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Written by Mary Kate Miller | June 1, 2021

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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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How to do market research: The complete guide for your brand

Written by by Jacqueline Zote

Published on  April 13, 2023

Reading time  10 minutes

Blindly putting out content or products and hoping for the best is a thing of the past. Not only is it a waste of time and energy, but you’re wasting valuable marketing dollars in the process. Now you have a wealth of tools and data at your disposal, allowing you to develop data-driven marketing strategies . That’s where market research comes in, allowing you to uncover valuable insights to inform your business decisions.

Conducting market research not only helps you better understand how to sell to customers but also stand out from your competition. In this guide, we break down everything you need to know about market research and how doing your homework can help you grow your business.

Table of contents:

What is market research?

Why is market research important, types of market research, where to conduct market research.

• Steps for conducting market research
• Tools to use for market research

Market research is the process of gathering information surrounding your business opportunities. It identifies key information to better understand your audience. This includes insights related to customer personas and even trends shaping your industry.

Taking time out of your schedule to conduct research is crucial for your brand health. Here are some of the key benefits of market research:

Understand your customers’ motivations and pain points

Most marketers are out of touch with what their customers want. Moreover, these marketers are missing key information on what products their audience wants to buy.

Simply put, you can’t run a business if you don’t know what motivates your customers.

And spoiler alert: Your customers’ wants and needs change. Your customers’ behaviors today might be night and day from what they were a few years ago.

Market research holds the key to understanding your customers better. It helps you uncover their key pain points and motivations and understand how they shape their interests and behavior.

Figure out how to position your brand

Positioning is becoming increasingly important as more and more brands enter the marketplace. Market research enables you to spot opportunities to define yourself against your competitors.

Maybe you’re able to emphasize a lower price point. Perhaps your product has a feature that’s one of a kind. Finding those opportunities goes hand in hand with researching your market.

Maintain a strong pulse on your industry at large

Today’s marketing world evolves at a rate that’s difficult to keep up with.

Fresh products. Up-and-coming brands. New marketing tools. Consumers get bombarded with sales messages from all angles. This can be confusing and overwhelming.

By monitoring market trends, you can figure out the best tactics for reaching your target audience.

Not everyone conducts market research for the same reason. While some may want to understand their audience better, others may want to see how their competitors are doing. As such, there are different types of market research you can conduct depending on your goal.

Interview-based market research allows for one-on-one interactions. This helps the conversation to flow naturally, making it easier to add context. Whether this takes place in person or virtually, it enables you to gather more in-depth qualitative data.

Buyer persona research

Buyer persona research lets you take a closer look at the people who make up your target audience. You can discover the needs, challenges and pain points of each buyer persona to understand what they need from your business. This will then allow you to craft products or campaigns to resonate better with each persona.

Pricing research

In this type of research, brands compare similar products or services with a particular focus on pricing. They look at how much those products or services typically sell for so they can get more competitive with their pricing strategy.

Competitive analysis research

Competitor analysis gives you a realistic understanding of where you stand in the market and how your competitors are doing. You can use this analysis to find out what’s working in your industry and which competitors to watch out for. It even gives you an idea of how well those competitors are meeting consumer needs.

Depending on the competitor analysis tool you use, you can get as granular as you need with your research. For instance, Sprout Social lets you analyze your competitors’ social strategies. You can see what types of content they’re posting and even benchmark your growth against theirs.

Brand awareness research

Conducting brand awareness research allows you to assess your brand’s standing in the market. It tells you how well-known your brand is among your target audience and what they associate with it. This can help you gauge people’s sentiments toward your brand and whether you need to rebrand or reposition.

If you don’t know where to start with your research, you’re in the right place.

There’s no shortage of market research methods out there. In this section, we’ve highlighted research channels for small and big businesses alike.

Considering that Google sees a staggering 8.5 billion searches each day, there’s perhaps no better place to start.

A quick Google search is a potential goldmine for all sorts of questions to kick off your market research. Who’s ranking for keywords related to your industry? Which products and pieces of content are the hottest right now? Who’s running ads related to your business?

For example, Google Product Listing Ads can help highlight all of the above for B2C brands.

The same applies to B2B brands looking to keep tabs on who’s running industry-related ads and ranking for keyword terms too.

There’s no denying that email represents both an aggressive and effective marketing channel for marketers today. Case in point, 44% of online shoppers consider email as the most influential channel in their buying decisions.

Looking through industry and competitor emails is a brilliant way to learn more about your market. For example, what types of offers and deals are your competitors running? How often are they sending emails?

Email is also invaluable for gathering information directly from your customers. This survey message from Asana is a great example of how to pick your customers’ brains to figure out how you can improve your quality of service.

Industry journals, reports and blogs

Don’t neglect the importance of big-picture market research when it comes to tactics and marketing channels to explore. Look to marketing resources such as reports and blogs as well as industry journals

Keeping your ear to the ground on new trends and technologies is a smart move for any business. Sites such as Statista, Marketing Charts, AdWeek and Emarketer are treasure troves of up-to-date data and news for marketers.

And of course, there’s the  Sprout Insights blog . And invaluable resources like The Sprout Social Index™  can keep you updated on the latest social trends.

Social media

If you want to learn more about your target market, look no further than social media. Social offers a place to discover what your customers want to see in future products or which brands are killin’ it. In fact, social media is become more important for businesses than ever with the level of data available.

It represents a massive repository of real-time data and insights that are instantly accessible. Brand monitoring and social listening are effective ways to conduct social media research . You can even be more direct with your approach. Ask questions directly or even poll your audience to understand their needs and preferences.

The 5 steps for how to do market research

Now that we’ve covered the why and where, it’s time to get into the practical aspects of market research. Here are five essential steps on how to do market research effectively.

Step 1: Identify your research topic

First off, what are you researching about? What do you want to find out? Narrow down on a specific research topic so you can start with a clear idea of what to look for.

For example, you may want to learn more about how well your product features are satisfying the needs of existing users. This might potentially lead to feature updates and improvements. Or it might even result in new feature introductions.

Similarly, your research topic may be related to your product or service launch or customer experience. Or you may want to conduct research for an upcoming marketing campaign.

Step 2: Choose a buyer persona to engage

If you’re planning to focus your research on a specific type of audience, decide which buyer persona you want to engage. This persona group will serve as a representative sample of your target audience.

Engaging a specific group of audience lets you streamline your research efforts. As such, it can be a much more effective and organized approach than researching thousands (if not millions) of individuals.

You may be directing your research toward existing users of your product. To get even more granular, you may want to focus on users who have been familiar with the product for at least a year, for example.

Step 3: Start collecting data

The next step is one of the most critical as it involves collecting the data you need for your research. Before you begin, make sure you’ve chosen the right research methods that will uncover the type of data you need. This largely depends on your research topic and goals.

Remember that you don’t necessarily have to stick to one research method. You may use a combination of qualitative and quantitative approaches. So for example, you could use interviews to supplement the data from your surveys. Or you may stick to insights from your social listening efforts.

To keep things consistent, let’s look at this in the context of the example from earlier. Perhaps you can send out a survey to your existing users asking them a bunch of questions. This might include questions like which features they use the most and how often they use them. You can get them to choose an answer from one to five and collect quantitative data.

Plus, for qualitative insights, you could even include a few open-ended questions with the option to write their answers. For instance, you might ask them if there’s any improvement they wish to see in your product.

Step 4: Analyze results

Once you have all the data you need, it’s time to analyze it keeping your research topic in mind. This involves trying to interpret the data to look for a wider meaning, particularly in relation to your research goal.

So let’s say a large percentage of responses were four or five in the satisfaction rating. This means your existing users are mostly satisfied with your current product features. On the other hand, if the responses were mostly ones and twos, you may look for opportunities to improve. The responses to your open-ended questions can give you further context as to why people are disappointed.

Step 5: Make decisions for your business

Now it’s time to take your findings and turn them into actionable insights for your business. In this final step, you need to decide how you want to move forward with your new market insight.

What did you find in your research that would require action? How can you put those findings to good use?

The market research tools you should be using

To wrap things up, let’s talk about the various tools available to conduct speedy, in-depth market research. These tools are essential for conducting market research faster and more efficiently.

Social listening and analytics

Social analytics tools like Sprout can help you keep track of engagement across social media. This goes beyond your own engagement data but also includes that of your competitors. Considering how quickly social media moves, using a third-party analytics tool is ideal. It allows you to make sense of your social data at a glance and ensure that you’re never missing out on important trends.

Email marketing research tools

Keeping track of brand emails is a good idea for any brand looking to stand out in its audience’s inbox.

Tools such as MailCharts ,  Really Good Emails  and  Milled  can show you how different brands run their email campaigns.

Meanwhile, tools like  Owletter  allow you to monitor metrics such as frequency and send-timing. These metrics can help you understand email marketing strategies among competing brands.

Content marketing research

If you’re looking to conduct research on content marketing, tools such as  BuzzSumo  can be of great help. This tool shows you the top-performing industry content based on keywords. Here you can see relevant industry sites and influencers as well as which brands in your industry are scoring the most buzz. It shows you exactly which pieces of content are ranking well in terms of engagements and shares and on which social networks.

SEO and keyword tracking

Monitoring industry keywords is a great way to uncover competitors. It can also help you discover opportunities to advertise your products via organic search. Tools such as  Ahrefs  provide a comprehensive keyword report to help you see how your search efforts stack up against the competition.

Competitor comparison template

For the sake of organizing your market research, consider creating a competitive matrix. The idea is to highlight how you stack up side-by-side against others in your market. Use a  social media competitive analysis template  to track your competitors’ social presence. That way, you can easily compare tactics, messaging and performance. Once you understand your strengths and weaknesses next to your competitors, you’ll find opportunities as well.

Customer persona creator

Finally, customer personas represent a place where all of your market research comes together. You’d need to create a profile of your ideal customer that you can easily refer to. Tools like  Xtensio  can help in outlining your customer motivations and demographics as you zero in on your target market.

Build a solid market research strategy

Having a deeper understanding of the market gives you leverage in a sea of competitors. Use the steps and market research tools we shared above to build an effective market research strategy.

But keep in mind that the accuracy of your research findings depends on the quality of data collected. Turn to Sprout’s social media analytics tools to uncover heaps of high-quality data across social networks.

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Market Research: A How-To Guide and Template

Discover the different types of market research, how to conduct your own market research, and use a free template to help you along the way.

MARKET RESEARCH KIT

5 Research and Planning Templates + a Free Guide on How to Use Them in Your Market Research

Published: 02/21/24

Today's consumers have a lot of power. As a business, you must have a deep understanding of who your buyers are and what influences their purchase decisions.

Enter: Market Research.

Whether you're new to market research or not, I created this guide to help you conduct a thorough study of your market, target audience, competition, and more. Let’s dive in.

Table of Contents

What is market research?

Primary vs. secondary research, types of market research, how to do market research, market research report template, market research examples.

Market research is the process of gathering information about your target market and customers to verify the success of a new product, help your team iterate on an existing product, or understand brand perception to ensure your team is effectively communicating your company's value effectively.

Market research can answer various questions about the state of an industry. But if you ask me, 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.

How? Consider these two things:

• 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.

The market research services market is growing rapidly, which signifies a strong interest in market research as we enter 2024. The market is expected to grow from roughly $75 billion in 2021 to $90.79 billion in 2025 .

Free Market Research Kit

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• Survey Template
• Focus Group Template

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Why do market research?

Market research allows you to meet your buyer where they are.

As our world becomes louder and demands more of our attention, this proves invaluable.

By understanding your buyer's problems, pain points, and desired solutions, you can aptly craft your product or service to naturally appeal to them.

Market research also provides insight into the following:

• Where your target audience and current customers conduct their product or service research
• Which of your competitors your target audience looks to for information, options, or purchases
• What's trending in your industry and in the eyes of your buyer
• Who makes up your market and what their challenges are
• What influences purchases and conversions among your target audience
• Consumer attitudes about a particular topic, pain, product, or brand
• Whether there‘s demand for the business initiatives you’re investing in
• Unaddressed or underserved customer needs that can be flipped into selling opportunity
• Attitudes about pricing for a particular product or service

Ultimately, 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.

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.

That said, there are two main types of market research that your business can conduct to collect actionable information on your products: primary research and secondary research.

Primary Research

Primary research is the pursuit of first-hand information about your market and the customers within your market.

It's useful when segmenting your market and establishing your buyer personas.

Primary market research tends to fall into one of two buckets:

• Exploratory Primary Research: This kind of primary market research normally takes place as a first step — before any specific research has been performed — and may involve open-ended interviews or surveys with small numbers of people.
• Specific Primary Research: This type of research often follows exploratory research. In specific research, you take a smaller or more precise segment of your audience and ask questions aimed at solving a suspected problem.

Secondary Research

Secondary research is all the data and public records you have at your disposal to draw conclusions from (e.g. trend reports, market statistics, industry content, and sales data you already have on your business).

Secondary research is particularly useful for analyzing your competitors . The main buckets your secondary market research will fall into include:

• Public Sources: These sources are your first and most-accessible layer of material when conducting secondary market research. They're often free to find and review — like government statistics (e.g., from the U.S. Census Bureau ).
• Commercial Sources: These sources often come in the form of pay-to-access market reports, consisting of industry insight compiled by a research agency like Pew , Gartner , or Forrester .
• Internal Sources: This is the market data your organization already has like average revenue per sale, customer retention rates, and other historical data that can help you draw conclusions on buyer needs.
• Focus Groups
• Product/ Service Use Research
• Observation-Based Research
• Buyer Persona Research
• Market Segmentation Research
• Pricing Research
• Competitive Analysis Research
• Customer Satisfaction and Loyalty Research
• Brand Awareness Research
• Campaign Research

1. Interviews

Interviews allow for face-to-face discussions so you can allow for a natural flow of conversation. Your interviewees can answer questions about themselves to help you design your buyer personas and shape your entire marketing strategy.

2. Focus Groups

Focus groups provide you with a handful of carefully-selected people that can test out your product and provide feedback. This type of market research can give you ideas for product differentiation.

3. Product/Service Use Research

Product or service use research offers insight into how and why your audience uses your product or service. This type of market research also gives you an idea of the product or service's usability for your target audience.

4. Observation-Based Research

Observation-based research allows you to sit back and watch the ways in which your target audience members go about using your product or service, what works well in terms of UX , and which aspects of it could be improved.

5. Buyer Persona Research

Buyer persona research gives you a realistic look at who makes up your target audience, what their challenges are, why they want your product or service, and what they need from your business or brand.

6. Market Segmentation Research

Market segmentation research allows you to categorize your target audience into different groups (or segments) based on specific and defining characteristics. This way, you can determine effective ways to meet their needs.

7. Pricing Research

Pricing research helps you define your pricing strategy . It gives you an idea of what similar products or services in your market sell for and what your target audience is willing to pay.

8. Competitive Analysis

Competitive analyses give you a deep understanding of the competition in your market and industry. You can learn about what's doing well in your industry and how you can separate yourself from the competition .

9. Customer Satisfaction and Loyalty Research

Customer satisfaction and loyalty research gives you a look into how you can get current customers to return for more business and what will motivate them to do so (e.g., loyalty programs , rewards, remarkable customer service).

10. Brand Awareness Research

Brand awareness research tells you what your target audience knows about and recognizes from your brand. It tells you about the associations people make when they think about your business.

11. Campaign Research

Campaign research entails looking into your past campaigns and analyzing their success among your target audience and current customers. The goal is to use these learnings to inform future campaigns.

• Define your buyer persona.
• Identify a persona group to engage.
• Prepare research questions for your market research participants.
• List your primary competitors.
• Summarize your findings.

1. Define your buyer persona.

You have to understand who your customers are and how customers in your industry make buying decisions.

This is where your buyer personas come in handy. Buyer personas — sometimes referred to as marketing personas — are fictional, generalized representations of your ideal customers.

Use a free tool to create a buyer persona that your entire company can use to market, sell, and serve better.

The Beginner's Guide to the Competitive Matrix [+ Templates]

What is a Competitive Analysis — and How Do You Conduct One?

9 Best Marketing Research Methods to Know Your Buyer Better [+ Examples]

SWOT Analysis: How To Do One [With Template & Examples]

28 Tools & Resources for Conducting Market Research

TAM, SAM & SOM: What Do They Mean & How Do You Calculate Them?

How to Run a Competitor Analysis [Free Guide]

5 Challenges Marketers Face in Understanding Audiences [New Data + Market Researcher Tips]

Causal Research: The Complete Guide

Free Guide & Templates to Help Your Market Research

Marketing software that helps you drive revenue, save time and resources, and measure and optimize your investments — all on one easy-to-use platform

How to Do Market Research: A Comprehensive Guide for 2024

• by Alice Ananian
• September 4, 2024

Imagine launching a product that flies off the shelves or watching a marketing campaign go viral. Now, picture the opposite: a product launch met with crickets or an ad campaign that falls flat. The difference between these scenarios often boils down to one critical factor: market research. In the high-stakes business world, it’s not just a tool—it’s your secret weapon. Whether you’re a startup founder, product developer, or marketing professional, mastering market research can be your ticket to business success.

This comprehensive guide is your roadmap to conducting market research that doesn’t just inform—it transforms. We’ll dive deep into the art and science of understanding your market, from defining research objectives to analyzing data and implementing game-changing insights. By the time you finish reading, you’ll be armed with the knowledge to make decisions that aren’t just informed but inspired. Ready to turn market research into your competitive edge? Let’s dive in.

What is Market Research?

Market research is the systematic process of gathering, analyzing, and interpreting information about a target market, competitors, and the overall business environment. It’s the foundation upon which successful business strategies are built, providing crucial insights that inform decision-making across all aspects of an organization.

The importance of market research for businesses cannot be overstated. It reduces risk, identifies opportunities, and ensures that products and services align with customer needs.

Key benefits of conducting market research include:

• Identifying market opportunities and threats
• Understanding customer needs and preferences
• Evaluating competitive landscape
• Optimizing marketing strategies
• Forecasting market trends
• Improving product development
• Enhancing customer satisfaction
• Making data-driven business decisions

Ask the Right Users at the Right Time

Types of Market Research

The main divisions of market research types are primary vs. secondary and quantitative vs. qualitative. Let’s take a look at how they differ. 

Primary vs. Secondary Research

Market research can be categorized into two main types: primary and secondary research.

Primary research involves collecting original data directly from sources such as customers, competitors, or industry experts. This type of research is tailored to your specific business needs and provides up-to-date, relevant information.

Secondary research , on the other hand, involves analyzing existing data from published sources such as industry reports, government statistics, or academic studies. This type of research is often quicker and less expensive than primary research.

For example, a company launching a new fitness app might conduct primary research by surveying potential users about their exercise habits and app preferences. They might also perform secondary research by analyzing reports on the fitness app market and user demographics from industry publications.

Qualitative vs. Quantitative Research

Another important distinction in market research is between qualitative and quantitative methods.

Qualitative research focuses on gathering non-numerical data to understand motivations, opinions, and attitudes. It often involves open-ended questions and in-depth exploration of topics. Examples include:

• In-depth interviews

Focus groups

• Observational studies

Quantitative research , in contrast, deals with numerical data and statistical analysis. It aims to quantify opinions, behaviors, or other defined variables. Examples include:

• Surveys with closed-ended questions
• Sales data analysis
• Website analytics

To illustrate the difference, consider a company researching customer satisfaction. A qualitative approach might involve conducting in-depth interviews to understand the reasons behind customer satisfaction or dissatisfaction. A quantitative approach could involve sending out a survey asking customers to rate their satisfaction on a scale of 1 to 10 and analyzing the resulting numerical data.

Step-by-Step Guide: How to Do Market Research

Market research is a crucial process that helps businesses understand their target audience, assess market conditions, and make informed decisions to drive success.

1. Define your research objectives with precision

Gain clarity on the purpose of your market research. Are you exploring customer tastes and trends, testing the appeal of a new product or service, or gauging the size and potential of your market? Your research goals should be clearly defined, as they form the foundation of your entire research project.

2. Identify your target audience accurately

Figure out who holds the keys to the information you need. Is it your existing clients, potential customers, or particular demographic segments? Correct audience identification is key to gathering reliable and relevant data.

Pro Tip: If you’re struggling to pinpoint your target audience, use Prelaunch’s Customer Clusters to quickly identify and segment your potential customers based on real data. This powerful tool helps you uncover key demographic and psychographic insights.

3. Choose the most suitable research methods

The methodology should match your objectives and chosen audience. Whether it’s primary or secondary, qualitative or quantitative, or a mixture of all, your research methods should adequately serve your research needs.

4. Develop a well-defined research plan

A comprehensive plan streamlines your research process. It includes the timeline for your research, budget allocation, individual method approaches, how you’ll obtain participants, the type of questions you’ll pose, and your data collection and analysis methods. A robust research plan ensures the effectiveness of your research.

5. Collect extensive and valuable data

Implement your research plan and gather data via surveys, interviews, focus groups, or any other methods you’ve chosen. It’s essential to collect a rich and varied data set to unearth meaningful insights.

6. Analyze and interpret the data proficiently

Leverage suitable analytical tools and techniques to dissect your data. Search for patterns, trends, and valuable insights that speak to your research objectives. This is where the true value of your research begins to emerge. It’s also where market segmentation comes into play.

7. Present your findings professionally

Transform your raw data into a comprehensive, easy-to-understand report. Use visual aids such as charts and graphs to represent your data effectively, making it easily digestible for the reader.

8. Make smart, data-driven decisions

The crux of your market research is the action you take based on your findings. Use the insights from your research to form your business strategies and decisions. Keep in mind, the true power of market research is not just in the gathering of data but in its strategic application.

Market Research Methods

Surveys and questionnaires.

Surveys and questionnaires stand as versatile tools in market research. They have the potential to collect both qualitative and quantitative data from a large number of respondents, helping to grasp a broad understanding of consumer behavior and trends.

In-depth interviews provide detailed insights into individual opinions and experiences and capture the nuances of personal perspectives. Whether structured, semi-structured, or unstructured, each approach unfolds layers of consumer thought processes, enhancing your strategic decisions.

Pro tip: Want the inside scoop on what your future customers really think? Try Prelaunch’s AI-powered in-depth interviews feature! Chat with folks who’ve already shown interest in your product, and let the AI do the heavy lifting of analyzing all that juicy feedback. You’ll get neat customer segments and spot-on suggestions to make your product even better. It’s like having a crystal ball for your launch, but way more fun (and actually useful)!

Focus groups involve guided discussions with small groups of participants, a unique approach that allows for the exploration of group dynamics and collective opinions. This method provides a window into communal responses to products or services and their varying influences within a shared context.

Observational research

Observational research, the subtle art of watching and recording how consumers interact with products or services in real-world settings, can reveal intricacies of consumer behavior that other methods might overlook.

Experimental research

The experimental research method, a systematic approach of manipulating variables to test cause-and-effect relationships, has a vital role in progressing aspects such as product development or pricing strategies.

Content analysis

Content analysis involves systematically analyzing communications like social media posts, customer reviews, or competitor marketing materials. This method offers a deep dive into the public perception and discourse surrounding your brand.

Social media listening

Social media listening carries an importance more than ever in this digital age. Monitoring social media platforms for mentions of your brand, competitors, or industry-related topics can help you keep your finger on the pulse of market sentiment.

Competitive analysis

Competitive analysis, a comprehensive research into your competitors’ strategies, strengths, and weaknesses, enables you to identify opportunities and threats in the market, and to build benchmarking standards for your brand.

Pro tip: Try using the Prelaunch AI Market Research tool that quickly gives you a summary of what people think of your competitors’ products based on their comment and feedback on Amazon.com. Simply find the Amazon product links, copy-paste and presto! 

Tools and Resources for Market Research

This is a comprehensive listing of all the tools and resources you’ll need to conduct effective market research.

Survey Tools

• SurveyMonkey : An online survey platform that allows users to create, distribute, and analyze surveys to gather feedback and insights
• Google Forms : A free tool for creating customizable surveys and forms to collect data and responses easily.
• Typeform : A versatile survey and form-building tool designed to create engaging and interactive questionnaires.

Social Media Analytics

• Hootsuite : A social media management platform that schedules posts, monitors social media activity, and provides analytics.
• Sprout Social : A social media management and analytics tool that helps businesses manage their social media presence and engage with audiences.
• Brandwatch : A social listening and analytics tool that provides insights into brand perception and market trends through social media data.

Website Analytics

• Google Analytics : A free web analytics service that tracks and reports website traffic, user behavior, and conversion metrics.

Market Research Databases

• Statista : A statistics portal that provides access to a wide range of industry, market, and consumer data.
• IBISWorld : A market research database offering detailed industry reports and insights into market trends and forecasts.
• MarketResearch.com : A platform that provides access to a vast array of market research reports and industry insights.

Customer Relationship Management (CRM) Software

• Salesforce : A comprehensive CRM software that manages customer relationships, sales, and marketing activities.
• HubSpot : A CRM and inbound marketing platform that integrates tools for managing contacts, marketing automation, and sales.

Concept Testing Platforms

• Prelaunch : Allows you to validate product concepts quickly and efficiently, gathering valuable market feedback before full-scale launch.

Professional Market Research Services

• Nielsen : A global measurement and data analytics company providing insights into consumer behavior and media consumption.
• Ipsos : A market research firm that offers data and insights on consumer behavior, market trends, and public opinion.
• Kantar : A global data, research, and consultancy company providing insights into consumer behavior and market dynamics.

Real-World Examples of Successful Market Research

To help provide you with some context of just how integral market research is, we’ve compiled some real-world examples. 

Starbucks – Building a Brand on Customer Insights

Starbucks, the global coffeehouse chain, is a prime example of a company that has leveraged market research to build a strong brand. Their success story revolves around understanding their customers deeply and tailoring their offerings accordingly.

• Understanding the Customer: Starbucks began by conducting extensive market research to identify the needs and preferences of their target audience. They discovered that customers were seeking more than just coffee; they wanted an experience.
• Creating a Unique Experience: Based on their research, Starbucks focused on creating a welcoming atmosphere, offering high-quality coffee, and providing excellent customer service. This emphasis on experience differentiation set them apart from competitors.
• Iterative Research and Development: Starbucks continuously conducts market research to refine their offerings. They gather customer feedback through surveys, social media listening, and in-store observations. This data helps them introduce new products, adjust pricing, and optimize store layouts.
• Loyalty Program and Personalization: Starbucks’ loyalty program, My Starbucks Rewards, is a testament to their commitment to customer-centricity. By collecting detailed information about customer preferences, they can offer personalized recommendations, rewards, and promotions.

Netflix – Data-Driven Content Strategy

Netflix, a global streaming service, has mastered the art of using data to inform its content strategy.

• Analyzing Viewing Habits: Netflix collects vast amounts of data on viewer behavior, including what they watch, when they watch, and how they interact with content. This data provides insights into viewer preferences and trends.
• Content Recommendation Engine: Netflix’s recommendation algorithm is powered by data analysis. By understanding individual preferences, the platform can suggest shows and movies that are likely to be enjoyed by each user.
• Original Content Development: Netflix uses data to identify potential hits for original content. By analyzing viewer data, they can identify popular genres, themes, and actors, which helps them develop shows that are more likely to be successful.

These examples demonstrate the power of market research in driving business success. By understanding customers, identifying market trends, and making data-driven decisions, companies can create products and services that resonate with their target audience, build strong brands, and achieve sustainable growth.

Common Market Research Mistakes and How to Avoid Them

When conducting market research, it’s crucial to be aware of potential pitfalls that can undermine the effectiveness of your findings. Here are some common mistakes to avoid:

Insufficient sample size is a common error that can undermine your market research efforts. Ensuring your sample size is large enough to be statistically significant and truly representative of your target population is paramount. It’s crucial to use an appropriate sample size to generate reliable findings that can guide your decision-making processes.

Leading questions in surveys is another frequent mistake. It’s vital to frame your questions neutrally to prevent biasing responses. This involves careful crafting and review of your questions to identify and eliminate potential bias. Consider having your questions reviewed by neutral parties to ensure their impartiality.

Ignoring secondary research can be damaging to your research efforts. Existing data sources can provide invaluable insights and should not be overlooked. It’s advisable to start your research process with secondary research to inform the design of your primary research. This could provide valuable context and save time and resources.

Misinterpreting data can lead to faulty conclusions and misguided strategies. It’s crucial to be cautious when interpreting your research findings. Consider all possible explanations, and don’t hesitate to seek expert help if needed. Always remember, data is only as good as the interpretations made from it.

Neglecting ongoing research is a mistake that can make your business strategy outdated. Market conditions are constantly changing, and your research should reflect this. Implementing regular research practices can help you stay updated on market trends and customer needs, keeping your business strategy relevant and effective.

The Future of Market Research

The landscape of market research is experiencing a rapid metamorphosis fostered by technological innovations and the shifting patterns of consumer behaviors. Here we delve deeper into these transformative trends:

Artificial Intelligence and Machine Learning : These technologies are revolutionizing the data analysis process. AI and Machine Learning algorithms can comb through enormous data volumes at lightning speed, unearthing intricate insights that would be arduous to glean manually, thus transforming the efficiency and depth of market research.

Comprehensive Concept Validating Software: As you can see in the Tools and Resources section above, there are several platforms available for any and all steps that go into conducting market research. One trend worth noting is that more and more, companies will seek to use tools that have an all-in-one approach so they don’t have to worry about syncing their data across multiple spaces. Trailblazing platforms like this include Prelaunch that give any creator the power to digitally test an idea before spending millions on prototyping and manufacturing.

Big Data : The escalating accessibility of vast data sets is shedding new light into consumer behavior and market trends. By analyzing this big data, researchers can gauge detailed market patterns, predict future trends, and make more informed decisions, thereby fostering a deeper understanding of the marketplace.

Mobile Research : The omnipresence of smartphones has triggered a shift towards mobile-first research methodologies. These enable researchers to connect with consumers on devices they use daily, thereby collecting real-time data and gaining more authentic and complete insights into consumer behavior.

Virtual and Augmented Reality : The advent of these cutting-edge technologies has ushered in an era of new possibilities for product testing and consumer behavior studies. VR and AR can create immersive, realistic environments where consumers can interact with products or services, offering rich, multidimensional data for market researchers.

Ethical Data Collection : Amid growing concerns around data privacy, the future of market research hinges on transparent and ethical data collection. Ensuring that data is obtained through fair practices and used responsibly is becoming paramount, as trust becomes a crucial factor in consumer relations.

Speculations indicate that the market researchers of the future will have to proficiently meld traditional research methods with emerging technologies. The emphasis will be on agility and a commitment to continued learning to keep abreast with the swiftly evolving markets.

Market Research Takeaways

Market research is a powerful tool that can drive business success by providing crucial insights into your market, customers, and competitors. By following the steps outlined in this guide and leveraging the appropriate tools and methods, you can conduct effective market research that informs your business strategies and decision-making processes.

Remember, good market research is an ongoing process. Markets are constantly evolving, and staying ahead requires continuous learning and adaptation. Whether you’re validating a new product concept, optimizing your marketing strategies, or exploring new market opportunities, make market research an integral part of your business practices.

Ready to put your market research skills into practice? Start by defining your research objectives and planning your first study. And if you’re looking to validate a new product or service concept quickly and efficiently, consider using Prelaunch.com. With its powerful concept testing capabilities, Prelaunch can help you gather valuable market feedback and set your business on the path to success.

Happy researching!

Alice Ananian

Alice has over 8 years experience as a strong communicator and creative thinker. She enjoys helping companies refine their branding, deepen their values, and reach their intended audiences through language.

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

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

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

Key Takeaways

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

Market Research

How market research works.

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

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

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

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

Primary Market Research vs. Secondary Market Research

Market research usually consists of a combination of:

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

Primary Market Research

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

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

Secondary Market Research

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

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

History of Market Research

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

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

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

Types of Market Research

Face-to-face interviews.

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

Market research and surveys were adapted from these early techniques.

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

Focus Groups

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

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

Phone Research

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

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

Survey Research

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

Online Market Research

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

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

How to Conduct Market Research

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

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

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

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

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

Benefits of Market Research

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

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

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

Example of Market Research

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

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

What Are the Main Types of Market Research?

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

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

What Is Online Market Research?

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

What Are Paid Market Research Surveys?

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

What Is a Market Study?

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

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

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How to do market research in 4 steps: a lean approach to marketing research

From pinpointing your target audience and assessing your competitive advantage, to ongoing product development and customer satisfaction efforts, market research is a practice your business can only benefit from.

Learn how to conduct quick and effective market research using a lean approach in this article full of strategies and practical examples. 

Last updated

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A comprehensive (and successful) business strategy is not complete without some form of market research—you can’t make informed and profitable business decisions without truly understanding your customer base and the current market trends that drive your business.

In this article, you’ll learn how to conduct quick, effective market research  using an approach called 'lean market research'. It’s easier than you might think, and it can be done at any stage in a product’s lifecycle.

How to conduct lean market research in 4 steps

What is market research, why is market research so valuable, advantages of lean market research, 4 common market research methods, 5 common market research questions, market research faqs.

We’ll jump right into our 4-step approach to lean market research. To show you how it’s done in the real world, each step includes a practical example from Smallpdf , a Swiss company that used lean market research to reduce their tool’s error rate by 75% and boost their Net Promoter Score® (NPS) by 1%.

Research your market the lean way...

From on-page surveys to user interviews, Hotjar has the tools to help you scope out your market and get to know your customers—without breaking the bank.

The following four steps and practical examples will give you a solid market research plan for understanding who your users are and what they want from a company like yours.

1. Create simple user personas

A user persona is a semi-fictional character based on psychographic and demographic data from people who use websites and products similar to your own. Start by defining broad user categories, then elaborate on them later to further segment your customer base and determine your ideal customer profile .

How to get the data: use on-page or emailed surveys and interviews to understand your users and what drives them to your business.

How to do it right: whatever survey or interview questions you ask, they should answer the following questions about the customer:

Who are they?

What is their main goal?

What is their main barrier to achieving this goal?

Pitfalls to avoid:

Don’t ask too many questions! Keep it to five or less, otherwise you’ll inundate them and they’ll stop answering thoughtfully.

Don’t worry too much about typical demographic questions like age or background. Instead, focus on the role these people play (as it relates to your product) and their goals.

How Smallpdf did it: Smallpdf ran an on-page survey for a couple of weeks and received 1,000 replies. They learned that many of their users were administrative assistants, students, and teachers.

Next, they used the survey results to create simple user personas like this one for admins:

Who are they? Administrative Assistants.

What is their main goal? Creating Word documents from a scanned, hard-copy document or a PDF where the source file was lost.

What is their main barrier to achieving it? Converting a scanned PDF doc to a Word file.

💡Pro tip: Smallpdf used Hotjar Surveys to run their user persona survey. Our survey tool helped them avoid the pitfalls of guesswork and find out who their users really are, in their own words. 

You can design a survey and start running it in minutes with our easy-to-use drag and drop builder. Customize your survey to fit your needs, from a sleek one-question pop-up survey to a fully branded questionnaire sent via email. 

We've also created 40+ free survey templates that you can start collecting data with, including a user persona survey like the one Smallpdf used.

2. Conduct observational research

Observational research involves taking notes while watching someone use your product (or a similar product).

Overt vs. covert observation

Overt observation involves asking customers if they’ll let you watch them use your product. This method is often used for user testing and it provides a great opportunity for collecting live product or customer feedback .

Covert observation means studying users ‘in the wild’ without them knowing. This method works well if you sell a type of product that people use regularly, and it offers the purest observational data because people often behave differently when they know they’re being watched. 

Tips to do it right:

Record an entry in your field notes, along with a timestamp, each time an action or event occurs.

Make note of the users' workflow, capturing the ‘what,’ ‘why,’ and ‘for whom’ of each action.

Don’t record identifiable video or audio data without consent. If recording people using your product is helpful for achieving your research goal, make sure all participants are informed and agree to the terms.

Don’t forget to explain why you’d like to observe them (for overt observation). People are more likely to cooperate if you tell them you want to improve the product.

💡Pro tip: while conducting field research out in the wild can wield rewarding results, you can also conduct observational research remotely. Hotjar Recordings is a tool that lets you capture anonymized user sessions of real people interacting with your website. 

Observe how customers navigate your pages and products to gain an inside look into their user behavior . This method is great for conducting exploratory research with the purpose of identifying more specific issues to investigate further, like pain points along the customer journey and opportunities for optimizing conversion .

With Hotjar Recordings you can observe real people using your site without capturing their sensitive information

How Smallpdf did it: here’s how Smallpdf observed two different user personas both covertly and overtly.

Observing students (covert): Kristina Wagner, Principle Product Manager at Smallpdf, went to cafes and libraries at two local universities and waited until she saw students doing PDF-related activities. Then she watched and took notes from a distance. One thing that struck her was the difference between how students self-reported their activities vs. how they behaved (i.e, the self-reporting bias). Students, she found, spent hours talking, listening to music, or simply staring at a blank screen rather than working. When she did find students who were working, she recorded the task they were performing and the software they were using (if she recognized it).

Observing administrative assistants (overt): Kristina sent emails to admins explaining that she’d like to observe them at work, and she asked those who agreed to try to batch their PDF work for her observation day. While watching admins work, she learned that they frequently needed to scan documents into PDF-format and then convert those PDFs into Word docs. By observing the challenges admins faced, Smallpdf knew which products to target for improvement.

“Data is really good for discovery and validation, but there is a bit in the middle where you have to go and find the human.”

3. Conduct individual interviews

Interviews are one-on-one conversations with members of your target market. They allow you to dig deep and explore their concerns, which can lead to all sorts of revelations.

Listen more, talk less. Be curious.

Act like a journalist, not a salesperson. Rather than trying to talk your company up, ask people about their lives, their needs, their frustrations, and how a product like yours could help.

Ask "why?" so you can dig deeper. Get into the specifics and learn about their past behavior.

Record the conversation. Focus on the conversation and avoid relying solely on notes by recording the interview. There are plenty of services that will transcribe recorded conversations for a good price (including Hotjar!).

Avoid asking leading questions , which reveal bias on your part and pushes respondents to answer in a certain direction (e.g. “Have you taken advantage of the amazing new features we just released?).

Don't ask loaded questions , which sneak in an assumption which, if untrue, would make it impossible to answer honestly. For example, we can’t ask you, “What did you find most useful about this article?” without asking whether you found the article useful in the first place.

Be cautious when asking opinions about the future (or predictions of future behavior). Studies suggest that people aren’t very good at predicting their future behavior. This is due to several cognitive biases, from the misguided exceptionalism bias (we’re good at guessing what others will do, but we somehow think we’re different), to the optimism bias (which makes us see things with rose-colored glasses), to the ‘illusion of control’ (which makes us forget the role of randomness in future events).

How Smallpdf did it: Kristina explored her teacher user persona by speaking with university professors at a local graduate school. She learned that the school was mostly paperless and rarely used PDFs, so for the sake of time, she moved on to the admins.

A bit of a letdown? Sure. But this story highlights an important lesson: sometimes you follow a lead and come up short, so you have to make adjustments on the fly. Lean market research is about getting solid, actionable insights quickly so you can tweak things and see what works.

💡Pro tip: to save even more time, conduct remote interviews using an online user research service like Hotjar Engage , which automates the entire interview process, from recruitment and scheduling to hosting and recording.

You can interview your own customers or connect with people from our diverse pool of 200,000+ participants from 130+ countries and 25 industries. And no need to fret about taking meticulous notes—Engage will automatically transcribe the interview for you.

4. Analyze the data (without drowning in it)

The following techniques will help you wrap your head around the market data you collect without losing yourself in it. Remember, the point of lean market research is to find quick, actionable insights.

A flow model is a diagram that tracks the flow of information within a system. By creating a simple visual representation of how users interact with your product and each other, you can better assess their needs.

You’ll notice that admins are at the center of Smallpdf’s flow model, which represents the flow of PDF-related documents throughout a school. This flow model shows the challenges that admins face as they work to satisfy their own internal and external customers.

Affinity diagram

An affinity diagram is a way of sorting large amounts of data into groups to better understand the big picture. For example, if you ask your users about their profession, you’ll notice some general themes start to form, even though the individual responses differ. Depending on your needs, you could group them by profession, or more generally by industry.

We wrote a guide about how to analyze open-ended questions to help you sort through and categorize large volumes of response data. You can also do this by hand by clipping up survey responses or interview notes and grouping them (which is what Kristina does).

“For an interview, you will have somewhere between 30 and 60 notes, and those notes are usually direct phrases. And when you literally cut them up into separate pieces of paper and group them, they should make sense by themselves.”

Pro tip: if you’re conducting an online survey with Hotjar, keep your team in the loop by sharing survey responses automatically via our Slack and Microsoft Team integrations. Reading answers as they come in lets you digest the data in pieces and can help prepare you for identifying common themes when it comes time for analysis.

Hotjar lets you easily share survey responses with your team

Customer journey map

A customer journey map is a diagram that shows the way a typical prospect becomes a paying customer. It outlines their first interaction with your brand and every step in the sales cycle, from awareness to repurchase (and hopefully advocacy).

The above  customer journey map , created by our team at Hotjar, shows many ways a customer might engage with our tool. Your map will be based on your own data and business model.

📚 Read more: if you’re new to customer journey maps, we wrote this step-by-step guide to creating your first customer journey map in 2 and 1/2 days with free templates you can download and start using immediately.

Next steps: from research to results

So, how do you turn market research insights into tangible business results? Let’s look at the actions Smallpdf took after conducting their lean market research: first they implemented changes, then measured the impact.

Implement changes

Based on what Smallpdf learned about the challenges that one key user segment (admins) face when trying to convert PDFs into Word files, they improved their ‘PDF to Word’ conversion tool.

We won’t go into the details here because it involves a lot of technical jargon, but they made the entire process simpler and more straightforward for users. Plus, they made it so that their system recognized when you drop a PDF file into their ‘Word to PDF’ converter instead of the ‘PDF to Word’ converter, so users wouldn’t have to redo the task when they made that mistake. 

In other words: simple market segmentation for admins showed a business need that had to be accounted for, and customers are happier overall after Smallpdf implemented an informed change to their product.

Measure results

According to the Lean UX model, product and UX changes aren’t retained unless they achieve results.

Smallpdf’s changes produced:

A 75% reduction in error rate for the ‘PDF to Word’ converter

A 1% increase in NPS

Greater confidence in the team’s marketing efforts

"With all the changes said and done, we've cut our original error rate in four, which is huge. We increased our NPS by +1%, which isn't huge, but it means that of the users who received a file, they were still slightly happier than before, even if they didn't notice that anything special happened at all.”

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Market research (or marketing research) is any set of techniques used to gather information and better understand a company’s target market. This might include primary research on brand awareness and customer satisfaction or secondary market research on market size and competitive analysis. Businesses use this information to design better products, improve user experience, and craft a marketing strategy that attracts quality leads and improves conversion rates.

David Darmanin, one of Hotjar’s founders, launched two startups before Hotjar took off—but both companies crashed and burned. Each time, he and his team spent months trying to design an amazing new product and user experience, but they failed because they didn’t have a clear understanding of what the market demanded.

With Hotjar, they did things differently . Long story short, they conducted market research in the early stages to figure out what consumers really wanted, and the team made (and continues to make) constant improvements based on market and user research.

Without market research, it’s impossible to understand your users. Sure, you might have a general idea of who they are and what they need, but you have to dig deep if you want to win their loyalty.

Here’s why research matters:

Obsessing over your users is the only way to win. If you don’t care deeply about them, you’ll lose potential customers to someone who does.

Analytics gives you the ‘what’, while research gives you the ‘why’. Big data, user analytics , and dashboards can tell you what people do at scale, but only research can tell you what they’re thinking and why they do what they do. For example, analytics can tell you that customers leave when they reach your pricing page, but only research can explain why.

Research beats assumptions, trends, and so-called best practices. Have you ever watched your colleagues rally behind a terrible decision? Bad ideas are often the result of guesswork, emotional reasoning, death by best practices , and defaulting to the Highest Paid Person’s Opinion (HiPPO). By listening to your users and focusing on their customer experience , you’re less likely to get pulled in the wrong direction.

Research keeps you from planning in a vacuum. Your team might be amazing, but you and your colleagues simply can’t experience your product the way your customers do. Customers might use your product in a way that surprises you, and product features that seem obvious to you might confuse them. Over-planning and refusing to test your assumptions is a waste of time, money, and effort because you’ll likely need to make changes once your untested business plan gets put into practice.

Lean User Experience (UX) design is a model for continuous improvement that relies on quick, efficient research to understand customer needs and test new product features.

Lean market research can help you become more...

Efficient: it gets you closer to your customers, faster.

Cost-effective: no need to hire an expensive marketing firm to get things started.

Competitive: quick, powerful insights can place your products on the cutting edge.

As a small business or sole proprietor, conducting lean market research is an attractive option when investing in a full-blown research project might seem out of scope or budget.

There are lots of different ways you could conduct market research and collect customer data, but you don’t have to limit yourself to just one research method. Four common types of market research techniques include surveys, interviews, focus groups, and customer observation.

Which method you use may vary based on your business type: ecommerce business owners have different goals from SaaS businesses, so it’s typically prudent to mix and match these methods based on your particular goals and what you need to know.

1. Surveys: the most commonly used

Surveys are a form of qualitative research that ask respondents a short series of open- or closed-ended questions, which can be delivered as an on-screen questionnaire or via email. When we asked 2,000 Customer Experience (CX) professionals about their company’s approach to research , surveys proved to be the most commonly used market research technique.

What makes online surveys so popular?  

They’re easy and inexpensive to conduct, and you can do a lot of data collection quickly. Plus, the data is pretty straightforward to analyze, even when you have to analyze open-ended questions whose answers might initially appear difficult to categorize.

We've built a number of survey templates ready and waiting for you. Grab a template and share with your customers in just a few clicks.

💡 Pro tip: you can also get started with Hotjar AI for Surveys to create a survey in mere seconds . Just enter your market research goal and watch as the AI generates a survey and populates it with relevant questions. 

Once you’re ready for data analysis, the AI will prepare an automated research report that succinctly summarizes key findings, quotes, and suggested next steps.

An example research report generated by Hotjar AI for Surveys

2. Interviews: the most insightful

Interviews are one-on-one conversations with members of your target market. Nothing beats a face-to-face interview for diving deep (and reading non-verbal cues), but if an in-person meeting isn’t possible, video conferencing is a solid second choice.

Regardless of how you conduct it, any type of in-depth interview will produce big benefits in understanding your target customers.

What makes interviews so insightful?

By speaking directly with an ideal customer, you’ll gain greater empathy for their experience , and you can follow insightful threads that can produce plenty of 'Aha!' moments.

3. Focus groups: the most unreliable

Focus groups bring together a carefully selected group of people who fit a company’s target market. A trained moderator leads a conversation surrounding the product, user experience, or marketing message to gain deeper insights.

What makes focus groups so unreliable?

If you’re new to market research, we wouldn’t recommend starting with focus groups. Doing it right is expensive , and if you cut corners, your research could fall victim to all kinds of errors. Dominance bias (when a forceful participant influences the group) and moderator style bias (when different moderator personalities bring about different results in the same study) are two of the many ways your focus group data could get skewed.

4. Observation: the most powerful

During a customer observation session, someone from the company takes notes while they watch an ideal user engage with their product (or a similar product from a competitor).

What makes observation so clever and powerful?

‘Fly-on-the-wall’ observation is a great alternative to focus groups. It’s not only less expensive, but you’ll see people interact with your product in a natural setting without influencing each other. The only downside is that you can’t get inside their heads, so observation still isn't a recommended replacement for customer surveys and interviews.

The following questions will help you get to know your users on a deeper level when you interview them. They’re general questions, of course, so don’t be afraid to make them your own.

1. Who are you and what do you do?

How you ask this question, and what you want to know, will vary depending on your business model (e.g. business-to-business marketing is usually more focused on someone’s profession than business-to-consumer marketing).

It’s a great question to start with, and it’ll help you understand what’s relevant about your user demographics (age, race, gender, profession, education, etc.), but it’s not the be-all-end-all of market research. The more specific questions come later.

2. What does your day look like?

This question helps you understand your users’ day-to-day life and the challenges they face. It will help you gain empathy for them, and you may stumble across something relevant to their buying habits.

3. Do you ever purchase [product/service type]?

This is a ‘yes or no’ question. A ‘yes’ will lead you to the next question.

4. What problem were you trying to solve or what goal were you trying to achieve?

This question strikes to the core of what someone’s trying to accomplish and why they might be willing to pay for your solution.

5. Take me back to the day when you first decided you needed to solve this kind of problem or achieve this goal.

This is the golden question, and it comes from Adele Revella, Founder and CEO of Buyer Persona Institute . It helps you get in the heads of your users and figure out what they were thinking the day they decided to spend money to solve a problem.

If you take your time with this question, digging deeper where it makes sense, you should be able to answer all the relevant information you need to understand their perspective.

“The only scripted question I want you to ask them is this one: take me back to the day when you first decided that you needed to solve this kind of problem or achieve this kind of a goal. Not to buy my product, that’s not the day. We want to go back to the day that when you thought it was urgent and compelling to go spend money to solve a particular problem or achieve a goal. Just tell me what happened.”

— Adele Revella , Founder/CEO at Buyer Persona Institute

Bonus question: is there anything else you’d like to tell me?

This question isn’t just a nice way to wrap it up—it might just give participants the opportunity they need to tell you something you really need to know.

That’s why Sarah Doody, author of UX Notebook , adds it to the end of her written surveys.

“I always have a last question, which is just open-ended: “Is there anything else you would like to tell me?” And sometimes, that’s where you get four paragraphs of amazing content that you would never have gotten if it was just a Net Promoter Score [survey] or something like that.”

What is the difference between qualitative and quantitative research?

Qualitative research asks questions that can’t be reduced to a number, such as, “What is your job title?” or “What did you like most about your customer service experience?” 

Quantitative research asks questions that can be answered with a numeric value, such as, “What is your annual salary?” or “How was your customer service experience on a scale of 1-5?”

 → Read more about the differences between qualitative and quantitative user research .

How do I do my own market research?

You can do your own quick and effective market research by 

Surveying your customers

Building user personas

Studying your users through interviews and observation

Wrapping your head around your data with tools like flow models, affinity diagrams, and customer journey maps

What is the difference between market research and user research?

Market research takes a broad look at potential customers—what problems they’re trying to solve, their buying experience, and overall demand. User research, on the other hand, is more narrowly focused on the use (and usability ) of specific products.

What are the main criticisms of market research?

Many marketing professionals are critical of market research because it can be expensive and time-consuming. It’s often easier to convince your CEO or CMO to let you do lean market research rather than something more extensive because you can do it yourself. It also gives you quick answers so you can stay ahead of the competition.

Do I need a market research firm to get reliable data?

Absolutely not! In fact, we recommend that you start small and do it yourself in the beginning. By following a lean market research strategy, you can uncover some solid insights about your clients. Then you can make changes, test them out, and see whether the results are positive. This is an excellent strategy for making quick changes and remaining competitive.

Net Promoter, Net Promoter System, Net Promoter Score, NPS, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld, and Satmetrix Systems, Inc.

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The Ultimate Guide to Market Research: Types, Benefits, and Real-World Examples

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Today's consumers hold a lot of power when making purchase decisions. With a quick inquiry in a search engine or search bar within a social media platform, they can access genuine reviews from their peers without relying on sales reps.

Considering this shift in consumer behavior, adjusting your marketing strategy so it caters to the modern-day buying process is essential . To achieve this, you must thoroughly understand your target audience, the market you operate in, and the factors influencing their decision-making.

This is where market research can be leveraged so you stay current with your audience and industry. 

Article Overview

In this article, we’ll walk you through everything you need to know about how to conduct market research, including:

• Why market research is essential for understanding your target audience, the market you operate in, and factors influencing decision-making
• What are the different types of market research, such as primary and secondary market research
• How to collect information about your customers and target market to determine the success of a new or existing product, improve your brand, and communicate your company's value
• Real-world examples of companies leveraging market research

What is market research?

Market research is a necessary process that involves collecting and documenting information about your target market and customers. This helps you determine the success of a new product, improve an existing one, or understand how your brand is perceived. You can then turn this research into profits by  developing marketing strategies and campaigns to effectively communicate your company's value .

While market research can provide insights into various aspects of an industry, it is not a crystal ball that can predict everything about your customers. Market researchers typically explore multiple areas of the market, which can take several weeks or even months to get a complete picture of the business landscape.

Even by researching just one of those areas, you can gain better insights into who your buyers are and what unique value proposition you can offer them that no other business currently provides.

Of course, you can simply use your industry experience and existing customer insights to make sound judgment calls. However, it's important to note that market research provides additional benefits beyond these strategies. There are two things to consider:

• Your competitors also have experienced individuals in the industry and a customer base. Your immediate resources may equal those of your competition's immediate resources. Seeking a larger sample size for answers can provide a better edge.
• Your brand's customers do not represent the entire market's attitudes, only those who are attracted to your brand.

The market research services industry is experiencing rapid growth , indicating a strong interest in market research as we enter 2024. The market is expected to grow from approximately $75 billion in 2021 to $90.79 billion in 2025, with a compound annual growth rate of 5%. 

Your competitors have highly skilled individuals within the industry, meaning your available personnel resources are likely similar to those of your competitors. So what are you going to do to get ahead?

You’re going to do thorough market research, which is why seeking answers from a larger sample size is essential. Remember that your customers represent only a portion of the market already attracted to your brand, and their attitudes may not necessarily reflect those of the entire market. You could be leaving money on the table by leaving out untapped customers .

Why do market research?

Market research helps you meet your buyers where they are. Understanding your buyer's problems, pain points, and desired outcomes is invaluable as our world becomes increasingly noisy and demanding. This knowledge will help you tailor your product or service to appeal to them naturally. 

What’s even better is when you're ready to grow your business, market research can also guide you in developing an effective market expansion strategy.

Market research provides valuable insights into factors that impact your profits and can help you to :

• Identify where your target audience and current customers are conducting their product or service research
• Determine which competitors your target audience looks to for information, options, or purchases
• Keep up with the latest trends in your industry and understand what your buyers are interested in
• Understand who makes up your market and what challenges they are facing
• Determine what influences purchases and conversions among your target audience
• Analyze consumer attitudes about a particular topic, pain, product, or brand
• Assess the demand for the business initiatives you're investing in
• Identify unaddressed or underserved customer needs that can be turned into selling opportunities
• Understand consumer attitudes about pricing for your product or service.

Market research provides valuable information from a larger sample size of your target audience, enabling you to obtain accurate consumer attitudes. By eliminating any bias or assumptions you have about your target audience, you can make better business decisions based on the bigger picture. 

As you delve deeper into your market research, you will come across two types of research: primary and secondary market research . Simply put, think of two umbrellas beneath market research - one for primary and one for secondary research. In the next section, we will discuss the difference between these two types of research. That way, if you work with a market who wants to use them, you’ll be ready with an understanding of how they can each benefit your business.

Primary vs. Secondary Research

Both primary and secondary research are conducted to collect actionable information on your product. That information can then be divided into two types: qualitative and quantitative research. Qualitative research focuses on public opinion and aims to determine how the market feels about the products currently available. On the other hand, quantitative research seeks to identify relevant trends in the data gathered from public records. 

Let's take a closer look at these two types.

Primary Research

Primary research involves gathering first-hand information about your market and its customers. It can be leveraged to segment your market and create focused buyer personas . Generally, primary market research can be categorized into exploratory and specific studies.

Exploratory Primary Research

This type of primary market research is not focused on measuring customer trends; instead, it is focused on identifying potential problems worth addressing as a team. It is usually conducted as an initial step before any specific research is done and may involve conducting open-ended interviews or surveys with a small group of people.

Specific Primary Research

After conducting exploratory research, businesses may conduct specific primary research to explore issues or opportunities they have identified as necessary. Specific research involves targeting a smaller or more precise audience segment and asking questions aimed at solving a suspected problem. Specific primary research reveals problems that are unique to your audience so you can then offer a unique (and valuable) solution.

Secondary Research

Secondary research refers to collecting and analyzing data that has already been published or made available in public records. This may include market statistics, trend reports, sales data, and industry content you already can access. Secondary research really shines when you go to your competitors . The most commonly used sources of secondary market research include:

• Public sources
• Commercial sources
• Internal sources

Public Sources

When conducting secondary market research, the first and most accessible sources of information are usually free . That’s right–these public sources are free and at your fingertips so there’s no reason for you to not be checking them out and leveraging them for your own gain.

One of the most common types of public sources is government statistics. According to Entrepreneur, two examples of public market data in the United States are the U.S. Census Bureau and the Bureau of Labor & Statistics. These sources offer helpful information about the state of various industries nationwide including:

Commercial Sources

Research agencies such as Pew, Fratzke, Gartner, or Forrester often provide market reports containing industry insights from their own in-depth studies . These reports usually come at a cost if you want to download and obtain the information, but these agencies are experts at what they do, so the research is most likely valuable.

Internal Sources

Internal sources of market data can include average revenue per sale, customer retention rates, and other data on the health of old and new accounts. They are often overlooked when it comes to conducting market research because of how specific the data is; however, these sources can be valuable as they provide information on the organization's historical data.

By analyzing this information, you can gain insights into what your customers want now . In addition to these broad categories, there are various ways to conduct market research. Let’s talk about them.  

Types of Market Research

• Interviews (in-person or remote)

Focus Groups

• Product/ Service Use Research

Observation-Based Research

Buyer persona research, market segmentation research, pricing research.

• Competitive Analysis Research

Customer Satisfaction and Loyalty Research

Brand awareness research, campaign research.

Interviews can be conducted face-to-face or virtually, allowing for a natural conversation flow while observing the interviewee's body language. By asking questions about themselves, the interviewee can help you create buyer personas , which are made by using information about the ideal customer, such as:

• Family size 
• Challenges faced at work or in life 

And other aspects of their lifestyle. This buyer profile can shape your entire marketing strategy , from the features you add to your product to the content you publish on your website. Your target audience will feel that the marketing was made just for them and will be drawn to your product or service.

Focus groups are market research involving a few carefully selected individuals who can test your product, watch a demonstration, offer feedback, and answer specific questions. This research can inspire ideas for product differentiation or highlight the unique features of your product or brand that set it apart from others in the market.  This is a great market research option to gain specific feedback, which you can use to improve your services .

Product/Service Use Research

Product or service usage research provides valuable insights into how and why your target audience uses your product or service.  This research can help in various ways including:

•  Identifying specific features of your offering that appeal to your audience. 
• Allowing you to assess the usability of your product or service for your target audience. 

According to a report published in 2020, usability testing was rated the most effective method for discovering user insights, with a score of 8.7 out of 10. In comparison, digital analytics scored 7.7, and user surveys scored 6.4.

Observation-based research is a process that involves observing how your target audience members use your product or service. The way that you intended your product or service to be used may not be the actual way that it is used. Observation-based research helps you understand what works well in terms of customer experience (CX) and user experience (UX), what problems they face, and which aspects of your product or service can be improved to make it easier for them to use.

To better understand how your potential customers make purchasing decisions in your industry, it is essential to know who they are. This is where buyer persona research comes in handy. Buyer or marketing personas are fictional yet generalized representations of your ideal customers. They give you someone to whom you want your marketing efforts to empathize and move, even though they don’t really exist. 

Gathering survey data and additional research to correctly identify your buyer personas will help you to visualize your audience so you can streamline your communications and inform marketing strategy . Key characteristics to include in a buyer persona are:

• Job title(s)
• Family size
• Major challenges

Market segmentation research enables you to classify your target audience into various groups or segments based on specific and defining characteristics. This method allows you to understand their needs, pain points, expectations, and goals more effectively.

Pricing research can provide valuable insights about the prices of similar products or services in your market. It can help you understand what your target audience expects to pay for your offerings and what would be a reasonable price for you to set. Correct pricing is important because if you set it too high, consumers will go to your cheaper competitor; but if you set it too low, your consumers may become suspicious of your product or service and still end up with your competitor. This information allows you to develop a solid pricing strategy aligning with your business goals and objectives. 

Competitive Analysis

Competitive analyses are incredibly valuable as they provide a deep understanding of your market and industry competition. Through these analyses, you can gain insights like: 

• What works well in your industry 
• What your target audience is already interested in regarding products like yours
• Which competitors you should work to keep up with and surpass 
• How you can differentiate yourself from the competition

Understanding customer satisfaction and loyalty is crucial to encouraging repeat business and identifying what drives customers to return (such as loyalty programs, rewards, and exceptional customer service). Researching this area will help you determine the most effective methods to keep your customers coming back again and again. If you have a CRM system, consider further utilizing automated customer feedback surveys to improve your understanding of their needs and preferences.

Brand awareness research helps you understand the level of familiarity your target audience has with your brand. It provides insights into your audience members' perceptions and associations when they think about your business.This type of research reveals what they believe your brand represents. This information is valuable for developing effective marketing strategies, improving your brand's reputation, and increasing customer loyalty .

To improve your marketing campaigns, you need to research by analyzing the success of your past campaigns among your target audience and current customers. This requires experimentation and thoroughly examining the elements that resonate with your audience. By doing so, you can identify the aspects of your campaigns that matter most to your audience and use them as a guide for future campaigns. 

Now that you understand the different market research categories and types let's look at how to conduct your market research.  Using our expertise and experience, we’ve created a step-by-step guide to conducting market research.

How to Do Market Research (Detailed Roadmap)

• Define the problem or objective of the research. 
• Determine the type of data needed. 
• Identify the sources of data. 
• Collect the data. 
• Analyze the data. 
• Interpret the results. 
• Report the findings. 
• Take action based on the findings.

1. Define the problem or objective of the research

Defining the problem or objective of the research is the first step in conducting market research. This involves identifying the specific issue that the research is trying to address. It is essential to be clear and specific about the research problem or objective, as it will guide the entire research process.

2. Determine the type of data needed

After defining the research problem or objective, the next step is determining the data type needed to address the issue. This involves deciding whether to collect primary or secondary data. Primary data is collected directly from the source, while secondary data is collected from existing sources such as government reports or market research studies.

3. Identify the sources of data

Once the data type has been determined, the next step is identifying the data sources. This involves identifying potential sources of primary and secondary data that can be used to address the research problem or objective. Primary data sources can include surveys, focus groups, and interviews, while secondary data sources can include government reports, industry publications, and academic journals.

4. Collect the data

After identifying the data sources, the next step is to collect the data. This involves designing and implementing a data collection plan consistent with the research problem or objective. The data collection plan should specify the methods and procedures for collecting data, sample size, and sampling method.

5. Analyze the data

Once the data has been collected, the next step is to analyze the data. This involves organizing, summarizing, and interpreting the data to identify patterns, relationships, and trends. The research problem or objective should guide the data analysis process and be conducted using appropriate statistical methods and software.

6. Interpret the results

After analyzing the data, the next step is to interpret the results. This involves drawing conclusions from the data analysis and using the results to address the research problem or objective. It is essential to analyze the results objectively and to avoid making assumptions or drawing conclusions that are not supported by the data.

7. Report the findings

Try identifying common themes to create a story and action items.To make the process easier, use your favorite presentation software to create a report, as it will make it easy to add quotes, diagrams, or call clips.

Feel free to add your flair, but the following outline should help you craft a clear summary:

• Background: What are your goals, and why did you conduct this study?
• Participants: Who you talked to? A table works well to break groups down by persona and customer/prospect.
• Executive Summary: What were the most exciting things you learned? What do you plan to do about it?
• Key Findings: Identify the key findings using data visualizations and emphasize key points.
• Recommendations + Action Plan: Your analysis will uncover actionable insights to fuel strategies and campaigns you can run to get your brand in front of buyers earlier and more effectively. Provide your list of priorities, action items , a timeline, and its impact on your business.

8. Take action based on the findings

The final step in conducting market research is to take action based on the findings. This involves using the results to make informed decisions about the marketing strategy, product development, or other business decisions. It is important to use the findings to drive action and to monitor and evaluate the effectiveness of the action taken continuously.

How to Prepare for Market Research Projects

Identify a persona group to engage, prepare research questions for your market research participants, list your primary competitors.

The idea is to use your persona as a reference point for understanding and reaching out to your industry's audience members. Your business might cater to more than one persona, and that's completely acceptable! However, you must be mindful of each persona while strategizing and planning your content and campaigns. 

How to Identify the Right People to Engage for Market Research

When selecting a group on which to conduct market research , it is essential to consider individuals with the same characteristics as your target audience. 

If you need to research multiple target audiences, recruit separate groups for each one. Select people who have recently interacted with you by looking through social media for post interactions or seeing if they’ve made recent purchases from you.

If you are planning to conduct an evaluation, it is recommended that you focus on people who have completed it within the last six months. However, if you have a longer sales cycle or a specific market, you can extend the period up to a year. It is crucial to ask detailed questions during the evaluation, so the participants' experience must be fresh.

Gather a mix of participants

If you want to expand your customer base, you’re going to want to get viewpoints of your product or service from every angle. Consider getting this mix by recruiting individuals who have already purchased your product, those who have bought a competitor's product, and those who haven't purchased anything. While targeting your existing customers may be the easiest option, gathering information from non-customers can help you gain a more balanced market perspective .

We recommend taking the following steps to select a mix of participants:

• Create a list of customers who made a recent purchase . This is usually the most accessible group to recruit. If you have a CRM system with list segmentation capabilities, run a report of deals that closed within the past six months and filter it for the characteristics you're looking for. Otherwise, work with your sales team to get them a list of appropriate accounts.
• Create a list of customers who were in an active evaluation but didn't make a purchase. You should get a mix of buyers who either purchased from a competitor or decided not to purchase. Again, you can obtain this list from your CRM or your Sales team's system to track deals.
• Use social media to call for participants. Try reaching out to people who follow you on social media but decided not to buy from you. Some may be willing to talk to you and explain why they did not purchase your product.
• Leverage your network . Spread the word that you're conducting a study to your coworkers, former colleagues, and LinkedIn connections. Even if your direct connections don't qualify, some will likely have a coworker, friend, or family member who does.
• Choose an incentive to motivate participants to spend time on your study. If you're on a tight budget , you can reward participants for free by giving them exclusive access to content. 

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• Biggest Marketing Challenges Leaders Face
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Preparation is key when conducting research in hopes of gaining productive and informative conversations. This involves creating a discussion guide, whether it is for a focus group, an online survey, or a phone interview. The guide should help you cover all the relevant topics and manage your time efficiently.

The discussion guide should be in an outline format, with an allocated time and open-ended questions for each section. All the questions must be open-ended, as asking closed questions may lead the interviewee to respond with a simple "yes" or "no" answer. You may need more detailed answers to make informed decisions, so be sure to ask follow-up questions as necessary.  Also leave out any leading questions as they may unintentionally influence the interviewee's response, skewing your research results.

It's essential to identify your competitors accurately and you may even have some hidden in plain sight.  There are some instances where your company's business division might compete with your main product or service, even though that company's brand might have a different focus. Take a look at Apple:  the company is known primarily for its laptops and mobile devices, but Apple Music competes with Spotify over its music streaming service.

From a content perspective, you might compete with a blog, YouTube channel, or similar publication for inbound website visitors — even though their products don't overlap with yours. An example of this is when a toothpaste company might compete with publications like Health.com or Prevention on specific blog topics related to health and hygiene, even though the magazines don't sell oral care products.

Here are a few ways to build your competitor list:

• Check your industry quadrant on G2 Crowd: This is a significant first step for secondary market research in some industries. G2 Crowd aggregates user ratings and social data to create "quadrants" that show companies as contenders, leaders, niche players, or high performers in their respective industries. G2 Crowd specializes in digital content, IT services, HR, e-commerce, and related business services.
• Download a market report: Companies like Forrester and Gartner offer free and gated market forecasts yearly on the vendors leading their industry. On Forrester's website, for example, you can select "Latest Research" from the navigation bar and browse Forrester's latest material using a variety of criteria to narrow your search. These reports are good assets to save on your computer.
• Use social media : Social networks can be excellent company directories if you use the search bar correctly. On LinkedIn, for example, select the search bar and enter the name of the industry you're pursuing. Then, under "More," select "Companies" to narrow your results to the businesses that include this or a similar industry term on their LinkedIn profile.

Identifying Content Competitors

Search engines can be beneficial when it comes to secondary market research . To identify the online publications competing with your business, start with the overarching industry term you identified earlier, and then come up with more specific industry terms that are related to your company . For example, if you run a catering business, you might consider yourself a "food service" company, as well as a vendor in "event catering," "cake catering," "baked goods," and so on.

Once you have this list, follow these steps:

• Google it: Running a search on Google for the industry terms that describe your company can be very beneficial. You may come across a mix of product developers, blogs, magazines, and other websites.
• Compare your search results against your buyer persona: Remember the persona you created during the primary research stage? You can use it to evaluate whether a publication you found through Google could steal website traffic from you. If the website's content aligns with what your buyer persona would want to see, it is a potential competitor and should be added to your list of competitors.

After a series of similar Google searches for the industry terms you identify with, look for repetition in the website domains that have come up.

When searching, examine the first two or three pages of results. These websites are considered reputable sources of content in your industry and should be monitored closely as you create your collection of videos, reports, web pages, and blog posts.

Market Research Examples

Mcdonald's focus on customer feedback and profiling.

McDonald's invests in developing a detailed consumer profile to attract and retain customers, including parents of young children who appreciate the family-friendly atmosphere and menus. The brand seeks feedback from customers through surveys and questionnaires in stores, social media, and its mobile app. It also monitors customer feedback on digital channels.

Nike's Extensive Research and Collaboration for Running Shoes Development

Nike invests heavily in creating running shoes that cater to the needs of its customers, which it determines through extensive market research and customer surveys. The brand goes to great lengths to understand its customers' preferences, such as the type of running surface, the distance they run, and their running style, to develop shoes that meet their specific needs.

In addition to customer surveys, Nike also collaborates with athletes to develop shoes that cater to their specific requirements. This research helps Nike improve its existing running shoe models and innovate new ones, ensuring that the brand stays ahead of the competition.

Disney employs focus groups that specifically cater to children to test out their new characters and ideas.

The Walt Disney Company invests millions of dollars in creating captivating stories tested for their effectiveness with children, the intended audience. Disney executives hold focus groups with preschoolers and kindergartners several times a year to gather their opinions and feedback on TV episodes, Disney characters, and more. 

This market research strategy is effective because children are the ultimate audience that Disney aims to please. The collected feedback helps the company improve existing content to meet the preferences of its audience and ensure continued success as a multi-billion dollar enterprise.

KFC tested its meatless product in specific markets before launching it nationwide.

In 2019, KFC began developing and testing a meatless version of its famous chicken. However, instead of immediately launching the product nationwide, they decided to test it in select stores in the Atlanta, Georgia area. 

This is an innovative and practical approach to market research, as it allows the company to determine the product's sales performance on a smaller scale before committing too many resources to it. If the meatless chicken fails to gain popularity in Georgia, KFC can make the necessary changes to the product before introducing it to the broader market.

Yamaha conducted a survey to determine whether to use knobs or sliding faders on the Montage keyboard.

Yamaha is a Japanese corporation that produces various products, from motorcycles to golf cars to musical instruments. When it began developing its new Montage keyboard, the team was unsure whether to use knobs or sliding faders on the product. 

To address this dilemma, Yamaha used Qualtrics to send a survey to their customers. Within just a few hours , they received 400 responses. By using survey feedback, Yamaha ensured that it was designing a product that would perfectly meet the preferences of its audiences.

The Body Shop used social listening to determine how to reposition brand campaigns based on customer feedback.

The Body Shop is a well-known brand that offers ethically sourced and natural products. They take pride in their core value of sustainability. The Body Shop team tracked conversations to understand the sustainability subtopics that were most important to their audiences. 

They found that their customers cared a lot about refills. Based on this information, the Body Shop team confidently relaunched their Refill Program across 400 stores globally in 2021, with plans to add another 400 in 2022. Market research confirmed that their refill concept was on the right track and also highlighted the need for increased efforts to demonstrate how much the Body Shop cares about its customers' values .

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The takeaway.

Fratzke Consulting offers a comprehensive suite of market research services to help brands gain valuable insights into their target market, competitors, and industry trends. Our expert team utilizes various primary and secondary research methods to gather accurate and unbiased data, including surveys, competitive research, and industry reports. With Fratzke Consulting, you'll have the tools to succeed in today's rapidly evolving business landscape.

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How to do Market Research: a Step-by-Step Guide

14 min read

Looking for the best way to do market research? From framing your initial question to extracting valuable customer insights, we’ll walk you through the lean market research process step-by-step. You will learn effective techniques for collecting and analyzing data , with practical tips on applying your findings to benefit your SaaS. Get ready to empower your decisions with real-world market intelligence.

• Market research is vital for making informed business decisions, enabling companies to understand the market, target audience, and competitors, reducing risks, and optimizing marketing communications and product strategies .
• Effective market research requires clear and measurable objectives, guiding decision-making and ensuring relevance to the project’s needs, and should be accompanied by appropriate methods , including both primary and secondary research .
• Applying insights from market research to product development and marketing strategies can significantly enhance business growth. This allows businesses to tailor their offerings and engage more effectively with their target market.

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What is market research

Essentially, market research is the process of understanding one’s target audience’s needs and wants to validate a new product, feature, or service idea. It involves probing and extracting answers based on empirical evidence instead of relying on hunches or speculative judgment.

Why should you do market research?

Understanding your consumers’ behavior and needs well through methodical market research is vital for informed decision-making when it comes to your product roadmap. These choices can make or break your SaaS company. Without thorough market research, you’re navigating blindly, basing crucial judgments on antiquated notions of customer habits, imprecise economic gauges, or untested assumptions rather than solid competitive analysis.

The outcome? Sharper marketing messages, savvy product development strategies, and an intimate grasp of both prospective buyers and existing customers’ preferences and needs.

Identifying your market research goals

Before you do anything – you need to determine specific and actionable goals of your market research project. Setting SMART (specific, measurable, achievable, relevant and time-bound) goals will help you stay on track, come up with better market research questions and achieve more reliable results faster.

For effective market research outcomes, your goals must be:

• Quantifiable .
• Attainable.
• Directly aligned with project requirements.

Having established unambiguous goals prior to delving into data analysis sets up a solid foundation ensuring pivotal questions, hypotheses, and indicators are systematically tackled during effective market research.

Market research methods

Now that you understand the role of well-defined research objectives, let’s examine the different types of market research and research techniques for realizing these goals. These methods are essentially your toolkit for extracting valuable insights and they fall into two broad categories: primary research and secondary research . Choosing between them depends on many factors such as your budget, time availability, and whether you’re looking for more exploratory research data or concrete answers.

Engaging in primary research is comparable to unearthing precious metals—it requires gathering new information straight from sources through several approaches including:

• Focus groups.

This approach gives you first-hand insight into your target audience.

Conversely, secondary research uses already established datasets of primary data – which can add depth and reinforcement to your firsthand findings. For a 360 view of your market trends, combine both techniques – exploratory primary research and secondary channels of inquiry.

Let’s look a bit deeper into them now.

What is primary market research?

Market research uses primary market research as an essential tool. This involves collecting new data directly from your target audience using various methods, such as surveys , focus groups, and interviews.

Each method has its benefits. For example, observational studies allow you to see how consumers interact with your product.

There are many ways to conduct primary research.

Focus Groups : Hold discussions with small groups of 5 to 10 people from your target audience. These discussions can provide valuable feedback on products, perceptions of your company’s brand name, or opinions on competitors.

Interviews : Have one-on-one conversations to gather detailed information from individuals in your target audience.

Surveys : These are a common tool in primary market research and can be used instead of focus groups to understand consumer attitudes. Surveys use structured questions and can reach a broad audience efficiently.

Navigating secondary market research

While market research using primary methods is like discovering precious metals, secondary market research technique is like using a treasure map. This approach uses data collected by others from various sources, providing a broad industry view. These sources include market analyses from agencies like Statista, historical data such as census records, and academic studies.

Secondary research provides the basic knowledge necessary for conducting primary market research goals but may lack detail on specific business questions and could also be accessible to competitors.

To make the most of secondary market research, it’s important to analyze summarized data to identify trends, rely on reputable sources for accurate data, and remain unbiased in data collection methods.

The effectiveness of secondary research depends significantly on how well the data is interpreted, ensuring that this information complements the insights from primary research.

The role of qualitative and quantitative data in market research

In market research, there are two main types of data: qualitative and quantitative. Qualitative data explores the reasons behind consumer actions, collecting non-numeric information to understand consumer behaviors and motivations. For more on gathering and analyzing qualitative data, see How to Analyse Qualitative Data . On the other hand, quantitative data uses numeric data to measure consumer preferences, behaviors, and market sizes. To learn more about handling this type of data, check out User Analytics .

A thorough market analysis usually combines both qualitative and quantitative data. This approach provides a full view of the market by merging detailed qualitative insights with concrete quantitative statistics. For more on combining these approaches, refer to Generative vs. Evaluative Research .

Gathering qualitative insights

Qualitative research involves direct engagement with customers, like having detailed discussions. It includes observational studies that capture genuine consumer reactions. This type of research provides deep insights into consumer perceptions, brand comparisons, consumer behavior, and feedback on specific product features.

Studies on customer satisfaction and loyalty reveal effective strategies for keeping customers and what keeps them loyal, such as loyalty programs and quality customer service. The strength of qualitative research lies in its ability to dig deeper than just numbers, reaching insights that quantitative data might miss. By using qualitative data to customize experiences, businesses can increase customer satisfaction, interaction , and loyalty, leading to greater business growth.

Analyzing quantitative data

Quantitative research provides precision and the ability to measure findings using structured data collection methods like polls and surveys. Product analytics tools such as Userpilot , Amplitude , Heap , and Mixpanel are highly effective for collecting and organizing quantifiable data. This type of data is crucial for identifying trends and insights, which can help businesses track important performance indicators such as conversion rates or customer lifetime value , supporting their growth strategies.

Quantitative research data is divided into two types: discrete data, which includes countable numbers, and continuous data, which consists of numbers that can have fractions or decimals. These are vital for revealing important demographic information.

Segmenting your target market

Market research plays a key role in segmenting your target audience into manageable segments.

These market segments are typically grouped by similar needs or attributes, and display similar responses in marketing research surveys and initiatives. The full market segmentation process is vital for comprehensively grasping and satisfying the requirements of your targeted consumer base.

Accumulating demographic information forms the basis for executing effective market segmentation strategies. Businesses prioritize obtaining user data such as:

• Job functions.
• Organizational scale.
• Customer demographics profiles.
• Lifestyle choices.
• Values systems.
• Product usage patterns.

This information can be collected in the initial sign-up flow (through a signup flow survey; see the Asana example below) or by conducting comprehensive market research surveys .

At its core, successful market segmentation enables businesses to communicate effectively in their target customers’ dialects while catering explicitly to their distinct demands.

Userpilot allows you to easily segment your users not only by demographic information, company size, plan, or role – but also by their in-app engagement ( behavioral segmentation ):

In summary, the techniques used to create detailed analyses, like conducting specialized surveys and carefully collecting relevant participant information, are crucial for identifying groups within a larger target population. These groups are defined by usage patterns and broad demographic and economic indicators, enabling companies to not only reach but also deeply connect with each niche market they aim to capture.

Creating buyer personas based on your market research

Creating buyer personas is a strategic process that helps businesses better understand and cater to their target customers. Here’s how you can systematically approach creating effective buyer personas:

• Gather Initial Data : Start by collecting basic demographic information such as age, gender, location, and education level. This can come from existing customer databases, market research, or industry reports.

• Segment the Audience : Based on the collected data, segment your audience into distinct groups. Each segment should represent a type of customer with similar characteristics and behaviors. This segmentation helps in personalizing marketing and sales strategies effectively.
• Build Detailed Personas : For each segment, create a detailed persona that includes not only demographic and behavioral traits but also psychographics like interests, values, and lifestyle. Each persona should tell the story of an ideal customer, making them relatable for your marketing team.
• Refine Over Time : Buyer personas are not static. As you gather more data and the market evolves, revisit and refine your personas to keep them relevant and accurate.
• Utilize Tools Like Userpilot : Tools such as Userpilot can enhance this process by providing analytics that reveal how users interact with your product. This can confirm hypotheses or uncover new insights about user preferences and behaviors, which can be integrated into existing personas to make them even more accurate.

By carefully crafting and continually updating buyer personas, businesses can achieve a deeper understanding of their customers. This enables them to tailor their offerings and communications effectively, thereby enhancing customer engagement and satisfaction.

Recruiting participants for primary research

Choosing the right participants for primary research is a crucial step in market research. It’s important to find individuals who can provide relevant and meaningful consumer feedback, on your product or service, as this feedback is key to developing accurate user personas.

Userpilot can be instrumental in this process. It collects data on how users interact with and use your products, helping you identify who might be the best candidates for more detailed studies, such as interviews.

To efficiently recruit participants for interviews, Userpilot’s in-app features, such as in-app modals with embedded surveys can be extremely useful. You can use these tools to engage directly with users who meet your specific criteria, right within your app.

This method not only simplifies the recruitment process but also ensures that you’re interacting with the most relevant users. By leveraging these features, you can gather deep insights that significantly enhance the development of your user personas, ensuring your research is both timely and informed.

Competitive analysis for strategic advantage

Competitive analysis helps businesses understand their rivals’ strategies. It involves identifying which industries or markets to target and listing key competitors to gain a clear view of the competitive environment. This includes evaluating competitors’ market share, strengths, weaknesses, and potential entry barriers, often using tools like SWOT analysis.

By understanding competitors’ operations and past marketing efforts, businesses can craft new strategies, pinpoint opportunities, and learn from competitors’ mistakes. Employing market research, brand perception surveys, and market statistics, alongside analytical frameworks like Porter’s Five Forces Model, helps businesses uncover new opportunities and maintain a competitive advantage.

Ultimately, competitive analysis uses the understanding of competition to fuel business growth.

Conducting effective market research surveys

Primary market research often uses surveys as a cost-effective way to gather data. These surveys reach wide audiences and provide quick feedback. It’s crucial to carefully plan the creation and distribution of these surveys to ensure they are effective. Given the high amount of web traffic from mobile devices, it’s particularly important to make surveys mobile-friendly.

To get the most comprehensive data, include both quantitative (closed-ended) and qualitative (open-ended) questions in your survey . Offering incentives like financial compensation or vouchers can encourage participation, but it’s important to manage these carefully to avoid biasing the responses.

Well-designed surveys are like direct interviews with your target audience and are key to obtaining valuable insights about their views and experiences.

Userpilot offers over 50 in-app survey templates along with a bespoke builder, which are important tools for collecting the right responses. These features allow you to tailor surveys precisely to your needs, ensuring you gather accurate and relevant data directly from your users. By leveraging these templates and customizing them with the bespoke builder, you can effectively engage your audience and enhance the quality of insights you receive. This setup is crucial for conducting efficient and effective market research.

Analyzing and interpreting market research data

Once you have collected data through surveys, market research data analysis is the next critical step. It involves identifying patterns, establishing connections, and extracting insights that inform business decisions.

Userpilot’s analytics suite offers deep and easily accessible insights into your market research data:

This process starts with preparing the data by cleaning and organizing it to ensure accuracy and ease of analysis. Depending on the study’s goals, various analytical methods can be used, from simple descriptive statistics to complex multivariate analyses, all chosen to provide meaningful insights.

The core of this analysis aims to uncover market trends and understand industry specifics, which can highlight key factors such as impactful customer experiences, profitable products or services, and effective marketing strategies. Communicating these findings effectively involves presenting them in clear reports and using visual aids while making practical recommendations and addressing any limitations in the research scope or methods. Ultimately, data analysis transforms raw data into compelling narratives that offer actionable business intelligence.

Applying market research to product or service development

Market research is much more than just collecting data and uncovering insights; it’s a vital tool for driving business growth and guiding product development at every stage. Here’s how market research supports business throughout the product lifecycle:

• Concept Creation : Helps identify market needs and opportunities to inform the initial product idea.
• Building a Business Case : Provides evidence and data to justify investment in the new product.
• Product Development : Offers insights into customer preferences and feedback for refining product features.
• Market Introduction : Aids in strategizing the launch, targeting the right audience, and setting the right price.
• Lifecycle Management : Continuously gathers data on customer usage and satisfaction to enhance the product over time.

Consider a B2B SaaS company that develops project management software. By engaging in targeted market research activities like surveys and doing focus group call groups among its business clients, the company can:

• Understand Business Needs : Gain insights into the specific project management challenges and needs of different industries.
• Refine Product Features : Discover which software features are most valued by businesses, such as integration capabilities, user-friendliness, or specific tools for collaboration.
• Tailor Marketing Strategies : Identify the most effective communication channels and messaging that resonate with business clients, such as emphasizing efficiency gains or return on investment.

Market research guides businesses from the initial idea through to launch and beyond, acting as a strategic tool that ensures all actions are aligned with market demands and customer needs , ultimately aiming for successful business outcomes.

Utilizing tools for efficient market research

Using tools like Userpilot, SurveyMonkey, Google Forms, and Typeform, market researchers can reach a wide audience and get fast responses. These platforms help to design, distribute, and analyze surveys efficiently.

Userpilot stands out by allowing businesses to create targeted in-app experiences that engage users directly where they are most active—within the app itself. This direct engagement method improves the quality of the feedback collected as it relates to specific features or user experiences.

Userpilot also offers features such as demographic filtering and behavioral-based segmentation, which speeds up the process of finding and recruiting the right participants for market research.

These tools are essential for performing detailed and effective market research. They break down geographic and cultural barriers, offer access to diverse user groups, and enable businesses to conduct deep, actionable analyses across different market segments.

Translating research findings into business growth

Market research does more than just gather and analyze data; it aims to transform these insights into tangible business improvements. This process is crucial in guiding product development and helping increase a company’s market share by informing targeted strategies. For instance, a B2B SaaS company could use market research to:

• Tailor marketing strategies specifically for key user personas.
• Identify the most valued features for your users.
• Develop pricing strategies that appeal to companies of different sizes.
• Gain insight into the specific needs and expectations of their customers.

By implementing effective market research techniques, companies can customize their products or services to better serve their target audience’s needs, fundamental for stimulating company growth . Conducting personalized market research adds value, while collaborating with specialized firms may yield additional profound insights.

Market research is not just about collecting data; it’s about deeply understanding your customers, spotting opportunities, and making informed decisions that drive your business forward. It provides essential insights into the market and business environment, influencing how potential clients perceive your company.

By conducting competitor analysis and market research, organizations can:

• Connect with their target audience.
• Understand their competitive position.
• Plan strategically for future initiatives.
• Gain insights into customer perceptions of their brand, uncovering new perspectives or opportunities for improvement.

Since competitors also use market research to their advantage, engaging in these analytical processes is crucial for a comprehensive marketing strategy, aimed at business growth.

Start your own market research and journey today to pave the way to success.

Frequently asked questions

What is market research and why is it important.

Understanding their target market through collected information and insights, businesses can make informed decisions, diminish risks, and enhance marketing strategies with the aid of market research. This ensures that choices are based on reliable data, which is crucial for business success.

What is the difference between primary and secondary research?

To summarize, primary research entails the gathering of original data directly from the source, whereas secondary research utilizes previously compiled data sources to add perspective and reinforce conclusions derived from primary research.

How does market research guide product development?

By offering critical data on consumer habits and preferences, market research steers the enhancement of product features, thereby influencing decisions across all stages of a product’s life cycle and aiding in the evolution of product development.

What tools can be used for efficient market research?

Platforms such as Userpilot, SurveyMonkey, Google Forms, and Typeform can be leveraged alongside technologies that are driven by data to simplify the process of crafting, disseminating, and examining online surveys which play a crucial role in conducting market research effectively.

How can market research translate into business growth?

By informing product development, marketing strategies, and identifying opportunities for growth through enlightened decision-making, market research results can propel business expansion.

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How to Develop A Market Research Plan

• Market Research

Market research can often get de-prioritized. Yet, having an effective market research can be a game changer for your marketing strategy.

Take the time to craft a goal-oriented market research plan . This will ensure that your team focuses on high-value initiatives. These initiatives will either give you a leg up on the competition, strengthen your connection with your audience, or both.

But what does a effective, goal-oriented market research plan look like? We’ve compiled dozens (if not hundreds) here at Alchemer, and these are what we’ve found to be key drivers of success.

4 Common Market Research Areas

Most market research surveys are conducted to gain insight about the target audience and ways to expand market reach. Here are some common market research types:

Brand Awareness: Brand awareness studies measure consumers’ awareness of your product or service.

These surveys are usually anonymous. They ask consumers how familiar they are with a brand. They also inquire about which familiar brands consumers recall for a particular product or service. These studies often include questions about buying behavior (usage, convenience, attributes, price, etc.).

Brand awareness studies will help you determine your brand’s relative position in the marketplace. They will also reveal where your competitors may have an edge.

Target Audience: You can’t afford to target everyone. Knowing who your target audience is will help you craft relevant messages that resonate with them. By focusing on those who are most likely to purchase from you can prioritize your marketing spend and get the best possible ROI.

Customer Acquisition: To acquire new customers, you need to understand what makes them tick. Surveying your ideal customers can help you learn how and why they chose your brand. This knowledge allows you to acquire more customers like them.

Customer Retention: As marketers, we know that it is cheaper to retain current customers than acquire new ones. Conduct market research to measure customer satisfaction, increase customer loyalty, and drive up those retention numbers.

What Market Research Can Tell You

Knowing these common subjects of market research is a great place to start. However, you also need a strong understanding of what you hope to learn by the end of the process.

A well-designed market research survey can help you determine whether you need to:

• Enter a new market
• Launch a new product or service
• Promote brand awareness
• Optimize your marketing campaign
• Improve customer service
• Change messaging perception of your product or service
• Adjust price points
• Change your product packaging or delivery method

Once you’ve identified your objectives, it’s time to start creating the plan itself.

5 Success Tips for Market Research Surveys

These are our top five tips for giving your market research the best chance for success.

1. Define Your Marketing Challenge

The first step to designing a good market research plan is to define your need. What issue do you want to address? What do you hope to achieve? Set a survey goal to keep your market research focused on the decisions you are trying to make.

Conduct a qualitative study first to identify pressing issues or test a hypothesis before proceeding. Distribute this exploratory market survey to a focus group, or conduct a phone or personal interview.

Social media has become increasingly popular for gauging people’s interest. It is also a great way to engage your audience on a specific topic. You can post a short survey or a one question poll to quickly test your hypothesis before conducting a full study.

2. Craft Your Survey Questions Carefully

With your market research goal in mind, you are ready to design and build your survey questions.

Since you have already completed the exploratory phase, most of your questions should be quantitative. Quantifiable data will give you data you can act on. You can use a few qualitative questions but keep these to a minimum to avoid survey fatigue and abandonment.

Only ask questions that are relevant to your objectives. Asking the wrong questions will result in misleading answers that in turn will lead to poor business decisions.

Knowing how to ask a question is just as important as what to ask. Avoid leading questions and be aware of sensitive questions that some respondents may find too personal or offensive. Keep your questions simple, specific and direct.

3. Distribute Your Research Survey to the Right Audience

Before you start collecting data, consider the sample size needed for a statistically sound conclusion. Also, determine the distribution method to reach your target audience.

Market Sample Size

It is not realistic to think that you will be able to survey your entire target population, but you do need an adequate percentage and a representative cross-section of your consumer base.

Adjust the sample size for variations in your target population. You should also adjust it to find statistically significant differences between subgroups in the sample. You can read more about the intricacies of these types of analysis survey sample size here.

Survey Distribution Method

Choosing the right distribution method to collect your data is important. The distribution method determines which audience you can access. Additionally, different modes introduce different forms of bias.

Carefully consider your target audience and then find the best channel for reaching them.

For instance, if your target audience is an older demographic group, social media or internet channels might not be the best options. Consider alternative distribution methods that better reach this audience. Direct mail, phone, or personal interview may be the best option for reaching this audience.

If your audience is young and active, social media, email invitations, and mobile surveys might be effective options. A survey embedded on your website could also work well. Consider using other distribution methods to expand your survey’s reach. For example, include QR codes or web addresses on receipts, newsletters, and printed brochures.

4. Review Your New Market Research Data

Before you report and share your results, there are several steps you should take to review and prepare your data.

Clean your survey data:

Consider cleaning your survey data to locate any low-quality responses that could distort your conclusions.

Identify and weed out responses that have straight-line, Christmas tree, red herring, and/or outlier patterns.

Keep an eye on completion times as well. People who finish considerably faster than average may not be giving the questions their full attention.

Analyze your data:

Analyze the data to determine if your questions were answered in the format you expected. Unusual trends could indicate a problem with the question or question type.

If so, you may need to discount the question or run another study related to the learning objective.

Segment your data:

Filter your report by population segments. This will help you determine if the ratio accurately represents the demographics of your audience. If not, you may need to adjust the weight of your responses.

You can also segment your data by learning objective so that you can identify trends and patterns.

Report your results:

It’s time to highlight and share your findings! Consider data visualizations such as pie charts, bar graphs, and infographics that help to visually convey your message.

These visuals can drive home your data without requiring your audience to read each individual response.

5. Make Data-Driven Marketing Decisions

Armed with your market research data, you can confidently make sound marketing decisions. You can proceed with new campaigns confidently. You will have connected directly with your audience and can now create relevant messages.

Plan Your Next Online Market Research Survey

Budgeting and planning your market research can save you time, effort, and money in the long run. This approach ensures that you target the right audience, invest in the right sectors, and deliver the right branding message.

A well-designed marketing plan allows you to make tactical and strategic business decisions with confidence. So start planning your next market research survey!

Discussion: How often to you conduct a market research study? Share how your organization has benefited from them!

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Ownr Blog  > Ownrship 101  > Business Stages  > Growing Your Business  > Levelling Up  > Market Research for Small Business: What It Is and Key Goals

Market Research for Small Business: What It Is and Key Goals

Entrepreneurs have to wear a lot of different hats and it’s easy for market research to take a back seat to the day-to-day operations of your business. But market research is one of the most important things you can do to attract and retain customers, maintain a competitive edge, and increase your business revenue over time. 

You may think of market research as being reserved for large companies, but everyone from solopreneurs to multinational corporations can benefit from data-driven insights. 

Whether you’re running a restaurant or selling your art online , market research is an important tool in business planning, effectively marketing your business and standing out against your competitors. Here’s how market research can help you achieve your business goals and earn greater revenue. 

• What is market research?

Market research is the activity of collecting information about your target market and potential customers. A critical part of any business plan , market research helps you better understand your industry and more accurately predict if your small business can be profitable.

Ownr’s free business plan generator, Blueprint , makes your competitive analysis a breeze. Our easy-to-follow module will help you identify your competitors strengths and weaknesses, and communicate your market position in a way that’s easy to understand. Your market research is included in your polished, professional business plan, along with all the other information to get you in prime position for growth.

Even if you bring previous industry experience to your small business, market research is essential to help you look past any biases or unconscious assumptions you may have. It allows you to connect your instincts with real-world data, and can help you avoid potentially costly business pitfalls. 

• When to conduct market research

Market research is an important step for new business owners. You may think you have a brilliant idea for a product or service, but it’s wise to determine if there’s a market opportunity for it before you financially invest. Conducting market research early in your business development process can also help shape many key elements of your initial business plan, such as how you intend to reach your target customers and how much to charge for your product or services. 

But market research isn’t just for new business owners––in fact, it’s an essential part of any long-term business plan. You can revisit your market research when moving into new markets, as well as when planning the launch of new products or services. Even if you’re not expanding your business, periodic market research helps your business stay competitive and relevant as your industry and consumer needs evolve over time. It will help maximize your business revenue and keep your customers coming back year after year. 

• Types of market research

Market research can be broadly categorized into main types: primary and secondary. 

Primary market research is first-hand research that you conduct about your existing customers and potential customers. Primary market research typically involves tactics like surveys, interviews, and field trials in which you release a new product or service on a small scale so you can observe how your target market responds. This type of research is particularly helpful in developing and refining your customer personas, as well as identifying gaps or issues in your current offering that, if addressed, could increase revenue for your small business. 

Secondary market research draws on research already organized and published by others, such as trend reports, market statistics, or studies released by trade associations. Market research often involves a combination of primary and secondary research, but if you’re working with limited time or a tight budget, you’ll likely rely more on secondary market research. Secondary research can be especially useful in analyzing the business models of your competitors. 

• Small business market research goals

When getting started with your market research plan, it can be helpful to outline your market research objectives. A clear sense of how market research aligns with your big-picture business goals can guide you to hone your strategy for collecting and using data about your target market. Let’s take a closer look at some of the goals you may have in mind as you begin to research market opportunities for your small business. 

1. Learning about your competition

Competitor analysis involves identifying similar businesses that are top competitors for your target customers, and then examining the strategies they employ to connect with your audience. 

If you don’t know who your competitors are, start by researching businesses that offer similar products or services to your own. Once you have a list of competitors, you can start to analyze and learn from the tactics they use to reach your potential customers. You can check out their website and social media platforms, study their marketing and advertising campaigns, look into their pricing structure, or read reviews left by their customers. 

This research can help you recognize gaps in your current business offerings or potential areas of opportunity. For example, you may notice that your competitors’ websites are more user-friendly than your own and decide to invest in an upgrade, or you may find that you need to rethink your pricing structure if your competitors offer better value. Whether you’re an established small business owner or new to the game, market research on your competitors can spark ideas for honing your business plan.

You can also learn from your competitors’ mistakes. For example, if they released a similar product or service to one you’re considering offering and it didn’t work out for them, you can save time and money by not investing in those same strategies. 

Competitor analysis can also provide insight into what sets you apart from your competitors and what you can do to make your business stand out. When you have a clear sense of what makes your business unique, you can emphasize what makes your business better than its competitors when you market to potential customers.

• 2. Understanding your current customers

Your existing customers are an invaluable resource for understanding how to reach new potential customers. Market research can provide key insights into your customer demographics, what they value about your product, what influences their buying decisions, and where they spend time online. 

To gather this data, you can request customer feedback via email surveys, ask your customers questions via your business’ social media channels, or read reviews of your product or service left by customers. Survey your customers to understand what their challenges are and what they want from your product or service. This research can help you refine your customer profile, so you can market more effectively to your audience. It can also help you strategize on how to keep your current customers happy and encourage previous customers to buy from your business again and again. 

• 3. Identifying new potential customers

Market research can help you flesh out your customer personas and better understand the needs of your target market. Anyone who matches one of your buyer personas represents a potential new customer. This knowledge is critical to your marketing strategy because it helps you create messaging and products that address the needs of your potential customers. 

Market research can also help you discover unreached customer segments that could benefit from your product or service who may not know about your brand yet. There could be customers with certain needs or who fall within a particular demographic that you hadn’t considered in your initial business plan. With a few tweaks to your business’ offerings or marketing strategy, you could reach a whole new customer base and be on your way toward greater revenue. 

• 4. Improving your products and services

Market research can uncover potential shortcomings in your product or service that, if remedied, could improve your revenue and customer satisfaction. 

If your small business creates a product, investigate if its function, appearance, and packaging appeal to your customers. If you offer a service, evaluate if there are gaps in the way that service is delivered, or if there are unnecessary elements of the service you can eliminate.

This type of research is particularly helpful if you launch a new product, because you’ll want to verify that a market opportunity exists before committing to pricey production costs or dedicating your time to planning a new service. 

For example, maybe the market size for your new product idea isn’t large enough to be profitable, but you instead discover there’s a different type of product for which there is high customer demand. Market research hones in on what your customers truly want and need, rather than what you think they do. There could be upsells, product bundles, or other enhancements to your product or service that you hadn’t even considered, but could potentially increase your profits. 

For both current and potential products and services, market research can help you evaluate if your price is competitive. You might realize that your customers are willing to pay more for your product or service and you could generate more revenue with a strategic price adjustment. 

• 5. Refining your brand positioning and marketing 

Market research can give you the knowledge you need to better position your brand and make a more meaningful impact on your target audience . Investigate your target audience’s familiarity with your brand, as well as the associations that come to mind when they think about your business.

It can also be helpful to gather feedback on your brand assets, such as your logo, website, and social media feeds. This feedback can guide you to modify elements of your design and brand voice in order to form a stronger connection with your customers and make a positive impression. 

If you’ve been running your business for some time, you can also narrow your focus to look at the effectiveness of prior marketing campaigns. Collect feedback from customers about their reactions to your marketing messages, and examine technical data such as how many people viewed your ads and the click-through rate on particular campaigns. 

This analysis can help you understand what kind of marketing messages reach and resonate with your audience, so you can create more impactful campaigns in the future, as well as maximize your marketing budget by funnelling funds to the channels that offer the highest return on investment. 

• 6. Staying on top of trends

Whether you’re a new entrepreneur or a seasoned veteran, your business goals need to continually evolve in order to succeed over the long term. It’s important to stay aware of trends around consumer purchasing behaviour, popular social media and advertising platforms , new technology relevant to your product or service, and other factors related to your specific product or service.

Market research around trends in your industry may inspire changes to many different elements of your business, from the products and services you offer to how you communicate with your customers. By staying ahead of the trends, your small business can gain a competitive advantage and you’ll put yourself in a better position for business growth and to continually expand your revenue. 

• 7. Making informed decisions

Market research allows you to make decisions based on data, rather than instincts. It allows you to make choices about the direction of your business with more confidence that you’ll get it right the first time, instead of relying solely on gut instincts. 

Whether you’re launching a new product or thinking about a rebrand, you might have a hunch about what your customers want and what will lead to success, but market research offers evidence about whether or not you’re headed in the right direction. You can feel more certain that your target customers will positively respond to any changes you implement. 

Ultimately, having an excellent product or service doesn’t guarantee your business will succeed if you don’t have a clear picture of why you’re offering it and who you’re offering it to. Market research allows you to confirm and improve your business idea and make the most of your entrepreneurial venture. 

This article offers general information only, is current as of the date of publication, and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While the information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by RBC Ventures Inc. or its affiliates.

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How to Set Marketing Research Goals and Objectives

Marketing research goals.

Begin with the END

Instead of setting your goals and objectives from where you are NOW, imagine yourself ALREADY having achieved your goal – then work backwards and document HOW YOU GOT THERE.

The reason for this is very simple.  If you set your goal based on where you are now – there is a good chance that you will get caught up in fixing a problem that is actually irrelevant in getting your business to where you want it to be.

Set your goals and objectives based on your vision for where you want your company to BE and not where it is NOW.

An Example:

If the vision and mission of your business is to help your customers be successful in their business — then imagine your customers being successful and then imagine in what ways you are helping them do that.  This may include things you are currently doing — or NOT.  And this is the key to creating marketing research goals and objectives that will help you measure the potential market opportunity, the target audience for your products and how they buy.

(I know that this sounds a little way out.  But if you’re wondering how some of the successful businesses you see out there got that way — this is IT)

Take Clate Mask and Scott Martineau from InfusionSoft as an example.  InfusionSoft is an email marketing intelligence software that automates your sales and marketing process.  It’s a high-end software and it isn’t cheap.  Clate and Scott found out that their customers really didn’t know how to put marketing messages together — and hence, the software didn’t appear to be “working.”

They quickly realized that if their customers knew what to put INTO the software – the customers would make more than enough money to pay the fee for the software and also refer the software to their friends and colleagues. As a result, they set a goal to have their entire client base double their sales within a 12 month period.

Having set this goal and objective — they were not only fired up and inspired about what was possible for their business.  But their customers bought into the very same goal. Suddenly finding out what their customers needed or wanted that would help them grow and prosper was easy.

And what do you think happened to their response rates?  Of course, every time they asked their customers what they wanted — these customers were eager to tell them.

So How is this Relevant to YOU?

If you’ve not been successful collecting feedback from your community or if the research you’ve done hasn’t delivered on results — you might want to look at the goals and objectives that you’ve set.

Are these goals and objectives more focused on solving a problem you have today?  If so, that problem might be relevant to YOU but not your customer.

Use Social Media Chatter to Help You Find a Meaningful Goal

Enough of the heady stuff.  Let’s get to the meat of how you can set these kinds of goals and objectives.

If you don’t already, set up several social media communication channels that include the following:

• Facebook Fan Page
• LinkedIn Company Profile
• LinkedIn Industry Group
• Twitter Account

The next thing you want to do is  start posting articles on your blog that focus on your vision and how you are helping you customers be successful.  Get active on industry community sites and spaces, ask questions, answer questions and participate.  Then, TELL your customers, suppliers, industry experts to participate as well.

If you keep participating and reminding your audience to visit these sites – you will see conversations, get data and start forming relevant, success based goals and objectives.

Trying this backwards strategy of setting goals and objectives might identify new and exciting opportunities for your business.

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The Types of Market Research [+10 Market Research Methods]

• Market research

Jaclyn Robinson, Senior Manager of Content Marketing at Crunchbase

Market research can help startups understand where they should be placing their resources and time. It can tell you everything from how people are perceiving your company, as well as which features to drop or continue developing. And while there are plenty of ways to conduct market research, not every market research method is right for every situation.

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Market research can help play a major role in developing your product, marketing, and overall business strategy. Understanding the different market research methods can be the difference between wasting months of engineering time or exceeding your ambitious revenue targets.

We review the types of market research as well as the market research methods you can pursue based on your primary objectives and business goals.

The 2 types of market research

All market research falls under two distinct categories: primary research and secondary research.

Primary research looks at any data you collect yourself (or someone you pay). It encompasses analyzing current sales, metrics, and customers. It also takes into account the effectiveness of current practices, while taking competitors into account.

Secondary research looks at data that has already been published by others. It includes reports and studies from other companies, government organizations, and others in your industry.

10 market research methods

The type of data you need will decide which market research technique to use. Here are the most commonly used market research methods:

Primary research methods

These primary research methods will help you identify both qualitative and quantitative data. Qualitative data is information that cannot be measured while qualitative data is taken from a large sample size and is a statistically significant mathematical analysis.

1. Interviews

Great for: expert advice

Consisting of one-on-one discussions, interviews are a great source of qualitative data. You can either perform interviews by telephone, video conference, or face-to-face. Interviews are great for an in-depth look for target audience insights.

In-depth interviews are great when expert advice is needed or when discussing highly complex or sensitive topics. Interviews are usually 10 to 30 minutes long with 25 to 75 respondents.

Great for: understanding brand awareness, satisfaction and loyalty analysis, pricing research, and market segmentation .

One of the most commonly used market research methods, Surveys are an easy way to understand your target audience and allow you to test a large sample size to determine if findings are true across a larger segment of your customers.

3. Questionnaires

Great for: Customer feedback and satisfaction surveys (NPS surveys), and when you want more detail on your target audience and customer base.

Do not confuse questionnaires for surveys !  While surveys are aggregated for statistical analysis, questionnaires are a set of written questions used for collecting information.

Questionnaires are used to collect information rather than draw a conclusion.  Surveys can include a questionnaire, but a survey must aggregate and analyze the responses to the questions.

When writing questionnaires for market research, keep the number of questions in mind.

In one study, SurveyMonkey found that questionnaires with 40 questions have about a 10% lower response rate than questionnaires with 10 questions . The more questions, the less likely people will finish your questionnaire.

4. Focus groups

Great for: Price testing, advertising concepts, product/messaging testing

Even with the rise of big data, focus groups have remained an integral part of how companies build their products, strategy, and messaging. Focus groups are intentionally compromised by a group of purposefully selected individuals. Above all, the collaborative setting ensures that members of the group are able to interact and influence each other.

Typically these open and interactive groups are composed of around five to 12 screened individuals . Make sure that your participants are diverse so you can get a range of opinions and you have enough representation from several segments of your market.

Many smaller startups will conduct DIY focus groups and will use video conferencing technology, which is one of the most cost-effective and time-efficient market research methods.

This is a great resource to see some good questions to ask your focus groups as well as what topics focus groups should touch on.

5. User groups

Great for: Feature testing, UX and web design feedback

User groups are used to gather UX data and provide insight for website design. User groups usually meet regularly to discuss their experience with a product, while researchers capture their comments.

Here’s a great guide on how to format questions for user groups .

6. Test markets

Great for: Testing new marketing campaigns

Test markets represent a larger market. Using a test group as well as a control group can show you the success of a new landing page, messaging copy, or CTA button. We particularly like the free version of Google Optimize to get quantitative data on how your experiment is performing based on a specific goal.

Secondary research methods

Secondary research can help establish a starting point prior to diving into more expensive primary research techniques. While there is a lot of data on the web regarding basic statistics, you may have to purchase a distinct data provider for a more in-depth look at your market.

Crunchbase Pro and Marketplace partners are a great and inexpensive way to start your secondary research directly on Crunchbase.com.

7. Competitor benchmarks

Great for: Understanding your revenue, churn, operating costs, sales, profit margin, and burn rate.

Competitor benchmarks are the most valuable and widely used of the secondary research methods. Moreover, competitor benchmarks measure specific growth metrics or key performance indicators in comparison to business within the same industry and of a similar size.

You can use Crunchbase Pro to find how much companies in a certain industry are raising and who are the leading players with our global coverage on companies ranging from pre-seed to late-stage. So, as one of the most informative of the market research methods, competitive benchmarks are a great way to inform your business strategy. 

Free Crunchbase registered users have access to revenue estimates as well as web traffic data.

8. Sales data

Great for: Understanding your audience and where to place marketing efforts.

Taking a look at internal sales data not only reveals profitability but also helps market researchers segment customer trends.

However, taking a look at competitive sales data is a great way to make sure that you’re meeting the numbers you should be targeting as well as capturing the full potential of the market

9. Government publications and statistics

Great for: General demographic information and larger trends

The U.S. Census Bureau is a great resource of national demographic data. You can also review patents as a preview of industry trends and future innovation.

Also, you can find additional data and research from Data.gov , The World Bank , as well as the Pew Research Center to help inform your market research decisions.

10. Commercial data

Great for: Greater insight into industry trends and reports

If you’re interested in purchasing secondary market research, commercial data is available. For comprehensive reports, Mintel and IBISWorld are both traditional market research companies that provide commercial data.

Additionally, to choose which type of market research method is best for your goal, follow this graph from Relevant Insights. Begin with the metric you’re trying to move and then backtrack into a targeted market research method.

How can Crunchbase help with my market research?

Crunchbase gives market researchers flexible access to Crunchbase’s complete company data. Innovative teams and leaders in market research rely on Crunchbase’s live company data to build powerful internal databases and research insights in respective industries. Learn more about how Crunchbase can help you with your market research .

• Originally published March 14, 2019, updated April 26, 2023

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Global business

2023 Guide to Market Research: Key Strategies and Best Practices

When Steve Sasson—a Kodak engineer—invented the first digital camera in 1975, a breakthrough in photography was born. However, Kodak wasn’t interested—it was a film company, and Sasson’s digital camera threatened to disrupt its core business. Despite an extensive market research effort confirming the imminent shift from film to digital, Kodak continued to double down on its film business until it filed for bankruptcy in 2012.

The moral of the story is that strategic decisions need to be based on accurate market research in order to avoid costly mistakes, especially when they entail reinvention. Kodak is just one example—another common scenario in which a company might need to reinvent itself is when it’s looking to expand into new markets . Be it a new or adapted product or service, a new target audience, or new business models—changing tack to cater to a new market can be a make-or-break moment for businesses.

That’s why, if you’re looking to take your product global, conducting market research should be a key part of your strategy. Venturing into unfamiliar markets armed with solid market intelligence can help you make the most of opportunities and avoid pitfalls. In this article, we will discuss best practices for market research as a key component of a global expansion , and how you can make the most of it.

What is market research?

Market research is the process of collecting and analyzing data about a target market to understand consumer preferences and purchasing decisions. Companies can use this information to better inform their business strategies, such as what products or services to develop, how to adapt them to different market conditions, or what factors can affect demand.

When a company operates globally or is trying to enter new markets, market research becomes even more important. This is because culture and geography can have a big impact on consumer behavior. To be successful, you need to understand the nuances of each market and tailor your products and marketing strategies accordingly.

Market research vs marketing research

It’s common to see the terms “market research” and “marketing research” used interchangeably, but they actually refer to two different things.

Market research is a broad category that includes all types of data collection and analysis related to a target market. The aim is to understand the market, including the needs of consumers and the dynamics of competition.

Marketing research, on the other hand, is more specific and refers to the process of collecting and analyzing data to assess and identify the changing elements of the marketing mix (product, price, place, and promotion).

For example, if you want to launch a new product in the Spanish market, you would first conduct market research to assess whether there is a demand for it, what the market size, what market trends are, and what the competition looks like.

Once you have this information, you can then move on to marketing research for concept testing and to determine how to market the product , what channels to use for distribution, and what kind of marketing campaigns will be most effective.

Both activities do share some similarities, though: They may use the same data sources and methods, and the line between them can sometimes be blurry. Ultimately, the goal of both is to generate insights that can be used to make better business decisions.

Why is market research important?

There are many reasons why market research is important, but perhaps the most important is that it helps you reduce risk. When you have a clear understanding of your target market and what they want, you are much less likely to make costly mistakes.

In the context of globalization , market research can help you assess the potential of new markets and make informed decisions about where to allocate resources. It can also help you develop strategies for entering new markets, such as identifying the most effective channels for marketing and distribution.

When you’re expanding your business into new markets informed by market research, you’re much more likely to:

• Develop successful products and services: By understanding your customers’ needs , you can develop products and services that they will actually want to buy.
• Increase sales: By understanding your target market’s buying habits, pain points, and motivators, you can develop marketing campaigns that are more likely to resonate and result in sales.
• Improve customer satisfaction: If you know what your customers want, you can deliver it to them, resulting in happier customers who are more likely to continue doing business with you.
• Reduce costs by avoiding duplicate effort: Market intelligence allows you to allocate resources strategically and get it right the first time. For example, you can avoid spending money on conventional translation for marketing campaigns that require more creative adaptation to be effective in a new market.
• Get localization right: A good localization strategy is a key to success in any new market. But without market intelligence, it can be difficult to know how to adapt your products and marketing materials for a new culture. For example, you might not realize that certain colors have different connotations in different cultures, or that video content gives you a higher return on investment in one market but not another.

Arming yourself with nothing but assumptions can lead to less-than-optimal results—and this is especially true when expanding into new markets. When legal systems, consumer preferences, and business practices differ from country to country, the risks are even greater, and so should your commitment to market research.

Market analytics vs market research

A common misconception is that market research and analytics mean the same. In reality, they’re two distinct ways of doing consumer investigation, and they serve different purposes.

Market analytics is the process of collecting and analyzing data to unveil patterns and trends. This data can come from a variety of sources, including surveys, social media, transactional data, and web analytics. For example, you might use market analytics to track how often certain foreign-language keywords are being searched for on Google or to understand which demographics are most likely to purchase your product outside your home market.

Market research, on the other hand, captures data to answer specific questions. For example, a company might want to know what factors influence its customers’ purchase decisions in a particular market, or what the barriers to entry are for a new product.

Market analytics can help generate hypotheses that you can then test through market research. You can think of analytics as the inward-looking “what” (What happens? What are the trends?) and market research as the outward-looking “why” (Why does it happen? Why do people want this?).

When you leverage market analytics and market research together, you can get a well-rounded view of your target market and what they want. This, in turn, helps you make better business decisions and avoid costly mistakes.

What types of market research are there?

There are several types of market research depending on the questions you want to answer, the type of data you need, the resources that you have available, and the timeline that you are working with.

Primary market research vs secondary market research

Primary research is the first-hand research that you conduct yourself. This could involve surveys, interviews, focus groups, or any other type of research method where you directly interact with consumers.

Secondary research is the intelligence that someone else has already gathered and published. This includes data from government reports, trade associations, industry journals, commercial data providers, and other published sources.

Quantitative market research vs qualitative market research

Quantitative research focuses on numbers and statistics. For example, if you want what percentage of people in a certain age group prefer your product over a competitor’s, you would use quantitative research. Polls, surveys, desk research, web statistics, and consumer panels are all quantitative research methods.

Qualitative research, on the other hand, focuses on understanding people’s opinions, motivations, and behaviors. Multilingual sentiment analysis, ethnography, and in-depth interviews are all qualitative research methods.

Exploratory market research vs conclusive market research

You use exploratory research to generate hypotheses and identify key variables. This type of research is frequent at the beginning of a project to get a better understanding of the problem. For example, if you want to know why customers are leaving your website in a foreign market, you might use exploratory research to generate hypotheses that you can then test through further market research.

Conclusive research is used to test hypotheses and measure relationships. This type of research usually comes after exploratory research. For example, if your exploratory research suggests that customers are leaving your website because the current user experience isn’t considering their cultural preferences—think things like imagery or payment methods—you could use conclusive research to measure the impact of a new user interface that takes these cultural preferences into account.

Branding research

Branding research helps you create, manage, and measure the success of your brand. This type of research can help you understand how customers perceive your brand, what associations they have with it, and how well your brand is positioned in the market.

When expanding globally, branding research can help you strike the right balance between global brand consistency and local brand relevance. It can also help you understand how to adapt your brand messaging and identity to different cultures.

Product development research

Product development research helps you establish if there is a market for your product or service and what features or benefits customers are looking for. This type of research can help you understand the viability of your product, optimize its characteristics, and ensure it performs well before taking it to market.

Most global companies adapt their product offering to local markets. Product development research can help you understand what features or benefits are most important to customers in different countries so you can out-compete local companies.

Customer research

Customer research is a type of market research that can serve different purposes, from segmenting your customer base to measuring customer satisfaction. In the context of international operations, customer research can help you understand how to appeal to different customer segments in different countries.

For example, when you know that 64% of Asian-Pacific customers are willing to share personal data for a tailored online experience, you can use this information to improve your website design and user experience in the region.

The main types of customer research are:

• Customer satisfaction research: Also known as customer experience research, this type of research helps you understand how customers feel about your product or service. This includes understanding what they like and don’t like, their unmet needs, and how likely they are to recommend your product or service to others.
• Customer segmentation research: Segmentation research helps you understand how to divide your customer base into smaller groups with shared characteristics. This type of research can help you better target your marketing efforts and create more personalized experiences for your customers.
• Consumer insights: Consumer insights are actionable, research-based observations about your customers. They go beyond demographic information to include things like customer values, preferences, and behaviors. For example, if you want to understand why customers in a certain market are choosing your competitor’s product over yours, consumer insights research could help you uncover the reasons.

Competitive market research

Competitive market research helps you understand what your competitors are doing. This can include things like their marketing strategies, product offerings, pricing, and distribution channels. Understanding your competitor’s strengths and weaknesses can help you make informed decisions about how to position your own product or service in the market.

How to do market research?

Like every complex process, you can break market research down into smaller, more manageable steps. Here’s a high-level overview of how to do market research:

Identify your target audience

The first step in any market research project is to identify your target audience. This will help you focus your research efforts and ensure that you’re gathering information that’s relevant to your business. For example, if you’re planning an expansion to the Brazilian market, an example of a target audience you might identify would be “Brazilian upper-middle-class women ages 25-40.”

Define your research objectives

Identify an issue, problem, or opportunity that you want to understand better. For example: “I want to understand what payment methods Brazilian upper-middle-class women ages 25-40 prefer when shopping online so we can optimize our checkout process.”

Select your research methods

Once you’ve identified your target audience and objectives, you’ll need to select the research methods that will help you gather the data you need. There are many different market research methods, some of which are quantitative and some of which are qualitative. In the case above, to find out the preferred payment methods of Brazilian shoppers, you might conduct a survey.

Develop your research plan

Once you’ve selected your methods, you move on to developing your research plan. This should include a detailed description of how you’ll execute your project, including timelines, budgets, and any risks or challenges you anticipate. For example, if you’re planning to conduct interviews in Brazil, you’ll need to consider things like language barriers and cultural differences.

Collect and analyze your data

Once you’ve executed your research plan, it’s time to collect and analyze your data. This can be a complex process, depending on the methods you’ve used and the type of data you’ve gathered. In the case of a survey, you might use statistical software to analyze your results.

Present your findings

After you’ve analyzed your data, you’ll need to present your findings in a way that’s easy for others to understand. The stakeholders in your business will use these findings to make decisions about things like product development, marketing, and expansion plans. How you present your findings will depend on the type of data you’ve collected and the objectives of your research. For example, if you’re presenting the results of a survey, you might create a report or presentation that includes charts and graphs.

The above steps are a high-level overview of the market research process. In practice, each project will be unique, and you’ll need to tailor your approach to fit the specific needs of your business.

What are some key market research methods? 

We’ve briefly touched on some of the most common market research methods, but let’s take a closer look at each one:

Surveys involve collecting data from a target audience through questions administered either in person, by phone, or online. They can be used to gather data about a wide range of topics, including consumer behavior, preferences, and opinions.

• Surveys are relatively easy and inexpensive to administer.
• They can provide a great deal of immediate information.
• Their extensive reach gives you insights about a large number of people.
• Analyzing survey data is typically straightforward.
• Surveys can be time-consuming to administer and analyze.
• It can be difficult to find people who are willing to participate.
• Survey results can be skewed by the way you word questions or by the order in which you ask them .

How to do it right:

• Avoid asking too many questions so as not to overwhelm respondents
• Make sure your questions are clear and concise
• Try to ask neutral questions that don’t lead respondents to a particular answer
• Include open-ended questions to encourage respondents to give more detailed answers.

Interviews are a type of market research that involve conducting in-depth conversations with individuals from a target audience. They can be used to gather data about a wide range of topics, including attitudes, beliefs, and motivations.

• Interviews can provide a great deal of rich, detailed information about a small number of people.
• You can conduct them online if needed.
• They allow you to build empathy with your audience.
• The resources required to administer interviews (e.g., time, money, personnel) can be significant.
• It can be challenging to find people who are willing to participate (incentives might be necessary to encourage participation).
• They don’t reach an audience as extensive as surveys do.
• Choose the most appropriate format for your interview—e.g., in-person, phone, video chat, etc.
• Make sure to explain to the respondent what the interview will entail and how you will use their responses.
• Build rapport by repeating back what the respondent says and showing empathy
• Leave time for follow-up questions.

Focus groups

Many companies choose to bring together a group of potential customers to discuss a product or service before it’s launched. This type of market research is called a focus group, and it can be used to gather data about things like reactions, perceptions, and opinions.

• Focus groups can provide rich, detailed information about a small number of people.
• They can provide insights into the purchase decision-making process.
• You can easily measure customer reactions to a product’s design, packaging, price and message.
• They aren’t as in-depth as interviews.
• They can be expensive to conduct.
• They can be biased by the moderator’s questions or the group dynamics—like a dominant personality in the group who steers everyone’s opinions.
• People might not give honest feedback if you’re paying them to participate.
• Ensure the recruiting process is well-designed so you end up with a diverse and representative group of participants.
• Use skilled and experienced moderators who know how to keep the discussion on track.
• Pay attention to the nonverbal cues of participants—e.g., body language.
• Establish ground rules at the beginning of the session.
• Consider and pre-empty potential intercultural communication issues.

Observational research

When you observe people, you’re looking at their behavior in a natural setting. This type of market research can be used to gather data about a wide range of topics, including shopping habits, use of public spaces, and interactions with technology. There’s both overt and covert observational research, depending on whether or not participants are aware that they’re being watched.

• Observational research is relatively easy and inexpensive to conduct.
• Natural surroundings can provide insights that would be difficult or impossible to glean from other types of market research.
• The researcher’s own biases can skew the data.
• It can be time-consuming to observe people for extended periods of time.
• People might not behave naturally if they’re aware that someone’s watching them.
• When conducting covert observational research, be sure to follow all ethical guidelines.
• When conducting overt observational research, make sure to get the consent of participants.
• Always capture context.
• Try to avoid bias by maintaining a detached and objective attitude.
• Be sure to take detailed notes or record videos of the behavior you’re observing.
• Complete debriefing notes as soon as possible after the observation so the data is fresh in your mind.

What are some best practices for market research?

For any market research project, it’s important to keep the following best practices in mind:

Define your scope and objectives clearly

Unless you know what you’re trying to learn, it will be difficult to design an effective market research project. Based on your product offering, target market, and expansion goals, you should be able to define the scope and objectives of your project. These will help guide the rest of your decisions.

Get input from stakeholders early on

People whom the results of the market research will affect—e.g., marketing, sales, leadership—should be involved from the outset to help shape the project. Their input will ensure that the objectives of the market research are aligned with the company’s goals, and it will help ensure buy-in for the project from key stakeholders.

Consider cultural differences

If you’re expanding into new markets, it’s important to be aware of cultural differences that could affect your market research. For example, some cultures might consider it impolite to ask certain types of questions, or the interpretation of body language might be different. Working with local market research partners can help you navigate these differences.

Choose the right method

While it’s tempting to assume that any research method will eventually get you the information you need, that’s often not the case. For example, if you’re trying to learn about the associations that your content is getting in a foreign market to spot and fix any cultural missteps, a multiple-choice survey with predefined answers might not be the most optimal method.

Pilot-test your methods

Before you launch a full-scale market research project, it’s important to pilot-test your methods to make sure they’re effective. This will help you identify any potential problems so that you can fix them before they impact your data.

Analyze your results carefully

All the data in the world won’t be of any use if you don’t take the time to analyze it carefully. When reviewing your results, look for both quantitative and qualitative trends, and try to identify any potential sources of bias. Moreover, if you’ve conducted the research in a language other than your own, it’s a good idea to enlist the help of professional localizers who can help you interpret the results—they’ll be familiar with the nuances of the language and culture that you might not be.

Communicate your findings effectively

Communication can be a challenge when dealing with market research since you’re often dealing with complex data sets. However, presenting your findings in a way that’s clear and actionable for stakeholders is crucial if you want your research to have an impact.

Follow up with respondents

If you’ve collected data from respondents, it’s important to follow up with them after the fact. This shows that you value their input. Moreover, if you’ve acted on any of their feedback, be sure to let them know the results—e.g., a feature they suggested was added to the product, their feedback helped shape a new marketing campaign, etc. This can make a big impression and solidify your relationship with respondents.

Effective market research must be systematic

When done right, market research is a powerful tool that can help companies make informed decisions about their expansion strategies. However, a lack of planning and foresight can lead to wasted effort and resources.

By following a systematic process and keeping best practices in mind, you can ensure that your market research is effective and informative. The result is a stronger market expansion strategy and a better chance of success in new markets.

Last updated on August 11, 2023.

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Defining Appropriate Goals For Your Market Research Project

(part of Chapter 1: Know Your Goals )

When it comes to defining appropriate project goals, it is best to think in terms of questions or hypotheses. Your golden ticket lies in formulating fewer, “high-level” goals rather than multiple ones in need of conquering.

Too many goals dilute a project and increase the risk of failure. Read on to learn how to formulate your goals.

Setting appropriate goals

When we’re thinking about goals for MR projects, it’s often helpful to think in terms of questions or hypotheses. Some examples of goals stated as questions follow:

• How can we improve sales of a product that hasn’t met expectations?
• How can we improve our penetration within a specific customer group?
• Why have we experienced a sharp increase in customer defections?
• Which of three new product concepts should we invest in developing further?
• Which of several new possible geographic territories should we invest in for new distribution?
• What types of marketing messages are likely to resonate with our target customers as we roll out this new product or solution?
• What percentage of our target market knows we exist?
• What percentage of a specific customer group has favorable impressions of our brand? And how can we increase this percentage?

These are all examples of pretty specific questions that can serve as excellent goals to define a research project’s scope. While your own questions may be different, use these as a guide for how to ask questions that are precise enough to be meaningful.

In some cases, you might actually already have hypotheses, and that’s also a great way to define a project. Examples of hypotheses that a research project can be designed to test include the following:

• We have a hypothesis that awareness of our product is dramatically higher among 18- to 35-year-olds than among those 36 to 49.
• We have a hypothesis that we can charge a premium for product X if it includes feature Y.
• We have a hypothesis that packaging preferences for our category vary dramatically by world region.
• We have a hypothesis that our new product is likely to cannibalize sales of one of our other products.
• We have a hypothesis that customer buying criteria are shifting such that customers are now primarily buying on price.
• We have a hypothesis that sales of new product A are lackluster because our channel partners are not adequately trained with it.

Whether in the form of questions or hypotheses, specifying, agreeing on, and documenting specific goals at project onset is the first step. Whether you have questions or specific hypotheses, once you identify your top two or three priorities, you can proceed to the next steps: choosing the best option for meeting your goals, writing the RFP, and identifying potential agencies.

Wait a minute. “Just two or three?” you ask. Yes. The most successful custom MR projects have one or two high-level goals, three at the most. Of course, under that level, there can be several subgoals.

For example, in a case where the primary goal is to measure brand awareness among a target customer group, appropriate subgoals might be (a) to understand how that varies by region or country, and (b) to test how it compares relative to competitive brands. So, yes, stick to just a few high-level goals—but of course, each may have a set of appropriate subgoals.

This is an excerpt from the book, "How to Hire & Manage Market Research Agencies," which is available on Amazon . Published by Research Rockstar LLC . Copyright © by Kathryn Korostoff. All rights reserved.

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4 Business Goals Market Research Can Help You Accomplish

by Caitlin Stewart , on February 5, 2015

Some of the overarching goals that market research can help organizations accomplish, include: making important business decisions, securing investments and funding, determining new business opportunities, and even avoiding business failures.

Making solid business decisions.

There might come a time when your organization reaches a point where a critical decision must be made. In almost any circumstance where this occurs, having information on your market, competition, and the industry as a whole will allow you to make the most successful business decision . Having a lack of information, specifically a lack of market research, can hurt an organization when making an important business decision, as the decision might be based off out of date or irrelevant information. This can negatively affect the business.

Securing funding from investors.

When you have a new idea for a company or a new product, one of the biggest steps is securing funding from investors . Before pitching an idea, it is important to recognize that the investors are going to want to know you have done your homework. Market research can allow you to learn more about the industry, current or potential competition, and, most importantly, whether your idea is going to solve an existing problem in the market.

Determining new business opportunities.

It is important for organizations to recognize that market research can be more than just learning about trends and consumer behavior. Identifying opportunities through the information given can allow your organization to find new revenue streams for your business. In addition to opening new channels for revenue, market research can reveal opportunities for a business to pivot in the face of certain challenges. Pivoting for a company can be a dramatic or small change, with either way having the overall goal to change the business model for a product, strategy, or idea that promotes company growth. Market research can play a critical role in this process, which ultimately will determine entirely new business opportunities for the organization.

Avoiding business failures.

Most people think about market research as being proactive, eg: it helps you enter a new market or plays a critical role in the development of a new product. But, business intelligence also serves an important purpose in mitigating risk. Sometimes, research is what makes a company decide not to do something, something that ultimately could cost the organization a loss in revenue, its brand image, etc. While this is sometimes overlooked, it is truly an important aspect of how market research helps organizations accomplish their goals.

For more information on how market research can help your organization accomplish its goals, download our free eBook .

About the Author : Caitlin Stewart is a Marketing Associate at MarketResearch.com.

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• Research Objectives | Definition & Examples

Research Objectives | Definition & Examples

Published on July 12, 2022 by Eoghan Ryan . Revised on November 20, 2023.

Research objectives describe what your research is trying to achieve and explain why you are pursuing it. They summarize the approach and purpose of your project and help to focus your research.

Your objectives should appear in the introduction of your research paper , at the end of your problem statement . They should:

• Establish the scope and depth of your project
• Contribute to your research design
• Indicate how your project will contribute to existing knowledge

Table of contents

What is a research objective, why are research objectives important, how to write research aims and objectives, smart research objectives, other interesting articles, frequently asked questions about research objectives.

Research objectives describe what your research project intends to accomplish. They should guide every step of the research process , including how you collect data , build your argument , and develop your conclusions .

Your research objectives may evolve slightly as your research progresses, but they should always line up with the research carried out and the actual content of your paper.

Research aims

A distinction is often made between research objectives and research aims.

A research aim typically refers to a broad statement indicating the general purpose of your research project. It should appear at the end of your problem statement, before your research objectives.

Your research objectives are more specific than your research aim and indicate the particular focus and approach of your project. Though you will only have one research aim, you will likely have several research objectives.

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Research objectives are important because they:

• Establish the scope and depth of your project: This helps you avoid unnecessary research. It also means that your research methods and conclusions can easily be evaluated .
• Contribute to your research design: When you know what your objectives are, you have a clearer idea of what methods are most appropriate for your research.
• Indicate how your project will contribute to extant research: They allow you to display your knowledge of up-to-date research, employ or build on current research methods, and attempt to contribute to recent debates.

Once you’ve established a research problem you want to address, you need to decide how you will address it. This is where your research aim and objectives come in.

Step 1: Decide on a general aim

Your research aim should reflect your research problem and should be relatively broad.

Step 2: Decide on specific objectives

Break down your aim into a limited number of steps that will help you resolve your research problem. What specific aspects of the problem do you want to examine or understand?

Step 3: Formulate your aims and objectives

Once you’ve established your research aim and objectives, you need to explain them clearly and concisely to the reader.

You’ll lay out your aims and objectives at the end of your problem statement, which appears in your introduction. Frame them as clear declarative statements, and use appropriate verbs to accurately characterize the work that you will carry out.

The acronym “SMART” is commonly used in relation to research objectives. It states that your objectives should be:

• Specific: Make sure your objectives aren’t overly vague. Your research needs to be clearly defined in order to get useful results.
• Measurable: Know how you’ll measure whether your objectives have been achieved.
• Achievable: Your objectives may be challenging, but they should be feasible. Make sure that relevant groundwork has been done on your topic or that relevant primary or secondary sources exist. Also ensure that you have access to relevant research facilities (labs, library resources , research databases , etc.).
• Relevant: Make sure that they directly address the research problem you want to work on and that they contribute to the current state of research in your field.
• Time-based: Set clear deadlines for objectives to ensure that the project stays on track.

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

Methodology

• Sampling methods
• Simple random sampling
• Stratified sampling
• Cluster sampling
• Likert scales
• Reproducibility

 Statistics

• Null hypothesis
• Statistical power
• Probability distribution
• Effect size
• Poisson distribution

Research bias

• Optimism bias
• Cognitive bias
• Implicit bias
• Hawthorne effect
• Anchoring bias
• Explicit bias

Research objectives describe what you intend your research project to accomplish.

They summarize the approach and purpose of the project and help to focus your research.

Your objectives should appear in the introduction of your research paper , at the end of your problem statement .

Your research objectives indicate how you’ll try to address your research problem and should be specific:

Once you’ve decided on your research objectives , you need to explain them in your paper, at the end of your problem statement .

Keep your research objectives clear and concise, and use appropriate verbs to accurately convey the work that you will carry out for each one.

I will compare …

A research aim is a broad statement indicating the general purpose of your research project. It should appear in your introduction at the end of your problem statement , before your research objectives.

Research objectives are more specific than your research aim. They indicate the specific ways you’ll address the overarching aim.

Scope of research is determined at the beginning of your research process , prior to the data collection stage. Sometimes called “scope of study,” your scope delineates what will and will not be covered in your project. It helps you focus your work and your time, ensuring that you’ll be able to achieve your goals and outcomes.

Defining a scope can be very useful in any research project, from a research proposal to a thesis or dissertation . A scope is needed for all types of research: quantitative , qualitative , and mixed methods .

To define your scope of research, consider the following:

• Budget constraints or any specifics of grant funding
• Your proposed timeline and duration
• Specifics about your population of study, your proposed sample size , and the research methodology you’ll pursue
• Any inclusion and exclusion criteria
• Any anticipated control , extraneous , or confounding variables that could bias your research if not accounted for properly.

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