definition of market research in easy words

A Plain-English Guide to Market Research

Published: January 21, 2021

In some circles, market research is a catch-all term for asking the industry what it wants. "Do we know what the demand is for this product? Who's even looking for our services? Let me do some market research to find out," someone might say.

But what does that actually mean?

Here's a simple definition of market research that encompasses all the possible goals of this practice, in fewer than 100 words:

Market Research Definition

Market research is the process of examining an industry's buyers, the product these buyers want, and where they're currently getting it. By engaging the right people and data, a business can use this research to position itself in the market and predict where the market will go in the future.

Market research can answer various questions about the state of an industry, but it's hardly a crystal ball that marketers can rely on for insights on their customers. Market researchers investigate several areas of the market, and it can take weeks or even months to paint an accurate picture of the business landscape.

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

Certainly you can make sound judgment calls based on your experience in the industry and your existing customers. However, keep in mind that market research offers benefits beyond those strategies. There are two things to consider: 

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

Why is market research important?

Market research allows you to get information from a larger sample size of your target audience, eliminating bias and assumptions so that you can get to the heart of consumer attitudes. As a result, you can make better business decisions from knowing the bigger picture.

Here are some examples of insights you can gain from market research:

• Consumer attitudes about a particular topic, pain, product, or brand
• Whether there's demand for the business initiatives you're investing in
• Where to advertise or sell to (geographically or online)
• Unaddressed or underserved customer needs that can be flipped into selling opportunity
• Attitudes about pricing for a particular product or service

Getting answers to these questions based on real data can help you make sound business decisions and minimize risk.

Types of Market Research

To give you an idea of how extensive market research can get, consider that it can either be qualitative or quantitative in nature -- depending on the studies you conduct and what you're trying to learn about your industry. Qualitative research is concerned with public opinion, and explores how the market feels about the products currently available in that market. Quantitative research is concerned with data, and looks for relevant trends in the information that's gathered from public records.

Let's talk about four different types of market research studies you can conduct , a potential goal of each one, and how these studies help you better understand your market.

Qualitative information

Interviews are the personal, one-on-one conversations you can have with the buyers in your industry. You can conduct interviews in person or over the phone.

Your interviewees can answer questions about themselves to help you design your buyer personas. These buyer personas describe your ideal customer's age, family size, budget, job title, the challenges they face at work, and similar aspects of their lifestyle. Having this buyer profile in hand can shape your entire marketing strategy, from the features you add to your product to the content you publish on your website.

Focus Groups

Focus groups are similar to interviews, but in this case, you're assembling a large group of people for one shared interview. A focus group consists of people who have at least one element of your buyer persona in common -- age or job title, for instance.

This type of market research can give you ideas for product differentiation, or the qualities of your product that make it unique in the marketplace. Consider asking your focus group questions about (and showing them examples of) your services, and ultimately use the group's feedback to make these services better.

Quantitative information

Surveys are a form of quantitative research, and you can distribute them over the phone, via email, or through an online survey. A survey could cater to people who've downloaded content from your website or interacted with a member of your business.

Enough completed surveys can help you determine your customer satisfaction level. This denotes how happy your customers are with what you're selling them. You might include questions like, "How well did we solve your problem?" and "Would you recommend our product to a friend?"

Secondary Data

The interviews, focus groups, and surveys are all sources of primary data. Secondary data , on the other hand, is the public information -- online and offline -- that characterizes your industry. This includes competitor websites, social media business pages, trade magazines, market reports, and even census data published by the government.

If you examine enough secondary data, you can learn how much brand awareness you have in the marketplace compared to the companies that provide the same product or service as you.

The market research you perform doesn't have to include every source of information described above. What data you collect will depend on the needs of your business and what you might be most interested in at the moment. 

Editor's note: This post was originally published in July 2018 and has been updated for comprehensiveness.

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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.

About the author

Arnaud Belinga

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How to Do Market Research: The Complete Guide

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

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

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

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

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

What is market research?

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

Why is market research important? 

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

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

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

Types of market research 

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

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

1. Qualitative research

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

2. Quantitative research

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

3. Exploratory research

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

4. Descriptive research

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

5. Causal research

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

6. Cross-sectional research

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

7. Longitudinal research

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

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

Primary vs. secondary market research

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

Primary market research 

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

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

Secondary market research 

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

Here are the main characteristics of secondary market research:

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

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

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

Market research methods

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

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

1. Surveys and questionnaires

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

2. Interviews

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

3. Focus groups

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

4. Observational research

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

5. Online research tools

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

6. Experiments

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

7. Content analysis

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

8. Ethnographic research

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

How to do market research

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

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

1. Set clear objectives

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

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

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

2. Identify your target audience

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

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

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

3. Choose your research methods

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

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

4. Use the right market research tools

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

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

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

5. Collect data

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

6. Analyze data

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

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

7. Interpret your findings

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

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

8. Identify opportunities and challenges

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

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

9. Make informed business decisions

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

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

10. Monitor and adapt

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

Online market research sources

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

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

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

Market research examples

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

Example 1: Apple’s iPhone launch

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

Example 2: McDonald’s global expansion

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

Example 3: Organic and sustainable farming

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

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

Market research templates

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

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

Strengthen your business with market research

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

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

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

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What Is Market Research?

• How It Works
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• How to Conduct Research

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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.

Britannica Money. “ Market Research .”

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

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What is Market Research: Key Insights

Market research is the process of gathering, analysing, and interpreting information about a market, including information about the target audience, competitors, and industry trends. This blog explores "What is Market Research?" highlighting its definition, importance, types, methods, real-world applications, challenges, and tools.

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Have you ever wondered, “What is Market Research?” It’s like having a roadmap for the business world, offering clear visions of customer desires and market shifts. Market Research is the detective work behind successful brands, uncovering clues and piecing together the consumer puzzle. It’s the key to unlocking what makes customers tick, shaping products that they’ll love, and sparking marketing messages that capture hearts.

Market Research isn’t just about collecting data; it’s about weaving that data into strategies that win markets. Ready to decode the secrets of success? Let’s dive into the captivating world of Market Research!

Table of Contents 

1) Understanding What is Market Research

2) Importance of Market Research 

3) Types of Market Research 

4) Market Research Methods

5) Real-world Applications of Market Research

6) Challenges in Market Research 

7) Market Research Tools

8) Conclusion

Understanding What is Market Research 

Market Research is a careful and organised way of collecting, analysing, and understanding information about a particular market or industry. Its main goal is to help organisations learn about their target audience, competitors, and the market they work in.

With clear goals, organisations can choose research methods, such as surveys, interviews, focus groups, observations, or a mix of these. These methods gather both detailed and numerical data, giving a clear picture of the market.  

Importance of Market Research 

 Here are some simple yet crucial reasons why Market Research matters:

Understanding Customers 

Market Research makes it easier for business organisations to have a real understanding of their consumers, their buying habits, and anything that may interest them. Using such knowledge, firms can enhance their goods and services in a way that will ensure satisfaction of the customer needs and hence improve the loyalty of the customers.

Identifying Opportunities 

Market Research helps consumer-facing organisations to understand missing opportunities and the trends in the market. It helps them capture new opportunities in the market and create new strategies that would fit the consumer requirements, thus expanding the market share and sales. 

Optimising Marketing Strategies 

Market Research helps in the formulation of efficient promotion strategies by identifying the channels, means, and situations to find potential customers. This knowledge aids marketers in crafting persuasive messages and identifying the suitable channel of communication, thus achieving a high level of effectiveness of marketing communication.

Mitigating Risks 

Businesses need to minimise uncertainty and gain better knowledge about their consumers and competitors through Market Research data. It limits the chances of going wrong when developing new products or venturing into new segments since decisions are made in reference to facts rather than educated guesses.

Competitor Insights 

Market Research provides insights into competitors' strengths and weaknesses. This information allows businesses to change their strategies, differentiate their offerings, and develop a competitive edge in the market. 

Informed Expansion 

Before entering new markets, businesses can conduct Market Research to understand local preferences and cultural nuances. This insight informs strategic decisions, minimises risks, and increases the chances of successful expansion. 

Types of Market Research 

There are two types of Market Research: primary and secondary research. These methods offer distinct approaches to gathering and analysing information.

Primary Research 

Primary research includes collecting new data directly from sources through methods such as surveys, interviews, and focus groups. This type of research provides firsthand insights and specific data tailored to a particular need or question. It is highly valuable for detailed and targeted analysis, allowing businesses to gain an understanding of their target audience and market dynamics.

Secondary Research 

Secondary research involves analysing existing data that has already been collected by others. This can include reports, studies, and statistical data from government agencies, industry associations, and other organisations. Secondary research is often more cost-effective and quicker to access than primary research. It provides a detailed understanding of market trends and general information.

Market Research Methods

Market Research is essential for understanding consumer needs, preferences, and market dynamics. Here are some of them:

a) Focus Groups: Focus groups involve gathering a small, diverse group of people to discuss a product, service, or concept in-depth. This method allows researchers to gather rich, qualitative data and insights based on participants' interactions and discussions.

b) Interviews: Interviews are one-on-one conversations between a researcher and a participant. They can be structured, semi-structured, or unstructured, providing detailed qualitative data about individual perspectives, experiences, and opinions.

c) Surveys: Surveys are a quantitative research method involving structured questionnaires to collect data from a large number of respondents. They can be conducted online, via phone, or in person and are useful for gathering broad, generalisable insights.

d) Consumer Research with Social Media Listening: It involves monitoring social media platforms to gather insights about consumer opinions, trends, and behaviours. This method helps researchers understand public sentiment and identify emerging trends in real time.

e) Observation: Observation involves watching and recording Consumer Behaviours in natural settings. This method provides valuable insights into actual behaviours and interactions with products or services.

f) Competitive Analysis: Competitive analysis involves examining competitors' products, services, marketing strategies, and market positions. This method helps businesses understand their competitive landscape, find opportunities and threats, and develop effective strategies.

g) Public Domain Data: It includes information available from government reports, industry publications, academic research, and other publicly accessible sources. This data is valuable for understanding market trends, demographics, and economic conditions.

h) Analyse Sales Data: Analysing sales data involves examining a company's sales records to identify trends, patterns, and performance metrics. This method provides insights into consumer preferences, product performance, and market dynamics, helping inform strategic decisions.

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Real-world Applications of Market Research

Market Research isn't just a theoretical concept – it's a practical tool with a wide range of applications across various industries. Here's a detailed exploration of how Market Research is applied in the real world:

a) Innovation and Product Development: Applied research, a type of research, is crucial for driving innovation. It involves using existing knowledge to address practical issues, leading to the development of new products, services, or Market Research Processes that improve existing practices.

b) Resource Optimisation: Market Research helps companies optimise their resources by focusing efforts on promising opportunities and avoiding areas with less potential for success.

c) Social Impact: Market Research can also contribute to societal benefits by addressing issues such as healthcare improvements, environmental sustainability, and technological advancements.

d) Segmentation and Targeting: Statistical analysis of Market Research data can reveal specific segments of the population that are more likely to purchase certain products. It enables companies to customise their offerings and marketing efforts more effectively.

e) Brand Perception: It is crucial to understand how consumers perceive a brand. It can reveal brand associations, levels of brand awareness, and attitudes towards the brand. This information helps businesses shape their branding strategies, improve brand positioning, and monitor brand health over time.

f) Trend Identification: It plays a vital role in identifying emerging trends within an industry or market. By analysing data over time, businesses can spot patterns and predict future movements. This allows companies to stay ahead of their competitors by adapting to trends early and capitalising on new market opportunities.

Challenges in Market Research 

While Market Research is a powerful tool, it comes with its own set of challenges that researchers and businesses must navigate. Here' are  some of the key challenges faced in the Market Research: 

a) Bias in Data Collection: Biases might arise from leading survey questions, sample selection that isn't representative, or the researcher's assumptions. Ensuring a neutral and unbiased approach is crucial to maintaining the integrity of the collected data.  

b) Data Accuracy: The reliability of Market Research hinges on accurate data collection. Errors can occur during data entry, survey responses, or measurements. These inaccuracies can lead to flawed conclusions and misguided decisions. Rigorous validation processes and double-checking data can help mitigate this challenge. 

c) Rapidly Changing Markets: In fast-paced industries, trends can shift swiftly, rendering data outdated. Market Research that becomes obsolete too quickly may result in strategies that are misaligned with current market dynamics. Staying current with up-to-date data and regular research updates is essential in these dynamic sectors. 

d) Sample Size and Representativeness: The size and composition of the sample used for research can significantly impact its validity. A sample that's too small might not accurately reflect the entire target population, leading to unreliable conclusions.   

e) Data Privacy and Ethics: Collecting and using personal data raises ethical concerns, especially in an era of privacy awareness. Striking a balance between gathering necessary information and respecting participant privacy is essential.   

f) Interpretation of Qualitative Data: Qualitative data, gathered through techniques like interviews and focus groups, can be challenging to analyse objectively. Interpretation can be subjective and influenced by researchers' biases.  

Market Research Tools

These tools help businesses make decisions and develop effective strategies. Here are some of them:

Online Survey Platforms

Online survey platforms like SurveyMonkey, Google Forms, and Qualtrics allow researchers to design and distribute surveys easily. These platforms offer various question types, customisation options, and data analysis features to gather and interpret quantitative data efficiently.

Social Media Analytics Tools

Tools like Hootsuite, Brandwatch, and Sprout Social help monitor and analyse social media interactions. These tools provide insights into consumer sentiment, engagement metrics, and trending topics, enabling businesses to understand their online presence and audience better.

Customer Relationship Management (CRM) Software

CRM software like Salesforce, HubSpot, and Zoho CRM helps manage customer interactions and data throughout the customer lifecycle. These tools give valuable insights into customer behaviour, preferences, and purchasing patterns.

Web Analytics Tools

Tools like Google Analytics and Adobe Analytics analyse website traffic, user behaviour, and conversion rates. These tools help businesses understand how visitors interact with their websites and find areas for improvement.

Competitive Intelligence Tools

Competitive intelligence tools like SEMrush, SimilarWeb, and Ahrefs provide insights into competitors' strategies, website performance, and market positioning. These tools help businesses identify opportunities and threats in the competitive landscape.

Data Visualisation Tools

Data visualisation tools like Tableau, Power BI, and D3.js help transform raw data into interactive and visual representations. These tools make it easier to find trends, patterns, and insights, facilitating better decision-making.

Market Research Panels

Market research panels like Ipsos, Nielsen, and Toluna provide access to a pre-recruited group of respondents who participate in various research studies. These panels offer reliable and diverse data for market analysis.

Sentiment Analysis Tools

Sentiment analysis tools like Lexalytics, MonkeyLearn, and IBM Watson analyse text data to determine the sentiment behind consumer opinions. These tools help businesses understand public perception and sentiment trends.

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Conclusion 

For any organisation to be successful, it is essential to grasp the concept of ‘What is Market Research?’. Understanding its significance, categories, techniques, uses, and tools can help businesses learn more about market trends and customers’ actions. However, Market Research plays an important role in decision making, management of strategies and staying on top of the competition in today’s world.

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Frequently Asked Questions

The Five W’s of Marketing Research include who is to be surveyed, what is to be said to and asked of the consumers, where and when the research is to be conducted, and why the research is being conducted. These questions ensure comprehensive and focused data collection for actionable insights.

The six types of questions are multiple-choice, rating scale, Likert scale, open-ended, demographic, and ranking questions. Each type has a specific purpose in gathering quantitative or qualitative data: to understand respondents' opinions, behaviours, and characteristics.

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The Knowledge Academy’s Knowledge Pass , a prepaid voucher, adds another layer of flexibility, allowing course bookings over a 12-month period. Join us on a journey where education knows no bounds.

The Knowledge Academy offers various Marketing Courses , including the Content Marketing Course, Marketing Research Training, and Strategic Marketing Course. These courses cater to different skill levels, providing comprehensive insights into Marketing Job Description .

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market research

Definition of market research

Examples of market research in a sentence.

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'market research.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

1920, in the meaning defined above

Dictionary Entries Near market research

market price

market-ripe

Cite this Entry

“Market research.” Merriam-Webster.com Dictionary , Merriam-Webster, https://www.merriam-webster.com/dictionary/market%20research. Accessed 16 Sep. 2024.

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How To Do Market Research: Definition, Types, Methods

Jul 25, 2024

11 min. read

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

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

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

Table of Contents

What Is Market Research?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Interviews

3. Focus Groups

4. Observations

5. AI-Driven Market Research

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

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

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

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

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

3. Focus groups

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

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

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

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

5. AI-driven market research

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

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

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

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

Examples of common market research questions include:

Demographic market research questions

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

Product or service usage market research questions

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

Brand perception market research questions

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

Buying behavior market research questions

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

Customer satisfaction market research questions

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

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

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

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

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

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

Step 1: Define your objectives

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

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

Step 2: Select your market research methods

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

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

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

Step 3: Develop your research tools

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

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

Step 4: Conduct the market research

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

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

Step 5: Analyze and apply your findings

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

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

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

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

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

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

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

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

What Is Market Research?

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

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

The Purposes of Market Research

Why do market research? It can help you…

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

What Are the Benefits of Market Research?

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

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

What Are the Basic Methods of Market Research?

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

Primary vs. Secondary Market Research

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

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

Primary Market Research

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

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

Secondary Market Research

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

Identify Your Goals and Your Audience

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

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

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

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

How to Do Market Research

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

Secondary Data

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

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

Find Your Customers Online

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

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

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

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

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

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

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

Market Surveys

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

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

Who to Include in Market Surveys

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

Example Questions to Include in Market Surveys

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

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

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

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

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

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

Survey Tools

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

Competitive Analysis

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

Social Media Analysis

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

SEO Analysis and Opportunities

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

Ready to Kick Your Business Into High Gear?

Now that you’ve completed the guide to market research you know you’re ready to put on your researcher hat to give your business the best start. Still not sure how actually… launch the thing? Our free mini-course can run you through the essentials for starting your side hustle .

About Mary Kate Miller

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

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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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Quickonomics

Market Research

Definition of market research.

Market research refers to the process of gathering, analyzing, and interpreting data about a specific market or industry. It is a systematic and objective way of collecting information about consumers, competitors, and market trends to make informed business decisions. Market research can involve various methods such as surveys, interviews, focus groups, and data analysis.

Let’s say you are planning to start a new business selling organic skincare products. Before launching your products, you want to understand the market demand, competition, and preferences of potential customers. In order to conduct market research, you can start by designing a survey to collect information from a sample of your target audience. The survey can include questions about their skincare routines, preferences, and willingness to pay for organic products.

Additionally, you can analyze existing market data and reports to understand the competitive landscape and identify market trends. This might involve examining sales figures, market share data, and consumer behavior patterns in the skincare industry.

Based on your research findings, you can make data-driven decisions on aspects such as product development, pricing, marketing strategies, and distribution channels.

Why Market Research Matters

Market research is crucial for any business because it provides valuable insights and understanding of the market environment. It helps businesses identify opportunities and potential challenges, make informed decisions, and minimize risks. By conducting market research, businesses can gain a competitive advantage, tailor their products or services to meet customer needs, and develop effective marketing campaigns. It allows businesses to stay ahead of the competition, attract and retain customers, and ultimately drive business growth and success.

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Market research is a thriving industry, full of invention and innovation. In such a busy, future-thinking industry, it can be hard for newcomers to know where to start when learning about insights. So here is FlexMR’s guide to market research, exploring the ins and outs of market research – the industry, process, methodologies, tech, tools, and current trends.

In this article, we'll cover four key areas that it's important for all research and insight professionals to understand:

•  A market research overview (definitions, approaches and technologies)
•  Common research methodologies (qual, quant, primary and secondary)
•  The market research process (recruitment, collection, analysis, activation)
•  Examples of effective research from industry leaders

An Overview of Market Research

The earliest recognised example of market research took place in the 1920s. During this period, Daniel Starch developed a theory that proposed advertising had to be remembered in order to be effective. To test this theory, he asked people on the street if they could remember specific adverts in select publications that they read. Soon after, George Gallup proposed a rival theory known as aided recall that would go on to influence media measurements for years to come.

Between those early years and the present day, the pracitice of market research has developed significantly. It now encompasses a broad range of qualitative and quantitative methods, many proposed throughout the golden age of the 1940s - 1980s. New innovations today push the boundaries not in the realms of process of methodology, but in technology - continually refining research activities and unlocking greater efficiencies.

Market Research Definition

The Oxford English Dictionary defines market research as “the action or activity of gathering information about consumers’ needs and preferences.” 

But, as noted in another of our blogs , this is a basic working definition. In fact, market research has many uses beyond identifying consumer behaviours and trends, and also works to help stakeholders understand the capabilities, efficiency and need when it comes to their own brand, products, processes and services, even the industry they operate in. Market research holds the key to understanding the current situation in all its facets and then exploring the best way to navigate into the uncertain future.

Everyone’s experience of market research differs depending on their objectives, the methodologies used, and the answers gained. Most stakeholders have a sense of how important market research is for future success, but there is still some ground to be gained from insight teams.

The main objective of market research is to provide accurate and relevant answers to stakeholder questions – anything more specific would depend on the questions themselves.

Approaches to Market Research

There is universal applicability of the insights generated from market research. Stakeholders are able to embed insights in businesses spanning all industries to inform strategies working through a range of situations and challenges, such as:

• Competition analysis and brand tracking 
• Customer profile and trend tracking
• Opportunity spotting and future-proofing
• General trend forecasting
• Product/service development and enhancement
• Effective Market Analyses
• Marketing and ad testing

Market research is a great way to find answers to more specific challenges and questions unique to the stakeholder organisation. Perhaps stakeholders have a communication strategy in place that needs updating or a particular part of their customer experience under review, or even an employment experience that needs renovating in order to attract new talent - market research is a flexible and widely applicable experience that can gain influential insights to inform all decision-making processes.

Depending on the challenge at hand and the experience of the stakeholders involved, there are a couple of different ways to approach market research:  

• If there is a challenge presenting itself, the best way would be to enlist the help of an insight team to help devise a research experience to gain insights on how to resolve the issue effectively.  
• If there is a question presenting itself that is less time-sensitive and the stakeholders have some previous experience of basic insight generation, then stakeholders might look for secondary data or previous in-house research projects to see if any answers present themselves there first before requesting more research be done.

All approaches to research must aim for the same goal: objective clarity, communicated in a way that everyone understands and can use to the full extent of their particular power.

Typically, the traditional starting format of a research experience is for stakeholders to first define the problem, hypothesis, and potential answers they expect to pop up at the end; then they commission insight professionals (in-house or agency) to create the research experience and guide them through the process of finding the right answers.

Market Research Technologies

Technology has driven innovation in the market research industry for decades now, with most of the innovation focussed on the most heavy-lifting data collection and analysis tools. In the last 30 years, our vocation has grown from face-to-face research to mostly online insight generation. With innovation injected into every aspect of the research process, the result is new research tools and creative methodologies for insight teams to take advantage of when designing new exciting research experiences.  

We have developed a large catalogue of research technologies for the research technology stacks insight teams need. Research technology stacks are uniquely tailored to each team and organisation, so the technology each team has available or will need available will need to be outlined and understood in the research brief and design stage of the research experience.

We incorporate research into everything we do. Although we conduct a lot of surveys, access to agile, qualitative options enable us to dive deeper into insight and really understand customers. Research Analyst, SkyBet

Finding the right technology vendors can be a heavy task for insight teams with all of the latest research technology on offer, so the question becomes: how do we choose which technologies should go into the research stack?

There are numerous considerations insight teams need to take into account, such as:

• How well their technology fits in with the other tools and tech the insight team are currently looking at.
• The values, objectives, and future of the vendor in question, and if they align with the values, objectives, and future of the insight team/stakeholder organisation.
• How well they understand and are able to cater towards the requirements of the insight team, whether that’s on a long-term basis or just for one project.

We have created a free template for insight teams to keep track of all the considerations they’ll need to find the right vendors to work alongside.

Research Methodologies

There are two broad ways in which market research methodologies are classified. Primary vs secondary looks at whether the data was collected first-hand or via existing sources. Whilst qualitative and quantitative methods differentiate between measures that are statistical or subjective in nature.

Primary Research

This is the type of research that most of the insights industry specialises in – where insight teams generate original data by getting in touch with customers and consumers to find out their opinion first-hand and forwarding that data onto stakeholders to influence strategic decisions within their business.

There are a couple of paths stakeholders can choose to take depending on their resources, they can either conduct the research themselves (if they have the time, experience and knowledge to do so), they can request the research be done by their in-house insight team (if their organisation has one), or they can hire an external research agency to work with them and conduct the research for them.

Each research agency will provide similar and different products and services for hire, so if stakeholders do need to hire an external agency, it’s vital they do a bit of research and speak to each agency they consider to make sure the partnership is right for all involved.

Secondary Research

This is the research that’s already been conducted by other people and published for others to use for their own purposes. Most of this data comes at a cost and is published in private or subscription-based academic or industry journals. While the data in these journals are typically well-thought-of and proven, researchers need to be wary and make sure the secondary data sources are reliable enough to factor into research experiences.

These secondary data sources were originally sourced through primary data collection and analysis, but by other researchers or teams not involved in this particular project. Secondary research sources can be used within a research experience alongside primary data collection, even going so far as to influence the primary research taking place if stakeholders are wanting to test the reliability or replicability of the secondary data gathered.

Quantitative Research

Quantitative research and data have become synonymous with market research. It is the typical numerical, statistical data that most stakeholders are used to seeing in research reports. This data is typically gathered from quantitative methodologies such as surveys, polls, questionnaires, observations and in-depth interviews. This research provides measurable statistics that work to quantify the opinions and attitudes of research participants.

The statistical output of quantitative research means that researchers are able to objectively test theories and measure the attitudes of their target audience. Surveys are usually the first thing anyone thinks of when they hear about quantitative market research, as it’s the most common quantitative research methodology used both inside and outside of the insights industry.

We are answering challenging questions through our quantitative panel. It provides insights that help us make decisions today, as well as the capacity to continue improving products and campaigns. Customer Insights Manager, Specsavers

Quantitative data analysis is a very logical process, and as such requires a good knowledge of mathematics and statistical analysis to derive meaning from data points on graphs and tables, finding correlations without attributing them to causations, and either proving or disproving a current hypothesis. 

Find out more about quantitative research in our blog here .

Qualitative Research 

What comes to mind when you think about qualitative research? Probably not too much other than the typical focus groups and interview-based research methods. These were probably the most used in conjunction with surveys throughout market research history, and it’s only now in the past couple of decades when there were more options available to researchers and stakeholders.

With the drive of technological innovation and the need powered by the events of 2020, online focus group technology is powering stakeholder efforts to conduct more online qualitative focus groups.

But there isn’t just focus groups to consider. More creative research methods are able to provide just as good data with potentially more intriguing results. Scrapbooks, sentiment-based heat maps, diary studies, and more are suitably poised to drive the generation of deep contextual insights in research experiences - boosting quantitative data more than simple focus groups every could on their own. While it depends a lot on the insights stakeholders need, focus groups might not be the answer to gaining more contextual information from the survey data collected. Or at least not on their own. Insight teams need to try and blend research tasks, tools and methodologies to get the right insights for their stakeholders.

Find out more about qualitative research in our blog here .

Passive Research

While this is still a developing segment of the research sector, there are passive ways of generating primary data. Data mining , using social media , geolocation tracking, and eye/movement tracking technologies are being developed up to a high standard and implemented as a part of modern research experiences.

There is a lot of insight to be gained from tracking consumers behaviour rather than trusting their word alone. Observation research is one of the founding principles for this, however as we move into an increasingly technological age where most of the global population is living a life online, behavioural science principles have evolved to track online behaviours as well as offline behaviours:

• Social media is a great stage for behavioural data mining and more active research tactics such as quick polls. 
• Geolocation uses our smartphones to track our movements (when permissions allow) and businesses can use that data to get a better sense of consumers daily lives.
• Eye-tracking software can be used to see which parts of a website, advertisement or retail store is more attractive based on what we see first and which parts we linger on more.

The Market Research Process

As a key step in the marketing process, it is vital that research is carried out with care and due diligence. The following five steps outline the order in which research activities should be completed to deliver project success.

Step 1: Research Brief and Design

A market research brief is a document a client produces, detailing important information about their unique situation and research requirements – so a brief is an essential document for insight teams to obtain before even thinking about the rest of the research process.

Stakeholders create the brief, most of the time in a form produced by the insights team, defining the problem or situation they are currently encountering, the current business objectives this research would also work towards (if applicable), the research objectives they believe would be good to work towards, the constraints they’re working with (time, budget, etc.), and how involved they would like to be throughout the process.

There are a number of other factors that could go into the research brief, for example, any contextual factors stakeholders think might influence the research experience, etc. However, we created a template for a research brief that covers a lot of the criteria mentioned here for ease – feel free to download and use it to your advantage.

This brief is then the basis of the research design and planning. The insight teams involved take the brief and use the information within it and their expertise to design the most appropriate research experience possible that will generate accurate and relevant insights for the stakeholder organisation.

A plan is similar to a brief, in which is holds vital details about the market research project and is an often overlooked part of the process - but an effective plan is critical to research success. We have created a guide on how to write an effective market research plan, complete with a template to help stakeholders and insight professionals make sure they have given all aspects equal consideration.

Step 2: Recruitment 

This next stage is a little trickier. Most insight teams might do well to consider the recruitment options and planning in the research design and brief stage and reserve this part of the process for active recruitment and research platform setup.

However, for those only starting to consider recruitment, insight teams will need to take this stage for both planning and active recruitment. Consider the sample you’re looking to gain insight from, which customers or consumers might be best placed to provide the best data for insight generation. This determining of the sample can make or break a research project, with the right sample able to produce relevant and accurate data that can be applied to full effect in stakeholder decision-making processes.

Then consider the recruitment method or sample provider insight teams are working with. It might be that the sample the team needs is all active on social media, and recruitment through targeted ads might be a good DIY tactic to implement. However, to take the stress out of recruitment, commissioning a sample provider might be a better way to go. Sample or recruitment providers are skilled in this area and typically already have a database of willing participants they can put insight teams in touch with for a set fee.

However, another popular tactic is to recruit research participants out of a business's existing customer base. This means stakeholders and insight professionals know they’re engaged with the business to some degree, and the branded or business-specific research will already be completed by their target audience.

Our customers are our stakeholders; their opinions and feelings are vital to the success of the society. As such, their engagement with our research is crucial. Customer Insights Specialist, Coventry Building Society

Once the sample and provider have been determined, it’s time to sort the wheat from the chaff. It’s common to use a screener survey to make sure the sample is exactly what insight teams need, and segment the sample by demographic or other more project-specific factors, and upload them onto the platform the team are using to conduct research on. This platform might host a dedicated research community or simply a panel platform to hold the information in and create dedicated research tasks to send to research participants through email.

Step 3: Data Collection

The most recognisable stage of market research. This is where all the data collection tools and methodologies decided in the research design stage are implemented to full effect. If the research experience is designed correctly, the data gained in this stage will be accurate and relevant, ready for insight teams to analyse and pull directly actionable insights for stakeholder use.

There are numerous data collection tools and methodologies available to the  modern insight professional. Common market research methods include:

• Online, telephone and street surveys
• Online and in-person focus groups
• Written or online diary studies
• Smartboards and image markup
• Long-term, pop-up and listening communities
• Traditional, mobile and web ethnographies
• Biometric response research
• Wearable-based research
• Vox pops and video surveys
• Social media intelligence
• Augmented reality-based testing
• Gamification research

It’s hard to name all of the market research methods and tools in existence because there are so many. The tools and methods mentioned here are the ones used most often, or the ones most requested in the insights industry, and while they are varied in how they collect data, all of them provide either quantitative or qualitative data for research analysis.

Step 4: Data Analysis and Insight Generation

This is the second most recognised stage of the research process, where all the hard work collecting the data comes to light and is seen in full. The data collected in the previous stage needs to be accurate, otherwise, the insights generated at this stage of the research experience will be worthless and irrelevant to the stakeholder situation, and thus will be a waste of time, money, and effort.

For quantitative data handling, statistical analysis is the primary method of analysis. Cross-referencing data from tables, charts, and graphs to interpret the clear meaning and determine any correlations or causations of consumer behaviour. However, this mathematical ability doesn’t always come naturally, and so there are a number of statistical tools out there to help researchers gain more traction in this particular arena. Tools such as FlexMR’s NumbersMR produces both simple and complex data tables for better analysis, and graphical representation at the push of a button to make statistical analysis more available to stakeholders as well as researchers.

For qualitative data, this analysis can be slightly trickier. Qualitative data analysis can be objective but is also rooted in subjective interpretation. However, because of the more open content of the data, it can be easier for even non-researchers to derive a few insights from the raw data.

Because of recent innovations in qualitative data collection, there are up and coming methods of qualitative data analysis to match the quality of the incoming data. Video analysis tools now have a prominent place in the market researchers’ arsenal with the rise of video data collection. Tools such as our own VideoMR are rapidly gaining an appreciation for their streamlining of qualitative video analysis processes, with features such as auto-transcription and clip/montage creation making it easy to analyse and group content together, as well as provide a great new format for video clips for more engaging, connective, and immersive insight reports.

Step 5: Insight Reporting and Activation

There is a myth outside of the research world, that the research experience ends once the report has been handed over. This myth was brought to life and perpetuated through previous experience of early market research when that might have been true for most stakeholders and insight professionals; however the world has moved on, and the market research industry can offer so much more than simple insights. We are beginning to now offer the true power of knowledge with ways in which the insights provided can be activated.

To master insight activation is to harness the true power of market research and make positively impactful decisions in real-time. The best way to help this happen is to inject creativity into your reporting and be consistent in your communication.

There are a few ways we can boost the interest level of stakeholders in insight reports:

• Using video , animation, and graphic images can bring a whole new level of interest to a research report. Whether it’s using video clips of research participants for better connectivity or using the medium of video to communicate the report itself, video, animation, and graphical imagery are proven to easily engage audiences on thought-provoking topics.
• Interactive insight sessions are a great way to break through the barriers between stakeholders and insight teams. With in-person or online insight workshops and forums, researchers can deliver the insights face-to-face with stakeholders and take the time to explain the insights generated and answer any questions stakeholders have.
• Using creative methods such as interpretive art to represent insights and tell the story in physical form. Art is a powerful form of storytelling and has been proven through our Insight as Art programme to engage stakeholders in insights through intrigue and interpretation.
• Storytelling techniques are great for engaging even the most disconnected of audiences, enrapturing them in the respondents, scenarios, and challenges of the research experience through created characters, settings, and narrative plot.

Customisation is the key to a truly impactful insight report; insight teams need to understand how stakeholders like their insights communicated and what engages them in order to make the best report possible. To help, we’ve created a simple template to help insight teams present impactful results in the research report.

Now that we’ve established a few different reporting techniques, we need to talk about the importance of consistent communication. Embedding the right communication channels and practices between stakeholders and the insight team is incredibly important for the success of the research experience. Without communication , the connection between stakeholder and insight report will vanish, as will the actionability and memorability of the insights contained within the report, meaning that the impact of the insights will be zero.

There are a few communication tactics insight professionals use regularly within stakeholder organisations; for example, regular insight newsletters, insight forums and workshops, insight immersion days, and even creating data warehouses to break down departmental silos that are detrimental to the productivity of stakeholders teams throughout the organisation.

Examples of Effective Research

Today, research is considered an essential part of many strategic processes. From new product development to advertising effectiveness, brand loyalty and market expansion. Here are a number of examples of how effective market research can have a real impact on your business.

1. The Caravan and Motorhome Club

The Caravan and Motorhome Club (CMC) use market research wisely for future-proofing their business, making sure that they’re changing with the times and in accordance with their own members’ behaviours so they can provide the best services possible.  

As they operate distinctly in both the tourism and automotive industries, their recent attentions have turned to sustainable camping in the response to the advancements made to electric and hybrid technology development and the growing concerns for more environmentally friendly forms of camping.

In the InsightHub, the CMC used qualitative focus groups to gain intelligence into how their members are currently using electric and hybrid vehicles, as well as their thoughts on the future of this use in domestic and international tourism. With their ultimate purpose to use the insights to redevelop a current campsite into a sustainable one, the insight team also used image-based stimuli to spark conversations on the practicalities of developing a campsite for electric and hybrid vehicles for a more sustainable future.

Find out more about the insights the CMC gained in our case study here .

2. Specsavers

Specsavers have a long-term research panel dedicated to insight generation on a variety of different topics. Most recently and notably, the Specsavers insights team used online quantitative tools to gain some insights to inform their ‘Don’t Lose The Picture’ glaucoma health campaign, as well as glasses product testing.

Being a multi-national health service as well as a retail brand, Specsavers are recognised experts in their field of optometry and audiology, and they must remain seen as these experts while also balancing a certain amount of self-promotion to be successful in both endeavours. Their glaucoma health campaign needed to balance marketing and health awareness tactics in order to push people at risk of glaucoma to take action to prevent it from happening - and that is why they conducted market research with a sample of their customers on their research panel to make the most effective campaign since their renowned ‘Should Have Gone to Specsavers’ adverts.

To learn more about their success and the outcome of their survey research, read the case study here .

3. The Coventry Building Society

The Coventry Building Society, like all building societies, are a member-led financial institution . Their members are their stakeholders, and as such are directly involved with the strategic decision-making within the organisation through market research. The Coventry’s long-term research community use primarily qualitative research tools to relate feedback on a variety of topics from the strategic trajectory of the organisation to their general communication strategies and customer experience.

With such direct involvement and the use of new research methodologies that are purpose-built for listening to customer insights (participant-led research rather than researcher-led), this has led The Coventry to build an award-winning standard of customer experience excellence - their challenge now is to maintain this excellence by building customer experience solutions that work for everyone.

To find out how their research is going, take a look at our case study here .

Insights Empowerment and Efficiency 

Insights empowerment is the key to realising a business’ potential. Creating a culture of insights within organisations and connecting stakeholders closer to customers and consumers can revolutionise decision-making processes, with stakeholders able to make decisions more accurately in real-time through consistent access to powerful insights. 

FlexMR has designed its trademark Insights Empowerment Framework to help identify clear steps in a business’ trajectory to improve in the domains of efficiency , scale, and reach. In other words, how efficiently insights are produced and communicated across the organisation, how much they’re able to influence stakeholders that come across them, and how many stakeholders actually have access to them.

This game-changing way of thinking addresses the three issues insight teams face when working with stakeholders throughout their organisation and works to improve them in a timely fashion, so their insights are used to their full potential within the organisation and driving transformational change .

Find out more about FlexMR’s Insights Empowerment Framework and how it can help revolutionise your strategic decision-making processes here .

About FlexMR

We are The Insights Empowerment Company. We help research, product and marketing teams drive informed decisions with efficient, scalable & impactful insight.

About Emily James

As a professional copywriter, Emily brings our global vision to life through a broad range of industry-leading content.

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Marketing research: Definition, steps, uses & advantages

What is marketing research?

Marketing research is defined as any technique or a set of practices that companies use to collect information to understand their target market better. Organizations use this data to improve their products, enhance their UX, and offer a better product to their customers. Marketing research is used to determine what the customers want, and how they react to products or features of a product.

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Four standard marketing research methods

The four most common marketing research methods are surveys, interviews, customer observations, and focus groups. You can research various ways without limiting yourself to just one way. Let’s dive deeper into each of these marketing research techniques.

Researchers collect responses by deploying surveys and managing data via online questionnaires or on-screen surveys at the POS. These surveys contain closed-ended and open-ended questions. They are popular and are the most widely used research techniques.

Why are online surveys popular?

Surveys are inexpensive, simple to set-up, deploy, and gather responses. It gets easy to collect multiple answers from a tailored audience group using surveys. Researchers rely on quantitative data, and online surveys provide quick responses compared to the more traditional offline methods. You can collect large amounts of data within minutes from anywhere in the world.

2. Interviews

Face-to-face or personal interviews are a more traditional way of doing marketing research. It is a slow and more expensive way of collecting responses. Researchers doing large scale marketing research do not prefer this method to collect a large number of responses. Interviews are conducted both in-person and on the telephone (CATI). 

Why are interviews important?

Personal interviews may not be widely used but play a significant role in understanding precisely what the respondent feels. You can record more than just verbal responses and understand the customer better. Often, when two humans interact with each other, more information is shared because of the dialogue. Personal interviews are useful in small-scale studies, where the researcher wants to interview a specific group of local respondents. CATI’s are helpful when the respondent base is more expansive.

3. Focus groups

Focus groups or online focus groups involve several respondents who participate in discussions about a particular topic. A researcher conducts focus groups to obtain richer information. The main reason for a focus group is to hold a dialogue between various people on a particular topic of interest. Unlike interviews, focus group members are allowed to interact with each other and influence one another.

Why are focus groups impactful?

It is no secret that focus groups are hugely impactful in decision making. Researchers gain a lot of information by organizing focus groups. Often, focus groups bring up issues not foreseen by researchers. Online or video focus groups have a broad reach, and many organizations have now started creating and nurturing research communities for better respondent handling and data gathering. Direct interaction of business groups and customers positively impacts users because they feel that their voices are heard.

4. Observation

Observation, though not popular and widely used, gives intuitive feedback. Research companies organize customer observation sessions to gather information on how they engage with the product or service (or a similar competitor product or service). Feedback from people’s behavioral attitudes is a powerful tool for researchers looking to improve their products and services.

What makes observation so powerful?

Observational market research is an excellent alternative to focus groups. It’s not only an inexpensive research tool, but you will also witness people interacting with and using your product in a natural environment. The downside is that you will have to make inferences about their feelings and reactions.

LEARN ABOUT: market research trends

How to conduct marketing research

Follow these four marketing research steps to help you understand what your users think and feel about your product, service, or business.

LEARN ABOUT: Behavioral Research

1. Create simple user personas

A user persona is nothing more than a fictional character that represents a user or a customer. Understanding user personas will help you gauge how different persons react to other products and services to understand their needs. To create a persona, your questions must answer these types questions about the user or customer:

• Who are they?
• What’s their primary goal?
• What stops them from achieving that goal?

2. Conduct observational research

Use both overt and covert observation methods to observe and take notes while users use your products or a similar one.

Overt vs. covert observation

• Overt observation asks users if they will allow you to watch them use your product. 
• Covert observation studies users in a natural environment without them knowing. This type of observation generally works only if you sell a product that consumers buy and use regularly. It brings in the purest observational research data as people act naturally while using the products. 

3. Conduct personal interviews

One-on-one conversations with your target population allow you to explore and dig deep into their concerns, revealing answers to many questions. Here are a few tips for conducting personal interviews.

• Be a journalist and not a salesperson. Ask users about their frustrations, needs, and areas where they think they need an improvement in the product. 
• Pose the ‘why’ question to dig deeper. Dive into the details to know more about their past behavior.
• Recording the conversation helps you focus on it rather than take notes simultaneously.

4. Analyze the data

The idea of conducting lean marketing research is to receive quick, actionable insight data. Analyze the information you have collected using various techniques to draw patterns into what customers like and dislike, what they want, and what they do not need. Create a simple visual representation of how people will interact with each other and the product to assess their needs in a better way.

LEARN ABOUT: Marketing Insight

Why is research so valuable?

Without research, it is impossible to gauge and understand your customers. Of course, you will have an idea of what they need and who they are and, but you must dive deeper to win their loyalty. Here is why marketing research matters:

• Attract potential customers: The primary aim of marketing research is to find ways to attract potential customers. It also helps to keep current happy and coming back for more. Understanding your customers entirely is the only way to progress. You’ll lose potential customers if you stop caring about improving your user experience.
• Answer the why’s: Marketing research gives you the answer to the ‘why.’ Make use of user analytics, big data, and reporting dashboards in marketing research to tell you what your users are thinking and why they think and act that way. For example, only marketing research can explain why customers leave you.
• Data-backed decisions: Research beats trends, assumptions, and so-called best business practices. Bad decisions are often taken due to emotional reasoning and guesswork. Focusing on customer experience by listening to your customers directs you in the right direction.
• Better planning: Research keeps you from making absurd decisions by planning in a vacuum. You might not fully gauge what your customers experience and feel while using your product. Customers may use products in a way that surprises you, and they may get confused by features that seem obvious to you. Conducting too much planning but not testing your assumptions will waste your money, time, efforts, and resources. Research helps you save up on all these factors.

LEARN ABOUT: 12 Best Tools for Researchers

Advantages of MKT research

Marketing research and user experience (UX) design help you continuously improve your product by acting on your feedback. Here are the advantages of conducting marketing research:

• Improved efficiency: Efficiency draws you closer to your users. You can improve the efficiency of delivering the product to the market and also increase its usability.
• Cost-effective: Marketing research helps you make the right decisions based on consumer demand, thus saving you costs in creating something that customers do not like or want.

LEARN ABOUT:  Test Market Demand

• Competitive edge: Quicker, more robust insights can help you place your services and products strategically, gaining a competitive advantage over others.
• Build strategies: You can quickly build, alter, or design new approaches to attract your users and consumers.
• Improved communication: Bridge the communication gap by interacting with consumers and hearing them out. This helps consumers feel wanted and special.
• LEARN ABOUT: Market research vs marketing research

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What is Market Research? Definition, Purpose and Benefits

On this page:

• What is market research? Definition. Why it is so necessary and what is its purpose?
• Importance, key advantages, and benefits for the business.
• What are the two main types of market research?
• Infographic in PDF for free download

No matter if you are going to create a completely new product or you want to develop the existing one, you need a good market research process.

Market Research Definition and Importance

In simple words, it is the process of collecting, analyzing and interpreting information about a particular target market.

It might be a research about a product or service, customer habits, and needs, a particular industry or competitors.

You know how important is the accurate information delivered on the right time. It is crucial for overall business success. Without the right information about the market, your business can’t do the most important – to solve the customer problems.

To run a profitable company, it is vital that you perfectly know who your customers are, what are their needs, and how to cover them. As you see the product of market researcher is data.

However, a good market research should not stop with data. Data are the collection of opinions, facts, statistic and other types of information that tell us something important.

More than ever before marketing research is transforming to intelligence that aim to helps us make smart moves.

So, what is the purpose of market research?

Simply, its purpose is to give you the right information for important market variables regarding your business.

The purpose is to collect relevant data on customers, competitors or products. The collected data allows your company to do effective decision making in the right way.

Therefore it decreases the risks involved in making a variety of decisions in an organization.

The environment that you operate is so dynamic.

Changes in economic conditions, demography, technology, customer needs, beliefs and etc. affect the way you do business.

Let’s sum the market research benefits and advantages:

1. You are closer to your current and potential customers

You understand better your customers – their characteristics, preferences, expectation, needs, beliefs and etc.

2. Helps you identify new opportunities in the marketplace

Market research can give you a hint and can open your mind for new ideas to increase sales and grow your business.

3. Helps you to identify potential problems

You are able to see consumers’ reactions to a service in a development stage. This can give you a view how to go further.

4. Minimize risk

Starting a new product, for example, hides a risk. There are chances you to make profits or losses. It mainly depends on how your customer accepts the new product. However, a market research minimizes the risk. Through market research, you can find almost all the information you need to decide what action to take.

5. Market research support you to establish your market positioning

Information from market research allows you to know what is your current position and help you to monitor your progress. You can use market research to figure out particular ratings, including how customers rate your product quality.

6. Help you to find out how to be better than your competitors

The research of a target market gives you the opportunity to know competitors well and to examine their strengths and weaknesses. This gives you ideas on how to offer better products and services.

7. Measures your reputation and help strengthen your credibility

Market research not only finds out where you are now but also allows you to improve your own reputation and give people more confidence in your decisions.

8. Allows you to make better plans

By examining the crucial factors in a target market, you can better predict how the market and your business will become in the future. With this data, you can adjust your business to fit the future needs and expectations in the market.

9. You are able to stay on track with the last industry trends

Your business will know and constantly will learn about the changes in your customer needs and requirements, your competitor’s efforts, what are the upcoming technologies and etc.

10. You are able to come up with professional decisions

As we mentioned above the informed decision making is the main purpose of market research efforts and activities. The research can give you all marketing benchmarks that you need to constantly improve your company’s marketing strategies.

11. Improves communication with your customers

Market research can really boost effective communications between your company and your customers. You can communicate with understanding and have the right ideas on how to handle the customer’s questions.

The two main types of market research

Now, as we saw the key advantages, let’s go further and understand what are the main two types of market research. The two essential types of research you can perform are primary and secondary research.

Primary Research

If you want to meet your specific need, primary research is designed to help you.

What is primary market research?

Primary research is used to directly gather information from potential customers.

The most common methods for collecting data are:

• focus groups
•  interviews
• observations
• field testing and more.

You can do the market research by yourself or by hiring a research company to do it for you. The crucial benefit of primary research is that it gives you more specific results. Results that cover your particular needs.

Primary research is all about answering questions relevant only to your company.

A disadvantage of primary research is that it can be expensive and time-consuming. It refers to when you are hiring a research company to lead the research.

Secondary research

As we saw above primary research involves the gathering of fresh data.

In secondary research, you just use previously completed examinations and apply their results to your case.

In this type of research, you normally spend less time and less money. Furthermore, it can be completely free, if you use the internet, research journals, a library and etc.

While secondary research is less targeted, it is still valuable information that your business can use.

Customers always will be the most crucial part of any business. Today, if the customer is not in the center of your business, your business has no future.

This is where market research comes to help you understand your customers’ needs and to give you the power to make informed decisions with reduced risk.

Market research is a weapon that allows you to uncover the truth hidden under a variety of assumptions.

Knowing the truth about the needs, expectations, and desires of your audience, you have the core basis for building trust and make your business successful

What is Market Research Infographic for free download in PDF

About The Author

Silvia Valcheva

Silvia Valcheva is a digital marketer with over a decade of experience creating content for the tech industry. She has a strong passion for writing about emerging software and technologies such as big data, AI (Artificial Intelligence), IoT (Internet of Things), process automation, etc.

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Meaning of market research in English

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• adverse publicity
• cross-selling
• customer relationship management
• demographics
• differentiator
• opinion mining
• trade dress
• unadvertised

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scientific methods of solving crimes, that involve examining objects or substances related to a crime

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What is marketing research? Definition and examples

Marketing Research involves systematically collecting data about consumers, rivals, and other entities. That data is analyzed to gain a better understanding of consumers’ needs and other features of the market. Marketing people then summarize the data and conclusions in a report. The report helps senior managers and business owners make informed decisions regarding future plans and strategies.

Effective marketing research also aids in identifying potential new markets or customer segments, allowing companies to expand their reach and diversify their customer base.

Moreover, marketing research continuously evolves to adapt to emerging trends and technologies, ensuring that businesses stay competitive in rapidly changing markets.

“Marketing research is the systematic gathering, recording, and analysis of qualitative and quantitative data about issues relating to marketing products and services. The goal is to identify and assess how changing elements of the marketing mix impacts customer behavior.”

Three main types of marketing research

Marketing research generally consists of three main types of research: 1. Market research . 2. Product researc h. 3. Consumer research .

Market research

You should not make important decisions regarding your products without carrying out market research first.

Market research is a study of the market, specifically who purchase a product, why they buy it, how competitors behave, and how something is sold.

It is an organized effort to gather and analyze data about target markets. The following quote comes from our article that defines market research:

“We often use the term with the same meaning as marketing research. However, marketing research concentrates on the marketing processes, while market research is about the market in general.”

Product research

Product research involves identifying a need or want and the characteristics of the product or service that will satisfy it. In other words, if consumers have a desire or want, what features or benefits of your product satisfies them and to what extent.

This type of research helps companies determine what consumers really want or need. They can then tailor their goods or services to match those consumer wants and needs.

According to mnbaskool.com:

“Product research is the marketing research that provides information on the desired characteristics of a product or service . Product research helps companies to understand what the customers really want, so that the product can be tailored to match the needs of the customer. This research can help to refine new product ideas.”

Consumer research

Consumer research is all about identifying consumer preferences, motivations, and purchasing behaviors. Specifically, the consumers that the company is focusing on; in other words, the target consumer.

Many marketing experts say that consumer research is part of market research. Marketers gather information through published sources, direct observation, face-to-face interviews, and mail surveys. Telephone interviews are also popular.

Who performs this type of research?

Some companies perform the research themselves while others hire third-party experts or consultants.

Hiring a consulting firm has both advantages and disadvantages. The main advantage is that consultants are marketing research experts. They probably have more experience and training than employees within the company.

The main disadvantage is that they may not understand some the products or services as well as company employees do. The same may also apply to customers and potential customers.

Compound phrases with ‘marketing research’

A compound phrase consists of two or more words. In business and marketing English, there are many compound phrases with the term ‘marketing research’ in them. Let’s have a look at the give most common ones:

Marketing Research Techniques

Refers to the specific methods and tools used in conducting marketing research. As in:

“The company employed various marketing research techniques, such as surveys and focus groups, to understand consumer preferences.”

Marketing Research Analysis

The process of examining and interpreting data collected through marketing research. For example:

“After conducting surveys, the marketing research analysis revealed a growing demand for eco-friendly products among consumers.”

Marketing Research Ethics

Principles and standards guiding the conduct of marketing research to ensure honesty, fairness, and responsibility. For instance:

“Adhering to marketing research ethics, the firm ensured all participant data was kept confidential and used solely for research purposes.”

Global Marketing Research

Research conducted to understand marketing dynamics, consumer behavior, and trends in international markets. As in:

“In their global marketing research, the company discovered significant cultural differences in consumer behavior across different regions, impacting their product strategy.”

Digital Marketing Research

Involves collecting and analyzing data related to digital marketing efforts, such as online consumer behavior, social media trends, and digital advertising effectiveness. For example:

“The digital marketing research showed that the company’s target audience predominantly engaged with their brand through social media platforms, leading to an increased focus on social media advertising.”

Vide – What is Marketing Research?

This video presentation, from our YouTube partner channel – Marketing Business Network , explains what a ‘Marketing Research’ is using simple and easy-to-understand language and examples.

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How To Do Market Research: Types and Templates (2024)

Want to do market research for your brand? Get the best templates and a step-by-step guide in this article.

Market research consists of systematically gathering data about people or companies—a market—and then analyzing it to better understand what that group needs. The results of market research are then used to help business owners make informed decisions about the company’s strategies, operations, and potential customer base.

Market research can help businesses run more efficiently and market more effectively. Ahead, you’ll learn how to do market research for your business, whether you’re breaking into a new market or developing a product .

What is market research?

Market research is the process of gathering data about people or companies and analyzing it to figure out what they’re looking for. Using market research, which is usually summarized in a report, you can make better decisions about your company’s strategy, operations, and potential customers. There are two main types of market research: primary and secondary.

Primary market research

Primary data is first-hand information you gather yourself, or with the help of a market research firm. You control it. Common ways to do primary market research include surveys, interviews, focus groups, and observations. 

Doing your own research has its benefits. You’ll learn exactly what customers want, because you’ve asked them directly. Information is fresh, and you can understand the nuances of your customers, like taste preferences or pricing.

Secondary market research

Secondary data is pre-existing public information, such as data shared in magazines and newspapers or government or industry reports. 

Say you’re a fashion brand expanding its product line to sustainable options, you’d use secondary research to understand market potential. You’d read market reports from Mintel or Nielsen Company to understand consumer demands for sustainable products.

Why is market research important?

Reduce risks for entering new markets.

Misjudging market demand for a new product leads to big financial losses. Market research lowers that risk by providing insights to inform your go-to-market plan, such as:

• Market size
• Income range
• Employment rate
• Market saturation

Gathering this information beforehand helps you understand opportunities and challenges for getting new customers. It also helps you understand emerging trends to stay competitive and identify new growth opportunities.

Understand the competition

A competitive analysis helps you understand the business landscape of a new market and uncovers gaps your business can fill. By analyzing your competitors’ offerings, marketing strategies, and customer feedback, you can create a plan to differentiate yourself in a crowded market. 

Make your business customer-centric

Market research reveals the needs, preferences, and behaviors of potential customers in a new market. For example, if you were expanding into South Korea, you’d want to take into account that shoppers value fast delivery times, readily available products, and the best price possible. 

Armed with this information, you’d want to create a seamless mobile shopping experience with quick load times and quick delivery to appeal to the local market. 

Types of market research

Surveys .

Surveys consist of a list of questions that can be shared with an individual by phone, in person, on a card or paper, or online using a survey software like SurveyMonkey or Qualtrics. 

Ask customers a series of questions to better understand how they feel about a product’s features, or about the experience they had. 

Focus groups

Bringing together groups of people with a common characteristic, such as age, hobby, or buying habits, to better understand their likes and dislikes is a focus group. 

Focus groups typically consist of eight to 12 people and a moderator who poses questions for the group to discuss. They are useful ways of getting feedback on a new product, new features, or new ad campaign.

Observation

When the researcher gathers information simply by watching how a subject interacts with a product, the technique is observation. This is often used in comparing preferences for several types of products.

In-depth interviews

Another market research technique is the one-on-one interview with an individual, during which probing questions are posed to better understand that person’s thoughts, opinions, challenges, and product preferences.

Secondary sources

Secondary research is often a good place to start when conducting market research to better understand industry trends and broader shifts. 

Some of the most useful sources include:

• Industry associations and trade groups
• Trade journals specific to your industry
• Government reports, such as the census or annual federal procurement results
• Industry analysts
• University faculty members 

You can also analyze competitor websites and materials to uncover what convinces potential customers to buy from them.

How to conduct market research

1. choose your focus.

Start by defining what you want to achieve from your research. You might want to:

• Understand a target audience
• Develop new product features
• Create a brand identity
• Improve customer experience

If you’re launching a new line of eco-friendly packaging, for example, your focus might be to understand customer attitudes toward sustainability. 

2. Determine your research methods 

Choose how you’ll capture the data based on your objectives and budget. Combine qualitative research (like interviews and focus groups) with quantitative data (like surveys) to understand attitudes and perceptions.

Maybe you’ll decide to conduct a focus group with environmentally conscious consumers to explore their feelings about packaging materials.

3. Collect the data

Depending on your research methods, you might need to prepare questionnaires, conduct interviews, or analyze data courses. You can conduct the process in-house or outsource it to a third party to help speed things along.

4. Analyze the data

Now it’s time to turn that raw data into insights. Identify any patterns or trends that answer your objectives. For example, you may analyze and identify the percentage of customers who prefer sustainable packaging over traditional options.

5. Report your findings

Prepare a report that includes key insights, data, and recommendations based on your findings. Go beyond stating the findings and explain what they mean for your business. What can you conclude about your market, audience, or product? 

For example, if your research finds high demand for eco-friendly packaging amongst the 25-to-34 demographic, you can conclude a targeted marketing campaign to this group could increase sales. 

Market research templates and guides

Behind every successful business is solid market research. But the hardest part is knowing where to start, and that’s where the following templates come in. These guides can help you stay on track and prepare for your market research process. 

• Shopify’s Market Research Competitor Analysis Template : Contains a free template to help you find your product market fit, so you can sell successfully right away. 
• HubSpot’s Market Research Kit : Contains an instructional guide, SWOT analysis template, focus group template, survey template, and more.
• Qualtrics XM : Qualtrics XM offers a collection of pre-made customer, product, and brand survey templates with a free account.

Online vs. offline marketing research

Online marketing research involves using digital platforms and tools to collect data from your audience. It includes surveys, polls, online focus groups, web analytics, and social media listening . 

The benefit of online research is that you can reach a wide audience quickly and at an affordable price. Because it’s done online, it’s convenient for both researchers and participants. However, online marketing research has some drawbacks, like low response rates and poor data quality. People may not give in-depth explanations or observations if they don’t sit in front of you.

In offline research, data is collected through in-person methods, such as interviews or observations. This allows researchers to examine people’s nonverbal cues and emotions in greater detail. However, offline research is expensive to conduct and analyze, and in-person methods may also limit sample size and diversity. 

How market research helps with competitive analysis

Knowing what your competitors are doing makes it easier to break into the market (or stay ahead of it). If you’re starting an ecommerce business , market research can help you:

• Identify industry trends
• Create a benchmark against competitors 
• Determine competitive pricing strategies
• Find gaps in the market

All these elements inform your competitive analysis, whether you’re developing a new product or entering a new market. In this way, you can uncover areas where competition is intense and gain leverage over your competitors.

Free competitor research template

Find a strategic angle to achieve sales success, uncover your product-market fit, and stand out from the competition with our free template.

Market research examples

Before launching a premium cocktail machine into a new category, the team at Bartesian had to identify a common problem: how hard it was to make great-tasting cocktails at home without any professional skill. 

It was a problem the founder, Ryan Close, struggled with himself, as he explains in a Shopify Masters interview . 

“I could never get [drinks] right, so I understood it was difficult to make great tasting cocktails at home if you’re not a bartender,” Ryan says. 

For his market research, Ryan carried a prototype of the machine around the country, getting in-person feedback. He’d go to trade shows and networking events to talk with people, ask about their pain points, and find out what they’d be willing to pay for his cocktail-making machine. These events helped give Ryan the market research needed to launch Bartesian. 

💡 Read more about how Ryan Close launched Bartesian

Beardbrand 

Beardbrand has become a popular men’s grooming brand since its launch in 2012. In 2023, it was estimated to have generated $25.7 million in revenue. Its founder, Eric Bandholz, took an informal approach to market research rooted in his personal experiences. 

He identified the potential for Beardbrand through several key insights:

• Observation: Noticing an increase in beards and mustaches, and a general interest in male grooming in urban areas, Eric recognized a growing trend that had yet to be fully capitalized on.
• Community engagement: By being an active member of the beard community and blogging about beard care and lifestyle, Eric immersed himself in the target market. This direct engagement provided him with firsthand insights into the needs and wants of his potential customers.
• Participation in events: Attending the 2012 West Coast Beard & Mustache Championships in Portland, Oregon, was a pivotal moment. It was here Eric realized the existence of a like-minded community that was underserved in terms of products and content tailored to their interests.
• Using social media for feedback and ideas: Eric leveraged social media platforms, especially Tumblr, to gather product ideas and gauge community interest. This approach allowed for immediate feedback and helped shape the product offering.

Before officially launching Beardbrand, Eric experimented with blogging about beard care products and engaging with the community. This phase acted as an informal market test, providing insights into the market’s receptivity to various products.

Abel Samet and Samuel Bail started Troubadour after unsuccessfully searching for a high-performing weekender bag. This personal experience highlighted a gap in the market for bags that were both aesthetically pleasing and functionally equivalent to sports gear—lightweight, waterproof, and comfortable.

They did market testing by initially offering their products to friends, family, and colleagues, which allowed them to gather valuable feedback. The brand continued to collect qualitative feedback from customers on their likes and dislikes about the bags, as well as quantitative data on sales and returns to understand needs and buying behavior. This allowed them to innovate and expand, taking calculated risks that paid off.

📚  Read: 10 Lessons Learned From Troubadour’s 10 Years in Business

Qualitative vs. quantitative market research

Qualitative and quantitative research are two fundamental approaches to doing market research. 

Qualitative research

Focuses on understanding concepts, thoughts, or experiences through subjective data. It explores the howand why of customers’ behaviors through open-ended questions and discussions. It can involve interviews, observations, and textual analysis to develop a more detailed understanding of the participant. 

Quantitative research

Rooted in quantifying a problem through numerical data, like statistics. You’ll normally use quantitative data to generalize results from a larger sample population. These include surveys, questionnaires, and experiments with fixed questions or conditions. 

Even though these two approaches are different, you can combine them to conduct a mixed methods study. This helps further validate your findings and get a better understanding of the issue at hand. 

Conduct your own market research today

Understanding industry shifts, changing consumer needs and preferences, and legislative trends, among other things, can shape where a business chooses to focus its efforts and resources. That’s the value of market research. Use the templates and market research techniques above to improve your process and grow your business. 

What is market research? FAQ

What are the 4 types of marketing research.

• Exploratory research
• Descriptive research
• Causal research
• Predictive research

What is an example of market research?

An example of market research would be a company conducting a survey to learn more about their target audience’s preferences and buying habits. They might ask questions about age, gender, income level, and what types of products they purchase. The research would then inform the company’s business and marketing strategy. 

How often should market research be conducted?

Businesses can conduct market research on an as-needed basis. If you are launching a new product or entering a new market, you’ll do market research to support the initiative. Some businesses do market research on an annual basis to stay competitive. 

What are the 4 main purposes of market research?

• Identifying and understanding the target market: Market research helps organizations better identify and understand their target market. It can provide insights into customer demographics, preferences, needs and motivations.
• Product/service development and innovation: Market research helps organizations identify and develop new products or services that meet the needs of their target market. It also helps them understand how new products or services can be positioned in the marketplace.
• Market entry and expansion: Market research helps organizations plan and execute successful market entry and expansion. It can help them identify target markets, assess market potential and evaluate the competitive landscape.
• Brand and reputation management: Market research helps organizations maintain and improve their brand and reputation. It can provide insights into customer perception and help organizations differentiate their brand from competitors.

How much does market research cost?

How much market research costs depends on the research method used. For example, face-to-face interviews are more expensive than phone interviews. The sample size required is also a factor. The larger your sample size, the more expensive it will cost. On average, you can expect to pay between $20,000 and $60,000 for a round of market research from a marketing research firm.

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Market Research Terms Glossary

Section 1: market research terminology, section 2: question & survey types, section 3: survey bias, section 4: pollfish features.

You can’t become a market research expert without learning the lingo. That’s why we created the Pollfish Market Research Terms Glossary.

This alphabetical listing of key market research terms, concepts and ideas has been segmented into four sections: Market Research Terminology, Survey Design & Question Types, Survey Bias and Pollfish Features.

For basic research concepts, check out the Market Research Terminology section. Survey Design & Question Types gives simple definitions of the different types of surveys and questions you can build with Pollfish. The Survey Bias section takes you through the ways you can bias your results. And the Pollfish Features section gives you definitions of Pollfish-specific tools and features so you’ll always know what’s going on.

Check it out!

The more you read about market research, the more surveys you build and the deeper you sink into the world of consumer insights, the more you translate the language surrounding it.

Here, we define some basic terms that you will need to have an understanding of to become a market research expert.

A    |    C    |    D    |    E    |    F    |    I    |    L    |    M    |    N    |    O    |    P    |    Q    |    R    |    S    |    T

Agile market research An approach that values numerous small experiments over a few large bets, rapid iterations over big-bang campaigns and responding to change over following a plan.

Complete A fully completed survey that has been screened for bias, insufficient responses and bots. Completion Rate The rate at which surveys are completed as compared to the number of surveys started by respondents. To calculate completion rate, divide the number of completes by the number of starts. Consumer Insights Valuable information on the preferences, opinions, habits and emotions of your most valuable customers. Consumer insights usually encompass insights related to a product or service. Control Group Survey participants can be split into two groups–an experimental group, exposed to a product or service, and a control group that is neutral. A common example is ad effectiveness testing, where researchers can track a respondent’s exposure to an ad through cookies. They then split those who have viewed the ad and those who have not into separate groups, asking the same questions to see how responses differ. Cost Per Complete The price you pay per completed survey. This calculation is based on certain factors of your survey, including the number of screening questions, quotas, demographic/geographic filtering and more. Learn More > Cross Tabulation (Crosstab) A feature of your survey platform that presents data in a table with rows and columns, designed to help researchers observe two or more variables at the same time. Crosstabs are useful when you want to divide your respondents into subgroups to see how a dependent variable changes the results.

Data Any information collected by your survey, along with any outside information collected, observed, generated or created in service of your research goals. Data Cleaning Removing unqualified, biased or incomplete responses from a survey. This process improves data quality and protects against survey bias. Learn More > Device ID An individually assigned ID given to a Respondent’s device to differentiate them from other respondents. Many survey platforms who deliver surveys via mobile devices will collect or create Device IDs. At Pollfish, these IDs are passed to us from the mobile app publishers where we deliver your survey. This ID, along with demographic information respondents give on their first survey, are collected and used for targeting and filtering purposes in the future. Learn More > DIY market research Market research conducted using a self-service platform, as opposed to partnering with a market research agency or research consultant. Most DIY market research is conducted in-house to avoid the speed and cost limitations of working with outside entities. Learn More > Drop-Offs When a respondent begins a survey and doesn’t complete it. These are also called Starts. Drop-offs are not counted as completes and, therefore, you will not be charged for them.

Engagement Engagement has many meanings. It can refer to a high degree of focus and interest in stimuli. In digital marketing and technology, engagement often refers to metrics surrounding use of platforms, content features or apps (think clicks, time on page, etc). In market research, engagement refers to how users interact with your survey. Does their time spent on each question indicate they are confused or don’t understand how to choose an answer? If so, your completion rate could be impacted.

Feasibility Study A feasibility study is designed to determine the likely success of a project, product or service. There are many factors that go into a feasibility study, including existing competitors, production limitations, timing, estimated pricing and more. Brands or researchers may conduct feasibility studies to determine the market interest in a new product or service, or even to help determine the feasibility of a future research project. Fielding Fielding refers to the distribution of the survey questionnaire. When using Pollfish, you can watch your results roll in in real time using our Results Dashboard.

Implicit data Implicit data refers to information that is not provided from respondents directly, but is gathered from available data. For example, Pollfish collects location data and information on a respondent’s mobile carrier from the App publisher, not from the respondent directly. Incidence Rate Incidence rate is the measure for the rate of occurrence or the percentage of persons eligible to participate in a survey, based on the targeting criteria selected.

Longitudinal Research Researchers performing a longitudinal study will run the same survey many times over short or long periods, in an effort to observe how the opinions, behaviors or habits of the same population change over time. The population can also be randomized to see how time impacts the questions being asked, regardless of population.

Margin of error Margin of error, also called the confidence interval, is a statistical measurement of difference between survey results and the population value, expressed as a percentage. Within the survey ecosystem, the margin of error measures the difference between your survey results and how accurately they reflect the views of the overall population. Learn More > Market research Market research refers to the gathering of consumers’ needs, preferences, habits, behaviors and more in an attempt to better understand a company’s potential customers, brand positioning and potential interest in a product or service. Mobile ID Also known as the Advertising ID, this unique ID number is how mobile advertisers are able to cookie users and keep track of engagement with mobile ads. At Pollfish, we use this id in a similar way, delivering surveys to users in much the same way an app delivers ads. We use the advertising ID to ensure we don’t send the same survey to the same user more than once. Learn More >

Non-Probability Sampling Non-probability sampling excludes some of the population in your sample, and that exact number can not be calculated – meaning there are limits on how much you can determine about the population from the sample. These methods include convenience sampling, quota sampling, judgement sampling and snowball sampling. Learn More >

Online panel Online panels collect responses either via a fully opt-in structure, including a signup page, or start with some form of digital outreach to potential respondents who have agreed to take surveys in advance. Panelists are then recruited to participate in specific surveys, for example via email invitation to the page of the panel provider. Pollfish avoids the pitfalls of traditional online panels by asking users to take surveys while they are using apps or games in real-time, increasing data quality and reducing biased responses. Learn More >

Panel A panel is a collection of potential respondents who have agreed to take a survey in advance of the survey’s fielding process. These respondents are typically promised some type of incentive in exchange for joining the panel, which would effectively pay them for their time. Learn More > Piping Piping allows researchers to personalize surveys by ‘piping’ an answer from a previous question into a later question. For example, you can ask a respondent their name or occupation on the first question, and then add that name or occupation to future questions to make the questions more personalized. Population The population is the total group of respondents who you attempted to survey. If they complete your survey, they become part of your sample. Primary Data Primary data refers to the data collected by researchers directly from respondents using surveys, interviews or direct observation. Primary research Primary research refers to the methodology of using only data collected directly from respondents, rather than relying on data collected during previous research or from some external source (government agencies, employment records, etc). Probability Sampling Probability sampling refers to a randomized method of respondent selection. In order to utilize probability sampling, researchers have to have a method that ensures every member of the population has an equal chance of being chosen to participate (like picking names out of a hat). Psychographic Unlike demographics, which explain who your respondents are, psychographics seek to explain why they do what they do. While any quantitative study, group of screening questions or even secondary location data can net you demographic data, psychographics are more often culled from qualitative studies. For example, is your respondent concerned with health and appearance? Do they enjoy socializing or are they more introverted? You can get answers to these questions from scale-based quantitative questions, but open-ended questioning or interviewing often provides more depth to these groupings. Depending on how you plan to use them, you should consider this before creating your survey. Learn More > Public Opinion Research Public opinion refers to the opinions of a majority of people in a certain population. Polling the public opinion requires taking as broad of a study as possible and asking direct, quantifiable questions about specific issues.

Qualification rate The qualification rate is the estimated percentage of people you expect to qualify for your survey based on your targeting criteria, screening questions and other filters. Qualitative research Qualitative survey questions aim to gather data that is not easily quantified such as attitudes, habits, and challenges. They are often used in an interview-style setting to observe behavioral cues that may help direct the questions. Learn More > Quantitative research Quantitative research is about collecting information that can be expressed numerically. Quantitative research is usually conducted through surveys or web analytics, often including large volumes of people to ensure trends are  statistically representative . Learn More > Questionnaire Your questionnaire is the list of questions you plan to ask your respondents. There are many different types of survey questions you can ask, depending on your survey goals. Learn More > Quota Quotas are limits you can set for the number of responses your survey collects from a particular group. They can be set across the entire survey or on a given question or segment. Unlike weighting, which ties your quotas to existing data sets like a national or local census, quotas can be chosen by the researcher to match the goals of your survey. If, for example, you’d like to survey a population that is 75% female, you can do that.

Respondent A respondent is a person who meets your targeting criteria and completes your survey in full. Response Rate The response rate is the percentage of the total targeted population who responded to your survey. Learn More >

Sample Your sample refers to the respondents who matched your targeting criteria and completed your survey. Sample size Your sample size is the number of completes your survey receives. Learn More > Secondary data Secondary data refers to data that has been collected outside of the bounds of a researcher’s survey, but which the researcher can use to add context. For example, DMV records, national census records and other government information can be used for things like weighting and quotas, or just to show the disparity between perception and reality within a studied population. Secondary research Secondary research refers to the summary or synthesis of existing research towards a new research goal. In this practice, previous primary research projects are used as sources. Segmentation Segmentation studies seek to separate larger audiences into smaller segments based on similar tastes, interests, perceptions and other secondary factors like education, employment or lifestyle. Statistical significance A measurement to quantify whether a result is just due to chance or due to some significant factor. Getting a survey that is not statistically significant comes from sampling error. That’s when your sample doesn’t accurately reflect the population of your survey and, therefore, may cause skewed results. There are two things to contend with when trying to remove sampling error: sample size and variation. The larger the sample size, the less chance there is in the result so that reduces sampling error and increases significance. Controlling for variability of your sample also can impact sampling error–the more variability in your sample, the more prone to error the study will be. Survey In its most basic form, a survey refers to the questionnaire–delivered either in person or online–that a researcher administers in service of a research study. When using Pollfish and other online survey platforms, a survey refers to the targeting you select, the questionnaire you create and the results files created once you run your survey. Each survey’s full info is grouped together in your account dashboard.

Targeting Targeting refers to the criteria you select to screen potential survey respondents. Once targeting is selected, a population is created and your survey is delivered. Tracking Study (Tracker) Tracking studies use the same questionnaire, delivered over time, to track brand awareness, monitor customer satisfaction, study consumer interest in new products or services, analyze the effectiveness of advertising creative and more. Tracking studies may be delivered to the same populations (to gauge how perceptions of the same group changes as time goes on) or different populations to view time as just one factor impacting shifting perceptions.

Section 2: Survey Design & Question Types

When creating your survey design, it is important to start with the type of survey you want to run. Understanding the small but significant differences between survey types is a great first step.

Here, we want to review the different types of studies you can run with Pollfish, as well as the ideal question types for each one.

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Ad Absorption A study designed to show the effectiveness of certain advertising creative. These studies tend to use narrow audience targeting screening questions and even control groups to determine if new ad creative is having statistically significant impact on user experience or understanding of a product, brand or service. Learn More > Attitude & Usage Testing A study that aims to understand the available market for a product or service. This typically involves things like market sizing, general understanding of the product category, questions understanding brand decisions, gathering targeting information and more. Audience Profiling Profiling is a process of collecting demographic information to define an audience or population. Researchers may need to conduct surveys of a population to determine if there are enough available survey takers for the demographic or other targeting they want to run. At Pollfish, we use a rolling profiling model to keep our audience up to date. We also collect most of the demographic data you will need up front, including demographic, gender and mobile usage data. Learn More > Audio question A question that requires the respondent to listen to an audio clip in full before answering.

Brand Awareness Brand awareness is the extent to which consumers are familiar with a brand, the extent to which the brand’s intended perception matches reality and the extent to which a company’s brand is helping or hurting sales.

Closed-ended question Closed ended questions are those that offer a limited selection of answers to choose from, such a single or multiple-selection question, matrix, or scaling question type. Learn More > Competitive Analysis Competitive analysis testing helps you better understand how your potential customers are discovering your competitor’s product, feature preferences, user behavior and more. Learn More > Concept Testing The process of testing a big idea, concept testing allows you to run ideas past a sample of your target market before producing them. These ideas can be new logos, new product ideas, new ad campaign ideas and more. Content Creation Surveys Conducting surveys can reveal gaps in news coverage that can help digital media brands develop a unique editorial voice. By surveying outside of existing readers to prospective readers and even competitive readers, digital media companies can gauge interest in, and existing knowledge of–certain topic areas. Learn More > Creative Testing A test allowing a creative team to gauge the effectiveness of their work at conveying the feelings and emotions they were aiming for. This includes logo testing, ad creative testing and more. Creative testing may ask questions about brand effectiveness, gauge tone and consumer enjoyment and gauge the likelihood of someone to purchase before and after viewing creative assets.

Description question A question in your questionnaire that contains a basic description. This question type is usually used to provide directions to the respondent. Learn More >

Image question A survey question requiring respondents to look at and respond to an image or a group of images.

Likert Scale A Likert Scale is typically a 5 or 7 point scale that asks a respondent to express how much they agree or disagree with a statement. Learn More > Logo Testing A type of creative testing focused on changes, updates or just current opinions of a brand or product logo. This type of survey may contain questions gauging how appealing, authoritative or on-brand a logo is, or even reveal possible changes to a brand logo and ask potential customers to weigh in. Learn More >

Market Analysis Studies that focus on the size, scope and potential of a market. Before launching a new product, companies may want to figure out the size of the potential market by broadly surveying interest for that product across key areas and demographic groups. This helps companies determine how large a product rollout may be needed. Matrix multiple selection question A matrix question asks respondents to make selections for multiple options on a scale. A matrix multiple selection question lets you select multiple responses for a single option. For example, a matrix may contain elements of a hotel, asking respondents to rate elements like the pool or the lobby bar using a variety of potential responses like “Clean” or “Fun.” A multiple selection matrix will allow you to check all descriptions that apply. Learn More > Matrix single selection question A matrix single selection question will ask you to select one answer per option on a scale. For example, a matrix may contain elements of a hotel, asking respondents to rate elements like the pool or the lobby bar using a variety of potential responses. Because responses are single-selection, researchers will often ask something more definitive, like “How likely were you to use these different elements of our hotel?” And ask for a scale of 1-5. Learn More > Multiple selection question Multiple selection questions contain a list of options and ask respondents to select all that apply. For example, the question “what kind of music do you like?” will contain a list of music types so respondents can select all types they prefer. Learn More >

Naming Tests Studies concerning the names of things–new product names, new website URLs, new brand names or even the name of a new film or TV show–naming tests help reveal potential perception issues that can occur. For example, does one title effectively convey what the product or service is? Does the name defy expectations and surprise the user? Net Promoter Score (NPS) Net Promoter Score is a widely used customer/consumer experience test that asks a simple question: on a scale of 1-10, how likely are you to recommend this business, brand, product or service to a friend or colleague? Respondents who rate 0-6 are detractors, 7-8 are considered passive and 9-10 are considered promoters. Learn More > NPS Survey An NPS Survey asks the Net Promoter Score question to a specified target population. This allows companies to gauge how well they are doing on the NPS scale with their specific target customer or potential customer. Learn More > Numeric open-ended question An open-ended question that requires a numeric answer. For example, researchers may ask how much money you’d potentially pay for a product or service. Learn More >

Open-ended question Open-ended questions do not require the respondent to select from a specific list of responses, but instead asks them to type their response into a text box. Open-ended questions, therefore, are less definitive, seeking to gather more qualitative responses, getting at the feelings and broader opinions from the respondent in their own words. Learn More >

Package Testing Studies that provide consumer feedback on product packaging. Would you be more or less likely to buy a product with new packaging? Does the packaging effectively convey what is inside? How do your potential customers feel when they look at your new packaging? Pre/Post Studies A pre-post study examines whether participants in an intervention improve or become worse off during the course of the intervention, and then attributes any such improvement or deterioration to the intervention. Product / Market Fit Product/Market fit is a the degree to which a particular product meets the demands of the market it is in. Have you created the minimum viable product for your market, that solves a problem or need that exists? Product/Market fit studies aim to survey early adopters or potential customers to see if the product meets previously identified criteria for satisfaction within a market. Product Testing A final test of a product, product testing gives users access to a prototype and seeks to identify opinions–positive or negative–of a product before it goes to market.

Qualitative survey question Qualitative research focuses on personalized behavior, such as habits or motivations behind their decisions. This can be gathered through contextual inquiries or interviews to learn more about feelings, attitudes, and habits that are harder to quantify but offer important additional context to support statistical data. Learn More > Quantitative survey question Quantitative survey questions are those that can be expressed numerically, meaning they require respondents to select from a pre-selected list of potential responses. Learn More >

Ranking question Similar to a single-selection matrix, ranking questions ask users to rank different elements of a product or service on a numerical scale. Learn More > Rating stars A question where respondents answer using a scale of a number of stars. Learn More >

Screening question Screening questions help researchers ensure they are getting the exact sample they want using filtering that falls outside of available targeting criteria. For example, if you only want to include people in your survey who have seen the movie Pulp Fiction, your screening question would ask potential respondents if they have seen the film, and screen them based on their answers. Learn More > Single selection question A question providing a list of potential responses, from which respondents may choose one answer. Learn More > Slider question A question where respondents answer by dragging a button across a slider to provide a rating. Learn More >

Usability Testing Usability testing aims to test user experience changes on real users to determine if the experience has been positively or negatively impacted by any changes. Unlike more traditional product testing, usability testing usually focuses more on design changes and more commonly relates to app or software development. UX Testing Any testing related to the overall user experience of a product (usually app or software). UX testing tends to be more holistic than Usability testing, running qualitative and quantitative studies of each phase of the user journey.

Video question A question where respondents much watch a video in its entirety before answering.

One of the most important factors in DIY survey creation is avoiding bias. Survey bias reduces data quality, threatening the integrity of your consumer insights.

We have gone in-depth on ways to root out survey bias here. But to fully understand the different types of bias you may have to contend with, here are some helpful definitions.

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Acquiescence Bias Also referred to as “yea-saying,” Acquiescence bias occurs when respondents are overly agreeable, to the point of contradicting themselves. You can avoid this by limiting the number of questions asking respondents to simply agree or disagree, as these statements often result in over-agreement. Learn More > Alternators Alternators are survey takers that fill in responses in familiar patterns, simply alternating responses but not engaging with the questions. You can avoid this by mixing in some open-ended, audio or video questions. If responses appear to be biased, Pollfish will remove them from your sample. Learn More >

Double-Barreled Questions Double-barrelled questions happen when researchers blend two questions into one, and then allow for only one answer. The respondent must agree in total with a statement they may only partially believe, creating incomplete or biased responses. For example, “Did you find the product interesting and helpful? Yes or no?” Learn More >

Extreme Responding If given the option, some respondents will select only the most extreme option. Make sure to mix up your question types. If you have several scales or rating questions, make sure to mix in some others that require a bit more attention. Learn More >

Leading Question Leading questions use biased language to influence respondents in a direction. Keep questions as simple and direct as possible, taking care to remove any editorializing adjectives that may betray a preference towards one response or another. Learn More > Loaded Question Loaded questions make assumptions. For example, asking “what kind of candy do you get when you go to the movies?” assumes the respondent goes to the movies, eats candy and gets candy at the movies. This creates a biased environment where the respondent may not be able to answer accurately. Learn More >

Order Bias The order you list question responses in a quantitative survey question can bias respondents towards choices higher on the list. If your survey platform has the ability, use answer shuffling to remove the potential for this bias. Learn More >

Prestige Question Inserting prestige into a question by citing an expert opinion one way or another biases the respondent towards the expert’s opinion. For example, “Doctors say smoking causes cancer. Do you agree?” or “Do you support the President’s policy on Zimbabwe?” Learn More >

Self-Selection Bias This occurs when respondents are allowed, through whatever means, to opt out of taking a survey based on its content. This biases the results by oversampling people with a previous interest or overly polarized opinion on a given topic. Learn More > Social Desirability Bias This occurs when respondents will attempt to discern what the researchers want them to say and respond accordingly. This often occurs when participants see the brand or topic ahead of time and try to give answers the company or researcher may want to hear. Avoid exposing this information, or asking any leading or loaded questions that may betray an interest. Learn More > Speeders Respondents who complete surveys far too fast to have actually read the questions or truly contemplated answers. Pollfish removes these respondents through AI and machine learning algorithms. Learn More > Stereotype Question When researchers infuse bias into survey questions, they open the potential for respondents to agree with or defy that bias. If, for example, a survey question reminds respondents that gender stereotypes exist around math, that question may have planted a seed in the mind of respondents that changes responses. Avoid this type of language at all costs. Learn More > Straight-Liners When respondents answer using the first available choice for every question. Respondents answering in familiar patterns in order to complete surveys faster will be removed from the Pollfish sample. Learn More >

Sometimes, we get so excited about the features of Pollfish, we forget to define them all for you!

So we decided to explain them all in one place. Feel free to bookmark this section so you can return to it as you read through resources.pollfish.com.

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Advanced branching Also known as skip logic, advanced branching allows you to show respondents different questions based on responses to earlier questions. For example, if a respondent says they have tried your product, you can show them one set of questions and if they have not, you can show them different questions. Branching provides an alternative to screening questions. Learn More > App Monetization App monetization refers to the method or methods app publishers use to make money on their apps. There are a variety of app monetization strategies and platforms. Pollfish provides a way for app publishers to immediately monetize their creations by installing the Pollfish SDK and exposing their user base to Pollfish surveys. Learn More >

Programmatic Advertising Programmatic advertising refers to the automated buying and selling of online advertising. Pollfish functions on a programmatic advertising model, delivering surveys in much the same way advertisers deliver ads in apps. Learn More >

Quotas If a survey must meet a set percentage of participants from an age or gender group, you can set quotas.

Radius Targeting When setting geographic targeting on your Pollfish survey, you can select a city, congressional district or town. You can also use our Radius Targeting tool to select a specific radius on a map to target your survey. Learn More >

Skip Logic Also known as Branching, skip logic allows you to show respondents different questions based on responses to earlier questions. For example, if a respondent says they have tried your product, you can show them one set of questions and if they have not, you can show them different questions. Skip logic provides an alternative to screening questions. Learn More > Survey Stratification Stratified sampling involves dividing a population into smaller sub-populations called strata. There are many ways of accomplishing this, including balancing using predetermined quotas before you run your survey, or weighting your results after the fact. Learn More >

Weighting A type of stratification where quotas–often pegged to pre-existing data like a local or national census–are used to weight respondent pools to more accurately reflect the population being surveyed. With Pollfish, you can weight your survey results to the local or national census (where available) with the push of a button. Learn More >

Do you want to distribute your survey? Pollfish offers you access to millions of targeted consumers to get survey responses from $0.95 per complete. Launch your survey today.

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The A-Z of Market Research - Your Ultimate Glossary

This A-Z glossary is a  reference tool for professionals in the market research industry. It encompasses an array of commonly used terms and concepts that are integral to effective market research practices. Covering everything from fundamental methodologies to specialized techniques, this glossary provides definitions that clarify the jargon often found in the field. Whether you are an experienced researcher, new to the industry, or a client aiming to enhance your understanding of research reports, this resource helps you to quickly access key market research terminology. Dive in and leverage this knowledge to elevate your expertise and drive impactful insights.

A/B Testing

A method of comparing two versions of a webpage or app against each other to determine which one performs better. It involves randomly showing the two variants (A and B) to users and analyzing which one drives more conversions. Read more about AB testing on HBR .

Access panels

A database of individuals who have agreed to be available for surveys of varying types and topics. They are used to save time and money in recruiting respondents for market research.

Accompanied shopping

A specialized type of individual depth interview where respondents are interviewed while they shop in a retail store. It combines observation with detailed questioning.

Alternative hypothesis

The hypothesis in statistical testing where some difference or effect is expected. It's the opposite of the null hypothesis.

Ambiguous question

An ambiguous question in market research is a poorly constructed query that lacks clarity and precision, allowing for multiple interpretations by respondents. These questions can lead to confusion and inconsistent answers, as different individuals may understand and respond to the question in varying ways. This ambiguity often stems from vague language, lack of context, or the inclusion of multiple concepts within a single question. As a result, ambiguous questions can compromise the reliability and validity of research data, potentially leading to misguided conclusions and decisions. Researchers must strive to craft clear, specific questions to ensure accurate and meaningful responses that truly reflect the opinions and experiences of their target audience.

A type of stimulus material where key frames for a television advertisement are drawn or computer generated with an accompanying soundtrack. They are used to test advertisement concepts before full production.

Annotation method

An approach to analyze qualitative data using codes or comments on transcripts to categorize points made by respondents.

ANOVA (Analysis of Variance)

A statistical test for the differences among the means of two or more variables. It's commonly used to compare multiple groups in experimental designs. Read more about ANOVA at Oxford University .

Area sampling

A type of cluster sampling where clusters are created based on the geographic location of the population of interest.

Artificial Intelligence (AI)

The use of computer algorithms and systems to simulate human intelligence and perform tasks such as data analysis or decision making. In market research, AI is increasingly used for data processing and analysis. Find out more about what AI is here .

Audience's thinking sequence

The sequence of thoughts that people go through when they are being communicated with. Understanding this helps in crafting effective marketing messages.

An examination and verification of the movement and sale of a product. There are three main types: wholesale audits, retail audits, and home audits.

A chart that uses a series of bars positioned horizontally or vertically to represent the values of various items. It's a common way to visually represent data in market research reports.

In market research, particularly when dealing with cross tabulations, the base refers to the total number of respondents or observations that form the foundation for calculating percentages or other statistical measures. It represents the entire sample or a specific subset of the sample for which data is being analyzed. The base is crucial for understanding the context and significance of reported percentages, as it indicates the size of the group from which conclusions are drawn. For instance, if a survey reports that 60% of respondents prefer a certain product, the base tells us how many people that percentage represents, allowing for more accurate interpretation of the data's reliability and representativeness.

Bayes' theorem

A mathematical formula that provides a way to update the probability of an event based on new information. In market research, it's used to estimate the likelihood of a target audience having certain characteristics.

Read more about Bayes rule in perception, action and cognition with Cambridge University's Machine Learning Group

Behavioural science

An interdisciplinary field applying theories and techniques mainly from psychology to uncover what consumers value and provide solutions to pricing, choice architecture, perceptions, and behaviors.

A term describing the significant volume and variety of data available to organizations and the increased frequency in which they are generated. It's increasingly important in market research for uncovering insights.

The use of physiological or behavioral characteristics to identify and verify a person's identity. In market research, it's used to authenticate survey respondents and measure physical responses to stimuli.

An abbreviated title for the term web log, meaning a frequent, chronological publication of personal thoughts and ideas. In market research, blogs can be a source of consumer insights.

Brand Equity Modelling

The creation of a Brand Equity measure and any Key Driver analysis to determine what drives Brand Equity. It helps in understanding and quantifying a brand's strength.

Let’s explore how well a brand's product qualities match what consumers truly desire. Understanding this alignment is key to optimizing your brand's positioning. Here are a few points to consider:

• What does your audience value? Discover the qualities that resonate with them.
• How do you measure this alignment? Use insights to refine your approach.
• Empower your brand strategy! When you align with customer desires, you create a stronger connection.

By focusing on these aspects, you’ll not only enhance your brand's appeal but also engage your audience in a meaningful way. 

Brand mapping

A projective technique involving presenting competing brand names to respondents and getting them to group them into categories based on certain dimensions. It helps understand brand perceptions and positioning.

Brand personalities

A projective technique where respondents imagine a brand as a person and describe their looks, clothes, lifestyles, etc. It helps understand brand perceptions and associations.

Brand Price Trade Off

A technique for establishing brand and price preferences by presenting respondents with branded products at various price points. It helps in understanding price sensitivity and brand loyalty.

Canonical Correlations

A statistical technique used to identify how much one set of independent variables drives another set of dependent variables. It's particularly useful when there are multiple dependent variables or categorical variables.

CAPI (Computer Assisted Personal Interviewing)

A method where laptop computers, tablets, or mobile devices are used instead of paper-based questionnaires for face-to-face interviewing. It allows for more complex questionnaires and immediate data entry.

Discover a powerful market research method designed specifically for the automotive industry! This approach helps gather valuable insights about consumer preferences and pinpoint potential issues with a vehicle before it hits the production line. Here’s how it works:.

• Participants engage with a pre-production or prototype vehicle.
• They share their thoughts and feedback, enabling manufacturers to make informed decisions.

This collaborative process empowers users and ensures that their voices shape the final product. 

Cartoon completion

A projective technique which involves a cartoon that the respondent has to complete. It's used to uncover underlying attitudes or perceptions.

CATI (Computer Assisted Telephone Interviewing)

A telephone interviewing method where interviewers input respondents' answers directly into a computer-based questionnaire. It allows for complex routing and immediate data entry.

CATS (Completely Automated Telephone Surveys)

Telephone interviews that use interactive voice technology and require no human interviewer. Respondents answer closed-ended questions using their touch-tone telephone.

Causal research

Research that examines whether one variable causes or determines the value of another variable. It's used to understand cause-and-effect relationships in marketing phenomena.

CAWI (Computer Assisted Web Interviewing)

Also known as online interviewing, CAWI involves respondents filling in a self-completion questionnaire delivered via the internet. It allows for complex routing and multimedia stimuli.

Research which involves collecting data from every member of the population of interest. It's typically used when the population is small or when complete data is required.

CHAID (CHi Squared Automatic Interaction Detection)

A type of decision tree technique based on significance testing. It's used to create rules to classify future respondents into identified groups or detect interrelationships between different questions.

Web-based platforms that can be used for online focus groups where individuals are recruited to discuss a subject online, usually using text. They allow for real-time qualitative research with geographically dispersed participants.

Chatbot survey

A traditional survey presented to the respondent in the form of an online conversation. Instead of answering static questions, respondents engage in a conversational exchange or chat.

A statistical test which tests the 'goodness of fit' between the observed distribution and the expected distribution of a variable. It's commonly used to analyze the relationship between categorical variables.

Choice Based Conjoint

A specific type of conjoint analysis where respondents are asked to make choices between different sets of products/services to derive the overall appeal of each component part. It's used to understand consumer preferences and trade-offs.

Closed question

A closed question in market research is a type of survey question that limits respondents to choosing from a predetermined set of answer options. Unlike open-ended questions, closed questions do not allow for free-form responses. They typically come in two main forms: dichotomous questions, which offer only two possible answers (e.g. yes/no, true/false), and multiple-choice questions, which provide several options to choose from. Closed questions are valued for their ability to generate easily quantifiable data, simplify the analysis process, and reduce the time and effort required from respondents. However, they may also limit the depth of insights by constraining respondents to predefined choices, potentially missing nuanced or unexpected responses that could be captured by open-ended questions.

Cluster analysis

A statistical technique used to group similar objects or individuals. In market research, it's often used for market segmentation, grouping consumers with similar characteristics or behaviors.

Cluster sampling

A probability sampling approach in which clusters of population units are selected at random and then all or some of the units in the chosen clusters are studied. It's often used when it's impractical or expensive to sample from a widely dispersed population.

The procedures involved in translating responses into a form that is ready for analysis. It typically involves assigning numerical codes to responses, especially for open-ended questions.

Coefficient alpha

See Cronbach alpha.

Coefficient of determination

A measure of the strength of linear relationship between a dependent variable and independent variables. It indicates how much of the variance in the dependent variable is predictable from the independent variable(s).

Concept boards

Introducing a dynamic tool for gathering valuable insights: stimulus materials! These boards showcase various product, advertising, and packaging designs, helping you collect feedback on exciting new products or campaigns. Here’s what you need to know:

• What are they? A set of boards that illustrate different designs.
• Why use them? To engage your audience and gather their thoughts on potential innovations.
• How they help: Empower you to make informed decisions based on real feedback.

We’re here to foster collaboration and curiosity—let’s explore new ideas together! What designs resonate with you? We’d love to hear your thoughts!

Confidence level

The probability that the true population value will be within a particular range (result +/– sampling error). It's typically set at 95% in market research studies.

Conjoint analysis

A statistical technique to understand what combination of a limited number of attributes is most influential in the consumer's decision-making process. It's often used in product development and pricing research.

Constant sum scales

A scaling approach which requires the respondent to divide a given number of points, usually 100, among a number of attributes based on their importance to the individual. It forces respondents to make trade-offs between attributes.

Construct validity

An analysis of the underlying theories and past research that supports the inclusion of various items in a scale. It's most commonly considered in two forms: convergent validity and discriminant validity.

Content analysis

The analysis of any form of communication, whether it's advertisements, newspaper articles, television programmes, or taped conversations. It's frequently used for the analysis of qualitative research data.

Content analysis software

Software used for qualitative research which counts the number of times that pre-specified words or phrases appear in text. It's used to analyze large volumes of textual data efficiently.

Content validity

A subjective yet systematic assessment of how well a rating scale measures a topic of interest. For example, a group of subject experts may be asked to comment on the extent to which all of the key dimensions of a topic have been included.

Continuous research

See Longitudinal research.

Contrived observation

A research approach which involves observing participants in a controlled setting. It allows researchers to manipulate variables and observe their effects on behavior.

Convenience sampling

Convenience sampling is a non-probability sampling method in market research where participants are selected based on their accessibility and willingness to participate, rather than through random selection. This approach involves choosing readily available individuals or groups that are easy for the researcher to reach, such as passersby in a shopping mall, students on a university campus, or online volunteers. While convenience sampling offers advantages in terms of speed, cost-effectiveness, and ease of implementation, it comes with significant limitations. The primary drawback is the potential for bias and lack of representativeness, as the sample may not accurately reflect the characteristics of the broader target population. This can lead to skewed results and limit the generalizability of the research findings, making it less suitable for studies requiring high levels of accuracy or those aiming to make broad inferences about a population.

Convergent validity

A measure of the extent to which the results from a rating scale correlate with those from other scales or measures of the same topic/construct. It's used to assess the validity of measurement scales.

Text files placed on a user's computer by web retailers in order to identify the user when they next visit the website. In market research, they can be used to track online behavior.

Correlation

Let’s dive into a statistical approach that helps us explore the relationship between two variables! Here’s what you need to know:

• Understanding relationships : This method uses an index to clearly describe both the strength and direction of the relationship between variables.
• Empower your insights : By examining these connections, you can gain valuable insights into how different factors interact.

Isn’t it exciting to uncover these relationships? Feel free to share your thoughts or questions!

Cost per complete (CPC)

A common term in quantitative research for the price paid per completed survey. This calculation usually includes the cost of the sample, fielding costs, and the cost of using the survey software.

Critical path method (CPM)

A managerial tool used for scheduling a research project. It's a network approach that involves dividing the research project into its various components and estimating the time required to complete each component activity.

Cronbach Alpha

Cronbach's Alpha , also known as coefficient alpha, is a widely used statistical measure in market research to assess the internal consistency reliability of a multi-item scale. It quantifies how closely related a set of items are as a group, typically in questionnaires or surveys where multiple questions aim to measure the same underlying construct. The coefficient ranges from 0 to 1, with higher values indicating greater internal consistency. Generally, an alpha of 0.7 or higher is considered acceptable in most research scenarios, though this can vary depending on the field and purpose of the study. Cronbach's Alpha is particularly valuable in developing and validating measurement scales for concepts like customer satisfaction, brand loyalty, or employee engagement. It helps researchers ensure that the items in their scale are measuring the same concept consistently, thus improving the overall reliability and validity of their research instruments.

Cross tabulation (crosstab)

A technique used to analyze and compare the relationship between two or more variables. It involves creating a table that shows the distribution of one variable across the different categories of another variable.

Cross sectional research

Research studies that are undertaken once, involving data collection at a single point in time, providing a 'snapshot' of the specific situation. It's the opposite of longitudinal research.

Customer database

A manual or computerized source of data relevant to marketing decision making about an organization's customers. It's a valuable resource for customer relationship management and targeted marketing efforts.

Customer Lifetime Value (CLV)

A prediction of the net profit attributed to the entire future relationship with a customer. It's used to determine how much to invest in acquiring or retaining a customer.

CX (Customer Experience)

Refers to how customers feel or perceive all aspects (touchpoints) when they buy goods or services or interact with a business. It's crucial for understanding and improving customer satisfaction and loyalty.

Data analysis errors

Non-sampling errors that occur when data is transferred from questionnaires to computers by incorrect keying of information. They can be minimized through data cleaning and validation processes.

Data cleaning

To ensure data quality before analysis, it's essential to conduct computerized checks on your data. This friendly process helps you:

• Identify inconsistencies
• Detect any unexplained missing responses

Taking this crucial step empowers you to work with reliable information and make informed decisions. Let's embrace good data practices together! 

Data conversion

The reworking of secondary data into a format that allows estimates to be made to meet the researcher's needs. It's often necessary when using data from different sources or time periods.

Data fusion

The process of combining multiple data sources into a single, comprehensive representation of information. In market research, it's used to gain a more complete understanding of consumer behavior and market trends.

Refers to the type of data to be analyzed in a hierarchical survey. For example, in a healthcare study, analysis could be based at the doctor, patient, or therapy level.

Data mining

The process of discovering patterns and knowledge from large amounts of data using techniques such as statistical analysis and machine learning. It's used to extract useful insights and make data-driven decisions.

Data validation

The verification of the appropriateness of the explanations and interpretations drawn from qualitative data analysis. It's crucial for ensuring the credibility and trustworthiness of qualitative research findings.

Degrees of freedom (d.f.)

The number of observations (i.e., sample size) minus one. It's used in various statistical calculations and tests.

Depth interview

Descriptive statistics.

Statistics that help to summarize the characteristics of large sets of data using only a few numbers. The most commonly used are measures of central tendency and measures of dispersion.

Desk research

See Secondary research.

A continuous measurement tool used to gather feedback from participants when watching or listening to content media. Participants indicate their continuous level of agreement/like or disagreement/dislike with the content being presented.

Dichotomous questions

Dichotomous questions are survey or interview questions that offer only two possible response options, typically "Yes" or "No". While these questions are easy for respondents to answer, they yield limited information due to their binary nature.

Discrete Choice Modeling

A statistical technique used to predict a choice from a set of two or more alternatives. It's often used in market research to understand consumer preferences and decision-making processes.

Discriminant analysis

A statistical technique that uses responses to a set of questions to predict existing group membership. The output can then be used to classify future respondents into the same groups.

Discriminant validity

A measure of the extent to which the results from a rating scale do not correlate with other scales from which one would expect it to differ. It's used to assess the validity of measurement scales.

Discussion guide

Used to structure and direct focus groups or depth interviews with participants. It serves as a guide for the facilitator or interviewer, providing questions, topics, and prompts to cover during the discussion.

Disproportionate stratified random sampling

A form of stratified random sampling where the units or potential respondents from each population set are selected according to the relative variability of the units within each subset.

Do-It-Yourself (DIY) research

DIY research refers to market research methods that can be conducted independently, without professional assistance. This approach is generally more cost effective and faster than traditional market research techniques.

Double opt-in (DOI)

Refers to a person who has agreed to join a research panel and has confirmed their agreement through a two-step verification process. It helps ensure explicit consent and accurate contact information.

Double-barrelled question

A badly constructed question where two topics are raised within one question. It should be avoided as it can lead to confusion and inaccurate responses.

Doughnut chart

A form of pie chart which allows different sets of data (e.g., for different years) to be shown in the same chart. It's useful for comparing proportional data across categories.

Emotion recognition

The use of AI algorithms to detect and interpret human emotions, often through analysis of facial expressions, voice, or text. It's used in market research to understand emotional responses to products or advertisements.

Ethnography

A research method used for investigating cultural practices, rituals, consumer behavior, routines, and social norms. It helps unearth previously unseen opportunities by looking at people's worlds in an authentic way.

Eye tracking

A method of measuring and analyzing where and how people look at visual information. In market research, it's used to understand how people interact with visual stimuli like advertisements or product packaging.

Face to face survey

Research which involves meeting respondents in person and interviewing them using a paper-based questionnaire, a laptop computer, tablet, or mobile device. It allows for more complex questions and use of visual aids.

Facial tracking

A method of measuring and analyzing facial expressions and movements. In market research, it's used to understand emotional responses to advertising, products, and other stimuli.

Factor Analysis

A statistical technique to examine the similarities between items in order to identify a more concise summary of themes. It's often used for data reduction or to identify underlying constructs.

Focus group

A qualitative research method used to gather data through group discussions. Participants are brought together in a moderated setting to discuss a specific topic, product, or service.

Frequency distributions

See Holecounts.

Funnel sequence

A method for ordering questions in a questionnaire that starts with broad, general topics and gradually narrows down to more specific, detailed questions. This approach helps ease respondents into the survey, building rapport and context before addressing more complex or sensitive issues, potentially improving the quality and depth of responses.

The funnel sequence is a common and effective technique in questionnaire design, particularly useful for in-depth interviews and complex surveys.

Gabor Granger

A pricing technique used to understand price elasticity for set products. Respondents are asked how likely they are to purchase a product at different price points, allowing researchers to establish optimal pricing.

Galvanic Skin Response (GSR)

A method of measuring changes in the electrical conductance of the skin, which can indicate changes in emotional arousal. In market research, it's used to understand emotional reactions to stimuli.

Gamification

The process of adding game-like elements to a research activity to engage participants and collect data in a more interactive way. It can lead to better quality data by making surveys more engaging and fun.

GANTT chart

A managerial tool used for scheduling a research project. It's a form of flowchart that provides a schematic representation incorporating the activity, time, and personnel requirements for a given research project.

Geo-fencing in market research

The use of GPS or RFID technology to define a geographic boundary, then trigger a response when a mobile device enters or leaves the area. It's used in location-based market research and mobile surveys.

Geodemographic profiling

A profiling method which uses postal addresses to categorize different neighborhoods in relation to buying power and behavior. It's useful for targeted marketing and location-based strategies.

Grounded theory

Grounded Theory is a systematic methodological approach to qualitative research, particularly valuable in market research when exploring new or poorly understood phenomena. Unlike traditional research methods that begin with a hypothesis, Grounded Theory starts with data collection and analysis, allowing theories to emerge from the data itself. Researchers using this method gather information through various qualitative techniques such as interviews, focus groups, or observations, and then analyze this data through a process of coding and constant comparison. As patterns and concepts emerge, researchers develop theories that are "grounded" in the actual experiences and perspectives of the participants. This approach is especially useful in uncovering consumer motivations, decision-making processes, or market trends that may not be apparent through conventional research methods. While more time-consuming and complex than some other research techniques, Grounded Theory can provide deep, nuanced insights that lead to innovative marketing strategies or product development ideas.

Group depth interviews

See Focus group.

Group moderator

The interviewer responsible for the management and encouragement of participants in a group discussion. They play a crucial role in facilitating productive discussions and ensuring all participants contribute.

Research undertaken in a central hall or venue commonly used to test respondents' initial reactions to a product, package, or concept. It's also known as a Central Location Test (CLT).

A graphical representation of data where values are depicted by color. In market research, they're often used to show where people click on websites or focus their attention in visual stimuli.

Holecounts refer to the number of respondents who selected each possible answer for each question in a survey. This concept is also known as frequency distributions or topline numbers, providing a basic summary of how responses are distributed across answer options.

An assumption or proposition that a researcher puts forward about some characteristic of the population being investigated. It's tested through research to determine if it's supported or refuted.

IDI (InDepth Interview)

A qualitative research method using a relatively open, discovery-oriented approach to obtain detailed information about a topic from a participant. It allows for deep exploration of individual perspectives and experiences.

IHUT (In Home Usage Test)

A market research method that allows consumers to test products in their own homes. Participants are given a product to use and are asked to provide feedback on its features, benefits, and overall satisfaction.

Impact indices

Measure the impact any independent variable has on changing a dependent variable. Often used when the independent variables are binary, it can evaluate the impact of different product qualities on preference.

Implicit Association Test (IAT)

A psychological measurement technique used to uncover unconscious biases. It measures a respondent's automatic associations between mental representations of objects in memory and evaluations, attitudes, or stereotypes.

Implicit assumption

A badly constructed question where the researcher and the respondent are using different frames of reference as a result of assumptions that both parties make about the question being asked.

Independent samples

Samples in which the measurement of the variable of interest in one sample has no effect on the measurement of the variable in the other sample. It's important for certain statistical tests.

Internal data

Secondary data sourced from within the organization that is requiring the research to be conducted. It can include sales data, customer records, and previous research findings.

Interquartile range

A measure of dispersion that calculates the difference between the 75th and 25th percentile in a set of data. It's useful for understanding the spread of the middle 50% of the data.

Interval data

Similar to ordinal data with the added dimension that the intervals between the values on a scale are equal. However, the ratios between different values on the scale are not valid.

Interviewer bias

Bias and errors in research findings can significantly impact results, stemming from the actions of the interviewer. Factors such as the selection of interview subjects, the methodology employed during the interview process, and the precision in recording responses can all influence the integrity of the data. It's crucial to understand these elements to ensure reliable outcomes in research.

Interviewer Quality Control Scheme (IQCS)

A quality control scheme for interviewers in the UK. The scheme is aimed at improving selection, training, and supervision of interviewers.

Judgement sampling

A non-probability sampling procedure where a researcher consciously selects a sample that he or she considers to be most appropriate for the research study. It relies on the researcher's expertise but may introduce bias.

Key Driver Analysis

The analysis of the relationship between a dependent variable and one or more independent variables. Its purpose is to determine whether a relationship exists and the strength of the relationship, used to help prioritize what to focus on.

Kiosk-based survey

A survey often undertaken at an exhibition or trade show using touch screen computers to collect information from respondents. It can be cheaper to administer compared to traditional exit surveys with human interviewers.

Kruskal's relative importance analysis

A type of Key Driver Analysis used as an alternative to other techniques such as ordinary regression analysis. It's particularly useful when there is missing data or when variables are strongly related to each other.

Latent Class Analysis

A statistical method used to identify subgroups of related cases from multivariate categorical data. It's often used in market segmentation to identify groups with similar response patterns.

Leading question

A badly constructed question that tends to steer respondents toward a particular answer. Sometimes known as a loaded question, it should be avoided to prevent biased responses.

Least filled quota sampling

A variation of quota sampling where the research team attempts to fill the quotas in the most efficient way possible by selecting respondents from the sub-population that has the lowest representation in the sample.

Least squares approach

A regression procedure that is widely used for deriving the best-fit equation of a line for a given set of data involving a dependent and independent variable.

Lifetime value

The present value of the estimated future transactions and net income attributed to an individual customer relationship. It's crucial for customer relationship management and marketing strategy.

Likert scale

A rating scale which requires the respondent to state their level of agreement with a series of statements about a product, organization, or concept. It typically uses five points from "Strongly agree" to "Strongly disagree".

Linear regression

Used to find out the relative importance of different drivers in order to re-create a dependent variable. For example, the influence of brand imagery items on brand appeal.

Logistic regression

Used to find out the relative importance of different drivers in order to re-create a dependent variable when the dependent variable is binary. It's particularly useful in propensity modeling.

Longitudinal research

A study involving data collection at several periods in time, enabling trends over time to be examined. It may involve asking the same questions on multiple occasions to the same respondents or to respondents with similar characteristics.

Machine learning

A subset of AI that involves training computer models to learn from data and make predictions or decisions. In market research, it's increasingly used to automate much of the classification and analysis of both structured and unstructured data.

Mall intercept interviews

A type of market research technique where participants are approached in a shopping mall or other public area and asked to participate in a survey or interview. It allows for the collection of data from a diverse sample in a specific geographic location.

Market Basket Analysis

A data mining technique used to understand purchasing behavior by finding associations between different items that customers place in their "shopping baskets". It's often used in retail to inform product placement and promotions.

Market Research Online Communities (MROCs)

Groups of individuals recruited and engaged by a market research company to participate in ongoing research studies, surveys, and discussions about a specific topic or product. They provide ongoing insights and feedback.

Marketing research

The collection, analysis, and communication of information undertaken to assist decision making in marketing. It encompasses a wide range of methods and techniques to understand markets, consumers, and marketing effectiveness.

MaxDiff (Maximum Difference Scaling)

A technique used to understand relative importance or appeal amongst a list of features/statements. Respondents choose the most and least appealing/important items from sets, resulting in a ranking of all items.

MBC (Menu-Based Conjoint)

A specific type of conjoint analysis able to handle a variety of menu choice situations in which respondents make from one to multiple choices in the process of building their preferred selection.

The arithmetic average calculated by summing all of the values in a set of data and dividing by the number of cases. It's one of the most common measures of central tendency.

Measures of central tendency

Measures that indicate a typical value for a set of data by computing the mean, mode, or median. They provide a single value that attempts to describe a set of data.

Measures of dispersion

Measures that indicate how 'spread out' a set of data is. The most common are the range, the interquartile range, and the standard deviation.

When all of the values in a data set are put in ascending order, the median is the value of the middle case in a series. It's less affected by extreme values than the mean.

Mixed Mode Studies

Research studies that use a variety of collection methods in a single survey (e.g., using the same questionnaire online and face to face) in order to improve response rates and representativeness.

The value in a set of data that occurs most frequently. It's particularly useful for categorical data.

Monadic testing

A survey method where each respondent only evaluates one concept out of several being tested. It's commonly used in the early stages of product or concept development.

Multi stage sampling

A sampling approach where a number of successive sampling stages are undertaken before the final sample is obtained. It's often used when a complete list of the population is not available.

Multidimensional scaling

A statistical technique used to visualize the level of similarity of individual cases in a dataset. In market research, it's often used to create perceptual maps of brands or products.

Multiple discriminant analysis

A statistical technique used to classify individuals into one of two or more segments (or populations) on the basis of a set of measurements.

Multiple regression analysis

A statistical technique to examine the relationship between three or more variables and also to calculate the likely value of the dependent variable based on the values of two or more independent variables.

Multivariate data analysis

Statistical procedures that simultaneously analyze two or more variables on a sample of objects. Common techniques include multiple regression analysis, factor analysis, cluster analysis, and conjoint analysis.

Mystery shopping

A method of testing the quality of services provided to customers by using researchers posing as regular customers. It's used to assess whether employees are following company procedures or industry guidelines.

Short for "national representative sample," it refers to a research sample that is intended to be representative of the entire population of a country or region. It's crucial for studies aiming to generalize findings to a whole population.

Natural Language Processing (NLP)

A branch of AI that involves understanding and generating human language. In market research, it's used for tasks such as sentiment analysis, text classification, and chatbot interactions.

Net Promoter Score (NPS)

A measure of customer loyalty and advocacy, calculated by asking customers how likely they are to recommend a company's products or services to others. It's widely used as a simple metric of customer satisfaction and loyalty.

Netnography

A qualitative research method used to study online communities. It involves the systematic observation and analysis of the interactions, communications, and content generated by a group of people on the internet.

Neuroscience

Used in market research to provide an accurate and unbiased measure of consumer response. Techniques such as EEG and fMRI are used to measure brain activity and understand how people respond to marketing stimuli.

Nominal data

Numbers assigned to objects or phenomena as labels or identification numbers that name or classify but have no true numeric meaning. They're used for categorization only.

Non probability sampling

A set of sampling methods where a subjective procedure of selection is used, resulting in the probability of selection for each member of the population of interest being unknown. It's often used when probability sampling is not feasible.

Non response errors

An error in a study that arises when some of the potential respondents do not respond. This may occur due to respondents refusing or being unavailable to take part in the research.

Non sampling error

Errors that occur in a study that do not relate to sampling error. They tend to be classified into three broad types: sampling frame error, non-response error, and data error.

Normal distribution

A continuous distribution that is bell-shaped and symmetrical about the mean. It's important in statistics because many natural phenomena follow this distribution.

Null hypothesis

The hypothesis that is tested and is the statement of the status quo where no difference or effect is expected. It's typically what researchers try to disprove in statistical testing.

Observation

A data gathering approach where information is collected on the behavior of people, objects, and organizations without any questions being asked of the participants. It can provide insights into natural behavior.

Omnibus surveys

A data collection approach that is undertaken at regular intervals for a changing group of clients who share the costs involved in the survey's set-up, sampling, and interviewing. It's a cost-effective way to ask a few questions to a large sample.

Open ended question

Questions which allow respondents to reply in their own words. There are no pre-set choices of answers and the respondent can decide whether to provide a brief one-word answer or something very detailed and long.

Ordinal data

Numbers that have the labeling characteristics of nominal data, but also have the ability to communicate the rank order of the data. The numbers do not indicate absolute quantities, nor do they imply that the intervals between the numbers are equal.

Paired interviews

An in-depth interview involving two respondents such as married couples, business partners, teenage friends, or a mother and child. It can provide insights into shared decision-making processes.

Panel research

A research approach where comparative data is collected from the same respondents on more than one occasion. Panels can provide information on changes in behavior, awareness, and attitudes over time.

Participant observation

A research approach where the researcher interacts with the subject or subjects being observed. The best-known type of participant observation is mystery shopping.

Participant Validation

A validation technique that involves taking the findings from qualitative research back to the participants/respondents that were involved in the study and seeking their feedback. It helps ensure the validity of qualitative findings.

Passive data

Data that is collected without actively seeking out the information from a respondent/participant. This type of data is generated naturally through actions such as website visits, online purchases, geolocation, and social media activity.

Pearson's product moment correlation

A correlation approach that is used with interval and ratio data. It measures the strength and direction of the linear relationship between two variables.

Perceptual mapping

An analysis technique which involves the positioning of objects in perceptual space. Frequently used in determining the positioning of brands relative to their competitors.

Photo sorts

A projective technique which uses a set of photographs depicting different types of people. Respondents are then asked to connect the individuals in the photographs with the brands they think they would use.

A type of bar chart which uses pictures of the items being described rather than bars. It can make data more visually appealing and easier to understand quickly.

Pilot testing

The pre-testing of a questionnaire prior to undertaking a full survey. Such testing involves administering the questionnaire to a limited number of potential respondents in order to identify and correct flaws in the questionnaire design.

Placement tests

The testing of reactions to products in the home and where they are to be used. Respondents are given a new product to test in their own home or office, and their experiences and attitudes are then collected.

Population of interest

The total group of people that the researcher wishes to examine, study, or obtain information from. It typically reflects the target market or potential target market for the product or service being researched.

Predictive analytics

The use of data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data. It's increasingly used in market research to forecast trends and behaviors.

Price Sensitivity Management (Van Westendorp)

A technique used to understand price preferences. Respondents are asked at what price they would consider a product to be too expensive, too cheap, etc. The optimal price point is determined where an equal proportion of respondents have said "too cheap" and "too expensive".

Primary data

Data collected by a program of observation, qualitative or quantitative research either separately or in combination to meet the specific objectives of a marketing research project. It's collected specifically for the research at hand.

Principal Component Analysis (PCA)

A descriptive method of multivariate analysis used to analyze numeric questions. It converts a set of observations of possibly correlated variables into a set of values of linearly uncorrelated variables called Principal Components.

Probability sampling

A set of sampling methods where an objective procedure of selection is used, resulting in every member of the population of interest having a known probability of being selected. It allows for statistical inference from the sample to the population.

Programme evaluation and review technique (PERT)

A managerial tool used for scheduling a research project. It involves a probability-based scheduling approach that recognizes and measures the uncertainty of project completion times.

Projective questioning

A qualitative research technique that asks respondents to consider what other people would think about a situation, rather than directly asking about their own opinions. Also known as third-party techniques, these methods are used to uncover deeper attitudes or beliefs that respondents might be unwilling or unable to express directly about themselves.

This technique is part of a broader category of projective techniques used in market research to gain insights into consumers' subconscious thoughts and feelings

Proportionate stratified random sampling

A form of stratified random sampling where the units or potential respondents from each population subset are selected in proportion to the total number of each subset's units in the population. It ensures representation of all subgroups in the sample.

Psychographic segmentation

A method of dividing a market into segments based on consumers' personality traits, values, attitudes, interests, and lifestyles. It goes beyond demographic segmentation to understand the psychological aspects of consumer behavior.

Purchase intent scales

A scaling approach which is used to measure a respondent's intention to purchase a product or potential product. It's often used in concept testing and new product development research.

Qualitative research

Qualitative research is an unstructured research approach with a small number of carefully selected individuals used to produce non-quantifiable insights into behavior, motivations, and attitudes. Methods include focus groups and in-depth interviews.

Quantitative research

Quantitative research is a structured research approach involving a sample of the population to produce quantifiable insights into behavior, motivations, and attitudes. It typically involves larger sample sizes and statistical analysis.

Questionnaire design process

A stepped approach to the design of questionnaires. It involves determining the information needed, question content, question wording, response format, and question sequence.

Quota sampling

Quota sampling is a non-probability sampling technique used in market research to create a sample that reflects specific proportions of characteristics in the target population. In this method, researchers divide the population into subgroups or "cells" based on relevant demographic or psychographic variables such as age, gender, income, or education level. For each subgroup, a quota is set that corresponds to its proportion in the overall population. Researchers then collect data from individuals within each subgroup until the predetermined quotas are met. While quota sampling aims to achieve a representative sample and can be more cost-effective than probability sampling methods, it is subject to potential bias in the selection process. This is because the final choice of respondents within each quota is often left to the researcher's discretion, which may inadvertently introduce selection bias and limit the generalizability of results.

A measure of dispersion that calculates the difference between the largest and smallest values in a set of data. It's a simple measure of variability but is sensitive to outliers.

Actual 'real' numbers that have a meaningful absolute zero. All arithmetic operations are possible with such data, including meaningful ratios.

A statistical approach to examine the relationship between two variables. It identifies the nature of the relationship using an equation and can be used for prediction.

Reliability of scales

Refers to the extent to which a rating scale produces consistent or stable results. Stability is most commonly measured using test-retest reliability and consistency is measured using split-half reliability.

Research brief

A written document which sets out an organization's requirements from a marketing research project. This provides the specification against which the researchers will design the research project.

River sampling

A method that invites respondents to take a survey via online banners, ads, promotions, offers, and invitations placed on various websites and social media. Respondents are screened and routed to appropriate surveys based on their characteristics.

Role playing

A projective technique which involves a respondent being asked to act out the character of a brand. It can reveal perceptions and associations with the brand that might not be expressed directly.

When designing a questionnaire, routing refers to the survey logic that allows you to change or limit the content based on previous answers given by respondents. Also known as branching or skip logic.

A subset of the population of interest. In market research, we typically study a sample and use statistical inference to draw conclusions about the wider population.

Sampling error

The difference between the sample value and the true value of a phenomenon for the population being surveyed. It can be expressed mathematically, usually as the survey result plus or minus a certain percentage.

Scaling questions

Questions that ask respondents to assign numerical measures to subjective concepts such as attitudes, opinions, and feelings. Common types include Likert scales and semantic differential scales.

Screening criteria

Criteria used to ensure that the participants in a study are relevant, qualified, and representative of the target population. Screening questions are usually asked at the start of the study and may include demographics as well as questions such as brand usage and product ownership.

Screening questionnaire

A questionnaire used for identifying suitable respondents for a particular research activity, such as a group discussion or in-depth interview.

Secondary data

Information that has been previously gathered for some purpose other than the current research project. It may be data available within the organization (internal data) or information available from published and electronic sources originating outside the organization (external data).

Segmentation

The process of dividing markets into groups of people or occasions that are similar to each other, but different from other groups. It's used to target marketing efforts more effectively.

Semantic differential scales

A scaling approach which requires the respondent to rate a brand or concept using a set of bipolar adjectives or phrases (e.g., helpful and unhelpful; friendly and unfriendly). Each pair of adjectives is separated by a seven-category scale with neither numerical nor verbal labels.

The study of symbols and signs and how they communicate meaning. In market research, it involves analyzing the visual and linguistic elements of product packaging, advertising, and branding to understand cultural and emotional associations.

Sensory testing

A method of evaluating the characteristics of a product or food by measuring how it is perceived by the senses of smell, taste, sight, touch, and sound. It's used to assess product attributes and quality.

Sentence completion

A projective technique which involves providing respondents with an incomplete sentence or group of sentences and asking them to complete them. It can reveal underlying attitudes or perceptions.

Sentiment analysis

A form of text analytics that uses natural language processing and machine learning to determine the emotion expressed in a text. It's commonly used to analyze survey responses, user/customer feedback, and product reviews.

Sequential monadic testing

A survey method whereby each respondent provides feedback on two or more concepts in the same survey. The concepts should be presented in a random order to avoid order bias.

Share of Shelf (SOS)

A metric used to measure the proportion of space a product or brand occupies on a retail shelf compared to its competitors. It helps understand the visibility and accessibility of a product in the retail environment.

Share of Voice (SOV)

A measure of the proportion of advertising a brand or product receives compared to others in the same category. It helps understand how often a brand is advertised relative to its competitors.

Share of Wallet (SOW)

A metric used to measure a company's market share in terms of customer spending. It represents the proportion of a customer's total spending on a given product or service category that is going to a particular company.

Shelf impact testing equipment

Used to determine the visual impact of new packaging when placed on shelves next to competitors' products. It helps assess how well a product stands out in a retail environment.

Simple random sampling

A probability sampling method where every possible member of the population has an equal chance of being selected for the survey. Respondents are chosen using random numbers.

Simulated test markets

A research approach used to predict the potential results of a product launch and to experiment with changes to different elements of a product's marketing mix. It relies on simulated or laboratory-type testing and mathematical modeling.

Snowball sampling

Snowball sampling is a non-probability sampling procedure where additional respondents are identified and selected on the basis of referrals from initial respondents. It tends to be used where the population of interest is small or difficult to identify.

Social media analytics

The use of data from social media platforms to understand consumer behavior and sentiment, as well as to track the performance of campaigns or products. It provides insights into online conversations and trends.

Spearman's rank-order correlation

Spearman's rank-order correlation, often referred to as Spearman's rho , is a non-parametric statistical measure used to assess the strength and direction of the relationship between two ordinal variables. This technique is particularly valuable in market research when dealing with ranked data or when the relationship between variables may not be linear. It works by converting the raw scores of each variable into ranks and then calculating the correlation between these ranks. The resulting correlation coefficient ranges from -1 to +1, where -1 indicates a perfect negative correlation, +1 a perfect positive correlation, and 0 no correlation. Spearman's correlation is robust to outliers and doesn't require the assumption of normally distributed data, making it a versatile tool for analyzing various types of ordinal data in market research, such as customer satisfaction ratings, preference rankings, or Likert scale responses.

Split half reliability

Measures the internal consistency of a summated rating scale and refers to the consistency with which each item represents the overall construct of interest. The method involves randomly dividing the various scale items into two halves.

Standard deviation

A measure of dispersion that calculates the average distance that the values in a data set are away from the mean. It provides a measure of how spread out the data is.

Stapel scales

A scaling approach which is a variation of the semantic differential scaling approach. It uses a single descriptor and 10 response categories with no verbal labels.

Stimulus materials

Materials used in group discussions and individual depth interviews to communicate the marketer or advertiser's latest creative thinking for a product, packaging, or advertising to the respondents.

Stratified random sampling

A probability sampling procedure in which the chosen sample is forced to contain potential respondents from each of the key segments of the population. It ensures representation of all important subgroups.

Structural Equation Modelling

A statistical technique for testing and estimating causal relationships, using a combination of statistical data and qualitative causal assumptions. It allows for the construction of variables which are not measured directly.

Structured observation

A research approach where observers use a record sheet or form to count phenomena or to record their observations. It provides a systematic way of collecting observational data.

System 1 & System 2 thinking

A concept in psychology that describes two different ways the brain forms thoughts. System 1 is fast, instinctive, and emotional; System 2 is slower, more deliberative, and more logical. This concept is applied in market research to understand consumer decision-making processes.

Systematic sampling

A probability sampling approach similar to a simple random sample but which uses a skip interval (i.e., every nth person) rather than random numbers to select the respondents.

A hypothesis test about a single mean if the sample is too small to use the Z test. It's commonly used to determine if there is a significant difference between the means of two groups.

Tabular method of analysis

A method for analyzing qualitative research data using a large sheet of paper divided into boxes. It allows for systematic organization and comparison of qualitative data.

Test-retest reliability

Measures the stability of rating scale items over time. Respondents are asked to complete scales at two different times under as near identical conditions as possible.

Text Mining

The process of deriving high-quality information from text. It involves the discovery of patterns and trends in large volumes of unstructured text data.

Trend Analysis

A technique used to analyze the direction and rate of change in data over time. It's used to predict future values based on historical data.

Triangulation

Using a combination of different sources of data where the weaknesses in some sources are counterbalanced with the strengths of others. It increases the validity and reliability of research findings.

TURF (Total Unduplicated Reach and Frequency)

An analysis used for providing estimates of media or market potential and devising optimal communication and placement strategies. It's particularly useful for deciding on product ranges or media mixes.

Type I error

A Type I error, also known as a "false positive," is a fundamental concept in statistical hypothesis testing that has significant implications for market research. It occurs when a researcher incorrectly rejects a true null hypothesis, essentially concluding that there is a significant effect or relationship when, in reality, there isn't one. The probability of committing a Type I error is denoted by alpha (α), which is typically set at 0.05 or 0.01 in market research studies. This means that researchers accept a 5% or 1% chance of falsely detecting an effect. Type I errors can lead to misguided business decisions, such as implementing ineffective marketing strategies or product changes based on falsely perceived consumer preferences. To mitigate this risk, researchers must carefully consider their significance levels and sample sizes, and potentially employ multiple testing corrections when conducting numerous statistical tests simultaneously.

Type II error

A Type II error, also known as a "false negative," is a crucial concept in statistical hypothesis testing within market research. It occurs when a researcher fails to reject a false null hypothesis, essentially concluding that there is no significant effect or relationship when, in reality, one does exist. The probability of committing a Type II error is denoted by beta (β), and its complement (1-β) represents the power of the statistical test. Type II errors can have serious implications in market research, potentially leading to missed opportunities or overlooked insights. For instance, a company might fail to detect a genuine consumer preference or market trend, resulting in lost competitive advantage. To reduce the risk of Type II errors, researchers often increase sample sizes, choose more sensitive statistical tests, or adjust the significance level, balancing this against the risk of Type I errors. Understanding and managing both types of errors is essential for conducting robust and reliable market research.

See Population of interest.

Unstructured questions

See Open-ended questions.

Usability Testing

A technique used to evaluate a product by testing it with representative users. It's often used for websites, apps, and software to identify any usability problems and collect qualitative and quantitative data . Read more about usability testing on Prolific .

User generated content (UGC)

Online material such as comments, profiles, photographs that is produced by end users. It can be a valuable source of insights in market research.

UX (User Experience)

Refers to the overall experience of a person using a product or service, including the design, functionality, and ease of use. UX research is used to understand how people interact with a product, website, or service, and to identify areas for improvement.

Whether the subject requiring to be measured was actually measured. It's a crucial concept in ensuring that research findings are meaningful and accurate.

Verification

The process of checking and verifying the accuracy and reliability of data collected during research. This includes reviewing data for errors, inconsistencies, and missing information.

Viewing rooms

Specialist facilities/locations for group discussions. They are set out in the form of a boardroom or living-room setting with video cameras or a large one-way mirror built into one wall.

Virtual reality

Technology that can be used in market research to create immersive experiences for consumers, allowing researchers to gather data on how consumers interact with products and brands in a simulated environment.

VoC (Voice of Customer)

A research method used to collect customer feedback. It captures how customers feel about a business, product, or service, providing insights that can help create a stronger customer experience.

Refers to the second generation of the World Wide Web, characterized by the shift from static websites to dynamic, interactive, and user-generated content. It has significant implications for online market research.

Refers to the next generation of the World Wide Web, characterized by the integration of artificial intelligence, machine learning, and the decentralized web. It aims to create a more intelligent, rich, and interconnected web.

Web scraping

A technique used in market research to gather large amounts of data from the internet, such as information on prices, product reviews, or social media sentiment. This data can then be used to gain insights into market trends and consumer behavior.

The process of adjusting the value of survey responses to account for over- or under-representation of different categories of respondent. It's used to make the sample more representative of the population.

Word association tests

A projective technique that involves asking respondents what brands or products they associate with specific words. It's useful for understanding brand imagery and building rapport in group discussions.

A visual depiction of words used by respondents in qualitative research, open-ended survey questions, or content appearing on social media or reviews. The font size of the words is determined by the frequency of use.

A hypothesis test about a single mean where the sample size is larger than 30. It's used when the population standard deviation is known and the sample size is large.

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Definitions of Marketing

What Is Marketing?

Definition of Marketing

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

The AMA’s definitions of marketing and marketing research are reviewed and reapproved/modified regularly by a panel of five scholars who are active researchers.

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An Overview of Marketing

This course introduces marketing, the marketing mix (the Four Ps), the strategic importance of marketing, and customer values and satisfaction.

Brand Strategy 101

With practice and a dash of curiosity, this course will reveal what’s needed to bring a brand to life using this formula: Brand Commitment + Brand Voice + Design + Implementation = Brand Strategy.

Modern Marketing: Strategy and Execution

The course focuses on providing practical, hands-on advice to entrepreneurs and small-business people, including video segments with analysis and commentary from industry-leading practitioners and subject matter experts.

Definition of Marketing Research

Marketing research is the function that links the consumer, customer, and public to the marketer through information—information used to identify and define opportunities and problems; generate, refine, and evaluate actions; monitor performance; and improve understanding of it as a process. It specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications. (Approved 2017)

Definition of Brand

A brand is a name, term, design, symbol, or any other feature that identifies one seller’s goods or service as distinct from those of other sellers.

ISO brand standards add that a brand “is an intangible asset” that is intended to create “distinctive images and associations in the minds of stakeholders, thereby generating economic benefit/values.”

Read More About Brands

The Power of a Brand Name: Why It Matters

An analysis of what makes some brand names more effective than others.

Does the World Really Need More Brands?

Confronting capitalism and brand purpose in the age of anxiety.

The Mythology of Totemic Brands

Radical new principles of engagement to help you see your brand more clearly.

Inbound vs Outbound Marketing

Inbound Marketing

Inbound is when customers initiate contact with the marketer in response to various methods used to gain their attention. These methods include email, events, content and web design.

Outbound Marketing

In this, the marketer initiates contact with the customer through methods such as TV, radio and digital display advertising . It is often used to influence consumer awareness and preference for a brand. 

Search and Content

Search Engine Optimization

Search engine optimization (SEO) is the process of developing a marketing/technical plan to improve visibility within one or more  search engines . Typically, this consists of two elements.

On a technical side, SEO refers to ensuring that a  website  can be indexed properly by the major search engines and includes the use of the proper keywords, content, code, and links.

On the marketing side, SEO refers to the process of targeting specific keywords where the site should “win” in searches . This can be done by modifying a website to score well in the algorithms search engines use to determine rank, or by purchasing placement with individual keywords. Often, SEO programs are a blend of several elements and strategies.  [2]

Keyword Marketing

Involves placing a message in front of  users  based on the specific  keywords and phrases  they are using to search. [1]

A key advantage of this method is that it gives marketers the ability to reach the right people with the right message at the right time. For many marketers, this method results in the placement of an  ad  when certain keywords are entered.

Note that in  SEO , this term refers to achieving top placement in the search results themselves.

Content Marketing

A technique of creating and distributing  valuable ,  relevant  and consistent content to attract and acquire a clearly defined  audience —with the objective of driving profitable  customer  action.

According to the Association of National Advertisers (ANA), it involves various methods to tell the brand story. More and more marketers are evolving their advertising to content marketing/storytelling to create more stickiness and emotional bonding with the consumer. 

Areas of Marketing

Relationship marketing.

According to the Association of National Advertisers (ANA), relationship marketing refers to strategies and tactics for segmenting consumers to build loyalty.

Relationship marketing  leverages database marketing, behavioral advertising and analytics to target consumers precisely and create loyalty programs. 

Influencer Marketing

This focuses on leveraging individuals who have influence over potential buyers and orienting activities around these individuals to drive a brand message to the larger market.

With this, a brand inspires or compensates influencers (which can include celebrities, content creators, customer advocates, and employees) to get the word out on their behalf.

Viral Marketing

A phenomenon that facilitates and encourages people to pass along an advertising message.

Nicknamed “viral” because the number of people exposed to a message mimics the process of passing a virus or disease from one person to another. [1]

Guerilla Marketing

Describes an unconventional and creative strategy intended to get maximum results from minimal resources.

Green Marke t ing

Refers to the development and promotion of  products  that are presumed to be environmentally safe (i.e., designed to minimize negative effects on the physical environment or to improve its quality).

This term may also be used to describe efforts to produce, promote, package, and reclaim products in a manner that is sensitive or responsive to ecological concerns.

Email Marketing

A common and powerful tool for marketers at all levels. Email marketing has a role in direct, digital, inbound and outbound marketing efforts. It helps marketers with lead generation, brand awareness, relationship building and more.

The 4 Ps of Marketing

A product is defined as a bundle of attributes (features, functions, benefits, and uses) capable of exchange or use, usually a mix of tangible and intangible forms.

A product may be an idea, a physical entity (goods), or a  service , or any combination of the three. It exists for the purpose of exchange in the satisfaction of individual and organizational objectives.

Price is the formal ratio that indicates the quantity of money,  goods , or  services  needed to acquire a given quantity of goods or services.

It is the amount a  customer  must pay to acquire a  product . 

Place (or Distribution)

Distribution refers to the act of carrying products to consumers . It is also used to describe the extent of market coverage for a given product.

In the  4 Ps , distribution is represented by place or placement.

Promotion includes tactics that encourage short-term purchase, influence trial and quantity of purchase, and are very measurable in volume, share and profit.

Examples include  coupons ,  sweepstakes , rebates,  premiums , special packaging, cause-related marketing and  licensing .

About Our Definitions

• Bernard Jaworski, Peter F. Drucker Chair in Management and the Liberal Arts, Claremont Graduate University
• Richard Lutz, J.C. Penney Professor of Marketing, University of Florida
• Greg W. Marshall, Charles Harwood Professor of Marketing and Strategy, Rollins College
• Linda Price, Philip H. Knight Chair and Professor of Marketing, University of Oregon
• Rajan Varadarajan, University Distinguished Professor and Distinguished Professor of Marketing and Ford Chair in Marketing & E-Commerce, Texas A&M University

Marketing Dictionary

The AMA helps support the Marketing Dictionary . Head there if you are looking for more definitions of marketing terms.

Keep Reading

What is SEO Marketing? [A Comprehensive Overview]

SEO marketing is a subset of digital marketing that involves the optimization of websites and web pages for major search engines like Google. As these search engines became a predominant way of finding just about anything, various practices have emerged to help organizations improve the visibility of their digital assets. The term “search engine optimization […]

Data and Analytics for Marketers

While being a marketer is often considered a creative field, there is magic in the mashup of data and creativity . Data and analytics take the guesswork out of marketing and allow you to focus on what matters – the success of your marketing campaigns. Plus, they help you get more value from your marketing budget, improve customer efficiency, and understand what is working best in your marketing strategy. Even if you don’t consider yourself a data and analytics expert, it is important to have some knowledge in these areas as a marketer in 2022 and beyond. Additionally, as a marketer, it is important to know how to use data and analytics tools to your advantage to demonstrate your success to your clients or to superiors within your company.

Build Your Digital Marketing Strategy [Step-by-Step Guide]

Most of our consumption of content today exists online. Because of this, companies have had to shift to digital marketing in order to get the word out about their products and services. However, you cannot simply make content for online platforms and hope for the best. You need to build a digital marketing strategy to […]

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market research

• the gathering and studying of data relating to consumer preferences, purchasing power, etc., especially prior to introducing a product on the market.

market-research

[ mahr -kit- ree -surch , -ri- surch ]

verb (used with object)

• to conduct market research on.
• the study of influences upon customer and consumer behaviour and the analysis of market characteristics and trends

Word History and Origins

Origin of market research 1

Origin of market research 2

Example Sentences

McKinsey conducted market research, attended ride-alongs with Purdue sales representatives promoting OxyContin and monitored Purdue sales representatives.

Strong communication skills, and an understanding of your audiences and their priorities, are critical to delivering engaging presentations, market research, and background data.

By one measurement, retail sales of bicycles are up 68 percent this year as of October, compared to 2019, according to NPD, a market research firm.

The market research firm GsK said Thursday that nearly half of the people it surveyed were either very concerned or somewhat concerned about the coronavirus’s economic impact on their own futures.

A research analyst for Euromonitor International, an independent market research company, sent the media some insights on the new McDonald’s sandwich.

It is an effective combination of intuition and market research.

For some, crediting an ad based on extensive market research as part of an important cultural message may seem like a stretch.

Perec used to do market research (like his protagonists in Things) and was friendly with the sociologist Henri Lefebvre.

“Libya production is at its lowest since the civil war,” explains Aaron Brady, senior director for oil market research at IHS.

According to the market-research firm Global Industry Analysts, the anti-aging industry generates more than $80 billion per year.