best way to do a market research

Market Research: A How-To Guide and Template

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

MARKET RESEARCH KIT

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

Updated: 02/21/24

Published: 03/30/16

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

Enter: Market Research.

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

Table of Contents

What is market research?

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

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

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

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

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

How? Consider these two things:

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

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

Free Market Research Kit

• SWOT Analysis Template
• Survey Template
• Focus Group Template

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Why do market research?

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

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

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

Market research also provides insight into the following:

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

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

As a result, you can make better business decisions.

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

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

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

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

Primary Research

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

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

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

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

Secondary Research

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

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

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

1. Interviews

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

2. Focus Groups

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

3. Product/Service Use Research

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

4. Observation-Based Research

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

5. Buyer Persona Research

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

6. Market Segmentation Research

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

7. Pricing Research

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

8. Competitive Analysis

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

9. Customer Satisfaction and Loyalty Research

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

10. Brand Awareness Research

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

11. Campaign Research

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

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

1. Define your buyer persona.

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

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

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

10 Free Competitive Analysis Templates

Track and analyze your competitors with these ten free planning templates.

• SWOT Analysis
• Battle Cards
• Feature Comparison
• Strategic Overview

Identifying Content Competitors

Search engines are your best friends in this area of secondary market research.

To find the online publications with which you compete, take the overarching industry term you identified in the section above, and come up with a handful of more specific industry terms your company identifies with.

A catering business, for example, might generally be a “food service” company, but also consider itself a vendor in “event catering,” “cake catering,” or “baked goods.” Once you have this list, do the following:

• Google it. Don't underestimate the value in seeing which websites come up when you run a search on Google for the industry terms that describe your company. You might find a mix of product developers, blogs, magazines, and more.
• Compare your search results against your buyer persona. If the content the website publishes seems like the stuff your buyer persona would want to see, it's a potential competitor, and should be added to your list of competitors.

5. Summarize your findings.

Feeling overwhelmed by the notes you took? We suggest looking for common themes that will help you tell a story and create a list of action items.

To make the process easier, try using your favorite presentation software to make a report, as it will make it easy to add in quotes, diagrams, or call clips.

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

• Background: Your goals and why you conducted this study.
• Participants: Who you talked to. A table works well so you can break groups down by persona and customer/prospect.
• Executive Summary : What were the most interesting things you learned? What do you plan to do about it?
• Awareness: Describe the common triggers that lead someone to enter into an evaluation. (Quotes can be very powerful.)
• Consideration: Provide the main themes you uncovered, as well as the detailed sources buyers use when conducting their evaluation.
• Decision: Paint the picture of how a decision is really made by including the people at the center of influence and any product features or information that can make or break a deal.
• Action Plan: Your analysis probably uncovered a few campaigns you can run to get your brand in front of buyers earlier and/or more effectively. Provide your list of priorities, a timeline, and the impact it will have on your business.

Within a market research kit, there are a number of critical pieces of information for your business‘s success. Let’s take a look at these elements.

Pro Tip: Upon downloading HubSpot's free Market Research Kit , you'll receive editable templates for each of the given parts of the kit, instructions on how to use the kit, and a mock presentation that you can edit and customize.

What Is a Competitive Analysis — and How Do You Conduct One?

The Beginner's Guide to the Competitive Matrix [+ Templates]

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

SWOT Analysis: How To Do One [With Template & Examples]

28 Tools & Resources for Conducting Market Research

TAM, SAM & SOM: What Do They Mean & How Do You Calculate Them?

How to Run a Competitor Analysis [Free Guide]

5 Challenges Marketers Face in Understanding Audiences [New Data + Market Researcher Tips]

Causal Research: The Complete Guide

Total Addressable Market (TAM): What It Is & How You Can Calculate It

Free Guide & Templates to Help Your Market Research

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The Ultimate Guide to Market Research: Examples and Best Practices

Market research plays a vital role in the success of any business. It helps companies understand their target market, gather valuable insights, and make informed decisions. In this ultimate guide, we will demystify market research, explore different research methods, discuss the importance of selecting the right market research partner, and provide real-life examples and best practices.

Market Research Demystified

Market research is the process of collecting, analyzing, and interpreting data about a particular market, industry, or target audience . By conducting market research, companies gain a deeper understanding of market trends, customer preferences, and competitive landscape, allowing them to make informed strategic decisions and create effective marketing campaigns.

Market research can be classified into two main categories: primary and secondary research. Both approaches provide valuable information, but they differ in their data collection methods and purpose.

Unveiling the Importance of Marketing Research

Market research is crucial for businesses because it helps them stay competitive, identify new opportunities, and minimize risks. By conducting thorough market research, companies can understand their customers' needs and preferences, develop products or services that meet those needs, and position themselves effectively in the market.

Market research also helps businesses identify their target audience and determine the most effective ways to reach them. It provides insights into consumer behavior, buying patterns, and market trends, allowing companies to tailor their marketing strategies and messages accordingly.

Primary vs Secondary Market Research: Understanding the Difference

Primary market research involves collecting data directly from the source. This can be done through surveys, interviews, observations, or experiments. Primary research provides firsthand information that is specific to the research objectives and allows businesses to gather data tailored to their needs.

Secondary market research, on the other hand, involves using existing data that has already been collected by someone else for a different purpose. This can include published reports, industry studies, government data, or customer feedback. Secondary research is cost-effective, saves time, and provides access to a wide range of data.

Both primary and secondary research have their advantages and limitations. The choice between the two depends on several factors, including the research objectives, budget, and time constraints. In many cases, a combination of both approaches yields more comprehensive and accurate results.

Case Studies: Insights from Successful Market Research

Real-life case studies can provide valuable insights into the effectiveness of market research. Let's explore two examples of companies that used market research to drive their success.

Case Study 1: Company XYZ, a startup in the fashion industry, conducted extensive market research before launching their line of sustainable clothing. Through surveys and focus groups , they identified a growing demand for eco-friendly fashion among millennials. This research allowed them to create a unique brand positioning and design products that resonated with their target audience. As a result, they gained a competitive advantage and achieved rapid growth in the market.

Case Study 2: Company ABC, a multinational consumer goods company, used market research to enter a new international market. They conducted thorough market analysis, including competitor analysis, consumer behavior research, and cultural studies. This research helped them tailor their product offering and marketing strategy to suit the local market preferences. As a result, they successfully launched their products and gained a significant market share.

These case studies illustrate the power of market research in driving business success and making informed decisions. Regardless of the industry or size of the company, market research can provide valuable insights and guide strategic planning.

Expanding on the importance of market research, it is worth noting that in today's rapidly evolving business landscape, staying ahead of the competition is more challenging than ever. Market research plays a vital role in helping companies gain a competitive edge by providing them with valuable information about their target market and customers. By understanding the needs, preferences, and behaviors of their target audience, companies can develop products and services that meet their customers' expectations and stand out in the market.

Furthermore, market research can also help businesses identify emerging trends and opportunities. By analyzing market data and consumer insights, companies can spot gaps in the market and capitalize on them. This proactive approach allows businesses to stay ahead of the curve and adapt their strategies to changing market dynamics.

Another aspect of market research that is worth exploring is the role it plays in risk mitigation. By conducting thorough market research, companies can identify potential risks and challenges before they become major issues. This allows them to make informed decisions and develop contingency plans to mitigate those risks. Market research acts as a compass, guiding businesses through uncertain terrain and helping them navigate potential obstacles.

Decoding Qualitative and Quantitative Research Methods

Market research methods can be broadly classified into two categories: qualitative and quantitative research. Let's dive deeper into each approach and understand their benefits and applications.

Diving Deep into Qualitative Research Techniques

Qualitative research focuses on understanding human behavior , motivations, attitudes, and perceptions. It provides insights into the "why" behind consumer actions and helps uncover underlying emotions and motivations.

Qualitative research methods include focus groups, interviews, observations, and case studies. These methods allow researchers to gather rich and detailed information, explore participants' thoughts and opinions in depth, and uncover new insights that may not be captured by quantitative research alone. For example, in a focus group, participants can engage in open-ended discussions, allowing for a deeper exploration of their experiences and perspectives.

Moreover, qualitative research is especially useful in the early stages of product development or when exploring new market segments. By conducting interviews or observations, researchers can gain a nuanced understanding of consumer needs, preferences, and pain points. This knowledge can then be used to develop products and services that truly resonate with the target audience.

The Power of Numbers: Quantitative Research Explained

Quantitative research, on the other hand, focuses on numerical data and statistical analysis . It aims to quantify consumer opinions, behaviors, and preferences using structured questionnaires or surveys.

Quantitative research methods include online surveys, face-to-face interviews, and experiments. These methods allow researchers to collect data from a large sample size, analyze trends and patterns , and make statistically valid conclusions. For instance, by distributing an online survey to a large number of respondents, researchers can obtain a representative sample and generate reliable statistical data.

Furthermore, quantitative research is particularly useful when measuring customer satisfaction, conducting market segmentation, or evaluating the impact of marketing campaigns. By using rating scales or Likert-type questions, researchers can assign numerical values to different variables, enabling them to analyze and compare data objectively. This data-driven approach provides valuable insights that can guide strategic decision-making.

Both qualitative and quantitative research methods have their strengths and limitations. Combining both approaches can provide a holistic understanding of consumer behavior and inform strategic decision-making. By triangulating data from multiple sources, researchers can validate findings, identify patterns, and gain a comprehensive view of the market landscape. This integrated approach enhances the reliability and robustness of research outcomes, enabling businesses to make informed and data-driven decisions.

Unleashing the Potential of Market Research Tools

Market research tools can enhance the efficiency and effectiveness of the research process. Here, we will explore the benefits of using market research tools and highlight the role of Userpilot in enhancing market research.

Market research tools play a crucial role in helping businesses understand market trends, consumer behavior, and competitive landscapes. They provide valuable data that can guide strategic decision-making, product development, and marketing campaigns. By utilizing these tools, companies can gain a competitive edge and stay ahead in today's dynamic business environment.

Enhancing Market Research with Userpilot

Userpilot is a market research tool that allows businesses to collect feedback, conduct surveys, and analyze user behavior. It provides valuable insights into user preferences, pain points, and feature requests.

One of the key advantages of using Userpilot is its user-friendly interface and easy integration with existing software platforms. It allows companies to create personalized surveys, collect real-time feedback, and analyze data in a centralized dashboard.

By leveraging Userpilot, businesses can gather actionable insights, improve their product or service offerings, and enhance the overall customer experience. Userpilot streamlines the market research process, saving time and resources, and enabling companies to make data-driven decisions.

Furthermore, Userpilot offers advanced analytics capabilities that help businesses track user engagement, retention rates, and conversion metrics. This data-driven approach empowers companies to optimize their marketing strategies, tailor their products to meet customer needs, and drive business growth.

Your Comprehensive Guide to the Market Research Process

The market research process involves several key steps, from defining research objectives to analyzing and interpreting the data. Let's explore each step in detail:

Step-by-Step: Navigating the Market Research Journey

• Define the research objectives: Clearly state the purpose and goals of the research.
• Identify the target audience: Determine the specific group of people or businesses you want to gather insights from.
• Select research methods: Choose the appropriate qualitative or quantitative research methods based on your objectives.
• Design the research instrument: Develop surveys, questionnaires, or interview protocols that align with your research goals.
• Collect data: Implement the research methods and collect data from the identified target audience.
• Analyze and interpret the data: Use statistical analysis or qualitative techniques to analyze the collected data and derive meaningful insights.
• Draw conclusions and make recommendations: Summarize the findings, draw conclusions, and make strategic recommendations based on the data analysis.
• Communicate and present the findings: Present the research results in a clear and concise manner, making it accessible to stakeholders and decision-makers.

The market research process is iterative and requires continuous monitoring and adjustment. By following these steps, businesses can ensure they gather accurate and valuable data to inform their decision-making processes.

Now, let's delve deeper into each step of the market research process to gain a comprehensive understanding:

1. Define the research objectives: In this crucial first step, it is essential to clearly define the research objectives. This involves identifying the specific information you aim to uncover and the goals you want to achieve through the research. By setting clear objectives, you provide a solid foundation for the entire market research process.

2. Identify the target audience: Once you have defined your research objectives, it is important to identify the target audience. This involves determining the specific group of people or businesses from whom you want to gather insights. Understanding your target audience helps ensure that the data collected is relevant and representative of the population you are studying.

3. Select research methods: After identifying your target audience, it is time to choose the appropriate research methods. Depending on your objectives, you may opt for qualitative methods, such as focus groups or interviews, or quantitative methods, such as surveys or experiments. Selecting the right research methods is crucial for obtaining accurate and reliable data.

4. Design the research instrument: With your research methods chosen, the next step is to design the research instrument. This involves developing surveys, questionnaires, or interview protocols that align with your research goals. Designing effective research instruments ensures that you collect the necessary data to answer your research questions and achieve your objectives.

5. Collect data: Once your research instruments are ready, it is time to implement them and collect data from your target audience. This may involve conducting interviews, administering surveys, or observing consumer behavior. Collecting data requires careful planning and execution to ensure that the data collected is accurate and representative of the target audience.

6. Analyze and interpret the data: After collecting the data, the next step is to analyze and interpret it. This involves using statistical analysis or qualitative techniques to uncover patterns, trends, and insights within the data. By analyzing and interpreting the data, you can derive meaningful and actionable insights that can inform your decision-making processes.

7. Draw conclusions and make recommendations: Once the data has been analyzed, it is time to draw conclusions and make recommendations based on the findings. This step involves summarizing the research results, identifying key insights, and drawing conclusions that address the research objectives. Additionally, you can make strategic recommendations based on the data analysis to guide future actions and decision-making.

8. Communicate and present the findings: The final step in the market research process is to communicate and present the findings. This involves presenting the research results in a clear and concise manner, making it accessible to stakeholders and decision-makers. Effective communication of the research findings ensures that the insights gained from the research are understood and utilized to drive informed decision-making.

Remember, the market research process is not a linear path but rather an iterative journey. Continuous monitoring and adjustment are necessary to ensure that the research remains relevant and aligned with changing business needs. By following these steps and adapting as needed, businesses can gather accurate and valuable data to inform their decision-making processes and gain a competitive edge in the market.

Overcoming Challenges and Embracing Best Practices in Market Research

Market research may present its fair share of challenges, but by embracing best practices, businesses can navigate these obstacles and optimize their research efforts. Let's explore some common challenges and best practices:

One common challenge in market research is the issue of data quality. Ensuring that the data collected is accurate and reliable is crucial for making informed business decisions. To address this challenge, businesses can implement rigorous data validation processes, conduct regular data audits, and invest in advanced analytics tools to identify and rectify any discrepancies in the data. By prioritizing data quality, businesses can enhance the credibility and effectiveness of their market research efforts.

Another challenge faced by businesses in market research is the rapid evolution of technology and consumer behavior. With the rise of digital platforms and social media, traditional market research methods may no longer provide a comprehensive understanding of consumer preferences and trends. To overcome this challenge, businesses can leverage advanced data analytics techniques, such as sentiment analysis and social listening, to gain valuable insights from online conversations and interactions. By staying abreast of technological advancements and consumer behavior shifts, businesses can adapt their market research strategies to remain competitive in the ever-changing marketplace.

From Data to Action: Real-Life Market Research Success Stories

Market research generates valuable insights, but the true value lies in how businesses leverage that data to drive action and make informed decisions. Here are two real-life success stories:

Finding Your Perfect Match: Selecting Market Research Tools

Choosing the right market research tools is essential for the success of your research endeavors. Consider the following factors when selecting a market research tool:

Evaluating the Impact of Your Market Research Efforts

Measuring the impact of market research is crucial to determine the effectiveness of your efforts and make informed decisions. Here are some key metrics to consider:

Wrapping It Up: Key Takeaways from Market Research

Market research is a powerful tool that enables businesses to understand their target market, gain valuable insights, and drive informed decision-making. By conducting thorough market research using both qualitative and quantitative methods, leveraging market research tools, and following best practices, businesses can position themselves for success in a competitive market landscape. Remember, the key is not just collecting data but transforming it into actionable insights that drive growth and profitability.

Additional Resources

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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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