what is data in market research

How to Do Market Research: The Complete Guide

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

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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.

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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What is Market Research? Definition, Types, Process, Examples and Best Practices

By Nick Jain

Published on: June 21, 2023

Table of Contents

What is Market Research?

Types of market research, market research process, examples of market research, market research methods, best practices for market research in 2023.

Market research is defined as the systematic collection, analysis, and interpretation of data about a specific market, industry, or consumer segment. It involves studying customers, competitors, and market dynamics to identify opportunities, mitigate risks, and make informed business decisions.

Market research provides valuable insights into consumer behavior, preferences, and market trends, helping organizations develop effective marketing strategies, launch new products, and optimize their market positioning.

Key components of market research:

Market research typically involves several key components that contribute to a comprehensive understanding of the market and its dynamics. These components include:

• Market Segmentation: Identifying and dividing the target market into distinct segments based on demographics, psychographics, behavior, or other relevant characteristics. This helps tailor marketing strategies to specific customer groups.
• Data Collection: Gathering relevant data from primary and secondary sources. Primary data refers to information collected directly from the target market through surveys, interviews, observations, or experiments. Secondary data involves leveraging existing research, reports, industry databases, or government sources.
• Research Design: Developing a research plan that outlines the objectives, methodology, and timeline for conducting the research. This includes selecting appropriate research methods, determining the sample size, and defining the sampling technique.
• Qualitative Research: Utilizing techniques like interviews, focus groups , or observations to gain in-depth insights into consumer attitudes, opinions, motivations, and behaviors. Qualitative research helps explore underlying reasons and provides a richer understanding of the market.
• Quantitative Research: Employing surveys, questionnaires, or structured data analysis to gather numerical data on a larger scale. Quantitative research enables statistical analysis, measurement of market trends, and generation of quantitative insights and metrics.
• Competitive Analysis: Assessing competitors’ strategies, strengths, weaknesses, market positioning, and offerings. This helps identify market opportunities, potential threats, and areas for differentiation.
• Consumer Behavior Analysis: Examining consumer decision-making processes, buying habits, preferences, and satisfaction levels. Understanding consumer behavior is crucial for developing effective marketing strategies and targeted campaigns.
• Market Size and Forecasting: Estimating the total market size, growth potential, and future trends. Market sizing helps assess the market’s attractiveness and potential demand for products or services.
• Data Analysis: Applying statistical techniques and tools to analyze collected data and derive meaningful insights. This includes data cleaning, segmentation analysis, correlation analysis, regression analysis, and other statistical methods.
• Reporting and Presentation: Summarizing research findings, insights, and recommendations in a clear and concise manner. Effective communication of research results ensures that stakeholders can make informed decisions based on the findings.

These components work together to provide a holistic view of the market, consumer behavior, and competitive landscape, enabling businesses to make informed decisions and develop effective marketing strategies.

Primary Research: Primary research involves collecting data directly from the target market or consumer segment. It is customized and tailored to address specific research objectives. Primary research methods include surveys, interviews, focus groups , observations, and experiments. Primary research allows for the collection of firsthand data and offers more control over the research process.

Secondary Research: Secondary research involves gathering and analyzing existing data that has been previously collected by other sources. This data can include industry reports, government publications, academic studies, market research reports, and online databases. Secondary research helps to gain a broader understanding of the market, industry trends, and historical data. It is a cost-effective way to access existing information and can provide a foundation for further primary research.

Learn more: What is Customer Experience (CX) Research?

Step 1. Define Research Objectives

The first step in market research is to clearly define the research objectives. This involves identifying the specific information needed, the target audience, and the desired outcomes of the research.

Step 2. Design Research Plan

Once the objectives are defined, the next step is to design a research plan that outlines the methodology, data collection techniques, sample size, and timeline. The research plan should be tailored to address the research objectives and provide reliable and valid data.

Step 3 Data Collection

In this stage, data is collected using primary or secondary research methods. Primary research involves gathering data directly from respondents through surveys, interviews, focus groups , or observations. Secondary research involves gathering existing data from published sources, industry reports, or databases.

Step 4. Market research Analysis

Once the data is collected, it needs to be analyzed to identify patterns, trends, and insights. This can involve quantitative research and analysis, such as statistical techniques, or qualitative research and analysis, such as thematic coding or content analysis. The goal is to derive meaningful insights from the data that can inform decision-making.

Step 5. Final Market Research Insights

After analyzing the data, the next step is to interpret the findings and extract actionable insights. This involves drawing conclusions, identifying key trends, and relating them to the research objectives. The insights should provide valuable information that guides marketing strategies, product development, or business decisions.

Step 6. Reporting Research Findings

The final step is to present the research findings in a clear and concise manner. A market research report is typically prepared, which includes an executive summary, methodology, findings, insights, and recommendations. The report should effectively communicate the research results to stakeholders and provide actionable recommendations based on the insights.

Here are some examples of market research. These examples illustrate the diverse applications of market research across various industries and scenarios:

• Customer Satisfaction Market Research : A company conducts a customer satisfaction survey to gather feedback from its existing customers . The survey includes questions about their experience with the product or service, overall satisfaction, likelihood to recommend, and areas for improvement. The results help the company understand customer satisfaction levels, identify key drivers of satisfaction, and take action to enhance the customer experience .
• Pricing Market Research: A business is considering introducing a new product or service and wants to determine the optimal pricing strategy. They conduct pricing research, which involves surveys or conjoint analysis, to gather data on customer price sensitivity, willingness to pay, and perceptions of value. The research helps the company set competitive pricing that aligns with customer expectations and maximizes profitability.
• Market Trend Research: A market research firm monitors industry trends and analyzes market data to provide insights to clients. They track market size, growth rates, industry dynamics, and consumer preferences through secondary research. The analysis helps businesses understand market trends, identify emerging opportunities or threats, and make informed strategic decisions.
• Concept Testing Market Research: A company has developed several product concepts and wants to evaluate their potential success before investing in product development. They conduct concept testing research, which involves presenting the concepts to a target audience through surveys or focus groups . The research helps assess consumer interest, perceived benefits, and purchase intent for each concept, allowing the company to select the most promising one to pursue further.
• Competitor Market Research: A company wants to assess the strengths and weaknesses of its competitors in the market. They conduct competitor analysis, which involves gathering data on competitors’ products, pricing, distribution channels, marketing strategies, and customer perceptions. The insights obtained help the company benchmark against competitors, identify areas of competitive advantage and develop strategies to differentiate itself in the market.
• Ad Testing Market Research: A company is planning to launch a new advertising campaign and wants to assess its effectiveness. They conduct ad testing research, which involves presenting different versions of the ad to a sample audience and gathering user or customer feedback on message comprehension, brand recall, and emotional response. The research helps the company optimize the ad campaign by identifying the most impactful and persuasive elements.
• Market Segmentation Research: A company wants to understand its target market better and tailor marketing strategies to specific customer segments. They conduct market segmentation research, which involves analyzing demographic, psychographic, and behavioral data to identify distinct customer segments with different needs, preferences, and buying behaviors. The segmentation analysis helps the company develop targeted marketing campaigns, messages, and product offerings for each segment.

Learn more: What is Customer Feedback?

• Qualitative Market Research Methods

Qualitative market research methods focus on non-data intensive methods of information gathering and analysis. These methods focus on a small sample of respondents who are probed for an in-depth understanding of a subject. The goal of such a method is to gain an in-depth understanding of the market and consumer behavior based on open-ended questions and discussions.

For example, focus groups , one-on-one interviews, case studies, etc are popular qualitative methods of market research.

• Quantitative Market Research Methods

Quantitative market research focuses on data-intensive methods that return solid data that can be quantitatively analyzed in bulk. These methods often rely on a large sample of respondents who answer a common questionnaire, which may further have an internal logic to branch out to new questions based on answers to previous questions.

Examples of quantitative market research methods are physical survey questionnaires, online feedback surveys, Twitter polls, Net Promoter Score (NPS) questions after a product purchase, customer satisfaction (CSAT) feedback forms, etc.

Market research is a crucial process that helps businesses understand their target market, consumer preferences, industry trends, and competitive landscape. By gathering and analyzing relevant data, companies can make informed decisions and develop effective marketing strategies. Here are some best practices for market research:

1. Define your research objectives: Clearly articulate the goals and purpose of your research. Identify the specific information you need to gather, such as customer insights, market size, competitor analysis, or product feedback.

2. Identify your target audience: Determine the specific demographic or customer segment you want to study. This will help you tailor your research methods and questions to gather the most relevant data.

3. Choose the right research methods: Select the most appropriate research methods based on your objectives and target audience. Common methods include surveys, interviews, focus groups , observation, secondary research, and data analysis.

4. Develop a research plan: Create a detailed plan outlining the research methodology, timeline, and resource allocation. This will ensure that the research is conducted efficiently and effectively.

5. Use a combination of qualitative and quantitative research: Qualitative research methods , such as interviews and focus groups , provide in-depth insights and opinions, while quantitative methods , like surveys and data analysis, offer statistical data and measurable metrics. Combining both approaches provides a comprehensive understanding of the market.

6. Collect data from multiple sources: Gather information from diverse sources, including primary data (collected directly from customers or target audiences) and secondary data (existing research, industry reports, and government data). This multi-source approach enhances the reliability and accuracy of your findings.

7. Maintain data quality and integrity: Ensure the data collected is accurate, reliable, and relevant to your research objectives. Use standardized measurement scales and survey techniques to maintain consistency.

8. Analyze and interpret the data: Use appropriate statistical analysis tools and techniques to analyze the collected data. Look for patterns, trends, and correlations that can provide valuable insights for decision-making.

9. Keep an eye on competitors: Conduct a competitive analysis to understand your competitors’ strategies, strengths, weaknesses, and market positioning. This information can help you identify opportunities and develop effective marketing plans.

10. Stay ethical and maintain privacy: Adhere to ethical guidelines and protect the privacy of participants and their data. Obtain informed consent and ensure confidentiality throughout the research process.

11. Communicate and act on findings: Present your research findings in a clear and concise manner. Translate the insights into actionable strategies and recommendations that can drive business growth.

12. Continuously monitor the market: Market research is an ongoing process. Keep a pulse on industry trends, consumer preferences, and market dynamics to stay ahead of the competition and identify new opportunities.

By following these best practices, businesses can conduct effective market research that informs decision-making, helps identify growth opportunities, and supports the development of successful marketing strategies.

Learn more: What is Online Focus Group?

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Home • Knowledge hub • An Introduction to Data Collection within Marketing Research.

An Introduction to Data Collection within Marketing Research.

Data plays a central role in all forms of research, including marketing research. It serves as the eyes and ears for a brand’s marketing initiatives. The data you gather — and its quality — will make a massive difference to how successful your research is, how accurate your findings are, and the impact on your business goals and strategies.

Data collection is arguably the most critical market research stage. It can make or break the rest of the process, so it’s vital to do everything you can to make this stage run smoothly and successfully.

In this article, we’ll take a deep dive into why data collection matters, the different types of data you should focus on, and all the options available to you when it comes to collecting that data. Let’s start by defining what data collection means.

What is the definition of data collection in the context of market research?

Data collection encompasses the meticulous compilation of all essential raw information required for your market research. Some individuals also broaden the scope of this definition to encompass the analysis of the gathered data, extracting invaluable insights to fulfill your research objectives.

It entails a comprehensive and well-planned quest for relevant data conducted by a researcher to validate a hypothesis.

The primary objective of data collection in market research is to ensure the acquisition of dependable data for statistical analysis, thereby enabling brands to make informed decisions supported by robust data. Consequently, it is imperative that your data possesses attributes of high quality, relevance, and sufficient quantity to yield meaningful insights.

Why data collection is so important?

Data collection is a critical step in the research process, often the primary step. You can analyze and store essential information about your existing and potential customers when you collect data. This process saves your organization money and resources, as you can make data-driven decisions. Data collection also allows you to create a library or database of customers (and their information) for marketing to them in the future or retargeting them.

Three main uses of data collection in market research:

• Data collection helps you make informed decisions and analyses, building complete and insightful market research reports that can drive future product launches, market-entry campaigns, marketing strategies, and more. Data collection is the foundational step for various activities that can lead to business growth.
• Data collection allows you to build a database of information about your market for future use. While your primary goal might be to create a research report with a specific objective, the data can still be helpful for future activities.
• Data collection allows you to target marketing and outreach more efficiently, thereby allowing your organization to save money and do more with its resources.

The different types of data collection in marketing research

There are several different types of data to consider at this stage — let’s examine them more closely.

We can break down data into two main categories, which makes it easier to understand the types of data we want to focus on and helps us hone in on the research methods and channels that will be most useful.

Primary data

Primary data is collected directly by your researchers, specifically for your research purposes. This data is primarily collected from interviews, surveys, focus groups, and experiments. In other words, this data did not exist before your team collected it.

Secondary data

Secondary data refers to data that already existed before you started your research. Other researchers have already collected and compiled this data before. You can find this type of data in places like government reports, the analysis of other businesses, polls and surveys, and the work of NGOs. It’s typically cheaper and easier to obtain than your primary data, but it won’t be as relevant to your project.

Qualitative research

Qualitative research is usually the first step in data collection. It’s more textual than statistical and involves collecting non-numerical data like interview transcripts, video recordings, and survey responses.

Qualitative data is typically collected via first-hand observation through focus groups, interviews, and ethnography. It is a way of diving deep into ideas and concepts, allowing researchers to learn more about specific topics that may not be well understood.

Quantitative Research

Where qualitative research is relatively more text-based, quantitative research focuses on numbers and statistics. This data is expressed in charts, graphs, and tables and is typically used to test initial findings.

Methods used to collect quantitative data include more closed-ended survey questions, mobile surveys, and Likert scales. The main benefit of this type of data is that it allows researchers to make more broad generalizations and predictions, but it’s not well-suited for diving deep into particular questions.

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How data collection in marketing research works

There are many steps involved in the data collection process. Some of these steps begin even before you start collecting data.

Prior steps

There are several steps you should take before your data collection begins, such as:

・ Make sure you have all the necessary permission to collect your data. Today, data privacy laws are stronger than ever, so researchers need to take extra care to comply with regulations and have the full consent of their subjects and participants. It’s best to work with a legal compliance team to draft all the required documents, forms, and contracts to share with your research participants from the very beginning.

・ Make sure you have the support of any company decision-makers and stakeholders. It may be helpful at this stage to prepare a preliminary report informing any higher-ups of your plans, goals, sources , and any methods you plan to use.

・ Try to predict and pre-empt any possible challenges or problems, such as privacy regulations, collection methods, infrastructure, or budget. Anticipating any issues now will help you avoid costly problems and make the whole process run more smoothly.

・ Put together a team of skilled and qualified researchers and analysts. Data collection can be a difficult task, and you need to have the right experience and skillsets on your team.

Decide on your data collection methods.

The next stage is to decide which data collection methods you will use to collect data for your marketing research report. You will likely employ various methods here, as each has unique pros and cons. Here are the main methods you should consider:

There are many ways to conduct surveys — in-person, online, post, email, mobile message, others. Surveys differ in content and structure — from simple Likert scales with just five possible numerical responses to more qualitative open-ended questions.

・ Focus groups

Focus groups allow you to bring multiple participants together to discuss the subject of your research and share their opinions. This format can be a great way to brainstorm ideas, and people can often bring good ideas out of each other. To get the best results, everyone should get a chance to speak, and no one person should dominate the group.

・ Interviews

One-to-one interviews are the best ways to dive deep into a person’s opinions about your brand or a specific product. However, they can be time-consuming and may require much planning.

・Observation and experimental research

This type of data collection involves observing individuals as they interact with specific products or services. It helps get around certain biases that people might have in interviews and surveys and cut right through to their true thoughts. However, it isn’t easy and requires an expert touch to get it right.

Identify and prepare for common challenges with data collection.

During the data collection process, you’re likely to encounter several challenges. The good news is that you can avoid these challenges and mitigate any impacts on your research report with proper preparation.

Here’s what to look out for:

・bad methodology results in poor quality data.

A lot can go wrong with your data collection methods — badly identified participants, poorly designed questions, and choosing the wrong methods are just a few examples. This can result in poor quality data, leading to erroneous conclusions and an unsuccessful research report. Take the time to work with experienced researchers and build the right data collection strategy for your needs.

・Logistical challenges

You will also come across many logistical challenges. For instance, you’ll need a big venue to hold everyone if you’re running a focus group. If you want to conduct a stream of interviews, you’ll need to hire a space for a particular time. You may need to arrange transport, refreshments, and a wide range of other logistical demands. If you fail to plan this properly in advance, your team could find itself in a highly stressful situation.

・Using the proper channels

The channels you use to connect with your audience are consequential — what works well for one demographic might completely fail for another. If you choose the wrong media (like Twitter to send surveys to an older demographic), you could have a poor response rate and lack usable data.

How to collect data effectively

Get to know your audience..

You will need to have an intimate and deep understanding of your audience and the people you collect data from. This will ensure you target the right people, ask the appropriate questions, choose the correct methods and channels, and analyze the data in the proper contexts.

There are many ways to get to know your audience better in advance of data collection:

・ Use social media to spend time in the same spaces and groups as your audience members, chat with them, and find out who they are and what makes them tick.

・ Work with your sales and marketing teams — it’s their job to understand your audience, and they’ll have access to valuable insights.

・ Look at who is using your competitors’ brands and products.

Once you understand whom you target, it often helps create detailed user personas, outlining details about your typical audience members like their age groups, income brackets, and education levels. You can then use this information to tailor your data collection strategy to be relevant and valuable.

Prepare for the analysis of your data.

Collecting data is one thing, but you should always have an eye on the analysis of that data. This is where you extract insights and draw tangible value from the data — allowing you to make informed business decisions and create a valuable and applicable market research report .

When planning your collection methods and recording the results, always remember that someone will be analyzing this data. Be organized, clear, and detailed, and work with your analysts to ensure they are aligned with your approach.

Use a wide range of methods and channels.

The best data collection relies on various tools and channels instead of focusing on just one or two. By combining a number of the approaches mentioned in this article, you will connect with a broader part of your market, gaining a better understanding of how different demographics feel and leading to a more valuable and insightful analysis.

For example, if you focus solely on digital channels like social media and online surveys, your responses may skew heavily towards younger people. Some in-person interviews, focus groups, and postal surveys help target a broader range of age groups and accurately reflect your market and their views.

Data collection is a critical part of market research. It serves many important purposes, and it is essential to get it right to create effective research reports and complete a vast range of different business objectives.

At Kadence, we help companies worldwide fine-tune their data collection, laying the foundations for informed and effective market research.

Contact us to learn more about how we can help you do the same.

Helping brands uncover valuable insights

We’ve been working with Kadence on a couple of strategic projects, which influenced our product roadmap roll-out within the region. Their work has been exceptional in providing me the insights that I need. Senior Marketing Executive Arla Foods

Kadence’s reports give us the insight, conclusion and recommended execution needed to give us a different perspective, which provided us with an opportunity to relook at our go to market strategy in a different direction which we are now reaping the benefits from. Sales & Marketing Bridgestone

Kadence helped us not only conduct a thorough and insightful piece of research, its interpretation of the data provided many useful and unexpected good-news stories that we were able to use in our communications and interactions with government bodies. General Manager PR -Internal Communications & Government Affairs Mitsubishi

Kadence team is more like a partner to us. We have run a number of projects together and … the pro-activeness, out of the box thinking and delivering in spite of tight deadlines are some of the key reasons we always reach out to them. Vital Strategies

Kadence were an excellent partner on this project; they took time to really understand our business challenges, and developed a research approach that would tackle the exam question from all directions.  The impact of the work is still being felt now, several years later. Customer Intelligence Director Wall Street Journal

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Market Research: What It Is and How to Do It

SEO Book for Beginners

We turned the seven chapters of our beginner’s guide to SEO into a beautiful hardcover book.

In other words, it’s the process of understanding who your business is targeting so you can better position your marketing strategy.

In this guide, you’ll learn:

• The role of market research in a marketing strategy
• When to conduct market research

Types of market research

• Market research methods and their benefits
• How to conduct market research (example included)
• Market research tools and resources

What is the role of market research in a marketing strategy?

A marketing strategy is a business’s overall game plan for reaching consumers and turning them into customers.

The key word in the above definition is “game plan”. Entering a market with a product is like starting a new game. Since you’re new to the game, you don’t know the rules, and you don’t know who you’re playing against.

This is exactly where market research comes in . Market research allows you to discover the rules of the marketing game by understanding your target audience. Moreover, it allows you to understand who your opponent is by assessing the strengths and weaknesses of your competition.

Research is what marketing pros do to plan their moves, and outperform their competition.  It’s also what marketing pros use to identify the strengths and weaknesses of their own marketing strategy .

But is market research the ultimate business oracle? Unfortunately no. Even companies that specialize in market research admit it - here’s a quote from one of them :

(…) it cannot be assumed that market research is an exact science, as it would be unrealistic and unreasonable to expect market researchers to predict the precise demand for a new concept, given that there are numerous variables that can impact demand outside of the market researchers’ remit.

That’s why market research with all of its significance is “only” a part of marketing, and it’s “only” an experiment.  It’s up to you whether you will conduct your experiment, and when you will end it.

For example, Crystal Pepsi seemed very promising in the market research phase, yet it failed when released onto the market (a similar thing happened to New Coke). Xerox’s idea for a commercial photocopier was a no-go in the eyes of research analysts; Xerox did it anyway, and the rest is history.

When should you conduct market research?

Paul N. Hauge and Peter Jackson in their book “Do Your Own Market Research” point to three specific situations when market research is really useful:

• Setting goals . Knowing things like the size of the market, or defining your potential customers can help you set your sales goals.
• Problem-solving . Low sales? Low profitability? Market research will help you understand whether your problems are internal, like a low-quality product, or external, like aggressive competition.
• Supporting company growth.  Understanding how and why consumers decide on products will help you decide what products to introduce to the market.

Another answer to the “when” is the importance of the decision that you need to make. The more important the marketing issue you’re tackling, the more market research comes in handy.

For example, launching a new car on the market is quite a big event, right? So maybe Ford could have avoided losing 350 million dollars with the Ford Edsel if they had done their research properly. I mean, with the right methods in place it shouldn’t be that hard to predict that consumers will deem the car overpriced and ugly.

That said, market research doesn’t always have to be a large, complex project. The relatively new trend of agile market research  allows you to research the market regularly and in a cost-effective way. This is where you employ bite-size, iterative, and evolutionary methods to react to fast-changing circumstances and adapt to unknown market territories.

Furthermore, if you’re working in startup conditions, especially if you’re developing an innovative product, you may be interested in customer development . In this methodology market research is at its “agilest” and it’s tightly woven into the product development process.

Take Ahrefs for example. We stick to agile market research hacks anyone can use. As you will see later in the article, we use simple (but effective!) stuff like social media polls, crowdsourcing, in-house competitive analysis, or just tracking the pricing of our competitors.

Case in point, just recently we asked our fellow marketers on Twitter how they go about researching the market. It seems that market research comes in all shapes and sizes:

Have you ever performed “market research?“ What was it for? — Tim Soulo (@timsoulo) May 3, 2021

Just because somebody does market research in a certain way doesn’t mean that you need to copy that. You should know your options, and they start with the different types of market research.

Primary research

Whenever the research is done by you or on your behalf, and you need to create the data to solve a given problem, that is called primary market research.

Examples:  Focus groups, interviews, surveys (more on those later in the article).

Key benefits: It’s specific to your brand and products or services, and you can control the quality of the data.

Secondary research

Whenever you’re using already existing data, such as that put together by other businesses and organizations, you’re doing secondary market research.

Examples: Second-party and third-party sources like articles, whitepapers, reports, industry statistics, already collected internal data.

Key benefits: Get a macro perspective of your marketplace, as secondary research includes other players in the market, and most probably utilizes a bigger set of data than your primary sources.

Primary research vs. secondary research

Primary and secondary market research are different but by no means opposite. It’s actually recommended to use both.

While primary sources will give you a focused, micro perspective of your business, secondary research will tell you how other businesses are doing and how your research findings compare to bigger research sample sizes. 

Market research subtypes

A bit more theory for all you marketing geeks out there. Professional market researchers distinguish between the following primary and secondary market research subtypes:

• Qualitative research.  Think interviews, open-ended questions, results expressed in words rather than numbers and graphs. This type of research is used to understand underlying reasons, opinions, and motivations.
• Quantitative research. Think surveys, polls, usually closed-ended questions, results expressed in numbers and statistics. This type of research is used to test or confirm hypotheses or assumptions by quantifying defined variables (such as opinions or behaviours) and generalizing results from larger data samples.

Overview of market research methods

Let’s go over some popular market research methods you can use yourself and/or outsource.

Internal data analysis

The data you’ve already collected in your company is an invaluable secondary research data source. The more time you’re in the business, the more data you have on your hands.

The best thing about your internal data is that it’s been put into practice in real-life market conditions, so you just need to find the patterns and draw conclusions.

Here are some internal data sources you can leverage :

• Website data (like Google Analytics)
• Past campaigns performance data
• Internal interviews with employees

Interviews allow for face-to-face discussions and are great for exploratory qualitative research.

In unstructured interviews, you have an informal, free-flowing conversation on a given set of topics.

In structured interviews, you prepare a detailed, rigorous interview protocol where you list every question you want to ask and you can’t divert from them.

You can also choose the “middle way” with semi-structured interviews which revolve around predefined themes or questions, but allow for open-ended discussion.

A word of advice here would be to always remain neutral and unbiased, even during unstructured interviews. Also, it’s helpful to perform a pilot test of the interview to quickly spot some defects of your protocol.

Recording the interview may influence the answers, so use it wisely.

Focus groups

Focus groups are where 5 to 10 people with common characteristics take part in an interactive discussion with a moderator. They’re used to learn how a particular group thinks about a given issue or to provide feedback on a product.

Now, you might know that Steve Jobs famously hated focus groups. He’s on record saying:

It’s really hard to design products by focus groups. A lot of times, people don’t know what they want until you show it to them.

If you’re trying to create a leapfrog product like the iPhone, there’s probably some validity to this statement. But most of us aren’t wrestling with that level of ambition. We just want to know if customers will like a proposed new feature or not. For this, focus groups are super useful.

Surveys involve polling your audience. They’re usually performed online for customer satisfaction and loyalty research, and are one of the most popular and cost-effective market research methods.

Some of the tried and tested use cases of online surveys  are:

• Product feature desirability
• User satisfaction feedback
• Quantitative analysis of certain issue occurrences
• Identifying friction points in your customer journey
• Discovering the reasons to convert to or cancel your service
• During product onboarding to create a customer profile (and for marketing automation)
• Opinion about a recently made change

An interesting example of surveying the market is crowdsourcing . That’s what Ahrefs does to understand what features to build, how important they are, and what customers expect from them.

What’s unique about crowdsourcing is that it allows the users to add their own ideas, and upvote or comment on existing ideas rather than answer predetermined questions, so this method leaves less room for marketing myopia. You improve your business, and the users get a better product—everybody wins.

How we crowdsource ideas at Ahrefs

Social media is another great place to survey the marketplace.

How many of you have disavowed links in GSC this year? — Tim Soulo (@timsoulo) October 8, 2020

Market segmentation

Market segmentation is the practice of categorizing a market into homogeneous groups based on specific criteria, also called segmentation variables (like age, sex, company size, country, etc.).

If you think you’re building a product for everyone, think again. Not everyone will want to buy from you.

Smart companies pick their target audience carefully. They pinpoint groups of people or organizations that could be valuable customers for the business. That way they also discover their non-ideal customers and develop a plan to attract customer segments gradually. 

Ever wondered why Procter and Gamble creates so many, often competing, brands? You guessed it: market segmentation. P&G simply divides and conquers. Different people have different needs, so they need different products (and possibly brands).

Competitive analysis

Another powerful, yet often overlooked, market research method is the process of understanding one’s market environment. Seriously, if there’s only one thing you could do to learn what works and what doesn’t in your market, you should do a competitive analysis.

“Whenever we discuss building a certain feature, we would definitely research our competitors and see how they do it.” Tim Soulo, CMO

You’d be surprised by how much you can learn about and from your competition and how much of it can be done online. There are certain tried and tested techniques, hacks, and tools for this type of research, and you can find them in this guide .

Analyze commercial data

Secondary market research data is relatively affordable, fast to acquire, and easy to use. Think market reports, industry insights, and a ton of research data someone has already gathered and analyzed so you don’t have to.

The most reputable sources are Gartner , Forrester , and Pew . Apart from those, make sure to check if there is a trustworthy commercial data source specific to your niche.

Sites like G2, Capterra and Trust Pilot also count. Not only do they give you an overview of your industry, but you can also find some real gems in your users’ reviews and your competitors’ reviews as well. Ahrefs uses that data source regularly internally and externally, like for this section of our Ahrefs vs Semrush vs Moz  landing page:

Benefits of market research - a comparison

Let’s quickly summarize the above 7 different methods of market research by their key benefits.

How to do market research process in 5 key steps

So now we know what market research is, why and when to do it, and we’ve learned about all of the important types and methods.

Let’s see how we can use that knowledge to conduct any type of market research in 5 steps.  As an example of market research, I’ll tell you about some of my past experiences with a 3D printing company.

• Identify the market research problem
• Choose the sample and research method
• Collect the data
• Analyze the data
• Interpret and present conclusions

1. Identify the market research problem

This is where every research project starts. You will also find that market research, in general, follows the pattern of the scientific method . First, you need to establish what exactly you are researching.

Do you have a question about your business you want to answer? Maybe you see an opportunity in the market. Or maybe you’ve observed something curious about your product use and you have a hypothesis that you want to validate? State that in the first step of the market research process.

Let me share an example.

In the past, I ran marketing for a few companies, and one of them was a 3D printer manufacturer. Early on I stumbled upon two problems with that company.

First: one of our market segments was saturated with similar products of similar quality at significantly lower price (classic, right?). Second: more and more 3D printing manufacturers seemed to be drifting away from the hobby segment to tackle the professional segments with more expensive products, yet we remained in the hobby/DIY niche. So we were too expensive for hobbyists but too hobbyist for customers who could afford us.

The hypothesis that I wanted to verify was that if the marketplace was showing a trend towards more professional use cases of 3D printing, our company should follow that trend. In other words, I wanted to check the viability of shifting the brand positioning into the professional/premium sector.

2. Choose the sample and research method

We’ve already covered the main types and methods of market research. You should already have a good idea of the differences between primary and secondary research, or whether qualitative or quantitative methods would best suit your needs.

As for the sample of your research, this refers to the portion of the entire data source in question that you will use. For example, if you want to run a survey among your customers, the sample will refer to the selection of customers you will include in your survey. There are a few options for choosing a sample:

• Use the entire data source . Obviously, it’s not a sample per se. Nevertheless, if sending a survey to all of your customers is doable (and reasonable), this is a perfectly good choice.
• Choose a random sample. Systematic sampling is the easiest way to choose a random sample. This is where you select every x/nth individual for the sample, where x is the population, n is the sample. For example, if you want a sample size of 100 from a population of 1000, select every 1000/100 = 10th member of the population.
• Convenience sampling: choose respondents available and willing to take part in the survey.
• Purposive sampling: choose respondents that in your judgement will be representative or possess some other feature that is important to the research.
• Quota sampling:  choose some arbitrary quota of respondents, e.g. 10 non-paying customers, 10 paying small companies and 10 paying large companies.

Back to our example. As a method for verifying my hypotheses, I chose a mix of:

• Surveys sent to all of our resellers.  We wanted to see if they also had seen a paradigm shift in the market and what segment of clients they had encountered the most. We also wanted to know their perspective on the longevity of that trend, and whether they potentially be interested in a more premium version of our product.
• In-depth interviews  on the phone with our resellers conducted by our sales team. We used purposive sampling here. Our sample comprised resellers with which we had the best relations (we knew they would be more eager to share).
• Competitive analysis.  We were mostly interested in market players who tried to penetrate the professional/industrial segment, so this was our sample ( purposive sampling ). We were interested in stuff like: what features were they building into their 3D printers, what was their brand positioning, what was their pricing, what language they used to communicate with their target audience, etc.
• Wohler’s industry report, anything 3D printing from Gartner and the like, reports by 3D printing services providers, and basically any scrape of serious data we could find ( convenience sampling ).
• Internal data:  customer satisfaction issues, and just general current customer profile based on Google Analytics and Facebook data.

3. Collect the data

Once you’ve got your problem, method, and sample nailed, all you need to do is to gather the data. This is the step where you send out your surveys, conduct your interviews, or reach out for industry insights.

A word of advice, choose your market research tool carefully; it will greatly influence the amount of work you will have with analyzing the data. For example, Google Forms  automatically makes graphs out of quantifiable data (plus it’s free).

Here’s the data we collected for the 3D printing company:

• Reseller survey data (both quantitative and qualitative data).
• Reseller interview data (qualitative data).
• Customer satisfaction issues (qualitative data gathered through all customer support channels, we analysed about 200 issues and requests).
• Competitive analysis data (from about 10 competitors).
• We managed to gather 3 comprehensive, independent industry reports, a few smaller reports made by other 3D printing companies, and dozens of scrapes of data, like statistics and noteworthy insights. We pulled out data like: 3D printer manufacturer market share, market growth in time, market segmentation, key 3D printing applications, 3D printing adoption by region, key players’ sales numbers.
• Any demographic, sociographic and psychographic data on customers and website visitors we could find in our internal data.

4. Analyze the data

Now that you have your data collected, the next step is to look for patterns, trends, concepts, or often repeated words—all dependent on whether your method was qualitative or quantitative (or both).

Simple research performed on a small sample will be relatively easy to analyze, or even analyzed automatically, like with the aforementioned Google Forms. Sometimes you will have to use expensive and harder to master software like Tableau , NVivo , PowerBI , or SPSS . Or you can use Python or R for data analysis (if you have a data analyst or data scientist on board, you’re in luck).

Continuing the example: Google Forms made it easy for us to spot patterns in surveys since quantitative data was calculated automatically. The most time-consuming part was reading through all of the responses and manually looking for patterns (back then I wasn’t aware of any tool that could do the job). Both sales and marketing teams worked on analyzing some of the qualitative data to have more than one reference point.

When it comes to researching the competition, coming up with some kind of data structure makes the work more comprehensive (and saner). We put our competitors’ data in specific categories, like products & services (prices included), target market, benefits, values, and brand message. We also used something called a brand positioning map which looks like this:

Analyzing secondary data was probably the easiest part, as the data we needed was already prepared in ready-to-use graphs, statistics and insights. We just had to sift through the contents to look for answers to our questions.

5. Interpret and present conclusions

Analyzing the data is not enough. You need to compile your data in a communicative, actionable way for the decision makers. A good practice is to include in your report: all your information, a description of your research process, the results, conclusions, and recommended actions.

Summing up my 3D printing example, I hypothesised that our market was experiencing a major shift and that the company should follow that trend. The research we did verified that hypothesis positively:

• Our resellers were getting more and more inquiries about professional/industrial use cases and machines. As you can imagine, the budget of this kind of client was significantly higher than hobbyists but so were the expectations.
• Our resellers indicated that this phenomenon is here to stay. Moreover, they declared interest in a new 3D printer tailored to the needs of their more demanding clientele.
• Our customers were outgrowing their early-adopter habits and wanted something easier to use, something plug-and-play that just worked reliably. Tinkering with the printer was something only hardcore makers were interested in.
• The companies we were interested in had already started adapting to the professional/premium market both with their offer and smart marketing communication.
• We also found a ton of other interesting data that we used later on. For example, we found that apart from engineers and designers, an equally interesting segment was educational institutions.

Our initial market research lasted for about two months. We also came back to it whenever we had the chance (or the necessity) and reiterated it to see if we were on the right track.

Was it worth it? Let me tell you this: it saved the company. Our research showed us that this was the last call to reposition the brand and the product. Our original target segment was being gradually dominated by companies we couldn’t compete with.

It took us some time to get buy-in from key stakeholders and implement the conclusions throughout the whole company (eventually, we got it right). As a result, we increased sales, increased customer satisfaction and put ourselves on a more profitable growth track—a win-win for everyone. We even went as far as merging with another manufacturer to shorten the time to get to that sweet market spot.

Looking back, no one from our close competitors survived. They didn’t adapt as we did, and we owed everything to market research.

Whatever you do, avoid these common market research mistakes :

• Poor sampling.
• Ambiguous questions.
• Leading or loaded questions (questions that show bias or contain controversial assumptions).
• Unclear or too many research objectives.
• Mixing correlation with causation.
• Ignoring competitive analysis.
• Allowing biases to influence your research ( confirmation bias  being arguably the most common and the most dangerous one).
• Not tracking data on a regular basis.

Online market research tools and resources

Market research reaches back to the 1930s and it’s probably rooted even “deeper” than the 20th century. Everything you could do then you can do now better, faster and cheaper thanks to these online tools and resources.

SEO tools - research the market with Ahrefs

I’ve put together 3 quick wins that can help with your market research—and that’s only a taste of what you can do with Ahrefs.

1. Brand awareness

In the early 20th century, you’d have to hire market researchers to spend days or even weeks asking people “have you heard about brand X”. Today, you can simply look up the search volume for that brand.

So let’s say you run a drone manufacturing brand, and you want to check out your competitors’ brand awareness in France. Go to Ahrefs Keywords Explorer , input the names of the brands, select “France” as your market, and in a flash you get:

The branded keyword volume indicates the brand awareness of that brand in a particular market. You can also keep track of that data by performing this search regularly to see if there are significant changes over time (for example, impacted by a recent campaign).

2. Feature demand

The next game-changing feature for electric cars will concern batteries, charging time, and charging cost (and not autopilot). How do I know?

Well, I opened Ahrefs Keywords Explorer , typed in “electric cars”, and went to the Questions report to find out what people search for. This gave me an idea of what problems electric car owners have (and potential owners worry about). You can easily perform similar research for your niche.

3. Understand the language of your market

Gerald Zaltman in his popular book “How Customers Think” proposes the idea that one of the major erroneous assumptions of marketing is that consumers think in words.

On the other hand, when consumers Google something they have to think in words. And when we market to those consumers we have to think in words as well. The question is: which words?

Let’s say that you want to enter a new and innovative market in the USA, for example the synthetic fermentation-derived dairy industry, also called animal-free dairy.

To you, this set of words “animal-free dairy” may be the very center of your business and marketing efforts. But let’s see what other people think. Let’s use Keywords Explorer  to see how many people search Google in the U.S. just for that phrase:

Whoops! Looks like your product category has disappointingly low awareness. Does this mean you’re doomed? Not necessarily. 

Let’s try other words. Words that mean something different, but still closely related to your new product.

Now we’re onto something. People search for “vegan dairy” and “lactose free dairy” more often. Not the same, but closely related. Yet, look at the difference in search volume.

Words make a huge difference.  And Google knows that.

The only reason you were able to put all of those three phrases in the same bucket was that you knew the connection between those words. The problem is that your target audience may not know that connection; they may not even know that this kind of product exists. This quick analysis of search volume shows that you may want to make that connection, for example with content marketing .

If you create content around related higher volume keywords, you can potentially get more organic traffic than simply focusing on the keyword designating your product category.  Look, even though you might believe the main benefit of your animal-free product is something unrelated to lactose, e.g., cruelty-free production, you might want to address the problem of lactose intolerance to appeal to people with this condition.

But that’s not all. You may have noticed “low lactose cheese” in the bottom right corner. This refers to the nifty feature of Ahrefs’ Keyword Explorer called “Parent topic”. Parent topic indicates that Google sees a given keyword as part of a broader topic.

If we click on this Parent topic, we uncover even more search demand:

We can see that the search for the topic “low lactose cheese” exceeds the “vegan dairy” topic by almost 300% in the US. Also, uncovering that parent topic gave us 879 potential keyword ideas (some of them have even higher search volume, like “lactose free cheese”).

Want to discover even more topic associations? No problem. You can dive deeper into this research by using other features of Ahrefs’ Keyword explorer. For example,the  Also rank for  report allows you to see which other keywords (and topics) the top 100 ranking pages for your target keyword also rank for.

This market research quick-win ties into the broader topic of keyword research. If you want to uncover even more keyword ideas and learn how to analyze them, read  our keyword research guide .

Source: https://hubspot.com

Customer Relationship Management software is used to manage and track interactions between a company and its customers and prospects. Usually, it works in tandem with sales or marketing automation software (or has integrations for them). If used properly, it is a true cornucopia of market insight.

As I pointed out earlier, it’s one of those primary data sources that you can leverage to discover patterns in your customer behaviour or characteristics. Popular choices are Hubspot, Salesforce, Intercom, but there is a ton of CRM software out there, so check out a software comparison like G2  to see what best suits your needs.

User feedback tools

This type of tool allows you to carry out our aforementioned survey research method online.

Create targeted, user-specific surveys and analyze answers with tools like Google Forms , SurveyMonkey , Typeform , or Qualaroo .  

Sending out your typical email with a survey is not the only option, for example with Qualaroo you can display surveys:

• In your digital product
• In your SaaS product
• Inside your web app
• Inside your mobile app
• On your website
• On your mobile site
• On your prototypes.
• On most public URLs. Even competitor sites

Need more? No problem, check out SurveyMonkey’s Market Research solution . It taps into the agile market research models we’ve discussed. They’ve got 14 online solutions that help you stay on top of your game, including customer segmentation, monitoring market dynamics, brand, creative analysis, feature importance, finding the right price for your products, and more.

So you think you have a tough business challenge? This daring gentleman is trying to disrupt… eggs. Extremely hard, but doable with market research on his side.

Website/app analytics

Tracking your website or app traffic is absolute marketing basics. Just look at some data dimensions Google Analytics offers:

• Demographics

Sounds familiar? Yup, that sounds like good ol’ market segmentation. Here’s the best part: it’s free, quick to perform and it’s based on your primary data.

If you’ve never dug deeper into Google Analytics, or similar analytics software (e.g., Matomo , Woopra ) here are some questions that this marketing technology can answer for you: 

• What do people search for once they’re on my site?
• What differentiates customers who have made a purchase from the ones that haven’t?
• What are my top countries by revenue?
• What are my best selling products?

If you’re already using Google Analytics, see if you’re not making these Google Analytics tracking mistakes. 

User experience research tools

Commonly used by UX designers, but just listen to the value propositions of these tools:

• “See and hear real people using your website, online shop or app.” ( https://userpeek.com/ )
• “Real-time feedback. From real customers. Wherever you work. So you can create experiences that get real results.” ( https://www.usertesting.com/ )
• “Scalable & Customized User Research” ( https://www.userlytics.com/ )
• “Record video and audio of your users, so you see and hear their exact experience with your product.” ( https://www.loop11.com/ )

Again, sounds much like our market research methods, right? And it’s no joke, thousands of companies use these tools.

User experience research tools allow you to get user feedback and insights on your products, prototypes, websites, and apps.

Testing is based on tasks your test-takers perform. You can either use your own user base or define a custom base using their services. You’ll get written reports and even recorded videos that you can incorporate into your market research and make sure you’re properly taking advantage of that market opportunity.

Ad planning tools

That’s right—the Facebook, LinkedIn, and Twitter ad planner you already use for running ads can give you some insight into the numbers behind the market segments you’re interested in.

30+ males with higher education interested in technology gadgets? No problem. Female C-suite decision-makers from Europe? It’s all there.

Census data

The availability of this kind of data may vary based on your target market. For example, in the US the Census Bureau  offers a free resource for searching the country’s census data. You can filter the data by topics, years, geography, surveys, or industry codes. You can also access premade interactive tables (which you can also download) or simply explore certain regions of the country using their maps.

Business intelligence tools

With business intelligence tools like Tableau , Looker or Sisense , you can connect to any data source to perform data cleaning, statistical operations, and data visualization. They are designed to allow you to glean insights into your data, and communicate effectively with your stakeholders. It’s like SQL combined with R, but you don’t need coding skills and you get a user-friendly interface.

Because these tools are overflowing with functionality and because they are usually pricey, they are overkill for small companies with basic market research needs. Often you will find that the tool that you are already using for your research method comes with some data analysis and visualization functions. And if not, you can always import your data to Excel or Google Docs and use Google Data Studio for a shareable interactive presentation.

Other noteworthy tools and services

• Think with Google
• Living Facts

Final thoughts

Market research is no easy feat. If you feel intimidated by it, you’re not the only one. But don’t shy away from it. The benefits of conducting even sporadic market research can have benefits for your business you simply can’t ignore. You won’t turn into a market research pro overnight, but the good news is you don’t have to. You can go the agile way (like Ahrefs), use affordable self-service online tools and resources, or you can even outsource your research. As long as you base your marketing game plan on valid data, you dramatically improve your chances for success.

Got questions? Ping me on Twitter .

How To Do Market Research: Definition, Types, Methods

Jan 2, 2024

11 min. read

Market research isn’t just collecting data. It’s a strategic tool that allows businesses to gain a competitive advantage while making the best use of their resources. Research reveals valuable insights into your target audience about their preferences, buying habits, and emerging demands — all of which help you unlock new opportunities to grow your business.

When done correctly, market research can minimize risks and losses, spur growth, and position you as a leader in your industry. 

Let’s explore the basic building blocks of market research and how to collect and use data to move your company forward:

Table of Contents

What Is Market Research?

Why is market research important, market analysis example, 5 types of market research, what are common market research questions, what are the limitations of market research, how to do market research, improving your market research with radarly.

Market Research Definition: The process of gathering, analyzing, and interpreting information about a market or audience.

Market research studies consumer behavior to better understand how they perceive products or services. These insights help businesses identify ways to grow their current offering, create new products or services, and improve brand trust and brand recognition .

You might also hear market research referred to as market analysis or consumer research .

Traditionally, market research has taken the form of focus groups, surveys, interviews, and even competitor analysis . But with modern analytics and research tools, businesses can now capture deeper insights from a wider variety of sources, including social media, online reviews, and customer interactions. These extra layers of intel can help companies gain a more comprehensive understanding of their audience.

With consumer preferences and markets evolving at breakneck speeds, businesses need a way to stay in touch with what people need and want. That’s why the importance of market research cannot be overstated.

Market research offers a proactive way to identify these trends and make adjustments to product development, marketing strategies , and overall operations. This proactive approach can help businesses stay ahead of the curve and remain agile as markets shift.

Market research examples abound — given the number of ways companies can get inside the minds of their customers, simply skimming through your business’s social media comments can be a form of market research.

A restaurant chain might use market research methods to learn more about consumers’ evolving dining habits. These insights might be used to offer new menu items, re-examine their pricing strategies, or even open new locations in different markets, for example.

A consumer electronics company might use market research for similar purposes. For instance, market research may reveal how consumers are using their smart devices so they can develop innovative features.

Market research can be applied to a wide range of use cases, including:

• Testing new product ideas
• Improve existing products
• Entering new markets
• Right-sizing their physical footprints
• Improving brand image and awareness
• Gaining insights into competitors via competitive intelligence

Ultimately, companies can lean on market research techniques to stay ahead of trends and competitors while improving the lives of their customers.

Market research methods take different forms, and you don’t have to limit yourself to just one. Let’s review the most common market research techniques and the insights they deliver.

1. Interviews

3. Focus Groups

4. Observations

5. AI-Driven Market Research

One-on-one interviews are one of the most common market research techniques. Beyond asking direct questions, skilled interviewers can uncover deeper motivations and emotions that drive purchasing decisions. Researchers can elicit more detailed and nuanced responses they might not receive via other methods, such as self-guided surveys.

Interviews also create the opportunity to build rapport with customers and prospects. Establishing a connection with interviewees can encourage them to open up and share their candid thoughts, which can enrich your findings. Researchers also have the opportunity to ask clarifying questions and dig deeper based on individual responses.

Market research surveys provide an easy entry into the consumer psyche. They’re cost-effective to produce and allow researchers to reach lots of people in a short time. They’re also user-friendly for consumers, which allows companies to capture more responses from more people.

Big data and data analytics are making traditional surveys more valuable. Researchers can apply these tools to elicit a deeper understanding from responses and uncover hidden patterns and correlations within survey data that were previously undetectable.

The ways in which surveys are conducted are also changing. With the rise of social media and other online channels, brands and consumers alike have more ways to engage with each other, lending to a continuous approach to market research surveys.

3. Focus groups

Focus groups are “group interviews” designed to gain collective insights. This interactive setting allows participants to express their thoughts and feelings openly, giving researchers richer insights beyond yes-or-no responses.

One of the key benefits of using focus groups is the opportunity for participants to interact with one another. They spark discussions while sharing diverse viewpoints. These sessions can uncover underlying motivations and attitudes that may not be easily expressed through other research methods.

Observing your customers “in the wild” might feel informal, but it can be one of the most revealing market research techniques of all. That’s because you might not always know the right questions to ask. By simply observing, you can surface insights you might not have known to look for otherwise.

This method also delivers raw, authentic, unfiltered data. There’s no room for bias and no potential for participants to accidentally skew the data. Researchers can also pick up on non-verbal cues and gestures that other research methods may fail to capture.

5. AI-driven market research

One of the newer methods of market research is the use of AI-driven market research tools to collect and analyze insights on your behalf. AI customer intelligence tools and consumer insights software like Meltwater Radarly take an always-on approach by going wherever your audience is and continuously predicting behaviors based on current behaviors.

By leveraging advanced algorithms, machine learning, and big data analysis , AI enables companies to uncover deep-seated patterns and correlations within large datasets that would be near impossible for human researchers to identify. This not only leads to more accurate and reliable findings but also allows businesses to make informed decisions with greater confidence.

Tip: Learn how to use Meltwater as a research tool , how Meltwater uses AI , and learn more about consumer insights and about consumer insights in the fashion industry .

No matter the market research methods you use, market research’s effectiveness lies in the questions you ask. These questions should be designed to elicit honest responses that will help you reach your goals.

Examples of common market research questions include:

Demographic market research questions

• What is your age range?
• What is your occupation?
• What is your household income level?
• What is your educational background?
• What is your gender?

Product or service usage market research questions

• How long have you been using [product/service]?
• How frequently do you use [product/service]?
• What do you like most about [product/service]?
• Have you experienced any problems using [product/service]?
• How could we improve [product/service]?
• Why did you choose [product/service] over a competitor’s [product/service]?

Brand perception market research questions

• How familiar are you with our brand?
• What words do you associate with our brand?
• How do you feel about our brand?
• What makes you trust our brand?
• What sets our brand apart from competitors?
• What would make you recommend our brand to others?

Buying behavior market research questions

• What do you look for in a [product/service]?
• What features in a [product/service] are important to you?
• How much time do you need to choose a [product/service]?
• How do you discover new products like [product/service]?
• Do you prefer to purchase [product/service] online or in-store?
• How do you research [product/service] before making a purchase?
• How often do you buy [product/service]?
• How important is pricing when buying [product/service]?
• What would make you switch to another brand of [product/service]?

Customer satisfaction market research questions

• How happy have you been with [product/service]?
• What would make you more satisfied with [product/service]?
• How likely are you to continue using [product/service]?

Bonus Tip: Compiling these questions into a market research template can streamline your efforts.

Market research can offer powerful insights, but it also has some limitations. One key limitation is the potential for bias. Researchers may unconsciously skew results based on their own preconceptions or desires, which can make your findings inaccurate.

• Depending on your market research methods, your findings may be outdated by the time you sit down to analyze and act on them. Some methods struggle to account for rapidly changing consumer preferences and behaviors.
• There’s also the risk of self-reported data (common in online surveys). Consumers might not always accurately convey their true feelings or intentions. They might provide answers they think researchers are looking for or misunderstand the question altogether.
• There’s also the potential to miss emerging or untapped markets . Researchers are digging deeper into what (or who) they already know. This means you might be leaving out a key part of the story without realizing it.

Still, the benefits of market research cannot be understated, especially when you supplement traditional market research methods with modern tools and technology.

Let’s put it all together and explore how to do market research step-by-step to help you leverage all its benefits.

Step 1: Define your objectives

You’ll get more from your market research when you hone in on a specific goal : What do you want to know, and how will this knowledge help your business?

This step will also help you define your target audience. You’ll need to ask the right people the right questions to collect the information you want. Understand the characteristics of the audience and what gives them authority to answer your questions.

Step 2: Select your market research methods

Choose one or more of the market research methods (interviews, surveys, focus groups, observations, and/or AI-driven tools) to fuel your research strategy.

Certain methods might work better than others for specific goals . For example, if you want basic feedback from customers about a product, a simple survey might suffice. If you want to hone in on serious pain points to develop a new product, a focus group or interview might work best.

You can also source secondary research ( complementary research ) via secondary research companies , such as industry reports or analyses from large market research firms. These can help you gather preliminary information and inform your approach.

Step 3: Develop your research tools

Prior to working with participants, you’ll need to craft your survey or interview questions, interview guides, and other tools. These tools will help you capture the right information , weed out non-qualifying participants, and keep your information organized.

You should also have a system for recording responses to ensure data accuracy and privacy. Test your processes before speaking with participants so you can spot and fix inefficiencies or errors.

Step 4: Conduct the market research

With a system in place, you can start looking for candidates to contribute to your market research. This might include distributing surveys to current customers or recruiting participants who fit a specific profile, for example.

Set a time frame for conducting your research. You might collect responses over the course of a few days, weeks, or even months. If you’re using AI tools to gather data, choose a data range for your data to focus on the most relevant information.

Step 5: Analyze and apply your findings

Review your findings while looking for trends and patterns. AI tools can come in handy in this phase by analyzing large amounts of data on your behalf.

Compile your findings into an easy-to-read report and highlight key takeaways and next steps. Reports aren’t useful unless the reader can understand and act on them.

Tip: Learn more about trend forecasting , trend detection , and trendspotting .

Meltwater’s Radarly consumer intelligence suite helps you reap the benefits of market research on an ongoing basis. Using a combination of AI, data science, and market research expertise, Radarly scans multiple global data sources to learn what people are talking about, the actions they’re taking, and how they’re feeling about specific brands.

Our tools are created by market research experts and designed to help researchers uncover what they want to know (and what they don’t know they want to know). Get data-driven insights at scale with information that’s always relevant, always accurate, and always tailored to your organization’s needs.

Learn more when you request a demo by filling out the form below:

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Market research is a cornerstone of all successful, strategic businesses. It can also be daunting for entrepreneurs looking to launch a startup or start a side hustle . What is market research, anyway? And how do you…do it?

We’ll walk you through absolutely everything you need to know about the market research process so that by the end of this guide, you’ll be an expert in market research too. And what’s more important: you’ll have actionable steps you can take to start collecting your own market research.

What Is Market Research?

Market research is the organized process of gathering information about your target customers and market. Market research can help you better understand customer behavior and competitor strengths and weaknesses, as well as provide insight for the best strategies in launching new businesses and products. There are different ways to approach market research, including primary and secondary research and qualitative and quantitative research. The strongest approaches will include a combination of all four.

“Virtually every business can benefit from conducting some market research,” says Niles Koenigsberg of Real FiG Advertising + Marketing . “Market research can help you piece together your [business’s] strengths and weaknesses, along with your prospective opportunities, so that you can understand where your unique differentiators may lie.” Well-honed market research will help your brand stand out from the competition and help you see what you need to do to lead the market. It can also do so much more.

The Purposes of Market Research

Why do market research? It can help you…

• Pinpoint your target market, create buyer personas, and develop a more holistic understanding of your customer base and market.
• Understand current market conditions to evaluate risks and anticipate how your product or service will perform.
• Validate a concept prior to launch.
• Identify gaps in the market that your competitors have created or overlooked.
• Solve problems that have been left unresolved by the existing product/brand offerings.
• Identify opportunities and solutions for new products or services.
• Develop killer marketing strategies .

What Are the Benefits of Market Research?

Strong market research can help your business in many ways. It can…

• Strengthen your market position.
• Help you identify your strengths and weaknesses.
• Help you identify your competitors’ strengths and weaknesses.
• Minimize risk.
• Center your customers’ experience from the get-go.
• Help you create a dynamic strategy based on market conditions and customer needs/demands.

What Are the Basic Methods of Market Research?

The basic methods of market research include surveys, personal interviews, customer observation, and the review of secondary research. In addition to these basic methods, a forward-thinking market research approach incorporates data from the digital landscape like social media analysis, SEO research, gathering feedback via forums, and more. Throughout this guide, we will cover each of the methods commonly used in market research to give you a comprehensive overview.

Primary vs. Secondary Market Research

Primary and secondary are the two main types of market research you can do. The latter relies on research conducted by others. Primary research, on the other hand, refers to the fact-finding efforts you conduct on your own.

This approach is limited, however. It’s likely that the research objectives of these secondary data points differ from your own, and it can be difficult to confirm the veracity of their findings.

Primary Market Research

Primary research is more labor intensive, but it generally yields data that is exponentially more actionable. It can be conducted through interviews, surveys, online research, and your own data collection. Every new business should engage in primary market research prior to launch. It will help you validate that your idea has traction, and it will give you the information you need to help minimize financial risk.

You can hire an agency to conduct this research on your behalf. This brings the benefit of expertise, as you’ll likely work with a market research analyst. The downside is that hiring an agency can be expensive—too expensive for many burgeoning entrepreneurs. That brings us to the second approach. You can also do the market research yourself, which substantially reduces the financial burden of starting a new business .

Secondary Market Research

Secondary research includes resources like government databases and industry-specific data and publications. It can be beneficial to start your market research with secondary sources because it’s widely available and often free-to-access. This information will help you gain a broad overview of the market conditions for your new business.

Identify Your Goals and Your Audience

Before you begin conducting interviews or sending out surveys, you need to set your market research goals. At the end of your market research process, you want to have a clear idea of who your target market is—including demographic information like age, gender, and where they live—but you also want to start with a rough idea of who your audience might be and what you’re trying to achieve with market research.

You can pinpoint your objectives by asking yourself a series of guiding questions:

• What are you hoping to discover through your research?
• Who are you hoping to serve better because of your findings?
• What do you think your market is?
• Who are your competitors?
• Are you testing the reception of a new product category or do you want to see if your product or service solves the problem left by a current gap in the market?
• Are you just…testing the waters to get a sense of how people would react to a new brand?

Once you’ve narrowed down the “what” of your market research goals, you’re ready to move onto how you can best achieve them. Think of it like algebra. Many math problems start with “solve for x.” Once you know what you’re looking for, you can get to work trying to find it. It’s a heck of a lot easier to solve a problem when you know you’re looking for “x” than if you were to say “I’m gonna throw some numbers out there and see if I find a variable.”

How to Do Market Research

This guide outlines every component of a comprehensive market research effort. Take into consideration the goals you have established for your market research, as they will influence which of these elements you’ll want to include in your market research strategy.

Secondary Data

Secondary data allows you to utilize pre-existing data to garner a sense of market conditions and opportunities. You can rely on published market studies, white papers, and public competitive information to start your market research journey.

Secondary data, while useful, is limited and cannot substitute your own primary data. It’s best used for quantitative data that can provide background to your more specific inquiries.

Find Your Customers Online

Once you’ve identified your target market, you can use online gathering spaces and forums to gain insights and give yourself a competitive advantage. Rebecca McCusker of The Creative Content Shop recommends internet recon as a vital tool for gaining a sense of customer needs and sentiment. “Read their posts and comments on forums, YouTube video comments, Facebook group [comments], and even Amazon/Goodreads book comments to get in their heads and see what people are saying.”

If you’re interested in engaging with your target demographic online, there are some general rules you should follow. First, secure the consent of any group moderators to ensure that you are acting within the group guidelines. Failure to do so could result in your eviction from the group.

Not all comments have the same research value. “Focus on the comments and posts with the most comments and highest engagement,” says McCusker. These high-engagement posts can give you a sense of what is already connecting and gaining traction within the group.

Social media can also be a great avenue for finding interview subjects. “LinkedIn is very useful if your [target customer] has a very specific job or works in a very specific industry or sector. It’s amazing the amount of people that will be willing to help,” explains Miguel González, a marketing executive at Dealers League . “My advice here is BE BRAVE, go to LinkedIn, or even to people you know and ask them, do quick interviews and ask real people that belong to that market and segment and get your buyer persona information first hand.”

Market research interviews can provide direct feedback on your brand, product, or service and give you a better understanding of consumer pain points and interests.

When organizing your market research interviews, you want to pay special attention to the sample group you’re selecting, as it will directly impact the information you receive. According to Tanya Zhang, the co-founder of Nimble Made , you want to first determine whether you want to choose a representative sample—for example, interviewing people who match each of the buyer persona/customer profiles you’ve developed—or a random sample.

“A sampling of your usual persona styles, for example, can validate details that you’ve already established about your product, while a random sampling may [help you] discover a new way people may use your product,” Zhang says.

Market Surveys

Market surveys solicit customer inclinations regarding your potential product or service through a series of open-ended questions. This direct outreach to your target audience can provide information on your customers’ preferences, attitudes, buying potential, and more.

Every expert we asked voiced unanimous support for market surveys as a powerful tool for market research. With the advent of various survey tools with accessible pricing—or free use—it’s never been easier to assemble, disseminate, and gather market surveys. While it should also be noted that surveys shouldn’t replace customer interviews , they can be used to supplement customer interviews to give you feedback from a broader audience.

Who to Include in Market Surveys

• Current customers
• Past customers
• Your existing audience (such as social media/newsletter audiences)

Example Questions to Include in Market Surveys

While the exact questions will vary for each business, here are some common, helpful questions that you may want to consider for your market survey. Demographic Questions: the questions that help you understand, demographically, who your target customers are:

• “What is your age?”
• “Where do you live?”
• “What is your gender identity?”
• “What is your household income?”
• “What is your household size?”
• “What do you do for a living?”
• “What is your highest level of education?”

Product-Based Questions: Whether you’re seeking feedback for an existing brand or an entirely new one, these questions will help you get a sense of how people feel about your business, product, or service:

• “How well does/would our product/service meet your needs?”
• “How does our product/service compare to similar products/services that you use?”
• “How long have you been a customer?” or “What is the likelihood that you would be a customer of our brand?

Personal/Informative Questions: the deeper questions that help you understand how your audience thinks and what they care about.

• “What are your biggest challenges?”
• “What’s most important to you?”
• “What do you do for fun (hobbies, interests, activities)?”
• “Where do you seek new information when researching a new product?”
• “How do you like to make purchases?”
• “What is your preferred method for interacting with a brand?”

Survey Tools

Online survey tools make it easy to distribute surveys and collect responses. The best part is that there are many free tools available. If you’re making your own online survey, you may want to consider SurveyMonkey, Typeform, Google Forms, or Zoho Survey.

Competitive Analysis

A competitive analysis is a breakdown of how your business stacks up against the competition. There are many different ways to conduct this analysis. One of the most popular methods is a SWOT analysis, which stands for “strengths, weaknesses, opportunities, and threats.” This type of analysis is helpful because it gives you a more robust understanding of why a customer might choose a competitor over your business. Seeing how you stack up against the competition can give you the direction you need to carve out your place as a market leader.

Social Media Analysis

Social media has fundamentally changed the market research landscape, making it easier than ever to engage with a wide swath of consumers. Follow your current or potential competitors on social media to see what they’re posting and how their audience is engaging with it. Social media can also give you a lower cost opportunity for testing different messaging and brand positioning.

SEO Analysis and Opportunities

SEO analysis can help you identify the digital competition for getting the word out about your brand, product, or service. You won’t want to overlook this valuable information. Search listening tools offer a novel approach to understanding the market and generating the content strategy that will drive business. Tools like Google Trends and Awario can streamline this process.

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About Mary Kate Miller

Mary Kate Miller writes about small business, real estate, and finance. In addition to writing for Foundr, her work has been published by The Washington Post, Teen Vogue, Bustle, and more. She lives in Chicago.

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Data Analytics in Marketing Research: Definition, Types, Process, and More

Data Analytics is a critical function affecting all aspects of the business. This article covers broad data analytic topics for those new to the area of data analytics. At Sawtooth Software, we focus on marketing research and primary data collection through survey research, so this article specifically calls out the use of data analytics in marketing sciences.

Before diving deep into the breadth of data analytics, let’s summarize key takeaways you will gain from this guide:

With that introduction, let’s dive deeper into the field of Data Analytics .

Table of Contents

What Is Data Analytics?

At its core, Data Analytics involves the computational analysis of data or statistics. Data can involve numeric values, text, graphics, video or audio files. The value of data analytics lies in its ability to transform vast amounts of raw, often unstructured data into actionable insights. These insights can then guide decision-making, optimize operations, and unveil opportunities for innovation.

Consider a retail business that leverages data analytics to understand customer purchasing patterns, preferences, and behaviors. By analyzing sales data, customer feedback, social media trends, along with primary survey data, the business can tailor its product offerings, improve customer service, predict future trends, and optimize products and pricing for new or existing products. This practical application underscores the transformative power of data analytics in driving business strategy and growth.

Data Analytics vs. Data Science

While often used interchangeably, Data Analytics and Data Science involve nuanced differences, with complementary roles within an organization. Data Analytics focuses on processing and performing statistical analysis on existing datasets. In contrast, Data Science typically involves heavier programming, developing algorithms, and model-building to derive additional insights to solve complex problems and predict future outcomes. Data scientists often leverage machine learning and AI (Artificial Intelligence) in building algorithms, models, and applications.

The impact of both fields on Decision-Making is important. Data analytics provides a more immediate, focused insight primarily aimed at enhancing operational efficiency and answering specific questions. Data Science, on the other hand, dives deeper into predictive analysis, machine learning, and AI to forecast future trends and behaviors.

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Types of Data Analysis

Data Analysis can be broadly categorized into four main types, each serving a unique purpose in the data analytics landscape. Understanding these types helps you to apply the right analytical approach to your data to derive meaningful conclusions and strategies.

Descriptive Analytics

This type of analytics focuses on the “what” and is the most basic and commonly used. For market research surveys, descriptive analytics summarizes responses to demographic, psychographic, attitudinal, brand usage data, and the like. For historical data, it aims to provide a clear picture of what has happened in the past by summarizing such things as sales data, operations data, advertising data, and website click traffic. Descriptive analytics answers the "What happened?" question by analyzing key performance indicators (KPIs) and metrics. For example, a business might use descriptive analytics to understand its sales trends, customer engagement levels, or production efficiencies over the past year.

Diagnostic Analytics

Moving beyond the “what” to understand the “why,” diagnostic analytics involves a deeper dive into data to examine patterns of association or correlation, with the hope to uncover root causes of attitudes, preference, events or trends. It employs techniques such as correlation analysis, t-tests, chi-square tests, key drivers analysis, and tree-based analysis (such as CART or random forests). For customer satisfaction research key drivers analysis tries to explain how overall customer satisfaction or loyalty can be improved by improving the features or elements of the product or service delivery. An organization might also leverage diagnostic analytics to identify why certain groups of respondents are more likely to be price sensitive or why customer churn increased in a specific period.

Predictive Analytics

This forward-looking analysis leverages data and models that can predict future outcomes. Conjoint analysis is a widely used predictive analytics approach for studying how changes to product features and prices affect demand. MaxDiff (best-worst scaling) is often used to assess which product claims will likely increase new product trial, or which side effects would most discourage patients from undergoing a cancer treatment therapy. Machine learning algorithms such as random forests can score a database to predict which customers are most likely to be receptive to an offer. As another example, a financial institution might use predictive analytics to assess the risk of loan default based on a customer's credit history, transaction data, and market conditions.

Prescriptive Analytics

An advanced form of analytics, prescriptive analytics, goes a step further by recommending actions you can take to affect desired outcomes. It not only predicts what will happen but also suggests various courses of action and the potential implications of each. This type of analytics is particularly valuable in complex decision-making environments. For example, a conjoint analysis market simulator leveraging optimization search routines can determine the right mix of product features and price to reach a particularly valuable market segment .

Each of these types of data analysis plays a critical role in an organization's data-driven decision-making process, enabling businesses to understand their past performance, diagnose issues, create successful products and services, predict future trends, and make informed choices that align with their strategic objectives.

Data Analytics Real-World Example

Consider the case of a data analyst working for an e-commerce platform. By analyzing customer purchase history, the analyst identifies a trend of increased sales in eco-friendly products ( descriptive analytics , the “what”). A survey is designed and conducted to dig deeper into which customers are preferring eco-friendly products, why they prefer them, and for which usage occasions ( diagnostic analytics , the “why”). Within another market research survey, a conjoint analysis or MaxDiff study is included for determining the right product claims, product features, and pricing, targeted to which market segments to develop new products for sales growth ( predictive and prescriptive analytics ).

The role of a data analyst is dynamic and impactful, bridging the gap between data and strategic decision-making. It's a role that requires not only technical skills but also curiosity, creativity, and a keen understanding of the business landscape.

The Data Analysis Process

Breaking down a data analytics process into systematic steps can demystify the journey, making it more approachable and manageable. The Data Analysis Process is a structured approach that guides data analysts from the initial phase of understanding the business problem to the final stage of delivering actionable insights.

Step 1: Defining the Question

The first and perhaps most critical step in the data analysis process is defining the question . This involves understanding the business objectives, the decisions that need to be supported by the data, and the specific questions that the analysis aims to answer. A well-defined question not only provides direction for the analysis but also ensures that the outcomes are relevant and actionable.

Step 2: Collecting Clean Data

Data collection is the next step, where data analysts gather the necessary data from various sources. This could include internal databases, secondary sources of data, customer surveys, and more. Ensuring the cleanliness of the data is paramount at this stage; hence, data cleaning and preprocessing become essential tasks. This involves removing inaccuracies, inconsistencies, handling missing values, and trimming outliers to ensure the data is reliable and accurate for analysis. For market research surveys, this also involves identifying unreliable respondents, fraudulent respondents, and records completed by survey bots.

Step 3: Data Analysis and Interpretation

With clean data in hand, analysts proceed to the heart of the process: data analysis and interpretation . This involves applying statistical methods and analytical models to the data to identify patterns, trends, and correlations. The choice of techniques varies depending on the data and the questions at hand, ranging from simple descriptive statistics to complex predictive models.

Step 4: Data Visualization and Sharing Findings

Data visualization plays a crucial role in this phase, as it transforms complex data sets into visual representations that are easier to understand and interpret. Tools like charts, graphs, and dashboards are used to illustrate the findings compellingly and intuitively.

Finally, sharing the findings with stakeholders is an integral part of the data analysis process. This involves not just presenting the data, but also providing insights, recommendations, and potential implications in a clear and persuasive manner. Effective communication is key here, as the ultimate goal is to inform decision-making and drive action based on the data insights.

For product optimization and pricing research, market simulators from conjoint analysis can be even more useful to a decision-maker than charts and graphs. They allow the manager to test thousands of potential product formulations and prices, to find the right products to best reach target market segments.

Example Scenario

Imagine a data analyst working for a healthcare provider, tasked with reducing patient wait times. By following the data analysis process, the analyst:

• Defines the question: What factors contribute to increased wait times?
• Collects and cleans data from patient records, appointment systems, and feedback surveys.
• Analyzes the data to identify patterns, such as peak times for appointments and common delays in the patient check-in process.
• Visualizes the findings using graphs that highlight peak congestion times and the factors causing delays.
• Shares the insights with the healthcare management team, recommending adjustments to appointment scheduling and check-in processes to reduce wait times.

This systematic approach not only provides actionable insights but also showcases the power of data analytics in solving real-world problems.

Understanding the data analysis process is foundational for anyone looking to delve into data analytics, providing a roadmap for transforming data into insights that can drive informed decision-making.

Tools and Techniques

The field of Data Analytics is supported by a variety of tools and techniques designed to extract, analyze, and interpret data. Market research surveys are often a key source of data. The choice of the right analytics tools and the application of specific analytical techniques can significantly impact the quality of the insights generated. In this section, we will explore some of the key data analytics techniques and highlight commonly used tools, especially for primary survey research, providing tips on how to choose the right ones for specific projects.

Key Data Analytics Techniques

Statistical Testing: When summarizing data using means (for continuous data) or percent of observations falling into different categories (for categorical or nominal data), we often want to know whether the differences we’re observing between groups of respondents, branches of a company, or time periods are statistically meaningful (that they were unlikely to occur by chance).

Correlation Analysis : A statistical approach that examines whether there is a positive, negative, or no correlation between two continuous variables. The square of the correlation coefficient indicates the percent of variance in one variable that is explained by the other.

Regression Analysis : A statistical method used to examine the relationship between dependent (outcome) and independent (predictor) variables. There are regression techniques for predicting continuous variables (ordinary least squares) as well as for categorical outcomes (logistic regression). Regression analysis is particularly useful for identifying relationships between variables, making predictions, and forecasting.

Tree-Based Analysis : These techniques are used for finding which variables tend to predict or explain some outcome, such as purchase of a product, or diagnosis with a disease. Common examples are Classification and Regression Trees (CART) and Random Forests, a combination of multiple trees that can be ensembled for a more accurate consensus prediction.

Time-Series Analysis : Focused on analyzing data points collected or recorded at specific time intervals. This technique is crucial for trend analysis, seasonal pattern identification, and forecasting.

Cluster Analysis : A family of methods used to group a set of objects (such as respondents) in such a way that objects in the same group (called a cluster) are more similar to each other than to those in other groups. It’s extensively used in market segmentation and targeting strategies. Common approaches include k-means clustering, latent class clustering, and ensemble approaches that leverage multiple techniques to achieve a more robust consensus solution.

Conjoint Analysis and MaxDiff: Discrete choice methods often used in market research and economics for assessing the importance of features, measuring price sensitivity , and predicting demand for products or services.

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Commonly Used Data Analytics Tools

Excel : A versatile tool for basic data analysis, familiar to most professionals, capable of handling various data analysis functions including pivot tables, basic statistical functions, and data visualization.

SQL : Essential for data extraction, especially from relational databases. SQL allows analysts to query specific data from large databases efficiently.

Python/R : Both are powerful programming languages favored in data analytics for their libraries and packages that support data manipulation, statistical analysis, and machine learning.

Tableau/Power BI : These tools are leaders in data visualization, providing robust platforms for creating dynamic and interactive dashboards and reports.

Sawtooth Software : Provides tools, support services, and consulting services for designing and fielding market research surveys, as well as conducting conjoint analysis, MaxDiff, and cluster analysis.

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Choosing the Right Tools and Techniques

Selecting the appropriate tools and techniques depends on several factors:

Project Requirements : The nature of the data and the specific questions you are trying to answer will guide your choice. For instance, Python might be preferred for its machine learning capabilities, while Tableau is chosen for sophisticated visualizations.

Data Size and Complexity : Large datasets and complex analyses might require more advanced tools like Python or R, whereas Excel (limited to around 1 million rows and 16 thousand columns) could suffice for smaller, simpler datasets.

Skill Set : The proficiency of the data analyst in using these tools also plays a significant role. It’s essential to balance the choice of tool with the analyst's comfort level and expertise.

Budget and Resources : Some tools require significant investment, both in terms of licenses and training. Open-source options like Python and R offer powerful functionalities at no cost.

Example Application

Consider a retail company looking to optimize its inventory levels based on historical sales data. The data analyst might use:

• SQL to extract sales data from the company's database.
• Python for conducting time-series analysis to identify sales trends and predict future demand.
• Tableau to create visualizations that illustrate these trends and forecasts, facilitating strategic discussions on inventory management.

Through the strategic application of these tools and techniques, data analysts can uncover valuable insights that drive informed decision-making and strategic planning within organizations.

The exploration of tools and techniques underscores the versatility and power of data analytics. Whether through statistical analysis, predictive modeling, or insightful visualizations, these tools empower analysts to turn data into strategic assets.

Importance and Uses of Data Analytics

Data analytics has become a pivotal element of business strategy, influencing decisions across all levels of an organization. Its importance cannot be overstated, as it provides the insights needed for businesses to innovate, stay competitive, and improve operational efficiency. This section explores the significance of data analytics across various domains, including healthcare, product optimization and pricing, and its relevance for small enterprises and startups.

Embracing data analytics allows organizations to move from intuition-based decisions to informed strategies. As we advance, the integration of data analytics into every aspect of business operations and strategy will become more pronounced, highlighting its critical role in shaping the future of industries worldwide.

Transforming Business Success

Data analytics empowers businesses to make informed decisions by providing a deep understanding of customer behavior, market trends, and operational performance. It enables companies to:

• Optimize Operations : By analyzing data, businesses can identify inefficiencies in their operations and find ways to reduce costs and improve productivity.
• Enhance Customer Experience : Data analytics allows businesses to understand their customers' preferences and behaviors, leading to improved revenues, customer satisfaction and loyalty.
• Product Innovation/Optimization and Pricing : Survey research methods such as conjoint analysis and MaxDiff are especially useful for optimizing features for and pricing products/services, keeping companies at the forefront of innovation and competitiveness.

In healthcare, data analytics plays a critical role in improving patient outcomes and operational efficiency. By analyzing patient data, healthcare providers can:

• Predict Outbreaks : Data analytics can help in predicting disease outbreaks, enabling healthcare systems to prepare and respond effectively.
• Personalize Treatment : Analytics (including MaxDiff and conjoint analysis) can elicit real-time preferences from patients that can lead to better personalized treatment plans, improving patient care and outcomes. Several groups of physicians and academic researchers have presented research at Sawtooth Software conferences on using these tools for facilitating better communication between patients and doctors and selecting treatment plans for diseases such as cancer to result in improved outcomes.
• Improve Operational Efficiency : Data analytics can optimize hospital operations, reducing wait times and improving patient flow.

Product Optimization and Pricing

Repositioning existing products, developing new products, and setting effective pricing strategies are vital to most any business. By using gold standard tools for survey research such as conjoint analysis and MaxDiff, businesses can:

• Find Optimal Sets of Features : Conjoint analysis can within a single survey research project evaluate 1000s of potential feature configurations, determining which feature sets will compete best relative to specific competitors.
• Identify Profitable Target Segments : Conjoint analysis or MaxDiff are excellent techniques for identifying and sizing market segments that have specific needs and are associated with different levels of price sensitivity.
• Measure Price Elasticity: Choice-Based Conjoint (CBC) analysis is particularly valuable for estimating price elasticity of demand for the firm’s brand(s), as well as assessing how changes to competitor’s prices affect quantity demanded for the firm’s brand(s) ( cross-elasticity ).

Relevance for Small Enterprises and Startups

For small enterprises and startups, data analytics offers a competitive edge, enabling them to:

• Make Informed Decisions : Even with limited resources, small businesses can use data analytics to make strategic decisions based on market trends and customer feedback.
• Identify Opportunities : Analytics can reveal market gaps and customer needs, providing startups with insights to innovate and capture new markets.

The Role of a Data Analyst

In the heart of data-driven organizations lies the Data Analyst , a professional whose responsibilities are as varied as they are critical. Understanding the role of a data analyst not only highlights the importance of data analytics in modern business but also sheds light on the skills and perspectives needed to excel in this field.

Responsibilities and Tasks

A data analyst's journey often begins with problem formulation and developing hypotheses and strategies for solving a business or organizational problem. Next often follows data collection, ensuring the quality and accuracy of the data sourced from various channels, including survey research. This foundational step is critical, as the integrity of the data directly impacts the insights derived from it. The analyst then proceeds to clean and preprocess the data, preparing it for analysis. This involves handling missing values, removing duplicates, trimming outliers, and ensuring the data is in a format suitable for analysis.

The core of a data analyst's role involves statistical analysis and data modeling to interpret the data. They employ a range of techniques, from simple descriptive statistics to more complex predictive models, to unearth trends, patterns, and correlations within the data.

However, the role extends beyond just analyzing data. Data visualization and reporting are equally important, as these allow the analyst to communicate their findings in a clear, compelling manner. Whether through dashboards, reports, or presentations, the ability to present data in an accessible way is crucial for informing decision-making processes within an organization.

Professional Insights

From the perspective of a seasoned data analyst, the job is not just about numbers and algorithms; it's about solving challenging business and organizational problems and storytelling with data. It involves translating complex datasets into actionable insights that can drive strategy and impact. An effective data analyst combines analytical skills with business acumen, understanding the broader context in which the data exists.

Career Opportunities in Data Analytics

The field of data analytics offers a dynamic career landscape, characterized by a high demand for skilled professionals capable of turning data into actionable insights. As businesses across industries continue to recognize the value of data-driven decision-making, the demand for data analysts has surged, creating a wealth of opportunities for those equipped with the right skills and knowledge. This section will explore career prospects, including job growth, and discuss the relevance of degrees and certifications in data analytics.

Job Growth and Demand

The demand for data analysts is projected to grow significantly in the coming years. According to industry reports and labor statistics, the job market for data analysts is expected to grow much faster than the average for all occupations. This growth is driven by the increasing volume of data generated by businesses and the need to analyze this data to make informed decisions.

• Projected Job Growth : Data analytics roles are expected to see one of the highest rates of job growth across all sectors.
• Industries Hiring : While technology and finance traditionally lead in hiring data analysts, healthcare, marketing, and retail are rapidly catching up, reflecting the broad applicability of data analytics skills.

Salary Ranges

Salaries for data analysts can vary widely based on experience, location, and industry. However, data analysts typically command competitive salaries, reflecting the high demand and specialized skill set required for the role.

• Entry-Level Positions : Even at entry levels, data analysts can expect salaries that are competitive, with potential for rapid growth as experience and skills develop.
• Senior Roles : Experienced data analysts, especially those with specialized skills or leadership roles, can command significantly higher salaries.

Degrees and Certifications

While a degree in data science, statistics, computer science, or a related field can provide a strong foundation, the field of data analytics also values practical experience and specialized skills.

• Relevant Degrees : Bachelors and masters degrees in relevant fields are highly valued, but not always required.
• Certifications : Certifications can supplement academic degrees and provide evidence of specialized skills in data analytics tools and methodologies. Popular certifications include Certified Analytics Professional (CAP), Google Data Analytics Professional Certificate, and various platform-specific certifications (e.g., Tableau, SAS).

Making It in Data Analytics

Success in a data analytics career is not solely determined by technical skills. Employers also value problem-solving abilities, business acumen, and the capacity to communicate complex findings in a clear and actionable manner. Continuous learning and adaptation to new tools, technologies, and methodologies are essential in this rapidly evolving field.

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Data analytics is not just a tool but a strategic asset that can drive significant business value, enhance operational efficiency, and foster innovation across various sectors. From improving healthcare outcomes to enabling small businesses to compete more effectively, the applications of data analytics are vast and varied.

As we embrace the future, the importance of data analytics in driving business success and societal improvement will only continue to grow. For those considering a career in data analytics or looking to implement data-driven strategies in their operations, the potential is limitless. The benefits of data-driven decision-making underscore the transformative power of data analytics, making it an indispensable part of modern business and governance.

Whether you are a budding data analyst, a business leader, or simply curious about the potential of data analytics, the journey into this field is not only rewarding but essential for those looking to make an impact in the digital age. 

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Market Research Definition, Types, Tools and Benefits

Published on Jul 01, 2022

More than doubling in size from 2008 to 2021, the market research sector brought in over $76.4 (Statista) billion worldwide in 2021.  

What is Market Research?

Market research is the process of gathering, analyzing, and interpreting information about a market, about the product or service to be offered for sale in that market. It is also about the previous, current, and potential customers for the product or service. 

Data collection, analysis, and interpretation are the three main steps in any successful market research project. The data could pertain to a certain demographic, general consumers, rival businesses, or the entire market. This is the cornerstone of any thriving business. The findings can be used for anything from discovering a fresh opportunity to entering the market to developing an entirely new product or service. 

Small business owners can benefit greatly from conducting market research. It can eliminate uncertainty in the creative process and direct energy and funding toward the most promising ideas and initiatives. Many types of market research are conducted by businesses at many different stages. 

Market Research for Businesses  

Accurate and comprehensive data gives a plethora of information on potential and existing customers, competitors, and the industry as a whole, making it the bedrock of any successful commercial endeavor. It helps entrepreneurs weigh the odds of success before sinking a lot of money into a new firm. 

An essential aspect of every successful business plan is conducting market research to gather data that can be used to address potential marketing obstacles. In reality, it is not viable to develop tactics like market segmentation (identifying distinct groups within a market) and product differentiation (establishing a unique selling proposition for a product or service that distinguishes it from the competition) without conducting market research. 

Types of Market Research  

1. quantitative research .

The results of quantitative studies are typically presented using numerical and graphic representations. It's the gold standard for verifying or disproving hypotheses. It is possible to establish broad, overarching truths about a subject by conducting this kind of study. Experiments, numerically recorded observations, and surveys with a limited number of predetermined answer choices are all examples of common quantitative approaches. 

2. Qualitative research 

Words are the currency of qualitative inquiry. It's a tool for making sense of things like ideas and experiences. Using this method, you can learn more about a topic from every angle, which is very useful for researching controversial or poorly understood subjects. Open-ended interviews, written descriptions of observations, and in-depth analyses of the existing literature are all examples of common qualitative techniques. 

Qualitative vs. Quantitative Research 

Quantitative research focuses on numerical and statistical facts, while qualitative research examines concepts and interpretations. Both are necessary to learn various things. Comparatively, qualitative research draws its conclusions from interviews and documents rather than statistics and reasoning. Quantitative studies typically report their findings numerically or graphically, while qualitative studies report their findings verbally. 

3. Primary Research 

Primary data refers to a study that seeks to collect firsthand information from real-world participants. Primary research is data collected by the researcher themselves through various techniques of approaching the target audience directly. You have full legal and ethical rights to the data set you to create. Primary research can be challenging due to the time, money, resources, and familiarity with the topic that it demands. 

4. Secondary Research 

Secondary research is a study that is done after primary research has already been conducted, and it consists of analyzing, interpreting, and summarizing the results of the primary research. A more precise definition of secondary research would be any study that makes use of publicly available data. When conducting secondary research, scholars refer to information that has already been gathered, processed, and made public (and therefore, you do not own this data). Since the accessible data has already been evaluated and interpreted, the researcher just needs to determine the data he wants to use, i.e., the data that is necessary for his project. 

Primary Research vs. Secondary Research

Research that involves the collection of new information, or "primary" research, is distinguished from secondary research by the fact that it is conducted for the first time on a particular topic. Instead, secondary research makes use of information that has previously been gathered through primary research. The fundamental dividing line between primary and secondary research is whether the research has been done before. 

5. Market Research 

Market research on branding can help a business develop, launch, and sustain its brand. This may involve the firm's ethos, branding, visuals, ideals, or very name. Interviews, focus groups, and surveys are all viable options for conducting research. 

6. Customer Research 

Market research on customers is learning what factors most strongly affect your demographic of interest and what adjustments may be made to better attract and retain them as paying customers. The objective of this study is to acquire an intimate understanding of your consumer base and their habits and preferences as they relate to your business. 

7. Competitor Research 

Conducting market research on your competitors entails learning about their businesses and assessing how they stack up against your own. Your competitive product in the market or how to break into a new market could also be a topic of discussion. The study's overarching goal is to help your company prepare for the future by identifying methods to set itself apart from competitors and by learning from customers' opinions and suggestions. 

8. Product Research 

Conducting market research on your items is essential to ensuring they will sell successfully once they hit the shelves. Finding out how people feel about your product and if they feel it's valuable and functioning properly is the goal of this study. The ability to think creatively about enhancements and new features is another benefit. 

Benefits of Market Research 

According to a survey, the market research business is expected to increase at a rate of 12-14% (The Economic Times) per year through FY26, at which point it would have surpassed the $4 billion mark. 

The following is a list of the most important reasons and benefits of marketing research: 

It's a great tool for boosting companies' standing. The ability to think critically and act on that thinking is the key to success. You can keep your business one step ahead of the competition by conducting market research to expand your knowledge of your market or target audience. 

Reduces the potential for loss on an investment. This is a basic point to think about, but it is often crucial to the success of a firm. When starting a firm, it makes sense to spend what amounts to a negligible amount on research and testing the market, product, concept, or idea. 

Possible dangers and benefits are highlighted. Insurance against these two glaring pitfalls lies in both primary research (fieldwork) and secondary research (desk research). Opportunities or red flags may be uncovered through the combination of this with qualitative research for further investigation. 

You can learn more about the advantages and disadvantages of your own business and of your competitors. To achieve entirely objective reporting, it is generally recommended to collaborate with a market research agency. Take advantage of what you've learned from study to improve in areas where you're weak and to gain an edge over the competition. 

Strategic preparation is helped by this. Where do you stand with the core principles of your company plan? If it's supported by data, and you've put in the time and effort to do your own (hopefully continuous) research, you can rest assured that you're giving yourself the best chance of success in your commercial endeavors. 

This aids in the identification of developing tendencies. Being the first, the best, or coming up with the idea that nobody else has is typically what it takes to stay ahead in business. Taking the pulse of your industry on a regular basis is an important habit. You can learn more about the tools available to you to identify and capitalize on these trends by consulting with a research firm or expert. 

Helpful for firms in keeping up with the competition. Being the best calls for an insatiable need for knowledge and a propensity to experiment. The key to success, and the ability to maintain that success, is knowing how to effectively apply the information gleaned from market research, audience research, and data research. 

It includes forecasts for future income. One of the most important parts of any market study is a forecast, which looks into the future and predicts the size, makeup, and trends of the market you're interested in. This allows for the categorization of prospective clients. You should prioritize the market that is the best fit for your business rather than the largest or fastest-growing. 

It's geared toward meeting the wants and desires of its patrons. Many things in business, including research, benefit from keeping clients front and center. By reaching out to individuals through online panels, web forums, telephone surveys, in-depth interviews, and focus groups, market researchers can learn where their business's ideas, services, and products can be strengthened. 

Using this method, one can measure the progress of one's company against predetermined standards. Utilize data gathered from the market to study the competition, gauge employee enthusiasm, identify knowledge or skill shortages, and identify development opportunities. This will allow you to consider novel approaches, ideas, and resources for boosting your company's efficiency. 

Market Research Tools 

In order to better understand your market and target audience, you need to use market research techniques. It's fundamental to every company's success, and in today's more crowded marketplace, a thorough familiarity with your target market is more important than ever. Good news: you don't have to be an "insights genius" to get started collecting the data you need, owing to the proliferation of market research tools. Some of the best and most widely used methods of market research include: 

• Answer the Public 
• Attest 
• Google Trends 
• Social Mention 
• Remesh 
• Heartbeat Ai 
• Think With Google 
• Spyfu 
• Latana 
• BuzzSumo 
• Statista 
• Typeform 
• Otter.ai 
• Dimensions.ai 

How to Conduct Research for Your Business: Market Research Strategies 

Despite their different objectives, market research and marketing research should use the same framework for gathering and analyzing information about your company's target audiences. These help in primary research as well as secondary research.  

Clearly identify the problem at stake. Establish an initial research topic. Having a clear research question in mind will allow you to better organize your findings. 

Start by figuring out your financial and time constraints. How much money do you have to put into your study? When do you anticipate finishing data collection? Research, like any other tactic for expanding your company, should be carried out within your means. Nonetheless, it may be worthwhile to spend more money to receive the most comprehensive results available, especially if the questions you are answering are time-sensitive. 

Planning your approach and requirements. Find out what information needs to be gathered and figure out how to get it. Observation, surveys, phone calls, and focus groups are among the alternatives. Consult a professional research agency if you are unsure of how to organize your data collection. 

Pick a way to sample the data. I need to know how you plan on picking people to take part in your study. You may require a cross-section of the consumer population at large, a subset of the population who share a particular characteristic of their way of life, or just the opinions of those who are already familiar with your brand. Develop a plan for tracking down and contacting the persons who will take part in your research. 

Prepare a data analysis strategy. Think about the methods you'll use to examine the data. Do you require numbers for statistical analysis, or can you get a sense of things from qualitative, observable data? Spend some time learning about the many types of analysis so you can pick the one that will yield the most useful results for your study. 

Gathering information. The next step is data collection, which may begin once you have settled on a research question and developed a strategy for answering it within the bounds of your time and money. Research is often outsourced to professional firms or consultants by many corporations. 

Examining the information. It is important to apply certain methods of analysis to make sense of your data, no matter how simple it may appear at first. Which analytical techniques you employ are most suited to your data is a function of the information you've gathered. Also, this is the time to double-check for any mistakes that might have crept into your data gathering, analysis, or sampling. 

Make the report you need. Concluding your research with a written report is the next to last stage. From formulating a problem statement to discussing the findings of your data study, your report should include it all. 

Why is Market Research Important?

Over 44,000 businesses across the United States provide some form of market research. Their total annual income is around $23 billion (QuestionPro).  

The importance of Market Research is the following -  

1. Identifies new products or services

By conducting market research, a business can learn what consumers want and how to best meet their demands. Identifying the major challenges associated with creating a product or service can help you save money. It's useful for figuring out what customers value most and how to implement that into your product or service offering. 

2. Identifies potential customers

You may learn more about your clientele by analyzing demographic information like their gender, age, income, occupation, and interests. You'll have a better idea of who to target with your future advertising efforts if you have a clear picture of your current clientele. When a product is marketed to the wrong demographic, sales suffer. 

3. Establishes viability of a product or service

If your organization is considering introducing a novel product or service to consumers, you should find out if there is a need for it. Do people need this product? Do the people you plan to sell to actually want this product? Does it have any chance of succeeding, and does it even have a chance of being a viable trend? 

4. Anticipates and discovers future market trends 

If you are familiar with your market and the tendencies that are just beginning to emerge, you will be better prepared to build tactics to combat any negative tendencies that may threaten your company. As a result, you can use rising tendencies to your advantage and propel your company forward. 

5. Keeps your company ahead of competitors

Examining your company's performance in relation to that of its rivals is a prime use for comparative research. If they're much ahead of you, it's a fantastic chance to figure out what you're doing wrong. It is possible to devise business plans that will help you surpass the competition. 

6. Decide the best marketing strategy

Conducting research is helpful for pinpointing the optimal distribution platform for reaching your target audience. If you find out that a large portion of your audience prefers one form of communication over another, it makes sense to concentrate your efforts there. Because of the scarcity of these resources, it only makes sense to direct them toward endeavors with a high probability of success. 

7. Reduces risk and increases profitability

The ability to assess the value of potential risks in light of past performance and anticipated future market behavior is a crucial business skill. The success or failure of a business idea depends heavily on the results of market research. Understanding your consumers and their habits is another crucial step in risk reduction. Taking less risk leads to greater financial rewards. 

8. Identifies threats and opportunities

The SWOT analysis is likely familiar to many of you. The acronym SWOT refers to a company's "strengths," "weaknesses," and "All four of them can be figured out with the use of market research . While a lot of data can be collected through market research, not all of it needs to be used. Use only information that is directly related to your major objective (which you will have established in advance). 

9. Helps to understand existing customers

By conducting market research, you can learn more about your current clientele. Because of this complexity, you can't assume that you know what your clients require. If you want to be successful, you need to take the temperature of your clientele on a frequent basis. Satisfaction levels among customers can also be measured with the help of surveys. You can find out what is bothering them and make adjustments if necessary. If they are already rather high, you can examine the factors that led to this success and implement changes to maintain it. 

10. Assists in realistic goal setting

Goals that are more realistic can be established with the support of up-to-the-minute information on your market and customer base. Knowing what to expect and how to realistically expand growth over time is greatly aided by establishing a growth pattern throughout time. Setting objectives that are too lofty will cause you to waste time and energy trying to achieve something that is impossible. 

How Efficient is Market Research? 

You should only invest time, energy, and money into market research if you expect to see a favorable return on that investment. Because it is so worthwhile, market research continues to play a significant role in the success of any organization. Market research won't ensure your company's success on its own, but it will arm you with the data you need to make the moves that will. 

Many of the advantages of this type of study were examined, but the drawbacks were also taken into account. If you don't conduct market research, you run the danger of losing clients to the competition, missing out on growth prospects, being more susceptible to hazards, making bad business decisions, and more. Some companies succeed without first doing their homework, but those situations are unusual. To build your firm and avoid typical errors, conduct market research. 

Market Research Methods  

Although there are a variety of approaches to conducting market research, the majority of companies opt to utilize one of the following five fundamental approaches: surveys, focus groups, personal interviews, observation, and field trials. Which strategies you decide to implement for your company will depend on the kinds of data you require as well as the amount of money you are ready to pay. Some of the major methods of market research are following - 

1. Surveys 

Surveys ask participants questions. They can use numerous survey methods. Surveys are a cost-effective technique to collect data for the study. Written surveys may encourage truthful responses since participants feel like they're speaking privately. 

2. Discussions 

Focus groups are moderated discussions. Companies assemble consumers to conduct focus groups, pose questions, and record replies. Participants' replies may reveal what consumers want in a firm or a product because they represent a broad group. Focus groups offer longer participant interaction than surveys. 

3. Interviews 

An interview combines focus group and one-on-one survey aspects. It includes recording one participant's comments at a time. Open-ended questions elicit in-depth answers from the interviewee. Researchers can ask follow-up questions and let interviewees ask their own. 

4. Social media listening 

Social media users routinely discuss corporations and their products. Researchers can search for discussion topics and measure consumer sentiment through social media listening. 

5. Observations 

Observation in market research means studying how consumers shop. Filming shoppers in a store and studying their shopping habits is common. This strategy can reveal their natural selves if they are ignorant of the observation. 

6. Experiments 

In a field trial, a corporation lets participants use a product under typical conditions and collects data. Participants' feedback was used to improve the product. 

7. Competitive analysis 

Competitive analysis is a secondary market research process where companies acquire and analyze competition information. It entails identifying primary and secondary rivals and analyzing their offerings, revenues, and marketing methods. 

8. Statistics 

Public data entails seeking and evaluating public market data. This research is often free online or in libraries. Research centers, polls, or government databases may provide this information. Public data is often used to confirm or compare primary market research. 

9. Purchased data 

Companies without the time or resources to perform their own market research can buy it. Several market research companies sell database subscriptions. Small and medium-sized businesses that can't afford primary market research may benefit from this approach. 

10. Analysis of sales data 

Competition analysis is just one way that may be used in tandem with sales data analysis to show how different business tactics affect revenue. It can also reveal consumers' buying behavior and consumer trends. 

Functions of Marketing Research  

The following are the main functions of Marketing Research - 

Description: Marketing research details customers. Age, sex, education, income, etc., are listed. It describes the market and competitors. This description helps marketing decision-makers and problem-solvers. 

Evaluation: Marketing research evaluates firm performance. It evaluates production and marketing policies. It measures customer reactions to product quality, price, packaging, advertising, sales, and promotions. If consumers dislike the company's policies, they must alter them. It contrasts company and rival policies. 

Explanation: Marketing research answers all marketing questions. It explains why sales are declining, why retailers are unhappy, etc. It explains the problem's causes. It gives a solution. 

Prediction: Marketing research forecasts. Predictions are future forecasts. It predicts sales, market prospects, dangers, marketing environment, customer behavior, etc. All predictions may be wrong. Predictions help the organization create plans and policies. It helps seize possibilities. It prevents future hazards. 

Decision Making: Marketing research aids decision-makers. It gives decision-making data. Decision-making involves choosing between options. Decision-making requires accurate data. MR helps the marketer decide. It gives decision-making data. It offers alternatives. It compares each option's pros and cons. It helps marketing managers choose the right action. 

Conclusion 

The world's markets are changing at a dizzying rate, making it more important than ever for companies to adapt quickly enough to be competitive. One method is to conduct market research. The results of your market research and analysis will provide you with a thorough understanding of your target audience's wants and needs, as well as your competitors' strengths and weaknesses. 

The key to making your business successful in the face of intense competition is identifying and fixing your deficiencies. The right market research tools will aid you in doing just that! The time to begin expanding your company is now.  

With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.    

A leader in  Market research services , SG Analytics enables organizations to achieve actionable insights into products, technology, customers, competition, and the marketplace to make insight-driven decisions.  Contact us  today if you are an enterprise looking to make critical data-driven decisions to prompt accelerated growth and breakthrough performance.

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Home Market Research

Market Research: What it Is, Methods, Types & Examples

Would you like to know why, how, and when to apply market research? Do you want to discover why your consumers are not buying your products? Are you interested in launching a new product, service, or even a new marketing campaign, but you’re not sure what your consumers want?

LEARN ABOUT: Market research vs marketing research

To answer the questions above, you’ll need help from your consumers. But how will you collect that data? In this case and in many other situations in your business, market research is the way to get all the answers you need.

In this ultimate guide about market research, you’ll find the definition, advantages, types of market research, and some examples that will help you understand this type of research. Don’t forget to download the free ebook available at the end of this guide!

LEARN ABOUT: Perceived Value

Content Index

Three key objectives of market research

Why is market research important.

• Types of Market Research: Methods and Examples

Steps for conducting Market Research

Benefits of an efficient market research, 5 market research tips for businesses, why does every business need market research, free market research ebook, what is market research.

Market research is a technique that is used to collect data on any aspect that you want to know to be later able to interpret it and, in the end, make use of it for correct decision-making.

Another more specific definition could be the following:

Market research is the process by which companies seek to collect data systematically to make better decisions. Still, its true value lies in the way in which all the data obtained is used to achieve a better knowledge of the market consumer.

The process of market research can be done through deploying surveys , interacting with a group of people, also known as a sample , conducting interviews, and other similar processes.  

The primary purpose of conducting market research is to understand or examine the market associated with a particular product or service to decide how the audience will react to a product or service. The information obtained from conducting market research can be used to tailor marketing/ advertising activities or determine consumers’ feature priorities/service requirement (if any).

LEARN ABOUT: Consumer Surveys

Conducting research is one of the best ways of achieving customer satisfaction , reducing customer churn and elevating business. Here are the reasons why market research is important and should be considered in any business:

• Valuable information: It provides information and opportunities about the value of existing and new products, thus, helping businesses plan and strategize accordingly.
• Customer-centric: It helps to determine what the customers need and want. Marketing is customer-centric and understanding the customers and their needs will help businesses design products or services that best suit them. Remember that tracing your customer journey is a great way to gain valuable insights into your customers’ sentiments toward your brand.
• Forecasts: By understanding the needs of customers, businesses can also forecast their production and sales. Market research also helps in determining optimum inventory stock.
• Competitive advantage: To stay ahead of competitors market research is a vital tool to carry out comparative studies. Businesses can devise business strategies that can help them stay ahead of their competitors.

LEARN ABOUT: Data Analytics Projects

Types of Market Research: Market Research Methods and Examples

Whether an organization or business wishes to know the purchase behavior of consumers or the likelihood of consumers paying a certain cost for a product segmentation , market research helps in drawing meaningful conclusions.

LEARN ABOUT: Behavioral Targeting

Depending on the methods and tools required, the following are the types:

1. Primary Market Research (A combination of both Qualitative and Quantitative Research):

Primary market research is a process where organizations or businesses get in touch with the end consumers or employ a third party to carry out relevant studies to collect data. The data collected can be qualitative data (non-numerical data) or quantitative data (numerical or statistical data).

While conducting primary market research, one can gather two types of information: Exploratory and Specific. Exploratory research is open-ended, where a problem is explored by asking open ended questions in a detailed interview format usually with a small group of people, also known as a sample. Here the sample size is restricted to 6-10 members. Specific research, on the other hand, is more pinpointed and is used to solve the problems that are identified by exploratory research.

LEARN ABOUT: Marketing Insight

As mentioned earlier, primary market research is a combination of qualitative market research and quantitative market research. Qualitative market research study involves semi-structured or unstructured data collected through some of the commonly used qualitative research methods like:

Focus groups :

Focus group is one of the commonly used qualitative research methods. Focus group is a small group of people (6-10) who typically respond to online surveys sent to them. The best part about a focus group is the information can be collected remotely, can be done without personally interacting with the group members. However, this is a more expensive method as it is used to collect complex information.

One-to-one interview:

As the name suggests, this method involves personal interaction in the form of an interview, where the researcher asks a series of questions to collect information or data from the respondents. The questions are mostly open-ended questions and are asked to facilitate responses. This method heavily depends on the interviewer’s ability and experience to ask questions that evoke responses.

Ethnographic research :

This type of in-depth research is conducted in the natural settings of the respondents. This method requires the interviewer to adapt himself/herself to the natural environment of the respondents which could be a city or a remote village. Geographical constraints can be a hindering market research factor in conducting this kind of research. Ethnographic research can last from a few days to a few years.

Organizations use qualitative research methods to conduct structured market research by using online surveys , questionnaires , and polls to gain statistical insights to make informed decisions.

LEARN ABOUT: Qualitative Interview

This method was once conducted using pen and paper. This has now evolved to sending structured online surveys to the respondents to gain actionable insights. Researchers use modern and technology-oriented survey platforms to structure and design their survey to evoke maximum responses from respondents.

Through a well-structured mechanism, data is easily collected and reported, and necessary action can be taken with all the information made available firsthand.

Learn more: How to conduct quantitative research

2. Secondary Market Research:

Secondary research uses information that is organized by outside sources like government agencies, media, chambers of commerce etc. This information is published in newspapers, magazines, books, company websites, free government and nongovernment agencies and so on. The secondary source makes use of the following:

• Public sources: Public sources like library are an awesome way of gathering free information. Government libraries usually offer services free of cost and a researcher can document available information.
• Commercial sources: Commercial source although reliable are expensive. Local newspapers, magazines, journal, television media are great commercial sources to collect information.
• Educational Institutions: Although not a very popular source of collecting information, most universities and educational institutions are a rich source of information as many research projects are carried out there than any business sector.

Learn more: Market Research Example with Types and Methods

A market research project may usually have 3 different types of objectives.

• Administrative : Help a company or business development, through proper planning, organization, and both human and material resources control, and thus satisfy all specific needs within the market, at the right time.
• Social : Satisfy customers’ specific needs through a required product or service. The product or service should comply with a customer’s requirements and preferences when consumed.
• Economical : Determine the economical degree of success or failure a company can have while being new to the market, or otherwise introducing new products or services, thus providing certainty to all actions to be implemented.

LEARN ABOUT:  Test Market Demand

Knowing what to do in various situations that arise during the investigation will save the researcher time and reduce research problems . Today’s successful enterprises use powerful market research survey software that helps them conduct comprehensive research under a unified platform, providing actionable insights much faster with fewer problems.

LEARN ABOUT:  Market research industry

Following are the steps to conduct effective market research.

Step #1: Define the Problem

Having a well-defined subject of research will help researchers when they ask questions. These questions should be directed to solve problems and must be adapted to the project. Make sure the questions are written clearly and that the respondents understand them. Researchers can conduct a marketing test with a small group to know if the questions are going to know whether the asked questions are understandable and if they will be enough to gain insightful results.

Research objectives should be written in a precise way and should include a brief description of the information that is needed and the way in which it will obtain it. They should have an answer to this question “why are we doing the research?”

Learn more: Interview Questions

Step #2: Define the Sample

To carry out market research, researchers need a representative sample that can be collected using one of the many sampling techniques . A representative sample is a small number of people that reflect, as accurately as possible, a larger group.

• An organization cannot waste their resources in collecting information from the wrong population. It is important that the population represents characteristics that matter to the researchers and that they need to investigate, are in the chosen sample.
• Take into account that marketers will always be prone to fall into a bias in the sample because there will always be people who do not answer the survey because they are busy, or answer it incompletely, so researchers may not obtain the required data.
• Regarding the size of the sample, the larger it is, the more likely it is to be representative of the population. A larger representative sample gives the researcher greater certainty that the people included are the ones they need, and they can possibly reduce bias. Therefore, if they want to avoid inaccuracy in our surveys, they should have representative and balanced samples.
• Practically all the surveys that are considered in a serious way, are based on a scientific sampling, based on statistical and probability theories.

There are two ways to obtain a representative sample:

• Probability sampling : In probability sampling , the choice of the sample will be made at random, which guarantees that each member of the population will have the same probability of selection bias and inclusion in the sample group. Researchers should ensure that they have updated information on the population from which they will draw the sample and survey the majority to establish representativeness.
• Non-probability sampling : In a non-probability sampling , different types of people are seeking to obtain a more balanced representative sample. Knowing the demographic characteristics of our group will undoubtedly help to limit the profile of the desired sample and define the variables that interest the researchers, such as gender, age, place of residence, etc. By knowing these criteria, before obtaining the information, researchers can have the control to create a representative sample that is efficient for us.

When a sample is not representative, there can be a margin of error . If researchers want to have a representative sample of 100 employees, they should choose a similar number of men and women.

The sample size is very important, but it does not guarantee accuracy. More than size, representativeness is related to the sampling frame , that is, to the list from which people are selected, for example, part of a survey.

LEARN ABOUT: Behavioral Research If researchers want to continue expanding their knowledge on how to determine the size of the sample consult our guide on sampling here.

Step #3: Carry out data collection

First, a data collection instrument should be developed. The fact that they do not answer a survey, or answer it incompletely will cause errors in research. The correct collection of data will prevent this.

Step #4: Analyze the results

Each of the points of the market research process is linked to one another. If all the above is executed well, but there is no accurate analysis of the results, then the decisions made consequently will not be appropriate. In-depth analysis conducted without leaving loose ends will be effective in gaining solutions. Data analysis will be captured in a report, which should also be written clearly so that effective decisions can be made on that basis.

Analyzing and interpreting the results is to look for a wider meaning to the obtained data. All the previous phases have been developed to arrive at this moment. How can researchers measure the obtained results? The only quantitative data that will be obtained is age, sex, profession, and number of interviewees because the rest are emotions and experiences that have been transmitted to us by the interlocutors. For this, there is a tool called empathy map that forces us to put ourselves in the place of our clientele with the aim of being able to identify, really, the characteristics that will allow us to make a better adjustment between our products or services and their needs or interests. When the research has been carefully planned, the hypotheses have been adequately defined and the indicated collection method has been used, the interpretation is usually carried out easily and successfully. What follows after conducting market research?

Learn more: Types of Interviews

Step #5: Make the Research Report

When presenting the results, researchers should focus on: what do they want to achieve using this research report and while answering this question they should not assume that the structure of the survey is the best way to do the analysis. One of the big mistakes that many researchers make is that they present the reports in the same order of their questions and do not see the potential of storytelling.

To make good reports, the best analysts give the following advice: follow the inverted pyramid style to present the results, answering at the beginning the essential questions of the business that caused the investigation. Start with the conclusions and give them fundamentals, instead of accumulating evidence. After this researchers can provide details to the readers who have the time and interest.

Step #6: Make Decisions

An organization or a researcher should never ask “why do market research”, they should just do it! Market research helps researchers to know a wide range of information, for example,  consumer purchase intentions, or gives feedback about the growth of the target market. They can also discover valuable information that will help in estimating the prices of their product or service and find a point of balance that will benefit them and the consumers.

Take decisions! Act and implement.

Learn more: Quantitative Research

• Make well-informed decisions: The growth of an organization is dependent on the way decisions are made by the management. Using market research techniques, the management can make business decisions based on obtained results that back their knowledge and experience. Market research helps to know market trends, hence to carry it out frequently to get to know the customers thoroughly.

LEARN ABOUT: Research Process Steps

• Gain accurate information: Market research provides real and accurate information that will prepare the organization for any mishaps that may happen in the future. By properly investigating the market, a business will undoubtedly be taking a step forward, and therefore it will be taking advantage of its existing competitors.
• Determine the market size: A researcher can evaluate the size of the market that must be covered in case of selling a product or service in order to make profits.
• Choose an appropriate sales system: Select a precise sales system according to what the market is asking for, and according to this, the product/service can be positioned in the market.
• Learn about customer preferences: It helps to know how the preferences (and tastes) of the clients change so that the company can satisfy preferences, purchasing habits, and income levels. Researchers can determine the type of product that must be manufactured or sold based on the specific needs of consumers.
• Gather details about customer perception of the brand: In addition to generating information, market research helps a researcher in understanding how the customers perceive the organization or brand.
• Analyze customer communication methods: Market research serves as a guide for communication with current and potential clients.
• Productive business investment: It is a great investment for any business because thanks to it they get invaluable information, it shows researchers the way to follow to take the right path and achieve the sales that are required.

LEARN ABOUT: Total Quality Management

The following tips will help businesses with creating a better market research strategy.

Tip #1: Define the objective of your research.

Before starting your research quest, think about what you’re trying to achieve next with your business. Are you looking to increase traffic to your location? Or increase sales? Or convert customers from one-time purchasers to regulars? Figuring out your objective will help you tailor the rest of your research and your future marketing materials. Having an objective for your research will flesh out what kind of data you need to collect.

Tip #2: Learn About Your Target Customers.

The most important thing to remember is that your business serves a specific kind of customer. Defining your specific customer has many advantages like allowing you to understand what kind of language to use when crafting your marketing materials, and how to approach building relationships with your customer. When you take time to define your target customer you can also find the best products and services to sell to them.

You want to know as much as you can about your target customer. You can gather this information through observation and by researching the kind of customers who frequent your type of business. For starters, helpful things to know are their age and income. What do they do for a living? What’s their marital status and education level?

Learn more: Customer Satisfaction

Tip #3: Recognize that knowing who you serve helps you define who you do not.

Let’s take a classic example from copywriting genius Dan Kennedy. He says that if you’re opening up a fine dining steakhouse focused on decadent food, you know right off the bat that you’re not looking to attract vegetarians or dieters. Armed with this information, you can create better marketing messages that speak to your target customers.

It’s okay to decide who is not a part of your target customer base. In fact, for small businesses knowing who you don’t cater to can be essential in helping you grow. Why? Simple, if you’re small your advantage is that you can connect deeply with a specific segment of the market. You want to focus your efforts on the right customer who already is compelled to spend money on your offer.

If you’re spreading yourself thin by trying to be all things to everyone, you will only dilute your core message. Instead, keep your focus on your target customer. Define them, go deep, and you’ll be able to figure out how you can best serve them with your products and services.

Tip #4: Learn from your competition.

This works for brick-and-mortar businesses as well as internet businesses because it allows you to step into the shoes of your customer and open up to a new perspective of your business. Take a look around the internet and around your town. If you can, visit your competitor’s shops. For example, if you own a restaurant specializing in Italian cuisine, dine at the other Italian place in your neighborhood or in the next township.

As you experience the business from the customer’s perspective, look for what’s being done right and wrong.

Can you see areas that need attention or improvement? How are you running things in comparison? What’s the quality of their product and customer service ? Are the customers here pleased? Also, take a close look at their market segment. Who else is patronizing their business? Are they the same kinds of people who spend money with you? By asking these questions and doing in-person research, you can dig up a lot of information to help you define your unique selling position and create even better offers for your customers.

Tip #5: Get your target customers to open up and tell you everything.

A good customer survey is one of the most valuable market research tools because it gives you the opportunity to get inside your customer’s head. However, remember that some feedback may be harsh, so take criticism as a learning tool to point you in the right direction.

Creating a survey is simple. Ask questions about what your customer thinks you’re doing right and what can be improved. You can also prompt them to tell you what kinds of products and services they’d like to see you add, giving you fantastic insight into how to monetize your business more. Many customers will be delighted to offer feedback. You can even give customers who fill out surveys a gift like a special coupon for their next purchase.

Bonus Tip: Use an insight & research repository

An insight & research repository is a consolidated research management platform to derive insights about past and ongoing market research. With the use of such a tool, you can leverage past research to get to insights faster, build on previously done market research and draw trendlines, utilize research techniques that have worked in the past, and more.

Market research is one of the most effective ways to gain insight into your customer base , competitors , and the overall market. The goal of conducting market research is to equip your company with the information you need to make informed decisions.

It is especially important when small businesses are trying to determine whether a new business idea is viable, looking to move into a new market, or are launching a new product or service.  Read below for a more in-depth look at how market research can help small businesses.

• COMPETITION According to a study conducted by Business Insider, 72% of small businesses focus on increasing revenue. Conducting research helps businesses gain insight into competitor behavior. By learning about your competitor’s strengths and weaknesses, you can learn how to position your product or offering. In order to be successful, small businesses need to have an understanding of what products and services competitors are offering, and their price point.

Learn more: Trend Analysis

• CUSTOMERS Many small businesses feel they need to understand their customers, only to conduct market research and learn they had the wrong assumptions. By researching, you can create a profile of your average customer and gain insight into their buying habits, how much they’re willing to spend, and which features resonate with them. Additionally, and perhaps more importantly, you can learn what will make someone use your product or service over a competitor.

Learn more: Customer Satisfaction Survey

• OPPORTUNITIES Potential opportunities, whether they are products or services, can be identified by conducting market research. By learning more about your customers, you can gather insights into complementary products and services. Consumer needs change over time, influenced by new technology and different conditions, and you may find new needs that are not being met, which can create new opportunities for your business.

Learn more: SWOT Analysis 

• FORECAST A small business is affected by the performance of the local and national economy, as are its’ customers. If consumers are worried, then they will be more restrained when spending money, which affects the business. By conducting research with consumers, businesses can get an idea of whether they are optimistic or apprehensive about the direction of the economy, and make adjustments as necessary. For example, a small business owner may decide to postpone a new product launch if it appears the economic environment is turning negative.

Learn more: 300+ Market Research Survey Questionnaires

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What Is Market Research?

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

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How to Do Market Research, Types, and Example

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

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

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

Key Takeaways

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

Market Research

How market research works.

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

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

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

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

Primary Market Research vs. Secondary Market Research

Market research usually consists of a combination of:

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

Primary Market Research

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

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

Secondary Market Research

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

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

History of Market Research

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

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

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

Types of Market Research

Face-to-face interviews.

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

Market research and surveys were adapted from these early techniques.

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

Focus Groups

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

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

Phone Research

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

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

Survey Research

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

Online Market Research

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

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

How to Conduct Market Research

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

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

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

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

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

Benefits of Market Research

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

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

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

Example of Market Research

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

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

What Are the Main Types of Market Research?

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

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

What Is Online Market Research?

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

What Are Paid Market Research Surveys?

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

What Is a Market Study?

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

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

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

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

Market research (also called marketing research) is the action or activity of gathering information about market needs and preferences. This helps companies understand their target market — how the audience feels and behaves.

There are 8 types of market research, each with their own methods and tools:

• Primary research
• Secondary research
• Qualitative research
• Quantitative research
• Branding research
• Customer research
• Competitor research
• Product research

Let’s start our list by exploring primary and secondary research first.

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1. Primary research

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

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

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

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

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

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

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

2. Secondary research

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

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

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

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

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

Learn more about primary vs secondary research methods

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

3. Qualitative research

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

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

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

4. Quantitative research

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

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

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

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

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

5. Branding research

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

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

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

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

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

6. Customer research

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

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

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

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

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

7. Competitor research

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

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

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

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

8. Product research

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

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

There are a number of avenues within product research:

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

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

How to use market research types in your company

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

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

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

Economical experience data (O data)

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

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

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

Emotional experience data (X data)

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

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

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

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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Marketing research process guide

The Kodak camera should tell you all you need to know about the critical importance of doing effective market research.

For decades, Kodak was synonymous with photography, dominating the market. Just about everyone had a Kodak camera or used Kodak film. Yet Kodak made an all-but-fatal mistake of not keeping up with market trends and fast-evolving consumer preferences. In doing so, Kodak completely missed the move to digital photography. Today, photography has evolved into the digital age—namely, transforming smartphones into high-quality cameras.

Doing market research but not sure where to start?

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Market research surveys help you identify, understand, and ultimately engage with your target customers. It also provides vital insight into the broader market landscape, your competitors, and trends affecting your industry and consumers.

Yet the process can be intimidating. Where do you start? What is the quickest and most effective path to success? How can you be sure that your research will be accurate and generate actionable insights?

Success can be found by gaining a greater understanding of marketing research and then following an effective marketing research process to achieve your goals.

What is marketing research?

Marketing research encompasses a range of activities aimed at gathering information and data to help your company better understand its target market. Once you capture market research data, you can then leverage it  to introduce or upgrade products, improve the customer experience, craft a sharper marketing position, or help guide business decisions.  

Need help identifying your target market ? We’re here to help. 

The marketing research process focuses on collecting insights from your target audience, such as their opinions and attitudes that would help you evaluate current products, services, or test concepts aimed at improving them. It can also gauge customer perceptions about your company. This is best known as brand tracking . 

Benefits of marketing research

Good marketing research has myriad benefits. At its core, marketing research replaces assumptions and go-with-your gut decision-making with data-driven insights to inform smarter strategy and tactics.

The overarching benefit of marketing research is to gain a deep understanding of your customers or prospects so you can take actions that will resonate with them to build greater customer loyalty, increase engagement and ultimately, grow your business. 

Data captured from surveys, interviews and other methods reveal customer behaviors that indicate why they buy particular products or take certain actions. Typically, most products are designed to solve a customer’s problem. The marketing research process gets to the root of those problems, paving the way to develop new products, services and support that connect with customers and help solve their challenges.

Try this additional resource: How to identify and reach your target market with surveys

A common focus of marketing research is concept testing: the process of determining if a new product will be a hit with customers. 

Based on analysis of the data and information captured, your company can develop and execute on a plan to more effectively launch a new product or service, or refine their branding and marketing position.

Examples of the marketing research process

Dove Soap early 2000s “Campaign for real beauty” offers a gorgeous example of effective marketing research delivering game-changing results. Relying on their internal research and insights from a global study "The real truth about beauty report," that found only 2% of respondents claimed to be beautiful.

The subsequent campaign aimed to redefine beauty, moving away from using professional models in their marketing to show women that they are naturally beautiful. The thinking was that if customers could see themselves in Dove's advertising, they would feel a deeper affinity for the company and its products.

The campaign was not only a huge win for Dove, but also a catalyst for marketing with “real people” for a wide range of consumer products and services.

Of course, there is a bottom line benefit to marketing research as well. Marketing research saves time and money on wasted efforts by quantifying what customers want, how much they like the product, and if they intend to use it. And, if done right, it can help drive increased sales and profitability.

Learn how to test products, packaging, messaging, concepts, and more. Market Research Solutions makes it easy. 

The marketing research process

The marketing research process follows a series of sequential steps that allow you to focus your efforts on understanding and addressing customer challenges. 

Market research is only as good as the information it collects. That’s why it’s critical to follow a step-by-step process that all leads to gathering quality data that is accurate and actionable. The following six steps offer the roadmap to success:

1.   Define the problem. Focus on the core customer challenge to solve.

2.   Develop your research plan. Create a roadmap that includes identifying your target audience , as well as determining what research tools to use, and the timeline and resources for the project.

3.   Gather your information . Whether you use surveys, interviews or other methods, you will gather and organize your data. You can rely on qualitative and/or quantitative data to help you get started.

4.   Analyze your data. Review the data for meaningful insights and home in on key points that will help inform your marketing campaigns and strategies.

5.   Develop a strategy. Determine how your business can shape your future products and services with the marketing research you’ve just done.

6.   Take action. Plan those next steps, which may include new product development, further concept testing, a new product launch, or fresh marketing campaign.

Savvy shortcut: SurveyMonkey’s market research resources offer a one-stop shop for key information, tools, and resources to expedite your market research efforts.  

Step 1:  Define the problem

When it comes to executing an effective marketing research process it’s wise to begin with the end in mind. In short, what do you aim to accomplish through your research? Clearly understanding the outcome you're aiming for will help you identify and frame the specific customer problems you want to study and solve. Ultimately, you want to take a deep dive into the challenges and desires of your target customers so you can design products and position services that fully meet their needs and craft supporting messaging that resonates deeply with them.  

If you frame your problem too broadly, you will get vague answers. Too narrow and you may not understand enough. Determine the scope of what you want to study and what conclusions you hope to arrive at.

Think about what decisions will be made based on your research. Are you testing a concept that will affect the packaging of your product? Are you gathering information for a new product that will fill a market gap? Ask good questions and they will help to clarify your outcome.

Brainstorming is a valuable way to arrive at your research problem. Your team can create lots of potential research questions and narrow them down to which ones best address your study.

Deeper dive: SurveyMonkey’s market research survey templates offer a shortcut to developing effective surveys to get the information you need to make better decisions about your products and services

Step 2:  Develop your research plan

The next step is to develop a plan of action that will drive toward the outcomes you are seeking and provide a roadmap to keep you on track.

The initial phase of this planning focuses on choosing your data sources – where you will get the information and insights you are looking for. At the core of this effort is effectively identifying your target audience. This is essential because you want to be sure that the feedback and data you gather comes from the people who are most relevant to what you are researching. SurveyMonkey can make sure you survey who you want when you want to with powerful and easy-to-use audience targeting tools .

If you conduct primary research, you will gather quantitative and qualitative data about your target audience. This approach includes:

• Surveys that produce quick results directly from your target audience. SurveyMonkey offers a wide range of market research surveys that can be tailored to meet your specific needs.
• Interviews with customers and prospects will provide deep insights, but take longer to conduct. You may use one-on-one interviews or a focus group to collect direct feedback. You will need to design an appropriate questionnaire.

You may also want to conduct secondary research that collects data from existing sources. This research is valuable and keeps you from spending extra time and money on information that is readily available.

Next, select your marketing research methods . Depending on your research problem, you’ll need to conduct different research methods. Here are several to consider:

• Observation : Will you be collecting data by observing your target audience’s behavior? Will you conduct interviews to capture data or use focus groups?  Will it be in an uncontrolled environment like a store or a controlled environment like a lab or conference room?
• Survey : Does it make sense to conduct a survey, or series of surveys, to capture audience feedback?
• Time : Will you collect data at one point in time, or a longitudinal study that takes place over a longer time period?
• Behavior or experimental: Will you be observing actual consumer behaviors or setting up an experiment to see how they react to a new product or idea?
• Sampling : How large does your sample size need to be to be relevant to your study?
• Contact methods:  How will you contact research participants? In their homes, and office, or virtual interviews?

Going global? SurveyMonkey can help you quickly identify survey participants from your target audience in up to 130 countries around the globe .  

Step 3: Collect your information

Now it is time to execute your research plan. A logical place to start is often with secondary research to find out what existing data is available from reputable sources that directly relate to your research question. The benefits of this are two-fold. Through the process of reviewing secondary research you gain a deeper understanding of what you are studying. Additionally, you help ensure that you are not duplicating research so you can focus your primary research on capturing fresh insights and data.

Unless your topic is brand new and there is no existing data, previous in-house or industry research, academic journals, and experts in your field may provide valuable information that contributes to your research.

Your primary research will then begin as you survey, interview, and observe your research participants. Depending on your research plan, you will have a combination of qualitative and quantitative data to analyze to substantiate your research question. 

It is important to be vigilant about any potential researcher biases that may exist. If you and your team have preconceived notions about how research participants will react to your questions, you will have to put them aside to ensure your data is collected according to your research plan.

Step 4: Analyze your data

After your primary and secondary data is collected, you're now ready to shift to the most meaningful phase of the process—analysis. Typically, researchers use several statistical methods to analyze their data, including advanced decision models and predictive analytics. Averages, statistical regression, spreadsheets and charts may all be part of your analysis.

Setting aside assumptions about what you think the data means allows for data-driven patterns and trends to emerge that should lead to actionable insights.  Depending on the research tools you use, analytics and reporting, like those included in online surveys, will supply ready-to-use information.

Your goal is to discover what your data says about your target audience’s behavior patterns, attitudes and preferences. You may find that your data proves or disproves your original research question. It’s important to remain open to both outcomes. Never fall victim to the temptation to alter the data to prove you are right. Not only is that unethical, it could lead to actions that actually run counter to your company’s goal, leading to disappointing, even disastrous, results.

Your data should be tabulated and ready for the next phase where you present your findings to your company or research sponsor for their review.

Step 5: Develop a strategy

Depending on who paid for or sponsored the study, you will have to create a formal research report that outlines your initial question, target audience, research methods, data collection methods, audience demographics, and finally your conclusion. You will want to clearly state if you proved or disproved your research question and outline your conclusions.

Your study conclusions may outline opportunities (or challenges) for your company or research sponsor. For instance, does your audience like the new packaging you tested and will they pay the proposed price you asked them in your survey? Can the company move to the next stage of product development, or did you research uncover different features that are more important to customers?

You may present your findings to company leadership, or small groups of relevant colleagues throughout your organization. Beyond reporting results, effective presentations often include actionable recommendations based on your findings. 

Step 6: Take action

Your research findings should serve as a guide to specific actions your company can take to improve business results or deepen customer relationships. If your concept testing was successful, it may be time to move to the product development phase. If your updated branding and logo received negative reviews, it’s time to go back to the drawing board or make some major tweaks. If your marketing messaging struck a powerful chord with your target audience, it likely makes sense to find ways to infuse that message into marketing materials and other content.

There are numerous other ways to use your research. Updating buyer personas, or developing new marketing strategies and advertising campaigns might be the next phase. Your research is a valuable first step in helping companies spend their resources on products and services that increase their revenue.

Types of marketing research

Your research plan will include one or more types of marketing research. The intention of each of these marketing research types is to identify, collect, analyze, and present specific solutions that your target audience perceives as a problem.

There are four types of marketing research that are designed to help you collect data that is appropriate for your audience.

Exploratory research

Have a fresh idea that no one has researched before? That’s the goal of exploratory research -- to collect information about a problem and insights about how to solve the problem. As a researcher, you will use secondary data that currently exists to provide insights about your goal.

You’ll need to remain open to what you discover. The data you collect may indicate new ways to restructure your research problem or look at it from a different perspective. As you clarify your concept, collect insights, structure potential problem statements, and discard impractical ideas, you’ll eventually arrive at a research problem that you can investigate. The goal is to collect more information about a topic, not pose or substantiate a solution.

Descriptive research

Descriptive research tests the research question to discover if it is accurate or inaccurate. This method measures how often and to what extent variables in the study are correlated.

This approach works if you are asking who would buy the product being tested, how the products are used, and who are the competitors. You can collect data through observations, surveys, or interviews. 

Because the researcher records the data, bias can occur.  As opposed to a survey that is directly filled out by the respondent, the data can be skewed if the researcher records a response that they personally prefer. 

Causal research

Causal research looks at the cause-and-effect relationship between variables. If one variable changes, the researcher can record the impact on another variable. Causal research can answer “what if” questions that include price changes, packaging changes, adding or removing product changes and more.

This approach is repeatable and can be replicated outside of a single research study. A potential downside to this approach is perceiving that cause-and-effect occurred, when in reality it was mere coincidences. In addition, if the two variables are closely linked, it can be hard to determine which variables contribute to the cause or effect.

Predictive research

As the name implies, researchers are looking for what will happen in the future. They may study future sales growth, user adoption, and market size based on data collected about product preferences and customer demographics.

Predictive research taps into demographics, brand preferences and other marketing data, often combining it with Big Data. The outcome is information that can predict purchasing trends, product volume, competitor insights and other datasets that aid in business decisions for marketing, sales, and finance. Predictive research can help companies decide where to spend their resources most efficiently.

Marketing research examples

Take pulse on customer satisfaction.

As a marketing leader, you can be challenged to make sure customers are satisfied. But how do you continually collect data to prove, or disprove, that customers are happy?

Customer satisfaction doesn’t just apply to individual products, it can also be an indication of how the market feels about an entire company. Customer satisfaction surveys can help marketing departments make product improvements that retain customers or winback those who have churned.

Solid data for startups

Startups have great ideas that they want to capitalize on. But how do they know if there is a substantial market for their product or service?

Bridgecare wanted to find out if there was a market for their childcare financing idea. Was it just gut instinct or was there an untapped market for parents of children who were going into debt to pay for childcare?

This company conducted a survey that tapped into parents across the US to validate the business concept. Within 24 hours, the company concept was validated by a large audience, leading to a new business idea that investors supported.

Finding a market for product line expansion

You’re a small company with a successful product - mattresses. But how do customers feel about additional products, like pillows, that seem like a natural fit to the existing product line?  Is it just an assumption or is there market potential?

You’ll need the right target market to see if your idea will work . Using surveys helped this company refine their original product idea, creating a better pillow based on feedback from survey participants. The company owner found that they cut their product development time in half by using online surveys, saving time, money, and frustration.

Using surveys for marketing research

Surveys can be the cornerstone of effective marketing research as they offer a quick, cost-effective way to collect a large variety of data. Whether you use short questions, open or closed-ended questions, surveys often are the most efficient way to gather credible insights from your target population.

Survey reports typically include analytics and charts that are easily interpreted and incorporated into your report. Depending on the focus of your survey, a ready-made test bank can be used to reach your ideal customer audience within hours. Online surveys are a widely used, credible way to get feedback about important topics that help you perform concept testing, product or packaging testing.

Clearly, if you want to avoid a “Kodak moment,” you should include market research as an ongoing tool to guide more informed, data-driven decision-making. By following an established process, you can be assured that the actions your company is taking are in lockstep with the needs and desires of your customers. 

SurveyMonkey offers reliable, detailed survey test question banks for every market research need. From product and packaging testing to logo design, we give you immediate access to the survey respondents that match your target audience demographics. Get their insights immediately to save time, money, and lower the risk of an expensive mistake.

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Methodology

• Data Collection | Definition, Methods & Examples

Data Collection | Definition, Methods & Examples

Published on June 5, 2020 by Pritha Bhandari . Revised on June 21, 2023.

Data collection is a systematic process of gathering observations or measurements. Whether you are performing research for business, governmental or academic purposes, data collection allows you to gain first-hand knowledge and original insights into your research problem .

While methods and aims may differ between fields, the overall process of data collection remains largely the same. Before you begin collecting data, you need to consider:

• The  aim of the research
• The type of data that you will collect
• The methods and procedures you will use to collect, store, and process the data

To collect high-quality data that is relevant to your purposes, follow these four steps.

Table of contents

Step 1: define the aim of your research, step 2: choose your data collection method, step 3: plan your data collection procedures, step 4: collect the data, other interesting articles, frequently asked questions about data collection.

Before you start the process of data collection, you need to identify exactly what you want to achieve. You can start by writing a problem statement : what is the practical or scientific issue that you want to address and why does it matter?

Next, formulate one or more research questions that precisely define what you want to find out. Depending on your research questions, you might need to collect quantitative or qualitative data :

• Quantitative data is expressed in numbers and graphs and is analyzed through statistical methods .
• Qualitative data is expressed in words and analyzed through interpretations and categorizations.

If your aim is to test a hypothesis , measure something precisely, or gain large-scale statistical insights, collect quantitative data. If your aim is to explore ideas, understand experiences, or gain detailed insights into a specific context, collect qualitative data. If you have several aims, you can use a mixed methods approach that collects both types of data.

• Your first aim is to assess whether there are significant differences in perceptions of managers across different departments and office locations.
• Your second aim is to gather meaningful feedback from employees to explore new ideas for how managers can improve.

Prevent plagiarism. Run a free check.

Based on the data you want to collect, decide which method is best suited for your research.

• Experimental research is primarily a quantitative method.
• Interviews , focus groups , and ethnographies are qualitative methods.
• Surveys , observations, archival research and secondary data collection can be quantitative or qualitative methods.

Carefully consider what method you will use to gather data that helps you directly answer your research questions.

When you know which method(s) you are using, you need to plan exactly how you will implement them. What procedures will you follow to make accurate observations or measurements of the variables you are interested in?

For instance, if you’re conducting surveys or interviews, decide what form the questions will take; if you’re conducting an experiment, make decisions about your experimental design (e.g., determine inclusion and exclusion criteria ).

Operationalization

Sometimes your variables can be measured directly: for example, you can collect data on the average age of employees simply by asking for dates of birth. However, often you’ll be interested in collecting data on more abstract concepts or variables that can’t be directly observed.

Operationalization means turning abstract conceptual ideas into measurable observations. When planning how you will collect data, you need to translate the conceptual definition of what you want to study into the operational definition of what you will actually measure.

• You ask managers to rate their own leadership skills on 5-point scales assessing the ability to delegate, decisiveness and dependability.
• You ask their direct employees to provide anonymous feedback on the managers regarding the same topics.

You may need to develop a sampling plan to obtain data systematically. This involves defining a population , the group you want to draw conclusions about, and a sample, the group you will actually collect data from.

Your sampling method will determine how you recruit participants or obtain measurements for your study. To decide on a sampling method you will need to consider factors like the required sample size, accessibility of the sample, and timeframe of the data collection.

Standardizing procedures

If multiple researchers are involved, write a detailed manual to standardize data collection procedures in your study.

This means laying out specific step-by-step instructions so that everyone in your research team collects data in a consistent way – for example, by conducting experiments under the same conditions and using objective criteria to record and categorize observations. This helps you avoid common research biases like omitted variable bias or information bias .

This helps ensure the reliability of your data, and you can also use it to replicate the study in the future.

Creating a data management plan

Before beginning data collection, you should also decide how you will organize and store your data.

• If you are collecting data from people, you will likely need to anonymize and safeguard the data to prevent leaks of sensitive information (e.g. names or identity numbers).
• If you are collecting data via interviews or pencil-and-paper formats, you will need to perform transcriptions or data entry in systematic ways to minimize distortion.
• You can prevent loss of data by having an organization system that is routinely backed up.

Finally, you can implement your chosen methods to measure or observe the variables you are interested in.

The closed-ended questions ask participants to rate their manager’s leadership skills on scales from 1–5. The data produced is numerical and can be statistically analyzed for averages and patterns.

To ensure that high quality data is recorded in a systematic way, here are some best practices:

• Record all relevant information as and when you obtain data. For example, note down whether or how lab equipment is recalibrated during an experimental study.
• Double-check manual data entry for errors.
• If you collect quantitative data, you can assess the reliability and validity to get an indication of your data quality.

If you want to know more about statistics , methodology , or research bias , make sure to check out some of our other articles with explanations and examples.

• Student’s  t -distribution
• Normal distribution
• Null and Alternative Hypotheses
• Chi square tests
• Confidence interval
• Cluster sampling
• Stratified sampling
• Data cleansing
• Reproducibility vs Replicability
• Peer review
• Likert scale

Research bias

• Implicit bias
• Framing effect
• Cognitive bias
• Placebo effect
• Hawthorne effect
• Hindsight bias
• Affect heuristic

Data collection is the systematic process by which observations or measurements are gathered in research. It is used in many different contexts by academics, governments, businesses, and other organizations.

When conducting research, collecting original data has significant advantages:

• You can tailor data collection to your specific research aims (e.g. understanding the needs of your consumers or user testing your website)
• You can control and standardize the process for high reliability and validity (e.g. choosing appropriate measurements and sampling methods )

However, there are also some drawbacks: data collection can be time-consuming, labor-intensive and expensive. In some cases, it’s more efficient to use secondary data that has already been collected by someone else, but the data might be less reliable.

Quantitative research deals with numbers and statistics, while qualitative research deals with words and meanings.

Quantitative methods allow you to systematically measure variables and test hypotheses . Qualitative methods allow you to explore concepts and experiences in more detail.

Reliability and validity are both about how well a method measures something:

• Reliability refers to the  consistency of a measure (whether the results can be reproduced under the same conditions).
• Validity   refers to the  accuracy of a measure (whether the results really do represent what they are supposed to measure).

If you are doing experimental research, you also have to consider the internal and external validity of your experiment.

Operationalization means turning abstract conceptual ideas into measurable observations.

For example, the concept of social anxiety isn’t directly observable, but it can be operationally defined in terms of self-rating scores, behavioral avoidance of crowded places, or physical anxiety symptoms in social situations.

Before collecting data , it’s important to consider how you will operationalize the variables that you want to measure.

In mixed methods research , you use both qualitative and quantitative data collection and analysis methods to answer your research question .

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Sales CRM Terms

What is Market Research? (Explained With Examples)

Oct 11, 2023

Market research is an essential component of any business strategy. It helps companies understand their target market, identify consumer preferences, and make informed decisions about product development, marketing campaigns, and overall business growth. In this article, we will explore the concept of market research in detail, providing clear definitions, discussing advantages and disadvantages, and providing real-world examples to illustrate its importance

1°) What is Market Research?

Market research is the process of gathering and analyzing relevant data about a target market to gain insights into consumer behavior, preferences, and needs. It involves collecting both qualitative and quantitative data to understand market trends, competitor analysis, and customer satisfaction levels.

Market research plays a crucial role in helping businesses make informed decisions and develop effective strategies. By understanding the market dynamics and customer demands, companies can tailor their offerings to meet the specific needs of their target audience. This not only enhances customer satisfaction but also increases the chances of business success.

1.1 - Definition of Market Research

Market research can be defined as the systematic gathering, interpretation, and analysis of data about a specific target market, industry, or product/service. It helps businesses understand market dynamics, customer demands, and competitor strategies, ultimately enabling them to make informed decisions.

Market research involves various methods and techniques to collect data, such as surveys, interviews, focus groups, and observation. These methods help researchers gather both qualitative and quantitative data, providing a comprehensive understanding of the target market.

1.2 - Advantages of Market Research

There are several advantages of conducting market research:

Market Insights: Market research provides valuable insights into customer preferences, behaviors, and pain points, allowing businesses to tailor their offerings to meet customer needs effectively. By understanding what drives consumer decision-making, companies can develop marketing strategies that resonate with their target audience.

Competitor Analysis: By conducting market research, companies can gain a comprehensive understanding of their competitors, their strengths, weaknesses, and unique selling propositions. This knowledge helps businesses refine their own strategies and stand out in the market. It enables companies to identify opportunities for differentiation and develop competitive advantages.

Product Development: Market research helps businesses identify potential gaps in the market, enabling them to develop innovative products that satisfy unmet consumer needs. By understanding customer preferences and pain points, companies can create products that address specific challenges or provide unique solutions.

Evidence-Based Decision Making: By collecting and analyzing data, market research eliminates guesswork and supports data-driven decision making, reducing the risk of making costly mistakes. It provides businesses with the necessary information to evaluate market opportunities, assess risks, and make informed choices.

1.3 - Disadvantages of Market Research

While market research offers numerous benefits, it also has certain limitations:

Time-consuming: Conducting comprehensive market research can be a time-consuming process, requiring careful planning, data collection, and analysis. It involves identifying research objectives, designing research methodologies, collecting data, and analyzing the findings. This process can take weeks or even months, depending on the scope of the research.

Costly: Market research can be expensive, especially when involving large sample sizes or advanced research techniques. The costs include expenses related to data collection, analysis, and hiring research professionals. Small businesses with limited budgets may find it challenging to invest in extensive market research.

Accuracy Limitations: Despite efforts to ensure reliability, market research results are still subject to bias, sample error, and respondent inaccuracies. Researchers must carefully design their studies to minimize these limitations, but it is impossible to completely eliminate them. The accuracy of market research findings depends on the quality of data collection, sample representativeness, and the honesty of respondents.

2°) Examples of Market Research

Real-world examples can help illustrate the practical application of market research:

2.1 - Example in a Startup Context

Imagine a startup aiming to disrupt the meal delivery industry. Before launching their service, they conduct market research to identify the preferences and demands of their target audience. Through surveys, focus groups, and data analysis, they uncover that convenience, healthy options, and affordability are essential factors for their target market. Armed with this information, they develop a meal delivery service that meets these needs and differentiates themselves from established competitors.

For instance, during their market research, the startup discovers that their target audience values convenience above all else. They find that busy professionals and families are looking for a meal delivery service that can provide them with quick and easy options for their busy lifestyles. Armed with this insight, the startup decides to focus on developing a user-friendly mobile app that allows customers to easily order meals with just a few taps on their smartphones. This innovative approach to convenience sets them apart from their competitors and attracts a loyal customer base.

In addition to convenience, the startup also uncovers a strong demand for healthy meal options. They find that their target audience is health-conscious and actively seeks out nutritious meals that align with their dietary preferences. To cater to this demand, the startup partners with local farms and suppliers to source fresh and organic ingredients for their meals. They also collaborate with nutritionists and chefs to create a menu that offers a variety of healthy and delicious options. This commitment to providing healthy meals not only meets the needs of their target audience but also positions the startup as a trusted and reliable choice in the market.

Lastly, the startup identifies affordability as a key factor for their target market. They discover that price sensitivity is high among their audience, and they are looking for cost-effective meal delivery options that don't compromise on quality. To address this, the startup adopts a pricing strategy that offers competitive prices while still maintaining the quality and value of their meals. They also introduce subscription plans and loyalty programs to incentivize repeat customers and provide additional savings. This focus on affordability allows the startup to attract price-conscious customers and gain a competitive edge in the market.

2.2 - Example in a Consulting Context

A consulting firm specializing in marketing strategy decides to expand its service offerings. To ensure they align with market demand, they conduct market research to identify the most sought-after services and emerging industry trends. By analyzing market data, interviewing industry experts, and conducting competitor analysis, they identify a gap in the market for data-driven digital marketing strategies. This research helps the consulting firm refine their service offerings and attract new clients.

During their market research, the consulting firm uncovers a growing demand for data-driven digital marketing strategies. They find that businesses are increasingly looking for ways to leverage data and analytics to optimize their marketing efforts and drive better results. Armed with this insight, the consulting firm decides to develop a specialized service that focuses on helping businesses harness the power of data in their marketing strategies.

To deliver this service, the consulting firm invests in hiring data analysts and marketing experts with a strong background in data-driven marketing. They also develop proprietary tools and software that can collect, analyze, and interpret marketing data to provide actionable insights and recommendations to their clients. By offering this specialized service, the consulting firm is able to position themselves as industry leaders in data-driven marketing and attract clients who are seeking innovative and effective marketing solutions.

In addition to data-driven marketing, the consulting firm also identifies an emerging trend in influencer marketing. They find that businesses are increasingly turning to influencers and social media platforms to reach their target audience and build brand awareness. Recognizing the potential of this trend, the consulting firm expands their service offerings to include influencer marketing strategies. They develop partnerships with popular influencers in various industries and create comprehensive influencer marketing campaigns for their clients. This expansion allows the consulting firm to tap into a growing market and provide their clients with a holistic approach to digital marketing.

2.3 - Example in a Digital Marketing Agency Context

A digital marketing agency wants to optimize its client's pay-per-click (PPC) advertising campaigns. They conduct market research to understand consumer behavior and identify effective strategies. By analyzing search data, conducting A/B testing, and reviewing industry case studies, they discover that creating personalized ad copy and optimizing landing pages increases click-through rates and conversions. Armed with this knowledge, the agency produces better results for their clients and improves their overall reputation.

During their market research, the digital marketing agency delves into consumer behavior to gain insights into what motivates users to click on PPC ads and convert into customers. They find that personalization is a key factor in capturing the attention of users and driving conversions. Armed with this insight, the agency develops a strategy that focuses on creating personalized ad copy that resonates with the target audience. They conduct extensive research on the target audience's demographics, interests, and preferences to craft ad copy that speaks directly to their needs and desires. This personalized approach increases the relevance and effectiveness of the PPC ads, resulting in higher click-through rates and conversions for their clients.

In addition to personalized ad copy, the digital marketing agency also discovers the importance of optimizing landing pages in maximizing the success of PPC campaigns. They find that a well-designed and user-friendly landing page can significantly impact the conversion rate of PPC ads. Armed with this insight, the agency conducts A/B testing to identify the most effective landing page design and layout. They analyze user behavior, conduct heat map analysis, and gather feedback from users to refine and optimize the landing pages. This meticulous approach to landing page optimization leads to improved conversion rates and a higher return on investment for their clients' PPC campaigns.

2.4 - Example with Analogies

Imagine a chef who wants to create a new dessert recipe. Before experimenting with ingredients, they conduct market research to gather inspiration and understand current dessert trends. By analyzing popular recipes, studying customer reviews, and experimenting with flavors, the chef can develop a unique and delicious dessert that resonates with their target audience.

During their market research, the chef explores various dessert trends and flavors that are currently popular among consumers. They analyze social media platforms, food blogs, and culinary magazines to identify the latest dessert trends and gather inspiration for their own creation. Armed with this knowledge, the chef experiments with different flavor combinations, textures, and presentation styles to develop a dessert that not only satisfies the taste buds but also captures the attention of their target audience.

The chef also pays close attention to customer reviews and feedback on existing dessert recipes. They analyze the strengths and weaknesses of popular recipes and use this information to refine their own creation. By incorporating customer preferences and addressing common complaints or suggestions, the chef ensures that their dessert stands out from the competition and meets the expectations of their target audience.

Market research plays a pivotal role in understanding consumer needs, identifying market opportunities, and driving business success. Whether you are a startup, consulting firm, or digital marketing agency, conducting market research can provide valuable insights, inform decision-making, and improve overall business performance.

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Market research and competitive analysis

Use market research to find customers.

Market research blends consumer behavior and economic trends to confirm and improve your business idea.

It’s crucial to understand your consumer base from the outset. Market research lets you reduce risks even while your business is still just a gleam in your eye.

Gather demographic information to better understand opportunities and limitations for gaining customers. This could include population data on age, wealth, family, interests, or anything else that’s relevant for your business.

Then answer the following questions to get a good sense of your market:

• Demand:  Is there a desire for your product or service?
• Market size :  How many people would be interested in your offering?
• Economic indicators:  What is the income range and employment rate?
• Location:  Where do your customers live and where can your business reach?
• Market saturation:  How many similar options are already available to consumers?
• Pricing:  What do potential customers pay for these alternatives?

You’ll also want to keep up with the latest small business trends. It’s important to gain a sense of the specific market share that will impact your profits.

You can do market research using existing sources, or you can do the research yourself and go direct to consumers.

Existing sources can save you a lot of time and energy, but the information might not be as specific to your audience as you’d like. Use it to answer questions that are both general and quantifiable, like industry trends, demographics, and household incomes. Check online or start with our  list of market research resources .

Asking consumers yourself can give you a nuanced understanding of your specific target audience. But, direct research can be time consuming and expensive. Use it to answer questions about your specific business or customers, like reactions to your logo, improvements you could make to buying experience, and where customers might go instead of your business.

Here are a few methods you can use to do direct research:

• Questionnaires
• Focus groups
• In-depth interviews

For guidance on deciding which methods are worthwhile for your small business, the U.S. Small Business Administration (SBA) provides counseling services through our  resource partner network .

Use competitive analysis to find a market advantage

Competitive analysis helps you learn from businesses competing for your potential customers. This is key to defining a competitive edge that creates sustainable revenue.

Your competitive analysis should identify your competition by product line or service and market segment. Assess the following characteristics of the competitive landscape:

• Market share
• Strengths and weaknesses
• Your window of opportunity to enter the market
• The importance of your target market to your competitors
• Any barriers that may hinder you as you enter the market
• Indirect or secondary competitors who may impact your success

Several industries might be competing to serve the same market you’re targeting. The Department of Justice provides a diagram of Porter’s Five Forces  as one way you can differentiate your competitive analysis by industry. Important factors to consider include level of competition, threat of new competitors or services, and the effect of suppliers and customers on price.

Free small business data and trends

There are many reliable sources that provide customer and market information at no cost. Free statistics are readily available to help prospective small business owners.

Consider the following federal business statistics in your market research and competitive analysis:

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What Does a Data Analyst Do? Your 2024 Career Guide

A data analyst gathers, cleans, and studies data sets to help solve problems. Here's how you can start on a path to become one.

A data analyst collects, cleans, and interprets data sets in order to answer a question or solve a problem. They work in many industries, including business, finance, criminal justice, science, medicine, and government.

What kind of customers should a business target in its next ad campaign? What age group is most vulnerable to a particular disease? What patterns in behavior are connected to financial fraud?

These are the types of questions you might be pressed to answer as a data analyst. Read on to find out more about what a data analyst is, what skills you'll need, and how you can start on a path to becoming one.

Start advancing your data analysis skills today

Explore a career path as a data analyst with the Google Data Analytics Professional Certificate . Learn key analytical skills like data cleaning, analysis, and visualization, as well as tools like spreadsheets, SQL, R programming, and Tableau.

What is data analysis?

Data analysis is the process of gleaning insights from data to inform better business decisions. The process of analyzing data typically moves through five iterative phases:

Identify the data you want to analyze

Collect the data

Clean the data in preparation for analysis

Analyze the data

Interpret the results of the analysis

Data analysis can take different forms, depending on the question you’re trying to answer. You can read more about the types of data analysis here. Briefly, descriptive analysis tells us what happened, diagnostic analysis tells us why it happened, predictive analytics forms projections about the future, and prescriptive analysis creates actionable advice on what actions to take.

Watch the video below for an introduction to data analytics and preview the Google course:

Data analyst tasks and responsibilities

A data analyst is a person whose job is to gather and interpret data in order to solve a specific problem. The role includes plenty of time spent with data but entails communicating findings too. 

Here’s what many data analysts do on a day-to-day basis:

Gather data: Analysts often collect data themselves. This could include conducting surveys, tracking visitor characteristics on a company website, or buying datasets from data collection specialists.

Clean data: Raw data might contain duplicates, errors, or outliers. Cleaning the data means maintaining the quality of data in a spreadsheet or through a programming language so that your interpretations won’t be wrong or skewed. 

Model data: This entails creating and designing the structures of a database. You might choose what types of data to store and collect, establish how data categories are related to each other, and work through how the data actually appears.

Interpret data: Interpreting data will involve finding patterns or trends in data that could answer the question at hand.

Present: Communicating the results of your findings will be a key part of your job. You do this by putting together visualizations like charts and graphs, writing reports, and presenting information to interested parties.

What tools do data analysts use?

During the process of data analysis, analysts often use a wide variety of tools to make their work more accurate and efficient. Some of the most common tools in the data analytics industry include:

Microsoft Excel

Google Sheets

R or Python

Microsoft Power BI

Jupyter Notebooks

Data analyst salary and job outlook

The average base salary for a data analyst in the US is $69,517 in December 2021, according to Glassdoor. This can vary depending on your seniority, where in the US you’re located, and other factors.

Data analysts are in high demand. The World Economic Forum listed it as number two in growing jobs in the US [ 1 ]. The Bureau of Labor Statistics also reports related occupations as having extremely high growth rates.

From 2020 to 2030, operations research analyst positions are expected to grow by 25 percent, market research analysts by 22 percent, and mathematicians and statisticians by 33 percent. That’s a lot higher than the total employment growth rate of 7.7 percent.

Data analyst vs. data scientist: What’s the difference?

Data analysts and data scientists both work with data, but what they do with it differs. Data analysts typically work with existing data to solve defined business problems. Data scientists build new algorithms and models to make predictions about the future. Learn more about the difference between data scientists and data analysts .

Types of data analysts

As advancing technology has rapidly expanded the types and amount of information we can collect, knowing how to gather, sort, and analyze data has become a crucial part of almost any industry. You’ll find data analysts in the criminal justice, fashion, food, technology, business, environment, and public sectors—among many others.

People who perform data analysis might have other titles, such as:

Medical and health care analyst

Market research analyst

Business analyst

Business intelligence analyst

Operations research analyst

Intelligence analyst

Interested in business intelligence? Gain skills in data modeling and data visualization:

How to become a data analyst

There’s more than one path toward a career as a data analyst. Whether you’re just graduating from school or looking to switch careers, the first step is often assessing what transferable skills you have and building the new skills you’ll need in this new role.

Data analyst technical skills

Database tools:  Microsoft Excel and SQL should be mainstays in any data analyst’s toolbox. While Excel is ubiquitous across industries, SQL can handle larger sets of data and is widely regarded as a necessity for data analysis. 

Programming languages: Learning a statistical programming language like Python or R will let you handle large sets of data and perform complex equations. Though Python and R are among the most common, it’s a good idea to look at several job descriptions of a position you’re interested in to determine which language will be most useful to your industry. 

Data visualization: Presenting your findings in a clear and compelling way is crucial to being a successful data analyst. Knowing how best to present information through charts and graphs will make sure colleagues, employers, and stakeholders will understand your work. Tableau, Jupyter Notebook, and Excel are among the many tools used to create visuals.

Statistics and math: Knowing the concepts behind what data tools are actually doing will help you tremendously in your work. Having a solid grasp of statistics and math will help you determine which tools are best to use to solve a particular problem, help you catch errors in your data, and have a better understanding of the results.

If that seems like a lot, don’t worry—there are plenty of courses that will walk you through the basics of the technical skills you need as a data analyst. This IBM Data Analyst Professional Certificate course on Coursera can be a good place to start.

Data analyst workplace skills

Problem solving: A data analyst needs to have a good understanding of the question being asked and the problem that needs to be solved. They also should be able to find patterns or trends that might reveal a story. Having critical thinking skills will allow you to focus on the right types of data, recognize the most revealing methods of analysis, and catch gaps in your work.

Communication: Being able to get your ideas across to other people will be crucial to your work as a data analyst. Strong written and speaking skills to communicate with colleagues and other stakeholders are good assets to have as a data analyst.

Industry knowledge: Knowing about the industry you work in—health care, business, finance, or otherwise—will give you an advantage in your work and in job applications. If you’re trying to break into a specific industry, take some time to pay attention to the news in your industry or read a book on the subject. This can familiarize you with the industry’s main issues and trends.

Learn more: 7 In-Demand Data Analyst Skills to Get Hired

Resources to start your data analyst career

We've curated a collection of resources to help you decide whether becoming a data analyst is right for you—including figuring out what skills you'll need to learn and courses you can take to pursue this career.

Paths to becoming a data analyst

Acquiring these skills is the first step to becoming a data analyst. Here are a few routes you can take to get them that are flexible enough to fit in around your life.

Professional certificate: Entry-level professional certificate programs usually require no previous experience in the field. They can teach you basic skills like SQL or statistics while giving you the chance to create projects for your portfolio and provide real-time feedback on your work. Several professional certificate programs on Coursera do just that.

Bachelor's degree: The Bureau of Labor Statistics recommends a bachelor’s degree for jobs that involve data analysis. If you’re considering getting a degree to become a data analyst, focusing your coursework in statistics, math, or computer science can give you a head start with potential employers. Many online bachelor’s degrees have flexible scheduling so you can fit a degree in around your priorities.

Self-study: If you want a path that doesn’t include formal training, it’s possible to learn the skills necessary for data analysis on your own. Get started with this data analytics reading list for beginners . Once you’re ready to start building a portfolio , here are some ideas for data analytics projects .

For more on how to become a data analyst (with or without a degree), check out our step-by-step guide .

Data analyst career advancement

Being a data analyst can also open doors to other careers. Many who start as data analysts go on to work as data scientists . Like analysts, data scientists use statistics, math, and computer science to analyze data. A scientist, however, might use advanced techniques to build models and other tools to provide insights into future trends.

Start advancing your data analyst skills today

If you’re ready to start exploring a career as a data analyst, build job-ready skills in less than six months with the  Google Data Analytics Professional Certificate  on Coursera. Learn how to clean, organize, analyze, visualize, and present data from data professionals at Google.

If you're ready to build on your existing data science skills to qualify for in-demand job titles like junior data scientist and data science analyst, consider the  Google Advanced Data Analytics Professional Certificate .

Frequently asked questions (FAQ)

Is a data analyst a good job ‎.

Data analysts tend to be in demand and well paid. If you enjoy solving problems, working with numbers, and thinking analytically, a career as a data analyst could be a good fit for you. ‎

What should I study to become a data analyst? ‎

Most entry-level data analyst positions require at least a bachelor’s degree. Fields of study might include data analysis, mathematics, finance, economics, or computer science. Earning a master’s degree in data analysis, data science, or business analytics might open new, higher-paying job opportunities.

Read more: What Degree Do I Need to Become a Data Analyst? ‎

Does data analysis require coding? ‎

You might not be required to code as part of your day-to-day requirements as a data analyst. However, knowing how to write some basic Python or R , as well as how to write queries in SQL (Structured Query Language) can help you clean, analyze, and visualize data. ‎

How do I get a job as a data analyst with no experience? ‎

Sometimes even junior data analyst job listings ask for previous experience. Luckily, it’s possible to gain experience working with data even if you’ve never had a job as an analyst. Degree programs, certification courses, and online classes often include hands-on data projects. If you’re learning on your own, you can find free data sets on the internet that you can work with to start getting experience (and building your portfolio). ‎

How long does it take to become a data analyst? ‎

The amount of time it takes to develop the skills you need to get a job as a data analyst will depend on what you already know, your strategy for learning new skills, and the type of role you’re applying for. But it might not take as long as you think. It’s possible to learn the skills you need for an entry-level role as a data analyst in approximately 64 hours of learning, according to Coursera’s 2021 Global Skills Report . It’s possible to earn your Google Data Analytics or IBM Data Analyst Professional Certificate in less than six months. ‎

Article sources

World Economic Forum. " The Future of Jobs Report 2020 , http://www3.weforum.org/docs/WEF_Future_of_Jobs_2020.pdf." Accessed April 1, 2024.

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This content has been made available for informational purposes only. Learners are advised to conduct additional research to ensure that courses and other credentials pursued meet their personal, professional, and financial goals.

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4 Strategies For Memorable Marketing In A Privacy-First World

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By Satta Sarmah Hightower

Delivering memorable customer experiences has become the holy grail for brand marketers—and data is indispensable in this pursuit. But when information is siloed and disconnected, delivering impactful experiences becomes ever more challenging.

The good news is that business leaders are well aware they need to use data more effectively. According to a recent survey of chief marketing officers by Forbes Research, their top priorities over the next two years are:

• Accelerating marketing automation (58%)
• Using data to drive campaigns (51%)
• Increasing customer data privacy and protection (41%)

Customer data is the fuel that powers memorable experiences; but as the research indicates, brands have to maximize this asset while also prioritizing data privacy. It’s a difficult balancing act, but one they can successfully navigate with the right strategy and an integrated, privacy-focused customer data platform, or CDP.

To help your company find equilibrium, here are four strategies for crafting unforgettable customer experiences while safeguarding personal information.

1. Build On A Foundation Of Trust

Brands can no longer rely on third-party cookies to track and target consumers. Instead, they need to prioritize first-party data.

"The use of data can actually enhance their ability to deliver a brand promise," says Tom Hannigan Jr., HCLSoftware Marketing Automation Practice Leader for enterprises.

With tightening privacy laws, capturing and deploying actionable customer data across various touch points have become a significant challenge. The General Data Privacy Regulation and the California Consumer Privacy Act, among other regulations, require brands to obtain user consent before collecting their data. These regulations also limit how much data companies can collect. Additionally, consumers are more privacy-conscious than ever and won’t hesitate to use ad blockers or opt out of data tracking.

Hannigan emphasizes that a robust Customer Data Platform can help brands overcome these challenges. For a CDP to be effective, it has to be built on a foundation of trust and have a long history of serving data-intensive, highly regulated industries like banking and telecommunications. HCLSoftware’s platform reflects this ethos. Hannigan also asserts that the DNA of where software comes from is super important.

“Our products were born serving a customer base that was largely people who were using data long before anybody else,” he says. “Inherent in that was a respect for privacy because they started with first-party data.”

Along with these privacy-by-design principles, an optimal CDP should offer extensible capabilities that allow brands to easily add new features to stay on top of evolving privacy regulations. With this technology, brands can develop more data-driven, privacy-focused customer experiences.

2. Hyper-Personalize Customer Targeting

For experiences to be memorable, they also should be highly personalized. From Hannigan’s perspective, this means they must offer utility to customers, provide a reason for them to engage with the brand, and surprise and delight them.

To deliver this value, companies need to gather granular data and transform it into actionable insights that facilitate a 360-degree view of each customer. Artificial intelligence can help them gather customer data from an array of sources and transform unstructured data, such as customer reviews and social media comments, into valuable business intelligence.

“The first order of business is you need to automate. Otherwise, you can never personalize,” Hannigan explains.

AI is also useful for spotting relationships between disparate data sets, which can help brands uncover trends and patterns that lead to more memorable customer experiences.

Some automakers have mastered this by creating apps that allow drivers to start their car remotely and locate their vehicle anywhere (utility), receive reminders about their next oil change with an option to schedule it within the app (engagement), and earn points toward rewards (surprise and delight).

Creating memorable experiences like this is possible for any brand. They just need to get their data house in order to do it.

3. Break Down Silos For Consistent Customer Experiences

While silos persist in many companies, Hannigan points out that data can act as a unifying force—because without integrated data, brands can’t deliver a seamless experience across channels. He reflected on this challenge by explaining how a marketing leader at a bank might see the situation.

“I want to make sure the same offers that I'm presenting to a customer in email are also present in the branch. That requires integration across delivery channels,” he says. “So, we tend to use data and the delivery-channel conversation as a way to bridge those silos because there's no other way to do it.”

This is another area where a CDP is valuable. The platform offers AI-driven capabilities that not only automate but also integrate data to help brands create a more unified ecosystem. By taking a holistic view, brands are better positioned to activate their data and deliver high-impact, personalized customer interactions.

4. Maximize Return On Investment

Companies often have to make tough decisions about where to invest. Advanced data management, supported by a CDP, can give them access to relevant insights that inform resource allocation decisions.

According to Hannigan, brands can use the platform to develop what HCLSoftware calls a “marketing portfolio view.” Similar to how an everyday investor reviews their stock portfolio and tries to maximize returns, chief marketing officers can use a CDP to better understand campaign performance and which channels deliver the highest return on investment. HCLSoftware’s CDP gives leaders a rolled-up, end-to-end view of their organization’s marketing activity to support better decision-making.

“We present marketers with a portfolio view that says, ‘Here are the places that if you invest more, you'll be able to grow your business.’ Because we're seeing that in the campaigns they're running,” states Hannigan. “We map all that out in a way that decisions aren't just made on a campaign-by-campaign basis; they're made on a portfolio basis on how to drive results.”

Make A Lasting Impression

For companies to drive better outcomes, they need to better understand their customers and encourage them to feel connected to their brands.

A CDP can bring customer data together and empower brand teams to create memorable experiences—whether that’s personalized sale offers or vehicle service reminders.

By maximizing their data, companies can fulfill their brand promise and create experiences that are useful, engaging, surprising, and delightful. When brands can deliver these experiences, Hannigan says, “That, to me, is as good as it gets.”

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These Could Be the Next Monster AI Stock Splits After Nvidia

• Two of these companies don't have stock splits scheduled yet, but one does.
• All three have share prices of above $1,000.
• All three are also leaders in different technologies that are critical to running AI applications.
• Motley Fool Issues Rare “All In” Buy Alert

NASDAQ: ASML

Nvidia's stock split is history, but investors should keep their eyes on these three AI stocks.

If you've been wanting to buy Nvidia at a cheaper price, you now have the opportunity. The tech giant conducted a 10-for-1 stock split after the market close on June 7, 2024. Nvidia's share price is the lowest it's been in years.

Which AI leaders could have monster stock splits on the way after Nvidia? Here are two top candidates and one definite pick.

1. Broadcom

In one sense, Broadcom ( AVGO -1.44% ) has never split its stock. Avago acquired the "old" Broadcom in 2016 and retained its name. The "old" Broadcom had conducted three stock splits before being acquired. However, Avago had never split its shares -- and neither has the "new" Broadcom.

Broadcom's share price currently hovers around $1,440. That's well above Nvidia's share price when it split its stock. Although the company's management team hasn't hinted at a stock split so far, the timing could be right for one -- perhaps a 10-for-1 split along the lines of what Nvidia did.

Broadcom's networking products are enjoying strong demand in AI data centers. The company isn't resting on its laurels, though. It recently announced a new portfolio of ethernet adapters specifically designed for AI infrastructure. Broadcom believes its latest product launch "revolutionizes the AI networking landscape."

2. ASML Holding

ASML Holding ( ASML 0.85% ) has conducted five stock splits in its history. This number includes two reverse stock splits , one in September 2007 and another in November 2012.

There's a good case that another conventional stock split is due. ASML's share price tops $1,040 and has remained above $800 throughout most of 2024 so far. However, the company has given no indications that a stock split is in the works.

ASML stands as the only manufacturer of extreme ultraviolet (EUV) lithography machines used to make the most advanced chips. How important is this advantage? Goldman Sachs believes that chips made using EUV "will enable the next wave of AI."

3. Lam Research

Lam Research ( LRCX 1.86% ) has had two stock splits. However, the most recent one -- a 3-for-1 split -- came way back in March 2000.

Unlike Broadcom and ASML, Lam definitely has a stock split on the way. Last month, the company announced a 10-for-1 stock split scheduled for after the market close on Oct. 2, 2024. This split makes a lot of sense considering Lam's shares are trading above $1,000.

Lam is a leading provider of wafer fabrication equipment used in making semiconductors. The company's AI edge is in storage. AI apps require fast, high-density storage. Lam's technology enables manufacturing enterprise solid-state drives that are 50 times faster and up to five times more power efficient than hard disk drives, which currently store over 80% of enterprise data.

Are these potential stock-split candidates buys?

I wouldn't buy any of these stocks solely because of their scheduled (for Lam Research) and possible (for Broadcom and ASML) future stock splits. Stock splits have zero effect on companies' underlying businesses or growth prospects.

That said, I think all three of these stocks could deliver fantastic gains over the long term as AI continues to drive demand for high-powered chips and the equipment required to make these chips. Broadcom, ASML, and Lam Research should remain at the forefront of the AI chip market.

To be sure, all three of these stocks trade at premium valuations. It's possible that they could be more volatile than most stocks. However, Broadcom, ASML, and Lam should be good picks for aggressive growth investors.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Goldman Sachs Group, Lam Research, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy .

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• Release calendar
• Methodology

Labour market overview, UK: June 2024

Estimates of employment, unemployment, economic inactivity and other employment-related statistics for the UK.

This is the latest release. View previous releases

Contact: Email Labour Market team

Release date: 11 June 2024

Next release: 18 July 2024

Table of contents

• Other pages in this release
• Main points
• Latest indicators at a glance
• Labour market data
• Measuring the data
• Strengths and limitations
• Related links
• Cite this statistical bulletin

Print this Statistical bulletin

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1. Other pages in this release

Average weekly earnings in Great Britain

Earnings and employment from Pay As You Earn Real Time Information, UK

Employment in the UK

Labour market in the regions of the UK

Public sector employment, UK

Vacancies and jobs in the UK

2. Main points

Trends and considerations around comparisons..

This month's figures continue to show signs that the labour market may be cooling, with the number of vacancies still falling and unemployment rising, though earnings growth remains relatively strong.

Short-term movements varied across our different measures of employment. There were decreases in estimates of employment from the Labour Force Survey and in estimates of payrolled employees from HMRC's Real Time Information data in recent months. Today, we have also published our quarterly workforce jobs provisional estimate for March 2024, which suggests employment has increased since December 2023. These different series measure slightly different concepts and cover different time periods, with divergent trends possible for individual data points. In these instances we advise making longer term comparisons that offer more stability.

Dataset X12 sets out the annual growth rates for these measures in recent periods and suggests that the medium-term trend for employment growth is steadily weakening.

Latest data

Payrolled employees in the UK decreased by 36,000 (0.1%) between March and April 2024, but rose by 201,000 (0.7%) between April 2023 and April 2024.

The early estimate of payrolled employees for May 2024 decreased by 3,000 (0.0%) on the month but increased by 167,000 (0.6%) on the year, to 30.3 million. The May 2024 estimate should be treated as a provisional estimate and is likely to be revised when more data are received next month.

Increased volatility of Labour Force Survey (LFS) estimates, resulting from smaller achieved sample sizes, means that estimates of quarterly change should be treated with additional caution, and we recommend using them as part of our suite of labour market indicators, alongside Workforce Jobs, Claimant Count data, and Pay As You Earn (PAYE) Real Time Information (RTI) estimates.

The UK employment rate (for people aged 16 to 64 years) was estimated at 74.3% in February to April 2024, below estimates of a year ago, and decreased in the latest quarter.

In March 2024, the total Workforce Jobs (WFJ) in the UK estimate rose by 431,000 on the year to 37.2 million, with increases in both employee jobs and self-employment jobs.

The UK unemployment rate (for people aged 16 years and over) was estimated at 4.4% in February to April 2024, above estimates of a year ago, and increased in the latest quarter.

We also publish the  Claimant Count , a measure of the number of people who are receiving a benefit principally for the reason of being unemployed. The UK Claimant Count for May 2024 increased on the month and on the year, to 1.629 million.

The UK economic inactivity rate for people aged 16 to 64 years was estimated at 22.3% in February to April 2024, above estimates of a year ago, and increased in the latest quarter.

In March to May 2024, the estimated number of vacancies in the UK decreased by 12,000 on the quarter to 904,000. Vacancies decreased on the quarter for the 23rd consecutive period but are still above pre-coronavirus (COVID-19) pandemic levels.

Annual growth in employees' average regular earnings (excluding bonuses) in Great Britain was 6.0% in February to April 2024, and annual growth in total earnings (including bonuses) was 5.9%.

Annual growth in real terms (adjusted for inflation using the Consumer Prices Index including owner occupiers' housing costs (CPIH)) for regular pay was 2.3% in February to April 2024, and for total pay was 2.2%.

There were an estimated 17,000 working days lost because of labour disputes across the UK in April 2024.

This bulletin includes data from business and social surveys, as well as data from administrative sources. It includes a combination of accredited official statistics and official statistics in development and, therefore, we advise the consideration of this when using.

Read more in Section 6: Measuring the data

3. Latest indicators at a glance

4. labour market data.

Summary of labour market statistics Dataset A01 | Released 11 June 2024 Labour market statistics summary data table, including earnings, employment, unemployment, redundancies and vacancies, Great Britain and UK, published monthly.

Earnings and employment from Pay As You Earn Real Time Information, seasonally adjusted Dataset | Released 11 June 2024 Earnings and employment statistics from Pay As You Earn (PAYE) Real Time Information (RTI), seasonally adjusted. These are official statistics in development.

A guide to labour market data Methodology | Updated 21 April 2023 Summary of labour market datasets, providing estimates of employment, unemployment, average weekly earnings, and the number of vacancies. Tables are listed alphabetically and by topic.

View all related data on our related data page .

Alternatively, Nomis provides free access to the most detailed and up-to-date UK labour market statistics.

5. Glossary

Average weekly earnings.

Average weekly earnings measure money paid by employers to employees in Great Britain before tax and other deductions from pay. The estimates are not just a measure of pay rises, because they also reflect, for example, changes in the overall structure of the workforce.

More high-paid jobs in the economy would have an upward effect on the earnings growth rate.

Economic inactivity

People not in the labour force are not in employment but do not meet the internationally accepted definition of unemployment. This is because they have not been seeking work within the last four weeks or they are unable to start work in the next two weeks. The economic inactivity rate is the proportion of people aged between 16 and 64 years who are not in the labour force.

Employment measures the number of people in paid work or who had a job that they were temporarily away from (for example, because they were on holiday or off sick). This differs from the number of jobs because some people have more than one job. The employment rate is the proportion of people aged between 16 and 64 years who are in employment.

Unemployment

Unemployment measures people without a job who have been actively seeking work within the last four weeks and are available to start work within the next two weeks. The unemployment rate is not the proportion of the total population who are unemployed. It is the proportion of the economically active population (people in work and those seeking and available to work) who are unemployed.

Claimant Count

The Claimant Count is an official statistic in development that measures the number of people who are receiving a benefit principally for the reason of being unemployed. Currently, the Claimant Count consists of those receiving Jobseekers' Allowance and Universal Credit claimants in the "searching for work" conditionality group.

Vacancies are defined as positions for which employers are actively seeking recruits from outside their business or organisation. The estimates are based on the Vacancy Survey. This is a survey of businesses designed to provide estimates of the stock of vacancies across the economy, excluding agriculture, forestry, and fishing (a small sector for which the collection of estimates would not be practical).

Pay As You Earn Real Time Information

These data come from HM Revenue and Customs' (HMRC's) Pay As You Earn (PAYE) Real Time Information (RTI) system. They cover the whole population, rather than a sample of people or companies, and they will allow for more detailed estimates of the population. The PAYE RTI statistics are official statistics in development (previously called experimental statistics) because the methodologies used to produce the statistics are still in their development phase.

In June 2023, the Office for Statistics Regulation (OSR) published an assessment report of HM Revenue and

Customs (HMRC) and Office for National Statistics (ONS) statistics on earnings and employment from Pay as You Earn Real Time Information (PAYE RTI). HMRC and the ONS welcome OSR's assessment report and have developed an action plan focusing on the six requirements .

A more detailed glossary is available in our Guide to labour market statistics methodology .

6. Measuring the data

Official statistics.

On 7 June 2024, the Office for Statistics Regulation (OSR) introduced the new accredited official statistics badge, to denote official statistics that have been independently review by OSR and judged to meet the standards in the Code of Practice for Statistics .

This UK labour market bulletin includes a combination of accredited official statistics and official statistics in development .

The following labour market outputs are accredited official statistics:

average weekly earnings

labour disputes

Office for National Statistics (ONS) vacancy statistics

Workforce Jobs

The following labour market outputs are official statistics in development:

Pay As You Earn (PAYE) Real Time Information (RTI) estimates

Labour Force Survey estimates

ONS Claimant Count

Labour Force Survey

We have been facing the challenge of falling response rates for household surveys, as have other comparable countries. This issue became more acute in the Labour Force Survey (LFS) data collected for August 2023. The LFS estimates due to be published in October 2023 were suspended because of quality concerns. We developed a comprehensive plan to address these concerns and reintroduce LFS, as described in our Labour Force Survey: planned improvements and its reintroduction estimates methodology .

As stated on 5 February 2024 in our Impact of reweighting on Labour Force Survey key indicators: 2024 article , from 13 February we have reinstated reweighted LFS estimates into our monthly publication. These LFS estimates are official statistics in development .

Reweighting does not address the volatility we have seen in recent periods and which we expect to see to some extent in the future, so we would advise caution when interpreting short-term changes in headline rates and recommend using them as part of our suite of labour market indicators, alongside Workforce Jobs, Claimant Count data and Pay As You Earn (PAYE) Real Time Information (RTI) estimates.

Further information on response rates and other quality-related issues for the LFS can be found in our quarterly Labour Force Survey performance and quality monitoring reports .

Our Comparison of labour market data sources methodology compares data sources and discusses some of the main differences.

Coronavirus

For more information on how labour market data sources were affected by the coronavirus (COVID-19) pandemic, see our Coronavirus and the effects on UK labour market statistics article .

Making our published spreadsheets accessible

Following the Government Statistical Service (GSS) guidance on releasing statistics in spreadsheets , we will be amending our published tables over the coming months to improve usability, accessibility and machine readability of our published statistics. To help users change to the new formats, we will be publishing sample versions of a selection of our tables and, where practical, initially publish the tables in both the new and current formats. If you have any questions or comments, please email us at [email protected].

Labour market transformation

We have published a Labour market transformation article and a blog providing an update on the transformation of labour market statistics.

We welcome your feedback on this latest update and our plans. Please email us at labour.market. [email protected] to tell us what you think

7. Strengths and limitations

The estimates presented in this bulletin contain uncertainty. For more information, see our Uncertainty and how we measure it methodology .

Information on revisions is available in our Labour market statistics revisions policy .

Information on the strengths and limitations of this bulletin is available in our Labour market overview, UK: April 2021 bulletin .

Further information is available in our Guide to labour market statistics methodology .

8. Related links

Economic activity and social change in the UK, real-time indicators: 6 June 2024 Bulletin | Released 6 June 2024 Early data on the UK economy and society. These faster indicators are created using rapid response surveys, novel data sources and innovative methods. These are official statistics in development.

Business insights and impact on the UK economy: 6 June 2024 Bulletin | Released 6 June 2024 The impact of challenges facing the economy and other events on UK businesses. Based on responses from the voluntary fortnightly business survey (BICS) to deliver real-time information to help assess issues affecting UK businesses and economy, including financial performance, workforce, trade and business resilience.

Labour market transformation - update on progress and plans: April 2024 Article | Released 29 April 2024 Labour market transformation overview, building on previous engagement on the transformed Labour Force Survey.

Quarterly economic commentary: October to December 2023 Article | Released 28 March 2024 Economic commentary for the latest quarterly national accounts, prices and labour market indicators.

Impact of reweighting on Labour Force Survey key indicators: 2024 Article | Released 5 February 2024 Indicative estimates of the Labour Force Survey (LFS) reweighting methodology on key indicators for the UK and countries of the UK, between July to September 2022 and September to November 2023.

Impact of imputation changes in employment statistics from Pay As You Earn Real Time Information methodology Methodology | Revised 4 March 2024 An assessment of changes to the way missing data is modelled in monthly estimates of employees from Pay As You Earn (PAYE) Real Time Information (RTI) data.

Rising ill-health and economic inactivity because of long-term sickness, UK: 2019 to 2023 Article | Released 26 July 2023 Experimental statistics estimating the different health conditions of the working-age population and those economically inactive because of long-term sickness.

9. Cite this statistical bulletin

Office for National Statistics (ONS), released 11 June 2024, ONS website, statistical bulletin, Labour market overview, UK: June 2024

Contact details for this Statistical bulletin