How to conduct market research

Research is a marketer’s bread and butter. But let's face it, in today's hyper-competitive landscape, simply going through the motions won't cut it. These days, there's an overwhelming amount of data, marketing tools, and methodologies available leaving marketers asking how to conduct market research. To identify relevant insights and position your business for success, you need a proper handle on both of these challenges.

To excel at conducting market research, you need to go beyond the basics and master the modern approach. In this article, we'll provide advanced tips and techniques with insights that will help differentiate your market research game.

What you’ll learn:

• What is market research?
• Why is market research important?
• What are the types of marketing research?
• What are the best primary research methods?
• What are the best secondary research methods?
• What are the best qualitative research methods?
• What are the key steps in conducting market research
• What are the best tools and techniques for market research?
• How to conduct marketing research?
• How can market research help my business grow?

Market research is when you gather, analyze, and interpret data about a specific market, industry, or target audience. You know how to collect information on your consumer preferences, market trends, and competitor analysis to inform strategic decision-making. Advanced market research takes it a step further. It looks deeper into methodologies such as data analytics, predictive modeling, and consumer behavior analysis.

Market research is important because it provides valuable insights into customer preferences, market trends, and competitive landscapes, enabling your business to make informed decisions and develop effective strategies. It may seem obvious to a seasoned marketing practitioner, but it bears repeating that the goal of applying market research is to understand your customers’ behavior, which, in turn, enables you to create personalized campaigns that drive higher conversion rates and increased sales. It’s a data-driven approach that leads to more effective marketing strategies and a stronger competitive advantage in the market.

Consider a global technology company that conducts extensive market research to understand customer preferences and pain points. Through their research, they discover that customers are seeking more user-friendly interfaces and faster processing speeds. The company then invests in redesigning their products with intuitive interfaces and improved performance. As a result, they experience a significant increase in customer satisfaction, leading to higher sales and market share.

Market research has always played a role in identifying market trends and emergent opportunities for businesses. With the global marketplace evolving, it’s important to stay on top of all the ways to analyze market data and consumer behavior so you can grow and stay ahead of the competition.

Here are a few examples of how market research has recognized and taken advantage of these opportunities:

• The rise of plant-based diets: Market research has revealed a growing trend towards plant-based diets and increased interest in vegan and vegetarian food options. Recognizing this opportunity, some food companies have launched a line of plant-based products. This strategic move allowed them to tap into a rapidly growing market segment and gain a competitive edge.
• The demand for smart home technology: Market research has identified a rising demand for smart home devices and automation systems. Numerous technology companies used this insight to develop products that integrate with existing home systems. By capitalizing on this trend, they experienced significant sales growth and established themselves as a leader in the smart home market.
• The shift toward remote work: Market research has highlighted a shift in work patterns towards remote and hybrid work arrangements. Many companies took this knowledge to develop collaboration tools to adopt solutions, enabling businesses to make the changes their workers valued. The result was capturing a significant market share in becoming a trusted provider in the modern work space.

There are four main types of marketing research: primary, secondary, qualitative, and quantitative research.

Primary research

Primary research involves collecting data directly from original sources. This can be done through surveys, interviews, observations, or experiments. Primary research provides first hand insights and is tailored to specific research objectives, allowing you to gather specific and targeted information.

Secondary research

Secondary research involves analyzing existing data and information that has already been collected by others. This can include market reports, industry studies, government publications, or academic research. Secondary research provides a broader perspective and helps you understand the overall market landscape and trends.

Qualitative research

Qualitative research focuses on exploring in-depth insights and understanding the underlying motivations, attitudes, and behaviors of consumers. It typically involves techniques such as focus groups, interviews, or ethnographic research. Qualitative research provides rich and descriptive data, allowing marketers to gain a deeper understanding of consumer perceptions and preferences.

Quantitative research

Quantitative research, on the other hand, involves collecting numerical data and analyzing it statistically. This can be done through surveys, experiments, or data analysis. Quantitative research provides objective and measurable data, allowing marketers to draw conclusions, make predictions, and identify patterns or trends.

Now that we’ve covered the basic types, let’s take a look at the best kinds of primary research methods. These primary research methods can be used individually or in combination, depending on your objectives, target audience, and available resources.

Gathering data through structured questionnaires or online surveys to collect quantitative or qualitative information from a target audience.

Conducting one-on-one or group interviews to obtain in-depth insights and opinions from individuals with relevant knowledge or experience.

Bringing together a small group of individuals to engage in a guided discussion, allowing for interactive feedback and deeper understanding of consumer perceptions.

Directly observing and recording consumer behavior, interactions, and preferences in real-world or controlled environments.

Conducting controlled experiments to test hypotheses and measure the impact of specific variables on consumer behavior or preferences.

In-depth analysis of specific individuals, organizations, or situations to gain insights into their experiences, challenges, and decision-making processes.

Immersing researchers in the natural environment of the target audience to understand their behaviors, attitudes, and cultural influences.

Engaging with online communities or social media platforms to gather insights, opinions, and feedback from a specific target audience.

Your choice of primary research methods depends on your specific research goals. Surveys provide quantitative data on customer preferences, while interviews offer in-depth insights into motivations and experiences. Observations capture real-world consumer behavior, experiments test causal relationships, and focus groups generate collective opinions and ideas. Each method has unique advantages and should align with research goals and data requirements.

• Published market reports: Industry studies illustrate market trends, competitor analysis, and consumer behavior. They offer a broad perspective and are often conducted by reputable research firms.
• Government publications: These offer access to demographic data, economic indicators, and industry regulations. They are often considered to be reliable and freely available.
• Academic research: This provides access to scholarly articles and studies conducted by experts in various fields, citing sources that offer rigorous analysis and in-depth insight.

• Published market reports: Industry studies may come with a hefty price tag and might not always provide the specific information needed for a particular research objective.
• Government publications: One criticism is that government publications may lack the depth and specificity required for certain research needs.
• Academic research: These may require access to academic databases and can be time-consuming to navigate.

Secondary research methods involve the use of existing data and sources to gather information and insights. The following methods provide valuable information without the need for primary data collection. Most can be cost-effective, time-efficient, and provide a broader perspective on the research topic. However, it is important to critically evaluate the quality, relevance, and reliability of the secondary sources used in order to ensure the accuracy and validity of the findings.

• Literature review: Conducting a comprehensive review and analysis of existing academic and industry literature to gather relevant information, theories, and findings related to the research topic.
• Data mining: Analyzing large datasets, such as market reports, industry databases, or government statistics, to extract valuable insights and trends that can inform marketing strategies and decision-making.
• Meta-analysis: Combining and analyzing data from multiple studies or sources to identify patterns, trends, and relationships, providing a broader understanding of the research topic.
• Case studies: Examining and analyzing existing case studies or reports to gain insights into specific industries, companies, or marketing strategies.
• Content analysis: Analyzing and interpreting existing content, such as social media posts, customer reviews, or online forums, to understand consumer opinions, sentiments, and trends.
• Historical analysis: Studying historical data, trends, and events to gain insights into long-term patterns and changes in consumer behavior, market dynamics, or industry developments.
• Market research reports: Using published market research reports from reputable sources to gather industry-specific data, market trends, consumer insights, and competitive analysis.

The choice of secondary research methods depends on the research objectives and context. Content analysis of social media and customer reviews provides insights into consumer sentiments, while data mining of market reports reveals industry trends. Literature reviews are valuable for theoretical frameworks, and market research reports offer industry-specific data. The selection of secondary research methods should align with the research goals to obtain the most relevant insights.

• Published market reports: Industry studies illustrate market trends, competitor analysis, and consumer behavior. They offer a broad perspective and are often conducted by reputable research firms.
• Government publications: These offer access to demographic data, economic indicators, and industry regulations. They are often considered to be reliable and freely available.
• Academic research: This provides access to scholarly articles and studies conducted by experts in various fields, citing sources that offer rigorous analysis and in-depth insight.

• Published market reports: Industry studies may come with a hefty price tag and might not always provide the specific information needed for a particular research objective.
• Government publications: One criticism is that government publications may lack the depth and specificity required for certain research needs.
• Academic research: These may require access to academic databases and can be time-consuming to navigate.

We’ve touched on the value of surveys, experiments, and observational studies. Further examples for those might look like a clothing retailer conducting a survey to understand customer preferences for different styles and colors. Or a software company using a survey to measure customer satisfaction by asking users to rate their experience on a scale of 1 to 10. And controlled experiments allow you to test hypotheses and measure cause-and-effect relationships, like running an A/B test to compare the conversion rates of two different website layouts to help determine which design drives more sales.

To go a little deeper, we can think about how with the rise of social media, you can analyze user-generated content. By monitoring hashtags, mentions, and sentiment analysis, you can gauge brand perception and identify trends. Web analytics tools provide quantitative data on website traffic, user behavior, and conversion rates, enabling you to track key metrics such as bounce rate, time on page, and click-through rates to optimize website performance. For instance, an online retailer could analyze the conversion funnel to identify drop-off points and make data-driven improvements.

These key steps for approaching your market research don’t have to be in order, but every one ought to be considered.

1. Clarify your goals: Let's say you're an urban garden company launching a new line of outdoor furniture products. Instead of a vague goal like "I want to understand customer needs," be specific: "I want to identify the most desired features of patios among homeowners with children."
2. Understand your audience: Suppose you're a fitness app targeting millennials. Instead of just looking at age and gender, delve deeper: "Discover what motivates millennials to exercise regularly, whether it's for health reasons or to relieve stress from work."
3. Mix up your methods: If you're a restaurant chain considering a menu revamp, don't rely solely on surveys. Try social media listening to gauge customers' sentiments about current menu items. Conduct focus groups to get in-depth feedback on potential new dishes.
4. Collect data wisely: Imagine you're a software company gathering feedback on a new app feature. Instead of asking leading questions that bias responses, use open-ended questions to encourage honest feedback. Ensure data privacy by anonymizing responses and following the General Data Protection Regulation (GDPR) guidelines.
5. Use advanced tools: Let's say you're an online retailer analyzing customer purchase patterns. Instead of manually sorting through spreadsheets, use data analytics software to identify trends in buying behavior. Explore predictive modeling to forecast future sales based on past performance.
6. Visualize your findings: Suppose you're a marketing agency presenting research findings to a client. Instead of overwhelming them with text-heavy reports, use visually appealing infographics to highlight key insights, such as customer demographics and preferences.
7. Combine different insights: If you're a beverage company researching a new product launch, don't rely solely on sales data. Conduct focus groups to gather qualitative insights on taste preferences and brand perceptions. Then, complement this with quantitative data on market trends and competitor analysis.
8. Stay agile and learn from mistakes: Let’s say you're a startup launching a mobile app. Instead of sticking rigidly to a predefined research plan, be open to adjusting your approach based on early feedback from beta testers. Learn from any negative reviews or low engagement metrics and iterate quickly to improve the user experience.

You have access to a range of reliable tools and techniques to gather insights, but some are better than others. Of course, it also matters how you use them.

Handfuls of online survey platforms exist that design and distribute surveys for you. To maximize response rates, keep surveys concise, use clear and unbiased language, and offer incentives when appropriate. Consider using skip logic to tailor questions based on respondents' previous answers. To do them well, you need to carefully select participants who represent the target audience. Use a skilled moderator to guide the conversation and encourage all participants to share their perspectives. Consider using online collaboration tools to facilitate idea sharing and note-taking.

These days, interviews can be done remotely, using video conferencing tools, if it’s not feasible or necessary in person. But be prepared by having a structured interview guide to ensure consistency across interviews. Actively listen to participants, ask probing questions, and create a comfortable environment to encourage open and honest responses. Get permission from participants to record interviews for accurate analysis.

Use tools to monitor social media platforms to gain insights into consumer sentiment, trends, and brand perception. Set up customized search queries to track relevant keywords, hashtags, or mentions. Analyze the data to identify patterns and emerging themes, and use these insights to inform marketing strategies.

Web analytics tools to track website traffic, user behavior, and conversion rates. Set up custom dashboards and reports to monitor key performance indicators. Using advanced features like cohort analysis or funnel visualization to gain deeper insights into user journeys and optimize marketing campaigns.

Executing marketing research implies operating at a high level using best practices. Here are some key considerations:

• Ensure data accuracy by using reliable data collection methods and tools. Validate and clean the data to remove any errors or inconsistencies. Consider using multiple data sources and triangulating the findings to enhance reliability. Implement quality control measures throughout the research process to minimize biases and inaccuracies.
• Stay updated with the latest industry trends, consumer behaviors, and technological advancements. Regularly monitor industry publications, attend conferences, and engage in professional networks to stay informed. This helps ensure that research efforts are aligned with current market dynamics and enables the identification of emerging opportunities.
• Market research is an iterative process. Continuously analyze and refine research findings to gain deeper insights and improve decision-making. Regularly review and update research methodologies to adapt to changing market conditions. Embrace a culture of learning and improvement to maximize the value of market research efforts.
• Prioritize ethical considerations and respect participant privacy throughout the research process. Obtain informed consent from participants and ensure their anonymity and confidentiality. Adhere to relevant data protection regulations, such as General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA). Use data in an ethical manner, avoiding any misuse or unauthorized sharing.

It is crucial to maintain a high level of professionalism, integrity, and ethical conduct throughout the research process to build trust with participants and stakeholders. Make sure to build regular evaluation into your processes. Staying to-to-date with research practices means always aligning with industry standards and ethical considerations.

We’ve seen it before. A business launches a new product without understanding the needs and pain points of its target customers. As a result, the product fails to resonate with the market, leading to low sales and customer dissatisfaction. With proper market research, they can identify the unmet needs of their target customers. The business proactively develops a product that addresses these pain points, which leads to higher customer satisfaction, increased sales, and potential market expansion.

Another example is how when a business launches a marketing campaign without understanding its target audience's preferences, behaviors, or motivations. The campaign doesn’t resonate with the audience, resulting in low engagement, wasted resources, and missed opportunities. With market research, the business gains a deep understanding of the demographics, preferences, and buying behaviors of its target audience. They’re able to develop targeted marketing strategies that effectively reach and engage the audience, leading to increased brand awareness, customer acquisition, and revenue growth.

The same is true for when a business launches a new initiative or campaign. When there aren’t clear goals or metrics for success, you can’t measure the impact of the initiative and make informed decisions for future growth. Market research enables the business to define key performance indicators (KPIs) for its initiatives. By collecting and analyzing relevant data, it can measure the success of its campaigns, products, or strategies. This data-driven approach allows for continuous improvement, optimization, and informed decision-making, leading to sustainable business growth.

When your business applies market research, it gains insights into your target customers' unmet needs and pain points. With that knowledge, you can now develop products and services tailored to address these demands, resulting in higher customer satisfaction and potential market expansion.

Market research enables you to understand your audience's demographics, preferences, and buying behaviors, facilitating the creation of targeted marketing strategies. This precision leads to heightened brand awareness, improved customer acquisition, and ultimately, revenue growth. It empowers you to define key performance indicators (KPIs) for your initiatives, allowing for data-driven decision-making and continuous optimization.

Solid market research fuels business growth. In a world where personalization is the standard and expectation, it should always be top of mind to understand your customers and their needs. With a range of modern tools and techniques, you can grab insights and tailor your strategies for success. By embracing the power of market research, you can stay ahead of the curve — always refinding your approach as you watch your business stand out in the crowd.