A Plain-English Guide to Market Research (2024)

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.

A Plain-English Guide to Market Research (1)

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:

  1. 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.
  2. 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.

Interviews

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

Qualitative information

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.

Surveys

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

Quantitative information

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.

Topics: Conducting Marketing Research

A Plain-English Guide to Market Research (2024)

FAQs

How to do market research for beginners? ›

How to do a market research: the steps
  1. Define buyer personas. ...
  2. Identify a group of personas to engage. ...
  3. Prepare questions for participants. ...
  4. List your main competitors. ...
  5. Summarize your findings. ...
  6. Tell a story. ...
  7. Choose technologies that automate and simplify data acquisition, communication, and sharing processes.
May 12, 2022

What are the 7 steps in marketing research? ›

Steps in the Marketing Research Process
  • Step 1: Define the Problem (or Opportunity)
  • Step 2: Design the Research.
  • Step 3: Design the Data-Collection Forms.
  • Step 4: Specify the Sample.
  • Step 5: Collect the Data.
  • Step 6: Analyze the Data.
  • Stage 7: Write the Research Report and Present Its Findings.
  • Key Takeaway.

What are the basics market research? ›

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.

How do I get into market research with no experience? ›

Start a career in Market Research by building foundational skills in data analysis, statistics, and understanding consumer behavior. Take online courses or certifications in market research tools and methodologies. Gain experience through internships, freelance projects, or volunteering in related roles.

How to do market research from scratch? ›

How to conduct market research
  1. Choose your focus. Start by defining what you want to achieve from your research. ...
  2. Determine your research methods. Choose how you'll capture the data based on your objectives and budget. ...
  3. Collect the data. ...
  4. Analyze the data. ...
  5. Report your findings.
Mar 8, 2024

What are the three rules of marketing research? ›

Three golden rules of marketing to help you keep your edge in the market:
  • Know what they want. ...
  • Communicate clearly. ...
  • Use your reputation to your advantage.

What are the five basic methods of market research? ›

While there are many ways to perform market research, most businesses use one or more of five basic methods: surveys, focus groups, personal interviews, observation, and field trials. The type of data you need and how much money you're willing to spend will determine which techniques you choose for your business.

How to get market research reports for free? ›

Some of the most credible ones include Statista, Pew Research, ProQuest, etc. You can also use Google Trends to extract trends and insights around any topic. Public Libraries: If you have access to any public library in your town or community, search for market research reports in the business sections.

What are the basics of marketing research? ›

The recommended core five steps in the marketing research process are: define the problem or opportunity, develop your marketing research plan, collect relevant data and information, analyze data and report findings, and put your research into action.

What are the 5 P's of market research? ›

The 5 P's of marketing – Product, Price, Promotion, Place, and People – are a framework that helps guide marketing strategies and keep marketers focused on the right things. Let's take a deep dive into their importance for your brand. Need content for your business?

What is the best platform for market research? ›

The 13 Best Market Research Tools in 2024
  • Meltwater Radarly.
  • Statista.
  • Think With Google.
  • Attest.
  • Typeform.
  • Ubersuggest.
  • SurveyMonkey.
  • Answer the Public.
Jul 26, 2024

How to identify the target market? ›

How to identify your target market
  1. Define your offer. The first step to identifying your target market is defining your offer, or what it is that makes your products or services desirable. ...
  2. Track data. ...
  3. Define your ideal audience. ...
  4. Profile your ideal client. ...
  5. Conduct interviews. ...
  6. Research your competition's targets.
Feb 3, 2023

How do I get good at market research? ›

Understand Your Customers

In order to accurately target the customers in your market niche, you need to know who your customers are. This type of research can be conducted through focus groups, questionnaires, surveys, interviews, and analytical data collected from online interactions with your brand.

Can I pay someone to do market research for me? ›

Hiring a market researcher can be easy if you know what to look for. Learn what a market researcher does, how much it costs to hire one, how long their projects take, and what questions to ask before hiring.

What is the first step to market research? ›

Step 1: Identify the Problem

The first step for any marketing research activity is to clearly identify and define the problem you are trying to solve. You start by stating the marketing or business problem you need to address and for which you need additional information to figure out a solution.

What are the six basic steps of market research? ›

Six steps in the market research process
  • Identify the problem or objective.
  • Develop your research strategy.
  • Gather data and information.
  • Analyze data and information.
  • Present findings.
  • Act on your findings.

What is an example of a simple market research? ›

Interviews are a common type of primary market research that can be either in-depth or as simple as asking a question. An example of an interview in market research is when a business calls a current customer to ask how they are enjoying a product they recently purchased.

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