market research helps in identifying

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.

Access best-in-class company data

Get trusted first-party funding data, revenue data and firmographics

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.

Related Articles

• Entrepreneurs
• 15 min read

What Is Competitive Analysis and How to Do It Effectively

Rebecca Strehlow, Copywriter at Crunchbase

17 Best Sales Intelligence Tools for 2024

• Market research
• 10 min read

How to Do Market Research for a Startup: Tips for Success

Jaclyn Robinson, Senior Manager of Content Marketing at Crunchbase

Search less. Close more.

Grow your revenue with Crunchbase, the all-in-one prospecting solution. Start your free trial.

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

Free Website Traffic Checker

Discover your competitors' strengths and leverage them to achieve your own success

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.

For more, check out our blog: Importance of Market Research: 9 Reasons Why It’s Crucial for Your Business

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.

Stop Guessing, Start Analyzing

Get actionable insights for market research here

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.

Related Posts

How to Conduct a Social Media Competitor Analysis: 5 Quick Steps

Most Popular Messaging Apps Worldwide 2023

Market Sizing: Measuring Your TAM, SAM, and SOM

How to Research a Company: The Ultimate Guide

How To Create Better Competitive Analysis Reports

Fresh Updates: Analyze Entire Companies With Company Analysis

Wondering what similarweb can do for your business.

Give it a try or talk to our insights team — don’t worry, it’s free!

Three-Day LIVE Summit with 10+ Ecommerce Trailblazers.

• Skip to primary navigation
• Skip to main content

A magazine for young entrepreneurs

The best advice in entrepreneurship

Subscribe for exclusive access, the complete guide to market research: what it is, why you need it, and how to do it.

Written by Mary Kate Miller | June 1, 2021

Comments -->

Get real-time frameworks, tools, and inspiration to start and build your business. Subscribe here

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.

Related Posts

5 Ways Personalization in eCommerce Can Enhance Customer Experience

Engaging Your Audience with Social Media Quizzes and Polls

Email Marketing Automation: Tools and Strategies for 2024

How to Find Influencers: 6 Ways to Discover Your Perfect Brand Advocate

How to Create a Marketing Plan In 2024 (Template + Examples)

What Is UGC and Why It’s a Must-Have for Your Brand

Ad Expert Phoenix Ha on How to Make Creative Ads without Breaking Your Budget

14 Punchy TikTok Marketing Strategies to Amplify Your Growth

How to Grow Your YouTube Channel and Gain Subscribers Quickly

How to Get More Views on Snapchat with These 12 Tactics

12 Instagram Growth Hacks For More Engaged Followers (Without Running Ads)

Create Viral Infographics That Boost Your Organic Traffic

How to Create a Video Sales Letter (Tips and Tricks from a 7-Figure Copywriter)

How to Write a Sales Email That Converts in 2024

What Is a Media Kit: How to Make One in 2024 (With Examples)

FREE TRAINING FROM LEGIT FOUNDERS

Actionable Strategies for Starting & Growing Any Business.

• Search Search Please fill out this field.

What Is Market Research?

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

The Bottom Line

• Marketing Essentials

How to Do Market Research, Types, and Example

• How to Start a Business: A Comprehensive Guide and Essential Steps
• How to Do Market Research, Types, and Example CURRENT ARTICLE
• Marketing Strategy: What It Is, How It Works, How To Create One
• Marketing in Business: Strategies and Types Explained
• What Is a Marketing Plan? Types and How to Write One
• Business Development: Definition, Strategies, Steps & Skills
• Business Plan: What It Is, What's Included, and How to Write One
• Small Business Development Center (SBDC): Meaning, Types, Impact
• How to Write a Business Plan for a Loan
• Business Startup Costs: It’s in the Details
• Startup Capital Definition, Types, and Risks
• Bootstrapping Definition, Strategies, and Pros/Cons
• Crowdfunding: What It Is, How It Works, and Popular Websites
• Starting a Business with No Money: How to Begin
• A Comprehensive Guide to Establishing Business Credit
• Equity Financing: What It Is, How It Works, Pros and Cons
• Best Startup Business Loans
• Sole Proprietorship: What It Is, Pros & Cons, and Differences From an LLC
• Partnership: Definition, How It Works, Taxation, and Types
• What is an LLC? Limited Liability Company Structure and Benefits Defined
• Corporation: What It Is and How to Form One
• Starting a Small Business: Your Complete How-to Guide
• Starting an Online Business: A Step-by-Step Guide
• How to Start Your Own Bookkeeping Business: Essential Tips
• How to Start a Successful Dropshipping Business: A Comprehensive Guide

Joules Garcia / Investopedia

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

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

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

Key Takeaways

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

Market Research

How market research works.

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

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

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

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

Primary Market Research vs. Secondary Market Research

Market research usually consists of a combination of:

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

Primary Market Research

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

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

Secondary Market Research

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

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

History of Market Research

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

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

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

Types of Market Research

Face-to-face interviews.

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

Market research and surveys were adapted from these early techniques.

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

Focus Groups

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

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

Phone Research

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

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

Survey Research

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

Online Market Research

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

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

How to Conduct Market Research

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

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

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

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

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

Benefits of Market Research

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

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

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

Example of Market Research

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

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

What Are the Main Types of Market Research?

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

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

What Is Online Market Research?

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

What Are Paid Market Research Surveys?

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

What Is a Market Study?

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

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

Britannica Money. “ Market Research .”

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

• Terms of Service
• Editorial Policy
• Privacy Policy

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

Published: 02/21/24

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

Enter: Market Research.

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

Table of Contents

What is market research?

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

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

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

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

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

How? Consider these two things:

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

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

Free Market Research Kit

• SWOT Analysis Template
• Survey Template
• Focus Group Template

Download Free

All fields are required.

You're all set!

Click this link to access this resource at any time.

Why do market research?

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

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

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

Market research also provides insight into the following:

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

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

As a result, you can make better business decisions.

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

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

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

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

Primary Research

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

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

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

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

Secondary Research

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

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

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

1. Interviews

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

2. Focus Groups

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

3. Product/Service Use Research

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

4. Observation-Based Research

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

5. Buyer Persona Research

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

6. Market Segmentation Research

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

7. Pricing Research

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

8. Competitive Analysis

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

9. Customer Satisfaction and Loyalty Research

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

10. Brand Awareness Research

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

11. Campaign Research

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

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

1. Define your buyer persona.

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

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

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

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

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

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

Free Guide & Templates to Help Your Market Research

Marketing software that helps you drive revenue, save time and resources, and measure and optimize your investments — all on one easy-to-use platform

What Is Market Research? How To Do It Right Every Time

In this post

Importance of market research

Types of market research, market research process, how to conduct market research, benefits of market research, challenges of market research, market research vs. marketing research.

Do your users know your business’ product or service like the back of their hand?

You work with it every day and know it inside and out: all of its features, how it benefits users, and where it falls short. Yes, you know your product like nothing else, but what about your users? What do you know about the people buying your product? That’s where market research comes in. It helps businesses understand a target market’s ins and outs, present and potential customers’ needs and spending habits, competitors, and the industry. Market research services providers perform in-depth research to help businesses identify potential markets, check product viability, and ensure optimal placement.

What is market research?

Market research is a systematic process to collect, analyze, and interpret qualitative and quantitative data about potential customers, existing users, competitors, and the target market. Businesses use market research results to create products, experiences, and messages to attract and maintain a solid customer base. For example, companies use market research to gauge customer sentiment, gain competitor insights, fix brand perception, create marketing strategies, to name a few.

Every successful business has one thing in common; they get their target customers right. Market research helps them get a clear picture of their potential customers’ values, goals, aspirations, and needs. An effective market research strategy is crucial to understanding the business landscape, connecting with customers, planning marketing campaigns , and beating the competition. Organizations conduct market research in-house or hire a third-party company specializing in market research services. Companies can leverage market research findings in the following ways.

• Identify opportunities to improve average order value (AOV), form business partnerships, and design targeted campaigns.
• Investigate customers’ buying behaviors to test new products, gain actionable insights into customer churn rates , and find potential product glitches.
• Create promotional strategies to create brand awareness , boost brand perception, and buy ads.
• Gather competitive intelligence to address unfulfilled customer needs, find underserved market segments , and mitigate external business environment challenges.
• Make informed business decisions by addressing potential problems and strategizing operational alternatives.

Functions of market research

• Describes target customers’ preferences, competitors, and the overall market situation
• Evaluates product positioning and marketing in comparison to competitors
• Explains reasons behind existing business problems and potential fixes
• Predicts future market opportunities and consumer behavior for creating suitable plans and policies
• Aids in choosing the correct course of action based on the newly found merits and demerits of product, price, promotion, and place (4Ps)

Whether you’re researching to understand a market or draw conclusions on squirrel migration patterns, there are two kinds you can conduct: primary and secondary.

Primary research

Primary research is research you conduct yourself. It includes going directly to a source to gather original data. Researchers use primary research methods to discover meaningful first-hand data about a specific issue or problem. The result of primary research is either exploratory (when there isn’t a clear problem definition) or conclusive (solves a problem from the exploratory research) information. Different types of primary market research are as follows.

• Focus group discussions (FGDs) collect data from a small group of participants or subject matter experts representing a target market. Researchers usually select these participants based on demographics or characteristics. An interviewer facilitates the discussion and engages in conversation to find insights about a product, market, or service.
• Telephonic or face-to-face interviews are two-way conversations between participants and researchers. Interviewers rely on a series of open-ended questions to gain insights into respondents’ opinions and perceptions. The length of these in-depth interviews depends on the complexity of the subject.
• Surveys use open- and close-ended questionnaires to collect responses from a larger population. Online surveys have become a cost-efficient way to conduct primary research across different geographies. Researchers analyze survey research responses to draw inferences about respondents’ opinions and preferences.
• Observations don’t involve direct interaction between respondents and researchers. Trained observers record subjects’ reactions and make organized notes to study further and analyze user behavior.
• Field tests assess how the product or service will function in the real-life environment. These tests are risky but show how people react to your product when other viable options are available. Field test results enable you to adjust factors that might motivate users to take their business elsewhere, like price or packaging.

Secondary research

Secondary research gathers and analyzes information from previous research analyses and publications. In this case, a researcher uses research reports of another researcher as their source of data instead of doing the research themselves. Different types of secondary research are as follows.

• Internal research discovers data available within your organization. Internal data include website, database, user-generated content , and previous research findings and campaign results.
• External research fills the knowledge gap with data from public libraries, newspapers, government agencies, competitive analyses , and journals.

Primary and secondary research methods use qualitative and quantitative data to classify research findings and conclude.

Qualitative research

Qualitative research focuses on the ‘why’ rather than ‘what’ of any behavior, action, or event. It collects and analyzes non-numerical primary and secondary data to generate new research ideas or offer in-depth insights into a problem. Qualitative research relies on observations, interviews, surveys, and FGDs to collect and interpret data. The most common qualitative research approaches are as follows.

• Grounded theory collects rich data on a topic of interest to develop theoretical approaches from observations.
• Ethnography seeks to understand a group or community’s shared culture, beliefs, and conventions.
• Action research connects research and action to drive transformative changes.
• Phenomenological research interprets participants’ lived experiences to investigate an event.
• Narrative research relies on storytelling to understand participants’ perceptions of an event.

Quantitative research

Quantitative research analyzes numerical data to discover patterns, make predictions, and generalize results. Researchers use quantitative techniques to find historical benchmarks for their study. Quantitative methods include surveys, interviews, and experiments. Market researchers use quantitative and qualitative methods to derive insights from data and make decisions. Organizations leverage these techniques to execute different kinds of marketing research.

• Product/service use research discovers what and why of product or service usability for your target audience.
• Buyer persona research uncovers your target market size, challenges, characteristics, aspirations, and motivations.
• Market segmentation research categorizes your target audience groups into segments based on their unique pain points, goals, and needs.
• Pricing research studies competitors’ price points and helps you set a fair pricing point.
• Competitive analysis evaluates competitors’ strengths and weaknesses regarding their products, sales, and marketing.
• Brand awareness research helps a brand uncover its market position and improve brand preference.
• Campaign research dives deep into previous campaigns to discover what went well.
• Brand association research studies the desirability of a brand and boosts positioning accordingly.
• Demand estimation analysis measures customer demand for a product or service.
• Marketing effectiveness assesses the potency of a go-to-market strategy in maximizing revenues.
• Mystery shopping uses independent auditors as customers to assess the sales and service quality.
• Sales forecasting studies potential unit sales to predict future revenue.
• Trendspotting identifies local, global, or regional trends before they become mainstream.
• Feasibility studies predict the success or failure of business concepts, product development, service launches, or business expansion plans.

Systematic inquiry is at the heart of any market research exercise. The process may vary depending on deadlines, budgets, resources, methodologies yet generally follow the sequential stages below.

• Define the problem or opportunity. A problem half-defined remains half-solved. That’s why researchers start with problem diagnosis and definition. A clearly defined research problem aids researchers in establishing accurate research objectives and collecting relevant data.
• Create a research objective statement to develop a hypothesis or investigate a set of research questions. Market researchers create a hypothesis only when they have sufficient empirical evidence to support a claim.
• Choose a research design to specify your plan to collect and analyze data. Think of this research design as a framework to identify information sources, data collection methods, sampling methodology, and research costs.
• Develop a sampling plan to understand the characteristics of a population and make a conclusion. Researchers define the sample population, population size, and choose a sampling method at this stage. Two commonly used sampling methods are as follows.

Types of sampling

• Probabilistic sampling selects samples from a population using the theory of probability. This sampling method is ideal for quantitative research and finding sampling errors after data collection.
• Non-probability sampling relies on a researcher’s subjective judgment to select data. This method offers an equal chance for all respondents to participate in the research and is ideal for qualitative research.
• Collect primary or secondary data depending on the research design or plan. Researchers use various data collection methods to find information on variables. This data further helps them to study and analyze the research problem.
• Process and analyze collected data. Data editing and coding help researchers to identify and remove data classification inconsistencies. Coding involves setting rules for data categorization and transfer. The analysis part attempts to discover similar data patterns and their logic.
• Prepare and present a conclusion. The final stage of the market research process interprets data analysis and presents findings through a report. Such reports ease executive decision-making with concrete data-backed evidence.

When to use market research?

Startups and prominent businesses use market research to understand their customers, measure business profitability, analyze the target market, and beat the competition. Companies conduct market research activities to:

• Evaluate product demand
• Test new products or services
• Assess business expansion opportunity
• Understand customer satisfaction levels
• Develop customer persona and test messaging
• Estimate overall business growth opportunities
• Get an inside look into customer experience (CX)
• Gauge product packaging and promotional decisions

The purpose of market research is to understand your customers to develop a one-of-a-kind product or service that fulfills their wants and needs. Researching the target market might require some extra digging, but following the steps below is an excellent place to start.

1. Identify your target audience(s)

The first step is to identify your target audience. Who do you think will benefit most from your product? Segment your target market into small groups based on location, demographics, personality traits, and buying behaviors. Because you are segmenting your audience on more than one quality, you’ll end up with more than one group to target, which is perfectly fine. You can create a persona from these audiences or develop a made-up person that might show interest in your business. This customer persona helps you hone in on the pains you’ll be relieving and gains you’ll be offering with your business.

2. Scope the competition

Researching your competition is arguably the most effective way to understand your market. Observing others in the same line of work helps you create a better marketing mix and overpower competitors. A business’s marketing mix includes four parts:

• Product: What is your competition selling? What are the benefits of the product? How can you make it better?
• Price: At what price are they offering their product? Are people willing to spend that much? Can you charge more for a luxury item or less for a cheaper version?
• Place: How is your competition reaching its customers? Is this channel effective? Or can you find a better way to connect with them?
• Promotion: How is your competition promoting its product? Where are they spending money on marketing wisely, and where are they wasting it?

3. Engage a portion of your persona

Once you have an idea of competitors, you'll want to focus on your audience. During this stage, you will conduct primary research to determine what your audience looks for in a product, why they find it valuable, and how it will benefit them. What's working for your product? What should you change? Should you scrap your idea and start over? Directly engaging with customers in this step is your best bet. Compile focus groups, send surveys, or use another market research method. We will go into more detail on those later. Your first goal will be to gather some demographic information. Ask customers their age, gender, income range, profession, education, and city of residence. Once you have that, you can ask more about their hobbies and interests and the associated goals and challenges they face daily. Then it's time to get down to business. Ask your audience about buying preferences, where they make purchases, and how often they buy a specific product. Have them go into detail about why they buy a particular product and ignore others.

4. Summarize data and draw conclusions

At this point, you’ve gathered a lot of data that’ll help you better understand the market. The last step is to organize your data and conduct customer data analysis to conclude your target audience so you can provide them with the best product, service, and messaging.

No matter what you do market research for, you’ll discover insights into your business and customers at the end. The research findings help you make informed decisions and unlock business growth. Let’s look at how companies benefit from market research activities.

• Stay ahead of the competition with a better understanding and perspective of your target market and audience.
• Minimize investment risks by evaluating new products, features, or services before launching them.
• Identify threats and opportunities to modify existing business plans, models, investments, or strategies.
• Spot emerging trends by taking a pulse of what’s hot and not in the market.
• Find business growth benchmarks to compare business revenue, productivity, and growth.

Market research challenges stem from Complex business dynamics, automation, and consumer data protection. Let’s take a sneak peek at how these challenges restrict the way researchers collect data and contribute to decision-making.

• The need for speed. Opinions change every day, and so do products. That’s why businesses can’t any longer wait for a month or more to get their hands on market research results. This need for agility pushes market research agencies to deliver quick turnaround times.
• Tight budget and automation are complicating how researchers design research and offer insights. The presence of multiple tools doesn’t necessarily streamline analysis. They instead add to training, ongoing support, and maintenance costs. That’s why you need a comprehensive platform so that you can do more with less.
• The human dimension is becoming more important in research. Today, organizations have more data available than ever and can make wrong interpretations and incorrect decisions. Market researchers’ expertise and skill are essential for companies to find real-time insights from unstructured data.
• Lack of focus on data curation is another challenge that organizations face. Analytics and data visualization software can produce many insights that may not offer concise answers to the problems at hand. That’s where data curation comes in to help businesses find the most relevant solutions for making better decisions.
• Consumer data protection is of utmost importance to any organization. This increasing need to maintain data privacy means organizations should look for credible and verifiable market research agencies that have robust data privacy protection policies in place.

Market research is the process of collecting, analyzing, and interpreting data about the viability of a product or service in a target market. Market researchers aim to understand the buying habits, behaviors, motivations of consumers to predict a potential target segment for a product or service. Marketing research goes behind finding a suitable market to sell your products. It investigates an organization’s marketing strategy. Organizations conduct marketing research to identify issues and gaps in existing marketing activities. Want to identify a market opportunity? Learn how to assess market opportunities to find their desirability.

Mary Clare Novak

Mary Clare Novak is a Content Marketing Specialist at G2 based in Burlington, Vermont, where she is currently exploring topics related to sales and customer relationship management. In her free time, you can find her doing a crossword puzzle, listening to cover bands, or eating fish tacos. (she/her/hers)

Explore More G2 Articles

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:

Continue Reading

What Are Consumer Insights? Meaning, Examples, Strategy

How Coca-Cola Collects Consumer Insights

Market Intelligence 101: What It Is & How To Use It

9 Top Consumer Insights Tools & Companies

Understanding Market Research: Methods, Benefits, and Best Practices

“I’ll rely on my gut to get all the insights I need. I don’t have the time to conduct research. When I’m done, I’m sure users will love my product,” said no researcher ever.

Imagine launching a product without really knowing what your customers want or who your competitors are. It sounds risky, right? That’s because it is. Successful businesses rely on market research to understand their audience, spot new opportunities, and make informed decisions. Market research is like a secret weapon, helping you gather and analyze data to see the big picture.

Knowing how to conduct market research is essential whether you’re a researcher, a marketer, or a business owner. It’s about gathering the correct information to understand your market, identify trends, and make smart choices.

What is Market Research

Market research is the process of gathering, analyzing, and interpreting information about a market, including details about the target audience, competitors, and the industry as a whole.

This research helps businesses understand market dynamics, identify opportunities, and make informed decisions.

Generally, market research focuses on

• Consumers : Understanding the target audience, including their needs, preferences, behaviors, and pain points, to tailor products and marketing strategies effectively.
• The Business : Analyzing internal factors such as product design, marketing, pricing, distribution, customer service, and sales processes to identify strengths and weaknesses.
• Competitors : Examining competitors’ offerings, strengths, and weaknesses to identify market gaps and develop strategies for gaining a competitive edge.
• The Industry : Analyzing industry trends, growth patterns, and regulatory changes to anticipate future changes and identify opportunities for growth and innovation.

Importance of Market Research

Market research isn’t just about collecting data; it’s about understanding the bigger picture and making informed decisions.

Here are some of the key reasons why you should conduct market research

Understanding the Market

Before you can succeed, you need to know your playing field. Market research helps you grasp the size and potential of your market. You can identify trends and growth opportunities by analyzing market statistics and economic indicators. This knowledge is crucial for positioning your business and spotting areas where you can thrive.

Identifying Customer Needs

Knowing your target customers is vital. Market research helps you dive into the demographics and psychographics of your audience, uncovering their pain points, preferences, and buying habits. This understanding allows you to tailor your products or services to meet their needs effectively, ensuring higher customer satisfaction.

Competitive Analysis

Staying ahead of the competition requires more than just knowing who they are. Market research provides insights into your competitors’ strengths, weaknesses, market positioning, and strategies. This competitive analysis enables you to identify gaps in the market and develop strategies to gain a competitive advantage.

Effective Marketing Strategies

Market research provides insights into the most effective ways to reach your target audience. By understanding what resonates with your customers, you can craft marketing messages and campaigns more likely to engage and convert. This helps you allocate your marketing budget more efficiently and achieve better results.

Identifying Opportunities

By identifying new market segments and future trends, market research helps you uncover opportunities for growth and innovation. This proactive approach allows you to stay ahead of the curve and seize new business opportunities before your competitors do. It can also reveal gaps in the market that your business can fill, leading to increased market share and profitability.

Market Research Methods

Qualitative methods.

Qualitative research methods are used in market research to gather detailed, non-numerical data about consumer attitudes, motivations, and behaviors. These methods help you understand the deeper reasons behind consumer choices and preferences.

For instance, through focus groups and in-depth interviews, you can explore how customers feel about a new product concept, uncover their pain points, and gather feedback on potential improvements. The aim is to gain a rich, nuanced understanding of your target audience beyond what numbers alone can tell you.

Quantitative Methods

Quantitative research involves collecting and analyzing numerical data to identify patterns and measure variables within your market. In market research, surveys are commonly used to gather data about their buying habits, preferences, and demographics from a large sample of respondents.

Statistical analysis of this data can reveal trends and correlations that inform your marketing strategies and business decisions. The goal is to obtain measurable, generalizable data to predict consumer behavior and market trends.

Observational Methods

Observational research in market research involves watching and recording how consumers interact with products and services in real-life settings. This method helps you understand actual consumer behavior without the bias that can come from self-reported data.

For example, you might observe how customers navigate a retail store or use an app. The aim is to gather objective insights into how products are used and identify areas for improvement in the user experience.

Types of Market Research

Market research can be broadly categorized into two main types: primary research and secondary research. Each type provides unique insights into the market and can be further divided into qualitative and quantitative research , which we discussed in the previous section.

Primary Research

Primary research involves collecting data directly from the source. This type of research is tailored to specific research questions or objectives, providing highly relevant and current data.

Exploratory Primary Research

Exploratory primary research is conducted to explore a problem or a topic when there are no or few earlier studies to refer to. It helps to identify key issues, variables, and hypotheses. This type of research is typically qualitative, aiming to gather insights and understanding rather than to test specific hypotheses.

Interviews involve direct, one-on-one conversations with individuals to gather in-depth information. For example, if you’re developing a new service, you might interview a select group of potential users to explore their experiences, challenges, and expectations.

These qualitative insights provide a deeper understanding of your target customers’ needs and how your service can meet them.

Focus Groups

Focus groups bring together a small group from your target market to discuss a product, service, or topic. Suppose you’re considering a rebrand and want feedback on new logo designs.

By conducting a focus group, you can observe participants’ reactions and hear their thoughts, giving you qualitative data on how different designs are perceived and which resonates best with your audience.

Observational Research

Observational research involves watching how people behave in natural settings. If you’re a retailer, you might observe customers in your store to see how they interact with displays and products. This can reveal insights into shopper behavior and preferences, helping you optimize store layout and product placement to enhance the shopping experience.

Specific Primary Research

Specific primary research is more focused and aims to answer particular questions or test specific hypotheses. This type of research often involves quantitative methods and provides precise data that can be used to make informed decisions.

Surveys are one of the most common methods of primary research. Imagine you’re launching a new product and want to know what features your target market values most. You could create a survey asking potential customers about their preferences, needs, and buying habits.

This quantitative data helps you understand the most important features and this guides product development and marketing strategies.

Statistical Analysis

Statistical analysis in market research involves applying mathematical techniques to interpret numerical data. It helps uncover patterns, relationships, and trends. Here’s how it’s used:

• Descriptive Statistics : Summarizes data to provide an overview. For example, calculating the average customer satisfaction score from survey responses.
• Inferential Statistics : Makes predictions about a population based on a sample. For instance, predicting overall market preferences from a survey of a target audience.
• Correlation Analysis : Identifies relationships between variables. For example, finding a correlation between customer age and product preference.
• Trend Analysis : Examines data over time to identify trends. For example, analyzing sales data to forecast future demand.
• Segmentation Analysis : Divides the market into distinct groups. For example, segmenting customers based on purchasing behavior to tailor marketing strategies.

Secondary Research

Secondary research involves analyzing existing data that others have already collected. This type of research is useful for gaining a broad understanding of market conditions and identifying trends without the time and expense of primary data collection.

Reports and Studies

Analyzing reports and studies from industry sources, research firms, and government agencies can provide valuable secondary data. For instance, reviewing existing market research reports can help you understand the overall market size, growth potential, and key players if you’re entering a new market. This information can guide your market entry strategy and competitive positioning.

Online Databases

Online databases, such as academic journals, industry publications, and market research databases, offer a wealth of information. Suppose you’re a startup looking to understand consumer behavior trends.

In that case, you can access these resources to gather relevant data on market dynamics, customer preferences, and competitive analysis, helping you make informed decisions without conducting your studies.

Historical Data

Historical data involves looking at past performance and trends to predict future market conditions. For example, a company might analyze its sales data from previous years to forecast future demand and plan inventory accordingly. This helps businesses identify patterns and make informed predictions about future market behavior.

Competitive analysis involves researching your competitors through their websites, marketing materials, and public reports. If you’re planning a new product launch, studying your competitors’ offerings, pricing strategies, and customer reviews can provide insights into what works and what doesn’t. This helps you differentiate your product and develop strategies to gain a competitive edge.

Combining Primary and Secondary Research

Combining  primary and secondary research methods is often beneficial for a comprehensive market understanding.

Primary research provides specific, current insights tailored to your needs, while secondary research offers a broader context and background information. They create a well-rounded market view, helping you make informed decisions and develop effective strategies.

How to Conduct Market Research

Define your goals.

The first step in conducting market research is to define your goals. What do you want to achieve with your research? Are you looking to understand customer needs, evaluate market trends, or analyze the competition? Clear objectives will guide your research and ensure you collect relevant data.

For example, imagine you’re planning to launch a new product. Your goal might be to understand what features potential customers value most. By setting this specific objective, you can focus your research on gathering data that directly inform your product development.

Here are some of the questions you want to ask when defining your goals

• Who is my target audience?
• What are the key characteristics of my target customers?
• What are my customers’ needs, preferences, and pain points?
• What is the size and potential of my market?
• What are the current market trends and future predictions?
• Who are my main competitors, and what are their strengths and weaknesses?
• What factors influence my customers’ purchasing decisions?
• How do my customers perceive my brand and products?

Choose Your Market Research Methods

Once you have your goals, it’s time to choose your research methods. Depending on your objectives, you might use qualitative methods like interviews and focus groups to get in-depth insights or quantitative methods like surveys and statistical analysis to gather numerical data.

Suppose you want to explore customer preferences in-depth. You might start with qualitative methods like conducting interviews or focus groups to gather detailed feedback. Then, follow up with a quantitative survey to validate your findings and get a broader perspective.

Collect Data

With your methods chosen, the next step is data collection. This involves gathering information from your target audience using your selected methods. This could mean conducting surveys, interviews, or focus groups for primary research. Secondary research might involve analyzing existing reports, online databases, or historical data.

Imagine you’re a retailer looking to understand customer shopping habits. You might conduct an online survey asking customers about their preferences, shopping frequency, and favorite products. At the same time, you could analyze existing market reports to see broader shopping trends and economic indicators.

Analyze Data

After collecting the data, the next step is to analyze it. This involves looking for patterns, trends, and insights that can inform your business decisions. This might mean using statistical tools to identify significant trends for quantitative data. Qualitative data could involve coding responses and identifying common themes.

For instance, if your survey results show that many customers prefer online shopping over in-store visits, consider optimizing your e-commerce platform . If interviews reveal that customers value personalized service, you might focus on training staff to provide a more tailored shopping experience.

Implement Findings

The final step is to implement your findings. Use the insights from your research to make informed decisions and develop strategies. Whether launching a new product, entering a new market, or adjusting your marketing strategy, the data you’ve gathered should guide your actions.

Let’s say your market research indicates a growing trend in eco-friendly products. You might introduce a line of sustainable products to meet this demand. You could also adjust your marketing messages to highlight the environmental benefits of your products, aligning with customer values.

According to Zora Neale Hurston, “Research is formalized curiosity. It is poking and prying with a purpose.” Imagine setting off on a road trip without a map. You might get somewhere, but you’ll likely hit dead ends and waste time. Market research is like your business’s GPS, guiding you with data-driven insights from interviews, surveys, etc. Whether you’re launching a new product, entering a new market, or getting a better grip on your current one, market research is your secret weapon. Dive in, gather those valuable insights, and make the most of them.

Related Posts

E-Commerce Funnel Optimization for Customer Journey

A/B Test Segmentation: How To Do It Right

• Session Recordings
• Knowledge Base

Type above and press Enter to search. Press Esc to cancel.

How to Do Market Research: A Comprehensive Guide for 2024

• by Alice Ananian
• September 4, 2024

Imagine launching a product that flies off the shelves or watching a marketing campaign go viral. Now, picture the opposite: a product launch met with crickets or an ad campaign that falls flat. The difference between these scenarios often boils down to one critical factor: market research. In the high-stakes business world, it’s not just a tool—it’s your secret weapon. Whether you’re a startup founder, product developer, or marketing professional, mastering market research can be your ticket to business success.

This comprehensive guide is your roadmap to conducting market research that doesn’t just inform—it transforms. We’ll dive deep into the art and science of understanding your market, from defining research objectives to analyzing data and implementing game-changing insights. By the time you finish reading, you’ll be armed with the knowledge to make decisions that aren’t just informed but inspired. Ready to turn market research into your competitive edge? Let’s dive in.

What is Market Research?

Market research is the systematic process of gathering, analyzing, and interpreting information about a target market, competitors, and the overall business environment. It’s the foundation upon which successful business strategies are built, providing crucial insights that inform decision-making across all aspects of an organization.

The importance of market research for businesses cannot be overstated. It reduces risk, identifies opportunities, and ensures that products and services align with customer needs.

Key benefits of conducting market research include:

• Identifying market opportunities and threats
• Understanding customer needs and preferences
• Evaluating competitive landscape
• Optimizing marketing strategies
• Forecasting market trends
• Improving product development
• Enhancing customer satisfaction
• Making data-driven business decisions

Ask the Right Users at the Right Time

Types of Market Research

The main divisions of market research types are primary vs. secondary and quantitative vs. qualitative. Let’s take a look at how they differ. 

Primary vs. Secondary Research

Market research can be categorized into two main types: primary and secondary research.

Primary research involves collecting original data directly from sources such as customers, competitors, or industry experts. This type of research is tailored to your specific business needs and provides up-to-date, relevant information.

Secondary research , on the other hand, involves analyzing existing data from published sources such as industry reports, government statistics, or academic studies. This type of research is often quicker and less expensive than primary research.

For example, a company launching a new fitness app might conduct primary research by surveying potential users about their exercise habits and app preferences. They might also perform secondary research by analyzing reports on the fitness app market and user demographics from industry publications.

Qualitative vs. Quantitative Research

Another important distinction in market research is between qualitative and quantitative methods.

Qualitative research focuses on gathering non-numerical data to understand motivations, opinions, and attitudes. It often involves open-ended questions and in-depth exploration of topics. Examples include:

• In-depth interviews

Focus groups

• Observational studies

Quantitative research , in contrast, deals with numerical data and statistical analysis. It aims to quantify opinions, behaviors, or other defined variables. Examples include:

• Surveys with closed-ended questions
• Sales data analysis
• Website analytics

To illustrate the difference, consider a company researching customer satisfaction. A qualitative approach might involve conducting in-depth interviews to understand the reasons behind customer satisfaction or dissatisfaction. A quantitative approach could involve sending out a survey asking customers to rate their satisfaction on a scale of 1 to 10 and analyzing the resulting numerical data.

Step-by-Step Guide: How to Do Market Research

Market research is a crucial process that helps businesses understand their target audience, assess market conditions, and make informed decisions to drive success.

1. Define your research objectives with precision

Gain clarity on the purpose of your market research. Are you exploring customer tastes and trends, testing the appeal of a new product or service, or gauging the size and potential of your market? Your research goals should be clearly defined, as they form the foundation of your entire research project.

2. Identify your target audience accurately

Figure out who holds the keys to the information you need. Is it your existing clients, potential customers, or particular demographic segments? Correct audience identification is key to gathering reliable and relevant data.

Pro Tip: If you’re struggling to pinpoint your target audience, use Prelaunch’s Customer Clusters to quickly identify and segment your potential customers based on real data. This powerful tool helps you uncover key demographic and psychographic insights.

3. Choose the most suitable research methods

The methodology should match your objectives and chosen audience. Whether it’s primary or secondary, qualitative or quantitative, or a mixture of all, your research methods should adequately serve your research needs.

4. Develop a well-defined research plan

A comprehensive plan streamlines your research process. It includes the timeline for your research, budget allocation, individual method approaches, how you’ll obtain participants, the type of questions you’ll pose, and your data collection and analysis methods. A robust research plan ensures the effectiveness of your research.

5. Collect extensive and valuable data

Implement your research plan and gather data via surveys, interviews, focus groups, or any other methods you’ve chosen. It’s essential to collect a rich and varied data set to unearth meaningful insights.

6. Analyze and interpret the data proficiently

Leverage suitable analytical tools and techniques to dissect your data. Search for patterns, trends, and valuable insights that speak to your research objectives. This is where the true value of your research begins to emerge. It’s also where market segmentation comes into play.

7. Present your findings professionally

Transform your raw data into a comprehensive, easy-to-understand report. Use visual aids such as charts and graphs to represent your data effectively, making it easily digestible for the reader.

8. Make smart, data-driven decisions

The crux of your market research is the action you take based on your findings. Use the insights from your research to form your business strategies and decisions. Keep in mind, the true power of market research is not just in the gathering of data but in its strategic application.

Market Research Methods

Surveys and questionnaires.

Surveys and questionnaires stand as versatile tools in market research. They have the potential to collect both qualitative and quantitative data from a large number of respondents, helping to grasp a broad understanding of consumer behavior and trends.

In-depth interviews provide detailed insights into individual opinions and experiences and capture the nuances of personal perspectives. Whether structured, semi-structured, or unstructured, each approach unfolds layers of consumer thought processes, enhancing your strategic decisions.

Pro tip: Want the inside scoop on what your future customers really think? Try Prelaunch’s AI-powered in-depth interviews feature! Chat with folks who’ve already shown interest in your product, and let the AI do the heavy lifting of analyzing all that juicy feedback. You’ll get neat customer segments and spot-on suggestions to make your product even better. It’s like having a crystal ball for your launch, but way more fun (and actually useful)!

Focus groups involve guided discussions with small groups of participants, a unique approach that allows for the exploration of group dynamics and collective opinions. This method provides a window into communal responses to products or services and their varying influences within a shared context.

Observational research

Observational research, the subtle art of watching and recording how consumers interact with products or services in real-world settings, can reveal intricacies of consumer behavior that other methods might overlook.

Experimental research

The experimental research method, a systematic approach of manipulating variables to test cause-and-effect relationships, has a vital role in progressing aspects such as product development or pricing strategies.

Content analysis

Content analysis involves systematically analyzing communications like social media posts, customer reviews, or competitor marketing materials. This method offers a deep dive into the public perception and discourse surrounding your brand.

Social media listening

Social media listening carries an importance more than ever in this digital age. Monitoring social media platforms for mentions of your brand, competitors, or industry-related topics can help you keep your finger on the pulse of market sentiment.

Competitive analysis

Competitive analysis, a comprehensive research into your competitors’ strategies, strengths, and weaknesses, enables you to identify opportunities and threats in the market, and to build benchmarking standards for your brand.

Pro tip: Try using the Prelaunch AI Market Research tool that quickly gives you a summary of what people think of your competitors’ products based on their comment and feedback on Amazon.com. Simply find the Amazon product links, copy-paste and presto! 

Tools and Resources for Market Research

This is a comprehensive listing of all the tools and resources you’ll need to conduct effective market research.

Survey Tools

• SurveyMonkey : An online survey platform that allows users to create, distribute, and analyze surveys to gather feedback and insights
• Google Forms : A free tool for creating customizable surveys and forms to collect data and responses easily.
• Typeform : A versatile survey and form-building tool designed to create engaging and interactive questionnaires.

Social Media Analytics

• Hootsuite : A social media management platform that schedules posts, monitors social media activity, and provides analytics.
• Sprout Social : A social media management and analytics tool that helps businesses manage their social media presence and engage with audiences.
• Brandwatch : A social listening and analytics tool that provides insights into brand perception and market trends through social media data.

Website Analytics

• Google Analytics : A free web analytics service that tracks and reports website traffic, user behavior, and conversion metrics.

Market Research Databases

• Statista : A statistics portal that provides access to a wide range of industry, market, and consumer data.
• IBISWorld : A market research database offering detailed industry reports and insights into market trends and forecasts.
• MarketResearch.com : A platform that provides access to a vast array of market research reports and industry insights.

Customer Relationship Management (CRM) Software

• Salesforce : A comprehensive CRM software that manages customer relationships, sales, and marketing activities.
• HubSpot : A CRM and inbound marketing platform that integrates tools for managing contacts, marketing automation, and sales.

Concept Testing Platforms

• Prelaunch : Allows you to validate product concepts quickly and efficiently, gathering valuable market feedback before full-scale launch.

Professional Market Research Services

• Nielsen : A global measurement and data analytics company providing insights into consumer behavior and media consumption.
• Ipsos : A market research firm that offers data and insights on consumer behavior, market trends, and public opinion.
• Kantar : A global data, research, and consultancy company providing insights into consumer behavior and market dynamics.

Real-World Examples of Successful Market Research

To help provide you with some context of just how integral market research is, we’ve compiled some real-world examples. 

Starbucks – Building a Brand on Customer Insights

Starbucks, the global coffeehouse chain, is a prime example of a company that has leveraged market research to build a strong brand. Their success story revolves around understanding their customers deeply and tailoring their offerings accordingly.

• Understanding the Customer: Starbucks began by conducting extensive market research to identify the needs and preferences of their target audience. They discovered that customers were seeking more than just coffee; they wanted an experience.
• Creating a Unique Experience: Based on their research, Starbucks focused on creating a welcoming atmosphere, offering high-quality coffee, and providing excellent customer service. This emphasis on experience differentiation set them apart from competitors.
• Iterative Research and Development: Starbucks continuously conducts market research to refine their offerings. They gather customer feedback through surveys, social media listening, and in-store observations. This data helps them introduce new products, adjust pricing, and optimize store layouts.
• Loyalty Program and Personalization: Starbucks’ loyalty program, My Starbucks Rewards, is a testament to their commitment to customer-centricity. By collecting detailed information about customer preferences, they can offer personalized recommendations, rewards, and promotions.

Netflix – Data-Driven Content Strategy

Netflix, a global streaming service, has mastered the art of using data to inform its content strategy.

• Analyzing Viewing Habits: Netflix collects vast amounts of data on viewer behavior, including what they watch, when they watch, and how they interact with content. This data provides insights into viewer preferences and trends.
• Content Recommendation Engine: Netflix’s recommendation algorithm is powered by data analysis. By understanding individual preferences, the platform can suggest shows and movies that are likely to be enjoyed by each user.
• Original Content Development: Netflix uses data to identify potential hits for original content. By analyzing viewer data, they can identify popular genres, themes, and actors, which helps them develop shows that are more likely to be successful.

These examples demonstrate the power of market research in driving business success. By understanding customers, identifying market trends, and making data-driven decisions, companies can create products and services that resonate with their target audience, build strong brands, and achieve sustainable growth.

Common Market Research Mistakes and How to Avoid Them

When conducting market research, it’s crucial to be aware of potential pitfalls that can undermine the effectiveness of your findings. Here are some common mistakes to avoid:

Insufficient sample size is a common error that can undermine your market research efforts. Ensuring your sample size is large enough to be statistically significant and truly representative of your target population is paramount. It’s crucial to use an appropriate sample size to generate reliable findings that can guide your decision-making processes.

Leading questions in surveys is another frequent mistake. It’s vital to frame your questions neutrally to prevent biasing responses. This involves careful crafting and review of your questions to identify and eliminate potential bias. Consider having your questions reviewed by neutral parties to ensure their impartiality.

Ignoring secondary research can be damaging to your research efforts. Existing data sources can provide invaluable insights and should not be overlooked. It’s advisable to start your research process with secondary research to inform the design of your primary research. This could provide valuable context and save time and resources.

Misinterpreting data can lead to faulty conclusions and misguided strategies. It’s crucial to be cautious when interpreting your research findings. Consider all possible explanations, and don’t hesitate to seek expert help if needed. Always remember, data is only as good as the interpretations made from it.

Neglecting ongoing research is a mistake that can make your business strategy outdated. Market conditions are constantly changing, and your research should reflect this. Implementing regular research practices can help you stay updated on market trends and customer needs, keeping your business strategy relevant and effective.

The Future of Market Research

The landscape of market research is experiencing a rapid metamorphosis fostered by technological innovations and the shifting patterns of consumer behaviors. Here we delve deeper into these transformative trends:

Artificial Intelligence and Machine Learning : These technologies are revolutionizing the data analysis process. AI and Machine Learning algorithms can comb through enormous data volumes at lightning speed, unearthing intricate insights that would be arduous to glean manually, thus transforming the efficiency and depth of market research.

Comprehensive Concept Validating Software: As you can see in the Tools and Resources section above, there are several platforms available for any and all steps that go into conducting market research. One trend worth noting is that more and more, companies will seek to use tools that have an all-in-one approach so they don’t have to worry about syncing their data across multiple spaces. Trailblazing platforms like this include Prelaunch that give any creator the power to digitally test an idea before spending millions on prototyping and manufacturing.

Big Data : The escalating accessibility of vast data sets is shedding new light into consumer behavior and market trends. By analyzing this big data, researchers can gauge detailed market patterns, predict future trends, and make more informed decisions, thereby fostering a deeper understanding of the marketplace.

Mobile Research : The omnipresence of smartphones has triggered a shift towards mobile-first research methodologies. These enable researchers to connect with consumers on devices they use daily, thereby collecting real-time data and gaining more authentic and complete insights into consumer behavior.

Virtual and Augmented Reality : The advent of these cutting-edge technologies has ushered in an era of new possibilities for product testing and consumer behavior studies. VR and AR can create immersive, realistic environments where consumers can interact with products or services, offering rich, multidimensional data for market researchers.

Ethical Data Collection : Amid growing concerns around data privacy, the future of market research hinges on transparent and ethical data collection. Ensuring that data is obtained through fair practices and used responsibly is becoming paramount, as trust becomes a crucial factor in consumer relations.

Speculations indicate that the market researchers of the future will have to proficiently meld traditional research methods with emerging technologies. The emphasis will be on agility and a commitment to continued learning to keep abreast with the swiftly evolving markets.

Market Research Takeaways

Market research is a powerful tool that can drive business success by providing crucial insights into your market, customers, and competitors. By following the steps outlined in this guide and leveraging the appropriate tools and methods, you can conduct effective market research that informs your business strategies and decision-making processes.

Remember, good market research is an ongoing process. Markets are constantly evolving, and staying ahead requires continuous learning and adaptation. Whether you’re validating a new product concept, optimizing your marketing strategies, or exploring new market opportunities, make market research an integral part of your business practices.

Ready to put your market research skills into practice? Start by defining your research objectives and planning your first study. And if you’re looking to validate a new product or service concept quickly and efficiently, consider using Prelaunch.com. With its powerful concept testing capabilities, Prelaunch can help you gather valuable market feedback and set your business on the path to success.

Happy researching!

Alice Ananian

Alice has over 8 years experience as a strong communicator and creative thinker. She enjoys helping companies refine their branding, deepen their values, and reach their intended audiences through language.

Related Articles

11 New Product Ideas That Revolutionize Industries

• by Dikran Seferian
• April 15, 2024

Quantitative Market Research: Fundamentals, Methods, and Applications

• August 16, 2024

• Onsite training

3,000,000+ delegates

15,000+ clients

1,000+ locations

• KnowledgePass
• Log a ticket

01344203999 Available 24/7

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.

Exclusive 40% OFF

Training Outcomes Within Your Budget!

We ensure quality, budget-alignment, and timely delivery by our expert instructors.

Share this Resource

• Content Marketing Course
• Copywriting Course
• Introduction to Marketing Training
• Social Media Marketing Course

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.

Learn to create interesting content with our Content Marketing Course – join today!

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.

Learn essential marketing principles for business growth with our Introduction to Marketing Training – join today!

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.

Discover the in-depth analysis behind buying decisions - join our Marketing Courses today and gain a competitive edge! 

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.

The Knowledge Academy takes global learning to new heights, offering over 30,000 online courses across 490+ locations in 220 countries. This expansive reach ensures accessibility and convenience for learners worldwide.

Alongside our diverse Online Course Catalogue, encompassing 17 major categories, we go the extra mile by providing a plethora of free educational Online Resources like News updates, Blogs , videos, webinars, and interview questions. Tailoring learning experiences further, professionals can maximise value with customisable Course Bundles of TKA .  

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.  

Upcoming Digital Marketing Resources Batches & Dates

Fri 20th Sep 2024

Fri 15th Nov 2024

Fri 24th Jan 2025

Fri 28th Mar 2025

Fri 23rd May 2025

Fri 25th Jul 2025

Fri 26th Sep 2025

Fri 28th Nov 2025

Get A Quote

WHO WILL BE FUNDING THE COURSE?

My employer

By submitting your details you agree to be contacted in order to respond to your enquiry

• Business Analysis
• Lean Six Sigma Certification

Share this course

Our biggest summer sale.

We cannot process your enquiry without contacting you, please tick to confirm your consent to us for contacting you about your enquiry.

By submitting your details you agree to be contacted in order to respond to your enquiry.

We may not have the course you’re looking for. If you enquire or give us a call on 01344203999 and speak to our training experts, we may still be able to help with your training requirements.

Or select from our popular topics

• ITIL® Certification
• Scrum Certification
• ISO 9001 Certification
• Change Management Certification
• Microsoft Azure Certification
• Microsoft Excel Courses
• Explore more courses

Press esc to close

Fill out your  contact details  below and our training experts will be in touch.

Fill out your   contact details   below

Thank you for your enquiry!

One of our training experts will be in touch shortly to go over your training requirements.

Back to Course Information

Fill out your contact details below so we can get in touch with you regarding your training requirements.

* WHO WILL BE FUNDING THE COURSE?

Preferred Contact Method

No preference

Back to course information

Fill out your  training details  below

Fill out your training details below so we have a better idea of what your training requirements are.

HOW MANY DELEGATES NEED TRAINING?

HOW DO YOU WANT THE COURSE DELIVERED?

Online Instructor-led

Online Self-paced

WHEN WOULD YOU LIKE TO TAKE THIS COURSE?

Next 2 - 4 months

WHAT IS YOUR REASON FOR ENQUIRING?

Looking for some information

Looking for a discount

I want to book but have questions

One of our training experts will be in touch shortly to go overy your training requirements.

Your privacy & cookies!

Like many websites we use cookies. We care about your data and experience, so to give you the best possible experience using our site, we store a very limited amount of your data. Continuing to use this site or clicking “Accept & close” means that you agree to our use of cookies. Learn more about our privacy policy and cookie policy cookie policy .

We use cookies that are essential for our site to work. Please visit our cookie policy for more information. To accept all cookies click 'Accept & close'.

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.

Try Userpilot and Take Your Product Marketing to the Next Level

• 14 Day Trial
• No Credit Card Required

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.

Leave a comment Cancel reply

Save my name, email, and website in this browser for the next time I comment.

Get The Insights!

The fastest way to learn about Product Growth,Management & Trends.

The coolest way to learn about Product Growth, Management & Trends. Delivered fresh to your inbox, weekly.

The fastest way to learn about Product Growth, Management & Trends.

You might also be interested in ...

What are vanity metrics in product marketing definition & examples.

Aazar Ali Shad

What is Customer-led Marketing & Growth? + Best Practices

9 marketing research methods to refine your marketing strategy.

Saffa Faisal

• Solutions Corporate Market Analysis Customer Experience Product Lifecycle Brand Strategy Research & Insights Higher Education Enrollment Management Academic Program Development Student Success Operations & Finance Advancement Marketing Grants Research & Insights K-12 Education Curriculum and Instruction Diversity, Equity, and Inclusion Academic Program Planning and Impact Strategic Planning Teacher Recruitment and Retention Operational Planning School Climate Research & Insights
• Data Analysis
• Qualitative Research
• Strategic Advising
• Benchmarking & Best Practices
• Market Modeling
• Research & Insights By Industry Corporate Higher Education K–12 Education By Type Insights Blog Reports & Briefs Case Studies Webinars All Research & Insights
• Client Testimonials
• Careers Overview
• Current Openings
• Recruitment Process
• Social Impact
• Careers in Research
• Careers in Sales and Account Management
• Diversity, Equity, and Inclusion
• Client Login

Table of Contents

Everything you want to know about market research.

Nearly 80% of businesses conduct market research to gather targeted insights into their performance, customers, industry, and competition.

While market research offers a variety of benefits, it can be challenging to identify what research to conduct, and when to ensure you get accurate and actionable data for your business decisions.

To cut through information overload and discover how market research can help you, we are breaking down the basics of market research, including what it is, what you can learn, potential benefits, and how to get started.

What is market research?

Market research is the process of collecting, analyzing, and interpreting data about your target market, competitors, and industry. Market research spans a wide range of topics, uncovering insights on various elements that can impact a business. 

Some common subjects of market research include:

• Customer needs, preferences, and behaviors
• Market trends, competitors, and growth opportunities
• Brand awareness, perception, and evaluation amongst competitors
• Product performance, strengths and weaknesses, and customer evaluations

Why do companies conduct market research?

There is a wealth of insights   and benefits  provided by market research, but at its core, the purpose and value of market research is that it helps you make informed decisions by:

Understanding the Market

Market research provides in-depth insights, allowing companies to better understand the market, identify customers’ needs and preferences, discover how their brand is perceived in the market, and measure the impact of investments and strategies.

Identifying Opportunities

Market research spots untapped opportunities for companies to focus on, including how to improve their brand status, identify new customer bases and markets to sell to, and provide insights to help senior leadership prioritize investment opportunities.

Uncovering Risks

Market research also reveals potential risks that, if ignored, can cause considerable damage. This includes insight into competitors, the impact of major challenges or economic influences (i.e., COVID-19, heightened regulatory concerns), and negative perceptions of the company and its brands.

What types of companies use market research?

All types of businesses use market research, Including B2B ( 77% of companies ), B2C (82%), and B2B2C (83%). 

While they conduct research at similar rates, the types of questions they ask are driven by the unique challenges each type of business faces. For example, over half of B2B companies conducted a market share analysis last year, while B2C and B2B2C companies’ top project was evaluating customer satisfaction.

Find out how Hanover can help collect and analyze the data you need for better business decisions.

• Hanover Research Corporate Solutions

What can you learn from market research?

Anything. One of the biggest values of market research is how you can customize your research to gather the insights you need most. Below are some common examples of insights you can learn through market research.

Understand the Market

• Identify and prioritize markets for exploration and entry.
• Identify and build in-depth comparative profiles for your biggest competitors in the market.
• Understand market dynamics and identify potential factors, innovations, and trends that might impact your company.

Optimize Products and Services

• Generate new product ideas or optimize existing products.
• Develop an optimized pricing strategy.
• Evaluate how customers perceive and use your products and services.
• Identify any sales and service gaps or unmet customer needs.

Strengthen Brand Strategy

• Measure and track the strength of your brand and competing brands.
• Measure and improve brand health.
• Evaluate marketing and sales approaches to align with customer needs and preferences.

Understand Customers

• Understand the needs and preferences of your target customers.
• Identify crucial components of the customer experience. including unmet needs, pain points and levels of satisfaction.
• Differentiate customers into targetable segments based on behavioral, attitudinal, demographic, and psychographic data.

What are the most common market research projects?

The most popular market research projects can vary slightly over time, often reflecting market, economic, and societal shifts that impact company performance. Last year, with a focus on expanding to new markets and obtaining new customers, leading projects were analyzing customer satisfaction and needs , evaluating the market and identifying current and upcoming market trends , and measuring the strength of their brand equity .

This year, with inflation affecting customers’ buying power and increased production and resource costs, companies have expressed increased interest in price sensitivity research , making it the fifth-most common market research project. Increased uncertainty has also prompted companies to evaluate sales and renewal performance with win loss analysis projects increasing by 19%. 

Most Common Research Projects

How do you know you need market research?

With endless possibilities for insights, it can be hard to figure out where to start. To identify the type of market research you need, examine your top business priorities and determine if they could benefit from new data and insights. 

Ask yourself these two questions.

• Do you have the information you need to accomplish your goals?
• Is that data comprehensive and recent?

If the answer to either is no, your strategies will benefit from updated research insights.

Need help convincing your executive team to invest in market research?

You can find more stats on the use and impact of market research in our recent study.

• The State of Market Research

When should you conduct market research?

Companies usually conduct market research for one of three reasons: In response to a triggering event, to evaluate past performance, or to measure changes over time and quickly respond to declined performance.

Market Research Triggers

There are a variety of triggering events that prompt businesses to conduct research. Some common situations include:

• Evaluating the impact of external influences (economic factors, political shifts, etc.,)
• Understanding and adjusting to shifting customer needs
• Entering new markets
• New or increased competition
• Developing new products or features
• Merging or acquiring a new company

Evaluating Past Performance

In addition to conducting research to inform upcoming strategies or overcome pressing challenges, companies also conduct market research to evaluate the success of recent strategies or determine the reason for recent declines in performance. Market research allows companies to measure performance and identify areas of improvement. This can include anything from evaluating the performance of recent product launches, assessing the impact of recent sales and marketing strategies, or measuring the impact of recent pricing or service changes.

Recurring Assessments

The final instance of market research is recurring research. Companies conduct recurring research to ensure data is relevant, to evaluate performance over time, and to quickly identify and respond to changes in performance. For example, some companies periodically measure their brand health including brand awareness, perception, and evaluation against their competitors. By consistently assessing their brand health, these companies have updated insights into their presence in the industry, how customers evaluate them, and potential threats from competitors.

How often should you conduct market research?

How much research you should conduct depends on your unique business needs and strategies. Often, the amount you conduct is determined by the market research triggers we mention above. If you are launching a new product, breaking into a new market or customer base, or have noticed a decline in performance, you should conduct market research to address these needs as they arise.

Most businesses conduct multiple market research projects a year depending on their needs and resources. Over 80% of companies conduct market research frequently, and 79% conduct at least five market research projects a year.

Get customized research, expert support, and targeted insights to solve your organization’s needs.

• Hanover Research Expertise

Value of market research

What roi can you expect from market research.

In addition to successful key initiatives, companies that conduct market research say it provides an ROI of over four times the cost.

What challenges does market research address?

The insights market research provides are directly related to businesses’ biggest challenges. In our State of Market Research report , we asked respondents what their company’s biggest challenges were. In addition, we also asked respondents how their companies have benefited from market research findings. 

We found that the benefits they attributed to market research directly addressed their biggest reported challenges. Even those who did not report having a specific challenge reported market research insights helped them accomplish their goals.

What are the benefits of effective market research?

There are a variety of benefits of market research depending on the specific research you conduct.

Market research can benefit your company by helping you:

Companies that leverage market research insights into their strategies are also able to accomplish their goals at a higher rate than those without market research insights.

Companies that conduct market research are:

Discover how Rheem leveraged customer insights to build its sustainability strategy.

• Rheem Measures Homeowner and Contractor Demand for Sustainability

Market research KPIs

Some common KPIs based on the focus of the research can include:

Brand-focused

• Brand recall and recognition
• Brand perception
• Brand preference
• Net promoter score (NPS)

Customer-focused

• Customer retention and churn
• Customer satisfaction (CSAT)
• Cost per acquisition

Product-focused

• Product appeal
• Willingness to pay
• Future purchase consideration
• Post-purchase satisfaction

Market-focused

• Share of market
• Competitive benchmarks
• Total addressable market
• Market demand

How do you evaluate the success of market research?

Market research is successful if the resulting data is accurate, representative, and informative. Accurate data means the data has been cleaned and is a valid response to the study questions. Representative means that the data reflects the target market and is comprehensive. Finally, informative means the data provides insight and is actionable.

See how market research can help you with these key market research stats.

• Market Research Stats You Need to Know

How to perform market research

What are the common market research methods .

There are four main types of market research.

Quantitative Data Analysis

Data analytics involves collecting and analyzing large sets of existing data to uncover patterns and predict future outcomes. These data sets can include information like customer behavior data or historical sales data that allows companies to analyze their current performance and model potential scenarios and outcomes. 

By leveraging existing data, data analytics provides companies with an objective view of the situation, allowing them to identify gaps and discern trends.

Quantitative Survey Research

Surveys pose a set of questions to a targeted group of people. The survey measures the opinions, preferences, perceptions, and experiences of a desired audience and can collect self-reported demographic and geographic data. 

With surveys, companies get an aggregate but statistically valid picture that they can leverage to make decisions. Surveys also offer the ability to segment and further analyze the answers to determine key drivers of behaviors.

Qualitative Primary Research

Qualitative research focuses on targeted insights around concepts, opinions, and preferences. Unlike quantitative methods, these market research methodologies leverage a smaller set of data and respondents but allow for more in-depth answers.

There are two common types of qualitative primary research: in-depth Interviews and focus groups.

• In-depth Interviews In-depth interviews involve one-on-one conversations between interviewers and those from the target audience. The interview follows a pre-determined set of questions, or guide, to reveal sentiment, decision-making processes, and unmet needs.
• Focus Groups Focus groups are facilitator-led group discussions reveal perceptions of or reception to a concept or idea. While the facilitator guides the meeting, the direction of the conversation is determined by the participants creating organic responses that stem from participant perception and reactions.

Secondary Research

Secondary research, also known as desk research, is leveraging data that already exists to answer questions. It can be used to understand what others in the market are doing, identify potential markets for growth or expansion, or allow companies to compare their organization to others on key performance indicators.

What is the market research process?

There are five stages to the market research process.

• Determine your Area of Focus To determine the focus of your market research, look at your goals objectively and determine if you have accurate and effective data to accomplish these goals.  Once you have identified your goal, the next thing is to determine what you need to learn to support it. This could be anything from external information like market trends and competitors or internal information like customer satisfaction with your brand and offerings.

• Gather Your Data With your focus and methodology determined, the next step is to start collecting data. Each methodology has its own methods of data collection. Methods like surveys and interviews require researchers to gather feedback data from a select sample of their intended audience. Data analysis and secondary research entail gathering existing internal or external data related to the primary research focus.
• Analyze the Results Once the data is collected, the next step is to clean and analyze the results. It is essential that data is verified and accessed to ensure the data is valid and is sufficient to provide accurate results. Once the data has been cleaned it should be reviewed for general findings, evaluated against your initial questions, and benchmarked against past performance or competitors.
• Leverage Findings to Inform Your Business Strategies After conducting your initial research, it’s time to reassess your strategies. Look at the strengths, weaknesses, opportunities, and threats that your research has uncovered to see how it might impact your business and existing strategies. Is there a way to enhance your current strategies with the new data? Do you need to alter your strategies and resources to address an uncovered threat? 

Leverage your findings to inform your strategy and determine your next steps, whether they indicate you should stay the course, pivot to tackle a more pressing challenge, or even conduct new research to further understand your recent findings.

Why use both quantitative and qualitative research?

Leveraging both quantitative and qualitative research can provide a more holistic view of a situation. For example, quantitative data analysis offers relevant findings but can sometimes lack context. If it is followed up by qualitative in-depth interviews, companies can gather feedback to understand the factors that lead to the data analysis findings and identify potential solutions or untapped opportunities.

Interviews can help businesses identify customers’ thoughts and opinions and then that feedback can inform a survey that is sent to a wider audience for measurable insights. Companies can also use secondary desktop research to identify market trends and industry benchmarks and combine it with data analysis or surveys to evaluate the company’s performance in the market.

What is a sample in market research?

A sample in research refers to a small but representative group of people whose answers are extrapolated to a larger population.

For example, if a company wants to identify their brand awareness, they will survey a sample of people that have similar characteristics to their target audience. The survey’s findings will then provide a general understanding of how well known the brand is and directions on how to improve their brand’s presence in the market.

Start conducting your own research with this step-by-step guide.

• The Ultimate Guide to Market Research

How companies conduct market research

How can you get market research.

There are three main ways companies can get market research insights.

• Internal non-dedicated research Some companies conduct research with no real dedicated resource, requiring members in the marketing, product, strategy, and business intelligence departments to conduct research themselves. While initially low-cost, this option consumes internal resources and time, can produce incomplete, inaccurate, and biased results, and is often not shared company wide.
• Dedicated internal research team Some companies are big enough or require extensive market research and have therefore invested in building an internal research department. This option produces more accurate and strategic results than the first option. However, it requires a long-term investment and the amount of research and insights you can collect will be limited depending on the amount and expertise of the analysts employed.
• External market research company Many companies partner with an external research company to gain access to research experts, technology, and advice for actionable insights. The price for this option depends on the type and amount of research you do, but it can be less of a burden than maintaining an internal department while still providing the value of research expertise.

What are the types of market research firms?

A market research company is a firm that specializes in conducting research. There are a few different types of market research firms based on the services they provide.

• Custom research providers Custom research companies (like Hanover) design and conduct research centered around client’s unique needs. They often specialize in all four research methodologies to develop research that answers clients’ focus questions and provide findings that connect the data back to the intent of the research.
• Syndicated research providers Syndicated research companies do not conduct client-specific research. Instead, these companies conduct widespread research to offer data such as industry statistics, current best practices, or recent trends. Businesses can then buy this research to gather perspectives on their performance and identify areas where custom research can help provide more insight.
• Self-service platforms Self-service companies provide research technology for companies to conduct their own research. It allows companies to design and administer their own research and analyze and assess the results.

Should you use a market research firm?

Market research companies provide valuable benefits, making them an effective partner for your research needs. In addition to the research they provide, they have added benefits like:

• Removing the influence of preconceived opinions and personal or company bias
• Access to sophisticated analysis software and research methods
• Offering expert insights to help design research that results in accurate and relevant findings
• Offloading time-intensive research and analysis enabling companies to focus internal resources on strategic work
• Access to expert researchers without having to hire a full-time employees

How much does market research cost?

The cost of market research varies based on how you conduct your research. Conducting research in-house vs hiring a research company might be cheaper (but less effective). The type of methodology you use can affect the cost, for example, in-depth interviews can become quite expensive depending on the incentives you offer to participate. Price can also vary depending on the level of service you need, for example some companies will work with you to identify your focus and mythology, conduct the research, and present findings and recommendations while others will only conduct research and deliver the results.

Don’t make the mistake of focusing on costs by itself. Opting for cheaper or quick research can provide you with skewed data that can do more harm than good.

Good research is worth the investment. Over 85% of companies say market research ROI is over four times the investment. The insights and impact market research provides has also led 69% of businesses to increase their investment in market research this year.

Find out how Baltimore Aircoil successfully entered an international market with targeted insights

• Baltimore Aircoil Company Develops HVAC Purchasing Strategy for New International Market

What are some tips for making market research effective?

Market research is instrumental in building effective data-driven strategies. But only if done right. As you begin to plan out your market research and business strategies, keep the following tips in mind.

• Refresh your data to ensure it is accurate and relevant
• Tailor research to your unique needs and challenges
• Use the correct methodology to accurately answer your questions
• Incorporate research findings into your strategies
• Share insights across the company to ensure everyone is operating off the same data
• Leverage outside expertise when you need it

By implementing these tips, you can enhance the quality and effectiveness of your market research efforts, enabling data-driven decision-making and strategic planning that aligns with your business objectives.

Start gathering targeted insights

Research & Insights

Receive industry-leading insights directly in your inbox.

If you have difficulty accessing any part of this website or the products or services offered by Hanover Research, please contact us at [email protected] for support.

Become a client

Access the best custom research to help hit your organization’s goals . Request your custom consult below and a member of our team will be in touch.

Have questions? Please visit our contact page .

Let us come to you!

Receive industry insights directly in your inbox.

Our newsletters are packed with helpful tips, industry guides, best practices, case studies, and more. Enter your email address below to opt in:

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

Team Fratzke

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

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

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

Article Overview

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

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

What is market research?

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

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

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

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

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

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

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

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

Why do market research?

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

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

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

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

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

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

Primary vs. Secondary Research

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

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

Primary Research

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

Exploratory Primary Research

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

Specific Primary Research

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

Secondary Research

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

• Public sources
• Commercial sources
• Internal sources

Public Sources

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

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

Commercial Sources

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

Internal Sources

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

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

Types of Market Research

• Interviews (in-person or remote)

Focus Groups

• Product/ Service Use Research

Observation-Based Research

Buyer persona research, market segmentation research, pricing research.

• Competitive Analysis Research

Customer Satisfaction and Loyalty Research

Brand awareness research, campaign research.

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

• Family size 
• Challenges faced at work or in life 

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

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

Product/Service Use Research

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

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

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

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

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

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

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

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

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

Competitive Analysis

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

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

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

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

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

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

How to Do Market Research (Detailed Roadmap)

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

1. Define the problem or objective of the research

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

2. Determine the type of data needed

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

3. Identify the sources of data

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

4. Collect the data

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

5. Analyze the data

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

6. Interpret the results

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

7. Report the findings

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

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

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

8. Take action based on the findings

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

How to Prepare for Market Research Projects

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

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

How to Identify the Right People to Engage for Market Research

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

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

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

Gather a mix of participants

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

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

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

Related Resources:

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

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

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

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

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

Here are a few ways to build your competitor list:

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

Identifying Content Competitors

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

Once you have this list, follow these steps:

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

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

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

Market Research Examples

Mcdonald's focus on customer feedback and profiling.

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

Nike's Extensive Research and Collaboration for Running Shoes Development

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

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

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

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

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

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

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

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

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

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

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

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

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

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

VideoTranscript

The takeaway.

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

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

Stay in the know

Get the latest insights sent directly to your inbox.

Related Posts

How to Create Customer Surveys: 8 Tips & 25 Sample Questions

Learn 8 of the best tips for creating effective customer surveys and get 25 sample questions to gather authentic feedback and drive business growth.

Top Internal Communications Statistics: Everything You Need to Know

Explore key internal communications statistics and trends to enhance your organization's communications strategy and performance.

What is Web Governance? 7 Key Principles To Set Your Team Up For Success.

In today’s digital age, a company’s website serves as the primary and most reliable source of information for its audiences. To ensure quality on a website, organizations need to have a sound web governance system in place. Web governance outlines the activities and resources required to manage a website, defines governance principles, and ensures quality, consistency, accessibility, and compliance. 

201 Harbor Blvd. Suite 203 Fullerton, CA, 92832 ‍ Phone: (714) 614-2881 Hours: Monday - Friday 8AM-6PM

Stay in the loop

© 2024 by Fratzke

What is Market Research? Types, Tools, Examples

Appinio Research · 13.12.2022 · 33min read

Are you ready to unlock the secrets to success in today's competitive business landscape? Understanding your market is critical to thriving in an ever-changing environment. But where do you start? Market research holds the answers. It's not just about gathering data; it's about gaining invaluable insights into your customers, competitors, and industry trends. Whether you're a seasoned entrepreneur or just starting out, mastering the art of market research is essential for making informed decisions that drive growth and profitability. In this guide, we'll demystify the world of market research, breaking down complex concepts into easy-to-understand insights and practical strategies. From defining market research to implementing actionable insights, we'll cover everything you need to know to take your business to the next level.

What is Market Research?

Market research is the systematic process of gathering, analyzing, and interpreting information about a market, its consumers, and its competitors. It involves collecting both quantitative and qualitative data to gain insights into consumer behavior, market trends, and competitive landscapes. Market research serves as a foundation for strategic decision-making in business, helping organizations understand their target audience , identify opportunities, and mitigate risks.

Importance of Market Research

• Understanding  Customer  Needs : Market research helps businesses gain insights into their target customers' needs, preferences, and expectations. By understanding what drives consumer behavior,  businesses  can develop products and services that effectively meet customer demands.
• Identifying Market Trends : Market research enables businesses to stay abreast of emerging trends and shifts in consumer behavior. By monitoring market trends,  businesses  can adapt their strategies accordingly and capitalize on new opportunities.
• Assessing Competitive Landscape : Market research provides insights into competitors' strategies, strengths, and weaknesses. By understanding the competitive landscape, businesses can identify gaps in the market and differentiate themselves effectively.
• Mitigating Risks : Market research helps  businesses  assess the feasibility and viability of new products, services, or business ventures. They can minimize risks and avoid costly mistakes by conducting market research before making strategic decisions.
• Optimizing Marketing Strategies : Market research informs the development and optimization of marketing strategies, enabling businesses to target the right audience with the right message through the proper channels. By understanding consumer preferences and behaviors, they can tailor their marketing efforts for maximum impact.

Objectives of Market Research

• Understanding Consumer Behavior : Market research aims to understand  the  motivations, preferences, and behaviors  of target consumers .  By gaining insights into consumer behavior, businesses can tailor their products, services, and marketing strategies to meet  customer  needs effectively.
• Identifying Market Opportunities : Market research helps  businesses  identify untapped market segments, niche markets, and unmet needs. By identifying market opportunities, they can develop new products or services that address market gaps and drive growth.
• Assessing Market Potential : Market research enables businesses to evaluate the size, growth potential, and attractiveness of target markets. By understanding market potential, they can prioritize resource allocation and focus their efforts on markets with the most significant opportunities for success.
• Evaluating Competitor Strategies : Market research provides insights into competitors' strategies, offerings, and market positioning. By analyzing competitor data, businesses can identify areas of competitive advantage and develop strategies to differentiate themselves.
• Informing Decision-Making : Market research  serves as  a basis for strategic decision-making across all business areas.  By providing data-driven insights and actionable recommendations,  market research helps businesses make informed decisions that drive growth and profitability.

Understanding Market Research

Scope of Market Research

The scope of market research extends far beyond simply understanding consumer preferences. It encompasses various aspects of market dynamics, including:

• Consumer Behavior : Understanding  the  motivations, needs, and preferences  of target consumers .
• Market Trends : Identifying emerging trends, shifts in consumer behavior, and changes in market demand.
• Competitive Analysis : Assessing competitor strategies, market positioning, and strengths and weaknesses.
• Industry Insights : Gathering information about industry trends, regulatory changes, and technological advancements.
• Market Segmentation : Identifying distinct market segments based on demographics, psychographics, and behavior.

By comprehensively exploring these aspects, businesses can  gain a holistic understanding of  their market environment and make strategic decisions accordingly.

Types of Market Research

Market research can be broadly categorized into two main types: qualitative  research and quantitative research .

Qualitative Research

Qualitative research focuses on exploring underlying motivations, attitudes, and perceptions through non-numerical data. Common methods include:

• Focus Groups : Small group discussions led by a moderator to gather insights into consumer opinions and attitudes.
• In-depth Interviews : One-on-one interviews  conducted  to delve deeper into individual experiences and perspectives.
• Observation : Direct observation of consumer behavior in real-world or simulated environments.

Qualitative research provides rich, nuanced insights that help businesses understand the "why" behind consumer actions and preferences.

Quantitative Research

Quantitative research involves collecting and analyzing numerical data to quantify market trends, consumer behavior, and business performance. Key methods include:

• Surveys : Structured questionnaires administered to a sample of respondents to gather quantitative data.
• Experiments : Controlled studies designed to test hypotheses and measure the impact of variables on consumer behavior.
• Secondary Data Analysis :  Utilizing existing data sources, such as market reports and databases , to analyze  trends and patterns .

Quantitative research provides statistically valid insights that enable businesses to make data-driven decisions and measure the effectiveness of marketing strategies.

Market Research Components

The success of market research initiatives hinges on several key components:

• Clear Objectives : Defining research objectives that align with business goals and provide actionable insights.
• Methodological Rigor : Selecting appropriate research methods and ensuring the validity and reliability of data collection.
• Data Analysis : Applying rigorous analysis techniques to derive meaningful insights from collected data.
• Insightful Interpretation : Interpreting research findings in the context of broader market dynamics and business implications.
• Actionable Recommendations : Providing actionable recommendations that guide strategic decision-making and drive business growth.

How to Set Market Research Objectives?

Before embarking on any market research initiative, establishing clear objectives is essential to guide the entire process.  By setting  research objectives , you can ensure  that your efforts are focused, relevant, and aligned with your business goals and target audience.

1. Identify Business Goals

The first step in setting research objectives is identifying your overarching business goals. What are you trying to achieve with your market research? Are you looking to launch a new product, enter a new market, or improve customer satisfaction ?  By clearly  defining your business goals , you  can tailor your research efforts to address specific challenges and opportunities.

Suppose your goal is to increase market share in a particular demographic segment. Your research objectives may then focus on understanding the preferences and purchasing behavior of that target audience.

2. Define Research Questions

Once you've identified your business goals, the next step is to define research questions that will help you achieve those goals. Research questions should be specific, measurable, and relevant to your objectives. They should guide your data collection efforts and provide a framework for analysis.

For instance, if your business goal is to improve brand perception among millennials, your research questions may include:

• What factors influence millennials' brand preferences?
• How do millennials perceive our brand compared to competitors?
• What channels do millennials use to engage with brands?

3. Establish Market Research KPIs

In addition to defining research questions, it's essential to establish key performance indicators (KPIs) that will measure the success of your market research efforts. KPIs should be aligned with your business goals and reflect the outcomes you aim to achieve.

For example, if your goal is to increase customer satisfaction, KPIs may include metrics such as Net Promoter Score (NPS) , customer retention rate, and customer lifetime value. These KPIs provide quantifiable measures of success that can inform strategic decision-making.

4. Align Objectives with Target Audience

Finally, it is crucial to ensure that your research objectives align with  those of your target audience .  Understanding their needs, preferences, and behaviors is essential for conducting meaningful research and deriving actionable insights.

For example, if your target audience consists of young professionals, your research objectives may focus on understanding their lifestyle choices, media consumption habits, and purchasing behavior.  You  can gather relevant data that drives business growth and customer satisfaction  by aligning your goals with your target audience .

By following these steps to set clear and actionable research objectives, you can maximize the effectiveness of your market research efforts and achieve tangible results that contribute to your business success.

Market Research Tools

Market research tools are essential resources that facilitate data collection,  data analysis, and data  interpretation to gain insights into consumer behavior, market trends, and competitive landscapes.  These tools come in various forms, ranging from survey platforms to analytics software , each  designed to streamline and enhance the market research process. Here's a closer look at what market research tools are, what they do, and their benefits.

What Are Market Research Tools?

Market research tools encompass a wide range of software, platforms, and applications specifically designed to assist businesses in gathering and analyzing data related to their target market, customers, and competitors. These tools offer functionalities such as survey creation, data visualization, sentiment analysis , competitor monitoring, and trend forecasting, among others. By leveraging these tools, businesses can gain valuable insights that inform strategic decision-making and drive business growth.

What Do Market Research Tools Do?

Market research tools serve multiple purposes throughout the market research process. They enable businesses to:

• Collect Data : Market research tools facilitate the gathering of data through surveys, questionnaires, social media monitoring, web scraping, and other methods.
• Analyze Data : Once data is collected, these tools provide analytical capabilities to process and interpret the data, uncovering actionable insights and trends.
• Visualize Insights : Many market research tools offer data visualization features, allowing users to create charts, graphs, and dashboards to present insights in a clear and visually appealing manner.
• Monitor Competitors : Some tools enable businesses to track and analyze competitor activities, pricing strategies, product launches, and customer sentiment, providing valuable competitive intelligence.
• Forecast Trends : Advanced market research tools leverage data analytics and machine learning algorithms to forecast market trends, consumer behavior patterns, and emerging opportunities, helping businesses stay ahead of the curve.

Benefits of Market Research Tools

Market research tools offer several benefits to businesses of all sizes and industries, including:

• Time and Cost Savings : Market research tools save businesses valuable time and resources compared to traditional research methods by automating data collection, analysis, and reporting processes.
• Data Accuracy and Reliability : These tools ensure data accuracy and reliability by standardizing data collection methods , reducing human error, and providing robust analytical capabilities.
• Actionable Insights : Market research tools generate actionable insights that inform strategic decision-making, product development, marketing campaigns, and overall business strategy.
• Competitive Advantage : By monitoring competitors and identifying market trends, businesses gain a competitive advantage and adapt quickly to changing market conditions.
• Improved Customer Understanding : Market research tools enable businesses to gain a deeper understanding of their target audience, including their needs, preferences, behaviors, and pain points, leading to more effective customer engagement and retention strategies.

Appinio: Your All-in-One Market Research Platform

Ready to take your market research to the next level? Look no further than Appinio – the ultimate all-in-one market research platform. With Appinio, you can seamlessly conduct surveys, analyze data, and gain real-time consumer insights in minutes. Our intuitive platform empowers businesses to  make data-driven decisions with confidence , driving growth and profitability.

Say goodbye to complex research processes and hello to actionable insights with Appinio. Book a demo today and experience the power of Appinio for yourself!

Book a Demo

Primary Research Methods

Primary research methods are fundamental tools  used by businesses and researchers  to gather firsthand data directly from the source.  Unlike secondary research, which relies on existing data, primary research involves collecting new information tailored to specific research objectives. These methods allow for a deeper understanding of target audiences, market dynamics, and consumer preferences through direct interaction and observation.

Surveys are one of the most widely used primary research methods for gathering quantitative data from a sample of respondents. Surveys typically consist  of a series of structured close-ended questions as well as open-ended questions administered through various mediums, such as online platforms, phone interviews, or paper forms.

Interviews involve direct one-on-one or group interactions with respondents to gather in-depth qualitative insights. Depending on the level of flexibility in questioning, interviews can be structured, semi-structured, or unstructured.

Focus Groups

Focus groups involve facilitated discussions with  a  small  group of  participants to gather qualitative insights on a specific topic or issue.  Focus groups are  particularly useful  for exploring complex topics and understanding group dynamics and consensus.

Observation

Observation involves systematically watching and recording behaviors, interactions, and events in natural or controlled settings. Observation can be overt or covert and is often used to gather qualitative data on behaviors that may be difficult to capture through other methods.

How to Conduct Secondary Research?

Secondary research is a foundational step in the market research  process , providing valuable insights from existing sources.

What is Secondary Research?

Secondary research involves collecting and analyzing existing data and information from various sources. Unlike primary research, which  involves gathering original data through surveys or experiments, secondary research relies on data that others have already collected. The purpose of secondary research is to leverage existing knowledge to inform decision-making and gain insights into market trends, consumer behavior, and industry dynamics.

Sources of secondary data  include government agencies, industry associations, research organizations, companies, market research firms, academic institutions, online databases, and media sources.  By accessing these diverse sources, businesses can leverage existing knowledge to inform their strategies and decision-making processes effectively.

Techniques for Gathering Secondary Data

Several techniques can be employed to gather secondary data, including:

• Literature Review : Conducting a comprehensive review of existing literature and research studies relevant to the topic of interest.
• Data Mining : Using advanced data analytics techniques to extract valuable insights from large datasets and databases.
• Content Analysis : Analyzing textual data from  sources such as  news articles, social media posts, and online reviews to identify patterns and trends.
• Document Analysis : Examining reports, whitepapers, and other documents to extract relevant information and insights.

Evaluating the Credibility of Secondary Sources

When utilizing secondary sources, it's essential  to critically evaluate their credibility and reliability . Several factors should be considered when assessing the credibility of secondary sources, including:

• Authoritativeness : Assessing the reputation and expertise of the source or organization that produced the data.
• Accuracy :  Verifying  the accuracy of the data and  ensuring  that it is based on sound research methods and rigorous analysis.
• Currency : Checking the timeliness of the data to ensure that it reflects current market conditions and trends.
• Objectivity : Evaluating whether the source has any biases or conflicts of interest that may impact the reliability of the data.

By carefully evaluating the credibility of secondary sources, businesses can ensure that the information they rely on is accurate, relevant, and trustworthy.

By leveraging secondary research, businesses can access a wealth of information that informs strategic decision-making, drives innovation, and facilitates business growth.

Market Research Use Cases

Market research is a crucial tool for businesses to understand their target audience, competitors, and market dynamics. By employing various research methods, companies can gain valuable insights into consumer behavior, preferences, and trends. Here are some of the most common use cases of market research.

Market Segmentation

Market segmentation involves dividing a heterogeneous market into smaller, more manageable segments based on shared characteristics such as demographics, psychographics, or behavior.

By segmenting the market, businesses can tailor their marketing strategies and offerings to better meet the needs and preferences of specific customer groups . For example, a clothing retailer might segment its market based on age groups to create targeted advertising campaigns and product assortments for different demographics.

Target Group Analysis

Target group analysis focuses on identifying and understanding specific market segments most likely to be interested in a company's products or services. This analysis involves researching the characteristics, behaviors, and preferences of potential customers within these segments.

By understanding their target groups, businesses can develop more effective marketing strategies and allocate resources more efficiently. For instance, a software company might conduct target group analysis to identify industries or businesses  most in need of their product, allowing them to tailor their sales efforts accordingly.

Utility Analysis/Feature Prioritization

Utility analysis,  also known as feature prioritization, helps businesses understand which product features are most important to customers and prioritize development efforts accordingly. This analysis involves gathering customer feedback through surveys, focus groups, or interviews to determine which features they value most.

By prioritizing features that offer the highest utility to customers, businesses can enhance customer satisfaction and differentiate their products from competitors. For example, a mobile phone manufacturer might conduct a utility analysis to identify which features—such as camera quality or battery life—are most important to consumers when purchasing a new phone.

MaxDiff Analysis

MaxDiff analysis , short for Maximum Difference Scaling, is a research method used to identify the relative importance of different product features or attributes. In a MaxDiff study, participants are presented with sets of features and asked to indicate which they consider the most and least important.

By analyzing the results, businesses can determine which features impact customer preferences most  and prioritize them in product development efforts. For instance, a fast-food chain might use MaxDiff analysis to identify the most desired menu items or promotional offers among customers.

TURF Analysis

Total Unduplicated Reach & Frequency (TURF) analysis is a method used to optimize product portfolios, marketing strategies, or product variants to maximize reach and frequency among target customers. TURF analysis helps businesses identify the combination of offerings that appeal to the  largest  number of customers while minimizing overlap. For example, a media company might use TURF analysis to determine the  most effective  combination of TV shows or advertising channels to reach their target audience.

Conjoint Analysis

Conjoint analysis is a powerful technique  used  to understand customer preferences and trade-offs when evaluating product features or attributes. In a conjoint study, participants are presented with multiple product profiles that vary in features and  asked to choose their preferred option.

By analyzing these choices, businesses can determine the relative importance of different features and predict how changes in product attributes will impact customer preference and willingness to purchase. For example, a car manufacturer might use conjoint analysis to determine a new model's optimal combination of price, fuel efficiency, and design features.

Kano Analysis

Kano analysis helps businesses understand the factors that drive customer satisfaction and dissatisfaction. This method categorizes product features into three categories:  basic , performance, and delighters.

Basic features are essential and expected by customers, while performance features increase satisfaction linearly. Delighters, on the other hand, provide unexpected satisfaction and can differentiate a product from competitors. By understanding the Kano model, businesses can prioritize features that delight customers and differentiate their offerings in the market.

Driver Analysis

Driver analysis identifies the key factors influencing customer behavior and purchasing decisions. By quantifying the impact of different product features or attributes on customer satisfaction or purchase intent, businesses can prioritize areas for improvement and allocate resources efficiently. For example, a hospitality company might conduct a driver analysis to determine which amenities or services have the greatest  impact on guest satisfaction and loyalty.

Cost/Price Analysis

Price analysis involves studying customer preferences and purchasing behavior around different price points to optimize pricing strategies.  By  quantifying the relative importance of price levels and understanding price sensitivity , businesses can set prices that maximize revenue and profitability .  Price analysis methods include Van Westendorp analysis, Gabor-Granger analysis, and price elasticity modeling.

Gabor-Granger Price Analysis

Gabor-Granger price analysis is a method used to understand customer responses to different pricing strategies. In a Gabor-Granger study, participants are presented with  different price points  and asked about their likelihood of purchasing the product at each price level. By analyzing these responses, businesses can determine price sensitivity and identify the optimal price point that maximizes revenue and profitability.

Van Westendorp Pricing Analysis

Van Westendorp pricing analysis helps businesses understand customer preferences around different price points and determine the optimal pricing strategy for their products or services. This method involves asking customers a series of questions about price acceptability, including the price they would consider too expensive, too cheap, a bargain, and too expensive but still worth considering. By analyzing the responses, businesses can identify the price range that maximizes customer acceptance and willingness to purchase.

Discovering consumer insights has  never  been  easier . With Appinio , you can conduct these market research use cases in minutes, effortlessly gaining valuable insights to fuel your business decisions. From segmenting your market to prioritizing features and analyzing pricing strategies, Appinio streamlines the entire process, allowing you to focus on what truly matters – making data-driven decisions that propel your business forward.

Ready to experience the  full  potential market research? Book a demo today and experience the power of real-time consumer insights with Appinio!

How to Interpret Market Research Findings?

Once you've collected and analyzed your data, the next step is to interpret the findings to extract actionable insights. Interpreting research findings involves more than just looking at the numbers or qualitative responses—it requires understanding the broader context, identifying patterns, and drawing meaningful conclusions.

To interpret your market research findings:

• Contextualize the Data : Consider the broader context in which the data was collected, including market trends, competitive dynamics, and industry developments. Understanding the context helps you interpret the findings accurately and identify potential implications for your business.
• Identify Patterns and Trends : Look for patterns, trends, and relationships in the data that provide insights into consumer behavior, preferences, and market dynamics. Use visualizations such as charts, graphs, and  heatmaps  to identify patterns.
• Compare and Contrast : Compare your findings with previous research, industry benchmarks , or internal data to gain a deeper understanding of your market position and performance. Contrasting your findings with competitors' data can also provide valuable insights.
• Consider Limitations : Acknowledge any limitations or biases in your research methodology that may impact the interpretation of findings. Be transparent about the strengths and weaknesses of your research approach to ensure the validity of your conclusions .
• Seek Diverse Perspectives : Encourage collaboration and discussion among team members or stakeholders to gain diverse perspectives on the findings. Different viewpoints can lead to  richer  interpretations and more robust insights.
• Look for Actionable Insights : Focus on identifying actionable insights that can inform strategic decision-making and drive business growth. Translate your findings into concrete recommendations and initiatives that address key challenges or capitalize on opportunities.

How to Implement Market Research Insights?

Implementing market research insights is where the actual value of your research efforts comes to fruition. It involves translating your findings into actionable strategies and initiatives that drive business growth and competitive advantage.

• Prioritize Key Findings : Identify your research's most critical findings and insights with the  greatest  potential impact on your business objectives. Prioritize these insights to focus your implementation efforts effectively.
• Develop Action Plans : Translate your research findings into concrete action plans and initiatives that address identified opportunities or challenges. Define clear goals, objectives, timelines, and responsibilities for each action plan to ensure accountability and alignment.
• Engage Stakeholders : Involve key stakeholders, including senior leadership, department heads, and frontline employees, in the implementation process. Seek their input and buy-in to ensure alignment and support for your initiatives.
• Allocate Resources : Allocate the necessary resources, including budget, personnel, and technology, to support the implementation of your market research insights. Ensure that resources are allocated effectively to maximize the impact of your initiatives.
• Monitor Progress : Establish metrics and KPIs to track the progress and success of your implementation efforts. Regularly monitor and evaluate performance against these metrics to identify any deviations or areas for improvement.
• Iterate and Adapt : Market dynamics are constantly evolving, so it's essential to iterate and adapt your strategies based on ongoing research and feedback. Continuously reassess your initiatives and make adjustments as needed to stay competitive and responsive to changing market conditions.

By effectively implementing market research insights, you can drive tangible results and create a competitive advantage for your business in today's dynamic marketplace.

Conclusion for Market Research

Market research is the compass that guides your business journey, helping you navigate through uncertainties and make informed decisions. By understanding your customers, competitors, and market trends, you can position your business for success and stay ahead of the curve. Remember, market research isn't a one-time task—it's an ongoing process that evolves with your  business  and the market. So, continue to gather insights, analyze data, and adapt your strategies to meet the ever-changing needs of your target audience.

In today's fast-paced world, the importance of market research cannot be overstated. It's the foundation upon which successful businesses are built, providing the insights needed to drive innovation, optimize marketing efforts, and maximize profitability. By harnessing the power of market research, you can unlock new opportunities, mitigate risks, and achieve sustainable growth.

How to Conduct Market Research in Minutes?

Introducing Appinio , the real-time market research platform that revolutionizes how companies gather consumer insights. With Appinio, conducting market research is not only fast but also incredibly intuitive. Say goodbye to long waits for data and complex research processes.

Here's why Appinio is the ultimate solution for your market research needs:

• From questions to insights in minutes:  With our platform, you can go from formulating your research questions to obtaining actionable insights in mere minutes.
• No research degree required:  Our intuitive platform is designed for everyone, regardless of their research background. You don't need a PhD to navigate our user-friendly interface and access powerful consumer insights.
• Global reach, instant results:  Define your target audience from over 1200 characteristics and survey them in more than 90 countries, all within minutes. With an average field time of just 23 minutes for 1,000 respondents, you can get the data you need quickly and efficiently.

Join the loop 💌

Be the first to hear about new updates, product news, and data insights. We'll send it all straight to your inbox.

Get the latest market research news straight to your inbox! 💌

Wait, there's more

03.09.2024 | 3min read

Get your brand Holiday Ready: 4 Essential Steps to Smash your Q4

03.09.2024 | 8min read

Beyond Demographics: Psychographics power in target group identification

29.08.2024 | 32min read

What is Convenience Sampling? Definition, Method, Examples

Why Is Market Research Important: We Give You 7 Reasons

Planning and conducting market research is a critical component of any business. It provides decision-makers with important information to decide the course of the company, launch a new product, or to keep a tab on what competitors are doing.

Data indicates that market research is a growing industry of 47.36bn USD , globally – and rightly so. For a business to succeed, all its resources – financial and otherwise – must be invested in areas where they are needed the most. Conducting market research helps you identify those areas. It also helps you discover and understand your customers’ needs so you can innovate better, expand when the time is right, and work with more focus.

In this article below, we will share a few pointers with you about why market research is important for every business – big and small. But first, let’s talk about the types of market research.

Types Of Market Research

Depending on the purpose of your research, you can choose either of the two main types of market research. These are primary research and secondary research.

– Primary Research

Primary research is direct research that you conduct yourself or hire someone else to do it for you. It involves reaching out to your target market, asking them questions, collecting data, and analyzing the information gathered. Based on the data, strategies are devised, decisions are made, and policies are created.

Primary research helps you explore issues, dig deeper, and ask specific questions that are relevant to research topics or what you are looking for. Because it takes more time and effort, it may also cost a bit more than secondary research but it is more effective and helps you gain a solid picture of what’s going on.

– Secondary Research

Secondary research is using somebody else’s primary research for your business purposes. Research that is already conducted, organized, and published is often used by small businesses to gauge market trends, current economies, and to devise plans.

A lot of government agencies conduct market research for various purposes. If you’re on a budget, going to one of those agencies may help you out a lot as most of that research is freely available to the public. If you want to access a private market research company’s report, you may have to pay a fee to access the complete file.

However, there are private companies that publish their reports publicly. Additionally, you can also go online and conduct Google searches looking for specific phrases relevant to your research purpose to find valuable data.

Why Is It Important?

Now that we know what market research is and what different kinds it has, it’s time to learn why it is important, and why you should invest in it if you want to become a successful entrepreneur.

1. It Helps You Identify The Problem Areas As Well As Strong Areas

Knowing what you are good at and what you’re not, help you take profitable risks in life. It’s true in business too. Accurate market research helps you identify business areas that are performing well, those that need more attention, and also those that you should perhaps give up.

Back in 2010 , two young tech enthusiasts launched a location-based app – Burbn – that would allow consumers to check-in, make plans of hangouts with friends, share pictures, and more. Few weeks into the launch, they realized through internal discussions and reevaluation of the market, that Burbn is cluttered and their target market is more into Foursquare and they won’t be able to budge them.

They took a long, hard look at their app again – which had already been launched – and started working on it from scratch, removing all the features and only letting the photo-sharing, liking, and commenting options intact. And thus, Instagram was born.

It also helps you discover and understand your customers’ needs so you can innovate better, expand when the time is right, and work with more focus. For example, if you plan on starting a digital marketing agency, you’d know that there’s more need for social media in your area, than for PPC services. Thus, you’ll hire more social media experts.

2. It Helps You Understand Your Customers’ Needs

It is not enough that you know your business; you got to know what your customers are saying about you – and about your competitors. If you have got your pulse on what your customer is thinking, you’d create products that solve their issues, reach out to them when they are most ready to listen, and help them become your loyal ambassadors.

A huge part of business market research is always dedicated to gauging customer satisfaction rates, their reactions to a new product, and what they are looking for next.

In 2005, when YouTube initially launched, it was for a very different purpose : dating. Pretty soon into launch, however, and by investing in robust market research (a part of which they conducted themselves) the founders realized that their video dating app is not what their customers are looking for. Analyzing the data, they discovered that there is no app or platform in the market for video sharing. The websites that were offering this service were patchy at best and not intuitive at all.

Being attuned to their customers’ needs and spotting a wide space in the market, they tweaked their video platform and launched YouTube .

Following what your customers are talking about, listening to them, and then delivering on their needs is an important task that you can fulfill with timely customer-centered market research.

3. Helps You Conduct Your Marketing Based On Informed Decisions

Launching and running a business means making decisions every day – about products, services, expansions, HR, and so much more. Without solid market research backing your decisions, all you are doing is guess-work, hoping the results will be in your favor.

With research helping your business, you are better informed about areas to invest in, gauge the potential success of new products, test new markets to expand into, and to determine what kinds of products/services will be most favored by your customers.

This is certainly what Starbucks does. The company has a whole dedicated platform ‘My Starbucks Idea’ where employees and customers and anyone who wants can pitch in and share what they think the company should do next, the flavors it should try, the new products it should launch, bring back some old favorites, and more.

The platform helps them remain informed on all important aspects of business investment and propels them towards ventures and venues that hold the most potential.

If you aren’t a humungous company like Starbucks and cannot afford to host dedicated platforms to gain important information, invest in market research whenever you have a big decision coming up. It isn’t as expensive as you think and doesn’t take that much time. Plus the results can be relevant for a lot of related areas that you may want information on.

4. Helps You Keep An Eye On Your Competitors

As a startup founder, you may think being original is all about being focused on what you’re doing and not worry about what everyone else may be up to. This approach spells long-term disaster. While you should certainly keep your focus on your own efforts, it is critical – and smart – to keep tabs on your rivals and know what they are thinking or planning.

With sound market research on your side, you can better prepare for what your competitor may be about to do next and make sure they aren’t able to put a dent in your market share. With regular research, you can not only learn to anticipate their next move but be in a better position to avert any possible damage from their end.

In addition to conducting market research, you can pair it up with regularly monitoring their social media or to increase Instagram followers , blog posts, and seeing what is trending in your market. Here is a great resource on how you can go about it.

5. Helps You Expand And Innovate

Market research can help you identify markets and geographical areas where you can expand to. It can also help you to invest in ideas that have the most potential to succeed based on what customers are looking for and what the market is lacking.

For example, if you are a retail company, conducting market research can help you identify locations where your store can profit the most. If you are planning to buy a business to increase your market share, market research can help you point towards businesses that may be ripe for acquiring. Not only that, conducting market research before you launch your business can help you figure out ways to put your best foot forward.

It guides you towards opportunities where you have the most room to innovate and take risks with the highest return potential. For example, if your competition is employing cutting edge tech such as VoIP Phone to get better results, you can also employ the same to improve your customer care and business goals.

6. Helps You Set Business Goals

Goal-setting is one of the major parts of running a business – big and small. Goals give you directions, help you remain in sight of the bigger picture, and set you on the path of continued success. Goals can be of different kinds: short-term, long-term, department-oriented, over-arching, and such.

To set all these kinds of goals and get ready to meet them, businesses need to have a thorough and complete knowledge of their strengths and weaknesses. They need to be aware of how the market is behaving and predict what may come next.

All of this is only possible after conducting market research. With the help of focused market research, you can set achievable business goals and not follow some vague notions of instant success. These often include how to improve productivity, customer satisfaction, and business’ financial health. You can also use market research to learn ways you can reduce expenses without hurting the business, find out how to amplify your digital marketing, generate copywriting tips for research paper writers , or introduce a new employee incentive program.

7. Helps You Know Which Risks To Take And Increases Earning Potential

Risk-taking is an important component of the business. Without it, you can become stagnant and a sitting-duck for a more ambitious rival. But risk-taking cannot be a shot in the dark. To know which risks to take and when to take the plunge are attributes of successful innovators. From Dropbox’s Drew Houston who refused Steve Jobs to Google’s buying of YouTube when it was a fledgling startup, the history of business success and innovating is packed full of stories of ambitious – but informed – risk-taking.

Using market research and building a strong investing network , you can also join the ranks of informed-decision makers who do not shy away from taking risks. It prevents you from making costly mistakes that could have been avoided and take steps that result in massive profits.

Take the example of Frito-Lay . When the potato chip maker wanted to introduce a new brand, it launched online market research conducted through Facebook to ask its customer-base which flavor they would like the best. The results showed that beer-battered onion-ring flavor is a hit in California and Ohio, while New Yorkers preferred the Churros flavor idea. This research also helped him increase Instagram followers as his posts became popular over the internet.

The research helped the company come up with different flavors and market them strategically to different states. If the research would not have been done, the company would have come up with a new flavor that could have been a hit – or a miss.

Popular Instruments Of Market Research

As technology keeps advancing, market research keeps evolving. Where before you had to rely on face-to-face interviews, telephone surveys, or lengthy online questionnaires, now it’s all about short online surveys, online video interviewing tools , instant case studies aided by technologies, and focused groups that are already available on your social media channels.

Below we talk about 4 popular instruments of market research that are frequently used by companies worldwide with excellent results.

– Surveys

The survey is a quantitative method of research which means it gives you numerical scores. These scores pertain to specific answers and don’t leave much room for multiple interpretations. Because they are precise, provide specific answers, and immediate interpretation, quantitative methods are popular to conduct research when you are looking for exact information: to find out how to solve a particular problem, etc.

According to a study conducted by Statista.com , 26% of all market research is conducted through online quantitative methods, with online surveys accounting for a major share of 79%.

If you know how to create an easy survey online for your company, here is a great resource to get you started.

– Case Studies

Case studies are usually qualitative research methods; however, you can incorporate a mixed approach with a quantitative questionnaire thrown in for additional information. Using case studies, you focus on a single individual or single entity to research them thoroughly. The purpose of using case studies in business market research is usually to test theories of what went wrong in a particular situation or what went right.

Case studies are time-taking but provide extremely valuable information, detailed data, and in-depth analysis opportunities.

– Focus Groups

Focus groups are another popular instrument to conduct market research in business. A focus group consists of a small portion of your target audience that you can study in detail. It is a qualitative method of research and allows you to bring together a group of individuals that can take part in a guided form of discussion.

You can give them one or more focus questions that the group can talk about and share their views on. Focus groups are great to use when you’re creating a new product, researching a particular market segment, or want to know what your customers are thinking about you or your market.

Similar to case studies, focus groups give you a comprehensive view of a situation and allow you to conduct an in-depth analysis of different business elements.

The Future Of Market Research

The future of market research is bright. As a budding and burgeoning industry, it shows all the trends of continued growth. But as technology becomes more accessible and mobile devices more popular than desktops, market research is also evolving to fulfill the shifting customer needs.

The surveys are becoming shorter as nobody has got the time or interest to fill out a 10-page questionnaire. Artificial Intelligence is making the data collection process quicker and more intuitive, including contact database . And as time passes, you’ll see more and more market surveys being optimized for mobile.

So use all that modern market research has to offer you and use it to propel your business for the success you’d always dreamed of.

Embed this Infographic on your site using the html below:

<br /><a href="https://www.surveycrest.com/blog/why-market-research-is-important/"><br /><img src="https://www.surveycrest.com/blog/wp-content/uploads/2020/06/Market-Research-Trends.png" title="[INFOGRAPHIC] Why Is Market Research Important: We Give You 7 Reasons" alt="[INFOGRAPHIC] Why Is Market Research Important: We Give You 7 Reasons" border="0" /><br /></a></p> by <a href="https://www.surveycrest.com/">Surveycrest.com</a><br />

« Re-Imagine Marketing Strategy To Ensure Your Business Thrives Even In The Lockdown

Why mental health surveys are important during the covid-19 pandemic ».

About The Author Kelvin Stiles

Kelvin Stiles is a tech enthusiast and works as a marketing consultant at SurveyCrest – FREE online survey software and publishing tools for academic and business use. He is also an avid blogger and a comic book fanatic.

• How it Works
• Survey Templates
• Terms and Conditions
• Privacy Policy

Copyright © 2024 SurveyCrest.com

Don't have an account? Register Here

Already have an account? Sign in Here

Forgot Password

To reset your password please enter username or email below and press reset button.

OR login using a social network account

•  --> Login with Facebook
• Login with Facebook
• --> Sign in with Google

• Skip to main content
• Skip to primary sidebar
• Skip to footer
• QuestionPro

• Solutions Industries Gaming Automotive Sports and events Education Government Travel & Hospitality Financial Services Healthcare Cannabis Technology Use Case AskWhy Communities Audience Contactless surveys Mobile LivePolls Member Experience GDPR Positive People Science 360 Feedback Surveys
• Resources Blog eBooks Survey Templates Case Studies Training Help center

Home CX Consumer Insights

How does market research help a business? Successful 5 ways

This blog will explore the pivotal question, “How does market research help a business?” By delving into its multifaceted advantages, we uncover the essential ways in which market research empowers businesses to make strategic decisions, create tailored offerings, and stay ahead in an increasingly competitive landscape.

As a small business owner, you’ve probably read about market research. You know that understanding your industry’s social, cultural, and economic frameworks is essential to your success. And you’re aware that you need to know about your customers, the area in which you’re selling, and what your competitors are doing.

What is market research?

Market research is the systematic process of collecting, analyzing, and interpreting data about a specific market, industry, or audience to gain insights and understanding. It involves gathering information about various aspects of the market, such as customer preferences, behaviors, trends, competitors, and economic conditions. 

Market research tools aim to provide businesses with actionable information that can inform their strategic decisions, help them identify opportunities, mitigate risks, and develop effective marketing and business strategies.

Conducting a thorough competitive analysis as part of market research revealed key pricing strategies and unique value propositions that set our product apart in the highly competitive tech accessories market. 

Qualitative research in market research involves conducting in-depth interviews with potential customers to uncover their underlying motivations and preferences for eco-friendly products. And by utilizing quantitative research methods such as surveys and data analysis, we were able to quantify customer satisfaction levels and identify specific areas for improvement in our service offerings.

Importance of market research

Market research holds immense importance for businesses across various industries. It serves as a guiding light that helps organizations navigate the complexities of the market, make informed decisions, and achieve sustainable growth. 

Here are some key reasons highlighting the significance of market research:

Customer Understanding

Market research helps businesses gain deep insights into customer preferences, behaviors, and needs. Understanding your target audience’s motivations and pain points allows you to tailor your products, services, and marketing efforts to meet their expectations better.

Strategic Decision-Making

Informed decisions are the foundation of successful businesses. Market research provides data-driven insights that aid in identifying opportunities, mitigating risks, and shaping strategic plans. Market research supports decision-making, whether launching new products, entering new markets, or changing business models.

Market Segmentation

Businesses rarely have a universal customer base. Effective market research allows you to segment your audience based on demographics, behaviors, and preferences. This segmentation enables personalized marketing strategy and enhances customer engagement.

Competitor Analysis

Staying competitive requires a deep understanding of your rivals. Market research helps identify competitors’ strengths and weaknesses, enabling you to differentiate your offerings and create unique value propositions.

Trend Identification

Market trends can make or break businesses. Researching and identifying current and emerging trends helps you adapt to changing customer preferences, technological advancements, and industry shifts, ensuring your business remains relevant.

Risk Mitigation

Every business decision carries inherent risks. Market research minimizes these risks by providing valuable insights into potential challenges and roadblocks. This empowers you to devise contingency plans and make calculated decisions.

Product Development

Creating products or services without understanding customer needs can lead to failure. Market research guides product development by uncovering gaps in the market, enabling businesses to create solutions that resonate with their target audience.

Optimized Marketing Strategies

Effective marketing requires a deep understanding of where, when, and how to reach your audience. Market research aids in identifying the most effective channels, messages, and strategies for connecting with customers.

• Customer Satisfaction

Happy customers are loyal customers. Market research helps improve customer satisfaction by understanding their expectations and addressing their concerns, leading to stronger brand loyalty and positive word-of-mouth.

Resource Allocation

Resources, such as time and money, are finite. Market research ensures efficient resource allocation by providing insights into where to invest for maximum returns and which areas might need less attention.

Business Growth

Ultimately, market research contributes to business growth. With a comprehensive understanding of the market and customer dynamics, you can identify expansion opportunities, tap into new markets, and scale your operations.

Key components of market research

Market research can be conducted through a variety of methods, including surveys, interviews, focus groups, observation, and data analysis from various sources such as public records, social media, and industry reports. The information gathered through conducting market research is used to make informed decisions about product development, pricing, distribution, marketing campaigns, and overall optimal business strategy. 

Key components of market research data include:

Dividing the target market into distinct groups based on shared characteristics such as demographics, behaviors, and preferences. This helps businesses tailor their strategies to meet specific customer segments’ needs better.

Studying competitors’ offerings, strengths, weaknesses, and market positioning to understand the competitive landscape and identify opportunities for differentiation.

Customer Behavior Analysis

Examining how customers interact with products and services, what influences their buying decisions, and their overall satisfaction levels.

Identifying current and emerging trends within the industry helps businesses anticipate shifts in customer preferences and adapt their strategies accordingly.

SWOT Analysis

Evaluating the strengths, weaknesses, opportunities, and threats facing a business within its market environment. This analysis aids in strategic planning and risk assessment.

Data Collection and Analysis

Gathering data from various sources, organizing and analyzing it to derive meaningful insights, and making data-driven decisions.

Market Size and Growth Analysis

Assessing the overall size of the market, its growth potential, and the factors driving or inhibiting its expansion.

Primary and Secondary Research

Conducting original research (primary research) through surveys and interviews or using existing data and resources (secondary research) to gather relevant information.

5 ways of market research to help a business

Market research can be overwhelming for many, and its benefits are hidden in obscurity. To help separate fact from fiction, we’ve outlined five reasons ways effective research can help your business.

1. Market Research Centers Business on the Customer

Market research analyzes data about a market, product, or service. And the most obvious benefit is its ability to help you understand your customer. Who are they? What do they want? What do they expect? 

Through efficient research, businesses are able to establish an open-ended line of communication with their customers. Once you understand your customer’s needs, you will be able to tailor your business to meet them.

LEARN ABOUT: Purchasing Process

How to start collecting customer feedback today:

• Create a master customer list.  Be sure that this list includes the customer’s first name, last name, and email, and then consider including what products or services they use.  You can easily upload this list to QuestionPro and then use the data to segment your responses .
• Why not collect customer feedback directly from your website?  Use the QuestonPro “embed survey” feature to create a feedback tab or to have a survey pop up to measure your site’s effectiveness after the visitor is ready to leave your site.

2. It Helps Understand Your Competition

Knowing your competitors and what they offer can help make your products, services, and marketing stand out. Sure, research enables you to set your prices competitively, but it also helps you learn from your competition—and do things better.

How to collect competitive information using surveys:

• Check out this article with competitive research basics outlined.
• In this article, we’ve outlined 10 competitive research resources
• Use these basic questions in your competitive research .

3. It Enables You to Test for Success

Need help to judge whether a new product or service will connect with your customer? Research is the most effective way to test ideas before you go full-throttle with them. Through metrics, small business owners are able to see which concepts, campaigns, and messaging resonate best with target customers. The reason to conduct market research is to save money and ensures success.

Got a new idea? 

Here’s how to test your concept:

• Check out QuestionPro’s concept testing surveys in the library.
• Don’t spend money on surveys until you’ve done some secondary research.  Yes, that means trolling the web for existing studies and research.  Why not hit your local library and ask the research librarian?  They are an invaluable resource and have access to databases you don’t.
• Contact industry trade associations and publications.  Have you read an article that’s close to what you need but doesn’t have all the info?  Contact the author and see if they have data that didn’t fit in the article.
• If you need a bigger, broader sample, you can get that through QuestionPro. Just click on “Send survey” and the “Buy Sample” option.

4. It Ensures Your Relevancy

As the old adage goes, change is the only true constant. And in the marketing world, this is especially true. In order to remain successful, all businesses need to anticipate and react to change in order to stay relevant. 

By researching the evolving needs of consumers and analyzing your competition’s reactions, you are securing longevity and relevancy in the market. Market research can help business owners to stay innovative and successful—and change with the times.

How to stay relevant:

• The easiest way to stay relevant is to run a tracking or index survey.  Simply create a basic survey that you send on a regular basis. Then, you can select the date range you want to see in the reporting feature.  You can also create segments of date ranges and compare your progress.

5. It Grows Your Business

All small business owners want to grow their companies—but many are unsure where to begin. Research is your best tool for any type of product development, launch, or business expansion. Solid metrics can help:

• Keep track of trends and future markets
• Identify areas for expansion
• Draft effective strategies for campaigns
• Set realistic targets for business
• Beat competition
• Optimize results

By anticipating the evolving nature of the market, effective research enables business expansion and growth.

Market research is not just an optional step in your business strategy. Rather, it’s a vital tool that can significantly impact your success. By understanding your target audience, validating product ideas, monitoring indirect or secondary competitors, adapting marketing strategies, and minimizing risks, you position your business for growth and sustainability. 

Embracing your own market research as an ongoing process ensures that you remain attuned to changing market dynamics and continue to meet the evolving needs of your customers. In a world where data is power, a market research firm empowers your business to make informed choices and thrive in a competitive environment.

QuestionPro is your strategic partner in unraveling the benefits of market research for business success. With comprehensive survey solutions and advanced analytics, we empower you to uncover customer preferences, industry trends, and competitive insights. Elevate your decision-making with actionable data from QuestionPro’s robust platform.

LEARN MORE         FREE TRIAL

MORE LIKE THIS

Was The Experience Memorable? — Tuesday CX Thoughts

Sep 10, 2024

What Does a Data Analyst Do? Skills, Tools & Tips

Sep 9, 2024

Best Gallup Access Alternatives & Competitors in 2024

Sep 6, 2024

Experimental vs Observational Studies: Differences & Examples

Sep 5, 2024

Other categories

• Academic Research
• Artificial Intelligence
• Assessments
• Brand Awareness
• Case Studies
• Communities
• Consumer Insights
• Customer effort score
• Customer Engagement
• Customer Experience
• Customer Loyalty
• Customer Research
• Employee Benefits
• Employee Engagement
• Employee Retention
• Friday Five
• General Data Protection Regulation
• Insights Hub
• Life@QuestionPro
• Market Research
• Mobile diaries
• Mobile Surveys
• New Features
• Online Communities
• Question Types
• Questionnaire
• QuestionPro Products
• Release Notes
• Research Tools and Apps
• Revenue at Risk
• Survey Templates
• Training Tips
• Tuesday CX Thoughts (TCXT)
• Uncategorized
• What’s Coming Up
• Workforce Intelligence

Education Endowment Foundation:EEF launches three new research projects to identify solutions to recruitment and retention crisis

Eef launches three new research projects to identify solutions to recruitment and retention crisis, keep-up-to date with our latest news and resources.

Our News Alerts are e‑mailed to 45,000+ subscribers regularly.

Page generated on: Wednesday, 11 September 2024 at 6:12 (E)

The Education Endowment Foundation (EEF) is a charity and a company limited by guarantee. Registered in England, Number 114 2111 © 2024, Education Endowment Foundation, all rights reserved.

Site Search

• About ARPA-E
• Team Directory
• ARPA-E History
• Annual Reports
• Budget Requests
• Apply For Funding
• Authorization
• View Active Programs
• Search Our Programs
• Search Individual Projects
• Interactive Project Map
• Exploratory Topics
• The SCALEUP Program
• OPEN Programs
• ARPA-E Technology-to-Market
• Technology Commercialization
• External Engagement Model
• Investor Updates
• ARPA-E News & Media
• Press Releases
• ARPA-E Disruptors
• Publications
• ARPA-E Events
• Energy Innovation Summit
• Careers at ARPA-E
• Job Opportunities
• Life at ARPA-E
• Pre-Award Guidance
• Post-Award Guidance
• ARPA-E FAQs
• General Questions
• Current Funding Opportunities
• Closed Funding Opportunities

Press Release

U.S. Department of Energy Announces $18 Million for Teams to Enable the Growth of Hydrogen Production

WASHINGTON, D.C. — The U.S. Department of Energy (DOE) Advanced Research Projects Agency-Energy (ARPA-E) today announced $18 million for 9 projects to enable the growth of hydrogen as a replacement for fossil fuels. Hydrogen is increasingly seen as a clean energy source and decarbonization agent for industry and transportation. Current global hydrogen production is roughly 100 million metric tonnes per year and, by 2050, the hydrogen market is projected to grow to $1.4 trillion. These projects seek to detect and quantify hydrogen emissions throughout the supply chain to maximize the climate benefits of hydrogen production. This supports the Biden-Harris Administration’s goal to make America a leader in the clean energy economy.  

“The ability to detect and quantify hydrogen will enable the safe and economical expansion of the hydrogen economy while mitigating its climate impact,” said ARPA-E Director Dr. Evelyn Wang . “These highly sensitive and selective hydrogen sensors combined with quantitative modeling will enable industry to achieve these goals.”    

This capability will help mitigate any potential near-term warming effects that could result from a larger hydrogen economy. Future hydrogen production is projected to increase by a factor of 5 to 8 (between 470 Mt/yr187 and 800 Mt/yr188) by 2050, as hydrogen use expands to include energy storage, long-distance transportation, and industrial processes.  

Hydrogen detection methods today are primarily focused on leaks that could pose a fire hazard, typically at volumes of parts per million. Significantly lower concentration leaks may have a climate impact without posing an immediate safety hazard. ARPA-E’s Exploratory Topic M: H2SENSE projects will work to create a new generation of sensors that will detect and quantify leaks at parts per billion volume to address this need.  

The following teams selected under H2SENSE will seek to develop fully integrated systems that incorporate sensors, data transmission, dispersion and quantification analyses, and any peripheral components and modeling necessary for operation, calibration, and the accurate quantification of hydrogen:  

• Aerodyne Research (Billerica, MA) will develop a sensor system that employs tracer gases and uses machine learning software to control sampling to produce live emissions results. ($1,880,484)
• Colorado State University (Fort Collins, CO ) will develop and validate a point sensor that uses sound waves following light absorption in a material sample for trace detection of hydrogen in the atmosphere. ($1,954,931)
• National Energy Technology Laboratory (Pittsburgh, PA) will employ fiber optics-based sensors that are selective for hydrogen for a kilometer-scale distance coverage for large-area emissions monitoring. ($1,700,000)  

Access complete project descriptions for each of the projects selected for H2SENSE here .

ARPA-E advances high-potential, high-impact clean energy technologies across a wide range of technical areas that are strategic to America's energy security. Learn more about these efforts and ARPA-E's commitment to ensuring the United States continues to lead the world in developing and deploying advanced clean energy technologies.  

Selection for award negotiations is not a commitment by DOE to issue an award or provide funding. Before funding is issued, DOE and the applicants will undergo a negotiation process, and DOE may cancel negotiations and rescind the selection for any reason during that time. 

Press and General Inquiries: 202-287-5440 [email protected]