how marketing research helps in decision making

4.2 Marketing Research: an aid to decision making

Learning objectives.

The objectives of this section is to help students …

Understanding the role of marketing research
Understanding the marketing research process and the techniques employed

Discovering why they chew

Juicy Fruit Gum, the oldest brand of the Wm. Wrigley Jr. Company, was not chewing up the teen market, gum’s top demographic. In 1997, the company found itself under pressure from competitors. Sales and market share were down. How could Wrigley make more kids chomp on Juicy Fruit?

What qualities about Juicy Fruit might appeal to teens? Wrigley went to the source to find out. It found kids who chew five sticks or more of Juicy Fruit each week and promptly gave them a homework assignment. Find pictures that remind them of the gum and write a short story about it. From the focus group, Wrigley learned that teens chew Juicy Fruit because it is sweet. It refreshes and energizes them.

Their ad agency, BBDO, confirmed what the teens were saying. BBDO asked more than 400 heavy gum chewers to rate various brands by attributes that best represented them. For Juicy Fruit, respondents picked phrases such as “has the right amount of sweetness” and “is made with natural sweetness”.

Another study by BBDO looked into why teens chew gum. Was it because they are stressed out—or because they forgot to brush their teeth before going to school? Nearly three out of four kids said they stick a wad into their mouth when they crave something sweet. And Juicy Fruit was the top brand they chose to fulfill that need (Big Red was a distant second). (10)

Introduction

Although the marketing research conducted by the Wrigley Co. was fairly simple, it provided a new direction for their marketing strategy. BBDO developed four TV commercials with the “Gotta Have Sweet” theme. Roughly 70 per cent of respondents voluntarily recalled the Juicy Fruit name after watching the commercial (the average recall for a brand of sugar gum is 57 per cent). Sales of 100-stick boxes of Juicy Fruit rose 5 per cent after the start of the ad campaign, reversing a 2 per cent decline prior to it. Juicy Fruit’s market share also increased from 4.9 per cent to 5.3 per cent, the biggest gain of any established chewing gum brand during the year following the campaign.

how marketing research helps in decision making

Figure 4.5: The marketing planning process

Marketing research addresses the need for quicker, yet more accurate, decision making by the marketer. The impetus for this situation is the complex relationship between the business firm and the ever-changing external environment. In particular, most marketers are far removed from their customers; yet most know who their customers are, what they want, and what competitors are doing. Often the marketer relies on salespeople and dealers for information, but more and more the best source of information is marketing research.

It should be noted that most marketing decisions are still made without the use of formal marketing research. In many cases, the time required to do marketing research is not available. In other cases, the cost of obtaining the data is prohibitive or the desired data cannot be obtained in reliable form. Ultimately, successful marketing executives make decisions on the basis of a blend of facts and intuition.

The nature and importance of marketing research

Informal and, by today’s standards, crude attempts to analyze the market date back to the earliest days of the marketing revolution. Only in recent years, however, has the role of research as it relates to management been clearly recognized.

Reflecting this change in orientation, the following definition of marketing research is offered: marketing research is the scientific and controlled gathering of non-routine marketing information undertaken to help management solve marketing problems. There is often hearty disagreement over the answer to the question of whether marketing research is a science. One’s answer depends on the employed definition of “science”. To be specific, a research activity should use the scientific method. In this method, hypotheses (tentative statements of relationships or of solutions to problems) are drawn from informal observations. These hypotheses are then tested. Ultimately, the hypothesis is accepted, rejected, or modified according to the results of the test. In a true science, verified hypotheses are turned into “laws”. In marketing research, verified hypotheses become the generalizations upon which management develops its marketing programs. (To simplify our discussion, we will use “questions” as a synonym of “hypothesis”.)

The mechanics of marketing research must be controlled so that the right facts are obtained in the answer to the correct problem. The control of fact-finding is the responsibility of the research director, who must correctly design the research and carefully supervise its execution to ensure that it goes according to plan. Maintaining control in marketing research is often difficult because of the distance that separates the researcher and the market and because the services of outsiders are often required to complete a research project. (1)

Student Example

Apple creating and updating their products consistently always leads to consumers waiting to see what else could possibly be done to help improve their products. This is where marketing research can ve utilized and can really help the company to advance in their sales.

Tarrah Clark

Class of 2020

What needs researching in marketing?

An easy, and truthful, answer to this question is “everything”. There is no aspect of marketing to which research cannot be applied. Every concept presented in this marketing text and every element involved in the marketing management process can be subjected to a great deal of careful marketing research. One convenient way to focus attention on those matters that especially need researching is to consider the elements involved in marketing management. Many important questions relating to the consumer can be raised. Some are:

• Who is/are the customer(s)?

• What does he/she desire in the way of satisfaction?

• Where does he/she choose to purchase?

• Why does he/she buy, or not buy?

• When does he/she purchase?

• How does he/she go about seeking satisfaction in the market?

Another area where research is critical is profits. Two elements are involved. First, there is the need to forecast sales and related costs—resulting in profits. Second, there is the necessity to plan a competitive marketing program that will produce the desired level of sales at an appropriate cost. Sales forecasting is the principal tool used in implementing the profit-direction element in the marketing management concept. Of course, the analysis of past sales and interpretation of cost information are important in evaluation of performance and provide useful facts for future planning.

A great deal of marketing research is directed toward rather specialized areas of management. These activities are broken down into five major areas of marketing research. Briefly, these activities are:

• research on markets —market trends, market share, market potentials, market characteristics, completion, and other market intelligence

As a business development intern, I work a lot with the marketing team in helping them get the time-consuming, yet necessary research on either specific markets we are entering or potential new clients. For example, I conducted research on the retail market in the Philippines. When I do this kind of research, I look at the market trends, forecasts, and things like the relationship between brick-and-mortar stores vs. online shopping in this case.

Cassidy Lane

• research on sales —sales analysis, sales forecasting, quota-setting, sales territory design, sales performance measurement, trade channels, distribution costs, and inventories • research on products—new product research, product features, brand image, concept tests, product tests, and market tests

When I worked at a retail store, we would forecast our sales for the day based on how much was sold on that day last year and then set our individual quotas based on that information. We would also analyze at the end of the day why we either met or missed our goals. For example, if the weather was bad, that could affect our sales for the day regardless of whether it was a big day the year before. We did a lot of product research, especially on new products, because it made our customers’ experience better if we were able to tell them about why the products were of better quality than others.

• research on advertising and promotion —promotion concepts, copy research, media research, merchandising, packaging, advertising effectiveness measurement

• research on corporate growth and development —economic and technological forecasting, corporate planning inputs, corporate image, profitability measurement, merger and acquisition, and facilities location.

Sales forecast

Cost forecast

Product testing

Consumer needs

Consumer attitudes

Consumer product usage

Market size/trends

Product replacement

Demographic trends

Legislative impact

Price testing

Marketing communication testing

Channel locations

Competition

Psychographic trends

Environmental trends

Table 4.1: Areas of research application.

Newsline: How execs use research

Creating and introducing new products is the most important research priority among marketing executives. The Marketing Science Institute of Cambridge, Massachusetts, USA, surveyed 160 executives from its sponsoring organizations. The executives, representing 60 major consumer and industrial goods and services corporations, were asked to divide 100 points among several research areas.

After successful new product introductions, the executives said that market orientation and customer relationships are the next most important areas. Those issues displaced improving the use of marketing information and measuring brand equity as the second- and third-highest concerns, respectively, in the previous survey.

“The new research priorities indicate that a shift is taking place in marketing practice”, notes Donald Lehmann, executive director of the institute. “Market orientation has taken hold and the increasing power of the consumer is apparent in the movement away from product-driven strategies. Marketers also realize that they need to make choices about who their customers should be and whose needs they are best equipped to meet … and most significantly, they are looking for better ways to anticipate adoption and diffusion of really new products.” said Marni Clippenger, communications director at MSI, “Companies seem to be shifting away from using the brand to really figuring out what customers want.” (11)

1. Marketing research is the scientific and controlled gathering of nonroutine marketing information undertaken to help management solve marketing problems.

2. Any business that is consumer-oriented will benefit from marketing research.

3. Research can be applied to every facet of marketing.

(10): “How Sweet It Is,” American Demographics, March 2000, p, S 18; “Flavor du Jour,” American Demographics, March 2000, p, SI0; Erika Rasmusson, “Cool for Sale,” Sales & Marketing Management, March 1998, pp. 20-22,+

(11): Rachel Rosenthal. “New Products Reign as Research Priority,” Advertising Age, August 8, 1994, p. 26; Robert McMath, “To Test or Not To Test,” American Demographics, June 1998, p. 64; John McManus, “Mission Invisible,” American Demographics, March 1999, p. 6.

(1) Ralph H. Sprague, Jr. and Hugh J. Watson, Decision Support Systems:Putting Theory Into Practice, Englewood Cliffs, N.J.: Prentice-Hall,1986, p. 1

(2) Claire Selitz, Lawrence S. Wrightsman, and Stuart W. Cook, Research Methods in Social Relations, New York: Holt, Reinhart and Winston, 1976, pp. 11 4-115.

(3) Ian P. Murphy, “Research with Bottom Line in Mind Only,” Marketing News, March 3, 1997, p. 10.

(4) Pamela L. Alreck and Robert D. Settle, The Survey Research Hand book, Richard D. Irwin, Inc., 1995.

(5) Seymour Sudman, Applied Sampling, New York: Academic Press, 1976

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Why Market Research Is Important for Strategic Decision Making

by Sarah Schmidt , on May 29, 2018

Consider the following scenarios:

A CEO who is thinking about making a large acquisition to enter a new market
A product developer working to stay ahead of shifting trends
A management consultant advising a client on how to reboot their business
A brand manager creating buyer personas to shape marketing efforts
An entrepreneur building a pitch to secure funding from venture capitalists

Each of these individuals may have previous experiences and gut instincts that inform their thinking and planning, but they must also incorporate high-quality data and analysis into their decision-making process in order to understand the bigger picture, persuade key stakeholders, and back up their conclusions.

Risk is inherent in each of these situations, and a fumble at the wrong moment can lead to serious consequences for an individual’s career success and a company’s longevity. When the competition is fierce and the margin of error is thin, relying on faulty assumptions can be fatal.

As we explore in the white paper The Importance of Market Research for Validation and Decision Making , high-quality industry research can mitigate these risks by helping to test your hypotheses, validate your insights, and build your sense of confidence.

Why You Need an Outside Point of View

Since 2000, more than half of the companies in the Fortune 500 have merged, gone bankrupt, or been acquired, according to Forbes . A new generation of innovative companies has sprung up, creating unique business paradigms for the organizations of tomorrow.

In this volatile environment, it’s not enough to just predict or forecast within the existing scope of business (though you should). To avoid getting “Ubered” like the cab industry, companies must leverage accurate data and qualitative assessments about the industry direction and identify gaping holes in customer satisfaction that outsiders may prey on. Rigorous analysis should be used to drive decision making and adapt in a timely manner, and in this regard, third-party market research can protect you in more ways than one.

Market research can open your eyes to products and trends beyond your own company and help you become more aware of influential variables such as:

New technology
Rising competitors
Shifting consumer preferences
Socio-economic changes
New regulations
Growing and shrinking markets
Potential new partners and suppliers

With adequate research, you can seize valuable opportunities for product development and new market entry. You can also make more prudent investments — increasing spending on markets that still have room for growth and re-evaluating investments in markets with lower demand.

Market research can also give you the foundation you need to make other pivotal shifts in your business. For example, you may find that you need to build new external partnerships to quickly adapt to technological changes (such as cloud computing, virtual reality, or automation), or it may be in the best interest of your company to acquire a start-up to maintain a foothold in an evolving industry (such as Walmart acquiring Jet.com to boost its e-commerce side of the business).

Making smart business decisions — and gaining buy-in from stakeholders along the way — is much easier when you have credible evidence to back up your strategies.

Interested to learn more? Download MarketResearch.com's free white paper for more practical insights and recommendations.

The Importance of Market Research for Validation and Decision Making

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The Power of Market Research: One MBA Student's Story

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Decision-Driven Marketing

Aditya Joshi
Eduardo Giménez

Good decision processes break down silos and improve performance.

Reprint: R1407D

The gap between marketers’ aspirations and what their organizations can accomplish creates intense pressure to reshape how marketing is done. In recent years some leading companies have developed an innovative approach that focuses on the seams between marketing and the other functions it interacts with—the C-suite, IT, sales, finance, and so on. It is at these seams that communication most often breaks down and processes stall.

Typically, three categories of marketing-related decisions cross organizational seams: strategy and planning; execution; and operations and infrastructure. When marketing works closely with other units to execute key decisions, it can get things done far more quickly and effectively than in the past. But divergent assumptions or a lack of alignment and shared commitment between functions can get in the way. When the authors asked people in marketing and other relevant units what roles they played in a decision, the answers were all over the map. In a classic example, both marketers and product developers in one automaker’s European division believed that they had the final say on which features to include in a new model.

The authors provide a tool for revamping the decision process at the boundaries between functions and describe how Target, Nordstrom, and other large companies have identified important decisions at the seams and increased the impact of their marketing organizations.

Marketers have always had to build brands, create demand, promote sales, and help their companies earn customers’ loyalty. But today’s turbulent environment means they must play critical new roles: They must be strategists, allocating scarce resources to support company priorities and increasing return on investment. They must be technologists, tracking and capitalizing on the most useful of the sophisticated technologies that are flooding their field. And they must be scientists, because the future of their business may not look much like the past: Experiments that were once sideshows to preplanned campaigns are increasingly central to a marketer’s job.

Aditya Joshi is a partner at Bain & Company and head of the firm’s Marketing Excellence area. He is the co-author of “ Decision Driven Marketing ” in the July-August 2014 issue of Harvard Business Review.

EG Eduardo Giménez is a partner at Bain and a member of the firm’s Consumer Goods practice in Europe, with a focus on marketing organizations.

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What is Marketing Research? Examples and Best Practices

12 min read

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

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

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

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Defining marketing research

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

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

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

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

The purpose of marketing research

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

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

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

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

Key components of market research

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

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

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

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

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

Types of market research: primary and secondary

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

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

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

Interviews.

Focus groups.
Product trials.

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

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

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

Let’s look a bit deeper into them now.

What is primary market research?

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

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

There are many ways to conduct primary research.

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

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

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

Navigating secondary market research

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

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

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

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

Qualitative vs quantitative research

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

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

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

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

Implementing market research tools: Userpilot’s role

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

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

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

Marketing research process: Step-by-step guide

Marketing research conists of several critical stages:

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

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

An effective research strategy is crucial and involves:

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

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

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

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

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

Challenges and best practices in market research

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

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

The advantages of engaging in marketing research cannot be overstated.

Real-life examples of successful market research

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

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

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

Choosing the right market research tools

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

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

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

Measuring the impact of market research

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

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

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

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

Frequently asked questions

What is market research and why is it important.

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

What is the difference between primary and secondary market research?

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

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

What are some examples of successful market research?

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

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

How can I choose the right market research partner?

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

Best wishes on your endeavor!

How is the impact of market research measured?

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

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Who is your target consumer? What does their buying journey look like? How should you price your new product or service?

Today’s business markets are complex and rapidly evolving. So when answering questions like these, you can’t afford to guess. You need data.

That’s where the marketing research process comes in.

The marketing research process encompasses a number of activities focused on gathering product and consumer data to understand your target customers, validate new product ideas, iterate on existing products, and improve marketing and business decisions.

If you want to understand your customer and set your products and marketing strategies up for success, you need marketing research. But where should you begin? And how can you ensure your efforts lead to actionable insights?

Below we’ll walk you through the 5 main marketing research steps.

What is the marketing research process?

The marketing research process is a series of steps used to plan and conduct research on your target market. This process starts before the research ever begins, and it covers everything needed to make research effective, from planning to conducting to analyzing—all the way to finally presenting the results.

As much as we might want to believe our instincts are always right, that’s simply not the case. Research may back up your gut feeling, but it often reveals new, unexpected facts as well. The marketing research process helps you get all the information you need to make and justify a choice–and even gain a competitive edge.

Types of marketing research

There are multiple ways to conduct marketing research, depending on the question you’re trying to answer or the problem you’re trying to solve. Some marketing research process examples include:

Customer interviews
Focus groups
Competitive analysis
Surveys or questionnaires
Observation

Which method you should choose will depend on your objectives.

Benefits of doing market research

In 2018, less than 40% of marketers used consumer research to drive decisions. By 2021, 60% of marketers said they use customer data the majority of the time when making decisions.

Why the jump? Marketers have realized the significant value of the marketing research process and are using it to improve their decision making across the business.

Market research is powerful because it can help solve real problems. The marketing research process helps leaders answer questions and gain insight into their business, such as:

Why do customers buy certain products or behave a certain way
What problems do customers have and what pain points the business can address
What’s trending in the industry and what the competitive landscape looks like
The level of demand for a type of product or service
Customer perceptions or opinions on pricing
Untapped opportunities for product development or marketing

Bottom line? The marketing research process helps your bottom line.

When you understand customer behavior and needs, the market landscape, and your own product performance, you can make better, strategic decisions that drive the business forward.

5 marketing research process steps

There are five basic steps to the marketing research process. The specific execution of these steps will vary based on your company’s specific needs and capabilities, but the outline below provides a good starting point.

1. Define the problem

In this initial step, determine why you need to conduct research in the first place. Once you’ve defined why you need research, decide what kind of information you need and how your team will use that information. This will make it easy to design an appropriate research plan in the next step.

For example, let’s say the business is seeing a drop in sales on one product. Your research question could be “Why are sales for product A dropping?” There could be a few reasons, such as loss of customer interest based on product performance or industry competition. Your marketing research can then be designed around investigating those possibilities.

Pro tip: Consult with decision-makers in your company. You’ll want to be sure that your marketing research adequately addresses their concerns and gives them the information they need to make a decision. Work with them to determine any specific metrics they’ll use to make their decision so you can tailor your research process to include their needs.

2. Develop a research plan

Next, begin outlining your research approach. Develop a hypothesis, and then determine how you will conduct research. There are many ways to gather data, including surveys and focus groups, so it’s important to choose a method that will give you the information you need from the people you care about.

Your target audience
The research tools you will use
Who will be involved in the research process (e.g., customers, internal staff, or both?)
How you will select research participants
Your research timeline
Project resources

If you’re conducting a survey, interviews, or focus group, consider how you will incentivize participants, what kinds of questions you will ask, and how to collect the responses.

3. Collect data

With a research plan in place, you can begin conducting your research. As you do so, ensure that everyone involved in collecting data has received training to do so effectively. You’ll want to supervise and evaluate their efforts throughout the research process to ensure you get quality data.

Make sure to collect and record data in a secure place, preferably using a standardized format, to ensure you have accurate, usable data.

4. Analyze data

As your research concludes, begin data analysis . This step includes editing, coding, or transcribing data as needed to make it readable and manipulatable. Data analysis can take many forms, but it often includes making graphs and tables to spot trends. Remember, your analysis should reveal whether your hypothesis established in step two was correct.

5. Prepare a report

The marketing research process concludes with a presentation of your research. Generally, this takes the form of a written report that includes the initial problem, an outline of the research, and recommendations for how to proceed. This step can also take the form of oral reports or presentations—anything that communicates your research clearly.

However you present this information, make your report clear and understandable for any individuals who weren’t directly involved in the research process. Give them all the information necessary for decision-making. At this point, your company can take action based on your findings, thus concluding the marketing research process.

Lucidchart and the marketing research process

One size does not fit all when it comes to the marketing research process. While the basic steps are applicable to most organizations, they will often be executed very differently. Your organization needs to personalize your process, and Lucidchart makes it easy to do so.

For example, the formality of the marketing research process varies from company to company. Smaller businesses might conduct casual research with a Google survey. A large company, however, might require carefully selected focus groups and formal questionnaires. With Lucidchart, you can customize your marketing research process to fit your organization’s needs.

Marketing research can play a key role in making the right decisions for your company. Developing your own marketing research process will help you achieve even better results from your data collection and analysis, in turn helping you make more informed choices.

Define your marketing research process today with Lucidchart.

About Lucidchart

Lucidchart, a cloud-based intelligent diagramming application, is a core component of Lucid Software's Visual Collaboration Suite. This intuitive, cloud-based solution empowers teams to collaborate in real-time to build flowcharts, mockups, UML diagrams, customer journey maps, and more. Lucidchart propels teams forward to build the future faster. Lucid is proud to serve top businesses around the world, including customers such as Google, GE, and NBC Universal, and 99% of the Fortune 500. Lucid partners with industry leaders, including Google, Atlassian, and Microsoft. Since its founding, Lucid has received numerous awards for its products, business, and workplace culture. For more information, visit lucidchart.com.

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BUS203: Principles of Marketing

Marketing Research: An Aid to Decision Making

Read this chapter. The American Marketing Association defines marketing research this way: "Marketing research is the function that links the consumer, customer, and public to the marketer through information--information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the methods for collecting information, manages and implements the data collection process, and analyzes and communicates the findings and their implications".

Introduction

Having completed this chapter, you should

Understand the role of marketing research
Understand the marketing research process and the techniques employed

DISCOVERING WHY THEY CHEW

Juicy Fruit Gum, the oldest brand of the Wm. Wrigley Jr. Company, wasn't chewing up the teen market, gum's top demographic. In 1997, the company found itself under pressure from competitors. Sales and market share were down. How could Wrigley make more kids chomp on Juicy Fruit?

Their ad agency, BBDO, confirmed what the teens were saying. BBDO asked more than 400 heavy gum chewers to rate various brands by attributes that best represented them. For Juicy Fruit, respondents picked phrases such as "has the right amount of sweetness" and "is made with natural sweetness".

Another study by BBDO looked into why teens chew gum. Was it because they 're stressed out-or because they forgot to brush their teeth before going to school? Nearly three out of four kids said they stick a wad into their mouth when they crave something sweet. And Juicy Fruit was the top brand they chose to fulfill that need (Big Red was a distant second).

Although the marketing research conducted by the Wrigley Co. was fairly simple, it provided a new direction for their marketing strategy. BBDO developed four TV commercials with the "Gatta Have Sweet" theme. Roughly 70 percent of respondents voluntarily recalled the Juicy Fruit name after watching the commercial (the average recall for a brand of sugar gum is 57 percent). Sales of 100-stick boxes of juicy Fruit rose 5 percent after the start of the ad campaign , reversing a 2 percent decline prior to it. Juicy Fruit's market share also increased from 4.9 percent to 5.3 percent, the biggest gain of any established chewing gum brand during the year following the campaign.

FIGURE 3.1 The marketing planning process

Marketing research addresses the need for quicker, yet more accurate, decision making by the marketer. The impetus for this situation is the complex relationship between the business firm and the ever-changing external environment. In particular, most marketers are far removed from their customers; yet must know who their customers are, what they want, and what competitors are doing. Often the marketer relies on salespeople and dealers for information, but more and more the best source of information is marketing research.

It should be noted that most marketing decisions are still made without the use of formal marketing research. In many cases, the time required to do marketing research is not available. In other case s, the cost of obtaining the data is prohibitive or the desired data cannot be obtained in reliable form. Ultimately, successful marketing executives make decisions on the basis of a blend of facts and intuition.

In this chapter, we provide an overview of the marketing research process. We start the discussion with a look at business information. As noted in Figure 3.1, marketing research is applicable throughout the marketing planning process.

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Market research definition

Market research – in-house or outsourced, market research in the age of data, when to use market research.

Types of market research

Different types of primary research

How to do market research (primary data), how to do secondary market research, communicating your market research findings, choose the right platform for your market research, try qualtrics for free, the ultimate guide to market research: how to conduct it like a pro.

27 min read Wondering how to do market research? Or even where to start learning about it? Use our ultimate guide to understand the basics and discover how you can use market research to help your business.

Market research is the practice of gathering information about the needs and preferences of your target audience – potential consumers of your product.

When you understand how your target consumer feels and behaves, you can then take steps to meet their needs and mitigate the risk of an experience gap – where there is a shortfall between what a consumer expects you to deliver and what you actually deliver. Market research can also help you keep abreast of what your competitors are offering, which in turn will affect what your customers expect from you.

Market research connects with every aspect of a business – including brand , product , customer service , marketing and sales.

Market research generally focuses on understanding:

The consumer (current customers, past customers, non-customers, influencers))
The company (product or service design, promotion, pricing, placement, service, sales)
The competitors (and how their market offerings interact in the market environment)
The industry overall (whether it’s growing or moving in a certain direction)

Free eBook: 2024 market research trends report

Why is market research important?

A successful business relies on understanding what like, what they dislike, what they need and what messaging they will respond to. Businesses also need to understand their competition to identify opportunities to differentiate their products and services from other companies.

Today’s business leaders face an endless stream of decisions around target markets, pricing, promotion, distribution channels, and product features and benefits . They must account for all the factors involved, and there are market research studies and methodologies strategically designed to capture meaningful data to inform every choice. It can be a daunting task.

Market research allows companies to make data-driven decisions to drive growth and innovation.

What happens when you don’t do market research?

Without market research, business decisions are based at best on past consumer behavior, economic indicators, or at worst, on gut feel. Decisions are made in a bubble without thought to what the competition is doing. An important aim of market research is to remove subjective opinions when making business decisions. As a brand you are there to serve your customers, not personal preferences within the company. You are far more likely to be successful if you know the difference, and market research will help make sure your decisions are insight-driven.

Traditionally there have been specialist market researchers who are very good at what they do, and businesses have been reliant on their ability to do it. Market research specialists will always be an important part of the industry, as most brands are limited by their internal capacity, expertise and budgets and need to outsource at least some aspects of the work.

However, the market research external agency model has meant that brands struggled to keep up with the pace of change. Their customers would suffer because their needs were not being wholly met with point-in-time market research.

Businesses looking to conduct market research have to tackle many questions –

Who are my consumers, and how should I segment and prioritize them?
What are they looking for within my category?
How much are they buying, and what are their purchase triggers, barriers, and buying habits?
Will my marketing and communications efforts resonate?
Is my brand healthy ?
What product features matter most?
Is my product or service ready for launch?
Are my pricing and packaging plans optimized?

They all need to be answered, but many businesses have found the process of data collection daunting, time-consuming and expensive. The hardest battle is often knowing where to begin and short-term demands have often taken priority over longer-term projects that require patience to offer return on investment.

Today however, the industry is making huge strides, driven by quickening product cycles, tighter competition and business imperatives around more data-driven decision making. With the emergence of simple, easy to use tools , some degree of in-house market research is now seen as essential, with fewer excuses not to use data to inform your decisions. With greater accessibility to such software, everyone can be an expert regardless of level or experience.

How is this possible?

The art of research hasn’t gone away. It is still a complex job and the volume of data that needs to be analyzed is huge. However with the right tools and support, sophisticated research can look very simple – allowing you to focus on taking action on what matters.

If you’re not yet using technology to augment your in-house market research, now is the time to start.

The most successful brands rely on multiple sources of data to inform their strategy and decision making, from their marketing segmentation to the product features they develop to comments on social media. In fact, there’s tools out there that use machine learning and AI to automate the tracking of what’s people are saying about your brand across all sites.

The emergence of newer and more sophisticated tools and platforms gives brands access to more data sources than ever and how the data is analyzed and used to make decisions. This also increases the speed at which they operate, with minimal lead time allowing brands to be responsive to business conditions and take an agile approach to improvements and opportunities.

Expert partners have an important role in getting the best data, particularly giving access to additional market research know-how, helping you find respondents , fielding surveys and reporting on results.

How do you measure success?

Business activities are usually measured on how well they deliver return on investment (ROI). Since market research doesn’t generate any revenue directly, its success has to be measured by looking at the positive outcomes it drives – happier customers, a healthier brand, and so on.

When changes to your products or your marketing strategy are made as a result of your market research findings, you can compare on a before-and-after basis to see if the knowledge you acted on has delivered value.

Regardless of the function you work within, understanding the consumer is the goal of any market research. To do this, we have to understand what their needs are in order to effectively meet them. If we do that, we are more likely to drive customer satisfaction , and in turn, increase customer retention .

Several metrics and KPIs are used to gauge the success of decisions made from market research results, including

Brand awareness within the target market
Share of wallet
CSAT (customer satisfaction)
NPS (Net Promoter Score)

You can use market research for almost anything related to your current customers, potential customer base or target market. If you want to find something out from your target audience, it’s likely market research is the answer.

Here are a few of the most common uses:

Buyer segmentation and profiling

Segmentation is a popular technique that separates your target market according to key characteristics, such as behavior, demographic information and social attitudes. Segmentation allows you to create relevant content for your different segments, ideally helping you to better connect with all of them.

Buyer personas are profiles of fictional customers – with real attributes. Buyer personas help you develop products and communications that are right for your different audiences, and can also guide your decision-making process. Buyer personas capture the key characteristics of your customer segments, along with meaningful insights about what they want or need from you. They provide a powerful reminder of consumer attitudes when developing a product or service, a marketing campaign or a new brand direction.

By understanding your buyers and potential customers, including their motivations, needs, and pain points, you can optimize everything from your marketing communications to your products to make sure the right people get the relevant content, at the right time, and via the right channel .

Attitudes and Usage surveys

Attitude & Usage research helps you to grow your brand by providing a detailed understanding of consumers. It helps you understand how consumers use certain products and why, what their needs are, what their preferences are, and what their pain points are. It helps you to find gaps in the market, anticipate future category needs, identify barriers to entry and build accurate go-to-market strategies and business plans.

Marketing strategy

Effective market research is a crucial tool for developing an effective marketing strategy – a company’s plan for how they will promote their products.

It helps marketers look like rock stars by helping them understand the target market to avoid mistakes, stay on message, and predict customer needs . It’s marketing’s job to leverage relevant data to reach the best possible solution based on the research available. Then, they can implement the solution, modify the solution, and successfully deliver that solution to the market.

Product development

You can conduct market research into how a select group of consumers use and perceive your product – from how they use it through to what they like and dislike about it. Evaluating your strengths and weaknesses early on allows you to focus resources on ideas with the most potential and to gear your product or service design to a specific market.

Chobani’s yogurt pouches are a product optimized through great market research . Using product concept testing – a form of market research – Chobani identified that packaging could negatively impact consumer purchase decisions. The brand made a subtle change, ensuring the item satisfied the needs of consumers. This ability to constantly refine its products for customer needs and preferences has helped Chobani become Australia’s #1 yogurt brand and increase market share.

Pricing decisions

Market research provides businesses with insights to guide pricing decisions too. One of the most powerful tools available to market researchers is conjoint analysis, a form of market research study that uses choice modeling to help brands identify the perfect set of features and price for customers. Another useful tool is the Gabor-Granger method, which helps you identify the highest price consumers are willing to pay for a given product or service.

Brand tracking studies

A company’s brand is one of its most important assets. But unlike other metrics like product sales, it’s not a tangible measure you can simply pull from your system. Regular market research that tracks consumer perceptions of your brand allows you to monitor and optimize your brand strategy in real time, then respond to consumer feedback to help maintain or build your brand with your target customers.

Advertising and communications testing

Advertising campaigns can be expensive, and without pre-testing, they carry risk of falling flat with your target audience. By testing your campaigns, whether it’s the message or the creative, you can understand how consumers respond to your communications before you deploy them so you can make changes in response to consumer feedback before you go live.

Finder, which is one of the world’s fastest-growing online comparison websites, is an example of a brand using market research to inject some analytical rigor into the business. Fueled by great market research, the business lifted brand awareness by 23 percent, boosted NPS by 8 points, and scored record profits – all within 10 weeks.

Competitive analysis

Another key part of developing the right product and communications is understanding your main competitors and how consumers perceive them. You may have looked at their websites and tried out their product or service, but unless you know how consumers perceive them, you won’t have an accurate view of where you stack up in comparison. Understanding their position in the market allows you to identify the strengths you can exploit, as well as any weaknesses you can address to help you compete better.

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Types of market research

Although there are many types market research, all methods can be sorted into one of two categories: primary and secondary.

Primary research

Primary research is market research data that you collect yourself. This is raw data collected through a range of different means – surveys , focus groups, , observation and interviews being among the most popular.

Primary information is fresh, unused data, giving you a perspective that is current or perhaps extra confidence when confirming hypotheses you already had. It can also be very targeted to your exact needs. Primary information can be extremely valuable. Tools for collecting primary information are increasingly sophisticated and the market is growing rapidly.

Historically, conducting market research in-house has been a daunting concept for brands because they don’t quite know where to begin, or how to handle vast volumes of data. Now, the emergence of technology has meant that brands have access to simple, easy to use tools to help with exactly that problem. As a result, brands are more confident about their own projects and data with the added benefit of seeing the insights emerge in real-time.

Secondary research

Secondary research is the use of data that has already been collected, analyzed and published – typically it’s data you don’t own and that hasn’t been conducted with your business specifically in mind, although there are forms of internal secondary data like old reports or figures from past financial years that come from within your business. Secondary research can be used to support the use of primary research.

Secondary research can be beneficial to small businesses because it is sometimes easier to obtain, often through research companies. Although the rise of primary research tools are challenging this trend by allowing businesses to conduct their own market research more cheaply, secondary research is often a cheaper alternative for businesses who need to spend money carefully. Some forms of secondary research have been described as ‘lean market research’ because they are fast and pragmatic, building on what’s already there.

Because it’s not specific to your business, secondary research may be less relevant, and you’ll need to be careful to make sure it applies to your exact research question. It may also not be owned, which means your competitors and other parties also have access to it.

Primary or secondary research – which to choose?

Both primary and secondary research have their advantages, but they are often best used when paired together, giving you the confidence to act knowing that the hypothesis you have is robust.

Secondary research is sometimes preferred because there is a misunderstanding of the feasibility of primary research. Thanks to advances in technology, brands have far greater accessibility to primary research, but this isn’t always known.

If you’ve decided to gather your own primary information, there are many different data collection methods that you may consider. For example:

Customer surveys
Focus groups
Observation

Think carefully about what you’re trying to accomplish before picking the data collection method(s) you’re going to use. Each one has its pros and cons. Asking someone a simple, multiple-choice survey question will generate a different type of data than you might obtain with an in-depth interview. Determine if your primary research is exploratory or specific, and if you’ll need qualitative research, quantitative research, or both.

Qualitative vs quantitative

Another way of categorizing different types of market research is according to whether they are qualitative or quantitative.

Qualitative research

Qualitative research is the collection of data that is non-numerical in nature. It summarizes and infers, rather than pin-points an exact truth. It is exploratory and can lead to the generation of a hypothesis.

Market research techniques that would gather qualitative data include:

Interviews (face to face / telephone)
Open-ended survey questions

Researchers use these types of market research technique because they can add more depth to the data. So for example, in focus groups or interviews, rather than being limited to ‘yes’ or ‘no’ for a certain question, you can start to understand why someone might feel a certain way.

Quantitative research

Quantitative research is the collection of data that is numerical in nature. It is much more black and white in comparison to qualitative data, although you need to make sure there is a representative sample if you want the results to be reflective of reality.

Quantitative researchers often start with a hypothesis and then collect data which can be used to determine whether empirical evidence to support that hypothesis exists.

Quantitative research methods include:

Questionnaires
Review scores

Exploratory and specific research

Exploratory research is the approach to take if you don’t know what you don’t know. It can give you broad insights about your customers, product, brand, and market. If you want to answer a specific question, then you’ll be conducting specific research.

Exploratory . This research is general and open-ended, and typically involves lengthy interviews with an individual or small focus group.
Specific . This research is often used to solve a problem identified in exploratory research. It involves more structured, formal interviews.

Exploratory primary research is generally conducted by collecting qualitative data. Specific research usually finds its insights through quantitative data.

Primary research can be qualitative or quantitative, large-scale or focused and specific. You’ll carry it out using methods like surveys – which can be used for both qualitative and quantitative studies – focus groups, observation of consumer behavior, interviews, or online tools.

Step 1: Identify your research topic

Research topics could include:

Product features
Product or service launch
Understanding a new target audience (or updating an existing audience)
Brand identity
Marketing campaign concepts
Customer experience

Step 2: Draft a research hypothesis

A hypothesis is the assumption you’re starting out with. Since you can disprove a negative much more easily than prove a positive, a hypothesis is a negative statement such as ‘price has no effect on brand perception’.

Step 3: Determine which research methods are most effective

Your choice of methods depends on budget, time constraints, and the type of question you’re trying to answer. You could combine surveys, interviews and focus groups to get a mix of qualitative and quantitative data.

Step 4: Determine how you will collect and analyze your data.

Primary research can generate a huge amount of data, and when the goal is to uncover actionable insight, it can be difficult to know where to begin or what to pay attention to.

The rise in brands taking their market research and data analysis in-house has coincided with the rise of technology simplifying the process. These tools pull through large volumes of data and outline significant information that will help you make the most important decisions.

Step 5: Conduct your research!

This is how you can run your research using Qualtrics CoreXM

Pre-launch – Here you want to ensure that the survey/ other research methods conform to the project specifications (what you want to achieve/research)
Soft launch – Collect a small fraction of the total data before you fully launch. This means you can check that everything is working as it should and you can correct any data quality issues.
Full launch – You’ve done the hard work to get to this point. If you’re using a tool, you can sit back and relax, or if you get curious you can check on the data in your account.
Review – review your data for any issues or low-quality responses. You may need to remove this in order not to impact the analysis of the data.

A helping hand

If you are missing the skills, capacity or inclination to manage your research internally, Qualtrics Research Services can help. From design, to writing the survey based on your needs, to help with survey programming, to handling the reporting, Research Services acts as an extension of the team and can help wherever necessary.

Secondary market research can be taken from a variety of places. Some data is completely free to access – other information could end up costing hundreds of thousands of dollars. There are three broad categories of secondary research sources:

Public sources – these sources are accessible to anyone who asks for them. They include census data, market statistics, library catalogs, university libraries and more. Other organizations may also put out free data from time to time with the goal of advancing a cause, or catching people’s attention.
Internal sources – sometimes the most valuable sources of data already exist somewhere within your organization. Internal sources can be preferable for secondary research on account of their price (free) and unique findings. Since internal sources are not accessible by competitors, using them can provide a distinct competitive advantage.
Commercial sources – if you have money for it, the easiest way to acquire secondary market research is to simply buy it from private companies. Many organizations exist for the sole purpose of doing market research and can provide reliable, in-depth, industry-specific reports.

No matter where your research is coming from, it is important to ensure that the source is reputable and reliable so you can be confident in the conclusions you draw from it.

How do you know if a source is reliable?

Use established and well-known research publishers, such as the XM Institute , Forrester and McKinsey . Government websites also publish research and this is free of charge. By taking the information directly from the source (rather than a third party) you are minimizing the risk of the data being misinterpreted and the message or insights being acted on out of context.

How to apply secondary research

The purpose and application of secondary research will vary depending on your circumstances. Often, secondary research is used to support primary research and therefore give you greater confidence in your conclusions. However, there may be circumstances that prevent this – such as the timeframe and budget of the project.

Keep an open mind when collecting all the relevant research so that there isn’t any collection bias. Then begin analyzing the conclusions formed to see if any trends start to appear. This will help you to draw a consensus from the secondary research overall.

Market research success is defined by the impact it has on your business’s success. Make sure it’s not discarded or ignored by communicating your findings effectively. Here are some tips on how to do it.

Less is more – Preface your market research report with executive summaries that highlight your key discoveries and their implications
Lead with the basic information – Share the top 4-5 recommendations in bullet-point form, rather than requiring your readers to go through pages of analysis and data
Model the impact – Provide examples and model the impact of any changes you put in place based on your findings
Show, don’t tell – Add illustrative examples that relate directly to the research findings and emphasize specific points
Speed is of the essence – Make data available in real-time so it can be rapidly incorporated into strategies and acted upon to maximize value
Work with experts – Make sure you’ve access to a dedicated team of experts ready to help you design and launch successful projects

Trusted by 8,500 brands for everything from product testing to competitor analysis, Our Strategic Research software is the world’s most powerful and flexible research platform . With over 100 question types and advanced logic, you can build out your surveys and see real-time data you can share across the organization. Plus, you’ll be able to turn data into insights with iQ, our predictive intelligence engine that runs complicated analysis at the click of a button.

Related resources

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

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The Importance of Marketing Research in Decision Making (And Next-Level Campaigns)

Why your next campaign needs marketing research. marketing research is your ticket to better campaign decisions..

Looking to get more out of your marketing spend? Are you struggling with the inspiration needed to produce that new, award-winning, paradigm-shifting viral campaign ? In both cases, I cannot overstate the importance of marketing research – and, sure, that sounds a tad biased coming from a market researcher 😉. There’s no need to take my word for it, though. These case studies speak for themselves.

What Is the Purpose of Marketing Research?

You might wonder why it is important to conduct market research in the first place – or whether it’s even necessary at all.

For a small business, hit-and-miss marketing is not only demotivating but also costly (and possibly quite damaging to your reputation). The solution to this is to switch to informed marketing.

Research provides intelligence to guide informed, enhanced decisions. Ultimately, helping you to:

hit the bull’s eye with your target audience ,
increase your campaign success,
and make every penny spent yield greater returns.

Good data saves time, money—and gives you a competitive edge.

Why Market Research Works.

You can liken the importance of marketing research to military reconnaissance. Observing the landscape enables you to identify strategic features, locate your targets and formulate a winning battle plan.

David Ogilvy, arguably the most prolific publicist of our time, thought the same way. He said, “Advertisers who ignore research are as dangerous as generals who ignore the signs of the enemy.”

Ogilvy understood the business value of keeping your messaging on point.

“Write great headlines, and you’ll have successfully invested 80% of your money.”—David Ogilvy.

He advocated the importance of marketing research, knowing that accurate data is a sure-fire way to find those golden nuggets of inspiration.

Research uncovers your market’s thoughts, questions, propensity towards specific behaviour. It provides key insights needed to craft compelling headlines and content that converts

It works because you’re not creating content on a hunch and hoping it will resonate. You’re developing content, campaigns or products that speak to the consumer’s heart based on facts.

Learn from the Big Brands : 3 Case Studies that Illustrate the Impact of Marketing Research.

It makes sense then that international brands invest heavily in market research. Learning from a few case studies, see how multinationals relied on sound research to inform product decisions, to-market strategies, elevate business, and seriously level-up advertising.

First Direct Used Marketing Research to Regain Market Share

The problem:

First Direct (established in 1989 as a telephone bank) expanded into online banking as technology changed with the turn of the century. Despite evolving in line with market trends, the bank struggled to make ground against stronger market competition.

The research:

The market research consultancy used various methodologies similar to ours. These included case study personas <ink to https://sapioresearch.com/persona-research-for-marketing>, user profiles and quantitative research methods like collating stats to indicate customer brand perception. Qualitative research like focus groups and in-depth interviews revealed how customers felt about First Direct’s move to online banking.

The findings:

Customer brand perception research pinpointed weaknesses in customer service as the cause and identified which areas required focus. The research results enabled the bank to make changes that their customer base genuinely appreciated.

The results:

Nowadays, they consistently rank as a top customer service provider. In January of 2021, First Direct was named Britain’s best brand for customer service delivery in the latest Customer Satisfaction Index.

Lego’s Love of Research Lead the Brand to Parity

The problem:

Market research is frequently credited with LEGO’s continued success. Throughout the 20th century, the LEGO market lay firmly with young boys. Commissioned market research revealed that only 9% of their customer base comprised females.

The research:

LEGO made the high-profile decision to rely on qualitative and quantitative research. Lengthy focus groups, case studies and trials lasted over four years and involved research into the habits of 3,500 young girls and their mothers. Data analysis helped quantify consumer interest in female-orientated LEGO

The findings:

Further investigation was commissioned to guide decisions around product development that targeted young girls’ interests.

The results:

LEGO’s ‘Friends’ was launched in 2012. The company confirmed in a press conference that the share of girls among LEGO players had increased sharply since its release.

Mitsubishi Pajero’s Research Failure Folly

There are countless examples of brand wins underpinned by research, but what happens when a brand skips this step?

Mitsubishi found out the hard way, losing significant sales in Spanish-speaking regions. This happened when the Japanese car manufacturer launched the “Pajero”, unaware that this is a derogatory term in Spanish. Their failure to conduct international research before entering the market resulted in a highly costly exercise, ending with the model’s name eventually being changed to “Moderno” in Spain and other Spanish-speaking territories.

Key Take-Away: Research Is the Catalyst for Creativity

Research provides deep insights that encourage product innovations and compelling copy. Nothing quite inspires creativity like a juicy finding that the world needs to know. The right statistic can create an exciting headline that entices readers.

I’d argue that research is as vital for content creation as top-notch copywriters and designers are. But then, of course, I would. I’m a researcher! What do you say? Leave a comment.

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How to Do Market Research: The Complete Guide

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

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

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

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

What is market research?

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

Business intelligence insight graphic with hand showing a lightbulb with $ sign in it

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.

Product Image Advanced Search CRMConnected

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

Market research examples

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

Example 1: Apple’s iPhone launch

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

Example 2: McDonald’s global expansion

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

Example 3: Organic and sustainable farming

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

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

Market research templates

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

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

Strengthen your business with market research

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

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

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

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Market Research Role: Guide to Decision Making in Business

role of market research in business decisions

Published on Apr 11, 2023

With every passing year, businesses are witnessing a rapid shift in consumer behavior. This change in perspective can be based on several factors, such as the introduction of newer tech tools, refined user experience, or price fluctuation in the economy.

Marketers today are exploring innovative ideas to make their content and campaigns viral. However, this might not be the only effective way to make an impression on the audience, especially when it concerns the long-term perspective. To cater to these changing demands, businesses need to formulate a plan worthwhile for the marketing spend while driving decisions based on the current market scenario. For the ship to sail, businesses need to steer their efforts in the right direction. And this can be made possible when they have the right compass for accurate information.

And this change in dynamic has made market research a necessity for small businesses.

Market research forms the crux of averting all kinds of risks - from decision-making to planning and designing methods to market a product or service. It enables businesses to build efficiency for their brand's value by offering them a direct approach to developing a better presence across social platforms. By investing in market research, brands lower their chances of witnessing failures

What is Market Research?

Before understanding the significance of market research, it is important to know what it is. Market research is not just a specific method or activity; it is a driven approach that enables businesses to learn more about their target audience.

Read more: The Ultimate Guide: Tips to Choose a Top Marketing Analytics Company

Market research assists businesses in gathering relevant insights on the target market, along with buyer persona, competitor analysis, and economic market shifts. It guides them to create a blueprint that yields desirable results for their marketing team.

From marketing managers to researchers, everyone takes part in discovering relevant information that could eventually benefit the business. These insights can then be used to design unique advertisements, to achieve the goal of gasping for customers' attention.

A business can choose different means to conduct research and gather relevant information to design a unique marketing strategy and launch it. While primary data accumulation may seem reliable for their existing customers, for a brand to grow, it is important to tap into new audiences. And for that, understanding the customers' thoughts is vital. The ultimate idea is to create a standard decision-making process that is bulletproof and goal-oriented.

While tasks, including surveys and focus groups, can help businesses, they do not always provide the necessary information. Some of the tasks that businesses can undertake as a part of their market research include:

Engaging in short conversations with the consumers who are part of the target market. This will help businesses understand the consumer's perspective and their requirements.

Search relevant social media groups within the target market. This will provide businesses with a free, low-effort way to connect with their target customers online. This will eventually help in promoting the business in the groups.

Integrating survey forms on the website. If you have a website for your small business, it will enable you to offer your potential customers discounts in exchange for filling in a survey.

The above tasks can be included as a vital part of a market research strategy, enabling businesses to know the requirements of their target markets as well as their behaviors and preferences.

Read more: Debt Ceiling Standoff - Will the World’s Renowned Economic Safe Haven go into Default?

Role of Market Research

Market research offers a systematic and objective approach to analyzing relevant information. This implies that businesses create a detailed and carefully designed research plan in which every stage of the research is specified. The research plan helps specify

the research problem in concise terms,

the data required to address the problem,

the approaches to be employed to gather the information

the analytical techniques to be used

Market research (MR) facilitates organizations with relevant, accurate, reliable, and current information. Market research also enables the marketing manager to link the marketing variables with the existing environment and consumers. It helps in removing some of the uncertainties by providing relevant data. Owing to the competitive marketing environment and the ever-increasing costs, businesses are transitioning to market research to accumulate sound information.

Importance of Market Research

Let us explore the significant reasons why market research is important for smaller businesses :

Spot Potential Business Opportunities

A thorough market research presents a clear understanding of whom to reach out to in the targeted customer base, which marketing channels to use to reach them, and their interests. Once these parameters are defined, marketing managers will be able to spot business opportunities like-

Forming partnerships with other businesses. By learning about the customers and their demographics, businesses can identify other small businesses that serve them. They can also approach other businesses for joint promotions to gain mutual benefits.

Create profitable upgrades. Understanding other products and services that customers tend to buy can help in adding or creating new product bundles or upselling to increase the average value.

Identifying new locations to sell to. Knowing the geographical areas of the target customers will help in creating compelling, targeted campaigns.

Read more: US Job Growth Report: Why is the Market Slowing Down?

Lower Risks

Around half of the businesses with employees are not able to survive past the fifth year, as per the data issued by the Bureau of Labor Statistics. To ensure that the business survives for longer, it is important to gain a steady stream of sales and customers. And to do that, market research is vital. Regular market research offers a way to check in with existing and potential customers. Here's how a business can apply this:

Importance of Market Research in Business

Testing modern designs and products before launching them in the market. Businesses can test new launches on a smaller subset of their audience to see if the change would be welcome.

Find out why customers discontinue any product. Ideally, small businesses have recurring customers. But if the customer is not returning, they can conduct a survey to focus on a specific group and identify why they are not making any repeat sales.

Get insights on different problem areas . If the hot-selling product experiences a drop in sales, businesses can conduct research to explore ways of fixing the crisis before it ruins the profits.

Create Relevant Materials for Promotions

It is important to plan the text or images that are put on fliers, websites, or social media accounts with thorough market research. As target customers have already expressed all their needs and frustrations, as a business, you will be in a better position to address the concerns and present new ways to create marketing materials.

Knowing what the customers see in the products and services - if it is a necessity or a luxury - will help in designing product labels, brochures, and websites that fit their perception.

Identifying the age range of customers to understand the type of language to be used in promotional materials.

Simplify Decision-Making

The need for market research arises when making tough business decisions. Instead of relying on arbitrary criteria for the decisions, businesses can undertake market research to discover relevant insights. While not all decisions can be based on market research, many of them can include the following:

where to spend the advertising budget?

identifying the demand for a new product

which products should be discontinued, and which ones can be improved

how to price offers for specific products

Businesses need market research as it offers them solid facts. Through market research, they can make more informed decisions rather than basing their decisions on intuition or guesswork.

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Market Research Role: Guide to Decision Making in Business

Conclusion: The Significance of Market Research

Customers today live in an era where Search Engine has answers to the silliest of questions one can imagine. They hold the power to buy products/services that aren't based on guesses but on thorough research and review. Similarly, for brands to make an impact on their target market, they need to integrate an effective decision-making process. It also depends on how well the marketing managers explore the market trends along with practices and technological shifts while doing market research. However, after gaining a deep understanding of the need for market research, it is important for businesses to commit a dedicated budget to focus on extensive surveys for market research.

New businesses today are exploring ways to boost their sales and customers as soon as possible. And market research can ensure that the incoming traffic of sales and customers doesn't stop coming. By creating elaborate plans to identify the factors that would drive the efficacy of a marketing campaign, marketing managers can include different marketing variables in the brand's strategy.

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Module 6: Marketing Information and Research

The marketing research process, learning objectives.

Identify the steps of conducting a marketing research project

A Standard Approach to Research Inquiries

Marketing research is a useful and necessary tool for helping marketers and an organization’s executive leadership make wise decisions. Carrying out marketing research can involve highly specialized skills that go deeper than the information outlined in this module. However, it is important for any marketer to be familiar with the basic procedures and techniques of marketing research.

It is very likely that at some point a marketing professional will need to supervise an internal marketing research activity or to work with an outside marketing research firm to conduct a research project. Managers who understand the research function can do a better job of framing the problem and critically appraising the proposals made by research specialists. They are also in a better position to evaluate their findings and recommendations.

Periodically marketers themselves need to find solutions to marketing problems without the assistance of marketing research specialists inside or outside the company. If you are familiar with the basic procedures of marketing research, you can supervise and even conduct a reasonably satisfactory search for the information needed.

Steps of the Marketing Research Process: 1. Identify the problem (this includes the problem to solve, project objectives, and research questions). 2. Develop the research plan (this includes information needed, research & sales methods). 3. Conduct research (this includes secondary data review, primary data collection, suitable methods and techniques. 4. Analyze and report findings (this includes data formatting and analysis, interpretation of results, reports and recommendations. 5. Take action (this includes thought and planning, evaluation of options, course adjustment and execution.

Step 1: Identify the Problem

The first step for any marketing research activity is to clearly identify and define the problem you are trying to solve. You start by stating the marketing or business problem you need to address and for which you need additional information to figure out a solution. Next, articulate the objectives for the research: What do you want to understand by the time the research project is completed? What specific information, guidance, or recommendations need to come out of the research in order to make it a worthwhile investment of the organization’s time and money?

It’s important to share the problem definition and research objectives with other team members to get their input and further refine your understanding of the problem and what is needed to solve it. At times, the problem you really need to solve is not the same problem that appears on the surface. Collaborating with other stakeholders helps refine your understanding of the problem, focus your thinking, and prioritize what you hope to learn from the research. Prioritizing your objectives is particularly helpful if you don’t have the time or resources to investigate everything you want.

To flesh out your understanding of the problem, it’s useful to begin brainstorming actual research questions you want to explore. What are the questions you need to answer in order to get to the research outcomes? What is the missing information that marketing research will help you find? The goal at this stage is to generate a set of preliminary, big-picture questions that will frame your research inquiry. You will revisit these research questions later in the process, but when you’re getting started, this exercise helps clarify the scope of the project, whom you need to talk to, what information may already be available, and where to look for the information you don’t yet have.

Applied Example: Marketing Research for Bookends

To illustrate the marketing research process, let’s return to Uncle Dan and his ailing bookstore, Bookends. You need a lot of information if you’re going to help Dan turn things around, so marketing research is a good idea. You begin by identifying the problem and then work to set down your research objectives and initial research questions:

Identifying Problems, Objectives, and Questions
Core business problem Dan needs to solve	How to get more people to spend more money at Bookends
Research objectives	1) Identify promising target audiences for Bookends; 2) Identify strategies for rapidly increasing revenue from these target audiences
Initial research questions	Who are Bookends’ current customers? How much do they spend? Why do they come to Bookends? What do they wish Bookends offered? Who isn’t coming to Bookends, and why?

Step 2: Develop a Research Plan

Once you have a problem definition, research objectives, and a preliminary set of research questions, the next step is to develop a research plan. Essential to this plan is identifying precisely what information you need to answer your questions and achieve your objectives. Do you need to understand customer opinions about something? Are you looking for a clearer picture of customer needs and related behaviors? Do you need sales, spending, or revenue data? Do you need information about competitors’ products, or insight about what will make prospective customers notice you? When do need the information, and what’s the time frame for getting it? What budget and resources are available?

Once you have clarified what kind of information you need and the timing and budget for your project, you can develop the research design. This details how you plan to collect and analyze the information you’re after. Some types of information are readily available through secondary research and secondary data sources. Secondary research analyzes information that has already been collected for another purpose by a third party, such as a government agency, an industry association, or another company. Other types of information need to from talking directly to customers about your research questions. This is known as primary research , which collects primary data captured expressly for your research inquiry. Marketing research projects may include secondary research, primary research, or both.

Depending on your objectives and budget, sometimes a small-scale project will be enough to get the insight and direction you need. At other times, in order to reach the level of certainty or detail required, you may need larger-scale research involving participation from hundreds or even thousands of individual consumers. The research plan lays out the information your project will capture—both primary and secondary data—and describes what you will do with it to get the answers you need. (Note: You’ll learn more about data collection methods and when to use them later in this module.)

Your data collection plan goes hand in hand with your analysis plan. Different types of analysis yield different types of results. The analysis plan should match the type of data you are collecting, as well as the outcomes your project is seeking and the resources at your disposal. Simpler research designs tend to require simpler analysis techniques. More complex research designs can yield powerful results, such as understanding causality and trade-offs in customer perceptions. However, these more sophisticated designs can require more time and money to execute effectively, both in terms of data collection and analytical expertise.

The research plan also specifies who will conduct the research activities, including data collection, analysis, interpretation, and reporting on results. At times a singlehanded marketing manager or research specialist runs the entire research project. At other times, a company may contract with a marketing research analyst or consulting firm to conduct the research. In this situation, the marketing manager provides supervisory oversight to ensure the research delivers on expectations.

Finally, the research plan indicates who will interpret the research findings and how the findings will be reported. This part of the research plan should consider the internal audience(s) for the research and what reporting format will be most helpful. Often, senior executives are primary stakeholders, and they’re anxious for marketing research to inform and validate their choices. When this is the case, getting their buy-in on the research plan is recommended to make sure that they are comfortable with the approach and receptive to the potential findings.

Applied Example: A Bookends Research Plan

You talk over the results of your problem identification work with Dan. He thinks you’re on the right track and wants to know what’s next. You explain that the next step is to put together a detailed plan for getting answers to the research questions.

Dan is enthusiastic, but he’s also short on money. You realize that such a financial constraint will limit what’s possible, but with Dan’s help you can do something worthwhile. Below is the research plan you sketch out:

Identifying Data Types, Timing and Budget, Data Collection Methods, Analysis, and Interpretation
Types of data needed	1) Demographics and attitudes of current Bookends customers; 2) current customers’ spending patterns; 3) metro area demographics (to determine types of people who aren’t coming to the store)
Timing & budget	Complete project within 1 month; no out-of-pocket spending
Data collection methods	1) Current customer survey using free online survey tool, 2) store sales data mapped to customer survey results, 3) free U.S. census data on metro-area demographics, 4) 8–10 intercept (“man on the street”) interviews with non-customers
Analysis plan	Use Excel or Google Sheets to tabulate data; Marina (statistician cousin) to assist in identifying data patterns that could become market segments
Interpretation and reporting	You and Dan will work together to comb through the data and see what insights it produces. You’ll use PowerPoint to create a report that lays out significant results, key findings, and recommendations.

Step 3: Conduct the Research

Conducting research can be a fun and exciting part of the marketing research process. After struggling with the gaps in your knowledge of market dynamics—which led you to embark on a marketing research project in the first place—now things are about to change. Conducting research begins to generate information that helps answer your urgent marketing questions.

Typically data collection begins by reviewing any existing research and data that provide some information or insight about the problem. As a rule, this is secondary research. Prior research projects, internal data analyses, industry reports, customer-satisfaction survey results, and other information sources may be worthwhile to review. Even though these resources may not answer your research questions fully, they may further illuminate the problem you are trying to solve. Secondary research and data sources are nearly always cheaper than capturing new information on your own. Your marketing research project should benefit from prior work wherever possible.

After getting everything you can from secondary research, it’s time to shift attention to primary research, if this is part of your research plan. Primary research involves asking questions and then listening to and/or observing the behavior of the target audience you are studying. In order to generate reliable, accurate results, it is important to use proper scientific methods for primary research data collection and analysis. This includes identifying the right individuals and number of people to talk to, using carefully worded surveys or interview scripts, and capturing data accurately.

Without proper techniques, you may inadvertently get bad data or discover bias in the responses that distorts the results and points you in the wrong direction. The module on Marketing Research Techniques discusses these issues in further detail, since the procedures for getting reliable data vary by research method.

Applied Example: Getting the Data on Bookends

Dan is on board with the research plan, and he’s excited to dig into the project. You start with secondary data, getting a dump of Dan’s sales data from the past two years, along with related information: customer name, zip code, frequency of purchase, gender, date of purchase, and discounts/promotions (if any).

You visit the U.S. Census Bureau Web site to download demographic data about your metro area. The data show all zip codes in the area, along with population size, gender breakdown, age ranges, income, and education levels.

The next part of the project is customer-survey data. You work with Dan to put together a short survey about customer attitudes toward Bookends, how often and why they come, where else they spend money on books and entertainment, and why they go other places besides Bookends. Dan comes up with the great idea of offering a 5 percent discount coupon to anyone who completes the survey. Although it eats into his profits, this scheme gets more people to complete the survey and buy books, so it’s worth it.

Guy with a beard wearing a red hat pushes a stroller while a woman checks the child and talks on her cell phone. Two young people in the background. Seattle hipsters.

For a couple of days, you and Dan take turns doing “man on the street” interviews (you interview the guy in the red hat, for instance). You find people who say they’ve never been to Bookends and ask them a few questions about why they haven’t visited the store, where else they buy books and other entertainment, and what might get them interested in visiting Bookends sometime. This is all a lot of work, but for a zero-budget project, it’s coming together pretty well.

Step 4: Analyze and Report Findings

Analyzing the data obtained in a market survey involves transforming the primary and/or secondary data into useful information and insights that answer the research questions. This information is condensed into a format to be used by managers—usually a presentation or detailed report.

Analysis starts with formatting, cleaning, and editing the data to make sure that it’s suitable for whatever analytical techniques are being used. Next, data are tabulated to show what’s happening: What do customers actually think? What’s happening with purchasing or other behaviors? How do revenue figures actually add up? Whatever the research questions, the analysis takes source data and applies analytical techniques to provide a clearer picture of what’s going on. This process may involve simple or sophisticated techniques, depending on the research outcomes required. Common analytical techniques include regression analysis to determine correlations between factors; conjoint analysis to determine trade-offs and priorities; predictive modeling to anticipate patterns and causality; and analysis of unstructured data such as Internet search terms or social media posts to provide context and meaning around what people say and do.

Good analysis is important because the interpretation of research data—the “so what?” factor—depends on it. The analysis combs through data to paint a picture of what’s going on. The interpretation goes further to explain what the research data mean and make recommendations about what managers need to know and do based on the research results. For example, what is the short list of key findings and takeaways that managers should remember from the research? What are the market segments you’ve identified, and which ones should you target? What are the primary reasons your customers choose your competitor’s product over yours, and what does this mean for future improvements to your product?

Individuals with a good working knowledge of the business should be involved in interpreting the data because they are in the best position to identify significant insights and make recommendations from the research findings. Marketing research reports incorporate both analysis and interpretation of data to address the project objectives.

The final report for a marketing research project may be in written form or slide-presentation format, depending on organizational culture and management preferences. Often a slide presentation is the preferred format for initially sharing research results with internal stakeholders. Particularly for large, complex projects, a written report may be a better format for discussing detailed findings and nuances in the data, which managers can study and reference in the future.

Applied Example: Analysis and Insights for Bookends

Getting the data was a bit of a hassle, but now you’ve got it, and you’re excited to see what it reveals. Your statistician cousin, Marina, turns out to be a whiz with both the sales data and the census data. She identified several demographic profiles in the metro area that looked a lot like lifestyle segments. Then she mapped Bookends’ sales data into those segments to show who is and isn’t visiting Bookends. After matching customer-survey data to the sales data, she broke down the segments further based on their spending levels and reasons they visit Bookends.

Gradually a clearer picture of Bookends’ customers is beginning to emerge: who they are, why they come, why they don’t come, and what role Bookends plays in their lives. Right away, a couple of higher-priority segments—based on their spending levels, proximity, and loyalty to Bookends—stand out. You and your uncle are definitely seeing some possibilities for making the bookstore a more prominent part of their lives. You capture these insights as “recommendations to be considered” while you evaluate the right marketing mix for each of the new segments you’d like to focus on.

Step 5: Take Action

Once the report is complete, the presentation is delivered, and the recommendations are made, the marketing research project is over, right? Wrong.

What comes next is arguably the most important step of all: taking action based on your research results.

If your project has done a good job interpreting the findings and translating them into recommendations for the marketing team and other areas of the business, this step may seem relatively straightforward. When the research results validate a path the organization is already on, the “take action” step can galvanize the team to move further and faster in that same direction.

Things are not so simple when the research results indicate a new direction or a significant shift is advisable. In these cases, it’s worthwhile to spend time helping managers understand the research, explain why it is wise to shift course, and explain how the business will benefit from the new path. As with any important business decision, managers must think deeply about the new approach and carefully map strategies, tactics, and available resources to plan effectively. By making the results available and accessible to managers and their execution teams, the marketing research project can serve as an ongoing guide and touchstone to help the organization plan, execute, and adjust course as it works toward desired goals and outcomes.

It is worth mentioning that many marketing research projects are never translated into management action. Sometimes this is because the report is too technical and difficult to understand. In other cases, the research conclusions fail to provide useful insights or solutions to the problem, or the report writer fails to offer specific suggestions for translating the research findings into management strategy. These pitfalls can be avoided by paying due attention to the research objectives throughout the project and allocating sufficient time and resources to do a good job interpreting research results for those who will need to act on them.

Applied Example: Bookends’ New Customer Campaign

Your research findings and recommendations identified three segments for Bookends to focus on. Based on the demographics, lifestyle, and spending patterns found during your marketing research, you’re able to name them: 1) Bored Empty-Nesters, 2) Busy Families, and 3) Hipster Wannabes. Dan has a decent-sized clientele across all three groups, and they are pretty good spenders when they come in. But until now he hasn’t done much to purposely attract any of them.

With newly identified segments in focus, you and Dan begin brainstorming about a marketing mix to target each group. What types of books and other products would appeal to each one? What activities or events would bring them into the store? Are there promotions or particular messages that would induce them to buy at Bookends instead of Amazon or another bookseller? How will Dan reach and communicate with each group? And what can you do to bring more new customers into the store within these target groups?

Even though Bookends is a real-life project with serious consequences for your uncle Dan, it’s also a fun laboratory where you can test out some of the principles you’re learning in your marketing class. You’re figuring out quickly what it’s like to be a marketer.

Well done, rookie!

Check Your Understanding

Answer the question(s) below to see how well you understand the topics covered in this outcome. This short quiz does not count toward your grade in the class, and you can retake it an unlimited number of times.

Use this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.

Revision and Adaptation. Authored by : Lumen Learning. License : CC BY: Attribution
Chapter 3: Marketing Research: An Aid to Decision Making, from Introducing Marketing. Authored by : John Burnett. Provided by : Global Text. Located at : http://solr.bccampus.ca:8001/bcc/file/ddbe3343-9796-4801-a0cb-7af7b02e3191/1/Core%20Concepts%20of%20Marketing.pdf . License : CC BY: Attribution
Urban life (Version 2.0). Authored by : Ian D. Keating. Located at : https://www.flickr.com/photos/ian-arlett/19313315520/ . License : CC BY: Attribution

Marketing Research: Process and Systems for Decision Making

Marketing managers require current, reliable, useful information to make effective decisions. In today's highly competitive global economy, marketers need to exploit opportunities and avoid mistakes if they are to survive and be profitable. Not only is sound marketing research needed, but also a system that gets current, valid information to the marketing decision maker in a timely manner.

This chapter is concerned with the marketing research process and information systems for decision making. It begins by discussing the marketing research process that is used to develop useful information for decision making. Then, marketing information systems are briefly discussed. The chapter is intended to provide a detailed introduction to many of the important topics in the area, but it does not provide a complete explanation of the plethora of marketing research topics.

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Chapter Objectives Structure Of The Chapter The role and limitations of marketing research A definition of marketing research The purpose of the research Clear, concise, attainable, measurable and quantifiable objectives The need to set a time horizon for marketing research A reporting period The research proposal Step 1: Problem definition Step 2: Hypothesis generation Step 3: Decision on type of study Step 4: Decision on data collection method Step 5: Development of an analysis plan Step 6: Data collection Step 7: Analysis of data Step 8: Drawing conclusions and making recommendations Chapter Summary Key Terms Review Questions Chapter References

· Define the role of marketing research in decision making · Outline the contents of a research brief · Outline the contents of a research proposal, and · Explain in detail each of the principal steps in research design.

y = f(x 1 )..(fx 2 )...f(x n )...

"Marketing research is the systematic and objective search for, and analysis of, information relevant to the identification and solution of any problem in the field of marketing."

· the purpose of the research · the objectives stated in a clear, concise, attainable, measurable and quantifiable way · a time horizon · a resource allocation, including the budget and facilities · a reporting period.

· means the same thing to all concerned · does not ask for irrelevant information · defines the relevant populations to be measured · identifies the correct variables to be measured · specifies the degree of accuracy really needed within the main results · specifies an order of priorities when the sample has to be broken down for the purposes of analysing data for subgroups, and · does not pre-judge the selection of research techniques and procedures.

"Red meat consumption increases as real disposable incomes increase."

"There is no relationship between red meat consumption and the level of disposable incomes."

"There is no relationship between a farmer's educational level and his degree of innovativeness with respect to new farming technologies."

· Is it known how each and every question is to be analysed? (e.g. which univariate or bivariate descriptive statistics, tests of association, parametric or nonparametric hypotheses tests, or multivariate methods are to be used?) · Does the researcher have a sufficiently sound grasp of these techniques to apply them with confidence and to explain them to the decision-maker who commissioned the study? · Does the researcher have the means to perform these calculations? (e.g. access to a computer which has an analysis program which he/she is familiar with? Or, if the calculations have to be performed manually, is there sufficient time to complete them and then to check them?) · If a computer program is to be used at the data analysis stage, have the questions been properly coded? · Have the questions been scaled correctly for the chosen statistical technique? (e.g. a t-test cannot be used on data which is only ranked)

"...a process of resolving data into its constituent components, to reveal its characteristic elements and structure."

15-21 years ___ 22 - 30 years ___ Over 30 years ___

How old are you? ___ Years

· must know · should know · could know

1 Name the 3 key words used in the definition of marketing research by Green, Tull and Albaum. 2. Define the term 'hypothesis'. 3. What are the 3 types of research described in this chapter? 4. What are the main items of information which should be included in a research brief? 5. Name the 3 factors which determine which is the appropriate statistical test to conduct on data obtained from a random sample. 6. What is the aim of exploratory research? 7. Name 4 characteristics of a good research brief. 8. Why is it important to devise a data analysis plan before collecting the data?

Using Market Research to Inform Strategic Decision Making

Market Research

At Alchemer, we often discuss technical market research best practices that enable our audience to get the most insight possible out of their research data. However, every once in a while it’s important to take a step back and address things from a higher-level perspective.

In this post, we will discuss the overall impact that market research can have on strategic decision making in today’s business landscape, and why market research is absolutely critical to business success.

Market Research is Critical to Business Success

Due to the rate of progression that we are experiencing with technology in modern times, business landscapes and markets are rapidly changing at all times.

This means that decisions and strategies that were implemented in the past — and have proven to be successful for business growth — must be consistently re-evaluated to determine if there is a newer, better, or more effective strategy that can be implemented today.

This is where market research can be leveraged to evaluate strategies, and to make smarter business decisions.

Data resulting from market research should drive strategic decision-making processes across the organization.

By proactively performing market research on a routine basis, various teams and organizational leaders across departments will have access to data they can leverage when making a final decision.

Imagine a CEO that is considering making an acquisition of a separate company in order to enter a new market. This CEO would certainly want to do their due diligence by performing market research that will inform him or her of the current conditions of the target market.

Another great example of when market research is imperative to business success is when launching a new product.

Product developers must examine market research data thoroughly to ensure that the investments required to develop and promote a new product are worth it. As markets continuously shift and evolve, these product developers must constantly examine trends to determine how they can best impact the market.

Market research can also benefit an organization internally..

For example, by digging into market research data, a marketing team can develop specific and unique buyer personas, off of which the business’ marketing strategy can be based.

Performing market research to understand the archetypal personas that typically purchase a product then allows companies to market directly to their true audience, which enhances the efficacy of their promotional communications.

Using Market Research to Avoid Personal Biases

The examples above of how market research can benefit a business by allowing them to make more strategically informed decisions all have one thing in common: They leverage market research data as their strategic compass in the marketplace and to avoid personal biases.

Whether it’s a CEO considering an acquisition of a competitor, a marketing leader building out buyer personas, or a product developer looking for their next best product, personal biases always play a factor in decision making.

An aggressive and revenge-driven CEO could have the dream of acquiring a particular competitor after the competitor’s leadership team slandered him or her in an interview. While this is an extreme example, it highlights how personally motivating biases can cloud effective judgement during decision making.

If a product developer has been nurturing and growing the idea for a new product, they might grow personally attached to their own idea. Even if there is not a true need or desire for the new product in the market, the product developer may push to have the product launched just because they want to see the project that they have invested so much in finally come to fruition.

These are cases in which objective market research data can either qualify or disqualify particular insights, goals, or motivations that people might personally maintain.

Personal biases and motivations should always be considered as part of the overall decision making process. While people will always get their emotions involved in decision making, and that is not always a bad thing, it is absolutely imperative to perform thorough market research so that the resulting data can either support your idea, or suggest that you find another strategical avenue to venture down.

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5 reasons why marketing research is important to your business

Marketing research is a critical tool that businesses and organizations use to gather valuable information about their target market and industry. By conducting research, companies can gain insights into customer needs, preferences, and behavior, as well as market trends and the competitive landscape. In this article, we'll explore five reasons why marketing research is important for businesses and organizations.

5 reasons why marketing research is important

Is your company on the fence about investing in marketing research? If so, read on for five reasons why marketing research is important to the viability and longevity of your business.

1. Marketing research helps businesses understand their customers.

Knowing your customers is the first step in running a successful business. And while this may sound simple enough, it can be difficult to look inside the consumer psyche—one whose needs, preferences, and behaviors are ever-evolving.

Fortunately, marketing research can give you a peek behind the curtain, helping you understand what motivates current as well as potential customers. A marketing research survey , for example, can provide insight into pricing sensitivity among a segment of your target population. The data yielded may suggest that boomers are more likely to purchase a product based on price alone while millennials are more motivated by the values of the respective company. Based on this information, you can tailor your offerings to better meet these needs.

Let’s take a closer look at what else marketing research can tell you about your target audience.

a. Marketing research reveals demographic data.

Through conducting surveys, you can better understand characteristics of your buyers, like age, gender, race, and ethnicity. You can also collect socioeconomic information like education, income, and employment status. These variables can help you engage in audience segmentation, which essentially involves tweaking your brand messaging to appeal to various subgroups.

b. Marketing research illustrates purchasing behavior.

Marketing research tools like surveys, transaction tracking, and social media tracking can also shed light on when, why, how, and what consumers are buying. A better understanding of purchasing behavior can help your company develop brand messaging that strikes a chord with its target audience. If consumers tend to shop between the hours of 5 and 8 p.m., for instance, your company may send an email coupon at 4:45 p.m. to prime that behavior.

c. Marketing research helps companies appeal to potential customers.

It’s important to learn as much as possible about your current customers. However, it’s equally important to learn about people who are at the beginning of the customer journey. A deeper understanding of what motivates these individuals can help your business turn clicks into conversions.

2. Marketing research helps businesses manage risk.

Risk is an intrinsic part of the business world. However, by understanding market trends and customer behavior, businesses can anticipate changes in demand and adjust their strategies accordingly. Market research can also help businesses identify potential obstacles or challenges and develop contingency plans to mitigate those risks.

For example, let’s say a company hopes to introduce a new product to the market. Before investing significant time and financial resources into product development, market researchers may conduct a series of surveys to determine if consumers are even interested in the respective product. This mitigates the risk of introducing a good for which there is no demand.

Other examples in which marketing research can be used as a tool for mitigating risk include:

Conducting ad testing to determine if brand messaging resonates with consumers
Hosting product development focus groups to receive feedback before revealing a new product to the larger market
Organizing customer satisfaction surveys at various points of the customer journey to determine any issues affecting sales
Administering price testing to determine the ideal price for a new product

3. Marketing research helps businesses stay competitive.

Marketing research gives companies a competitive edge in many ways, one being a greater awareness of the industry itself. By understanding what other businesses are doing, your company can develop strategies to differentiate itself and stay ahead of the curve. For example, if research indicates that laundry detergent manufacturers are increasing prices, a company can either decide to a) keep up with the times and increase costs, b) keep costs the same, or c) decrease pricing to appeal to a specific target market.

Marketing research also helps companies determine areas where they may be falling behind. If several healthcare conglomerates are expanding telehealth services, it would be wise for a hospital to also make moves to provide digital appointments. Otherwise, patients may take their business elsewhere.

How else can marketing research help your business stay competitive?

a. Marketing research aids in trendspotting.

It’s important for companies to keep up with industry patterns. However, it’s also important for companies to predict patterns before they even happen. The fashion industry provides a good example of this. Trend forecasters analyze decades—centuries even—of socio-cultural data in an attempt to be the first company to put out a ‘hot’ new product that appeals to modern sensibilities.

b. Marketing research allows businesses to identify gaps in the industry.

Similarly, marketing research can help companies realize a demand that has yet to be satisfied. Through marketing research surveys, for instance, an organic snack food company may see that consumers are craving more savory gluten-free snack options. Using this data, the company can one-up competitors by introducing a new product.

4. Marketing research gives businesses the tools to measure success.

Net profit is an important indicator of a company’s success. However, if profits are plummeting, it can be difficult to know if this is because of your company’s performance or industry-wide factors like increased materials costs and decreased demand. Because of this, businesses must rely on a more holistic approach to evaluating success.

Fortunately, marketing research can be a helpful tool if you want to measure business health using more than dollar signs. Here’s how marketing research can help you gauge company success.

a. Marketing research provides insight into customer satisfaction.

Sure, your company could be making money. But if your customers aren’t satisfied, your financial gains are likely to be short-lived. To determine if customers are happy with your products or services, you can conduct a customer feedback survey questionnaire.

Alternatively, you may choose to conduct a longitudinal panel survey . Unlike an ad hoc survey, which takes a snapshot of consumer opinions and behaviors, longitudinal studies (like monthly or quarterly trackers) monitor how consumer attitudes change over time. This tool is especially helpful if you want to see how customer satisfaction changes after the introduction of new protocols or training methods.

b. Marketing research helps businesses assess employee satisfaction.

A financially profitable company isn’t necessarily successful if its employees aren’t satisfied. To assess this metric of success, you can conduct surveys, in-person interviews, or focus groups. The results from these marketing research assessments may also shed light on the efficiency of your staff.

c. Marketing research provides insight into the performance of competitors.

It can be constructive to compare your company’s performance to that of competitors. This can help you understand if dips or rises in profit are unique to your company or simply an industry trend.

5. Marketing research helps businesses make informed decisions.

For decades, companies have made key business decisions based on gut feelings alone. But the new age of marketing revolves around data-driven decision-making: a process in which business decisions are informed by metrics and analytics. This contemporary model helps companies make solid choices that reduce risk while improving performance.

Since marketing research lends itself to data generation, it’s an integral part of this equation. For example, data yielded from a brand awareness survey may illustrate that men aged 50 to 65 in a specific geographic area are the least familiar with the brand. Using this information, the company can invest marketing dollars in a way that will yield true results.

Other examples of using marketing research to support data-driven decision-making include:

During a focus group, a company discovers that 60% of women are dissatisfied with the playback speed options of an audiobook app. In response, software developers dedicate time and financial resources to adjusting that feature.
Survey data reveals that as the price of microwaves increases, so does customers’ perceived value of the product. With this in mind, a company chooses to increase prices by 30%.
A popular food chain conducts a series of phone interviews to assess customer service at various locations. Afterward, the company mandates that employees at the restaurants with the lowest reviews take customer service training courses.

All this to say, marketing research has many different applications. By gathering data about customer preferences, market trends, and industry dynamics, businesses can make decisions based on facts rather than assumptions or intuition. This can help businesses avoid costly mistakes and increase their chances of success.

Conduct high-quality marketing research with Kantar

Marketing research is a critical tool that businesses and organizations can use to gather valuable information about their target market and industry. By conducting research, businesses can gain insights into customer needs and behavior, stay competitive, make informed decisions, manage risk, and measure success.

And during VUCA times (volatile, uncertain, complex and ambiguous), keeping a consistent pulse on consumer sentiment and behavior is essential to driving the right decisions for business growth.

However, in today's rapidly changing business landscape, marketing research can feel complicated and overwhelming. That’s where Kantar comes in. As an industry leader, we provide tips and tools to help you navigate each step of the marketing research process, from survey design to data visualization.

Want to get started? Speak to our award-winning team to learn how we can help you conduct marketing research.

Want more like this?

Read: Survey sample questions and templates

Read: Everything you need to know about data quality

Run your survey research with your rules

Five Questions To Ask Yourself To Get The Most Out Of Your Customer Interviews

Senem Guler Biyikli , Analyst

AJ Joplin , Senior Analyst

Interviewing is a key method for customer research due to the rich qualitative data it provides. This data can then be used to inform your design process to ensure that you’re creating experiences that meet customers’ goals. To make sure customer interviews are successful and produce data that drives decision-making, you need to have a research plan and clear objectives, but companies sometimes skip that step and conduct interviews without adequate planning and clear focus. To ensure that you’re making the most of your customer interviews, ask yourself these five questions:

Do we have a clearly articulated hypothesis or problem statement? Use existing quantitative and qualitative data and strategic imperatives to help you shape this statement. Don’t be afraid to make declarative statements that summarize what you know to date. This will inform your line of questioning. These statements are also the beginning of a storyline. Not creating clear hypotheses or problem statements is the fastest way to knock your research off course in terms of time, money, and results.
What does our research plan look like? Customer research is an opportunity to not only gain valuable customer insight but to also deepen collaboration and influence across a broader team by connecting research to strategic priorities. Use this opportunity when planning for interviews, as well. Employ a planning tool such as Forrester’s Customer Research Canvas to organize your research efforts strategically and demonstrate how customer interviews will contribute to these efforts and decision-making.
Have we interviewed internal partners who would have working knowledge of this problem? Interviewing internal partners or stakeholders help us better define the questions we need to ask customers. Novice researchers often fall into the trap of choosing internal research participants based on their seniority and not on their understanding of, or proximity to, the problem. Avoid this mistake by determining the roles whose perspective would be the most important to solve the problem at hand. Understand their goals and perspective on the problem or hypothesis, and use that information to ensure that customer interview questions target the right problem.
Are we asking questions that can only be answered through an interview? Time with customers is precious. If you can obtain the same data through other means (e.g., system reports, surveys, call logs), don’t waste time asking for it during the interview. Consider the diversity of research methods that you can use or may have already been used by others in your organization to collect the data you desire.
Are we changing our questions too often? When conducting interviews, we often see patterns quickly emerge. If you swap out questions or decide not to ask some of your well-informed questions after just one or two interviews, the study will lack consistency and you will miss out on insights. Don’t be afraid to reword questions for simplicity, however. For example, if you ask a question and find yourself spending a lot of time clarifying what you’re asking, the question might be unclear. If you aren ’ t seeing patterns after five to eight interviews, one or more of these situations may be at play:
Your questions and your research hypothesis may be out of alignment.
Your pool of research participants might have too much variability given the scope of your hypothesis.
You may need to interview more participants because the problem area is more complex or nuanced than originally determined.

It can take time to become a skilled interviewer. These tips are by no means exhaustive or a substitute for skilled research expertise but rather a window into the challenges you might face and how you might overcome them. If you’re a Forrester client and would like to discuss this topic further, set up a conversation with us  here . You can also follow or connect with us — Senem Biyikli and AJ Joplin — on LinkedIn.

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Stay tuned for updates from the Forrester blogs.

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06-18-2024 MARKETING INNOVATION

AI is revolutionizing the market research industry. Here’s how—and why

Artificial intelligence (AI) offers marketing leaders the ability to understand the “why” behind customer motivations, preferences, and behaviors on a deeper, more granular level.

[Source Photo: Ron Lach /Pexels]

BY Ron Howard 3 minute read

In a groundbreaking shift for the marketing world, artificial intelligence (AI) is granting professionals a power previously out of reach—the ability to deeply understand the elusive “WHY” behind consumer behavior and feedback. This significant advancement in AI technology means marketers can now review and digest vast amounts of qualitative data, processing thousands of responses with precision to not only expose comprehensive insights but also strategically arrange them. This capability presents a transformative opportunity for marketers to gain detailed, actionable understanding of customer motivations, preferences, and behaviors, driving more effective, precisely targeted strategies—within minutes.

It seems so obvious but so many companies are desperate to find out “why” yet avoid asking the question directly when they execute research studies. They often give participants a set of choices that they think may be “why,” but that is such a poor substitute for allowing participants to tell you in their own words, expressing their views along with enthusiasm, or anger, or confusion, or in other ways.

Sadly, many companies have long avoided the use of open-end qualitative questions in their research studies. And the reason goes to the heart of what AI fixes: qualitative open-end responses are very complicated to interpret. It takes a great deal of analyst time and expertise to accurately extract the primary and subtle meanings expressed in open-end responses. Furthermore, what is the message expressed by specific segments such as young people versus older, men versus women, Republicans versus Democrats, or current customers versus lapsed customers. Again, it’s very expensive to analyze multiple open-end questions for a number of audience segments.

Use AI To Better Understand Consumers

AI’s capability extends beyond understanding consumer behavior, offering a lens into the work-life dynamics that influence these behaviors. By dissecting the complex interplay between professional and personal spheres, AI equips marketers with a deeper awareness of how work-life balance—or the lack thereof—affects consumer choices. This holistic understanding empowers marketers to tailor their strategies not only to the immediate needs and wants of their audience but also to the broader context of their lives, enhancing personalization and relevance.

The fusion of work-life insights with consumer behavior analysis heralds a new frontier in marketing. It offers a more nuanced appreciation of the factors driving consumer decisions, ensuring that marketing campaigns are not only effectively targeted but also resonate on a more personal and human level. As boundaries between work and personal life become increasingly fluid, the impact of these shifts on consumer behavior becomes more significant. AI’s ability to untangle these influences is a testament to its transformative potential in market research.

The intersection of AI and market research transforms vast volumes of qualitative, text-based data from a challenge to be managed into a valuable asset to be leveraged. This shift enables companies to move beyond the superficial layers of data analysis, reaching a deeper understanding of their consumers, markets, and themselves.

A New Frontier For Marketing

The true potential of AI in market research lies in its ability to process natural language responses at scale, understanding nuances and variations in human communication that would take humans considerably longer to analyze. This helps save time and money, and enriches the data pool with a depth of insights previously too costly to consider. Properly directed, AI can author amazingly insightful reports that expose the most important issues expressed in responses. It can also reveal secondary subtle motivations that truly tell the story, all in minutes, without fatigue, and without bias—based purely on the responses provided.

Looking forward, the role of AI in market research is set not just to grow, but to become indispensable. The richness of insights available through open-ended questions, when combined with the analytical power of AI, holds the promise of a future where the motivations, preferences, and unmet needs of consumers are understood with unprecedented clarity.

Companies that are early adopters of this integrated approach to asking “why” and employing AI-driven analysis will not only gain a competitive edge but will also forge stronger, more meaningful connections with their audiences. These connections are built on a foundation of genuine understanding.

The question of “why,” powered by the capabilities of AI, is more than just a methodological choice. It represents a strategic imperative for those looking to navigate the complexities of modern markets and consumer behavior with confidence. The future belongs to those who ask, listen, and act on the truths revealed by their audiences.

Recognize your technological breakthrough by applying to this year’s Next Big Things in Tech Awards before the final deadline, July 12. Sign up for Next Big Things in Tech Awards notifications here .

ABOUT THE AUTHOR

Ron Howard is the CEO of Mercury Analytics , a research technology firm that helps companies use better technology to drive better insights, and better decisions. More

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How to use web scraping for marketing and product analytics

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Business success depends not only on technical implementation but also on careful analytical work and planning. To avoid losing time and money, it is better to study the market at once: analyze demand, competitors, target audience and external factors so that you can make decisions based on real market opportunities rather than on your hunches.

Qualitative research opens new trading opportunities, helps to reveal the competitors’ advantages, and explores the target audience’s desires. Companies that analyze the market reach their expected revenue levels faster.

What is data-driven marketing?

Data-driven marketing is marketing based on analyzing large amounts of information about all business processes, mostly about consumers. Now marketers spend over $6 billion annually to create solutions using data management platforms and demand-side platforms to get their message out to users. More than 60 percent of companies are actively using big data to:

monitor the sales funnel’s viability
research commercial offers and marketing campaigns
retain the target audience’s attention
choose the best advertising channels
proper allocation of the advertising budget.

Data-driven principles are simple: you make decisions based on an analysis of numbers. Intuition and personal experience take second place. Specialists must be able to interpret data and make hypotheses. In addition, you should take care of how to mine, store and visualize those numbers. This will require both meters and analytics services, as well as technology: machine learning, predictive analysis and artificial intelligence. Classic data-driven marketing helps:

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compile an accurate portrait of the target audience, followed by segmentation
track channels for attracting traffic
create personalized campaigns
test advertising channels and find the most profitable ones
predict the reaction of the audience to advertising
expand the customer base
work with clients by collecting and analyzing feedback, recommendations, evaluations
improve the customer experience
develop offers that are relevant to the audience.

By collecting statistics over periods, which you need to systematize somehow, you will find correlations and create models of audience behavior, predict sales and set KPIs.

How do companies gather data?

Companies collect data in different ways from almost every corner of the internet. Some methods are highly technical, while others are more deductive. Information can either be collected or bought.

Some data vendors offer already compiled compilations, but they may not contain the values you need. And you won’t have the ability to collect or augment them.

Data collected by yourself or with the help of a third party is more complete and always up-to-date. You’ll be able to aggregate it independently according to your needs and business requests and work with it as you want. Companies use different tools to collect data:

web scraping
feedback form
email form to receive newsletters
form for registration and creation of a personal account
questionnaire to participate in the loyalty program
form for filling in contact data to place an order
registration through social networks
cookies, Google Analytics, Google Keyword Planner.

Those companies that maximize data collection and know how to work with it run almost all of their operations: marketing, sales, staffing, updates and enhancements, deliveries. The more data they collect, the more information they will have about their users, and more importantly, they understand the context of what they do.

What is web scraping?

Web scraping is an automated process of extracting data from certain site pages according to certain rules using bots. A bot is a program in any programming language whose logic of operation is aimed at retrieving data from websites.

The bot’s task is to retrieve web page HTML code that contains information it is interested in. After receiving the code, scraper analyzes it, extracting all necessary data. This way, the bot can open all possible site pages and get information.

Web scraping can be used to gather any information useful for businesses, whether it’s data about users, products, competitors, and so on. Everything we talked about in data-driven marketing and will talk about below can be obtained through scraping.

Web scraping: is it legal?

The ultimate question is about how you plan to use the extracted data. In many countries, it is legal to collect data for public consumption and use it for analysis, for example. But it is always illegal to collect confidential information without permission for sale or to use the material as your own without identifying the source.

Websites have their own “Terms of Use” and copyright information, which can be found on the homepage that state how their data can be used and how you can access their site. It’s a good idea to check through the website’s terms of use before beginning any scraping project.

Scraping also falls under several legal provisions. Some of them are Violation of the Computer Fraud and Abuse Act (CFAA) , Violation of the Digital Millennium Copyright Act (DMCA) , Copyright Infringement .

Why conduct a market analysis?

Market analysis is the collection and processing of information about the environment in which an enterprise will operate or is already operating. Usually aimed at reducing the risks of entrepreneurial activity. The results obtained allow making management decisions, which are always accompanied by risk in conditions of constant market changes and uncertainty in the behavior of both consumers and competitors. It should be conducted when you:

need to make decisions aimed at business development
need an objective assessment of your company’s performance
need to launch a new line of products or services
need to choose a company’s exit strategy from a crisis.

The final work results and company stability depend on this information. Market analysis is needed for:

price optimization
lead generation
competitor monitoring
trend monitoring
investment decision making
reputation monitoring.

How to conduct a market assessment

The set of trackable metrics is formed directly from the objectives. Focus on key parameters and collect data on factors that accurately or at least hypothetically influence those metrics.

Don’t collect data just in case. Data-driven marketing should help you optimize your business, not waste all of your resources on collecting useless information.

General market activities study

To clearly define a segment and niche for a detailed analysis of the commodity market, it requires data on market capacity, dynamics, and changes.

Market capacity is the market size of a particular product or service, expressed in the total volume of product sales over a given calculation period. It is usually calculated for a specific territory and a certain period and depends on:

price levels;
a product’s consumption size;
quality of goods;
The availability of similar ways to satisfy the same need;
marketing and advertising campaigns.

Based on the capacity indicator you can estimate the prospects for sales growth and the maximum income that can be obtained in the selected segment.

To determine the dynamics and prospects of the market, take the capacity figures for the last 5 years and determine whether there is an increase in demand for goods? If demand is increasing, then the dynamics are positive; if it is decreasing, then the dynamics are negative. If the indicator is negative, find out the reasons, assess the situation and other proposals in the market, and then make a decision – is it worth entering the market or not.

Demand and target audience analysis

The next step is to determine the category of customers who bring most of the company’s income. Consumers are divided into groups based on general characteristics: age, gender, social status, income level and others. In the course of such work, we consider not only consumer inclinations and customs, habits and preferences, but also clarify the reasons for the behavior of specific consumer groups. This makes it possible to anticipate the future structure of their interests.

The demand for the product is determined by:

customer income and preferences
product price
the number of people who are looking for the product
how much they are willing to pay
the number of products available for purchase.

Demand for products will show how much customers are interested in the product at a particular time or are in the mood to buy. To analyze demand as accurately as possible, determine market geography and target audience. Look for data to estimate the market in:

official statistics
special services
user generated content (forums, blogs, discussions, etc.)
marketing research
search queries.

How to analyze demand

Demand analysis for a product or service will help you understand how much demand there is for the offer and track the dynamics of users’ interests. Collect information before analyzing. It can be obtained through:

the trial run of advertising and research advertising competitors
study of competitors
monitoring demand with the help of ready-made services.

A survey is a simple and common way to collect data that can be conducted online. Answering the questions will help determine customer expectations and reactions to the product launch, how people will position the new product, what they would like to change in existing products or expect to see in new ones and trace market-shaping patterns.

Questions are created according to the needs of the business using tools such as Google Forms, Oprosso, Examinare. Or ready-made templates from the Internet are used. These can be found on Survio, Typeform, or QuestionPro.

Advertising research

A test advertising campaign is a good starting point for testing product demand. You can place ads in Google or Bing to evaluate the interest of buyers, the value of the offer, the effectiveness of the UTP, the cost of the targeted action, the approximate amount of traffic, the size of the advertising budget, and its payback.

With Facebook Ads Library you can check the contextual advertising of competitors, what is being used in the ads to attract customers and find out how many users of social networks correspond to your audience.

Google Keyword Planner is a tool designed to collect and forecast keyword query statistics and create new advertising campaigns. The service displays average number of search queries by keyword and close variants per month; analyzes word statistics; gets forecasts for existing campaigns; shows a list of words that competitors use for advertising.

Competitor research

If you are launching a new and unique product, you shouldn’t be afraid of competition in your segment. In other cases, you need to study the advantages and disadvantages of competitors in advance.

Study both direct and indirect competitors, they are all a valuable source of information. Pay attention to those who work in the market for a long time and even in a crisis keep the bar and those who lag, to take into account their mistakes. All the information gathered will show who you will have to deal with when you enter the market. Be sure to look at:

Site: its traffic, functionality, traffic sources, visitor demographics, offerings, promotion tools, and keywords by which users find the site.
Assortment of products, their ratings, prices, delivery methods, and return conditions.
Customer reviews, ratings, and ratings of customers – what attracts or discourages customers, what their choice is based on.

For a more detailed analysis of competitors, tools and services such as SimilarWeb, SEMRush, Spywords, Screaming Frog, Marketing Grader, and others are used.

Trend analysis

Analyzing trends will give you an understanding of how your business is performing and predict where current business practices will lead. They can provide information on what’s best to do and what’s not. For example, this applies to investing.

You can use trend analysis to improve your business by identifying successful areas, tweaking the development of lagging areas, and providing evidence for decision-making.

To find out what’s trending, use Google Trends or Twitter Trend Takeover.

Google Trends

Google Trends is used to assess general trends in demand dynamics on Google. Such information is especially useful for large stores or when starting to sell new products. The service allows you to select a region, set a period, and look at the situation in searches for images, news, products, and YouTube. Google Trends has a feature that compares trends for related queries.

Twitter trend takeover

Trends on Twitter appear in or near each user’s feed and display the latest popular topics that you can use for market research and trending.

Also, Facebook used to have a “Trending” section to keep users updated. Current topics showed headlines that people were talking about all over Facebook. Unfortunately, Facebook has removed this feature.

Data visualization

It is difficult to conclude the results of a study if the information is not organized. To make the analysis more efficient and convenient, structure the data; otherwise, all the information collected will be hard to comprehend. Present the information in graphs, charts, tables, histograms, or maps. Usually, analysis tools visualize the data at the same time. You can also use special services, such as Google Charts, Tableau, Qlik, Infogram, Orange, Power BI.

When analyzing and visualizing market trends, it is best to combine data from Google Trends and Keyword Planner with data from website scraping for a more complete picture of what is happening. For the analysis, data from 500M products from more than 1.1M stores on the Shopify platform was gathered for November 2021.

We’ll put the number of search queries from Google Keyword Planner and the number of products added to stores into relative figures, like Google Trends, where 100 is peak popularity and 0 is no data.

Example: Vitamin C serum

Vitamin C serum is currently one of the top products in demand, according to online searches. Interest in the product has gradually grown and has remained steadily popular for several years, which is also shown in the chart below. It’s coupled with a growing interest in skin health.

Example: Massage guns

Body massage guns have become very popular on the market of massagers, which has attracted the stores’ attention. In the comparative graph, you can see the positive dynamics of demand for the product and how soon online stores began to add automatic massagers to their assortment. The peak of interest came in Q1 2021 and is still not subsiding.

Example: Overshirts

Recently, there has been an increase in requests for oversize shirts, designed to be worn over other things like a jacket. That is why they are called overshirts, they are versatile. Over time, interest in the product is only increasing, as can be seen in the chart. The peak of interest came in Q3 2021, when overshirts became a fashion trend.

Example: Yoga mats

In times of pandemics, the situation has made people enthusiastic about yoga and other fitness routines. The yoga mat is a must-have for people working out in fitness clubs as well as those who do it at home.

People’s interest peaked in Q3 2020, when there was a new wave of disease and people began to stay home again. Unfortunately, after that interest in yoga mats died down. By Q3 2021, interest has slowly started to grow again.

Closing thoughts

It is unthinkable today for a company to exist without knowing the basic drivers of the market mechanism. Marketing analysis serves as the basis for developing a whole range of measures, including adapting goods for new target segments or markets, adjusting prices depending on competitors’ ones, and sales promotion. Competent market research significantly increases the awareness of management, reduces entrepreneurial risks, and increases the validity of management decisions.

Sergey Ermakovich is the chief marketing officer at Techvice .

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Enabling growth through the market-centric data layer

Enabling growth through the market-centric Data Layer

Financial services leaders face a daunting challenge: differentiation in a highly regulated industry..

Rates, fees, products, and compliance requirements often create a homogenous landscape where competitors blur together. According to Financial Brand “Shadow banking” allows non-banking entities like private equity firms to invest, raising concerns due to lack of oversight. McKinsey sees this as a threat to traditional banks.

Innovation in such a tightly regulated and commoditized market hinges on exceptional customer experience. Banks can do that by enhancing distribution channels to seamlessly integrate services into customers’ daily digital lives through technology and AI. Let’s consider the music industry, the shift that happened from Walkman to streaming services expanded the product beyond music content. It encompassed service elements integral to the user experience like personalized playlists, recommendations, and customer support, all of which enhance the music listening experience. The target experience moved from a product-centric model to a product-service integrated, client-centric model.

The same is true for banks that wants to integrate services into customer’s digital lives. Banks have to reimagine their contact centers with Data, technology, and AI at the center. This raises a crucial question “What approach should banks adopt regarding data and AI for contact centers as they reimagine and tailor their contact centers to provide a product-service integrated, client-centric experience for the future?”

Join Steve Jones (EVP- Chief Data Architect) and Chandramouli Venkatesan (VP- Portfolio Development Lead, Digital Front Office Transformation) as they delve into this topic of market-centric data layer that can help your organization push the boundaries of customer centricity and embrace a truly digital-driven future.

How important is the role of real-time data as its fusion with AI is reshaping business strategies and decision-making, guiding industries into the future of operational efficiency and strategic agility?

Steve Jones : In an era where the pace of organizational decisions keeps accelerating, the role of real-time operational data has evolved from supportive to absolutely necessary. Traditional, slower-paced data analytics are giving way to a dynamic new environment where data and AI support immediate decision-making and action. In the high-stakes world of finance, algorithmic trading acts as the perfect example where algorithms make split-second decisions based on real-time market data. Their success hinges on the accuracy and completeness of that data. Similarly, crafting exceptional customer experiences requires a data-driven approach that leverages real-time insights to personalize interactions and anticipate customer needs.

Market-centric data layer

A market-centric data layer entails the acknowledgment within the business that decision-making information isn’t solely internal. Embracing this becomes a fundamental competency, ensuring standardized acquisition, universal availability, and transparent governance and accountability. The MCDL serves as a reflection of how the business is perceived in the world, ensuring decisions are made with external objectivity rather than internal subjectivity.

How is real-time data transforming decision-making and AI use in businesses today?

Steve Jones : We’re experiencing a shift in how companies manage and utilize data, with a growing emphasis on the integration of a real-time operational data layer. These systems are not just enhancing the speed and accuracy of decision-making processes but are also a must for the effective deployment of AI in business operations. The differentiation for organizations today is in the ability to react faster than other people operationally to make the right decision faster. That’s the mentality of the operational data pattern. It’s about having all the information to make a customer decision right there, in the moment. We call this “decision context.”

While businesses have traditionally recognized the need for accurate data, in the past, when projects went live, the first compromise often made was on data accuracy. This practice was okay in environments where it was acceptable if data processing was delayed by some time. However, when it comes to modern AI systems, which require immediate, precise data to function effectively – it’s the exact opposite.

Let me share an interesting example.

A while ago I booked a flight with one of the major American airlines. I was initially supposed to travel from Phoenix to Dallas and then to London and Stockholm. Due to a delay in Phoenix, the airline rebooked me via another city without coordinating with British Airways. Consequently, upon arriving in London, I discovered British Airways had cancelled their onward ticket to Stockholm because they were not informed of the changes, resulting in a four-hour delay. The problem here was that the decision context in which the American airline company made its decision wasn’t sufficient for the whole decision, and that’s where we need to think.

How do real-time, AI-driven data layers improve industry-wide decision-making?

Steve Jones : The adoption of robust market-centric data layer capable of supporting real-time, AI-driven decision-making is essential. The key here is replicating the success of algorithmic trading. Algorithmic trading relies on having the right decision context – all the necessary information – to make the right choice quickly. The success of algorithmic trading shows us we can extend this mentality to other areas of the business. Extending these data-driven decision-making frameworks to other business areas can enhance operational efficiency and strategic agility across various industries. Like for banks using the same core system (like Guidewire), differentiation comes from the decisions made within that system, not the system itself.

As businesses continue to evolve their data management strategies, there is a growing dialogue around the terminology used to describe market-centric data layers. The discussion often focuses on whether traditional terms adequately reflect the impact of these systems on user experience and operational efficiency. There is a push to adopt terminology that more accurately describes the functional and strategic use of data in business environments.

Let’s come to our original vision of creating a product-service integrated client centric experience in Banking. In this context let’s discuss the state of contact centers. There’s a wealth of data from websites, apps, and other interactions that’s simply not accessible to the agents or the channels. How do you assess this situation?

Steve Jones : The problem is every channel and division has its own data silo. However, we need to and consider the operational data view from the customer’s perspective. Instead of focusing on omnichannel from a business standpoint, we should build a customer-centric operational data layer. This is why we want to put it above the application data layer. This allows us to make better decisions and differentiate ourselves not through the channel itself, but through the ability to provide a consistent customer experience.

It’s the combination of internal and external data that’s crucial. Here’s where “market-centric data layer” (MCDL) becomes interesting. Traditionally, data systems are built around internal operations. The “market-centric data layer” (MCDL) emphasizes building data systems around the market, with the customer at its core. The customer is a key part of this market, and understanding customer behavior within that market context is crucial. This market-centric approach aligns perfectly with the concept of customer journey mapping, which emphasizes building journeys around the customer, not around products. A focus on product journeys often misses the mark on what customers truly want. So, the MCDL directly supports this customer-centric approach. This is the future of engagement: competing in the market of ideas for customers and doing so in an outbound way.

The concept of MCDL

I think that the concept of “market-centric data layer” describes it well. You compete for the customer in the market and not on your back end. The company with the most accurate view on the customer can make the most accurate decisions and therefore be more competitive. And the customer is one of the most competitive and challenging market-centric data areas that you have as a business.

How do you see the future of this Market-centric data layer?

Steve Jones : I believe that the market of ideas is going to be immense. Imagine an avatar that’s available 24/7 and is designed for the role of a digital financial advisor, able to actively promote your brand. A person wondering about their life insurance in the middle of the night could ask it questions and get answers when the avatar collects the necessary data. Right after that, the avatar would be able to make changes in the policies.

The move towards Market-centric data layer represents a significant evolution in the way businesses manage and leverage data. This technology is set to become a fundamental element of business operations, driving innovation, enhancing decision-making accuracy, and ensuring operational agility in an increasingly data-driven world. As companies continue to realize the benefits of real-time data, the landscape of business decision-making will undoubtedly continue to transform, enabling businesses to respond more effectively to the challenges and opportunities of the digital age.

Meet our experts

Steve Jones

Expert in big data and analytics.

Streamlining customer and user experiences for a leading financial institution

Developing a new service experience review methodology that helped unlock opportunities to reduce costs and improve customer service.

BNP Paribas: Inventing tomorrow's bank through innovation

Powering up a dedicated in-house innovation and acceleration center.

Unleashing the potential of omnichannel service: a real-world case

Discover how a leading Financial Services firm revolutionized their customer experience with next-gen technology.

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Customer first banking

Guardiaris reveals JLTV crew simulator, a market first

Guardiaris' Joint Light Tactical Vehicle training simulator displayed at Eurosatory 2024, with the driver and remote weapon station positions manned. (Giles Ebbutt)

Slovenian simulation specialist Guardiaris has developed a Joint Light Tactical Vehicle (JLTV) crew training simulator.

Launched at the Eurosatory 2024 defence exhibition held in Paris from 17 to 21 June, it is, as far as Janes is aware, the only specialised JLTV crew simulator on the market. Doron Precision Systems offers a JLTV driver training simulator, but Guardiaris' model features other crew positions as well.

The Guardiaris simulator is designed for customisable vehicle and remote weapon station (RWS) training for four crew members: driver, gunner, commander, and fourth operator. It is a high-fidelity mechanical, functional, and procedural digital replica of the actual vehicle interior mounted on a 6 degrees-of-freedom (DoF) motion platform from Polish firm Motion Systems. This simulates dynamic vehicle motion on multiple terrain types (gravel, concrete, mud, sand, and snow), which can significantly improve driver and crew perception.

Inside the cabin, LCD screens integrated into the cabin walls simulate all windows to provide battlefield views tailored to each crew member's point of view. The system uses Guardiaris' Guard synthetic environment.

The simulator provides training in crew skills including operating procedures, driving and tactical manoeuvring, weapon handling, terrain observation, voice over intercom and radio inter-crew communication, and battle management system (BMS) operation in a variety of combat scenarios.

It is agnostic to user equipment selection. The modular design allows various types of RWSs to be simulated, including the Elbit Systems 12.7 mm remote controlled weapon station (RCWS), Kongsberg's Common Remotely Operated Weapon Station (CROWS) 151 or 153, Rafael's Samson 30 mm, Otokar's Mizrak 30 mm, and Valhalla Turrets' Mangart 25. The appropriate BMS and communications systems can also be replicated.

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4.2 Marketing Research: an aid to decision making

Introduction

The nature and importance of marketing research

Student Example

What needs researching in marketing?

Newsline: How execs use research

Share This Book

Why Market Research Is Important for Strategic Decision Making

Why You Need an Outside Point of View

Additional Articles

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Decision-Driven Marketing

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What is Marketing Research? Examples and Best Practices

Try Userpilot and Take Your Product Marketing to the Next Level

Defining marketing research

The purpose of marketing research

Key components of market research

Types of market research: primary and secondary

What is primary market research?

Navigating secondary market research

Qualitative vs quantitative research

Implementing market research tools: Userpilot’s role

Marketing research process: Step-by-step guide

Challenges and best practices in market research

Real-life examples of successful market research

Choosing the right market research tools

Measuring the impact of market research

Frequently asked questions

What is the difference between primary and secondary market research?

What are some examples of successful market research?

How can I choose the right market research partner?

How is the impact of market research measured?

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Types of marketing research

Benefits of doing market research

5 marketing research process steps

1. Define the problem

2. Develop a research plan

3. Collect data

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5. Prepare a report

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BUS203: Principles of Marketing

Marketing Research: An Aid to Decision Making

Introduction

DISCOVERING WHY THEY CHEW

Market research definition

Different types of primary research

Why is market research important?

What happens when you don’t do market research?

How do you measure success?

Buyer segmentation and profiling

Attitudes and Usage surveys

Marketing strategy

Product development

Pricing decisions

Brand tracking studies

Advertising and communications testing

Competitive analysis

Customer Story

Types of market research

Primary research

Secondary research

Primary or secondary research – which to choose?

Qualitative vs quantitative

Qualitative research