, find opportunities and threats, and develop effective strategies.

g) Public Domain Data: It includes information available from government reports, industry publications, academic research, and other publicly accessible sources. This data is valuable for understanding market trends, demographics, and economic conditions.

h) Analyse Sales Data: Analysing sales data involves examining a company's sales records to identify trends, patterns, and performance metrics. This method provides insights into consumer preferences, product performance, and market dynamics, helping inform strategic decisions.

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Real-world Applications of Market Research

Market Research isn't just a theoretical concept – it's a practical tool with a wide range of applications across various industries. Here's a detailed exploration of how Market Research is applied in the real world:

a) Innovation and Product Development: Applied research, a type of research, is crucial for driving innovation. It involves using existing knowledge to address practical issues, leading to the development of new products, services, or Market Research Processes that improve existing practices.

b) Resource Optimisation: Market Research helps companies optimise their resources by focusing efforts on promising opportunities and avoiding areas with less potential for success.

c) Social Impact: Market Research can also contribute to societal benefits by addressing issues such as healthcare improvements, environmental sustainability, and technological advancements.

d) Segmentation and Targeting: Statistical analysis of Market Research data can reveal specific segments of the population that are more likely to purchase certain products. It enables companies to customise their offerings and marketing efforts more effectively.

e) Brand Perception: It is crucial to understand how consumers perceive a brand. It can reveal brand associations, levels of brand awareness, and attitudes towards the brand. This information helps businesses shape their branding strategies, improve brand positioning, and monitor brand health over time.

f) Trend Identification: It plays a vital role in identifying emerging trends within an industry or market. By analysing data over time, businesses can spot patterns and predict future movements. This allows companies to stay ahead of their competitors by adapting to trends early and capitalising on new market opportunities.

Challenges in Market Research 

While Market Research is a powerful tool, it comes with its own set of challenges that researchers and businesses must navigate. Here' are  some of the key challenges faced in the Market Research: 

a) Bias in Data Collection: Biases might arise from leading survey questions, sample selection that isn't representative, or the researcher's assumptions. Ensuring a neutral and unbiased approach is crucial to maintaining the integrity of the collected data.  

b) Data Accuracy: The reliability of Market Research hinges on accurate data collection. Errors can occur during data entry, survey responses, or measurements. These inaccuracies can lead to flawed conclusions and misguided decisions. Rigorous validation processes and double-checking data can help mitigate this challenge. 

c) Rapidly Changing Markets: In fast-paced industries, trends can shift swiftly, rendering data outdated. Market Research that becomes obsolete too quickly may result in strategies that are misaligned with current market dynamics. Staying current with up-to-date data and regular research updates is essential in these dynamic sectors. 

d) Sample Size and Representativeness: The size and composition of the sample used for research can significantly impact its validity. A sample that's too small might not accurately reflect the entire target population, leading to unreliable conclusions.   

e) Data Privacy and Ethics: Collecting and using personal data raises ethical concerns, especially in an era of privacy awareness. Striking a balance between gathering necessary information and respecting participant privacy is essential.   

f) Interpretation of Qualitative Data: Qualitative data, gathered through techniques like interviews and focus groups, can be challenging to analyse objectively. Interpretation can be subjective and influenced by researchers' biases.  

Market Research Tools

These tools help businesses make decisions and develop effective strategies. Here are some of them:

Online Survey Platforms

Online survey platforms like SurveyMonkey, Google Forms, and Qualtrics allow researchers to design and distribute surveys easily. These platforms offer various question types, customisation options, and data analysis features to gather and interpret quantitative data efficiently.

Social Media Analytics Tools

Tools like Hootsuite, Brandwatch, and Sprout Social help monitor and analyse social media interactions. These tools provide insights into consumer sentiment, engagement metrics, and trending topics, enabling businesses to understand their online presence and audience better.

Customer Relationship Management (CRM) Software

CRM software like Salesforce, HubSpot, and Zoho CRM helps manage customer interactions and data throughout the customer lifecycle. These tools give valuable insights into customer behaviour, preferences, and purchasing patterns.

Web Analytics Tools

Tools like Google Analytics and Adobe Analytics analyse website traffic, user behaviour, and conversion rates. These tools help businesses understand how visitors interact with their websites and find areas for improvement.

Competitive Intelligence Tools

Competitive intelligence tools like SEMrush, SimilarWeb, and Ahrefs provide insights into competitors' strategies, website performance, and market positioning. These tools help businesses identify opportunities and threats in the competitive landscape.

Data Visualisation Tools

Data visualisation tools like Tableau, Power BI, and D3.js help transform raw data into interactive and visual representations. These tools make it easier to find trends, patterns, and insights, facilitating better decision-making.

Market Research Panels

Market research panels like Ipsos, Nielsen, and Toluna provide access to a pre-recruited group of respondents who participate in various research studies. These panels offer reliable and diverse data for market analysis.

Sentiment Analysis Tools

Sentiment analysis tools like Lexalytics, MonkeyLearn, and IBM Watson analyse text data to determine the sentiment behind consumer opinions. These tools help businesses understand public perception and sentiment trends.

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Conclusion 

For any organisation to be successful, it is essential to grasp the concept of ‘What is Market Research?’. Understanding its significance, categories, techniques, uses, and tools can help businesses learn more about market trends and customers’ actions. However, Market Research plays an important role in decision making, management of strategies and staying on top of the competition in today’s world.

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Frequently Asked Questions

The Five W’s of Marketing Research include who is to be surveyed, what is to be said to and asked of the consumers, where and when the research is to be conducted, and why the research is being conducted. These questions ensure comprehensive and focused data collection for actionable insights.

The six types of questions are multiple-choice, rating scale, Likert scale, open-ended, demographic, and ranking questions. Each type has a specific purpose in gathering quantitative or qualitative data: to understand respondents' opinions, behaviours, and characteristics.

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The Knowledge Academy’s Knowledge Pass , a prepaid voucher, adds another layer of flexibility, allowing course bookings over a 12-month period. Join us on a journey where education knows no bounds.

The Knowledge Academy offers various Marketing Courses , including the Content Marketing Course, Marketing Research Training, and Strategic Marketing Course. These courses cater to different skill levels, providing comprehensive insights into Marketing Job Description .

Our Digital Marketing Blogs cover a range of topics related to Marketing Research, offering valuable resources, best practices, and industry insights. Whether you are a beginner or looking to advance your marketing skills, The Knowledge Academy's diverse courses and informative blogs have got you covered.  

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Home Market Research

Marketing research: Definition, steps, uses & advantages

What is marketing research?

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

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Four standard marketing research methods

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

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

Why are online surveys popular?

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

2. Interviews

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

Why are interviews important?

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

3. Focus groups

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

Why are focus groups impactful?

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

4. Observation

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

What makes observation so powerful?

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

LEARN ABOUT: market research trends

How to conduct marketing research

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

LEARN ABOUT: Behavioral Research

1. Create simple user personas

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

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

2. Conduct observational research

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

Overt vs. covert observation

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

3. Conduct personal interviews

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

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

4. Analyze the data

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

LEARN ABOUT: Marketing Insight

Why is research so valuable?

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

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

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Advantages of MKT research

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

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

LEARN ABOUT:  Test Market Demand

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

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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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What is marketing research? Definition and examples

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

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

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

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

Three main types of marketing research

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

Market research

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

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

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

Product research

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

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

According to mnbaskool.com:

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

Consumer research

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

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

Who performs this type of research?

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

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

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

Compound phrases with ‘marketing research’

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

Marketing Research Techniques

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

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

Marketing Research Analysis

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

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

Marketing Research Ethics

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

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

Global Marketing Research

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

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

Digital Marketing Research

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

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

Vide – What is Marketing Research?

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

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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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What is Marketing Research? Examples and Best Practices

12 min read

Marketing research is essentially a method utilized by companies to collect valuable information regarding their target market. Through the common practice of conducting market research, companies gather essential information that enables them to make informed decisions and develop products that resonate with consumers. It encompasses the gathering, analysis, and interpretation of data, which aids in identifying consumer demands, anticipating market trends, and staying ahead of the competition.

Exploratory research is one of the initial steps in the marketing research process. It helps businesses gain broad insights when specific information is unknown. If you are seeking insight into how marketing research can influence the trajectory of your SaaS, then you have come to the right place!

• Market research is a systematic and objective process crucial for understanding target markets, refining business strategies, and informing decisions, which includes collecting, analyzing, and interpreting data on customers, competitors, and the industry.
• Primary market research gathers specific data directly from the target audience using tools like surveys and focus groups, while secondary market research utilizes existing data from various sources to provide broader market insights.
• Effective market research combines both qualitative methods, which explore consumer motivations, and quantitative methods, which provide measurable statistics, to create comprehensive insights that guide business strategy and decision-making.

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Defining marketing research

Launching a product without knowing what your target audience wants is like walking in the dark. Market research lights the way, helping you collect, analyze, and understand information about your target market. This allows you to refine your business strategies and make decisions based on solid evidence.

Gone are the days when just intuition or subjective judgment was enough. Objective insights from market research help avoid costly mistakes and meet consumer needs by identifying trends and changes in the market. This is crucial for assessing a product’s potential success, optimizing marketing strategies, and preparing for market shifts.

Market research is a systematic approach that provides essential information, helping businesses navigate the complexities of the commercial world. Partnering with market research companies can offer additional benefits, leveraging their expertise in understanding market demands, trends, market size, economic indicators, location, market saturation, and pricing. Whether starting a new business, developing products, or updating marketing plans, understanding how to conduct effective market research is key to success.

To conduct market research effectively, businesses must determine study goals, identify target consumers, collect and analyze data, and use the findings to make informed decisions. This process is vital for evaluating past performance, measuring changes over time, and addressing specific business needs. It guides businesses in product development, marketing strategies, and overall decision-making, ensuring a better ROI and providing an eye-opening view of the market through various research methods, whether conducted in-house or outsourced.

The purpose of marketing research

Conducting marketing research is more than just gathering data; it’s about turning that data into actionable insights to refine your business strategies. This process helps you understand what motivates your customers, enabling you to tailor your products and services to minimize risks from the start. Importantly, market research plays a pivotal role in measuring and enhancing customer satisfaction and loyalty, which are critical for understanding key demographics, improving user experience, designing better products, and driving customer retention. Customer satisfaction is measured as a key outcome, directly linked to the success of marketing strategies and business activities.

For SaaS product managers, market research, including competitive analysis, is crucial. It evaluates past strategies and gauges the potential success of new offerings. This research provides essential insights into brand strength, consumer behavior, and market position, which are vital for teams focused on sales, marketing, and product development.

A key aspect of market research is analyzing customer attitudes and usage. This analysis offers detailed insights into what customers want, the choices they make, and the challenges they face. It helps identify opportunities in the market and aids in formulating effective strategies for market entry.

Overall, market research equips SaaS entrepreneurs with the knowledge to meet their target audience’s needs effectively, guiding product adjustments and innovations based on informed decisions.

Key components of market research

Conducting market research is analogous to preparing a cake, requiring precise ingredients in specific quantities to achieve the intended outcome. Within this realm, necessary components consist of primary and secondary data gathering, thorough analysis, and insightful interpretation.

Primary research techniques such as exploratory studies, product evolution inquiries, estimations of market dimensions and shares, and consumer behavior examinations play a crucial role in collecting targeted information that can be directly applied. These methods afford a deeper understanding of your target demographic, allowing for customized strategy development.

In contrast, secondary research enriches the specificity of primary findings by adding wider context. It taps into external resources encompassing works from other investigators, sector-specific reports, and demographics data, which provide an expansive yet less particularized landscape view of the marketplace.

The subsequent phase involves meticulous analysis of collated data offering unbiased perspectives critical for identifying deficiencies while recognizing emerging patterns. Technological progress now facilitates examination efforts on both structured and unstructured datasets effectively addressing large-scale analytical complexities.

Ultimately, it’s through expert-led interpretation that value transcends raw figures, yielding strategies grounded in deep comprehension. Akin to decoding recipes using selected ingredients—this interpretative step enables crafting optimal business maneuvers just as one would bake their ideal confectionery creation utilizing proper culinary guidance.

Types of market research: primary and secondary

Now that you know the importance of clear research objectives, let’s explore the different types of market research and the techniques available to achieve these goals. Market research methods can be divided into two main categories: primary research and secondary research . The choice between these depends on factors like your budget, time constraints, and whether you need exploratory data or definitive answers.

Primary research involves collecting new data directly from sources. This process is like mining for precious metals, as it requires using various methods to gather fresh insights.

• Surveys (here – in-app survey templates from Userpilot ).

• Interviews.

• Focus groups.
• Product trials.

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

Conversely, secondary research uses already established datasets of primary data – which can add depth and reinforcement to your firsthand findings.

Conducting your own market research using primary research tools can be a cost-effective strategy, allowing businesses to gather valuable insights directly and tailor their research to specific needs.

Let’s look a bit deeper into them now.

What is primary market research?

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

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

There are many ways to conduct primary research.

Focus Groups : Hold discussions with small groups of 5 to 10 people from your target audience. These discussions can provide valuable feedback on products, perceptions of your company’s brand name, or opinions on competitors. Additionally, these discussions can help understand the characteristics, challenges, and buying habits of target customers, optimizing brand strategy.

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

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

Navigating secondary market research

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

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

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

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

Qualitative vs quantitative research

Market research employs both qualitative and quantitative methods, offering distinct insights that complement each other. Qualitative research aims to understand consumer behaviors and motivations through detailed analysis, while quantitative research collects measurable data for statistical analysis.

The selection of qualitative or quantitative methods should align with your research goals. If you need to uncover initial insights or explore deep consumer motivations, qualitative techniques like surveys or interviews are ideal.

On the other hand, if you need data that can be measured and analyzed for reliability, quantitative methods are more suitable.

However, these approaches don’t have to be used separately. Combining qualitative and quantitative methods in mixed-method studies allows you to capture both detailed exploratory responses and concrete numerical data. This integration offers a comprehensive view of the market, leveraging the strengths of both approaches to provide a fuller understanding of market conditions.

Implementing market research tools: Userpilot’s role

Similar to how a compass is essential for navigation at sea, businesses need appropriate instruments to carry out effective market research. Userpilot’s suite of product analytics and in-app engagement tools are critical components for this purpose.

Acting as a Buyer Persona Research instrument, Userpilot’s product analytics provide key quantitative research capabilities. This helps clearly define and comprehend the attributes and behaviors of potential customers, providing you with insights into your ICP (Ideal Customer Persona), user preferences, and product-market fit.

Beyond product analytics, Userpilot offers robust in-app engagement features such as modals and surveys that support real time collection of market research information. These interactive features work synergistically with the analytical tools to enable companies to gather detailed data and feedback crucial for informed business decision-making.

Marketing research process: Step-by-step guide

Marketing research conists of several critical stages:

• Defining precise goals.
• Delving into the knowledge of your target demographic.
• Collecting and scrutinizing data.
• Revealing insights that can be translated into tangible actions.

Following these steps allows you to gather critical information that guides business decisions.

An effective research strategy is crucial and involves:

• Properly allocating funds.
• Formulating testable hypotheses.
• Choosing appropriate methods for the study.
• Determining the number of study participants.
• Considering external variables.

A well-planned strategy ensures that your market research is focused, efficient, and produces useful outcomes.

After collecting data, the next step is to analyze it. This involves comparing the data to your initial questions to draw conclusions relevant to your business strategies.

Userpilot makes your data analysis easier by providing handy analytics dashboards for key user metrics such as activation, engagement, core feature adoption, and retention out of the box:

Finally, you report the findings and the process, providing recommendations based on the evidence. This is like solving a puzzle: each piece helps to complete the overall picture.

Challenges and best practices in market research

Delving into market research comes with its own set of hurdles. Those conducting the research must deliver more profound insights within increasingly shorter timespans, and they need to cultivate strategic, continuous research methods to stay abreast of an ever-changing business landscape.

Ensuring high-quality data can be demanding due to issues such as disjointed tools or insufficient analytical expertise. New solutions like Userpilot are surfacing that make these obstacles less daunting by offering accessible and user-friendly options. Maintaining clear lines of communication with your market research team is crucial for achieving both punctuality and quality in outcomes.

The advantages of engaging in marketing research cannot be overstated.

Real-life examples of successful market research

Real-life examples of market research in the SaaS industry often showcase innovative approaches to understanding customer needs and product-market fit.

For instance, Slack, the communication platform, utilized extensive market research to identify gaps in communication tools and understand the workflows of teams. This led to the development of features that seamlessly integrated with other tools and catered to the needs of various team sizes and structures.

Another example is HubSpot, which conducted market research to understand the pain points of small to medium-sized businesses in managing customer relationships. The insights gained helped shape their all-in-one inbound marketing, sales, and service platform, which has become integral to their users’ daily operations. These examples demonstrate how SaaS companies can employ market research to inform product development, improve user experience, and strategically position themselves in a competitive market.

Choosing the right market research tools

For B2B SaaS product managers aiming to do market research, having the right set of tools can make a significant difference. Here’s a list of valuable SaaS tools that can be leveraged for effective market research:

• Userpilot : A comprehensive Product Growth Platform offering in-depth product analytics, a code-free in-app experience builder, bespoke in-app survey capabilities, and robust integration options with platforms like Salesforce and Hubspot. This tool is particularly useful for understanding user behavior, enhancing user engagement, and gathering targeted feedback.
• Qualtrics : Known for its powerful survey tools, Qualtrics helps businesses gather and analyze customer feedback effectively. Its advanced analytics features are ideal for testing market hypotheses and understanding customer sentiments.
• SurveyMonkey : A versatile tool that enables product managers to create, send, and analyze surveys quickly and easily. SurveyMonkey is suitable for gauging customer satisfaction and collecting feedback on potential new features.
• Mixpanel : Specializes in user behavior analytics, offering detailed insights into how users interact with your product. This is essential for identifying patterns and optimizing product features.
• Hotjar : Combines analytics and feedback tools to give teams insights into user behavior and preferences. Hotjar’s heatmaps and session recordings are invaluable for understanding the user experience on a deeper level.
• Tableau : A leading platform for business intelligence and data visualization, Tableau allows product managers to create comprehensive visual reports that can inform strategic decisions based on user data analysis.

Each of these tools provides unique functionalities that can assist SaaS product managers in conducting thorough market research, thereby ensuring that their products are perfectly aligned with user needs and market demands.

Measuring the impact of market research

The pivotal challenge for market research lies in demonstrating its return on investment (ROI) and overall influence on corporate success sufficiently enough to justify regular financial commitment from company leaders. The worth attributed to a market research firm hinges not only on their ability to deliver relevant and high-caliber information, but also on their pricing structures and their contribution towards propelling organizational growth.

To gauge how effectively business choices made based on market research findings succeed, various metrics and key performance indicators (KPIs) are utilized. These numerical tools act as navigational aids directing enterprises toward achieving objectives while simultaneously verifying that efforts invested in conducting market analysis are yielding fruitful guidance.

Throughout our look at market research, we’ve seen its importance and impact. Our discussion covered the basics of market research, its key components, and different types, including both qualitative and quantitative methods, and the role of Userpilot’s tools. We’ve examined the details of the market research process, tackled challenges, identified best practices, and shared success stories. We also provided advice on choosing the right market research partner and how to measure the effectiveness of your market research.

In today’s data-driven world, comprehensive market research is crucial for companies that want to succeed. It acts like a guide, helping businesses navigate the complex market landscape. Start your own detailed research today, supported by insightful analytics to help you succeed.

Frequently asked questions

What is market research and why is it important.

Understanding your target market, honing business strategies, and making informed decisions are all essential components that depend heavily on effective market research. It offers objective insights to help avoid expensive errors and foresees the needs of customers .

What is the difference between primary and secondary market research?

Primary market research is characterized by the direct gathering of data, in contrast to secondary market research which leverages existing information from alternative sources for addressing research inquiries.

Such a distinction can guide you in selecting an approach that aligns with your precise needs for conducting specific research.

What are some examples of successful market research?

Examples of successful market research are evident in the operations of well-known companies such as Starbucks, Apple, and McDonald’s. They have harnessed this tool to fine-tune their business strategies and make decisions based on solid information.

By employing market research, these businesses have managed to gain insight into their customers’ desires and needs, which has contributed significantly to their success.

How can I choose the right market research partner?

Selecting an ideal market research ally involves identifying a firm that resonates with your project requirements, financial plan, and corporate goals while also verifying their track record of dependability and consistency via reviews from previous clients.

Best wishes on your endeavor!

How is the impact of market research measured?

The effectiveness of market research hinges on the precision, representativeness, and pertinence of its data, along with how successful business decisions are when they’re based on the findings from this research. These elements define the impact of the research conducted.

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

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

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

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

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

1. Primary research

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

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

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

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

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

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

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

2. Secondary research

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

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

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

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

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

Learn more about primary and secondary research methods

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

3. Qualitative research

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

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

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

4. Quantitative research

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

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

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

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

Learn more about qualitative and quantitative research

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

5. Branding research

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

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

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

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

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

6. Customer research

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

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

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

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

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

7. Competitor research

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

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

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

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

8. Product research

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

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

There are a number of avenues within product research:

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

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

How to use market research types in your company

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

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

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

Economical experience data (O data)

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

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

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

Emotional experience data (X data)

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

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

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

eBook: How to rethink and reinvent market research

Related resources

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

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How To Do Market Research: Types and Templates (2024)

Want to do market research for your brand? Get the best templates and a step-by-step guide in this article.

Market research consists of systematically gathering data about people or companies—a market—and then analyzing it to better understand what that group needs. The results of market research are then used to help business owners make informed decisions about the company’s strategies, operations, and potential customer base.

Market research can help businesses run more efficiently and market more effectively. Ahead, you’ll learn how to do market research for your business, whether you’re breaking into a new market or developing a product .

What is market research?

Market research is the process of gathering data about people or companies and analyzing it to figure out what they’re looking for. Using market research, which is usually summarized in a report, you can make better decisions about your company’s strategy, operations, and potential customers. There are two main types of market research: primary and secondary.

Primary market research

Primary data is first-hand information you gather yourself, or with the help of a market research firm. You control it. Common ways to do primary market research include surveys, interviews, focus groups, and observations. 

Doing your own research has its benefits. You’ll learn exactly what customers want, because you’ve asked them directly. Information is fresh, and you can understand the nuances of your customers, like taste preferences or pricing.

Secondary market research

Secondary data is pre-existing public information, such as data shared in magazines and newspapers or government or industry reports. 

Say you’re a fashion brand expanding its product line to sustainable options, you’d use secondary research to understand market potential. You’d read market reports from Mintel or Nielsen Company to understand consumer demands for sustainable products.

Why is market research important?

Reduce risks for entering new markets.

Misjudging market demand for a new product leads to big financial losses. Market research lowers that risk by providing insights to inform your go-to-market plan, such as:

• Market size
• Income range
• Employment rate
• Market saturation

Gathering this information beforehand helps you understand opportunities and challenges for getting new customers. It also helps you understand emerging trends to stay competitive and identify new growth opportunities.

Understand the competition

A competitive analysis helps you understand the business landscape of a new market and uncovers gaps your business can fill. By analyzing your competitors’ offerings, marketing strategies, and customer feedback, you can create a plan to differentiate yourself in a crowded market. 

Make your business customer-centric

Market research reveals the needs, preferences, and behaviors of potential customers in a new market. For example, if you were expanding into South Korea, you’d want to take into account that shoppers value fast delivery times, readily available products, and the best price possible. 

Armed with this information, you’d want to create a seamless mobile shopping experience with quick load times and quick delivery to appeal to the local market. 

Types of market research

Surveys .

Surveys consist of a list of questions that can be shared with an individual by phone, in person, on a card or paper, or online using a survey software like SurveyMonkey or Qualtrics. 

Ask customers a series of questions to better understand how they feel about a product’s features, or about the experience they had. 

Focus groups

Bringing together groups of people with a common characteristic, such as age, hobby, or buying habits, to better understand their likes and dislikes is a focus group. 

Focus groups typically consist of eight to 12 people and a moderator who poses questions for the group to discuss. They are useful ways of getting feedback on a new product, new features, or new ad campaign.

Observation

When the researcher gathers information simply by watching how a subject interacts with a product, the technique is observation. This is often used in comparing preferences for several types of products.

In-depth interviews

Another market research technique is the one-on-one interview with an individual, during which probing questions are posed to better understand that person’s thoughts, opinions, challenges, and product preferences.

Secondary sources

Secondary research is often a good place to start when conducting market research to better understand industry trends and broader shifts. 

Some of the most useful sources include:

• Industry associations and trade groups
• Trade journals specific to your industry
• Government reports, such as the census or annual federal procurement results
• Industry analysts
• University faculty members 

You can also analyze competitor websites and materials to uncover what convinces potential customers to buy from them.

How to conduct market research

1. choose your focus.

Start by defining what you want to achieve from your research. You might want to:

• Understand a target audience
• Develop new product features
• Create a brand identity
• Improve customer experience

If you’re launching a new line of eco-friendly packaging, for example, your focus might be to understand customer attitudes toward sustainability. 

2. Determine your research methods 

Choose how you’ll capture the data based on your objectives and budget. Combine qualitative research (like interviews and focus groups) with quantitative data (like surveys) to understand attitudes and perceptions.

Maybe you’ll decide to conduct a focus group with environmentally conscious consumers to explore their feelings about packaging materials.

3. Collect the data

Depending on your research methods, you might need to prepare questionnaires, conduct interviews, or analyze data courses. You can conduct the process in-house or outsource it to a third party to help speed things along.

4. Analyze the data

Now it’s time to turn that raw data into insights. Identify any patterns or trends that answer your objectives. For example, you may analyze and identify the percentage of customers who prefer sustainable packaging over traditional options.

5. Report your findings

Prepare a report that includes key insights, data, and recommendations based on your findings. Go beyond stating the findings and explain what they mean for your business. What can you conclude about your market, audience, or product? 

For example, if your research finds high demand for eco-friendly packaging amongst the 25-to-34 demographic, you can conclude a targeted marketing campaign to this group could increase sales. 

Market research templates and guides

Behind every successful business is solid market research. But the hardest part is knowing where to start, and that’s where the following templates come in. These guides can help you stay on track and prepare for your market research process. 

• Shopify’s Market Research Competitor Analysis Template : Contains a free template to help you find your product market fit, so you can sell successfully right away. 
• HubSpot’s Market Research Kit : Contains an instructional guide, SWOT analysis template, focus group template, survey template, and more.
• Qualtrics XM : Qualtrics XM offers a collection of pre-made customer, product, and brand survey templates with a free account.

Online vs. offline marketing research

Online marketing research involves using digital platforms and tools to collect data from your audience. It includes surveys, polls, online focus groups, web analytics, and social media listening . 

The benefit of online research is that you can reach a wide audience quickly and at an affordable price. Because it’s done online, it’s convenient for both researchers and participants. However, online marketing research has some drawbacks, like low response rates and poor data quality. People may not give in-depth explanations or observations if they don’t sit in front of you.

In offline research, data is collected through in-person methods, such as interviews or observations. This allows researchers to examine people’s nonverbal cues and emotions in greater detail. However, offline research is expensive to conduct and analyze, and in-person methods may also limit sample size and diversity. 

How market research helps with competitive analysis

Knowing what your competitors are doing makes it easier to break into the market (or stay ahead of it). If you’re starting an ecommerce business , market research can help you:

• Identify industry trends
• Create a benchmark against competitors 
• Determine competitive pricing strategies
• Find gaps in the market

All these elements inform your competitive analysis, whether you’re developing a new product or entering a new market. In this way, you can uncover areas where competition is intense and gain leverage over your competitors.

Free competitor research template

Find a strategic angle to achieve sales success, uncover your product-market fit, and stand out from the competition with our free template.

Market research examples

Before launching a premium cocktail machine into a new category, the team at Bartesian had to identify a common problem: how hard it was to make great-tasting cocktails at home without any professional skill. 

It was a problem the founder, Ryan Close, struggled with himself, as he explains in a Shopify Masters interview . 

“I could never get [drinks] right, so I understood it was difficult to make great tasting cocktails at home if you’re not a bartender,” Ryan says. 

For his market research, Ryan carried a prototype of the machine around the country, getting in-person feedback. He’d go to trade shows and networking events to talk with people, ask about their pain points, and find out what they’d be willing to pay for his cocktail-making machine. These events helped give Ryan the market research needed to launch Bartesian. 

💡 Read more about how Ryan Close launched Bartesian

Beardbrand 

Beardbrand has become a popular men’s grooming brand since its launch in 2012. In 2023, it was estimated to have generated $25.7 million in revenue. Its founder, Eric Bandholz, took an informal approach to market research rooted in his personal experiences. 

He identified the potential for Beardbrand through several key insights:

• Observation: Noticing an increase in beards and mustaches, and a general interest in male grooming in urban areas, Eric recognized a growing trend that had yet to be fully capitalized on.
• Community engagement: By being an active member of the beard community and blogging about beard care and lifestyle, Eric immersed himself in the target market. This direct engagement provided him with firsthand insights into the needs and wants of his potential customers.
• Participation in events: Attending the 2012 West Coast Beard & Mustache Championships in Portland, Oregon, was a pivotal moment. It was here Eric realized the existence of a like-minded community that was underserved in terms of products and content tailored to their interests.
• Using social media for feedback and ideas: Eric leveraged social media platforms, especially Tumblr, to gather product ideas and gauge community interest. This approach allowed for immediate feedback and helped shape the product offering.

Before officially launching Beardbrand, Eric experimented with blogging about beard care products and engaging with the community. This phase acted as an informal market test, providing insights into the market’s receptivity to various products.

Abel Samet and Samuel Bail started Troubadour after unsuccessfully searching for a high-performing weekender bag. This personal experience highlighted a gap in the market for bags that were both aesthetically pleasing and functionally equivalent to sports gear—lightweight, waterproof, and comfortable.

They did market testing by initially offering their products to friends, family, and colleagues, which allowed them to gather valuable feedback. The brand continued to collect qualitative feedback from customers on their likes and dislikes about the bags, as well as quantitative data on sales and returns to understand needs and buying behavior. This allowed them to innovate and expand, taking calculated risks that paid off.

📚  Read: 10 Lessons Learned From Troubadour’s 10 Years in Business

Qualitative vs. quantitative market research

Qualitative and quantitative research are two fundamental approaches to doing market research. 

Qualitative research

Focuses on understanding concepts, thoughts, or experiences through subjective data. It explores the howand why of customers’ behaviors through open-ended questions and discussions. It can involve interviews, observations, and textual analysis to develop a more detailed understanding of the participant. 

Quantitative research

Rooted in quantifying a problem through numerical data, like statistics. You’ll normally use quantitative data to generalize results from a larger sample population. These include surveys, questionnaires, and experiments with fixed questions or conditions. 

Even though these two approaches are different, you can combine them to conduct a mixed methods study. This helps further validate your findings and get a better understanding of the issue at hand. 

Conduct your own market research today

Understanding industry shifts, changing consumer needs and preferences, and legislative trends, among other things, can shape where a business chooses to focus its efforts and resources. That’s the value of market research. Use the templates and market research techniques above to improve your process and grow your business. 

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What is market research? FAQ

What are the 4 types of marketing research.

• Exploratory research
• Descriptive research
• Causal research
• Predictive research

What is an example of market research?

An example of market research would be a company conducting a survey to learn more about their target audience’s preferences and buying habits. They might ask questions about age, gender, income level, and what types of products they purchase. The research would then inform the company’s business and marketing strategy. 

How often should market research be conducted?

Businesses can conduct market research on an as-needed basis. If you are launching a new product or entering a new market, you’ll do market research to support the initiative. Some businesses do market research on an annual basis to stay competitive. 

What are the 4 main purposes of market research?

• Identifying and understanding the target market: Market research helps organizations better identify and understand their target market. It can provide insights into customer demographics, preferences, needs and motivations.
• Product/service development and innovation: Market research helps organizations identify and develop new products or services that meet the needs of their target market. It also helps them understand how new products or services can be positioned in the marketplace.
• Market entry and expansion: Market research helps organizations plan and execute successful market entry and expansion. It can help them identify target markets, assess market potential and evaluate the competitive landscape.
• Brand and reputation management: Market research helps organizations maintain and improve their brand and reputation. It can provide insights into customer perception and help organizations differentiate their brand from competitors.

How much does market research cost?

How much market research costs depends on the research method used. For example, face-to-face interviews are more expensive than phone interviews. The sample size required is also a factor. The larger your sample size, the more expensive it will cost. On average, you can expect to pay between $20,000 and $60,000 for a round of market research from a marketing research firm.

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What is Market Research? Definition, Types & Methods

Table of Contents

What is Market Research

Definition. Market research is the process of gathering, analyzing and interpreting information about the market, products, and services, consumers and competitors to have a bird’s-eye view and make a more informed decision. It is considered necessary for successful business planning.

Business conduct market research for different reasons, for example, looking for new markets and prospects, testing new products and services, business innovation, product placement and the industry as a whole.

Importance of Market Research

Acquiring new customers and sales is the main focus of every business; market research ensures both of that. Whether it’s a sole proprietorship or a large corporation, market research is equally important for every business. Here are some of the following reasons why it’s important;

Identify Problem Areas in Business

Market research helps us to look for some new opportunities that our business is lacking. Once the market research is finished, then it becomes clear to us about our targeted customers and how we can approach them. There at this point, you’ll see the problems and the opportunities to manage those problematic areas. For example, it would require you to be partnered up with other businesses. Or the new sale location, or add some product bundle offer. 

Minimize Business Risks

Having said earlier that new customers and a steady flow of sales is the main focus of every business; market research helps you to find those opportunities with minimum risk involved to achieve your market goal. However, you can minimize the risk by the number of ways like; test the product or service before launching it into the market. If your product is failing, then it would answer the questions like why your customers aren’t coming back. It would also give you a clear insight of the problem, if the sale has started dropping, then it would give you the suggestions like lower quality, problem in the site or distribution channel is taking more time.

Well-informed Business Decisions

When you know your problems and you also know how you can solve them by using the minimum risk. For instance, who and where your customers are and why they are dissatisfied; whether to launch a new product or discontinue the old product or service; or make some improvement in the existing product. In other words, you have all the necessary ingredients to make a clear business decision.

New Areas for Expansion

One of the major problems that all the business face while advertising is exactness. They don’t exactly know which audience to target. Market research tells you the demographics of your audience, their nationality, their language, and culture. Once you know your targeted market, now you can target your customers by using the paid ads tool of social media. For instance, separate ads for students on campus, completely different ads for single dads, pregnant ladies, and single moms. Market research allows you to follow a separate approach for each separate niche.

Market Trends

The market research gives you a clear idea about market trends like what problems people are facing and how you can solve them. The interest of people these days; whether they are playing video games or watching movies, which niche is more competitive; people want necessity products or want a luxury product and service.

SWOT Analysis

Market research provides you a detailed SWOT analysis like strengths, weaknesses, opportunities, and threats of business. With the help of internal and external analysis, you can make a better decision.

PESTLE Analysis

Political, economic, social, technology, legal and environmental are known as the external factors that can affect your business operations and performance. Market research provides you a well-detailed PESTLE analysis about the environment in which you are running your business.

Methods of Market Research

We have been talking about market research; now the question is how we can perform market research. However, there are two methods of market research, primary and secondary. 

Primary Market Research Methods

As the name implies primary method means that collecting the information by using the direct and primary source because it involves an in-depth analysis of some particular problem or an issue. Some of the important primary market research methods are given below;

Either conducting a face to face interview or a telephonic interview; it’s an open-ended and two-way process in which the interviewer and the interview can both ask questions. Now the success of the interview depends on the quality of questions asked by the researchers. Focus only on those points where you need information, omit rest.

Online Surveys

A form with a list of checkpoints is sent to the audience either via email or direct message to get the feedback of the people. Some organizations offer rewards after the online survey, the purpose is to keep the interest level up. Online surveys shouldn’t be too lengthy, so the people would leave the form without even finishing and it should be made interesting.

Focus Groups

It is a very famous method used by businesses to observe views of experts from different fields; a focus group involves 6 to 10 people. Moderation starts the discussion and stimulates it from time to time; views, gestures and body language of the people are observed. Businesses learn which niche to focus on.

Observation

Observation also falls in the category of primary research method, but it doesn’t involve a direct connection between the observer and the subject. Bakery is the most common example; where cameras are installed at different locations, at which product customer spends more time is observed.

Secondary Market Research Methods

The secondary market research method means that information is collected by using the already existing data. Research reports and other documents similar to this are common examples of the secondary method. Some of the important methods of secondary market research are given below;

Data available on the Internet

Googling or internet surfing is a very common method of secondary data collection. Thousands of websites are there online to provide information on almost every topic. The best thing about this method is that it is free.

Government & Non-government agencies

Government, non-government agencies and small business centers are also a great source of secondary data collection source; where you just have to pay a certain price to get the relevant information and data that you require. Data obtained from such organizations is usually considered authentic and trustworthy.

Commercial information

TV stations, magazines, newspapers, Radio, and journals also fall in the category of secondary commercial data collection sources. These sources usually have the direct and first-hand link with the information. Commercial sources have a vast range of data, businesses, and organizations that want to collection collect data from these sources, and then they have to be specific about their category.

Types of Market Research

When a business wants to know the behavior and buying pattern of the customer of their target market, then researchers perform different types of studies and use different tools to get the required results. Types of market research are as follows;

Primary Research

Primary research means that the researcher is in direct contact with the targeted customer. Companies usually hire third parties to conduct primary market research for them. Data collected from primary research could be quantitative (numerical) or qualitative (non-numerical) depending on the planning and question prepared by the researcher.

Secondary Research

Secondary research is comprised of outside sources like the chamber of commerce, government, media, agencies, etc. Information from such sources is usually published on websites, newspapers, journals, TV channels, radio, etc. We can categories the secondary sources into three main domains; public source, educational institutions, and commercial sources.

Quantitative Research

Quantitative market research is a type and method like surveys, focus groups, observation, interviews, poles, online questioners and phone surveys. As the name implies that the data collected from the quantitative research is in the form of figures and numbers.

Qualitative Research

Qualitative market research is also like quantitative type and methods like surveys, focus groups, observation, interviews, poles, online questioners and phone surveys. But in the qualitative market research, data is collected in the exploratory and open-ended which can be interpreted later on.

Descriptive Research

In the descriptive type of market research, the focus is to find the accurate and correct answer about the market problems. The following types of questions are focused, for instance, how is the consumption of our product? What type of people buying our product? What exactly are the targeted buyers of our product?

Exploratory Research

In the exploratory type of market research, researchers usually have basic and clear knowledge about the issue but research is conducted to get a better insight into the problem. The researcher must be clear about his ideas; irrelevant and impractical ideas should be avoided.

Causal Research

In the causal type of market research, the relation between cause and effect and variable is established to observe the changes. If the packaging is changed of a certain product; then how it will affect the product sale and its durability.

Market Research Process

We live in a very competitive business world where the market keeps on changing; high sales at one time and zero in the next month. When businesses face such issues, then market research is performed. However, market research is a step by step process , it starts with;

Define the problem

First of all, the main focus is to find out the exact problem. Finding the exact problem is the key to the success of market research.

Develop Market Research Plan

Once the problem is identified, the next step is to develop a plan that how you’re going to conduct market research.

Data Collection

Once the plan is laid out for the market research, collect relevant data that is helping the market research plan and answer the problem defined earlier.

Analyze the Data

When you have sufficient data collection to answer questions; now analyze the data to see if any pattern is being formed. If it does, then what it means to research.

Present the Data

If you see any patterns being developed, now put on the paper to see it clearly, or draw a graph or chart to find some relevancy.

Take Action

At this stage, you know the answers based on the information available to you. If your answers address the questions of the stage, then take action and apply the plan.

About The Author

Ahsan Ali Shaw

Marketing Research – Meaning, Scope, Objectives & Process

Meaning of marketing research.

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

Scope of Marketing Research

Determines Customer Behaviour

Provide valuable data.

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

Helps in Sales Forecasting

Lower business risk.

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

Evaluate Market Performance

Facilitates introduction of new products.

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

Choose Best Promotion Techniques

Objectives of marketing research.

Identify Customer Needs And Expectations

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

Minimise Marketing Costs

Setting up proper price policy, finds target market and new opportunities.

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

Recognise Deficiencies In Product

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

Product Positioning In Market

Process of marketing research, problem identification.

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

Research Plan Formulation

Acquiring and gathering information, interpretation of information.

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

Result Presentation

Decision making.

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

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9 Best Marketing Research Methods to Know Your Buyer Better [+ Examples]

Published: August 08, 2024

One of the most underrated skills you can have as a marketer is marketing research — which is great news for this unapologetic cyber sleuth.

From brand design and product development to buyer personas and competitive analysis, I’ve researched a number of initiatives in my decade-long marketing career.

And let me tell you: having the right marketing research methods in your toolbox is a must.

Market research is the secret to crafting a strategy that will truly help you accomplish your goals. The good news is there is no shortage of options.

How to Choose a Marketing Research Method

Thanks to the Internet, we have more marketing research (or market research) methods at our fingertips than ever, but they’re not all created equal. Let’s quickly go over how to choose the right one.

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1. Identify your objective.

What are you researching? Do you need to understand your audience better? How about your competition? Or maybe you want to know more about your customer’s feelings about a specific product.

Before starting your research, take some time to identify precisely what you’re looking for. This could be a goal you want to reach, a problem you need to solve, or a question you need to answer.

For example, an objective may be as foundational as understanding your ideal customer better to create new buyer personas for your marketing agency (pause for flashbacks to my former life).

Or if you’re an organic sode company, it could be trying to learn what flavors people are craving.

2. Determine what type of data and research you need.

Next, determine what data type will best answer the problems or questions you identified. There are primarily two types: qualitative and quantitative. (Sound familiar, right?)

• Qualitative Data is non-numerical information, like subjective characteristics, opinions, and feelings. It’s pretty open to interpretation and descriptive, but it’s also harder to measure. This type of data can be collected through interviews, observations, and open-ended questions.
• Quantitative Data , on the other hand, is numerical information, such as quantities, sizes, amounts, or percentages. It’s measurable and usually pretty hard to argue with, coming from a reputable source. It can be derived through surveys, experiments, or statistical analysis.

Understanding the differences between qualitative and quantitative data will help you pinpoint which research methods will yield the desired results.

For instance, thinking of our earlier examples, qualitative data would usually be best suited for buyer personas, while quantitative data is more useful for the soda flavors.

However, truth be told, the two really work together.

Qualitative conclusions are usually drawn from quantitative, numerical data. So, you’ll likely need both to get the complete picture of your subject.

For example, if your quantitative data says 70% of people are Team Black and only 30% are Team Green — Shout out to my fellow House of the Dragon fans — your qualitative data will say people support Black more than Green.

(As they should.)

Primary Research vs Secondary Research

You’ll also want to understand the difference between primary and secondary research.

Primary research involves collecting new, original data directly from the source (say, your target market). In other words, it’s information gathered first-hand that wasn’t found elsewhere.

Some examples include conducting experiments, surveys, interviews, observations, or focus groups.

Meanwhile, secondary research is the analysis and interpretation of existing data collected from others. Think of this like what we used to do for school projects: We would read a book, scour the internet, or pull insights from others to work from.

So, which is better?

Personally, I say any research is good research, but if you have the time and resources, primary research is hard to top. With it, you don’t have to worry about your source's credibility or how relevant it is to your specific objective.

You are in full control and best equipped to get the reliable information you need.

3. Put it all together.

Once you know your objective and what kind of data you want, you’re ready to select your marketing research method.

For instance, let’s say you’re a restaurant trying to see how attendees felt about the Speed Dating event you hosted last week.

You shouldn’t run a field experiment or download a third-party report on speed dating events; those would be useless to you. You need to conduct a survey that allows you to ask pointed questions about the event.

This would yield both qualitative and quantitative data you can use to improve and bring together more love birds next time around.

Best Market Research Methods for 2024

Now that you know what you’re looking for in a marketing research method, let’s dive into the best options.

Note: According to HubSpot’s 2024 State of Marketing report, understanding customers and their needs is one of the biggest challenges facing marketers today. The options we discuss are great consumer research methodologies , but they can also be used for other areas.

Primary Research

1. interviews.

Interviews are a form of primary research where you ask people specific questions about a topic or theme. They typically deliver qualitative information.

I’ve conducted many interviews for marketing purposes, but I’ve also done many for journalistic purposes, like this profile on comedian Zarna Garg . There’s no better way to gather candid, open-ended insights in my book, but that doesn’t mean they’re a cure-all.

What I like: Real-time conversations allow you to ask different questions if you’re not getting the information you need. They also push interviewees to respond quickly, which can result in more authentic answers.

What I dislike: They can be time-consuming and harder to measure (read: get quantitative data) unless you ask pointed yes or no questions.

Best for: Creating buyer personas or getting feedback on customer experience, a product, or content.

2. Focus Groups

Focus groups are similar to conducting interviews but on a larger scale.

In marketing and business, this typically means getting a small group together in a room (or Zoom), asking them questions about various topics you are researching. You record and/or observe their responses to then take action.

They are ideal for collecting long-form, open-ended feedback, and subjective opinions.

One well-known focus group you may remember was run by Domino’s Pizza in 2009 .

After poor ratings and dropping over $100 million in revenue, the brand conducted focus groups with real customers to learn where they could have done better.

It was met with comments like “worst excuse for pizza I’ve ever had” and “the crust tastes like cardboard.” But rather than running from the tough love, it took the hit and completely overhauled its recipes.

The team admitted their missteps and returned to the market with better food and a campaign detailing their “Pizza Turn Around.”

The result? The brand won a ton of praise for its willingness to take feedback, efforts to do right by its consumers, and clever campaign. But, most importantly, revenue for Domino’s rose by 14.3% over the previous year.

The brand continues to conduct focus groups and share real footage from them in its promotion:

What I like: Similar to interviewing, you can dig deeper and pivot as needed due to the real-time nature. They’re personal and detailed.

What I dislike: Once again, they can be time-consuming and make it difficult to get quantitative data. There is also a chance some participants may overshadow others.

Best for: Product research or development

Pro tip: Need help planning your focus group? Our free Market Research Kit includes a handy template to start organizing your thoughts in addition to a SWOT Analysis Template, Survey Template, Focus Group Template, Presentation Template, Five Forces Industry Analysis Template, and an instructional guide for all of them. Download yours here now.

3. Surveys or Polls

Surveys are a form of primary research where individuals are asked a collection of questions. It can take many different forms.

They could be in person, over the phone or video call, by email, via an online form, or even on social media. Questions can be also open-ended or closed to deliver qualitative or quantitative information.

A great example of a close-ended survey is HubSpot’s annual State of Marketing .

In the State of Marketing, HubSpot asks marketing professionals from around the world a series of multiple-choice questions to gather data on the state of the marketing industry and to identify trends.

The survey covers various topics related to marketing strategies, tactics, tools, and challenges that marketers face. It aims to provide benchmarks to help you make informed decisions about your marketing.

It also helps us understand where our customers’ heads are so we can better evolve our products to meet their needs.

Apple is no stranger to surveys, either.

In 2011, the tech giant launched Apple Customer Pulse , which it described as “an online community of Apple product users who provide input on a variety of subjects and issues concerning Apple.”

"For example, we did a large voluntary survey of email subscribers and top readers a few years back."

While these readers gave us a long list of topics, formats, or content types they wanted to see, they sometimes engaged more with content types they didn’t select or favor as much on the surveys when we ran follow-up ‘in the wild’ tests, like A/B testing.”  

Pepsi saw similar results when it ran its iconic field experiment, “The Pepsi Challenge” for the first time in 1975.

The beverage brand set up tables at malls, beaches, and other public locations and ran a blindfolded taste test. Shoppers were given two cups of soda, one containing Pepsi, the other Coca-Cola (Pepsi’s biggest competitor). They were then asked to taste both and report which they preferred.

People overwhelmingly preferred Pepsi, and the brand has repeated the experiment multiple times over the years to the same results.

What I like: It yields qualitative and quantitative data and can make for engaging marketing content, especially in the digital age.

What I dislike: It can be very time-consuming. And, if you’re not careful, there is a high risk for scientific error.

Best for: Product testing and competitive analysis

Pro tip:  " Don’t make critical business decisions off of just one data set," advises Pamela Bump. "Use the survey, competitive intelligence, external data, or even a focus group to give you one layer of ideas or a short-list for improvements or solutions to test. Then gather your own fresh data to test in an experiment or trial and better refine your data-backed strategy."

Secondary Research

8. public domain or third-party research.

While original data is always a plus, there are plenty of external resources you can access online and even at a library when you’re limited on time or resources.

Some reputable resources you can use include:

• Pew Research Center
• McKinley Global Institute
• Relevant Global or Government Organizations (i.e United Nations or NASA)

It’s also smart to turn to reputable organizations that are specific to your industry or field. For instance, if you’re a gardening or landscaping company, you may want to pull statistics from the Environmental Protection Agency (EPA).

If you’re a digital marketing agency, you could look to Google Research or HubSpot Research . (Hey, I know them!)

What I like: You can save time on gathering data and spend more time on analyzing. You can also rest assured the data is from a source you trust.

What I dislike: You may not find data specific to your needs.

Best for: Companies under a time or resource crunch, adding factual support to content

Pro tip: Fellow HubSpotter Iskiev suggests using third-party data to inspire your original research. “Sometimes, I use public third-party data for ideas and inspiration. Once I have written my survey and gotten all my ideas out, I read similar reports from other sources and usually end up with useful additions for my own research.”

9. Buy Research

If the data you need isn’t available publicly and you can’t do your own market research, you can also buy some. There are many reputable analytics companies that offer subscriptions to access their data. Statista is one of my favorites, but there’s also Euromonitor , Mintel , and BCC Research .

What I like: Same as public domain research

What I dislike: You may not find data specific to your needs. It also adds to your expenses.

Best for: Companies under a time or resource crunch or adding factual support to content

Which marketing research method should you use?

You’re not going to like my answer, but “it depends.” The best marketing research method for you will depend on your objective and data needs, but also your budget and timeline.

My advice? Aim for a mix of quantitative and qualitative data. If you can do your own original research, awesome. But if not, don’t beat yourself up. Lean into free or low-cost tools . You could do primary research for qualitative data, then tap public sources for quantitative data. Or perhaps the reverse is best for you.

Whatever your marketing research method mix, take the time to think it through and ensure you’re left with information that will truly help you achieve your goals.

Don't forget to share this post!

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Market Research: Meaning, Definition, Process, Elements, Importance, Objectives

Marketing research is defined as the objective and formal process of systematically obtaining, analyzing and interpreting data for actionable decision making in marketing.

This definition lays stress on two aspects, namely, objectivity and systematic process in the collection and analysis of data. In fact, marketing research should not be allowed to be influenced by personal views and considerations.

Before undertaking any research study it is essential to delimit the primary objectives of the project and define the methodology of undertaking the project in as much details as possible.

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

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Learn about:-

1. Introduction to Market Research 2. Meaning of Market Research 3. Definition 4. Objectives 5. Importance 6. Process 7. Areas 8. Approaches 9. Basics 10. Acceptance 11. Primary Marketing Research 12. Integration 13. Evaluating the Benefits 14. Issues.

Market Research: Definition, Objectives, Importance, Process, Areas, Approaches, Acceptance, Integration and Issues

• Introduction to Market Research
• Meaning of Market Research
• Definition of Market Research
• Objectives of Market Research
• Importance of Market Research
• Market Research Process
• Areas of Market Research
• Approaches to Market Research
• Basics of Market Research
• Acceptance of Market Research
• Primary Market Research
• Integration of Market Research
• Evaluating the Benefits of Market Research
• Issues in Market Research

Market Research – Introduction

Marketing programme starts from the product idea and does not end until customer wants are adequately satisfied. Customer is the pivot around whom the entire marketing operations revolve. Alpha and omega of marketing is consumer satisfaction. Beginning and end of marketing management is marketing research. Learning more about consumers and dealers and about marketing mix gene­rally is the heart of marketing research.

As a business grows larger and as management becomes more remote from the market place, marketing management has to rely more heavily on marketing research as a managerial tool in solving any problem in the field of marketing. It is an invaluable tool in decision-making based on scientific investigation and analysis of a marketing problem.

Advertising has its own problems and pitfalls. We have to be sure about our targeting and segmenting. We will have to understand what makes the consumers buy. We will have to find out whether the right audience watches our sponsored programmes. What is the effect of ads on sales? There are some questions, which the advertisers face everyday. While deciding about such questions, advertisers need inputs of some research.

Mostly they rely on marketing research (MR) which is systematic collection, processing and interpretation of data regarding any problem of markets ranging from product, distribution, price, and promotion to consumers, markets and forecasting. Marketing research is broader than the outdated term market research, which is information about only a particular market.

Marketing research includes advertising research and media research. Though marketing research is an invaluable input to advertising decision making, it only supplements our intuition, experience and judgement.

Marketing Research is not a new activity. However, it has been revitalized, enlarged, and formalized since World War II. With the development and recognition of the so-called “marketing con­cept” in recent years, having the objective of furnishing consumer satisfaction, marketing research has been recognized as one of the major marketing activities, co-equal in status with sales, advertis­ing, new product development, pricing, distribution, and market­ing services.

Market Research – Meaning

Research is the process of gathering, recording and analyzing of critical and relevant facts about any problem in any branch of human activity. It indicates critical and searching study and investigation of a problem, a proposed course of action, a hypothesis or a theory.

Marketing Research:

Marketing research is a systematic, objective and intensive search for and analysis of the data (facts and figures) relevant to the identification and solution of any problem in the field of marketing.

Market research includes:

1. Size of market,

2. Location of customers,

3. Description of customers (age, sex, income, education, standard of living, etc.)

4. Analysis of market demand,

5. Customer needs, habits, buying motives, etc.,

6. Dealer wants and preferences,

7. Degree of competition.

Market Research – Definition

Most formal definitions are similar to that adopted by the American Marketing Association- “Marketing research is the sys­tematic gathering, recording, and analyzing of data about prob­lems relating to the marketing of goods and services.” Operationally this means finding out facts about the market for goods, the numbers and types of consumers, the product itself, channels of distribution, and consumer motivation and behavi­our, plus developing advertising and sales promotion ideas, and eventually testing them.

Some of the commonly used names of marketing research are – market research, product or consumer research, distribution research, motivation research, copy research (in advertising), and sales planning and control research.

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

According to Kotler, “Marketing research is the systematic design, collection analysis and reporting of data and findings relevant of a specific marketing situation facing the company.”

The key word in the above definition is ‘systematic’. This is the difference between research and haphazard gathering of findings. For a study/research to be systematic there must be two qualities in the least. First, it should be orderly so that the measurement has accuracy and there is a fair cross-section. Second, it should be impartial in analysis and interpretation.

Now for a research to be systematic it should be planned in advance. Moreover to complete it, it should be interpreted. We thus arrive at a definition of Marketing Research; “Marketing research is the planning of and systematic gathering, recording, analysis and interpreting data about problems (or opportunities) relating to the, marketing of goods and services”.

Market Research – Objectives

(1) Marketing Research is used in the formulation of all marketing plans, policies, programmes and procedures.

(2) It is employed for evaluation of these plans, policies, etc. when they are brought into practice.

(3) It is used in reducing and minimising all marketing costs, particularly, selling, advertising, promotion and distribution costs.

(4) Marketing problems demanding best solution through mar­keting research can be classified under three major heads – (a) Prob­lems relating to the product itself; products includes branding, packaging and labeling, (b) Problems relating to consumer markets, (c) Problems relating to each phase of the entire marketing process.

(5) Programmes of marketing research incidentally provide insurance cover for the survival and growth of the business in a dynamic economy.

(6) Marketing Management through marketing research can bring about the sale of right product (brand and package) through right channels to right customers at right places and at right prices by evolving right plans, policies and programmes with the help of right personnel.

(7) The main objective of marketing research is to enable manufacturers to make goods acceptable and saleable and to see that they reach the market more easily, quickly, cheaply and profi­tably without sacrificing consumer interest.

What can Marketing Research do for Business? There are six faithful service-men at the disposal of market researchers.

Marketing research finds out for the manufacturer, where are his customers, what they want, when they want it, and where, and how much they are willing to pay for it. Marketing research ascer­tains for the marketing middlemen (wholesalers and retailers) what goods to purchase, when and at what prices, how to advertise and display goods, how much to charge, what delivery and other services to provide.

Marketing research demonstrates to ‘the advertiser how to do a better job of telling the people about particulars of goods or services so that they become presold goods after advertising.

With adequate knowledge obtained by marketing research – (1) Producers need not make unwanted goods, need not offer those through wrong outlets to persons who are not interested. (2) Mer­chants need not stock unwanted goods, offer them at the wrong season in the wrong quantities or at wrong prices. (3) Advertisers need not make mistakes in what they say, to whom they appeal, and how they appeal to the audience.

To short, marketing research enables producers, merchants, distributors and advertisers to avoid mistakes either in manufacturing or in marketing. To that extent it can minimise business failures and maximise profitability. Please note that there are specialised consultancy service organisations offering expert advice and services relating to marketing research, advertising research, etc., and enable top management to solve marketing problems.

Market Research – Importance

Mass production by power-driven machinery in anticipation of demand for ever-widening market created special problems of distribution.

(a) Widening of Communication Gap:

Ever-expanding markets required numerous middlemen between producer and consumer. Each middleman erected a sort of wall which blocked the backward flow of communication regarding consumer needs and dealer needs to the manufacturer. Size and specialisation within the business unit and intervention of numerous middlemen between producer and consumer created a chronic gap of communication — lack of returned flow or feeding back of information from consumer to producer.

The widening of communication gap is the chief single factor for increasing importance of marketing research to fill up the communication gap between consumer and the producer. Marketing research alone can provide first-hand knowledge of consu­mers and changes in the pattern of demand.

(b) Emergence of Buyers’ Market:

Emergence of buyers’ market and increasing competition demanded continuous need of marketing research to ensure maximum consumer satisfaction and repeat purchases and to lay down appropriate marketing strategies to meet competition, to survive and grow in a competitive market. Marketing research can establish best positive correlation between the product/brand and consumer needs and preferences.

(c) New Marketing Concept:

The marketing concept was first articulated in 1952 by Ralph Cardines, the top marketing execu­tive of General Electric Corporation of the U.S.A. Marketing research has become the corner-stone of the marketing concept. No business firm can be market-oriented or customer-centered without the effective use of marketing research.

The moment customer be­comes the center of the marketing universe, marketing research assumes unique importance and it becomes an invaluable management tool to formulate accurate and realistic plans and programmes of marketing, advertising and sales promotion based on realistic informa­tion of consumer demand — changing tastes, preferences, whims, fancies, etc. Marketing research can ensure quick way to profit viz. to serve the customers in the ways in which he/she wants to be served.

(d) Marketing Change:

There is nothing permanent except change. Change alone is constant. Change is the essence of life. Change means progress. Change is the common denominator in planning, organising, motivating and controlling marketing activity. Marketing research enables management to anticipate, meet and adapt creatively to accelerating conditions of change, particularly in consumer demand.

The real challenge to marketing management is to firmly believe that changing a business—finding its new role, new customers, new products, new markets – is even more important than efficient operations of the business. Marketing research can easily help the management in managing profitably marketing change.

(e) Changes in Technology:

Marketing research can solve the problem of catching up with new developments brought about by unprecedented growth of science and technology. It can help management to bring about prompt adjustments and innovations in product design, packaging, advertising, sabs promotion and distri­bution policies so that the business can keep itself up-to-date in the dynamic market place.

Market Research – Process

Research follow a step-by-step sequence as given below:

1. Problem Definition and Research Goals :

In practice, we have clear-cut advertising problems in most of the cases. However, sometimes the problem is hidden and must be ferreted out. What decisions are we going to take in the light of research input? This helps us in identifying the problem correctly. Once the problem is identified, we must put research goals clearly.

Some typical research goals are:

(i) To measure awareness about our product in the target audience after 2 months’ campaign.

(ii) To assess attitudes of consumers to rival products so as to know their brand’s vulnerable points.

(iii) To assess which ad concept is more effective out of the two developed.

2. Sources of Information :

We can collect our data from our internal records, library, directories, literature, etc. The list of getting such secondary data is long. When our research project needs more data, we will have to collect primary data. Primary data can be collected by our research department or by an outside research agency.

3. Analysis of Secondary Data :

This step consists in analyzing the secondary data to throw light on the problem on hand.

4. Identification of Sample :

When primary data is needed, we will have to decide from which group of people or organisations to collect it. It is our universe or population. If all members of the population are questioned for getting the data, it becomes census. This is rarely done.

It is too expensive and time-consuming. We can obtain reliable results by questioning only a portion of population called sample. The members who form this sample are our respondents or subjects.

The sample must be a representative of the overall population. A blood test is a good analogy. A sample to body’s blood drawn from finger in enough to tell about the blood in the entire body. The reason is that this finger blood is just like other blood in the body, i.e., it is a representative. Had it not been so, this sample would not work.

There are two categories of samples. Probability sample provides a chance of being included to all members of the population. Simple random sample is an example. Here, each member of population has an equal chance of being included in the sample.

Another probability sample is a stratified sample in which a population is put into several strata, e.g., doctors are put into GPs, specialists and surgeon’s categories. Then random samples are selected from each stratum. Cluster sample isolates cluster of people which resemble the overall population.

Non-probability sample does not give a chance of being included to all members of the population. A quota sample considers certain numbers of various subgroups in the population. Judgement samples select the members on the basis of researcher’s judgement of being appropriate. Convenience sample is chosen for the sheer convenience of interviewing.

In advertising, non-probability samples are generally used. It is not always possible to identify all the subjects of the entire population and then do random selection. Besides, for many problems, sample data need not be projected to the entire data population.

The quality of the research depends upon the selection of the sample. Sample selection needs grounding in statistical techniques.

5. Data Collection :

After identifying the sample, we begin to collect the data. Data can be collected either by a quantitative or a qualitative technique.

Quantitative data put responses in number and statistics. They answer questions like how many, how much and how often. Most common method of collecting quantitative data is by means of a survey of the sample conducted either personally or by mail or on telephone. In any survey, a questionnaire is administered. It is a list of questions that the respondents must answer.

The question can be dichotomous or yes-no type binary questions, or multiple choice questions or rating questions or open-ended questions. Instead of a survey, sometimes it is observed what people do to record data. It is called observation method. An experiment is the third method in which a hypothesis is tested by controlling variables.

Qualitative research looks for in-depth answers beyond the realm of quantitative research. It examines attitudes, motivations and behaviour. Mostly this research is exploratory. Depth interviews are used to allow people to open up and reveal their attitudes and opinions. Focus groups are a group of respondents who are subjected to probing questions. Direct questions are put to the members.

Projective techniques provide an opportunity to provide answers to vague questions by rationalizing. They project their feeling to objects and people. Some projective techniques are sentence completion and word association test, put words into cartoon balloons, picture drawing and Thematic Apperception Test (TAT). In TAT, the respon­dents are asked to react to a picture.

Though qualitative research has come to be used increasingly, it requires expertise and careful handling. Mostly quan­titative methods which are simple, are used.

6. Data Analysis and Result Presentation :

Whatever data we collect from the sample is not in a usable form. These data must be processed. They must be then analysed and interpreted. Several techniques are available for analysis of data. Tabulation is a useful technique at this stage.

Computers have helped a great deal in the analysis of data. Relationship between the data must be established to make them meaningful. Afterwards, we must present the research results. Generally, researchers and advertisers do not share a common vocabulary.

Advertisers do not have the technical background of the researchers. It is for this reason that the research results must be in plain English, devoid of jargon and complex statistical computations. The findings must be logical and concise.

Market Research – 5 Major Areas: Market, Product, Price, Promotion and Distribution

Marketing research is interested in five vital areas of market­ing:

2. Product,

4. Promotion, and

5. Distribution.

Market covers consumer/dealer research, competition and sales forecasting.

Promotion covers personal selling, advertising, sales promotion and public relations.

Distribution covers transport, ware-housing, order processing, Inventory control, and channel choice.

Marketing research offers active help in the evolution of optimum marketing mix. The following diagram depicts the role of marketing research, in all decision areas of marketing mix.

Marketing research is useful at four stages in the problem- solving process in any branch of marketing:

1. To identify and define the problem including causes,

2. To recommend reasonable and profitable solutions or an alternative course of action,

3. To determine most profitable and the best courses of action in order to solve our problem,

4. To test the feasibility of particular solution or course of action decided upon by marketing manager.

In an ever-changing market and national economy, marketing research acts as a powerful investigative arm of marketing manager.

1. Market research,

2. Sales research,

3. Product research,

4. Advertising and sales promotion research,

5. Research on sales methods and sales policies,

6. Dealers’ research,

7. Distribution research, and

8. Pricing research.

Marketing research can be useful at four stages in the problem solving process in any branch of marketing:

1. To identify and define the problem including causes.

2. To suggest reasonable and profitable alternative courses of action.

3. To determine most desirable alternative courses of action and to ensure optimum use of resources.

4. To test the feasibility of particular alternative course of action decided upon by manage­ment.

5. Distri­bution.

Market survey indicates information on consumer demand. Marketing mix consisting of 4 Ps indicates marketing offering and effort to serve the demand.

Market Research – Approaches  

The approaches to marketing research can be characterized by four procedures. The historical method involves the gathering of past data so that comparisons and contrasts can be drawn and predictions made. The observational method gathers data by direct measurement of consumer and market phenomena as it is going on.

The experimental method sets up experiments with proper con­trol procedures so that the effects of specific marketing actions can be determined. The survey method, which is perhaps the most widely used, gathers data by asking questions of knowledgeable informants usually selected by some sampling technique.

The procedure in any one investigation usually includes at least the following steps – A situation analysis is made to orient the research and develop hypotheses. The researcher makes a prelimi­nary investigation of the company, its products, the underlying channels of distribution, etc.

The informal investigation extends the preliminary search by informal conversations with people who have special knowledge of the company or industry. Definition of the problem with great precision is then necessary so that effort can be focused only on the important problem areas.

The formal inves­tigation is then planned very carefully so that time and money will not be wasted, and the proper data actually gathered. Data must be collected and analyzed, and this is really the heart of the proj­ect. Interpretations and recommendations must be made in a form and manner most useful for those who requested the study.

The most interesting and widely known part of marketing research is the consumer survey with its attendant questionnaires and sampling procedures. The premise underlying marketing sur­veys is that people generally can and will give information of value to marketers, provided no “leading questions” are asked, and that in other ways the approach will not give biased results.

For example, people will tell interviewers which products they use, when, where, and how much. If asked, they will also try to express preferences and reasons for them. If a new flavour is developed for a food product, potential consumers (a consumer panel) will try the new flavour, compare it to the old one, and express a preference.

Actually, data from panels of people continue to grow in importance. Just as the company can now ask on-line questions of its internal data, just so a panel can be queried continuously on its changing perceptions and behaviour. The data are especially valu­able as an early warning signal.

A growing problem with individual interviews is the growing reluctance of people to be interviewed. Even the Census finds it necessary to mount an extensive public relations campaign to elicit compliance. Marketing research interviewers have an even more difficult job imposing on people’s time and patience year after year.

The continuing problem is that many door-to-door sales presentations are couched initially in the guise of a survey. It is difficult for a genuine interviewer to establish credibility and elicit cooperation from people who have been thus betrayed.

Market Research – Basics

Doing your own market research isn’t difficult, although it does tend to be time consuming. If you own a small business, you’re probably researching your markets continually informally. Every time you talk to a customer about what he or she wants, or chat with a supplier or sales rep, you’re conducting market research.

The Market Research Grid shows the two types of data sources and the three areas of research that are important to any business. You need to gather information from and about your customers to focus your marketing efforts, maintain and improve your customer service, and to guide your efforts in developing new products and/or services.

Looking at the Market Research Grid, information gathered about the competition can help you determine what works and what hasn’t worked, give you ideas for improving your products and/or services, and provide insight into how to increase or shift your share of the market.

The environment section of the Market Research Grid refers to those economic, social, and political forces that shape business. Gathering information about the environment allows you to stay abreast of and respond to particular trends or events that impact your small business. Whether it’s a predicted drop in interest rates, or the closure of a local mill, you need to be aware of it and judge the ripple effect on your business, for good or ill.

Think of secondary data sources as market research data that’s already been collected by someone else. Telephone books, government publications, and sources such as Statistics Canada, trade journals, and surveys conducted by other companies are all examples of information that’s already been gathered that you can use to get a fix on what your customers want, what the competition has done, and what the environment is like.

Primary sources provide firsthand information. When you survey your customers or question the competition, you’re gathering information directly from the source. While this kind of market research data can be the most costly and time-consuming to gather, it can also be the most valuable, because it’s the most current and the most specific.

Market Research Grid :

i. Customer

ii. Competition

iii. Environment

iv. Secondary

Market Research – Primary Marketing Research

Primary marketing data are collected from consumers or customers usually on a sample basis. The stereotypical market research interviewer, standing on the street corner accosting passersby or walking the streets, clipboard in hand, knocking on closed doors, probably collects only a very small part of the data available to any organization. However, these are particularly important data, because they often provide the only true listening part of the dialogue with the consumer.

Suppliers of Primary Marketing Research :

Many organizations offer market research services, for only very large and sophisticated organizations will have the resources to handle all aspects of their own research.

These suppliers can offer two types of research to clients:

1. Syndicated research and

2. Custom research

1. Syndicated Research:

These suppliers usually offer the easiest and quick­est service and, typically, have ongoing or ad hoc research programs, the results of which they sell to a number of clients. Some of this can be standard research, such as the ACNielsen store audits that provide information on retail purchases by consumers. Shared cost is one advantage of such an approach, but the quality of the research is even more important.

Some research can be ad hoc in that a sup­plier (often one specializing in the industrial field) sees a topic that it believes will be of interest to a number of companies; it then conducts the research and sells the results off the shelf. Some researchers with ongoing programs (especially those conducting opinion polls) will sell space or, more accurately, interviewer time on the back of their omnibus surveys (discussed below), so that one or two simple questions will be asked of a large sample at a relatively low cost.

Apart from the ease and speed of obtaining the research information, the great advantage of all these approaches is usually cost. Because the overall cost is shared among a number of customers, the cost to any one client is that much lower. This allows research that few individual organizations could afford to carry out themselves. In most cases it is also quick and easy to organize and there­fore serves as a pilot for more complex studies.

The main types of syndicated research are retail audits, panel research, and omnibus surveys. Retail audits are one of the most sophisticated market research operations in terms of logistics. The concept, however, is simple. An auditor reg­ularly visits each retail outlet on the panel, which has been recruited randomly. The auditor carries out a physical stock check on the products being surveyed.

The change in stock from the previous visit (combined with the other stock move­ments, receipt of stock, and so on, which are obtained from the store’s records) gives the consumer sales.

Such retail audits are generally believed to offer the most accurate results of the volume of consumer sales and, in particular, of the value of such sales. These data are the main basis for brand-share calculations, for the all-important figures of price and distribution levels, and for the level of retailers’ stocks, which is often very important where supply management in response to promotions is a feature.

Panel research is another way to measure consumer behavior. At its best, this may approach the accuracy of retail audits, with the added advantage that it offers consumer profiles. These panels adopt a variety of techniques and cover a range of subjects. The two main approaches are the home audit and the diary method. In the home audit the panel member is required to save packaging in a special receptacle.

Once a week, an auditor checks the contents of the receptacle and the stocks of products in the house and asks the householder a short list of questions. This technique is particularly successful if respondents have a low attrition rate and provide long-term feedback. With the diary method the householder records the required information in a diary, which is collected by the interviewer (or, less successfully but more cheaply, returned by mail).

Both methods have, over long periods, been shown to provide accurate share data. Most importantly, these panels can show trend data, repeat purchasing, and brand-switching information, which are almost impossible to obtain when using other methods.

Omnibus surveys are very similar to ad hoc surveys, except that space on the questionnaire is “sublet” to different researchers, providing, in effect, their own mini survey. Omnibus surveys are often run on the back of ongoing research, such as political or opinion polls. The cost benefits can be significant, because field- work forms the major element of most market research costs.

Such surveys may also provide a faster turnaround of results, particularly if the survey is conducted by telephone. However, the questionnaire needs to be short, its questions cannot be complex, and the context may be unpredictable because the questions asked by the other researchers cannot be controlled. Such surveys can also be used to locate individuals belonging to target groups so that they can be followed up by con­ventional ad hoc surveys.

As computer ownership rises within the general population, it will also be more likely for respondents to participate in electronic research. Large cyber pan­els will make it easier to receive input from highly targeted populations, thus pro­viding better information at relatively lower cost. Given the rapid developments in technology, it may well be that electronic surveys and cyber panels become dominant forms of data collection.

2. Custom Research:

Custom research is the staple diet of the market research industry. The research organization is commissioned by a client to undertake a specific research task, and it accepts responsibility for all aspects of the research. There is usually quite a distinct split between organizations that specialize in the consumer fields—the province of the large random surveys—and those in the industrial field, where research often revolves around extended interviews with individual organizations.

There are also clear divisions between those involved in retail audits, those conducting questionnaire surveys on individual consumers, and those conducting group discussions or in-depth psychological interviews. In addition, many research firms concentrate mainly on the measurement of mar­keting performance—by investigating, for example, the effectiveness of adver­tisements. This latter form of research is growing quite rapidly, particularly because of the expansion of interactive media.

For example, Nielsen Media Research founded a joint venture with Internet Profiles in order to provide firms with information about individuals using the Internet to visit a World Wide Web home page. With the help of a profile card filled out by browsers, firms can then structure follow-up activities.

Within the market research community, firms often specialize in performing research subtasks. For example, an agency that has been commissioned by a client will typically plan and design the research itself but may appoint a subcontractor to provide the sample based on a specialist database, another organization to pretest the research, a further company to conduct the main series of interviews in the field, and yet another to analyze the results.

Market Research – Integration

The problems of integrating marketing research into a business organisation are of two kinds. The first group of problems are those associated with the difficulties or obstacles in the way of introducing marketing research into the company structure for the first time. The second group of problems are concerned with the difficulties of integrating the use and the results of marketing research into management thinking and planning.

Setting up a Marketing Research Department:

The first group problem is concerned with fitting marketing research into the organisation, developing awareness of what marketing research is and what it is able to do (and, equally important, what it cannot do) and communicating effectively with operating management. Generally speaking, fitting marketing research into the organisation will be easier in those companies which already have central marketing departments or are apply­ing the marketing concept in their day-to-day operations.

Under these circumstances, the role of marketing research will almost certainly have been discussed. Top management will have been exposed to such discussions and the need of research for planning purposes recognised. Therefore, the ground is likely to prove more fertile and the nature of the resistances to the setting up of a research department, at any rate, understood, if not overcome. Thereafter, the use to which marketing research is put will depend upon practical and measurable benefits of first and subsequent applications.

Selling the idea of marketing research to management will be more difficult in firms which have no marketing departments or to whom the application of the ‘marketing concept’ is something of a mystery. It is in such circumstances that the barriers to research go up as management and other executives see ‘all this marketing and research business’ as a potential threat to their security, status and authority.

People’s fear of the unfamiliar is perhaps the major obstacle—fear that they will be made redundant or moved to other and perhaps less congenial jobs within the firm, that their position and authority will be undermined by the slide-rule experts, that the change will be taken as a criticism of their past ways of operating and managing, that their functions will have to change and new modes of thought and techniques will have to be learnt, that their freedom of action and judgment will be curtailed and so on. These are all genuine fears and misgivings and will not disappear by being overlooked.

Executive acceptance and use of marketing research (and this applies to any management innovation) will be in direct propor­tion to how well they understand it, how it is likely to affect them, and the degree to which they are kept in the picture as to what is going on.

It is imperative that anyone connected with or likely to be affected by its operation and use should be so informed and have explained to them how it will benefit them and the company as it has benefited others. It is as well to recognise at the very outset that there will be a problem of communication regardless of whether there is a marketing-minded management or not.

Where top management is sold on the idea of marketing research but anticipates great difficulty in its introduction and application it is sometimes helpful to call on the services of consul­tants to determine whether and how a research department should be set up, what information it should provide, how it should be staffed and how it should be ‘presented’ to manage­ment and executive personnel. Some consultants are able to advise on the selection of research managers and executives and to prepare job descriptions and executive specifications.

Further­more, independent consultants are frequently able, by virtue of their wide experience of company research problems in divers fields and of the varying degrees of management sophistication in research, to recommend a marketing research set-up tailored to the particular needs of the company, bearing in mind such factors as the existing organisation structure, the type of products and markets with which the company deals, its methods of distribu­tion and selling, breadth of marketing perspective, and internal political factors.

They can arbitrate between what is the desirable ‘ideal’ and what is practically attainable. The advice one gets from those who do not exercise executive responsibility within a firm is necessarily but honorably different from that given by those who share or are affected by executive responsibility for decision and action.

The integration of a newly formed marketing research depart­ment is likely to be easier if it is under some form of central control, preferably a top or marketing management executive, who is sympathetic to its development within the company.

Not only will such an arrangement afford status and importance to the work undertaken by the department, but, being under the wing of senior management, it is more likely to be used on longer-range problems and applications of importance to senior management and, thereby, better able to prove itself during the early and, in many ways, most critical stages of its development.

The Closer Integration of Established Marketing Research Departments :

The second group of problems are concerned with the integra­tion of an already established marketing research operation into management thinking and planning so as to ensure smoother and more effective working cooperation between the marketing research department and other departments and operating divi­sions of the business.

The main problem areas are the same as those that must be faced when setting up a marketing research department for the first time, namely organisation obstacles, determining what management’s problems are and how market­ing research can best contribute to their solution and communicat­ing effectively with management.

Even in the most mature marketing organisations where major organisational defects appear to be absent and where marketing researchers work closely and continuously with management executives and, therefore, presumably know and understand their problems, the problem of communication remains. The problem is a two-way one.

On the one hand, there is the difficulty arising from the professional jargon used by many specialist research executives which other executives in the business do not under­stand and in terms of which they are not accustomed to thinking and talking. On the other hand, the research man, equally unfa­miliar with business management and accounting terminology, may be hard put to it to express himself clearly and convincingly in management language.

With the growing number of specialists engaged in business—economists, psychologists, sociologists, mathematicians, statisti­cians, operations research workers and so on—the problem of communication assumes new dimensions. The problems of put­ting these specialists to work effectively in the business world, of understanding how and when to employ their techniques and of coping with the flood of information they can make available, are now urgent.

How then can the communications gap be bridged and a com­mon language be developed that will enable these diverse activi­ties to be related and directed towards a common end? Meetings, training programmes, management and executive development schemes designed to familiarise people with the ever-increasing flow of new ideas and techniques for researching, planning and controlling business operations will help, of course, but it is not the whole answer to the problem.

Clearly, there is a growing need for Marketing Research Direc­tors and Managers to be generalists (to distinguish them from research specialists) with specific responsibility for:

1. Studying and learning about the resources of other intellec­tual disciplines which would be of assistance to general and marketing management.

2. Developing satisfactory working relationships and commu­nications between general and marketing management.

3. Developing a thorough appreciation of management prob­lems and to initiate and plan a programme of research that will help towards their solution.

4. Ensuring that the right internal and external technical spe­cialists are called into action, individually or as members of a team, at the most appropriate time and on the basis of a precise and agreed brief.

5. Liaising between general and marketing management and research technicians during the carrying out of the research programme.

6. Helping general and marketing management to understand research and its uses, its strengths and its limitations.

7. Preparing budgets for and controlling the costs of the total company marketing research effort including the purchase of external services.

The discipline of money applies with no less force to marketing research as to any other business activity. Hence, the research budget is the main instrument of control. The Marketing Director or Manager must estimate what scale of research effort is required to meet the company’s needs and must seek approval of his esti­mates. In this, he must usually allow for the costs of unplanned or unexpected projects.

It is advisable for management to allocate a definite budget for a programme of research providing for future needs, first, to ensure that research costs do not exceed a certain authorised amount, and second, to avoid having to justify costs on a day-to-day basis. Most research cannot be justified on such a basis—it may be some while before the return on a research pro­gramme is realised and it may not even be measurable in financial terms.

Buying outside research services is no different from buying any other product or service externally The onus is on the buyer either to prepare a job or product specification which the contract­ing supplier undertakes to meet at a specified cost or to accept the supplier’s quotation based on his own specification of the job to be done.

Once the contract has been signed, the specification should only be changed by written agreement by both parties. Complete mutual confidence is necessary if the work is to be brought to a successful conclusion.

As a leading industrial marketing researcher has commented – ‘Unless the marketing research agency is aware of the purpose behind the research—particularly in the complex field of indus­trial marketing research—it cannot contribute to the identification of the buyer’s real, as opposed to apparent, problems’.

In the pursuit of research, much more material is acquired than is subse­quently used. If the marketing researcher is not a confidant of management, he can unwittingly throw out the baby with the bath-water by not being aware of the relevance of some of the information he has obtained.

Market Research – Acceptance  

Marketing research has been accepted by the majority of large corporations, advertising agencies, and media. This is indicated by the rapid growth in formal departments, numbers and quality of people involved and relative increase in status.

The marketing research operation is organized in many ways in such companies. Almost all large consumer goods companies have large, formally organized departments. These developed earlier and tend to be larger, more frequently found, and more sophisticated than in industrial goods companies.

In smaller companies of both types, the activity is often restricted to one or two persons, often attached to the sales man­ager, and in very small companies it may be a part-time activity of an inadequately trained person.

Some of the larger and more diversified research departments are in advertising agencies. There may be 100 or more persons including a director, manager, research account executives (research liaison and planning), plus functional departments for economic analysis, survey planning and administration, print media TV and radio research, copy research, motivation research and operations research, plus communications, public relations, and sales consultants.

Most media—magazines, newspapers, TV and radio net­works—have extensive marketing and media research depart­ments.

While it is not yet predominant, the most logical organizational and reporting structure for marketing research is as a staff func­tion reporting to the marketing manager. Under this concept the Marketing Research Department is co-equal to Advertising. Sales Promotion, Sales Management. New Product Development, Pric­ing, Distribution, and any other marketing functions. Reporting to the marketing manager, marketing research is the eyes and ears of all other marketing functions and can work effectively in helping them all.

If, as is still common, it is organized as part of one other market­ing function—Sales, for example—its role is often restricted to that function’s work, and it is not used at all by other marketing functions. A good general reporting principle is that marketing research should be independent from but available to any other marketing function.

On a less formally documented plane, however, acceptance is not so real, and very serious problems exist. Crash programs are probably still the norm as against systematic, long-range planning of research. Often, research results are not accepted if they conflict with marketing experience and judgment. There is serious contro­versy over the extent to which research inhibits reactivity. In too many cases research is used as a status symbol, rather than as a marketing tool.

The future, however, looks relatively bright. It is probable that as marketing becomes more of a science than an art, depending more on long-range planning than intuition, marketing research will achieve high status and full integration.

Market Research – Evaluating the Benefits

Marketing research requires both time and money—two typically scarce com­modities. To make a justifiable case for allocating resources to research, manage­ment must understand what the value of the research will be. It should clearly aid management in improving the decision making process and thus should aim at managerial rather than statistical significance. At the same time, market research should be recognized as a tool and not a substitute for judgment.

Enough of the “right” information is never obtained within the time constraints to dictate the action or course to follow. However, research will help avoid gross errors and compensate for inadequate experience or unreliable intuition.

The value of research can be assessed from two perspectives. One approach analyzes the benefits the firm receives from research; the other identifies the downside risk that the firm incurs if it does not carry out research.

The context of the decision under consideration must be evaluated when determining the extent and expense of research. The value of a decision with the benefit of research should be greater than the value of the same decision without research by an amount exceeding the cost of the research. In addition, the firm needs to have adequate resources to act on the insights gained by the research. Otherwise, the findings will not contribute to the decision-making process, and the research would be a waste of resources.

Often, however, researchers neglect to assess this cost-benefit relationship, particularly when the individual risks and benefits are difficult to quantify (which frequently happens). If insufficient attention is paid to the outcome of research and its cost, the firm risks conducting either too much or insufficient research.

Using a cost-benefit justification for research, however, may place the researcher at risk, because once the research is carried out, the actual benefits are measurable and can be compared with the anticipated ones. If the benefits do not materialize, the researcher may be charged with having inappropriately inflated the benefit expectations.

The Risks of Inadequate Research :

As an alternative to the benefit strategy, the researcher can construct “what if’ scenarios that outline the risks the company may incur by operating without suf­ficient information. Such risks might include a loss of market penetration effec­tiveness or creation of ill will that precludes any further expansion. In the long run, this justification is easier for the researcher to use than the benefit formula, because he or she can point out that some of the worst-case scenarios have not materialized.

Market Research – Issues

Among the more important controversies in the field today are the following:

Should marketing researchers simply report the facts or should they go further and make marketing recommendations? The gen­eral tendency is toward the latter role, and with the further devel­opment of the research “generalist,” who understands both research and marketing, more extensive involvement in market­ing planning will probably develop.

Who should pay for marketing research—advertisers or adver­tising agencies? This problem becomes more acute as agencies offer more collateral services and become more marketing ori­ented. At present there is no general solution, but more and more advertising agencies are performing comprehensive research on a fee basis.

Should advertising agencies do research at all? This problem is perhaps most acute when it involves advertising effectiveness studies. The problem is complex and involves, as negatives, possi­ble bias, sloppy work, and extra costs, as against the positives of deep product knowledge, research sophistication, and enlight­ened self-interest.

Qualitative vs. quantitative research? This problem became acute with the development of motivation research, which makes extensive use of the social sciences, such as sociology, psychology, and anthropology, in finding out how and why people react to products and advertising, and which in the beginning made little use of more accepted sampling techniques. The problem is less acute now as the qualitative and quantitative approaches resolve their differences and in many respects enrich each other.

One extreme form of quantification is the application of man­agement science techniques to marketing management. Indepen­dent operations research firms may set up and manage computer­ized customized marketing models. Or a small number of opera­tions research people, in a rather uneasy, even hostile, relationship to the regular marketing research department, may be employed by the firm as a separate unit.

Whatever the manner of interaction, the estrangement and lack of communication between the two groups can be painful for all concerned. Usually, the estrangement develops when it becomes known that an operations research group has been called in to work on a project, notwithstanding excellent planning, field work, analysis, interpretation, and practi­cal recommendations for marketing action on the part of the mar­keting research personnel.

At the same time, it soon becomes obvious that the operations research group is setting up total business or marketing models, based on continuing discussions with top management, and is monitoring the allocation of resources and measuring results on a continuing basis. In effect it is managing by giving specific, continuing advice on what to do, when, and the probable consequences.

Top management has become used to such systems working miracles in production, refinery, distribution, and logistics prob­lems, and expects to see similar results in the more esoteric realms of marketing. Reasonable progress has indeed been made in some of the more mechanical areas of marketing, e.g., media allocation and sales effort allocation.

Less progress has been made in such areas as the measurement of specific results of certain kinds of creativity in advertising communications. Whether such opera­tions research activity is marketing research or is not depends upon definition. Nevertheless, it is always a critical decision for a firm as to how to conceptualize and integrate orthodox, well executed marketing research with its more exotic cousin.

Whenever the company is not as large or sophisticated as to have such applications of operations research and models, it will probably resort to more obviously articulated, almost common-sense, “what if” or “what is the relationship of,” kinds of questions to be answered from internally generated data. What if we col­lapsed this sales district with that – what if we reduced our promo­tional effort on that line; or combined this product with that, or added a new flavour?

Continuous monitoring of sales, especially at the retail level, is another example of greatly expanded speed and capacity. Virtu­ally instantaneous retrieval of data from computer systems allows almost continuous access to sales by category and brand and almost immediate remedy of problems. Most of these studies are simple enough in principle and practice so that most executives can understand and participate fully rather than be made uneasy and alienated.

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market research

Definition of market research

Examples of market research in a sentence.

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

Word History

1920, in the meaning defined above

Dictionary Entries Near market research

market price

market-ripe

Cite this Entry

“Market research.” Merriam-Webster.com Dictionary , Merriam-Webster, https://www.merriam-webster.com/dictionary/market%20research. Accessed 11 Aug. 2024.

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Stages and Phases of Market Research

Have you ever wondered how to make better decisions about your products and services? The answer lies in market research. In this post, we'll dive into the fascinating world of market research, exploring each stage of this process and discovering why it's so important to understand them.  

Importance of Understanding the Stages of Market Research  

   

Conducting market research is essential for making informed decisions that drive the success of your business. It's like a puzzle. Each piece is a stage, and it's crucial to get a complete and accurate picture of the market. By understanding the different phases, you can:  

- Make more informed decisions: Based on solid data and in-depth analysis.  

- Identify business opportunities: Discovering new trends and market niches.  

- Minimize risks : Avoiding costly mistakes and optimizing your resources.  

- Increase the effectiveness of your strategies: Designing more precise and personalized marketing campaigns.  

The 5 Stages of Market Research  

First stage: defining the problem and objectives  .

The first stage of any market research is to clearly define the problem or research question and establish specific objectives. This step is crucial because a precise definition of the problem guides the entire research process. Ask yourself: What information do you need? What decisions do you expect to make with the results? Setting clear objectives will help you stay focused and design a study that provides precise and useful answers.  

In this stage, it's important to involve all stakeholders to ensure all aspects of the problem are considered. A well-defined objective not only guides the research but also helps determine the scope and necessary resources.  

Second Stage: Research Design  

In the second stage, the research methodology is designed. This includes selecting the type of data (quantitative or qualitative), the collection method (surveys, interviews, focus groups, etc.), and the sampling plan. A well-structured research design ensures the collection of relevant and reliable data.  

The research design also involves deciding on the format and content of the data collection instruments. For instance, if you decide to use surveys, you’ll need to design a clear questionnaire that captures all necessary information. Selecting a representative sample is crucial to ensure the results can be generalized to the target population.  

  

Third Stage: Data Collection  

Data collection is one of the most critical phases. This is where the necessary information is obtained to answer the research questions. It’s essential to use appropriate tools and methods to ensure the accuracy and validity of the data. Online surveys , consumer panels like Netquest, and in-depth interviews are common methods in this stage.  

During data collection, it’s important to monitor the process to ensure the research plan is followed and the necessary response rates are achieved. The quality of the collected data directly influences the validity of the results, making it crucial to minimize biases and errors in this phase.  

Fourth Stage: Data Analysis  

Once data is collected, the next step is analysis. This stage involves transforming raw data into useful and understandable information. Use statistical analysis software and data visualization tools to identify patterns, trends, and significant relationships. Rigorous analysis provides valuable insights for strategic decision-making.  

Data analysis can include various techniques, from descriptive statistics to inferential analysis and predictive models. It’s important to have a clear understanding of which techniques are appropriate for your data and research questions. Additionally, data visualization can help effectively communicate your findings to stakeholders.  

Fifth Stage: Interpretation and Presentation of Results  

The final stage of market research is interpreting the analyzed data and presenting the results clearly and concisely. This includes preparing reports and presentations that highlight key findings and recommendations based on the obtained data. Communicating the results in an accessible and understandable way is essential for all stakeholders to act on the insights.  

In this stage, it’s crucial to contextualize the results in terms of the research objectives and business needs. Correct interpretation of the data ensures that decisions are informed and based on solid evidence. The presentation of results should be structured and clear, using charts and tables to illustrate key points.  

Phases of Market Research: A Detailed View  

The phases of market research include planning, research design, data collection, data analysis, interpretation of results, and report presentation. Each phase must be approached with precision and care to ensure the study’s quality and validity. A detailed view of each phase allows for a more effective and efficient execution of the market research study.  

In the planning phase, the study’s scope is defined, necessary resources are identified, and timelines are established. Research design focuses on developing a robust methodology and selecting appropriate tools. Data collection is carried out following strict protocols to ensure the integrity of the collected information. Data analysis focuses on extracting meaningful insights from the collected information, and the interpretation of results connects those insights with the business’s strategic decisions.  

Tools and Methods in Each Stage of Market Research  

There are various tools and methods you can use at each stage of market research. From online survey software (like Netquest) for data collection to data analysis tools for analyzing and visualizing data, choosing the right and quality tools is crucial for the success of your study.  

For example, during data collection, digital platforms can facilitate the collection of responses and participant tracking. In data analysis, using advanced software allows for complex analyses and generating impactful visualizations that effectively communicate your findings.  

Common Errors in the Stages of Market Research and How to Avoid Them  

When conducting market research, it’s common to make mistakes that can compromise the quality of the results. Common errors include unclear objectives, selecting an unrepresentative sample, designing confusing questionnaires, and not conducting rigorous data analysis. To avoid these, carefully plan each stage, review your methodology, and validate your data collection instruments.  

Additionally, it’s important to be aware of biases that can influence the results, such as selection bias or response bias. Implementing quality control measures at each stage can help minimize these errors and ensure the study’s integrity. Continuous review and adjustment of the methods and tools used are essential to maintaining the validity and reliability of the market research study.  

The Importance of Precision in Each Phase of Market Research  

Precision in each phase of market research is fundamental to obtaining valid and reliable results. From defining the problem to interpreting the results, each stage must be executed with attention to detail and methodological rigor. Precision ensures that the insights obtained are useful and relevant for strategic decision-making.  

Precision involves not only following the correct procedures but also ensuring that all collected data is accurate and complete. This requires a disciplined and systematic approach in each phase of the study. Attention to detail and implementing best practices in data collection, analysis, and interpretation are essential to maximize the value of market research studies and support informed decisions that benefit the business.  

Conducting effective market research requires a deep understanding of its stages and phases. By following these steps and using the right tools, you can obtain valuable insights that guide your strategic decisions and contribute to your business’s success. If you are about to conduct research, be sure to follow these recommended practices to maximize the impact of your market studies.  

For more information on how to conduct effective market research , contact us. We are here to help you discover valuable insights and make strategic decisions that drive your company’s growth.  

A seasoned marketer with over 20 years of experience, she specializes in online and retail platforms. With an MBA and multilingual proficiency, she excels in dynamic, multicultural environments. As the Marketing and Communication Director at Netquest, she leads a team, driving digital marketing strategies for B2B and B2C brands, focusing on lead generation, website optimization, content creation, and brand consistency.

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Marketing Mix: The 4 Ps of Marketing & How to Use Them?

Appinio Research · 06.08.2024 · 33min read

Have you ever wondered what makes a marketing campaign successful and why some products seem to fly off the shelves while others gather dust? The answer often lies in the marketing mix, a concept that combines several key elements to create a winning strategy. Understanding the marketing mix is crucial for any business looking to meet customer needs, stay competitive, and achieve long-term success. This guide will delve into the essential components of the marketing mix—Product, Price, Place, Promotion, People, Process, and Physical Evidence—providing you with practical insights and examples to help you develop an effective marketing strategy. By mastering these elements, you can tailor your marketing efforts, optimize resources, and drive business growth. Let's explore how each aspect of the marketing mix plays a vital role in crafting a strategy that resonates with your target audience and elevates your brand.

What is Marketing Mix?

The marketing mix is a foundational concept in marketing that refers to the combination of factors a company can control to influence consumers to purchase its products. Coined by Neil Borden in the 1950s, the term initially referred to the 4Ps: Product, Price, Place, and Promotion. These elements work together to create a strategic approach to market a product or service effectively. Each component must be carefully considered and balanced to meet the target audience's needs and achieve the company's marketing objectives.

Importance of Marketing Mix in Business Strategy

The marketing mix is critical in shaping a company's overall business strategy. Here's why it is so important:

• Customer Satisfaction : By tailoring the marketing mix elements to meet customer needs and preferences, businesses can enhance customer satisfaction and loyalty.
• Competitive Advantage : A well-crafted marketing mix helps differentiate a company's products from competitors, creating a unique selling proposition that attracts customers.
• Resource Optimization : Effective use of the marketing mix ensures that resources are allocated efficiently, maximizing return on investment.
• Market Adaptation : The flexibility of the marketing mix allows businesses to adapt to changing market conditions, consumer behavior, and competitive pressures.
• Strategic Alignment : Aligning the marketing mix with overall business goals ensures that marketing efforts support the company's long-term vision and objectives.
• Increased Sales and Profitability : By optimizing each element of the marketing mix, businesses can drive higher sales and profitability through targeted and effective marketing strategies.

Overview of the 4Ps of Marketing

• Product : Refers to what the company is selling, including the quality, design, features, branding, and packaging of the product. It's essential to ensure that the product meets the needs and expectations of the target market.
• Price : Involves determining the right pricing strategy for the product, considering factors such as production costs, target market, competition, and perceived value. Pricing decisions directly impact the demand and profitability of the product.
• Place : Focuses on how the product is distributed and made available to customers. This includes choosing the proper distribution channels, managing logistics, and ensuring the product is accessible where and when customers need it.
• Promotion : Encompasses all the activities and tactics used to communicate the product's benefits and persuade customers to purchase. This includes advertising, sales promotions, public relations, personal selling, and direct marketing.

Understanding and effectively managing these 4Ps allows businesses to create a balanced and integrated marketing strategy that drives growth and meets business objectives.

A product is any good or service that can satisfy customers' needs or wants. It's the cornerstone of your business because it's the primary reason customers engage with your brand. A well-defined product meets customer expectations, solves problems, and provides value. Your product's significance lies in its ability to fulfill market demands and create a loyal customer base.

Product Life Cycle

The product life cycle describes the stages a product goes through, from its introduction to the market to its eventual decline. Understanding this cycle helps in strategic planning and maximizing the product's profitability.

• Introduction : The product is launched, and awareness is built. Marketing efforts are high, but sales growth is typically slow.
• Growth : The product gains market acceptance, and sales increase rapidly. Profits rise, and competitors may enter the market.
• Maturity : Sales growth slows as the product reaches market saturation. Competition is intense, and efforts focus on differentiation and maintaining market share.
• Decline : Sales and profits decline due to market saturation, technological advancements, or changing consumer preferences. Decisions need to be made about discontinuing or rejuvenating the product.

For example, consider the lifecycle of smartphones. When a new model is introduced, it's heavily marketed. As it gains popularity, sales soar. Eventually, sales stabilize as the market becomes saturated, and finally, older models are phased out as new technology emerges.

Product Differentiation and Positioning

Differentiation and positioning are crucial for making your product stand out in a competitive market.

• Product Differentiation : This involves adding unique features or benefits to your product to distinguish it from competitors. It could be through innovation, quality, design, or customer service. For instance, Tesla differentiates its cars using advanced technology and sustainable energy solutions.
• Positioning : Positioning is about creating a specific perception of your product in the consumer's mind. It involves identifying your product's key benefits and associating them with the target market's needs. For example, Volvo positions itself as a leader in vehicle safety, appealing to consumers who prioritize this aspect.

Product Line and Portfolio Management

Managing a product line involves offering a range of related products that cater to different customer needs and preferences. Effective product portfolio management ensures a balanced mix of products that contribute to the overall profitability of the business.

• Product Line : A group of related products marketed under a single brand, catering to different segments or price points. For example, Nike's product line includes running shoes, basketball shoes, and casual footwear.
• Portfolio Management : This involves analyzing the performance of each product and making decisions about product additions, modifications, or discontinuations. Tools like the Boston Consulting Group (BCG) matrix help evaluate products based on market growth and market share to make strategic decisions.

Price is the amount customers must pay to acquire your product or service. It directly affects your revenue and profitability. Setting the right price is crucial because it influences customers' purchase decisions and perceptions of your brand. An optimal pricing strategy balances affordability for customers and profitability for your business.

Pricing Strategies

Effective pricing strategies help you set prices that attract customers and achieve your business goals. Here are some standard methods:

Cost-Based Pricing

Cost-based pricing involves setting prices based on the cost of producing the product plus a markup for profit. This method ensures that all costs are covered and a specific profit margin is achieved.

Price = Cost + Markup

For example, if a product costs $50 to produce and you want a 20% profit margin, the price would be:

Price = $50 + (0.20 * $50) = $60

Value-Based Pricing

Value-based pricing sets prices based on the perceived value to the customer rather than the cost of production. This strategy works well when your product offers unique benefits that justify a higher price.

For instance, a luxury brand like Rolex can charge premium prices because customers perceive high value in the brand's craftsmanship, prestige, and exclusivity.

Competition-Based Pricing

Competition-based pricing involves setting your price based on what competitors are charging. This strategy is helpful in markets with similar products where price differences can significantly impact customer choices.

For example, airlines often adjust ticket prices based on competitor pricing to remain competitive and attract price-sensitive customers.

Factors Influencing Pricing Decisions

Several factors influence your pricing decisions, and understanding them helps you set effective prices:

• Cost of Production : To ensure profitability, direct and indirect costs associated with creating your product must be covered.
• Market Demand : Understanding how much customers are willing to pay for your product helps in setting a price that reflects its value.
• Competition : Analyzing competitors' prices ensures your pricing is competitive and can attract customers.
• Economic Conditions : Inflation, purchasing power, and the overall economic environment can affect how much customers are willing to spend.
• Regulatory Environment : Laws and regulations regarding pricing, such as minimum pricing laws or price controls, need to be considered.

Psychological Pricing Techniques

Psychological pricing techniques leverage human psychology to make prices more appealing and encourage purchases. Here are a few effective methods:

• Charm Pricing : Setting prices slightly below a round number (e.g., $9.99 instead of $10.00) makes the price seem lower.
• Price Anchoring : Showing a higher-priced item first makes other options appear more affordable. For example, a high-end product listed alongside a more reasonably priced one can make the latter seem like a better deal.
• Bundle Pricing : Offering multiple products together at a lower combined price can encourage customers to buy more. For instance, a meal deal at a fast-food restaurant bundles a burger, fries, and a drink at a lower price than buying each item separately.

By understanding and applying these concepts, you can create a pricing strategy that not only covers your costs but also aligns with your overall marketing strategy and business objectives.

Place (Distribution)

Distribution, or place, is about making your product available to customers in the right location and at the right time. It's a crucial aspect of the marketing mix because even the best products won't sell if they're not accessible to the target market. Effective distribution ensures that customers can easily find and purchase your product, which can significantly impact your sales and customer satisfaction.

Distribution Channels

Distribution channels are the pathways through which products travel from the manufacturer to the end consumer. These channels can be direct or indirect, and choosing the right one depends on your business model, product type, and target market.

Direct vs. Indirect Channels

• Direct Channels : Selling directly to consumers without intermediaries. This can be done through online stores, company-owned retail outlets, or direct sales teams. Direct channels provide greater control over the customer experience and margins but can be resource-intensive.
• Indirect Channels : Utilizing intermediaries such as wholesalers, distributors, or retailers to reach the end consumer. Indirect channels can expand market reach and reduce operational burdens but often involve sharing profits with intermediaries.

Online vs. Offline Channels

• Online Channels : E-commerce websites, online marketplaces, and social media platforms. These channels offer convenience, broader reach, and lower operational costs. They are especially effective for tech-savvy and geographically dispersed customers.
• Offline Channels : Physical stores, pop-up shops, and traditional retail outlets. These channels provide a tangible customer experience and immediate product availability, which can be crucial for specific product categories.

Logistics and Supply Chain Management

Logistics and supply chain management are critical components of effective distribution. They involve the planning, implementation, and control of the movement and storage of goods from the point of origin to the point of consumption.

• Warehousing : Efficient storage solutions ensure products are readily available for distribution. Strategic placement of warehouses can reduce shipping times and costs.
• Inventory Management : Maintaining optimal inventory levels to meet customer demand without overstocking or stockouts. Techniques like Just-In-Time (JIT) inventory can enhance efficiency.
• Transportation : Selecting the suitable transportation methods (e.g., trucks, ships, planes) to balance cost, speed, and reliability. Ensuring timely and safe delivery is crucial to customer satisfaction.

Selecting the Right Distribution Strategy

Choosing the right distribution strategy involves considering several factors:

• Intensive Distribution : Placing products in as many outlets as possible (e.g., FMCG products).
• Selective Distribution : Using a limited number of outlets in a particular market (e.g., electronics).
• Exclusive Distribution : Limiting distribution to a single retailer or a few outlets (e.g., luxury goods).
• Cost : Balancing the cost of distribution with potential sales revenue. High-margin products may justify higher distribution costs.
• Control : Determining the level of control needed over the distribution process. Direct channels offer more control but require more resources.
• Customer Preferences : Understanding where and how your customers prefer to shop. This can vary significantly across different demographics and product categories.

Promotion is the aspect of the marketing mix that involves communicating the benefits and value of your product to the target audience. Effective promotion helps increase brand awareness, generate interest, and ultimately drive sales. It's about telling your brand's story in a compelling way that resonates with your audience.

Elements of Promotional Mix

A comprehensive promotional strategy incorporates various elements, each serving a unique purpose in reaching and engaging with customers.

Advertising

Advertising involves paid promotions through different media channels such as TV, radio, print, online ads, and outdoor billboards. It's designed to reach a large audience and build brand awareness. Advertising can be highly targeted and customized to specific segments.

Sales Promotion

Sales promotions are short-term incentives aimed at encouraging immediate purchases or temporarily boosting sales. They can include discounts, coupons, contests, and special offers. Sales promotions are effective in attracting new customers and retaining existing ones.

Public Relations

Public relations (PR) involves managing your brand's image and building positive relationships with the public. PR activities include press releases, media relations, community engagement, and corporate social responsibility initiatives. Effective PR can enhance brand credibility and reputation.

Personal Selling

Personal selling is a direct approach where sales representatives interact with potential customers to persuade them to purchase. It's particularly effective for high-value or complex products that require detailed explanations or demonstrations.

Direct Marketing

Direct marketing targets specific individuals with personalized messages through channels like email, mail, and telemarketing. It allows for precise targeting and measurable results, making it a cost-effective promotional tool.

Integrated Marketing Communications (IMC)

Integrated marketing communications (IMC) ensure that all promotional activities are aligned and deliver a consistent message across all channels. This creates a unified brand image and maximizes the impact of your marketing efforts. IMC involves coordinating various elements of the promotional mix to provide a seamless experience for the customer.

Digital Promotion Strategies

In the digital age, online promotion strategies are essential for reaching and engaging customers. These strategies leverage digital channels to create targeted and interactive marketing campaigns.

• Content Marketing : Creating valuable and relevant content to attract and engage your target audience. This includes blog posts, videos, infographics, and eBooks.
• Social Media Marketing : Using social media platforms to connect with your audience, share content, and promote products. Engaging with followers through posts, stories, and live sessions can build a solid online community.
• Search Engine Optimization (SEO) : Optimizing your website and content to rank higher in search engine results, increasing organic traffic.
• Pay-Per-Click (PPC) Advertising : Running paid ads on search engines and social media platforms where you pay each time someone clicks on your ad. PPC allows precise targeting and quick visibility.

By integrating these strategies into your promotional mix, you can effectively communicate your brand's value, reach a wider audience, and drive sales.

Extended Marketing Mix (7Ps)

The traditional 4Ps of marketing (Product, Price, Place, Promotion) have been extended to include three more critical elements: People, Process, and Physical Evidence. These additional components are especially important for service-based businesses and help create a more comprehensive marketing strategy.

People play a crucial role in the marketing mix, particularly in service industries where customer interactions can significantly impact the overall experience.

Role of Employees in Marketing

Employees are the face of your brand and directly influence customer perceptions. Their behavior, attitude, and competence can make or break a customer's experience. Investing in employee training and development is essential to ensure they represent the brand positively and deliver exceptional service.

For example, Ritz-Carlton is renowned for its exemplary customer service, which is largely attributed to its well-trained and empowered staff, who are encouraged to go above and beyond to meet guests' needs.

Customer Service and Experience

Customer service is a vital component of the overall customer experience. It encompasses every interaction a customer has with your company, from initial contact to after-sales support. Providing excellent customer service can lead to higher customer satisfaction, loyalty, and positive word-of-mouth.

Strategies to enhance customer service include:

• Training employees to handle various customer scenarios effectively
• Implementing customer feedback systems to continually improve service
• Ensuring quick and efficient resolution of customer issues

A real-world example is Zappos, which is famous for its customer-centric approach and generous return policies, creating a loyal customer base.

Processes refer to the procedures and activities that ensure the efficient delivery of your product or service. They play a crucial role in maintaining quality and consistency.

Importance of Efficient Processes

Efficient processes streamline operations, reduce costs, and improve the overall customer experience. They help ensure that products and services are delivered promptly and consistently, which can significantly impact customer satisfaction and loyalty.

Key areas to focus on include:

• Standardizing procedures to ensure consistency
• Using technology to automate and streamline processes
• Continuously monitoring and refining processes to improve efficiency

For example, McDonald's has perfected its food preparation processes to ensure fast, consistent service across all its locations worldwide.

Process Improvement Strategies

Continuous improvement strategies help identify and eliminate inefficiencies in your processes. Techniques like Lean, Six Sigma, and Total Quality Management (TQM) focus on enhancing process efficiency and quality.

Lean focuses on minimizing waste and maximizing value, while Six Sigma uses data-driven methods to reduce variability and defects. TQM emphasizes company-wide quality improvement. Toyota is a prime example of a company that has successfully implemented Lean and Six Sigma principles to streamline its production processes and enhance quality.

Physical Evidence

Physical evidence refers to the tangible elements that customers can see and interact with, which can influence their perceptions of your service.

Tangible Aspects of Service Delivery

Tangible elements include the physical environment where the service is delivered, as well as any materials used in providing the service, such as brochures, signage, and uniforms. These elements help customers form their perceptions of your brand and can significantly impact their overall experience.

Creating a Positive Physical Environment

Creating a positive physical environment involves designing spaces that are aesthetically pleasing, functional, and aligned with your brand image. This can improve customer satisfaction and encourage repeat business. Strategies include:

• Ensuring the physical space is clean, organized, and welcoming
• Using branding elements consistently across all physical touchpoints
• Incorporating sensory elements like lighting, music, and scent to enhance the atmosphere

Starbucks, for instance, creates a cozy and inviting atmosphere in its coffee shops, encouraging customers to spend more time there and enjoy their products.

Integrating these additional elements into your marketing mix can create a more holistic and effective marketing strategy that enhances customer satisfaction, loyalty, and overall business success.

How to Develop a Marketing Mix Strategy?

Creating a marketing mix strategy involves carefully analyzing each component of the 7Ps (Product, Price, Place, Promotion, People, Process, Physical Evidence) and how they interact to meet your business objectives. A well-crafted marketing mix strategy aligns with your overall business goals, targets the right audience, and leverages your unique selling points effectively.

1. Understand Your Market and Target Audience

The first step in developing a marketing mix strategy is understanding your market and identifying your target audience. This involves conducting thorough market research to gain insights into customer needs, preferences, and behaviors. Understanding your competitors and market trends is also crucial.

• Market Research : Use surveys , focus groups , and data analysis to gather information about your potential customers. Identify their pain points, preferences, and purchasing behaviors.
• Competitive Analysis : Study your competitors to understand their strengths and weaknesses. Identify opportunities to differentiate your product or service.

2. Define Your Unique Selling Proposition (USP)

Your USP is what makes your product or service stand out from the competition. It's a unique benefit you offer that is valuable to your target audience. Clearly defining your USP helps craft messages that resonate with your customers and highlight why they should choose your brand over others.

For example, TOMS Shoes' USP is its "One for One" model, where they donate a pair of shoes for every pair purchased, appealing to socially conscious consumers.

3. Develop Your Product Strategy

Your product strategy should focus on delivering value to your customers. This involves decisions about product features, design, quality, and packaging. Consider how your product meets the needs of your target audience and what enhancements could increase its appeal.

• Product Features : Identify which features are most important to your customers and focus on developing these.
• Quality : Ensure your product meets high-quality standards to build trust and satisfaction.
• Packaging : Design packaging that is not only attractive but also functional and environmentally friendly.

4. Set Your Pricing Strategy

Your pricing strategy should reflect the value of your product while being competitive in the market. When setting prices, consider your costs, target market, and competition.

• Cost-Based Pricing : Ensure your prices cover your production costs and provide a reasonable profit margin.
• Value-Based Pricing : Set prices based on the perceived value to your customers. Customers may be willing to pay a premium if your product offers unique benefits.
• Competitive Pricing : Analyze your competitors' pricing strategies and position your prices to attract your target market without eroding your profits.

5. Choose Your Distribution Strategy

Your distribution strategy ensures that your product is available to customers where and when they want it. This involves selecting the proper distribution channels and managing logistics effectively.

• Distribution Channels : Decide whether to sell directly to consumers, use intermediaries, or a combination of both. Consider online and offline channels based on where your customers prefer to shop.
• Logistics : Develop efficient logistics and supply chain processes to ensure timely delivery and reduce costs. Optimize your warehousing, inventory management, and transportation strategies.

6. Plan Your Promotion Strategy

Your promotion strategy involves communicating the value of your product to your target audience. It includes advertising, sales promotions, public relations, personal selling, and direct marketing.

• Advertising : Choose the best media channels to reach your audience, such as TV, online ads, social media, or print. Create compelling messages that highlight your USP.
• Sales Promotions : Use discounts, coupons, and special offers to drive short-term sales and attract new customers.
• Public Relations : Build positive relationships with the public and media to enhance your brand's reputation.
• Personal Selling : Train your sales team to communicate your product's benefits and close deals effectively.
• Direct Marketing : Use personalized marketing techniques, such as email campaigns, to target specific segments of your audience.

7. Integrate People, Process, and Physical Evidence

These additional elements ensure that your marketing mix is comprehensive and customer-centric.

• People : Invest in training and developing your employees to provide exceptional customer service. Ensure that your team embodies your brand values.
• Process : Streamline your processes to deliver a consistent and high-quality customer experience. Use technology and continuous improvement strategies to enhance efficiency.
• Physical Evidence : Create a positive physical environment that reflects your brand. This includes the design of your stores, website, and any other touchpoints where customers interact with your brand.

8. Monitor and Adjusting Your Strategy

Finally, continuously monitor the performance of your marketing mix strategy and make adjustments as needed. Use key performance indicators (KPIs) to measure success and gather customer feedback to identify areas for improvement.

• KPIs : Track metrics such as sales volume, market share, customer satisfaction, and return on investment (ROI) to evaluate your strategy's effectiveness.
• Customer Feedback : Use surveys, reviews, and direct customer interactions to gather insights and make informed adjustments to your strategy.

By carefully developing and continuously refining each element of the marketing mix, you can create a robust strategy that effectively meets your business goals and delights your customers.

How to Measure and Evaluate Your Marketing Mix?

Understanding how well your marketing mix strategy is performing is crucial for making informed decisions and optimizing your efforts. Measuring and evaluating your marketing mix involves tracking key metrics, using analytical tools, and continuously refining your approach to improve results.

Key Performance Indicators (KPIs)

Key Performance Indicators (KPIs) are measurable values that help you gauge the effectiveness of your marketing mix strategy. Selecting the right KPIs depends on your business goals and the specific aspects of the marketing mix you want to evaluate. Here are some essential KPIs to consider:

• Sales Volume : Tracks the number of units sold over a specific period. It helps assess the effectiveness of your product and pricing strategies.
• Revenue : Measures the total income generated from sales. It provides insight into the overall financial health of your marketing efforts.
• Market Share : Indicates the percentage of total market sales your product accounts for. It helps evaluate your competitive position in the market.
• Customer Acquisition Cost (CAC) : Calculates the cost of acquiring a new customer. It includes expenses related to marketing and sales efforts.
• Customer Lifetime Value (CLV) : Estimates the total revenue a customer will generate over their relationship with your business. It helps you understand the long-term value of your customers.
• Return on Investment (ROI) : Measures the profitability of your marketing activities by comparing the revenue generated to the costs incurred.
• Conversion Rate : Tracks the percentage of prospects who take a desired action, such as making a purchase or signing up for a newsletter.
• Customer Satisfaction and Loyalty : Assessed through surveys and feedback to understand how satisfied customers are with your product and service, and their likelihood of repeat business.

Tools and Techniques for Analysis

To effectively measure and evaluate your marketing mix, you need to use various tools and techniques that provide detailed insights and actionable data. Here are some commonly used tools and techniques:

• Google Analytics : A powerful tool for tracking and analyzing website traffic, user behavior, and conversion rates. It provides valuable data on how customers interact with your online presence.
• Customer Relationship Management (CRM) Systems : Tools like Salesforce or HubSpot help manage customer interactions, track sales activities, and analyze customer data to improve relationships and drive sales growth.
• Marketing Automation Platforms : Solutions like Mailchimp enable you to automate marketing tasks, track campaign performance, and analyze customer engagement.
• Surveys and Feedback Tools : Platforms like Appinio help collect customer feedback and measure satisfaction and loyalty. They provide insights into customer preferences and areas for improvement.
• Social Media Analytics : Tools like Hootsuite and Sprout Social offer detailed analytics on your social media performance, including engagement, reach, and sentiment analysis.
• A/B Testing : This technique involves comparing two versions of a marketing asset (e.g., a web page, email, or ad) to determine which one performs better. It helps optimize marketing materials and improve conversion rates.
• Heatmaps and Session Recording : These tools provide visual insights into how users interact with your website. They show where users click, scroll, and spend the most time, helping you optimize user experience and design.
• Competitive Analysis Tools : Tools like SEMrush and Ahrefs allow you to monitor competitor activities, track keyword rankings, and analyze their marketing strategies to identify opportunities and threats.

Using these tools and techniques, you can gather comprehensive data on your marketing mix performance. Regular analysis and interpretation of this data enable you to make informed decisions, adjust your strategies, and continuously improve your marketing efforts. Remember, the goal is to create a dynamic and responsive marketing mix that evolves with changing market conditions and customer needs.

Conclusion for Marketing Mix

Crafting an effective marketing mix is all about understanding and balancing the key elements that influence customer decisions. By focusing on the 7Ps—Product, Price, Place, Promotion, People, Process, and Physical Evidence—you can create a comprehensive strategy that meets your customers' needs and sets your business apart from the competition. Each component plays a unique role in shaping the customer experience and driving sales. Whether it's designing a product that solves a specific problem, setting a price that reflects its value, ensuring it's available where customers shop, or promoting it in a way that captures attention, every decision counts. Integrating these elements thoughtfully can lead to improved customer satisfaction, stronger brand loyalty, and increased profitability. As markets evolve and consumer preferences shift, it's crucial to continuously evaluate and adjust your marketing mix. Use the tools and techniques outlined in this guide to measure performance, gather feedback, and refine your approach. Stay agile and responsive to changes in the market, and don't hesitate to experiment with new strategies to see what works best for your business. Remember, the goal is to create a marketing mix that not only meets immediate objectives but also positions your brand for long-term success. By keeping the customer at the center of your strategy and making data-driven decisions, you can build a resilient marketing plan that adapts to challenges and seizes opportunities, ensuring your business thrives in a competitive landscape.

How to Enhance Your Marketing Mix Strategy?

Developing an effective marketing mix strategy requires timely and accurate consumer insights, and Appinio is the ideal platform to achieve this. As a real-time market research platform, Appinio revolutionizes the way companies gather and utilize consumer data. By providing rapid, actionable insights, Appinio empowers businesses to make data-driven decisions with confidence and speed.

Our platform handles all the technical and research complexities, allowing companies to focus on what truly matters—crafting a marketing mix that resonates with their target audience and drives success. With Appinio, market research is no longer a daunting or expensive task; it's an exciting and intuitive process seamlessly integrated into everyday decision-making.

• Real-Time Insights : Get from questions to insights in minutes, ensuring your marketing mix decisions are based on the latest consumer data.
• User-Friendly Platform : Designed for ease of use, Appinio's platform is so intuitive that anyone can conduct market research without needing a PhD.
• Global Reach and Precision : Define the right target group from over 1,200 characteristics and survey respondents in over 90 countries, with an average field time of under 23 minutes for 1,000 responses.

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Multistage Sampling: Definition, Guide, Examples

30.07.2024 | 37min read

VRIO Framework: Definition, Analysis, Examples

How to do market research for branding and positioning

Last updated

10 August 2024

Reviewed by

When you launch a company or begin to seriously market an existing one, it’s important to understand the concept of brand positioning. It can be key to reaching the consumers who are most likely to become your customers.

A well-positioned brand makes it easy to convert those potential customers into paying ones and makes your brand more memorable. This improves your marketing efforts’ return on investment (ROI). It will even give you the tools you need to refine your message and increase conversions.

• What is brand positioning?

Brand positioning is when a business establishes and maintains a distinctive image and identity for its brand. This is typically thought of in relation to the brand’s competitors.

A brand’s positioning is the unique attributes, values, and benefits it offers that set it apart in the marketplace. When done correctly, brand positioning can help your business create a lasting impression on customers, increasing their loyalty and driving business growth.

So, what makes brand positioning effective?

Target audience: the specific group of consumers your brand aims to reach

Market segmentation: segmenting potential customers into distinct groups with similar needs and characteristics

Value proposition: the unique benefit and value you offer your customers

Brand promise: a concise message that communicates your brand’s commitment to customers and keeps employees focused

Differentiation: the elements of your business that stand apart from other competitors in your space

• Why is brand positioning important?

When starting a business or growing one, there’s a lot to do and even more to think about. Brand positioning can impact many decisions you make, so it should be one of the top things on your mind.

Effective brand positioning is key as it allows you to differentiate yourself from your competitors. Unless you’re in a non-competitive industry, standing out from all the other options your potential customers could choose is difficult. Brand positioning requires you to think about what makes your business unique. This unique value proposition can form the backbone of your marketing efforts, positioning your brand as the go-to choice.

Another part of brand positioning is determining who your target audience is, the values you have in common with them, and how these customers think. This knowledge is what allows you to position yourself as the best option for that audience, establishing a loyal customer base.

• Examples of effective brand positioning

Before we go into any more detail, let’s take a moment to look at some examples of successful brand positioning. This will help you better understand what it means to position a brand and how you can use it to bring in a specific customer segment.

Apple: innovation and premium quality

From Apple’s first days developing home computers to the continually evolving iPhone, Apple has positioned itself as a company that innovates, creates products with a sleek design, and offers a premium user experience. As a result, they are positioned as the brand of choice for consumers who are both tech-savvy and design-conscious.

Nike: inspiration and motivation

With the introduction of Nike’s slogan: “Just Do It,” they established themselves as a brand that inspires and motivates athletes of all backgrounds and abilities.

The company emphasizes athletic performance and achievement, positioning itself as the brand of choice for athletic consumers—from backyard warriors to professional athletes.

Tesla: sustainability and innovation

As one of the first successful electric vehicle manufacturers, Tesla is a leader in sustainable energy and automotive technology. They have positioned themselves to appeal to environmentally conscious tech enthusiasts. To bridge those two demographics, Tesla ensures that the technology in their vehicles is state-of-the-art.

Airbnb: belonging and community

Airbnb first launched with a unique business model. Allowing homeowners to rent their homes to travelers provided a unique vacation experience that feels more like staying at home.

They positioned themselves as a brand that believes in the power of community and embraces the idea of belonging anywhere. In doing so, they were able to attract customers looking for unique experiences.

• How market research helps improve branding

You won’t be able to position yourself effectively in the market if you don’t understand it. Only then can you know how you compare to your competitors and what unique value propositions to offer.

Understanding the market also requires you to gather customer insights and preferences, which can further aid your branding efforts.

Here are some of the advantages of market research for branding and positioning:

It can help you avoid mistakes

As you evaluate the market and the trends associated with your industry, you’ll gather data that can help you avoid mistakes.

For example, you may identify problems that your competitors have experienced themselves, such as products that didn’t take off or pricing models that weren’t profitable. The data you gather throughout the process will give you insights to make more informed decisions and avoid these issues yourself.

It can help you create a customer-centric brand

Ultimately, building a business focused on customers’ needs and desires supports long-term relationships with those who purchase from you.

It helps when launching a new product or service

Sometimes, you might think you have a great product or service idea only to find out that it doesn’t work as well as you’d hoped once it hits the market.

Perhaps there wasn’t enough market demand for the product. Perhaps you didn’t position your product effectively and the people who wanted to buy it didn’t receive the message that would have prompted them to do so.

Whatever the cause, when you deep dive into the market and its customer base before launching your product or service, you’ll know what customers are looking for and how to craft targeted messages that reach them.

It improves brand perception

The way customers perceive your brand will change over time. If you’re careful, your brand perception will improve. If you don’t monitor brand sentiment, the opposite could occur.

Part of market research is monitoring how customers perceive your own brand and your competitors’ brands. With this information, you can respond to negative feedback about your brand promptly and reinforce positive attributes in your messaging. You’ll also be able to take advantage of negative sentiment that develops around your competitors.

• How to conduct market research for branding

It’s easy to see how using market research to drive branding decisions can play a major role in your business’s success. This section will detail the six steps of the process, telling you everything you need to know to start planning your own market research.

1. Define what you want to research

The first step is setting clear objectives. Don’t get started before you precisely define what you will be researching.

You’ve seen many examples of what market research can illuminate for you. Rather than trying to catch all of them in a large net, break your research down into logical groupings and approach them one at a time.

2. Decide on your research questions

Next, determine the key research questions you’ll be asking. These should be informed by the goal you established in the first step.

For example, if you want to research how you compare to competitors, define the key metrics you’ll be using for the comparison. Remember, if you plan to collect feedback from potential customers, take care to define who your target audience is so that you’re gathering the information that is most relevant to your business.

3. Talk to the people who matter

Many of the market research topics we’ve discussed involve talking to customers—your customers, other brands’ customers, or potential customers of both. Regardless of who they are, you need to give them a convenient way to answer your questions and provide as much detail as you need.

Sometimes, surveys may be enough to get the information you’re looking for—but if this data requires more of a back-and-forth than a survey allows for, one-on-one interviews and focus groups are a good approach. With these methods, you can get deeper insights into consumers’ minds.

You can also engage directly with your customers on social media. Keeping an eye on what people are saying on your competitors’ social feeds can also provide useful information.

4. Test your branding

Large brands that have been around for a while have typically had several different logos and branding strategies over the years. They have adapted to market forces, and you can do the same. You want your brand to resonate with your target audience as much as possible.

One approach to finding the branding that works best for your business and its customers is A/B testing.

A/B testing involves one group of customers being shown one version of your branding and another group being shown a secondary version. When you see which version of branding works best, you’ll know which is the most profitable. You can repeat this process until you’re happy with the metrics. Repeat it regularly so your appeal remains relevant to changing consumer preferences.

In addition to A/B testing, you need to be proactively listening to what consumers are saying. When you get feedback about your branding or your brand’s perception, respond to it and adapt your strategies. Regularly ask for feedback about your branding so you can gather useful data without waiting for your customers to say something.

5. Be consistent and check in on your brand awareness

Consumer preferences change over time, and successful companies adapt to them. Your company must do the same.

By conducting regular brand audits that test for things like brand recognition and brand perception, you’ll be able to stay ahead of a changing market landscape and remain as relevant as possible to your target audience.

Perform regular brand audits and record the key metrics you use to track your branding efforts. This will reveal a set of trend lines that allow you to see how your brand awareness and perception are shifting—information that will help you determine when a change is needed and how well it works.

Building a coherent brand identity requires consistency across all channels. Every interaction your customers have with your company should feature messaging with the same tone and values. This will establish a more cohesive and memorable brand identity and ensure that the metrics you track are relevant to a particular message and tone.

6. Use market research tools to be in control of your research

Technology has provided businesses with a wealth of tools for gathering and analyzing market research and customer data.

Online survey tools will help you collect data from your customers or target audience easily and in a way that’s convenient to them.

Social listening platforms will help you monitor and respond to online feedback.

Detailed customer feedback tools like Dovetail provide you with deep analysis of the data you gather to help you develop actionable insights from customer interviews, product feedback, and everything in between.

As you develop your market research strategy, look at the tools available to you and see which ones best fit into your goals. By utilizing these tools, you’ll be able to streamline your tasks, keep them better organized, and get deeper insights into the data you have collected.

• How to leverage brand positioning research

As you plan out your messaging strategy, follow the tips below to help you make the most of the data you gather.

Identify core benefits in your customers’ own words

Your messaging will be most effective when you align it with the tone your customers use to convey their needs and opinions.

Analyzing customer feedback will unlock this language and enable you to discover the aspects of your business that existing customers like the most and find most valuable. You can use this to craft your key value propositions so your messaging aligns with their needs.

Avoid testing “shades of gray”

Many people make the mistake of asking overly broad questions in surveys. Without further clarification, these questions don’t always provide actionable insights.

With surveys and other non-interactive forms of feedback, you must be careful to ask questions with clear and distinct options from the beginning. Ensure they are phrased unambiguously so the answers are as direct and relevant as possible.

In focus groups or interviews, you can pivot on the fly and ask for these clarifications.

Get the “why” as well as the “what”

Make sure that the feedback you’re getting is as actionable as possible.

People may tell you how they feel about something, but unless they tell you why , your solution might not actually align with their needs. This is why it’s important to conduct in-depth qualitative research that drills down into your target audience’s underlying motivations and emotional drivers.

Agree on what success looks like

Improving your brand alongside its reputation and positioning all require continuous effort. However, you should approach this process in stages.

As you begin to act upon the market research you’ve conducted, you should have a clear set of goals to shoot for. These goals must be realistic and attainable.

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What Is a Target Market?

• Defining a Product's Target Market
• 4 Target Markets

Why Are Target Markets Important?

What are market segments, target market and product sales.

• Target Market FAQs

The Bottom Line

• Marketing Essentials

Target Market: Definition, Purpose, Examples, Market Segments

Investopedia / Mira Norian

A target market is a group of people that have been identified as the most likely potential customers for a product because of their shared characteristics, such as age, income, and lifestyle.

Identifying the target market is a key part of the decision-making process when a company designs, packages, and advertises its product.

Key Takeaways

• A target market is a group of customers with shared demographics who have been identified as the most likely buyers of a company's product or service.
• Identifying the target market is important in the development and implementation of a successful marketing plan for any new product.
• The target market also can inform a product's specifications, packaging, and distribution.

How Do I Define My Product's Target Market?

Part of creating a new product is envisioning the consumers who will buy it.

A new product must satisfy a need or solve a problem—or both. That need or problem is probably not universal (unless it reaches the level of indoor plumbing). More likely, it is needed by a subset of consumers, such as environmentally-conscious vegetarians, science nerds, or outdoor enthusiasts. It may appeal to a teenager or a middle-aged professional, a bargain-hunter or a snob.

Envisioning your likely target market is part of the process of creating and refining a product and informs decisions about its packaging, marketing, and placement.

What Are the 4 Target Markets?

Market researchers use activity, interest, and opinion (AIO) surveys to construct psychographic profiles of their target customers. Marketing professionals divide consumers into four major segments:

Demographic : These are the main characteristics that define your target market. Everyone can be identified as belonging to a specific age group, income level, gender, occupation, and education level.

Geographic : This segment is increasingly relevant in the era of globalization. Regional preferences need to be taken into account.

Psychographic : This segment goes beyond the basics of demographics to consider lifestyle, attitudes, interests, and values.

Behavioral : This is the one segment that relies on research into the decisions of a company's current customers. New products may be introduced based on research into the proven appeal of past products.

What Is an Example of a Target Market?

Each of the four target markets can be used to consider who the customer is for a new product.

For example, there are an estimated 49,773 Italian restaurants in the U.S. Clearly, they have enormous appeal.

But a corner pizza joint might appeal mostly—although by no means entirely—to a younger and more budget-conscious consumer, while an old-fashioned white tablecloth place might be frequented by older individuals and families who live in the neighborhood. Meanwhile, a newer venue down the street might cater to an upscale and trend-conscious crowd who will travel a good distance for the restaurant's innovative menu and fancy wine list.

In each successful case, a savvy business person has consciously considered the ideal target market for the restaurant and has tweaked the menu, decor, and advertising strategy to appeal to that market.

Few products today are designed to appeal to absolutely everyone. The Aveda Rosemary Mint Bath Bar, available for $26 per bar at Aveda beauty stores, is marketed to the upscale and eco-conscious woman who will pay extra for quality. Clé de Peau Beauté Synactif Soap retails for $110 a bar and is marketed to wealthy, fashion-conscious women who are willing to pay a premium for a luxury product. An eight-pack of Dial soap costs $11.49 at CVS, and it is known to get the job done.

Part of the success of selling a good or service is knowing whom it will appeal to and who will ultimately buy it. Its user base can grow over time through additional marketing, advertising, and word of mouth.

That's why businesses spend a lot of time and money in defining their initial target markets, and why they follow through with special offers, social media campaigns , and specialized advertising.

Dividing a target market into segments means grouping the population according to the key characteristics that drive their spending decisions. Some of these are gender, age, income level, race, education level, religion, marital status, and geographic location.

Consumers with the same demographics tend to value the same products and services, which is why narrowing down the segments is one of the most important factors in determining target markets.

For example, people who fall into a higher income bracket may be more likely to buy specialty coffee from Starbucks instead of relying on Dunkin' Donuts. The parent companies of both of these brands need to know that in order to decide where to locate their stores, where to stock their products, and where to advertise their brand.

A business may have more than one target market—a primary target market, which is the main focus, and a secondary target market, which is smaller but has growth potential. Toy commercials are targeted directly to children, and their parents are the secondary market.

Identifying the target market is an essential part of a product development plan, along with manufacturing, distribution, price, and promotion planning. The target market determines significant factors about the product itself. A company may tweak certain aspects of a product, such as the amount of sugar in a soft drink or the style of the packaging, so that it appeals more to consumers in its target group.

As a company’s product sales grow, it may expand its target market internationally. International expansion allows a company to reach a broader subset of its target market in other regions of the world.

In addition to international expansion, a company may find its domestic target market expands as its products gain more traction in the marketplace. Expanding a product's target market is a revenue opportunity worth pursuing.

How Detailed Should a Target Market Be?

It depends. Broadly speaking, a product may be designed for a mass market or a niche market, and a niche market can be a very small group indeed, especially in a product's early introductory phase.

Some carbonated beverages aim for a practically universal market. Coca-Cola had to branch out to 200 markets abroad to continue growing its customer base. Gatorade is owned by Pepsi Cola, but the brand is positioned as a drink for athletes. The soda brand Poppi, which is branded as a healthy, sparkling, prebiotic soda with real fruit juice and gut health and immunity benefits, is clearly aimed at a younger, healthier, and more trend-conscious target market.

Consider a casual apparel company that is working to build its distribution channels abroad. In order to determine where its apparel will be most successful, it conducts some research to identify its primary target market. It discovers that the people most likely to buy its products are middle-class women between the ages of 35 and 55 who live in cold climates.

It's reasonable for the company to focus its advertising efforts on northern European websites that have a strong female audience. But first, the company may consider how its apparel can be most attractive to that target market. It may revise its styles and colors and tweak its advertising strategy to optimize its appeal to this new prospective market.

What Is the Purpose of a Target Market?

A target market defines a product as well as vice versa. Once a target market is identified, it can influence a product's design, packaging, price, promotion, and distribution. A product aimed at men won't be packaged in pink plastic. A luxury cosmetic won't be sold in a pharmacy. An expensive pair of shoes comes with a branded cloth drawstring bag as well as a shoebox. All of those factors are signals to the target audience that they have found the right product.

Identifying the target market is part of the process of creating and refining a new product.

A target market can be translated into a profile of the consumer to whom a product is most likely to appeal. The profile considers four main characteristics of that person: demographic, geographic, psychographic, and behavioral. These characteristics help determine who might purchase a company's product.

IBISWorld. " Italian Restaurants in the U.S. - Number of Businesses ."

Aveda. " Rosemary Mint Bath Bar ."

Cle de Peau. " Synactif Soap ."

CVS. " Dial Antibacterial Deodorant Bar Soap, White ."

Coca-Cola Australia. " Coca-Cola: From Start-Up to Global Enterprise ."

Pepsico Partners. " Gatorade ."

DrinkPoppi. " Home ."

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¿Cómo hacer un estudio de marketing en menos de 30 minutos? Caso práctico de Nike

La investigación de mercados es un proceso complejo y lento, pero ¿y si te dijera que puedes hacerlo en menos de 30 minutos? Con las capacidades de la IA y las herramientas adecuadas, la investigación de mercado ya no es una tarea difícil. Solo necesitas dos cosas: un proyecto de monitorización de medios para recopilar datos y un Asistente de Marca de IA que analice los datos por ti.

Supongamos que, en su estudio de mercado, desea conocer el rendimiento en línea de Nike en los últimos 30 días.

Más fácil imposible.

Investigación de mercado  es el proceso de recopilar, analizar e interpretar información sobre un mercado, incluidos sus productos, servicios, clientes, grupos de discusión, competidores y tendencias del sector, para apoyar la toma de decisiones y el desarrollo de estrategias. Por lo general, el proceso de investigación de mercado consume muchos recursos y tiempo, pero con la herramienta adecuada, puede llevarlo a cabo en menos de 30 minutos.

Así pues, si la investigación de mercado es una de sus responsabilidades y hasta ahora ha tenido problemas con ella, ¡está en el lugar adecuado!

Siga leyendo para comparar 3 herramientas útiles y descubrir el secreto del estudio de mercado en 3 pasos y menos de 30 minutos.

¿Qué es la investigación de mercados? Definición

La investigación de mercado es su arma secreta para el éxito empresarial. 

Imagine disponer de una bola de cristal que le muestre lo que realmente quieren sus clientes, lo que hacen sus competidores y cómo puede conquistar su mercado objetivo. 

Así es la investigación de mercado. 

Se trata de recopilar datos, hacer números y obtener información que le ayude a tomar decisiones inteligentes. 

Tanto si está lanzando un nuevo producto, mejorando sus servicios o simplemente quiere saber qué piensa la gente de su marca, la investigación de marketing le da las respuestas. 

Es como tener un superpoder que te mantiene un paso por delante, asegurándote que siempre estás al tanto y listo para crecer.

¡Realice estudios de marketing en menos de 30 minutos con Brand24!

Objetivos y ventajas de la investigación de mercados

• Investigación sobre los consumidores:  Comprender las necesidades y preferencias de los clientes y su nivel de satisfacción
• Análisis del mercado:  Evaluar el potencial y la cuota de mercado
• Investigación de la competencia:  Análisis de las estrategias y los resultados de la competencia, evaluación de la saturación del mercado
• Evaluación de los esfuerzos de marketing:  Evaluar la eficacia de las campañas de marketing comparándolas con datos históricos.
• Investigación exploratoria:  Identificar nuevas oportunidades y tendencias de mercado que permitan llegar a nuevos clientes potenciales.
• Evaluación de ideas de negocio:  Investigación para el desarrollo y la innovación de productos

La investigación de mercado más fácil con Brand24.

¿Cómo hacer un estudio de mercado?

La investigación de mercado puede llevar mucho trabajo. 

Pero, ¿y si le dijera que puede llevarla a cabo en menos de 30 minutos?

Sí, es posible.

Incorporar técnicas inteligentes de investigación de mercado es la respuesta.

Una última cosa que debe saber es que existen dos tipos de estudios de mercado en cuanto a la fuente de los datos:

• Investigación primaria: se basa en métodos de recopilación de datos primarios, lo que significa que se crean datos nuevos y originales, por ejemplo, mediante encuestas y entrevistas.
• Investigación secundaria: basarse en datos existentes producidos y recopilados por otra persona para respaldar el estudio de mercado.

Y dos tipos de estudios de mercado en función de la cantidad y el detalle de los datos:

• Investigación cualitativa: análisis minucioso de una pequeña muestra para obtener información muy precisa sobre las preferencias de los consumidores.
• Investigación cuantitativa: recopilación y análisis de conjuntos de datos masivos para obtener una visión general de los mercados de consumo. Especialmente útil para crear grupos de discusión que reflejen de forma realista a sus clientes.

Estudio de mercado en 3 pasos

Paso 1: pregunte a las herramientas de ia.

La forma más rápida y eficaz de realizar estudios de mercado es utilizar herramientas de marketing de IA. 

Puede preguntarle cualquier cosa a este software, que le proporcionará la información necesaria en cuestión de segundos.

Si necesita información sobre su marca, personas influyentes, grupos de discusión, productos o servicios, la IA tiene la respuesta a todas sus preguntas.

Puede elegir entre muchas soluciones en función de la profundidad de conocimiento que necesite para su estudio de mercado.

Hablaré de Chat GPT, Perplexity y Brand24.

¿Cuál es la diferencia entre ellos?

• Chat GPT  es una IA conversacional de uso general que proporciona respuestas generales basadas en los datos de su conjunto de entrenamiento y en información en línea. Puede utilizarse para estudios de mercado secundarios.
• Perplejidad  se centra en la exactitud y actualización de los datos. Basa sus respuestas en fuentes en línea con buena reputación. Esto limita supuestamente las respuestas infundadas y obsoletas. Con Perplexity, puedes hacer investigación secundaria.
• Marca24  combina los conocimientos de Chat GPT con su propio análisis de datos. Funciona basándose en un seguimiento de los medios de comunicación que recoge todas las menciones en línea de una palabra clave determinada. Gracias a esta combinación, puede responder a preguntas muy específicas sobre su marca o ayudarle en la investigación de la competencia. Brand24 ofrece estudios de mercado primarios con algunas perspectivas de investigación secundaria. También es una herramienta práctica tanto para la investigación cualitativa (análisis de menciones individuales) como para la cuantitativa ( métricas de marca análisis). En resumen, se trata de una herramienta versátil que puede satisfacer todas sus necesidades en materia de investigación de mercado.

Estudios de mercado primarios más fáciles con Brand24.

Elijamos un ejemplo de pregunta de investigación de mercado para planteársela a todos ellos. Me decantaré por algo general como Presentar las perspectivas de los clientes de Nike en los últimos 90 días.

Aunque la respuesta de Chat GPT es generalmente correcta, no le dice mucho para su investigación de marketing. Por desgracia, es demasiado general y bastante conocida. 

Además, no puede preguntar a Chat GPT sobre un periodo específico como "los últimos 90 días".

Chat GPT cita Brand24 como fuente de datos secundaria en el 3er y 4º punto para apoyar su respuesta. 

Sin embargo, se trata de un artículo de hace un año, es decir, no es información sobre el rendimiento de Nike en los últimos 90 días. 

Aunque no es del todo erróneo, resulta bastante inútil para realizar un estudio de mercado exhaustivo.

Probemos con Perplejidad, entonces.

Esa es otra respuesta correcta pero muy general.

Es informativo para alguien ajeno a la empresa, pero apuesto a que todo el mundo en Nike ya conoce la información compartida por Chat GPT y Perplexity.

Esto significa que necesita una herramienta que lleve a cabo una investigación primaria y proporcione perspectivas de mercado completamente nuevas.

Ahí es donde Brand24 y su Asistente de marca AI entrar.

Esta herramienta combina los conocimientos y la capacidad de procesamiento lingüístico de Chat GPT con sus datos exclusivos recogidos a través del seguimiento de los medios de comunicación. 

Gracias a la investigación primaria y secundaria, Brand24 puede proporcionar información detallada sobre su producto o servicio.

Además, al combinar datos cualitativos y cuantitativos, puede realizar un análisis exhaustivo de todos los mercados destinatarios.

Gracias a su método, lo sabe:

• Lo que la gente dice de su marca en Internet
• ¿Cuál de sus productos es el más querido y cuál el más odiado?
• ¿Cuál es su alcance de la marca en línea y alcance en las redes sociales
• Todo sobre tu última campaña de hashtags
• Sus resultados en comparación con los de la competencia
• ¿Qué es el AVE de sus menciones
• y mucho más.

Hagamos la misma pregunta que probamos en Chat GPT y Perplexity.

¡Eso es lo que necesitábamos!

Información detallada sobre su rendimiento en línea, que servirá de base para sus estudios de mercado.

Esta herramienta fundamental combina la investigación primaria con recursos externos para ofrecerle una visión definitiva de sus estudios de mercado.

¡Realice estudios de mercado en menos de 30 minutos con Brand24!

También hay una conclusión concisa y un gráfico, así que no te preocupes si no te gusta indagar en los números.

Además, esto le ahorra tiempo y mejora sus decisiones empresariales.

Intentemos una pregunta más: ¿Cuál es el sentimiento en torno a Nike?

Chat GPT vuelve a intentar utilizar los datos de Brand24 para su investigación secundaria, pero de nuevo se equivoca. 

Esos "últimos 30 días" son datos de febrero de 2023. Chat GPT tomó esta información de una de las entradas de nuestro blog sin comprobar la fecha. 

Esto hace que Chat GPT inútil como:

• No tiene datos propios
• Intenta realizar estudios de mercado secundarios basándose en los datos de otros, pero lo hace mal

¿Y la Perplejidad?

De nuevo, la respuesta no es errónea, pero tampoco es lo que cabría esperar. La información es demasiado general para respaldar en modo alguno un estudio de mercado.

Veamos qué nos ofrece el AI Brand Assistant de Brand24.

El Asistente de Marca AI respalda sus respuestas con sus propios resultados de investigación cuantitativa. Gracias a ello, sus respuestas son precisas, están actualizadas y reflejan el estado real de tu marca online.

También puedes hacer preguntas de seguimiento. 

Comprobemos las razones del sentimiento negativo en torno a Nike.

Como puede ver, la respuesta es muy detallada y hace referencia a menciones concretas.

Con esta información en profundidad, puede ajustar su estrategia de marketing, mejorar las decisiones empresariales y prevenir crisis de relaciones públicas atendiendo a las necesidades de los clientes y a las preocupaciones más comunes.

¡Realice estudios de mercado más rápido que nunca con Brand24!

¿Y qué más puede preguntarle a nuestro AI Brand Assistant en relación con la investigación de marketing?

1. ¿Qué fuente genera más menciones?

2. ¿Cuántas menciones recibió Nike en los últimos 30 días?

3. ¿Cuál es el mercado objetivo de Nike?

4. ¿Qué otras marcas aparecen en las menciones?

5. ¿Cuál es el tema más trending topic?

6. ¿Cuál es el producto más mencionado?

7. ¿A qué hora es más activo el público objetivo en Instagram?

8. ¿Cómo perciben los clientes a Nike en comparación con Reebok?

9. ¿Qué piensan los clientes de Nike?

10. ¿Cuál es la cuota de voz en comparación con Reebok?

11. Llevar a cabo una análisis de la competencia de Reebok.

12. Realizar análisis de opiniones de Nike.

13. Presentar los puntos de vista de los clientes

Y hay mucho más por descubrir.

Un éxito para los investigadores de mercado Agilice su trabajo con Brand24.

Lo mejor es que ni siquiera necesita hacer todas esas preguntas. Puedes delegar por completo la investigación de mercado en nuestro AI Brand Assistant. 

Por ejemplo, utilice esta indicación: Realice un estudio de mercado para Nike. Incluya análisis de sentimiento, análisis de competidores, alcance y Análisis DAFO .

¡Agilice sus estudios de mercado con AI Brand Assistant!

Paso 2: Preguntar al público objetivo y a los grupos de discusión

Se trata de la llamada investigación primaria, es decir, la recopilación de datos nuevos y originales directamente del público o de un grupo específico.

¿Cómo recoger las opiniones de los clientes?

Puede preguntar a sus clientes objetivo sobre sus preferencias mediante encuestas. Estas pueden distribuirse por correo electrónico, redes sociales u otros canales.

Otra opción es realizar una investigación de mercado mediante entrevistas en tiempo real.

Pero seamos justos: la primera suele ser bastante ineficaz y la segunda requiere mucho tiempo.

Hay tres formas de hacerlo.

• Utilice una herramienta específica para mejorar la experiencia del cliente con su encuesta. Hay muchas soluciones entre las que elegir para su investigación primaria. Las más destacadas son Google Forms, Survey Monkey, Survey Lab y Zoho Survey.
• Delegue en todo su equipo la realización de las entrevistas para obtener resultados más rápidos.
• Aproveche herramientas de escucha social .

Si tuviera que elegir, me decantaría por escucha social . 

¿Por qué generar más datos cuando ya hay tantos que analizar en línea? 

Otra cosa es que el comportamiento de los clientes cambie en función del método de realización del estudio de mercado. 

De hecho, para obtener información honesta sobre los consumidores, seguimiento de las redes sociales funciona mejor que cualquier otro método de investigación primaria.

Gracias al seguimiento de las menciones en línea, también puede realizar una investigación exploratoria. 

Dedique un momento a examinar las palabras de sus clientes y es posible que descubra ideas revolucionarias en los estudios de mercado. 

Puede que haya aspectos de su empresa en los que nunca pensó que hubiera problemas, oportunidades, etc.

La investigación primaria con Brand24 puede informar su estrategia y llevarle a descubrimientos y conclusiones completamente nuevos. 

Basándose en ellos, puede crear una estrategia informada para atraer mejor a sus grupos de discusión y clientes potenciales.

Descubra las preferencias de los clientes con Brand24

Paso 3: Comparación con la competencia

El análisis de la competencia es el último paso crucial de toda investigación de marketing. 

Entender lo que hacen sus competidores le permitirá detectar carencias en el mercado, detectar tendencias y encontrar oportunidades para diferenciar su marca. 

Le ayuda a evaluar su rendimiento, ver en qué punto se encuentra y comprender por qué algunos competidores tienen más éxito. 

El análisis de la competencia también le prepara para anticiparse a las amenazas y responder a ellas, garantizando su competitividad e innovación. 

También le ayudará a realizar un análisis DAFO de su empresa.

En Brand24 somos conscientes de la importancia de investigación de la competencia .

Por eso ofrecemos una compleja función de comparación. Gracias a ella, podrá obtener una ventaja competitiva sobre otras empresas de su sector.

Además del análisis de datos brutos, también puede preguntar a nuestro Asistente de Marca sobre: 

• Comparación de dos marcas 

Lo mejor es que la herramienta prepara una conclusión concisa con un elemento visual.

• Estrategias para superar a sus competidores

• La mayor fuente de menciones de sus competidores
• y cualquier otra cosa que se te ocurra y esté basada en los datos de tu proyecto.

Compare a sus competidores con la herramienta de estudio de mercado Brand24.

Desafíos en el proceso de investigación de mercado

La investigación de mercados es un componente esencial de la estrategia empresarial, pero hay varios retos que pueden afectar a la precisión y utilidad de los datos recabados. 

He aquí algunos de los principales retos a los que se enfrenta la investigación de mercado:

01  Cuestiones de muestreo

• Desafío:  Seleccionar un segmento de mercado representativo es crucial, pero puede ser difícil acceder a él y asegurarse de que la muestra refleja fielmente a los consumidores objetivo.
• Solución:  Utilice técnicas de muestreo sólidas y considere métodos múltiples para mejorar la representatividad. También puede crear grupos focales para garantizar un muestreo inclusivo.

02  Métodos de recogida de datos

• Desafío:  Elegir el método de recogida de datos adecuado puede resultar difícil. Cada método tiene sus pros y sus contras, y una elección equivocada puede afectar a la calidad de los datos y a los resultados finales.
• Solución:  Evalúe los objetivos de la investigación y las características del público objetivo para seleccionar el mejor método o métodos de recogida de datos. Recuerde que el seguimiento de los medios de comunicación es un excelente punto de partida para cualquier investigación de marketing.

03  Calidad y fiabilidad de los datos

• Desafío:  Garantizar la exactitud y fiabilidad de los datos recopilados puede ser difícil, especialmente con datos autodeclarados o fuentes secundarias.
• Solución:  Aplique técnicas de validación de datos y coteje datos de múltiples fuentes cuando sea posible. Aproveche herramientas de seguimiento de medios para conocer de primera mano la satisfacción de sus clientes.

04  Complejidad del análisis de datos

• Desafío:  El análisis de datos, especialmente de conjuntos de datos grandes y complejos, requiere conocimientos y herramientas especializados. Una mala interpretación de los datos puede llevar a conclusiones erróneas.
• Solución:  Utilice herramientas analíticas avanzadas como Brand24 o recurra a analistas de datos cualificados que puedan interpretar correctamente los datos.

05  Limitaciones de tiempo

• Desafío:  Llevar a cabo una investigación exhaustiva lleva tiempo, pero las empresas a menudo necesitan información rápida para tomar decisiones a tiempo.
• Solución:  Planifique cuidadosamente los plazos de investigación y utilice metodologías de investigación ágiles. Comienza tu proyecto de seguimiento de medios antes de realizar la investigación de mercado para garantizar datos representativos y pertinentes.

06  Mantenerse al día de los cambios tecnológicos

• Desafío:  La rápida evolución de la tecnología implica la aparición constante de nuevos métodos y herramientas de análisis de datos, lo que hace difícil mantenerse al día.
• Solución:  Elige una herramienta que se mantenga al día de los avances tecnológicos y adopte soluciones como el aprendizaje automático y la inteligencia artificial. Los modelos de IA de Brand24 han sido entrenados durante los últimos 12 años, lo que garantiza un enfoque moderno con una fiabilidad significativa.

07  Sesgo del encuestado

• Desafío:  Los encuestados pueden dar respuestas socialmente deseables o no participar plenamente en la encuesta o entrevista, lo que puede dar lugar a resultados sesgados.
• Solución:  Diseñe cuidadosamente las encuestas y las preguntas de las entrevistas para minimizar los sesgos. Utilice técnicas como las encuestas anónimas para fomentar respuestas sinceras. Aproveche la escucha social para obtener ejemplos de opiniones de clientes brutalmente sinceras.

08  Interpretación y comunicación de resultados

• Desafío:  Incluso con buenos datos, interpretar y comunicar eficazmente los resultados a las partes interesadas puede resultar difícil.
• Solución:  Utilice representaciones visuales claras de los datos y adapte la comunicación de los resultados al nivel de comprensión e interés de la audiencia. En Brand24 entendemos este problema, por lo que ofrecemos una amplia gama de representaciones visuales de datos, como tablas, gráficos e infografías.

Hacer frente a estos retos exige una planificación cuidadosa, una ejecución hábil y una adaptación continua a las nuevas tendencias y tecnologías de la investigación de mercados.

Afronte los retos de la investigación de mercados con Brand24

La investigación de mercado es un proceso difícil, que consume tiempo y recursos y es propenso a cometer errores.

Al mismo tiempo, la investigación de mercado es la clave de su éxito. Informa de su estrategia de marketing, proporciona datos demográficos clave de sus clientes y le ayuda a adelantarse a sus competidores.

Afortunadamente, con la herramienta adecuada, se puede realizar un estudio de mercado eficaz en menos de 30 minutos y en 3 sencillos pasos.

¿Cómo realizar un estudio de mercado?

Resumiendo:

• Pida a AI Brand Assistant que realice un estudio de mercado por usted.
• Aproveche los datos de investigación primaria de la escucha social para conocer la satisfacción de los clientes y los grupos de discusión.
• Comparación con los competidores para garantizar su liderazgo en el mercado objetivo.

¿Un estudio de mercado eficaz? ¡Brand24!

Reflexiones finales:

• Los estudios de marketing ayudan a las empresas a comprender mejor su entorno empresarial, el comportamiento de los consumidores, el tamaño del mercado y el rendimiento de sus productos o servicios. Con las herramientas adecuadas, puede obtener toda esa información en menos de 30 minutos.
• Mientras que herramientas como Chat GPT y Perplexity basan sus respuestas en investigación secundaria, Brand24 dispone de datos primarios únicos sobre tu marca que nadie más puede proporcionar.
• Brand24 combina la investigación primaria y secundaria escuchando y analizando las actitudes de sus consumidores y transformándolas en datos únicos de investigación cuantitativa.

Estudios de mercado realizados internamente en menos de 30 minutos.

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More From Forbes

Top 10 countries hiring freelancers in 2024, from research.

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Demand for freelance talent is up this year

Are you hoping to join the new wave of workers known as the freelance workforce this year? Are you intending to leave your job—or begin the process so you can be in a financially strong enough position to hand in your notice this year?

If you plan on joining the gig economy, or starting a side hustle and scaling it into a fulltime venture, you'll be pleasantly surprised to learn that demand for freelancers is up this year, according to expert analysts at Worksuite , a freelance management platform that connects businesses and freelancers.

Their research concluded that there was a "22.4% year-on-year growth in the dollar amount of invoiced contract work being managed" via their platform, with major corporate clients hiring these freelancers including big names such as Marriott Bonvoy, Mediabrands, The New York Academy of Sciences, Microsoft, and WebMD.

Top 10 Countries With Greatest Number Of Freelancers

According to the same report, the top 10 countries that held the greatest number of freelance professionals in 2023 were:

• United Arab Emirates (UAE),
• Philippines
• Puerto Rico

In 2024, that list remains fairly the same, with the exception of three countries—Germany, Puerto Rico, and Sweden—dropping out, and being replaced by Brazil, Australia, and South Africa in the final three positions in the ranking.

Best High-Yield Savings Accounts Of 2024

Best 5% interest savings accounts of 2024.

The report continues to note that within the first half of 2024, the top five countries churning out freelancers that experienced an increase in fresh freelance talent (based on Worksuite usage data), compared to last year, are South Africa with a 126% increase, followed by the U.S. (68%), Canada (64%), Australia (62%), and the UAE (47%).

But perhaps one of the most interesting insights from the Worksuite report is the countries it listed which are the most keen on hiring freelance talent right now.

According to their findings, in the first half of 2023, the top 10 countries that spent the most money in hiring freelance talent were the U.S., U.K., Canada, Netherlands, India, Panama, Switzerland, Australia, Poland, and Uruguay.

Top 10 Countries Hiring Freelancers In 2024

Within the first half of 2024, we are seeing some major differences compared to last year. The top 10 countries where you can witness companies spending the most money on freelancers now are:

What Does This Mean To You?

Understanding the current state of the freelance market can help you uncover areas of strong job demand and growth within your specialism or niche, and industry, and can lead to more high-growth and high-paying gigs and projects. You might even decide to move to one of these countries, or opt for switching up your marketing strategy to ensure that corporations and entities based in, or having a presence in, these top countries hiring freelancers, are better placed to view your services and contract with you.

Here are some ideas on how to use this information to inform your freelancing strategy when growing your small business and bidding for projects:

1. Study Country-And-Region-Specific Market Rates And Spending Power

Don't just take the findings of the report at face value and run with it. Conduct thorough market research to ensure these countries would work best for you and your business idea. Then you can set competitive rates based on the spending power and market rates within the countries listed above. For example, you may find that high-spending markets are more willing to pay premium rates for your quality expertise. This knowledge enables you to confidently negotiate better pay rates.

2. Target Your Marketing And Outreach

Focus your marketing efforts, especially digital marketing and social media outreach, on the countries you wish to target, to reap the most benefits. This is particularly helpful if you are narrowing down your audience for PPC (pay-per-click) advertizing on Facebook for example, or if you are sending new connection requests and InMails on LinkedIn.

3. Build A Global Client Base

Think about where you wish to establish your presence and thought leadership as a freelance professional, and reduce the risk of over-dependence on one market by diversifying your geographical reach. Build a global client base and develop mechanisms that allow you to work for and collaborate with stakeholders across the world, whether that be new software or something as simple as developing your communication skills.

Understanding which countries are spending the most on freelancers can help you make informed ... [+] decisions for your marketing strategy

As a freelancer, you're stepping into an entire new world of work. Remember to think smart, strategize your way to success, and physically position yourself and your business visibility where you will be most likely to gain the most profit and opportunities.

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