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QUESTIONS LIST:

• eye tracking : tracking the pattern of eye movements to determine what part of an advertisement consumers look at and for what length
• market research : the process of gathering, recording, and analyzing data and information about customers, competitors, and the market in which you intend to enter
• customer behavior : research that studies when, why, how, and where people do or do not buy a product
• geo demographics : a combination of geographic and demographic information
• ad tracking : monitoring a brands performance with an advertisement to determine the effectiveness of the media targeting, the quality of the advertisements, and roi
• homogeneous: a group of people who have similar attributes
• heterogeneous: a group of people who have diverse attributes
• focus group : a type of qualitative research where a group of people have a discussion on their perceptions, opinions, etc, toward a product or service
• market structure : the characteristics that are found in a given market, such as the number of buyers and sellers, the levels of competition, etc. perfect competition, monopolistic competition, oligopoly, and monopoly are generally the four types of market structures
• coding : how data is categorized in order to be analyzed
• demographics : objective classifications of consumers, such as their age, income, sex, education, etc.
• quantitative research : research that uses numbers for data to analyze results
• qualitative research : research that uses exploratory techniques to obtain words and descriptions as data, as opposed to numerical data
• market segmentation : separating prospective buyers into groups that share common needs and that will respond similar to marketing efforts

Market research (Crossword clue)

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Market-research tool Crossword Clue

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Market research comparison

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Market Research Terms Crossword Puzzle

Holding knowledge of market research is crucial for making informed business decisions. The Market Research Terms crossword puzzle is designed to help you familiarize yourself with the key concepts and vocabulary used in this essential field. Market research involves gathering, analyzing, and interpreting data about a market, product, or service to better understand consumer behavior and preferences. This puzzle will test your knowledge of the methods and techniques used to collect and analyze market data, as well as the terminology that professionals use to describe these processes. 

By solving this crossword, you’ll gain a deeper appreciation for the tools and strategies that businesses use to stay competitive and meet the needs of their customers. Whether you’re a student of business, a marketing professional, or someone interested in learning more about market research, this crossword offers a fun and educational way to enhance your understanding. Ready to challenge yourself? Start solving now!

Market Research Terms Clue List

• 1. A method of gathering information from a sample of people, usually with a questionnaire
• 2. A moderated discussion with a small group of people to gather their opinions and insights
• 3. Statistical data relating to the population and particular groups within it
• 4. A specific group of consumers identified as the recipients of a marketing campaign or product
• 5. The practice of collecting information and attempting to spot a pattern, often used to predict future events
• 1. The discovery and interpretation of meaningful patterns in data
• 2. A subset of a population selected for a survey or study
• 3. A set of written questions used for collecting information from respondents
• 4. Information collected firsthand for a specific research purpose
• 5. Information that has been collected previously for another purpose

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Market Research Crossword

Description.

More precise method of market research Easier method of market research Customers behavior Gathering information Groups of people carry out market research The process of gathering and analyzing data Uses words and descriptions Uses numbers Most common type of primary research The number of people questioned A series of questions asked

Key words for unit 1.1-1.2

Market Research

Marketing Vocabulary

Word Search

Research Methods

Spotting a Business Opportunity

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Marketing Research Crossword Puzzle

• 5. A group interview with a small number of people that share similar things
• 7. A question that asks about the various characteristics of a person
• 10. Research that is done first hand
• 11. A question that qualifies or disqualifies respondents from taking your survey
• 12. A question that can not be written in paragraphs or sentences
• 13. A question that has answers for everyone to be able to answer
• 14. A question that has multiple answers to choose from
• 15. A question that has a range of answer options that go from strongly agree to strongly disagree.
• 1. Questions to help respondents avoid questions that do not pertain to them
• 2. A question that can be written in paragraphs and sentences
• 3. A question that lets respondents order answer options as per their preference
• 4. A question that describes the extent to which a customer will buy a product
• 6. When only one type of person could answer the question
• 8. Research that is done based on someone else's research or ideas
• 9. A question that uses a satisfaction scale

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

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

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

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

What is market research?

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

Why is market research important? 

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

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

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

Types of market research 

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

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

1. Qualitative research

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

2. Quantitative research

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

3. Exploratory research

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

4. Descriptive research

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

5. Causal research

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

6. Cross-sectional research

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

7. Longitudinal research

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

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

Primary vs. secondary market research

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

Primary market research 

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

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

Secondary market research 

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

Here are the main characteristics of secondary market research:

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

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

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

Market research methods

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

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

1. Surveys and questionnaires

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

2. Interviews

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

3. Focus groups

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

4. Observational research

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

5. Online research tools

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

6. Experiments

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

7. Content analysis

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

8. Ethnographic research

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

How to do market research

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

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

1. Set clear objectives

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

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

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

2. Identify your target audience

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

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

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

3. Choose your research methods

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

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

4. Use the right market research tools

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

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

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

5. Collect data

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

6. Analyze data

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

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

7. Interpret your findings

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

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

8. Identify opportunities and challenges

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

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

9. Make informed business decisions

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

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

10. Monitor and adapt

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

Online market research sources

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

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

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

Market research examples

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

Example 1: Apple’s iPhone launch

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

Example 2: McDonald’s global expansion

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

Example 3: Organic and sustainable farming

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

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

Market research templates

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

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

Strengthen your business with market research

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

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

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

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• Crossword Tips

Clue: Market research comparison

Referring crossword puzzle answers, likely related crossword puzzle clues.

• Market research tool
• Way to find a flavor in favor
• Pepsi Challenge, for instance
• Pepsi Challenge feature
• Commercial device
• Cola-commercial tool
• Challenge often undertaken while blindfolded
• Evaluation in which flavors are compared
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Recent usage in crossword puzzles:

• LA Times - Jan. 6, 2023

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

In this post

Importance of market research

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

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

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

What is market research?

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

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

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

Functions of market research

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

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

Primary research

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

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

Secondary research

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

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

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

Qualitative research

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

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

Quantitative research

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

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

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

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

Types of sampling

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

When to use market research?

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

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

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

1. Identify your target audience(s)

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

2. Scope the competition

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

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

3. Engage a portion of your persona

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

4. Summarize data and draw conclusions

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

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

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

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

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

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

Mary Clare Novak

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

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