analysis in market research

How to do Market Analysis in 6 Easy Steps

Knowing how to do market analysis is pivotal for many roles, benefiting any organization, regardless of its size, scope, or sector.

Regular market analysis levels up your individual ability to spot potential opportunities, stay on top of current trends, and gives you insights into the competitive landscape .

This article will cover why you need to analyze a market frequently and shows you how to do a basic market analysis in 6 straightforward steps.

What is a market analysis?

Market analysis is the process of gathering data about a target market . It examines the competitive landscape, consumers, and conditions that impact the marketplace.

The benefits of market analysis

Here are eight reasons why a regular market analysis is beneficial:

• Understand the competitive landscape
• Spot trends in your market
• Uncover opportunities for growth or diversification
• Reduce either risk or cost for launching new products or services
• Develop a deeper understanding of a target audience
• Enhance marketing efforts or discover ways to change
• Analyze business performance within a market
• Identify new segments of a market to target

Why you should conduct a market analysis

Aside from the benefits we’ve already listed, reviewing and redoing your market analysis regularly is important . Here’s why.

• Markets shift
• Consumer behaviors change
• New players enter existing markets
• Disruptive technologies and enhancements to rival offerings can shift the landscape
• External events impact market conditions that drive changes

If you already know how to do market analysis, ask yourself how frequently you undertake the task: is it annually or quarterly? And consider the time it takes and the tools you used to obtain your information.

With this in mind, we’ll walk you through the most effective market analysis methods. Showing you the steps to take, with market analysis examples, to bring these steps to life.

How to conduct a market analysis

These six steps break down how to analyze a market into easy-to-follow, digestible stages.

Before you start: Use a framework to record your findings. There are plenty of visualization tools, but a basic excel sheet will be fine if you want to keep it simple. Why? Because when you return to review this analysis and repeat this exercise, you’ll want to have everything recorded in a single place. It will save you time and make any future comparisons easier.

Step 1 – Market segmentation

What: Whether you want to enter a new market , launch a new product, or simply assess opportunities for an existing business, this first step in the market analysis process is crucial yet often overlooked.

Why: Market segmentation helps you identify the core segments of a market to target. By identifying the portion of a market your products will be suitable for, you can accurately define the market size and better understand your potential customers’ specific needs and preferences.

How: There are multiple ways you can segment a market, and the right approach will depend on your product, its customers, and its target profiles.

Here, we can see how a segment is built using Similarweb’s website segment feature. I specifically want to view the credit card sector in the US, a market made up of pure players (think Amex or Visa ) and individual players with credit card lines as one of their segments (think Wells Fargo or USAA ). By splitting up a market like this, I can analyze the areas of business I care about more for my market analysis.

So, instead of viewing data that encompasses the other lines of business the likes of Wells Fargo and the USAA handle, such as loans, I get to hone in on their credit card segments only.

This is just one example of market segmentation. You can also segment a market based on consumer needs, ideal consumer profiles, regions, and other demographic data.

Step 2 – Market sizing

What: Market sizing determines your target market’s potential volume or sales revenue. It’s an essential component of market analysis that uses either secondary or primary research to explore the actual size of the market you are in or wish to enter. 

Total Addressable Market (TAM) – This gives you the complete value of the overall market and the first step in the market sizing process . Let’s say we want to analyze the US credit card market, the TAM would account for the whole of this market. Service Addressable Market (SAM) looks at potential audience volumes for a product or service in a target region. Sticking with the credit card sector example, this could be the total value of the credit card business that specifically targets the ‘poor credit rating’ segment of this market. Share of Market (SOM) – Also known as ‘service addressable market,’ it represents the proportion of your SAM that you are likely to achieve. SOM is always lower than SAM, taking a range of estimates based on the previous year’s performance or current market share + project growth to arrive at this figure.

Why: Market sizing helps businesses understand the size of their opportunity. By understanding the size and scope of a market, companies can better assess the potential profitability of the market. Tracking market share over time can also show who wins or loses at any given time.

Power-up Your Market Analysis with Similarweb Today

Market analysis example: market sizing.

Using a metric known as traffic share , we can estimate the potential market size by showing the total reachable audience you have or could have with a product or service.

Using Similarweb Industry Analysis , I can see a real-time snapshot of my market’s performance. With it, I can see the total number of people in a market (unique visitors) and establish how much of that share I have or will target this year.

When sizing a market, it’s easy to fall into the habit of analyzing the market quarterly or annually. But often, the best insights are dynamic in nature. They appear to show shifts, sometimes unexpectedly or can indicate growth and changing behaviors as the year progresses. This is why we place a high emphasis on continuing a market analysis throughout the year.

Here, we’re looking at traffic share changes over time using Similarweb’s market trends. You can see the impact of Snychrony’s growth (in green) as they gain traction, along with USAA (purple). At the start of the year, these two players had no impact on the market. By the end of 2022, they’re showing gains and would be two key competitors to track when you reach step 4 of the market analysis process.

Those analyzing a market annually would miss out on key insights that show the rise of these two emerging players. At the end of the year, they’ve already grabbed a chunk of the market and, if they continue on the same trajectory, will continue to do so in 2023.

With the right tools, you get a dynamic view of the market data you need, allowing you to change tactics when markets shift.

Step 3 – Market trends

What: Reviewing current trends is key to any good market analysis. As we all know, trends can rise and fall at a moment’s notice. This is why this activity, in particular, is one you should routinely perform.

Why: Keeping a finger on the pulse can help you adapt and flex, at the right time, in the right way. Market trends give you insights into the current market situation and potential opportunities and challenges. Doing so can help you identify areas for growth, spot potential risks, and plan effective strategies. Market trends can also provide valuable information about customer preferences, competition, and economic and technological developments. By monitoring these trends, businesses can stay ahead of the curve and make informed decisions that will benefit their bottom line.

You may have heard about ChatGPT in the press ; this is an example of a highly-disruptive technology that has the potential to completely shift an entire market; many, in fact. It managed to gain over 1 million users within its first week on the market. And it’s a great example of why regular market trends analysis should occur.

How: There are lots of ways new market trends can surface. Consumer behavior, economic trends, technological advancements, and the competitive landscape can impact how markets behave. Legal and regulatory changes can also influence trends and changes too.

Staying up to date with industry news and legislation changes is useful. But it takes time, and it’s not always the most effective way to know when consumer sentiment changes.

Market research surveys are one way to understand customer attitudes and needs and how they shift over time. However, it’s not the most effective way to inform your market analysis. Particularly when you want real-time market intel.

Market analysis example: trend detection 

Similarweb analyzes billions of data signals daily to deliver game-changing insights about any market, region, or individual company. So, as we look at how to do market analysis, I wanted to share a practical example of how clients use Similarweb to spot trends in a market.

Wonderbly , a global business, provides personalized books, serving over 6 million customers. To grow its business, it conducts regular market analysis. As part of this process, they analyzed seasonal trending keywords within Similarweb. Let’s look at what it found out and how it impacted the business.

Wonderbly was able to spot an emerging category (anniversaries and weddings) that was not currently catered for within its own product set. In addition to being able to capitalize on seasonal trends in its market, it achieved a 69% revenue in books purchased by a more mature demographic and a completely new audience for its business.

Read more: Wonderbly’s market analysis success story .

Step 4 – Competitive analysis

What: A competitive analysis involves collecting and reviewing data about key industry players, rivals, or emerging stars in your market. It unpacks and tracks their activities and successes, letting you see what’s working, how they go to market and the various marketing strategies they use to attract and retain customers.

Why: Regardless of your size or scope, understanding the competitive landscape is key. Your target audience knows your competitors and will likely size up the pros and cons of buying from thesm before considering whether to do business with you. A robust competitive analysis can help you refine your own offerings, make informed pricing decisions, show where you can beat out your rivals, and identify areas for improvement or diversification.

How: A tried and trusted tool for this process is the well-known SWOT analysis . It lets you map and view what and how each competitor takes its products to market. Considering things like pricing, positioning, marketing, services, and more. A competitive matrix is another tool used to visualize data about rivals in a market.

To do it, download our free competitive analysis framework . Then, pick five competitors in your market to track. Complete each section, and analyze the results to discover your biggest opportunities.

Step 5 – Develop strategies

What: Use the results of your market analysis to make data-driven decisions .

Why: When you read a post about how to do market analysis, the chances are you’ve got a goal in mind. Perhaps you want to explore a new market before deciding if it’s ripe for entry. You may want to introduce a new product or service or acquire an existing company. Whatever your goal is, ensure you put the insights and data you’ve obtained to good use.

How: Create a list of potential opportunities, then build strategies around each. Here, you might evaluate potential ideas based on project costs or timeframes. Once you’ve clearly mapped out each opportunity, and understand the potential impact it will have, along with associated costs and timeframes, you can think strategically about which ideas to move forward with from both a short and long-term perspective.

Pro Tip: Use a framework to record, capture, and review the data you’ve collected about market segmentation, size, trends, and key competitors. You can draw inspiration from our downloadable competitive analysis frameworks. However, what’s key is that you systematically record your findings and review them regularly.

Step 6 – Monitor the market

What: Keep track of your market and its key players; monitor changes over time.

Why: We know markets shift, whether they’re impacted by consumer behaviors, external factors, or something else. So, it’s important to monitor changes over time.

How: We may be a little biased, but Similarweb gives you a real-time bird-eye view of your market. Letting you dive into the details and unpick changes and tactics whenever you need. With it, you can track key growth metrics, marketing channels, emerging players, trending topics , and much more.

Using the Industry Analysis tab in Similarweb Digital Research Intelligence , I can identify the market leaders and rising stars quickly. Here, I immediately see a company to track, Synchrony . As an emerging player showing exponential growth (2700%), I’ll take my market analysis a step further by investigating their successes later.

Similarweb shows me key insights, such as website traffic , the marketing channels it’s getting traffic from, audience demographics , geography , organic search insights, and more. As part of any good market analysis, the ability to spot rising players and unpack their successes can be crucial, particularly when they’re showing such growth.

Analyzing a market: Conclusions

Learning how to do market analysis is the first step. Aside from analyzing the results and making key strategic decisions, the ability to track changes over time is key. Similarweb makes it easy to segment, size, and analyze a market fast. With it, you can spot opportunities, benchmark your performance, and monitor shifts and changes as they happen, not a month or quarter later.

What are the 4 types of market analysis?

The four types of market analysis are market segmentation, market sizing, market trends, and competitive analysis.

What are the five components of market analysis?

The five components of market analysis are: customer segmentation, customer needs and trends, competitors, market size and trend, and pricing.

What makes a good market analysis?

A good market analysis should include accurate, up-to-date data, clear objectives, and a thorough market and customer needs analysis.

Is market analysis the same as a SWOT analysis?

No, market analysis and SWOT analysis are not the same. While a SWOT analysis evaluates an organization’s strengths, weaknesses, opportunities, and threats, a market analysis focuses on the external environment, such as customer needs, market trends, and competitors.

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What Is Market Research?

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

The Bottom Line

• Marketing Essentials

How to Do Market Research, Types, and Example

Joules Garcia / Investopedia

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

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

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

Key Takeaways

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

Market Research

How market research works.

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

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

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

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

Primary Market Research vs. Secondary Market Research

Market research usually consists of a combination of:

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

Primary Market Research

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

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

Secondary Market Research

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

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

History of Market Research

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

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

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

Types of Market Research

Face-to-face interviews.

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

Market research and surveys were adapted from these early techniques.

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

Focus Groups

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

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

Phone Research

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

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

Survey Research

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

Online Market Research

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

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

How to Conduct Market Research

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

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

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

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

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

Benefits of Market Research

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

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

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

Example of Market Research

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

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

What Are the Main Types of Market Research?

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

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

What Is Online Market Research?

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

What Are Paid Market Research Surveys?

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

What Is a Market Study?

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

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

Britannica Money. “ Market Research .”

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

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How to Do Market Research: The Complete Guide

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

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

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

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

What is market research?

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

Why is market research important? 

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

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

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

Types of market research 

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

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

1. Qualitative research

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

2. Quantitative research

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

3. Exploratory research

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

4. Descriptive research

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

5. Causal research

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

6. Cross-sectional research

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

7. Longitudinal research

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

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

Primary vs. secondary market research

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

Primary market research 

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

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

Secondary market research 

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

Here are the main characteristics of secondary market research:

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

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

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

Market research methods

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

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

1. Surveys and questionnaires

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

2. Interviews

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

3. Focus groups

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

4. Observational research

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

5. Online research tools

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

6. Experiments

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

7. Content analysis

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

8. Ethnographic research

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

How to do market research

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

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

1. Set clear objectives

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

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

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

2. Identify your target audience

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

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

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

3. Choose your research methods

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

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

4. Use the right market research tools

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

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

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

5. Collect data

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

6. Analyze data

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

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

7. Interpret your findings

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

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

8. Identify opportunities and challenges

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

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

9. Make informed business decisions

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

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

10. Monitor and adapt

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

Online market research sources

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

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

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

Market research examples

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

Example 1: Apple’s iPhone launch

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

Example 2: McDonald’s global expansion

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

Example 3: Organic and sustainable farming

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

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

Market research templates

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

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

Strengthen your business with market research

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

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

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

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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

Updated: 02/21/24

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

• SWOT Analysis Template
• Survey Template
• Focus Group Template

You're all set!

Click this link to access this resource at any time.

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.

Don't forget to share this post!

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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 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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How to Conduct a Market Analysis? (+ Examples)

Appinio Research · 04.10.2023 · 29min read

Are you ready to transform your business with the unparalleled advantages of market analysis? Discover how harnessing the power of data-driven insights can propel your decision-making and unlock exceptional growth opportunities.

In this guide, we delve deep into the art of market analysis, showing you how to gain a competitive edge, tailor your strategies with precision, and, ultimately, boost your success. Let's embark on this journey of discovery together.

What is Market Analysis?

Market analysis is the process of evaluating market conditions and dynamics to understand its potential and make informed decisions. It helps you answer crucial questions:

• Who are your customers?
• What are their needs and preferences?
• Who are your competitors?
• What market trends should you be aware of?

Market analysis is crucial because it empowers you to make data-driven choices, minimize risks, and maximize opportunities.

Why is Market Analysis Important?

Before diving into the analysis, you need to define your objectives. Common goals of market analysis include:

• Market Entry: Evaluating the feasibility of entering a new market.
• Product Development : Identifying market gaps for new product development.
• Competitor Analysis: Understanding your competition's strengths and weaknesses.
• Strategic Planning: Shaping your business strategies based on market insights.

Benefits of Effective Market Analysis

Conducting a thorough market analysis brings several benefits:

• Risk Mitigation: Minimize the risk of entering an unprofitable market.
• Resource Allocation: Optimize resource allocation for marketing and product development.
• Competitive Advantage: Gain a competitive edge by understanding your market better.
• Innovation: Identify opportunities for innovation and growth.

Now that you understand the importance of market analysis, let's move on to the practical steps involved.

How to Prepare for Market Analysis?

Before diving into market analysis, setting the stage for success is essential. Here are the key steps to prepare for market analysis:

• Set Clear Objectives: Define your specific goals and objectives for the analysis. Be clear about what you want to achieve. For example, if you're planning to enter a new market, your purpose might be to determine market demand and competition.
• Identify Target Audience: Knowing your audience is crucial. Identify the demographics, preferences, and behaviors of your target market. This information will guide your data collection methods .
• Gather Necessary Resources: Market analysis requires data, tools, and expertise. Ensure you have access to the resources you need. This might include budget allocation for research tools, hiring analysts, or outsourcing data collection.
• Consider Ethical Considerations: Ethical guidelines are paramount in market analysis. Ensure that your data collection methods and analysis processes adhere to ethical standards, respecting privacy and confidentiality.

With your preparations in place, you're ready to collect the data necessary for your market analysis.

Data Collection for Market Analysis

Accurate and relevant data is the lifeblood of market analysis. Here's how you can gather the information you need:

Primary Data Sources

Primary data refers to information collected directly from the source. You can obtain primary data through:

• Surveys: Conducting surveys to gather insights from your target audience.
• Interviews: Engaging in one-on-one interviews with industry experts or potential customers .
• Observations: Collecting data by observing customer behavior or market trends.

Secondary Data Sources

Secondary data is information that already exists and is collected by someone else. Sources of secondary data include:

• Market Reports: Industry-specific reports and publications.
• Government Data: Data provided by government agencies.
• Competitor Reports: Analyzing reports and information about your competitors.

Qualitative Data Collection Methods

Qualitative data provides in-depth insights into customer attitudes and behaviors. Qualitative methods include:

• Focus Groups: Gathering a small group of participants to discuss specific topics.
• In-Depth Interviews: Conducting in-depth interviews with individuals to explore their perspectives.

Quantitative Data Collection Methods

Quantitative data is numerical and can be analyzed statistically. Common quantitative methods include:

• Surveys: Creating structured questionnaires for large-scale data collection.
• Online Analytics: Analyzing website and social media metrics for user behavior.

With your data collected, it's time to move on to the next crucial step: analyzing and interpreting the data.

Market Research Techniques

Analyzing the data you've collected is where the real insights come to light. Let's explore various market research techniques that help you make sense of your data.

Surveys and Questionnaires

Surveys and questionnaires are powerful tools for collecting quantitative data. They allow you to gather structured responses from a large sample of participants. When designing surveys, consider:

• Question Types: Crafting survey questions that are clear and unbiased.
• Sampling Techniques: Ensuring your sample is representative of your target audience.
• Data Analysis: Applying statistical methods to analyze survey data.

Interviews provide qualitative data through in-depth conversations with individuals. Key considerations include:

• Interview Structure: Developing a structured interview guide.
• Listening Skills: Active listening to uncover valuable insights.
• Transcribing and Coding: Transcribing interviews and coding responses for analysis.

Focus Groups

Focus groups involve small group discussions, providing rich qualitative data. To conduct effective focus groups:

• Moderation Skills: Skillfully moderating group discussions.
• Participant Selection: Recruiting diverse participants for varied perspectives.
• Thematic Analysis : Identifying themes and patterns in focus group discussions.

Observational Research

Observational research involves watching and recording customer behavior.

• Research Setting: Choosing the right environment for observations.
• Data Recording: Accurate and detailed recording of observations.
• Interpretation: Interpreting observed behaviors in the context of your objectives.

Competitor Analysis

Competitor analysis involves evaluating your rivals to understand their strengths and weaknesses.

• Identifying Competitors: Determine who your main competitors are.
• Competitive Metrics: Choose relevant metrics to assess competition.
• Benchmarking: Comparing your performance against competitors.

By mastering these market research techniques, you'll be well-prepared to extract valuable insights from your data. The next step is to interpret these insights effectively.

Data Analysis and Interpretation

Analyzing and interpreting data is the heart of market analysis. This process involves converting raw data into actionable insights.

Data Cleaning and Preparation

Data can be messy, and cleaning and preparing it for analysis is essential. This involves:

• Data Cleaning: Removing outliers, errors, and inconsistencies.
• Data Transformation: Converting data into a consistent format.
• Data Validation: Ensuring data accuracy and completeness.

Descriptive Analysis

Descriptive analysis involves summarizing and visualizing data to understand its basic characteristics. Techniques include:

• Summary Statistics: Calculating measures like mean, median, and standard deviation.
• Data Visualization: Creating charts and graphs to represent data visually.
• Data Distribution Analysis: Understanding how data is distributed.

Statistical Analysis

Statistical analysis allows you to draw meaningful conclusions from your data. Techniques include:

• Hypothesis Testing: Testing hypotheses to make data-driven decisions.
• Regression Analysis: Examining relationships between variables.
• Segmentation Analysis: Grouping data for more targeted insights.

Identify Trends and Patterns

Identifying trends and patterns in your data helps you make predictions and formulate strategies.

• Time Series Analysis: Analyzing data over time to identify trends.
• Pattern Recognition: Spotting recurring patterns in customer behavior.
• Predictive Modeling: Using data to make future predictions.

Armed with these analytical skills, you can effectively uncover valuable insights that inform your business decisions.

Market Segmentation

Market segmentation is crucial in understanding your audience better and tailoring your strategies accordingly.

What is Market Segmentation?

Market segmentation involves dividing your market into distinct groups based on shared characteristics. This is significant because it allows you to:

• Target Specific Audiences: Tailor your marketing efforts to specific segments.
• Personalize Products: Customize products and services to meet segment needs.
• Optimize Resource Allocation: Allocate resources more efficiently by focusing on high-potential segments.

Types of Market Segmentation

There are various ways to segment a market, including:

• Demographic Segmentation : Dividing based on age, gender, income, etc.
• Psychographic Segmentation : Grouping by lifestyles, values, and attitudes.
• Geographic Segmentation: Segmenting by location or region.
• Behavioral Segmentation : Dividing based on buying behavior and preferences.

Targeting Specific Market Segments

After segmentation, you must target your chosen segments effectively. This involves:

• Positioning: Crafting a unique value proposition for each segment.
• Messaging: Tailoring your marketing messages to resonate with each segment.
• Product Development: Adapting products to meet segment-specific needs.

By understanding your market segments, you can connect with your audience on a deeper level and increase your chances of success.

SWOT Analysis

A SWOT analysis is a valuable tool for assessing your business's internal strengths and weaknesses, as well as external opportunities and threats.

Identify and leverage your strengths, such as:

• Unique Products: What sets your products apart from the competition?
• Skilled Workforce: Highlight the expertise of your team.
• Strong Brand: Emphasize your brand reputation and recognition.

Acknowledge and address your weaknesses, including:

• Limited Resources: Recognize budget constraints or resource shortages.
• Market Share: Assess areas where competitors outperform you.
• Operational Challenges: Identify internal issues that need improvement.

Opportunities

Exploit opportunities in your market, such as:

• Market Growth: Explore emerging markets and trends.
• Partnerships: Seek collaboration with complementary businesses.
• New Technologies: Embrace innovations that can improve your operations.

Mitigate potential threats, such as:

• Competition: Analyze the competitive landscape and potential disruptors.
• Economic Trends: Consider how economic fluctuations may affect your business.
• Regulatory Changes: Stay updated on industry regulations and compliance.

Conducting a SWOT analysis helps you develop strategies that capitalize on strengths, mitigate weaknesses, seize opportunities, and guard against threats.

How to Conduct Competitive Market Analysis?

Competitive market analysis is a critical component of your overall market analysis strategy. Understanding who your competitors are, analyzing their strengths and weaknesses, and conducting competitive benchmarking are essential steps to gain a strategic advantage in your market.

1. Identify Key Competitors

Identifying your key competitors is the first step in a competitive market analysis. Key competitors are those businesses that directly compete with you for the same target audience or market share. Here's how to identify them:

• Market Research : Conduct thorough market research to identify businesses offering similar products or services in your industry or niche.
• Customer Feedback: Listen to your customers. Often, they will mention your competitors when discussing alternatives or choices.
• Industry Associations: Explore industry associations, directories, or trade publications to find a list of competitors.
• Online Search: Use search engines and social media platforms to discover businesses that appear in similar search results or target similar keywords.

Once you have identified your key competitors, you can move on to a more in-depth analysis of their strengths and weaknesses.

2. Analyze Competitor Strengths and Weaknesses

Analyzing competitor strengths and weaknesses provides valuable insights into their strategies and helps you identify opportunities and threats. Here's how to conduct this analysis effectively:

Product or Service Offering

• Strengths: Determine what your competitors excel at regarding product quality, features, and innovation.
• Weaknesses: Identify areas where their products or services fall short compared to yours.

Pricing Strategies

• Strengths: Analyze whether competitors offer competitive pricing or unique pricing models.
• Weaknesses: Look for instances where their pricing may be less competitive or prohibitive.

Market Share and Customer Base

• Strengths: Assess the size of their customer base and market share in your industry.
• Weaknesses: Investigate whether they have any vulnerabilities or dependencies on a specific customer segment.

Marketing and Branding

• Strengths: Analyze their marketing strategies, branding efforts, and customer engagement tactics.
• Weaknesses: Identify any gaps or areas where their marketing efforts may be less effective.

Customer Reviews and Feedback

• Strengths: Look for positive customer reviews and feedback to understand what your competitors are doing well.
• Weaknesses: Pay attention to negative reviews and areas where customers express dissatisfaction.

This analysis will help you identify areas where you can differentiate yourself and gain a competitive edge. It also enables you to anticipate how competitors might respond to your strategies.

3. Competitive Benchmarking

Competitive benchmarking involves comparing your performance and strategies against those of your key competitors. It allows you to set performance goals, identify best practices, and continuously improve.

• Select Key Metrics: Choose the key performance metrics that matter most to your business. These could include revenue growth, customer acquisition costs, customer satisfaction scores, or market share.
• Gather Data: Collect data on these selected metrics for both your business and your competitors. This data can come from public sources, industry reports, or your own internal records.
• Analyze and Compare: Compare your performance against that of your competitors using the selected metrics. Pay close attention to areas where you outperform them and areas where you lag behind.
• Identify Best Practices: Identify the strategies and practices that contribute to your competitors' success. Learn from their best practices and consider implementing similar strategies in your business.
• Set Improvement Goals: Based on your analysis, set specific improvement goals for your business. These goals should be realistic and aligned with your overall business objectives.
• Monitor Progress: Regularly monitor your progress toward achieving your improvement goals. Adjust your strategies and tactics as needed to stay competitive.

Competitive benchmarking is an ongoing process. By continuously assessing your performance compared to your competitors, you can adapt and refine your strategies to maintain a competitive advantage in the market.

How to Conduct Comparative Market Analysis?

Comparative market analysis involves assessing your market position, understanding competitor strategies and performance, and identifying opportunities for growth. Let's explore each aspect in more detail.

What is Comparative Analysis in Market Research?

Comparative analysis involves examining your business in relation to your competitors and the overall market. It helps you:

• Gain Perspective: Understand where your business stands in the market landscape.
• Identify Trends: Recognize industry trends and shifts.
• Spot Opportunities: Discover areas where your business can excel or innovate.

To conduct an effective comparative analysis:

• Collect Data: Gather data on your business, competitors, and the market as a whole.
• Use Key Metrics: Focus on key performance metrics relevant to your industry.
• Benchmark Against Competitors: Compare your performance against that of your direct competitors.

Analyzing Competitor Strategies and Performance

Analyzing competitor strategies and performance is a critical aspect of comparative analysis. Here's how to go about it:

1. Competitor Strategies

Product and Service Strategies: Examine their product/service offerings and pricing strategies.

• Marketing and Promotion: Analyze their marketing campaigns, messaging, and customer engagement tactics.
• Distribution Channels: Understand how they reach and distribute products or services to customers.
• Innovation: Identify areas where they innovate or introduce new features.

2. Financial Performance

• Revenue and Growth: Assess their revenue figures and growth rates over time.
• Profit Margins: Analyze their profit margins and how they compare to industry standards.
• Investment and Funding: Explore whether they have secured significant investments or funding.

3. Customer Engagement

• Customer Base: Understand the size and composition of their customer base.
• Customer Satisfaction: Look for indicators of customer satisfaction, such as reviews or feedback.

4. Market Presence

Market Share: Determine their market share in your industry or niche.

Geographic Reach: Explore the regions or markets they serve.

Identifying Market Position and Opportunities

Identifying your market position and opportunities is the ultimate goal of comparative market analysis. Here's how to accomplish this:

1. Market Position

• Relative Strengths: Determine where your business excels compared to competitors.
• Areas of Improvement: Identify areas where you lag and need improvement.
• Market Niche: Define your unique value proposition and niche within the market.

2. Opportunities

• Competitive Gaps: Recognize gaps in the market that your business can fill.
• Unmet Customer Needs: Explore customer needs that competitors are not effectively addressing.
• Emerging Trends: Stay alert to emerging industry trends and adapt your strategies accordingly.

3. Strategic Planning

• Strategy Development: Formulate strategies that capitalize on your strengths and address weaknesses.
• Innovation: Consider innovative approaches to differentiate your business.
• Risk Mitigation: Develop plans to mitigate risks associated with market dynamics.

By conducting a comprehensive comparative market analysis, you gain a deeper understanding of your competitive landscape, enabling you to make informed decisions, refine your strategies, and seize growth opportunities effectively. This process should be ongoing, as the market is dynamic and ever-changing.

Competitive Market Analysis vs. Comparative Market Analysis

While these approaches share some similarities, they serve distinct purposes and offer unique insights. Let's explore the key differences and applications of each.

Competitive Market Analysis

Objective: Competitive Market Analysis primarily focuses on assessing your direct competitors and understanding their strategies, strengths, weaknesses, and overall market position. Its main goal is to help you gain a competitive edge by learning from and responding to your rivals effectively.

Key Aspects:

• Competitor-Centric: It revolves around thoroughly examining specific competitors that directly impact your business.
• Strategy-Oriented: The emphasis is on understanding your competitors' strategies, pricing models, product offerings, and marketing tactics.
• Market Positioning: It helps you define your position in relation to your immediate competitors and identify areas for differentiation.
• Direct Impact: Competitive Market Analysis is often employed for short-term decision-making, such as refining marketing strategies or adjusting pricing to respond to competitor moves.

Comparative Market Analysis

Objective: Comparative Market Analysis takes a broader perspective by evaluating your business within the context of the entire market. It aims to provide a comprehensive view of your market's dynamics, trends, and opportunities, helping you make informed, long-term strategic decisions.

• Market-Centric: It considers a broader view of the market, including competitors, potential entrants, and industry dynamics.
• Trend Analysis : Comparative Market Analysis looks at industry trends, market growth, consumer behavior, and emerging technologies that may impact your business.
• Strategic Insights: It provides strategic insights that extend beyond immediate competition, helping you identify opportunities for market expansion , diversification, or innovation.
• Long-Term Planning: This approach is suitable for long-term strategic planning, such as entering new markets, launching new products, or adapting to evolving market conditions.

How to Choose the Right Approach?

The choice between Competitive Market Analysis and Comparative Market Analysis depends on your specific business goals and the depth of insights you seek:

• Use Competitive Market Analysis when you need to closely monitor and respond to specific competitors' actions, refine short-term strategies, or differentiate your offerings within a crowded market segment.
• Opt for Comparative Market Analysis when you are making long-term strategic decisions, considering market expansion, or seeking to innovate based on broader industry trends. This approach provides a holistic view that extends beyond immediate competitors.

In practice, many businesses find value in combining elements of both approaches to gain a comprehensive understanding of their market environment. The key is to align your analysis with your strategic objectives and adapt your approach as your business evolves.

Market Analysis Template

A well-structured market analysis template is invaluable for streamlining the market research process, ensuring you cover all essential aspects and gather data systematically. Let's explore the components of an effective market analysis template and how to customize it to your specific needs.

How to Create a Structured Market Analysis Framework?

A comprehensive market analysis template typically includes the following sections:

1. Market Overview

• Market Size: Describe the current size and potential growth of the market.
• Market Segmentation: Identify key segments within the market.
• Market Trends: Highlight recent trends and developments.

2. Competitive Landscape

• Competitor Identification: List your main competitors and potential disruptors.
• Competitor Analysis: Evaluate their strengths, weaknesses, opportunities, and threats (SWOT).
• Competitive Advantage: Explore ways in which your business can gain a competitive edge.

3. Target Market Analysis

• Customer Personas: Develop detailed customer personas based on demographics, behavior, and preferences.
• Customer Needs: Understand your target audience's specific needs and pain points.
• Market Demand: Assess the demand for your products or services within your target market.

4. SWOT Analysis

• Strengths: Identify your business's internal strengths and advantages.
• Weaknesses: Acknowledge areas where your business may be vulnerable.
• Opportunities: Explore external factors that can be leveraged for growth.
• Threats: Recognize potential challenges and external risks.

5. Trends and Forecast

• Market Trends: Analyze current trends and their potential impact on your business.
• Market Forecast: Make data-driven predictions about the future of the market.
• Emerging Technologies: Assess how emerging technologies may influence your industry.

How to Utilize Template for Efficient Market Analysis?

Templates not only save time but also ensure that you cover all critical aspects of market analysis. To effectively utilize a template:

1. Identify Relevant Sections

Review the template to identify sections that are relevant to your specific market analysis objectives. Not all sections may be necessary for every analysis.

2. Customize Sections

Tailor each section to your business and market. For example:

• In the "Market Overview" section , provide market data specific to your industry or region.
• In the "Competitive Landscape" section , focus on competitors directly impacting your business.

3. Collect Data Methodically

Use the template as a guide to collect data methodically. It ensures that you gather the right information in a structured manner.

4. Analyze and Interpret Data

After collecting data, analyze and interpret it within the context of each section of the template.

This step provides actionable insights.

5. Draw Conclusions and Recommendations

Utilize the insights gained from your analysis to draw conclusions and formulate recommendations that address your initial market analysis objectives.

6. Report Compilation

Compile the information from your template into a well-organized market analysis report that can be easily shared with stakeholders, investors, or team members.

How to Customize the Market Analysis Template?

Market analysis templates should not be rigid but rather adaptable to meet your unique requirements.

• Additional Sections: If your analysis requires sections not covered in the template, feel free to add them. For example, you might include a section on environmental or sustainability factors.
• Data Sources and Tools: Specify the data sources and analysis tools you'll use for each section. This ensures transparency and accountability in your analysis process.
• Visual Elements: Incorporate charts, graphs, and visual representations where relevant. Graphic elements can make complex data more digestible.
• Timelines and Milestones: If your market analysis is part of a larger project or business plan, include timelines and milestones to track progress.
• Appendices: Consider including appendices with supplementary materials such as raw data, survey questionnaires, or detailed calculations to support your analysis.

Market Analysis Examples

To gain a deeper understanding of how market analysis is applied in real-world scenarios, let's explore a variety of detailed examples that showcase different aspects of this crucial business practice.

Example 1: Entering a New Market

Scenario: Imagine you are the marketing manager of a well-established electronics company considering expansion into a new geographic market. Let's call it Market X.

Market Analysis Objective: Your goal is to assess the feasibility and potential success of entering Market X.

Data Collection and Analysis

• Market Research: Begin by collecting data on Market X, such as population demographics, economic indicators, and consumer behavior.
• Competitor Analysis: Identify and analyze competitors already operating in Market X. Assess their market share, product offerings, pricing strategies, and customer reviews.
• Consumer Surveys: Conduct surveys in Market X to understand consumer preferences, needs, and willingness to adopt your products.
• Regulatory Environment: Investigate the regulatory framework in Market X, including import/export regulations, industry standards, and compliance requirements.

Findings and Insights

• Market Potential: Through extensive data analysis, you discover that Market X has a growing population with a high demand for electronics, indicating market potential.
• Competitive Landscape: You identify several established competitors, but their product offerings are limited in comparison to your company's range.
• Consumer Preferences: Survey results reveal a preference for high-quality, durable electronics aligning with your product portfolio.
• Regulatory Insights: Understanding the regulatory environment helps you plan for compliance, ensuring a smooth market entry.

Recommendations

Based on your analysis, you can make informed recommendations:

• Market Entry Strategy: Develop a comprehensive market entry strategy tailored to Market X, including distribution channels and pricing strategies.
• Product Localization: Customize certain product features to align with local preferences and regulatory requirements.
• Competitive Edge: Leverage your wider product range as a competitive advantage.

Example 2: Product Launch Strategy

Scenario: You work for a startup that has developed an innovative health and fitness wearable device. Your goal is to create an effective product launch strategy.

Market Analysis Objective: Understand your target market, competition, and market trends to launch the wearable successfully.

• Target Audience Profiling: Create detailed customer personas based on demographics, interests, and health and fitness habits.
• Competitor Analysis: Examine the market for similar wearable devices, assessing their features, pricing, and customer reviews.
• Market Trends and Consumer Behavior: Analyze market trends related to health and fitness, wearable technology adoption, and consumer preferences.
• Market Size and Growth: Determine the size of the wearable technology market and its growth rate.
• Target Audience: Detailed personas reveal that your primary customer segments include health-conscious individuals, athletes, and tech enthusiasts.
• Competition: While there are competitors in the market, a gap exists for a wearable that combines health monitoring with advanced fitness tracking.
• Market Trends: Trends show an increasing demand for health-related wearables due to a growing focus on fitness and well-being.
• Market Size: The market is substantial and expected to grow steadily over the next few years.
• Product Features: Focus your product's features on health monitoring and advanced fitness tracking to cater to the identified target segments.
• Pricing Strategy: Set a competitive yet profitable price point for your wearable.
• Marketing Campaign: Develop a marketing campaign highlighting the unique features of your wearable and its benefits for health-conscious consumers, athletes, and tech enthusiasts.

Example 3: Competitive Analysis for an E-commerce Startup

Scenario: You're part of a startup team launching an e-commerce platform that sells handmade artisanal products. You need to understand the competitive landscape to formulate a successful business strategy.

Market Analysis Objective: Gain insights into the e-commerce market for handmade products and identify opportunities for differentiation.

• Competitor Identification: Identify existing e-commerce platforms specializing in handmade products.
• Product Range and Quality: Assess the variety and quality of products offered by competitors.
• Pricing Strategies: Analyze pricing strategies and discount offers of competitors.
• Customer Reviews: Study customer reviews and ratings for competing platforms.
• Competitor Landscape: You discover several established e-commerce platforms in the handmade product niche, but none seem to offer a comprehensive range of unique artisanal items.
• Product Quality: Competitors mainly offer mass-produced items with limited emphasis on craftsmanship and uniqueness.
• Pricing: Pricing strategies appear to be competitive, but customer reviews indicate a desire for more affordable options.
• Product Curation: Focus on curating a selection of high-quality, truly artisanal products to differentiate your platform.
• Competitive Pricing: Offer competitive pricing while maintaining the unique value proposition of handmade items.
• Customer Engagement: Implement strategies to engage customers and gather feedback for continuous improvement.

These examples illustrate how market analysis informs critical business decisions. Whether entering a new market, launching a product, or competing in e-commerce, a data-driven approach empowers you to make informed choices and increase your chances of success.

Remember that market analysis is an ongoing process, and staying updated with evolving market dynamics is essential for long-term success.

Market analysis is your secret weapon for success in the ever-evolving business landscape. By understanding your market, customers, and competition, you gain the knowledge to make informed decisions, identify growth opportunities, and stay ahead of the curve.

Remember, market analysis is not a one-time task; it's an ongoing journey. Continuously gather data, adapt your strategies, and embrace the power of real-time insights. With the right tools and knowledge, you have the potential to turn market analysis into a dynamic force that propels your business to new heights.

How to Conduct Market Analysis in Minutes?

Looking to supercharge your market analysis? Look no further than Appinio , the real-time market research platform changing the game. With Appinio, you can harness the power of real-time consumer insights to make data-driven decisions that drive your business forward.

• Lightning-Fast Insights: Say goodbye to waiting weeks for market research results. Appinio delivers answers to your burning questions in minutes.
• Instant Decision-Making: With real-time consumer insights at your fingertips, you can make informed decisions on the fly, giving your business a competitive edge.
• User-Friendly and Intuitive: Market research doesn't have to be a daunting task. Appinio's user-friendly platform makes it easy for anyone to access and interpret valuable data.

Say goodbye to the old stigma of market research being boring, intimidating, and overpriced. It's time to unlock the power of real-time insights and drive your success.

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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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How To Do Market Research: Definition, Types, Methods

Jan 2, 2024

11 min. read

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

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

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

Table of Contents

What Is Market Research?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Interviews

3. Focus Groups

4. Observations

5. AI-Driven Market Research

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

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

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

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

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

3. Focus groups

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

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

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

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

5. AI-driven market research

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

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

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

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

Examples of common market research questions include:

Demographic market research questions

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

Product or service usage market research questions

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

Brand perception market research questions

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

Buying behavior market research questions

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

Customer satisfaction market research questions

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

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

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

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

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

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

Step 1: Define your objectives

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

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

Step 2: Select your market research methods

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

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

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

Step 3: Develop your research tools

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

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

Step 4: Conduct the market research

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

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

Step 5: Analyze and apply your findings

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

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

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

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

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

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

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How to Conduct Marketing Research and Analysis

A key component of running any successful business is regularly conducting market analysis—a process that provides insight into where the company is and where it's heading. This analysis contains qualitative and quantitative marketing research, primary and secondary research, and additional data points regarding positioning, industry and market statistics, insights into consumer attitudes and buying habits, customer satisfaction, and more.

According to the global data and business intelligence platform Statista, the worldwide market research industry surpassed $81 billion in 2022. 1 The United States Bureau of Labor Statistics (BLS) projects that employment in the industry is due to grow 13% over the next ten years. 2 In light of that strength and likely rapid expansion, facility with marketing research and analysis is an increasingly valuable skill. Keep reading to explore some of the key elements of this essential process.

Market Research, Marketing Research, and Other Key Terms

It’s important to understand the differences between market research/analysis and marketing research/analysis. The terms are similar but the meanings are distinct: 3

• Market research: A study done to collect statistics on a given market within a specific industry
• Market analysis: Interpretation of market information to determine a market’s size, growth potential, audience, and competitive landscape 4
• Marketing research: The process of collecting data to understand consumer behaviors, preferences, and market dynamics
• Marketing analysis: Evaluating and interpreting collected data to draw conclusions, derive actionable insights, and make informed, data-driven marketing decisions

In addition, as you get further into marketing research and analysis, you’ll need to be familiar with these terms:

• Quantitative marketing research involves gathering numerical data to quantify and analyze patterns and relationships in consumer behavior
• Qualitative marketing research involves gathering information that isn't expressed in numbers to gain insights into consumer behaviors, attitudes, and motivations
• Ethnographic research is the process of studying a target audience's environment to gain a clearer understanding of potential customers’ behaviors and preferences
• Market segmentation is the process of dividing a target market into distinct groups of consumers; each group of people shares similar characteristics or needs
• Data mining is the process of analyzing large datasets to identify patterns, relevant trends, and valuable marketing insights; data mining for marketing insights is used to influence strategizing and decision-making
• Competitive analysis: By analyzing competitors to understand their strategies, strengths, weaknesses, and market positioning, businesses become able to identify opportunities and threats
• Market trend analysis is the examination of historic and current market data to identify patterns and emerging trends

Primary and Secondary Research in Marketing: What’s the Difference?

To conduct thorough, effective marketing research and analysis, you need both primary and secondary data.

Primary research involves original data collected directly from targeted sources. This is typically done through in-person or online surveys, focus group studies, observations, or experiments.

Primary research offers several distinct advantages. It’s highly relevant due to its freshness and the researchers’ ability to customize the surveys or studies they administer. It also allows analysts to hone in on the specific market they're trying to understand, which leads to sharper data precision and accuracy.

Secondary research, on the other hand, uses existing information that others have previously collected in the form of published reports, articles, academic papers, market research reports, government publications, industry databases, or historical data.

Secondary research is more cost-effective and saves time because it doesn’t require data collection. It also provides a broader perspective by offering a comprehensive view of trends and historical information.

How to Conduct Quantitative and Qualitative Marketing Research

Quantitative marketing research is a structured process that involves gathering, processing, and interpreting numerical data.

• The process begins with defining specific research objectives and selecting an appropriate quantitative research method, such as experiments or customer surveys
• Researchers then develop a structured instrument, like a questionnaire, to collect numerical data from a representative sample
• After data collection, meticulous data entry is essential for ensuring accuracy
• Analysts then employ statistical analysis methods, such as descriptive and inferential statistics, to interpret the data

Qualitative research delves more into the motivations behind consumer behavior by analyzing non-numerical information. By its nature, qualitative data can be ephemeral—hard to quantify. The research process can involve listening to recordings from focus group studies, reading social media comments and reviews, and understanding subtext from customers based on visual and other non-verbal cues.

• Similar to quantitative marketing research, qualitative research begins by selecting a research method, such as individual interviews or focus groups, and defining research objectives
• Researchers then carefully recruit a diverse set of participants that represent a target audience
• During data collection, the use of open-ended discussions and follow-up questions can uncover meaningful insights that might not be readily apparent at the outset
• Afterward, transcribing the data and looking for recurring themes and patterns can allow researchers to interpret the findings within the context of the research objectives

How To Present Market Research and Analysis

Once you’ve completed marketing research and analysis, you’ll likely be called upon to present your findings. If market research techniques come easily to you but presenting before other people seems daunting, a few simple strategies can streamline the process:

Focus on Key Insights

Highlight the most important findings to avoid overwhelming your audience with too much data. They don’t need or want to know every fact that your research turned up, so stick to the information that addresses their priorities. Be ready to answer questions with contextual, detailed information if people ask for it, but keep the structure of your presentation focused on the big-ticket items.

Use Data Visualization

Data visualization involves using software to display substantial amounts of information in a graphic format: as dashboards, pie charts, graphs, and so on. By presenting your findings visually, you can share them with diverse audiences—company leadership, clients, and other stakeholders—in engaging, relatable ways.

Tell a Story

Frame your presentation as a narrative—that is, tell a story—to engage your audience even more and make your findings memorable. Encourage your audience to ask questions. This turns your presentation into a collaborative dialogue, keeps them involved, and helps you shine as you present direct answers to address their needs.

Add Marketing Research and Analysis to Your Expertise

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Built to accommodate the schedules of working professionals and led by a faculty of industry experts , the program provides networking opportunities that will help you gain insights into industry trends and best practices.

Don’t delay your career ascent . Schedule a call with one of our admissions outreach advisors today.

1. Retrieved on September 21, 2023, from statista.com/topics/1293/market-research/#topicOverview 2. Retrieved on September 21, 2023, from bls.gov/ooh/business-and-financial/market-research-analysts.htm 3. Retrieved on September 21, 2023, from keydifferences.com/difference-between-market-research-and-marketing-research.html 4. Retrieved on September 21, 2023, from coursera.org/articles/market-analysis

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What Is a Market Analysis?

by Alecia Mouhanna , on April 10, 2019

While it’s possible to try to perform your own market analysis, often your best bet is to turn to qualified market research providers like The Freedonia Group, Packaged Facts, and Simba Information, who can provide small- and large-scale industry insights backed by decades of experience and expertise. 

How to Perform a Market Analysis

Experienced research firms understand how to conduct a market analysis so that it is both comprehensive and concise, answering a range of questions, including (but not limited to):

• What is the market size?
• Who is the target customer?
• What is the competitor environment?
• Is the market growing or contracting?
• What are potential disruptors?

Taking into account these key queries, a market analysis provides a high-level perspective on the business environment, identifying both opportunities and restraining factors. Credible market research firms can combine primary and secondary research like government statistics, trade publications, and interviews with other industry experts to answer these questions and generate the most accurate possible picture of the industry.

Examples of Market Analysis

Market analysis is not always one-size-fits-all, and the type that will best suit your business’ needs will depend on your budget and strategic goals. Here are a few key examples of the kinds of high-quality market analysis you can find through Marketresearch.com and its publishing brands.

Comprehensive Industry Reports:  These reports are extensive and wide in scope, offering a broad look at an industry. Reports like these offer not only top line growth rates, but forecasts based on market segmentation and market share by top products and competitors. These studies account for disruptions, regulatory shifts, consumer trends, and other factors that are expected to impact an industry over the forecast period and beyond.

Niche/Hot Topic Studies:  Niche reports offer in-depth examination of fast-growing or revolutionary new product segments that are likely to have significant impact on their overall industries over the short- and/or long-term.

Focus Reports: These are short-format market research reports, intended to provide quick insights on a large number of products and services. The reports center on sizing, segmenting and forecasting markets as well as identifying key suppliers, against a backdrop of key quantitative and qualitative trends.

Custom Research: When off-the-shelf research isn’t available to meet a business' specific needs, clients can commission custom research reports that are tailored to the company's exact requirements. These reports provide enhanced insights on decisions and initiatives such as strategic planning, new product development, geographic market expansion, mergers and acquisitions, competitive intelligence, and much more.

How Can Market Analysis Improve Your Business Plan?

Whether you’re a smaller tier player looking to increase market share, or a leading industry participant defending a top market position, using a market analysis can be beneficial to your business planning. A market analysis can identify not only what the industry is presently doing but where it is going, highlighting areas with the most promising growth opportunities.

Thus, companies that utilize market research are better equipped to make informed decisions regarding research and development and manufacturing investments, regional market entries and expansions, and growth and diversification through M&A activity and new product development.

To Learn More About Market and Industry Analysis

Interested in finding out more about how market research can help you seek new opportunities? Check out  MarketResearch.com's free white paper  Finding Business Opportunities: The Importance of Market Research .  Download the white paper to learn how companies use syndicated research to gain a competitive edge and drive business growth.  

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Market Analysis: What It Is and How to Conduct One in 2024

Navigating a market takes more than intuition: you require an organized plan of attack. Market analysis involves not just understanding its current dynamics but also exploring possible opportunities and risks in it. 

This guide details all the intricacies associated with conducting comprehensive market analyses so marketing professionals can make well-informed decisions and develop strategies tailored specifically for their marketplaces.

Table of Contents

What is Market Analysis?

A quantitative and qualitative market analysis determines both product viability and success for any enterprise, providing details about size, value, customers’ purchasing patterns, and participants within an industry. Market analyses provide invaluable data that helps define an organization’s strengths, weaknesses, risks, or opportunities and help make better decisions through clarity – when conducting your market analysis, ask yourself these questions:

• What are my target audiences and customers for my product or service? 
• How will their purchasing habits and price range impact my market size and sales projections? 
• Who are my direct and indirect competitors? 
• What are my competitors’ strengths and weaknesses?

Companies can opt to conduct the market research themselves or contract with an established market research firm to run it on their behalf.

Why You Should Conduct a Market Analysis?

A solid market analysis should always form part of any comprehensive business plan you present to banks or any potential investors, whether on one page or over several. Conduct more than simply conducting an informal market survey when developing your plan – you will create better strategies and develop more excellent strategies for your organization by doing this!

Market research can give you a deeper understanding of your target audience and help create products they will enjoy using. Although market research may appear daunting at first, you can break it down into four simple steps that make the task manageable: You will first outline the current industry status as well as its direction moving forward: 

• Industry overview : You should identify how many potential customers there are and their demographic characteristics and needs.
• Competition: By understanding your competition, this exercise will assist you in understanding their strategies.

By understanding your competition, this exercise will assist you in understanding their strategies.

1. Define your Target Market

Your analysis should begin by clearly defining a target market that best matches your client profile. As part of your research process, identify various client types. 

In such an environment, market segmentation refers to grouping customers into similar subcategories for analysis – you could group similar customers into segments and then describe each subgroup’s attributes further down in this document. Once broad research has begun and been refined by applying the essential elements below;

• Market size – Your market size can be defined as the total potential customers for your service or product.
• Demographics – Here, describe who your typical customers are by age, income, gender, and educational level – this would be where you’d tell an ideal customer.
• Behaviors – Understanding your customers and their reactions is paramount for a successful analysis of competition. Learn what motivates and discourages your customer base to help craft better strategies that satisfy both.
• Trends – Consumer behavior evolves continuously. Please share any trends that have emerged within your market.

2. Focus on Target Customers

Asses your customers’ needs, interests, demographics, and political viewpoints, as well as personality traits, buying habits, and purchasing patterns to better target advertising for these specific customers. 

By analyzing market data, you can also create personas that reflect these customers. (e.g. age/ income/ gender/ location, occupation level/ education & marital status etc.). Trends in buying behavior and habits. As your business expands and changes its customer base, its target market may shift over time. 

When opening their first clothing store, they might initially target young women aged between 18 and 30; as they expand, they might target those same female customers again, as well as develop product lines.

3. Industry Overview

Your next task should be to outline the industry you work in and its trajectory, providing critical metrics such as size, trends, and growth projections for analysis. Market research offers different insights to industry analysis. Researching your industry means looking at businesses identical to yours, unlike market research, which examines clients and customers. Investors will see your research demonstrate an in-depth knowledge of your competitors as they compete within an environment where investors want you to succeed. 

Also important in understanding future demand and competitiveness for any given industry are trends in demand and dining out trends if opening a restaurant – for instance, mobile phone retailers will want to know whether demand for their devices is increasing or decreasing.

Similarly, those working within dining out must understand dining trends such as whether more people are dining out over time; market shrinkage due to consumers using grocery delivery services is another aspect that needs addressing if opening one up is profitable enough for you to survive long term or growing fast enough for it did not become unprofitable or stagnant over time?

4. Study the Competition

List your competitors and identify their strengths and weaknesses to establish whether or not they pose a threat to your business, then learn their needs that you could fulfill. To gain customers’ interest and keep them coming back for more, your products and services must focus on customers’ products and needs, researching those offered by competitors as well as any advantages or disadvantages they might bring to market.  Landscape businesses may find that competitors use non-green energy machines. By purchasing battery-operated equipment instead, these businesses can position themselves as more eco-friendly options for customers. Use tools or conduct your research for competitors’ analysis. Compare free products against paid ones to select the ideal solution for you. 

They often share similar features like website traffic analysis or performance tracking and listing all competitors. SWOT Analysis: Analyze each competitor on your list to ascertain its strengths and weaknesses. 

Find out what services or offerings they are unable to replicate; identify why someone may choose one business over yours; consider any threats they pose as well. You can then use that data in conducting market analyses utilizing that same information gathered.

5. Determine the Purpose of Your Study

Market research can serve many functions for businesses. Market researchers utilize market analysis as part of their strategies for solving issues and creating opportunities while mitigating risks. Past issues may minimize future ones if used effectively; past successes should inform what to do next. Before conducting your market analysis, decide whether it will serve internal or external needs. Internal needs include improving cash flow and business operations, while external ones could convince lenders of your need for funding. Analysis plays an essential part in any business plan. Conducting analysis and researching it thoroughly demonstrates your familiarity with your field as well as high growth for your company. Your type of analysis will dictate which research methods will be conducted. Consider, for instance, running an internal research study. You won’t need to collect as many data points as with external surveys; thus, it is crucial that before commencing with any study, one determines whether the survey will be internal or external before beginning it.

6. Put your Analysis to Work.

Now is the time to put your market analysis to use and put all that research and findings to good use within your own business. Consider ways you could implement anything you have discovered from research in other companies or improve upon marketing strategy effectiveness with what has already been implemented within your own. You could make data and research easier to digest by creating an easily understood document; this way, lenders will have no problems sharing findings easily as you keep all information for future analyses – you might even make an annual calendar as a handy reminder.

7. Recognize Market Gaps.

Studying how other brands perform can help you recognize market gaps and distinguish your services and products to stand out in your industry. Existing brands must still fill these gaps; for instance, online education courses might need more coverage on topics that learners want to know about; you could create one to meet this demand!

Here are some questions to help you identify market gaps: 

• Looking back at your industry research findings, what will external factors like social change and new laws mean for developing products and services? 
• Ask consumers, ‘What do you want or need that you currently can’t find?’ 
• How specifically do competitors’ products and services fall short? 
• Given your strengths and expertise, how can you create better products and services?

8. Identify Barriers to Entry

Analyzing how other brands perform can help you spot market gaps that differentiate your services and products to give them an edge in their field. Existing brands still need to fill market gaps; in online education, for instance, there may be topics learners want to cover that no existing courses cover yet; you could develop new courses specifically to fill this demand for learning about those subjects. Below are a few questions designed to help you pinpoint market gaps: 

• Which external forces, like social changes and new laws, might impact developing products and services based on your research?
• What are consumers’ wants and needs that cannot currently be fulfilled are also something worth keeping an eye out for.
• What products or services offered by competitors fall below those you offer, according to your expertise and strengths?
• How could these be improved through collaboration or the creation of superior offerings?
• And before launch, which legal requirements must I fulfill before my business venture can launch successfully?
• What political, economic, and social influences could impact customer behavior – such as their willingness to purchase your products?
• How much advertising budget has been set aside by competitors in order to gain customer loyalty?
• How will your products stand out as better options in terms of price, value, and ease of purchasing?

9. Create a Sales Forecast.

Forecasting future sales to make informed business decisions and secure financing from lenders or investors is known as forecasting sales; valid periods include three, six or one-year forecasting periods.

To Answer these questions to create a sales forecast:

• Whilst offering services or products? 
• Based on market and consumer characteristics, how many units will likely be sold every period?
•  How will each service or product be priced? 
• What are the costs involved with producing and advertising each product?

Market analysis is an integral element of business planning strategy and practice. This guide covers all the basics pertaining to market analysis, what it means, its implementation process and benefits, as well as techniques used. When including one in your plan won’t just help define goals but will also serve to shape them further along.

• Top Pr oject Management Statistics to Know in 2024
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Hello, I'm Sai. I'm a freelance writer and blogger. I write unique and researched-based content on Saas products, online marketing, and much more. I'm constantly experimenting with new methods and staying current with the latest Saas updates. I'm also the founder and editor at Bowl of Wellness, where I share my latest recipes and tips for living a healthy lifestyle. You can read more at Bowl of Wellness - https://bowlofwellness.com/

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How To Present Your Market Research Results And Reports In An Efficient Way

Table of Contents

1) What Is A Market Research Report?

2) Market Research Reports Examples

3) Why Do You Need Market Research Reports

4) How To Make A Market Research Report?

5) Types Of Market Research Reports

6) Challenges & Mistakes Market Research Reports

Market research analyses are the go-to solution for many professionals, and for good reason: they save time, offer fresh insights, and provide clarity on your business. In turn, market research reports will help you to refine and polish your strategy. Plus, a well-crafted report will give your work more credibility while adding weight to any marketing recommendations you offer a client or executive.

But, while this is the case, today’s business world still lacks a way to present market-based research results efficiently. The static, antiquated nature of PowerPoint makes it a bad choice for presenting research discoveries, yet it is still widely used to present results. 

Fortunately, things are moving in the right direction. There are online data visualization tools that make it easy and fast to build powerful market research dashboards. They come in handy to manage the outcomes, but also the most important aspect of any analysis: the presentation of said outcomes, without which it becomes hard to make accurate, sound decisions. 

Here, we consider the benefits of conducting research analyses while looking at how to write and present market research reports, exploring their value, and, ultimately, getting the very most from your research results by using professional market research software .

Let’s get started.

What Is a Market Research Report?

A market research report is an online reporting tool used to analyze the public perception or viability of a company, product, or service. These reports contain valuable and digestible information like customer survey responses and social, economic, and geographical insights.

On a typical market research results example, you can interact with valuable trends and gain insight into consumer behavior and visualizations that will empower you to conduct effective competitor analysis. Rather than adding streams of tenuous data to a static spreadsheet, a full market research report template brings the outcomes of market-driven research to life, giving users a data analysis tool to create actionable strategies from a range of consumer-driven insights.

With digital market analysis reports, you can make your business more intelligent more efficient, and, ultimately, meet the needs of your target audience head-on. This, in turn, will accelerate your commercial success significantly.

Your Chance: Want to test a market research reporting software? Explore our 14-day free trial & benefit from interactive research reports!

How To Present Your Results: 4 Essential Market Research Report Templates

When it comes to sharing rafts of invaluable information, research dashboards are invaluable.

Any market analysis report example worth its salt will allow everyone to get a firm grip on their results and discoveries on a single page with ease. These dynamic online dashboards also boast interactive features that empower the user to drill down deep into specific pockets of information while changing demographic parameters, including gender, age, and region, filtering the results swiftly to focus on the most relevant insights for the task at hand.

These four market research report examples are different but equally essential and cover key elements required for market survey report success. You can also modify each and use it as a client dashboard .

While there are numerous types of dashboards that you can choose from to adjust and optimize your results, we have selected the top 3 that will tell you more about the story behind them. Let’s take a closer look.

1. Market Research Report: Brand Analysis

Our first example shares the results of a brand study. To do so, a survey has been performed on a sample of 1333 people, information that we can see in detail on the left side of the board, summarizing the gender, age groups, and geolocation.

**click to enlarge**

At the dashboard's center, we can see the market-driven research discoveries concerning first brand awareness with and without help, as well as themes and celebrity suggestions, to know which image the audience associates with the brand.

Such dashboards are extremely convenient to share the most important information in a snapshot. Besides being interactive (but it cannot be seen on an image), it is even easier to filter the results according to certain criteria without producing dozens of PowerPoint slides. For instance, I could easily filter the report by choosing only the female answers, only the people aged between 25 and 34, or only the 25-34 males if that is my target audience.

Primary KPIs:

a) Unaided Brand Awareness

The first market research KPI in this most powerful report example comes in the form of unaided brand awareness. Presented in a logical line-style chart, this particular market study report sample KPI is invaluable, as it will give you a clear-cut insight into how people affiliate your brand within their niche.

As you can see from our example, based on a specific survey question, you can see how your brand stacks up against your competitors regarding awareness. Based on these outcomes, you can formulate strategies to help you stand out more in your sector and, ultimately, expand your audience.

b) Aided Brand Awareness

This market survey report sample KPI focuses on aided brand awareness. A visualization that offers a great deal of insight into which brands come to mind in certain niches or categories, here, you will find out which campaigns and messaging your target consumers are paying attention to and engaging with.

By gaining access to this level of insight, you can conduct effective competitor research and gain valuable inspiration for your products, promotional campaigns, and marketing messages.

c) Brand image

When it comes to research reporting, understanding how others perceive your brand is one of the most golden pieces of information you could acquire. If you know how people feel about your brand image, you can take informed and very specific actions that will enhance the way people view and interact with your business.

By asking a focused question, this visual of KPIs will give you a definitive idea of whether respondents agree, disagree, or are undecided on particular descriptions or perceptions related to your brand image. If you’re looking to present yourself and your message in a certain way (reliable, charming, spirited, etc.), you can see how you stack up against the competition and find out if you need to tweak your imagery or tone of voice - invaluable information for any modern business.

d) Celebrity analysis

This indicator is a powerful part of our research KPI dashboard on top, as it will give you a direct insight into the celebrities, influencers, or public figures that your most valued consumers consider when thinking about (or interacting with) your brand.

Displayed in a digestible bar chart-style format, this useful metric will not only give you a solid idea of how your brand messaging is perceived by consumers (depending on the type of celebrity they associate with your brand) but also guide you on which celebrities or influencers you should contact.

By working with the right influencers in your niche, you will boost the impact and reach of your marketing campaigns significantly, improving your commercial awareness in the process. And this is the KPI that will make it happen.

2. Market Research Results On Customer Satisfaction

Here, we have some of the most important data a company should care about: their already-existing customers and their perception of their relationship with the brand. It is crucial when we know that it is five times more expensive to acquire a new consumer than to retain one.

This is why tracking metrics like the customer effort score or the net promoter score (how likely consumers are to recommend your products and services) is essential, especially over time. You need to improve these scores to have happy customers who will always have a much bigger impact on their friends and relatives than any of your amazing ad campaigns. Looking at other satisfaction indicators like the quality, pricing, and design, or the service they received is also a best practice: you want a global view of your performance regarding customer satisfaction metrics .

Such research results reports are a great tool for managers who do not have much time and hence need to use them effectively. Thanks to these dashboards, they can control data for long-running projects anytime.

Primary KPIs :

a) Net Promoter Score (NPS)

Another pivotal part of any informative research presentation is your NPS score, which will tell you how likely a customer is to recommend your brand to their peers.

Centered on overall customer satisfaction, your NPS Score can cover the functions and output of many departments, including marketing, sales, and customer service, but also serve as a building block for a call center dashboard . When you’re considering how to present your research effectively, this balanced KPI offers a masterclass. It’s logical, it has a cohesive color scheme, and it offers access to vital information at a swift glance. With an NPS Score, customers are split into three categories: promoters (those scoring your service 9 or 10), passives (those scoring your service 7 or 8), and detractors (those scoring your service 0 to 6). The aim of the game is to gain more promoters. By gaining an accurate snapshot of your NPS Score, you can create intelligent strategies that will boost your results over time.

b) Customer Satisfaction Score (CSAT)

The next in our examples of market research reports KPIs comes in the form of the CSAT. The vast majority of consumers that have a bad experience will not return. Honing in on your CSAT is essential if you want to keep your audience happy and encourage long-term consumer loyalty.

This magnificent, full report KPI will show how satisfied customers are with specific elements of your products or services. Getting to grips with these scores will allow you to pinpoint very specific issues while capitalizing on your existing strengths. As a result, you can take measures to improve your CSAT score while sharing positive testimonials on your social media platforms and website to build trust.

c) Customer Effort Score (CES)

When it comes to presenting research findings, keeping track of your CES Score is essential. The CES Score KPI will give you instant access to information on how easy or difficult your audience can interact with or discover your company based on a simple scale of one to ten.

By getting a clear-cut gauge of how your customers find engagement with your brand, you can iron out any weaknesses in your user experience (UX) offerings while spotting any friction, bottlenecks, or misleading messaging. In doing so, you can boost your CES score, satisfy your audience, and boost your bottom line.

3. Market Research Results On Product Innovation

This final market-driven research example report focuses on the product itself and its innovation. It is a useful report for future product development and market potential, as well as pricing decisions.

Using the same sample of surveyed people as for the first market-focused analytical report , they answer questions about their potential usage and purchase of the said product. It is good primary feedback on how the market would receive the new product you would launch. Then comes the willingness to pay, which helps set a price range that will not be too cheap to be trusted nor too expensive for what it is. That will be the main information for your pricing strategy.

a) Usage Intention

The first of our product innovation KPI-based examples comes in the form of usage intention. When you’re considering how to write a market research report, including metrics centered on consumer intent is critical.

This simple yet effective visualization will allow you to understand not only how users see your product but also whether they prefer previous models or competitor versions . While you shouldn’t base all of your product-based research on this KPI, it is very valuable, and you should use it to your advantage frequently.

b) Purchase Intention

Another aspect to consider when looking at how to present market research data is your audience’s willingness or motivation to purchase your product. Offering percentage-based information, this effective KPI provides a wealth of at-a-glance information to help you make accurate forecasts centered on your product and service offerings.

Analyzing this information regularly will give you the confidence and direction to develop strategies that will steer you to a more prosperous future, meeting the ever-changing needs of your audience on an ongoing basis.

c) Willingness To Pay (WPS)

Our final market research example KPI is based on how willing customers are to pay for a particular service or product based on a specific set of parameters. This dynamic visualization, represented in an easy-to-follow pie chart, will allow you to realign the value of your product (USPs, functions, etc.) while setting price points that are most likely to result in conversions. This is a market research presentation template that every modern organization should use to its advantage.

4. Market Research Report On Customer Demographics 

This particular example of market research report, generated with a modern dashboard creator , is a powerful tool, as it displays a cohesive mix of key demographic information in one intuitive space.

By breaking down these deep pockets of consumer-centric information, you can gain the power to develop more impactful customer communications while personalizing every aspect of your target audience’s journey across every channel or touchpoint. As a result, you can transform theoretical insights into actionable strategies that will result in significant commercial growth. 

Every section of this responsive marketing research report works in unison to build a profile of your core audience in a way that will guide your company’s consumer-facing strategies with confidence. With in-depth visuals based on gender, education level, and tech adoption, you have everything you need to speak directly to your audience at your fingertips.

Let’s look at the key performance indicators (KPIs) of this invaluable market research report example in more detail.

a) Customer By Gender

This KPI is highly visual and offers a clear-cut representation of your company’s gender share over time. By gaining access to this vital information, you can deliver a more personalized experience to specific audience segments while ensuring your messaging is fair, engaging, and inclusive.

b) Customers by education level

The next market analysis report template is a KPI that provides a logical breakdown of your customers’ level of education. By using this as a demographic marker, you can refine your products to suit the needs of your audience while crafting your content in a way that truly resonates with different customer groups.

c) Customers by technology adoption

Particularly valuable if you’re a company that sells tech goods or services, this linear KPI will show you where your customers are in terms of technological know-how or usage. By getting to grips with this information over time, you can develop your products or services in a way that offers direct value to your consumers while making your launches or promotions as successful as possible.

d) Customer age groups

By understanding your customers’ age distribution in detail, you can gain a deep understanding of their preferences. And that’s exactly what this market research report sample KPI does. Presented in a bar chart format, this KPI will give you a full breakdown of your customers’ age ranges, allowing you to build detailed buyer personas and segment your audience effectively.

Why Do You Need Market Research Reports?

As the adage goes, “Look before you leap“ – which is exactly what a research report is here for. As the headlights of a car, they will show you the pitfalls and fast lanes on your road to success: likes and dislikes of a specific market segment in a certain geographical area, their expectations, and readiness. Among other things, a research report will let you:

• Get a holistic view of the market : learn more about the target market and understand the various factors involved in the buying decisions. A broader view of the market lets you benchmark other companies you do not focus on. This, in turn, will empower you to gather the industry data that counts most. This brings us to our next point.
• Curate industry information with momentum: Whether you’re looking to rebrand, improve on an existing service, or launch a new product, time is of the essence. By working with the best market research reports created with modern BI reporting tools , you can visualize your discoveries and data, formatting them in a way that not only unearths hidden insights but also tells a story - a narrative that will gain a deeper level of understanding into your niche or industry. The features and functionality of a market analysis report will help you grasp the information that is most valuable to your organization, pushing you ahead of the pack in the process.
• Validate internal research: Doing the internal analysis is one thing, but double-checking with a third party also greatly helps avoid getting blinded by your own data.
• Use actionable data and make informed decisions: Once you understand consumer behavior as well as the market, your competitors, and the issues that will affect the industry in the future, you are better armed to position your brand. Combining all of it with the quantitative data collected will allow you to more successful product development. To learn more about different methods, we suggest you read our guide on data analysis techniques .
• Strategic planning: When you want to map out big-picture organizational goals, launch a new product development, plan a geographic market expansion, or even a merger and acquisition – all of this strategic thinking needs solid foundations to fulfill the variety of challenges that come along.
• Consistency across the board: Collecting, presenting, and analyzing your results in a way that’s smarter, more interactive, and more cohesive will ensure your customer communications, marketing campaigns, user journey, and offerings meet your audience’s needs consistently across the board. The result? Faster growth, increased customer loyalty, and more profit.
• Better communication: The right market research analysis template (or templates) will empower everyone in the company with access to valuable information - the kind that is relevant and comprehensible. When everyone is moving to the beat of the same drum, they will collaborate more effectively and, ultimately, push the venture forward thanks to powerful online data analysis techniques.
• Centralization: Building on the last point, using a powerful market research report template in the form of a business intelligence dashboard will make presenting your findings to external stakeholders and clients far more effective, as you can showcase a wealth of metrics, information, insights, and invaluable feedback from one centralized, highly visual interactive screen. 
• Brand reputation: In the digital age, brand reputation is everything. By making vital improvements in all of the key areas above, you will meet your customers’ needs head-on with consistency while finding innovative ways to stand out from your competitors. These are the key ingredients of long-term success.

How To Present Market Research Analysis Results?

Here we look at how you should present your research reports, considering the steps it takes to connect with the outcomes you need to succeed:

• Collect your data 

As with any reporting process, you first and foremost need to collect the data you’ll use to conduct your studies. Businesses conduct research studies to analyze their brand awareness, identity, and influence in the market. For product development and pricing decisions, among many others. That said, there are many ways to collect information for a market research report. Among some of the most popular ones, we find: 

• Surveys: Probably the most common way to collect research data, surveys can come in the form of open or closed questions that can be answered anonymously. They are the cheapest and fastest way to collect insights about your customers and business. 
• Interviews : These are face-to-face discussions that allow the researcher to analyze responses as well as the body language of the interviewees. This method is often used to define buyer personas by analyzing the subject's budget, job title, lifestyle, wants, and needs, among other things. 
• Focus groups : This method involves a group of people discussing a topic with a mediator. It is often used to evaluate a new product or new feature or to answer a specific question that the researcher might have. 
• Observation-based research : In this type of research, the researcher or business sits back and watches customers interact with the product without any instructions or help. It allows us to identify pain points as well as strong features. 
• Market segmentation : This study allows you to identify and analyze potential market segments to target. Businesses use it to expand into new markets and audiences. 

These are just a few of the many ways in which you can gather your information. The important point is to keep the research objective as straightforward as possible. Supporting yourself with professional BI solutions to clean, manage, and present your insights is probably the smartest choice.

2. Hone in on your research:

When looking at how to source consumer research in a presentation, you should focus on two areas: primary and secondary research. Primary research comes from your internal data, monitoring existing organizational practices, the effectiveness of sales, and the tools used for communication, for instance. Primary research also assesses market competition by evaluating the company plans of the competitors. Secondary research focuses on existing data collected by a third party, information used to perform benchmarking and market analysis. Such metrics help in deciding which market segments are the ones the company should focus its efforts on or where the brand is standing in the minds of consumers. Before you start the reporting process, you should set your goals, segmenting your research into primary and secondary segments to get to grips with the kind of information you need to work with to achieve effective results.

3. Segment your customers:

To give your market research efforts more context, you should segment your customers into different groups according to the preferences outlined in the survey or feedback results or by examining behavioral or demographic data.

If you segment your customers, you can tailor your market research and analysis reports to display only the information, charts, or graphics that will provide actionable insights into their wants, needs, or industry-based pain points. 

• Identify your stakeholders:

Once you’ve drilled down into your results and segmented your consumer groups, it’s important to consider the key stakeholders within the organization that will benefit from your information the most. 

By looking at both internal and external stakeholders, you will give your results a path to effective presentation, gaining the tools to understand which areas of feedback or data are most valuable, as well as most redundant. As a consequence, you will ensure your results are concise and meet the exact information needs of every stakeholder involved in the process.

• Set your KPIs:

First, remember that your reports should be concise and accurate - straight to the point without omitting any essential information. Work to ensure your insights are clean and organized, with participants grouped into relevant categories (demographics, profession, industry, education, etc.). Once you’ve organized your research, set your goals, and cleaned your data, you should set your KPIs to ensure your report is populated with the right visualizations to get the job done. Explore our full library of interactive KPI examples for inspiration.

• Include competitor’s analysis 

Whether you are doing product innovation research, customer demographics, pricing, or any other, including some level of insights about competitors in your reports is always recommended as it can help your business or client better understand where they stand in the market. That being said, competitor analysis is not as easy as picking a list of companies in the same industry and listing them. Your main competitor can be just a company's division in an entirely different industry. For example, Apple Music competes with Spotify even though Apple is a technology company. Therefore, it is important to carefully analyze competitors from a general but detailed level. 

Providing this kind of information in your reports can also help you find areas that competitors are not exploiting or that are weaker and use them to your advantage to become a market leader. 

• Produce your summary:

To complement your previous efforts, writing an executive summary of one or two pages that will explain the general idea of the report is advisable. Then come the usual body parts:

• An introduction providing background information, target audience, and objectives;
• The qualitative research describes the participants in the research and why they are relevant to the business;
• The survey research outlines the questions asked and answered;
• A summary of the insights and metrics used to draw the conclusions, the research methods chosen, and why;
• A presentation of the findings based on your research and an in-depth explanation of these conclusions.
• Use a mix of visualizations:

When presenting your results and discoveries, you should aim to use a balanced mix of text, graphs, charts, and interactive visualizations.

Using your summary as a guide, you should decide which type of visualization will present each specific piece of market research data most effectively (often, the easier to understand and more accessible, the better).

Doing so will allow you to create a story that will put your research information into a living, breathing context, providing a level of insight you need to transform industry, competitor, or consumer info or feedback into actionable strategies and initiatives.

• Be careful not to mislead 

Expanding on the point above, using a mix of visuals can prove highly valuable in presenting your results in an engaging and understandable way. That being said, when not used correctly, graphs and charts can also become misleading. This is a popular practice in the media, news, and politics, where designers tweak the visuals to manipulate the masses into believing a certain conclusion. This is a very unethical practice that can also happen by mistake when you don’t pick the right chart or are not using it in the correct way. Therefore, it is important to outline the message you are trying to convey and pick the chart type that will best suit those needs. 

Additionally, you should also be careful with the data you choose to display, as it can also become misleading. This can happen if you, for example, cherry-pick data, which means only showing insights that prove a conclusion instead of the bigger picture. Or confusing correlation with causation, which means assuming that because two events happened simultaneously, one caused the other. 

Being aware of these practices is of utmost importance as objectivity is crucial when it comes to dealing with data analytics, especially if you are presenting results to clients. Our guides on misleading statistics and misleading data visualizations can help you learn more about this important topic. 

• Use professional dashboards:

To optimize your market research discoveries, you must work with a dynamic business dashboard . Not only are modern dashboards presentable and customizable, but they will offer you past, predictive, and real-time insights that are accurate, interactive, and yield long-lasting results.

All market research reports companies or businesses gathering industry or consumer-based information will benefit from professional dashboards, as they offer a highly powerful means of presenting your data in a way everyone can understand. And when that happens, everyone wins.

Did you know? The interactive nature of modern dashboards like datapine also offers the ability to quickly filter specific pockets of information with ease, offering swift access to invaluable insights.

• Prioritize interactivity 

The times when reports were static are long gone. Today, to extract the maximum value out of your research data, you need to be able to explore the information and answer any critical questions that arise during the presentation of results. To do so, modern reporting tools provide multiple interactivity features to help you bring your research results to life. 

For instance, a drill-down filter lets you go into lower levels of hierarchical data without generating another graph. For example, imagine you surveyed customers from 10 different countries. In your report, you have a chart displaying the number of customers by country, but you want to analyze a specific country in detail. A drill down filter would enable you to click on a specific country and display data by city on that same chart. Even better, a global filter would allow you to filter the entire report to show only results for that specific country. 

Through the use of interactive filters, such as the one we just mentioned, you’ll not only make the presentation of results more efficient and profound, but you’ll also avoid generating pages-long reports to display static results. All your information will be displayed in a single interactive page that can be filtered and explored upon need.  

• Customize the reports 

This is a tip that is valuable for any kind of research report, especially when it comes to agencies that are reporting to external clients. Customizing the report to match your client’s colors, logo, font, and overall branding will help them grasp the data better, thanks to a familiar environment. This is an invaluable tip as often your audience will not feel comfortable dealing with data and might find it hard to understand or intimidating. Therefore, providing a familiar look that is also interactive and easier to understand will keep them engaged and collaborative throughout the process. 

Plus, customizing the overall appearance of the report will also make your agency look more professional, adding extra value to your service. 

• Know your design essentials 

When you’re presenting your market research reports sample to internal or external stakeholders, having a firm grasp on fundamental design principles will make your metrics and insights far more persuasive and compelling.

By arranging your metrics in a balanced and logical format, you can guide users toward key pockets of information exactly when needed. In turn, this will improve decision-making and navigation, making your reports as impactful as possible.

For essential tips, read our 23 dashboard design principles & best practices to enhance your analytics process.

• Think of security and privacy 

Cyberattacks are increasing at a concerning pace, making security a huge priority for organizations of all sizes today. The costs of having your sensitive information leaked are not only financial but also reputational, as customers might not trust you again if their data ends up in the wrong hands. Given that market research analysis is often performed by agencies that handle data from clients, security and privacy should be a top priority.  

To ensure the required security and privacy, it is necessary to invest in the right tools to present your research results. For instance, tools such as datapine offer enterprise-level security protocols that ensure your information is encrypted and protected at all times. Plus, the tool also offers additional security features, such as being able to share your reports through a password-protected URL or to set viewer rights to ensure only the right people can access and manipulate the data. 

• Keep on improving & evolving

Each time you gather or gain new marketing research reports or market research analysis report intel, you should aim to refine your existing dashboards to reflect the ever-changing landscape around you.

If you update your reports and dashboards according to the new research you conduct and new insights you connect with, you will squeeze maximum value from your metrics, enjoying consistent development in the process.

Types of Market Research Reports: Primary & Secondary Research

With so many market research examples and such little time, knowing how to best present your insights under pressure can prove tricky.

To squeeze every last drop of value from your market research efforts and empower everyone with access to the right information, you should arrange your information into two main groups: primary research and secondary research.

A. Primary research

Primary research is based on acquiring direct or first-hand information related to your industry or sector and the customers linked to it.

Exploratory primary research is an initial form of information collection where your team might set out to identify potential issues, opportunities, and pain points related to your business or industry. This type of research is usually carried out in the form of general surveys or open-ended consumer Q&As, which nowadays are often performed online rather than offline . 

Specific primary research is definitive, with information gathered based on the issues, information, opportunities, or pain points your business has already uncovered. When doing this kind of research, you can drill down into a specific segment of your customers and seek answers to the opportunities, issues, or pain points in question.

When you’re conducting primary research to feed into your market research reporting efforts, it’s important to find reliable information sources. The most effective primary research sources include:

• Consumer-based statistical data
• Social media content
• Polls and Q&A
• Trend-based insights
• Competitor research
• First-hand interviews

B. Secondary research

Secondary research refers to every strand of relevant data or public records you have to gain a deeper insight into your market and target consumers. These sources include trend reports, market stats, industry-centric content, and sales insights you have at your disposal.  Secondary research is an effective way of gathering valuable intelligence about your competitors. 

You can gather very precise, insightful secondary market research insights from:

• Public records and resources like Census data, governmental reports, or labor stats
• Commercial resources like Gartner, Statista, or Forrester
• Articles, documentaries, and interview transcripts

Another essential branch of both primary and secondary research is internal intelligence. When it comes to efficient market research reporting examples that will benefit your organization, looking inward is a powerful move. 

Existing sales, demographic, or marketing performance insights will lead you to valuable conclusions. Curating internal information will ensure your market research discoveries are well-rounded while helping you connect with the information that will ultimately give you a panoramic view of your target market. 

By understanding both types of research and how they can offer value to your business, you can carefully choose the right informational sources, gather a wide range of intelligence related to your specific niche, and, ultimately, choose the right market research report sample for your specific needs.

If you tailor your market research report format to the type of research you conduct, you will present your visualizations in a way that provides the right people with the right insights, rather than throwing bundles of facts and figures on the wall, hoping that some of them stick.

Taking ample time to explore a range of primary and secondary sources will give your discoveries genuine context. By doing so, you will have a wealth of actionable consumer and competitor insights at your disposal at every stage of your organization’s development (a priceless weapon in an increasingly competitive digital age). 

Dynamic market research is the cornerstone of business development, and a dashboard builder is the vessel that brings these all-important insights to life. Once you get into that mindset, you will ensure that your research results always deliver maximum value.

Common Challenges & Mistakes Of Market Research Reporting & Analysis

We’ve explored different types of market research analysis examples and considered how to conduct effective research. Now, it’s time to look at the key mistakes of market research reporting.  Let’s start with the mistakes.

The mistakes

One of the biggest mistakes that stunt the success of a company’s market research efforts is strategy. Without taking the time to gather an adequate mix of insights from various sources and define your key aims or goals, your processes will become disjointed. You will also suffer from a severe lack of organizational vision.

For your market research-centric strategy to work, everyone within the company must be on the same page. Your core aims and objectives must align throughout the business, and everyone must be clear on their specific role. If you try to craft a collaborative strategy and decide on your informational sources from the very start of your journey, your strategy will deliver true growth and intelligence.

• Measurement

Another classic market research mistake is measurement – or, more accurately, a lack of precise measurement. When embarking on market intelligence gathering processes, many companies fail to select the right KPIs and set the correct benchmarks for the task at hand. Without clearly defined goals, many organizations end up with a market analysis report format that offers little or no value in terms of decision-making or market insights.

To drive growth with your market research efforts, you must set clearly defined KPIs that align with your specific goals, aims, and desired outcomes.

• Competition

A common mistake among many new or scaling companies is failing to explore and examine the competition. This will leave you with gaping informational blindspots. To truly benefit from market research, you must gather valuable nuggets of information from every key source available. Rather than solely looking at your consumers and the wider market (which is incredibly important), you should take the time to see what approach your direct competitors have adopted while getting to grips with the content and communications.

One of the most effective ways of doing so (and avoiding such a monumental market research mistake) is by signing up for your competitors’ mailing lists, downloading their apps, and examining their social media content. This will give you inspiration for your own efforts while allowing you to exploit any gaps in the market that your competitors are failing to fill.

The challenges

• Informational quality

We may have an almost infinite wealth of informational insights at our fingertips, but when it comes to market research, knowing which information to trust can prove an uphill struggle.

When working with metrics, many companies risk connecting with inaccurate insights or leading to a fruitless informational rabbit hole, wasting valuable time and resources in the process. To avoid such a mishap, working with a trusted modern market research and analysis sample is the only way forward.

• Senior buy-in

Another pressing market research challenge that stunts organizational growth is the simple case of senior buy-in. While almost every senior decision-maker knows that market research is an essential component of a successful commercial strategy, many are reluctant to invest an ample amount of time or money in the pursuit.

The best way to overcome such a challenge is by building a case that defines exactly how your market research strategies will offer a healthy ROI to every key aspect of the organization, from marketing and sales to customer experience (CX) and beyond.

• Response rates

Low interview, focus group, or poll response rates can have a serious impact on the success and value of your market research strategy. Even with adequate senior buy-in, you can’t always guarantee that you will get enough responses from early-round interviews or poll requests. If you don’t, your market research discoveries run the risk of being shallow or offering little in the way of actionable insight.

To overcome this common challenge, you can improve the incentive you offer your market research prospects while networking across various platforms to discover new contact opportunities. Changing the tone of voice of your ads or emails will also help boost your consumer or client response rates.

Bringing Your Reports a Step Further

Even if it is still widespread for market-style research results presentation, using PowerPoint at this stage is a hassle and presents many downsides and complications. When busy managers or short-on-time top executives grab a report, they want a quick overview that gives them an idea of the results and the big picture that addresses the objectives: they need a dashboard. This can be applied to all areas of a business that need fast and interactive data visualizations to support their decision-making.

We all know that a picture conveys more information than simple text or figures, so managing to bring it all together on an actionable dashboard will convey your message more efficiently. Besides, market research dashboards have the incredible advantage of always being up-to-date since they work with real-time insights: the synchronization/updating nightmare of dozens of PowerPoint slides doesn’t exist for you anymore. This is particularly helpful for tracking studies performed over time that recurrently need their data to be updated with more recent ones.

In today’s fast-paced business environment, companies must identify and grab new opportunities as they arise while staying away from threats and adapting quickly. In order to always be a step further and make the right decisions, it is critical to perform market research studies to get the information needed and make important decisions with confidence.

We’ve asked the question, “What is a market research report?”, and examined the dynamics of a modern market research report example, and one thing’s for sure: a visual market research report is the best way to understand your customer and thus increase their satisfaction by meeting their expectations head-on. 

From looking at a sample of a market research report, it’s also clear that modern dashboards help you see what is influencing your business with clarity, understand where your brand is situated in the market, and gauge the temperature of your niche or industry before a product or service launch. Once all the studies are done, you must present them efficiently to ensure everyone in the business can make the right decisions that result in real progress. Market research reports are your key allies in the matter.

To start presenting your results with efficient, interactive, dynamic research reports and win on tomorrow’s commercial battlefield, try our dashboard reporting software and test every feature with our 14-day free trial !

A comprehensive guide to qualitative market research

Last updated

3 April 2024

Reviewed by

Grow your business

Understand the needs of your customers

Launch a new product

Expand into new markets

Meet any lofty goals you set for your business

The two research methods you can use to glean these insights are quantitative and qualitative. 

Quantitative research provides you with hard data you can use to find the size and scale of customer sentiment, discover causal relationships between variables, and support generalizations about macro-level populations.

Qualitative market research is an open-ended research method that looks at the reasons and motivations behind customer behavior, at the micro level. Qualitative market research gives you actionable insights you can use to improve everything from your customer service strategies to your products and services.

Market analysis template

Save time, highlight crucial insights, and drive strategic decision-making

• What is qualitative market research?

Qualitative market research is an open-ended research method that studies people's behavior and motivations within a specific market. While quantitative research is about hard numbers and analytics, qualitative market research takes a more generalized approach. It focuses on small sample sizes to encourage in-depth analysis of individual customers’ experiences.

The conversational nature of qualitative research is designed to encourage in-depth discussion. For businesses, qualitative market research is a powerful way to understand customers' points of view, as well as their pain points and desires.

• Why is it important to do qualitative market research?

Whether you are a CEO or a project manager, the thoughts and feelings of your customers should matter deeply to you. Through qualitative market research, you can identify the needs of your customers in a more nuanced, in-depth way than is possible with quantitative research. 

Depending on the questions you pose, you can also get a feel for how customers perceive your marketing messages and communications, as well as more broad perceptions of your company as a whole.

If you're planning on launching a new product or service, qualitative market research can help you refine the launch and even make improvements. By using the feedback and insights from your research to make changes leading up to the launch, you are more likely to increase your revenue and receive glowing reviews.

• Advantages of qualitative market research

There are many advantages to qualitative market research. It's flexible, so you can adapt to the quality of information you receive. For example, if the available information isn't providing what you hoped, it's easy to change direction and collect more data using new questions.

Qualitative market research also helps you gather more detailed information than most quantitative data. While quantitative market research gives you metrics, qualitative market research allows you to better understand the subtleties within the data.

Long-term, qualitative market research can reduce customer churn. By conducting regular qualitative market research, businesses can better understand what consumers want (and what they don’t) and learn whether they are fulfilling their needs. This reduces customer churn and helps build a stronger relationship between a business and the people it serves.

• Disadvantages of qualitative market research

The most notable disadvantage of market research is that it’s time-consuming. Depending on the scope of the research and the amount of people dedicated to the project, it can take weeks or even months to complete. If you're working on a tight timeline, or if you have limited resources to dedicate to research, it might not be feasible.

Qualitative market research can also be expensive. While much of the cost will depend on the size and scope of the project, you might also need to hire additional people to help you complete the research.

If you compensate participants for their time (and experts advise some sort of compensation), that's another expense to consider.

Finally, qualitative market research is highly subjective, as the conclusions are drawn by individual researchers and their interpretation and analysis.

• Eight qualitative market research methods

The most common methods for qualitative market research include focus groups, individual interviews, and observations. However, many other methods should be considered as viable options for your market research.

Social media analysis

Social media has become an important part of many people's lives, with millions of people around the world interacting with their favorite platforms on a daily, even hourly, basis. Social media analysis can, therefore, be a powerful way to gather and analyze information.

If your brand is active on social media, take the opportunity to solicit responses from customers who follow you. This can be via a survey feedback form or some sort of direct response from customers.

You can also perform content analysis on social media, scanning comments left by consumers on your posts and checking for frequently used words.

For the most in-depth responses, consider gathering insights directly from the people who follow your pages and regularly interact with you.

Lifestyle immersion

If customer comfort is one of your top priorities as you conduct market research, lifestyle immersion might be the best option.

Lifestyle immersion is a research method that allows the researcher to observe the customer in their natural environment. By observing the participant in a natural setting, you can see their unguarded behavior and learn more about their needs and motives.

Focus groups

Focus groups are a popular method for conducting qualitative market research. Focus groups are typically comprised of 6–10 people, along with a market researcher who functions as a moderator.

During the focus group, participants are encouraged to share their unguarded thoughts and opinions on a product, service, or marketing campaign.

Traditionally, focus groups were held in person, since verbal and non-verbal reactions are an important part of measuring responses. However, web-based focus groups have been gaining popularity in recent years, especially in light of the COVID-19 pandemic. Online focus groups tend to be more cost-effective and convenient for most participants.

Observations

Observations, also known as shop-alongs, involve researchers following participants as they walk through a store. The goal of observations in qualitative market research is to gauge customers’ interactions and reactions to things they encounter, including products, displays, and advertising.

Observations don't require the market researcher to physically accompany participants. Typically, the researcher will observe from a distance or watch a camera feed.

Individual interviews

Individual interviews are a highly personalized method of conducting market research. These interviews are in person, over the phone, or through video-conferencing software.

They tend to be most successful when held as part of a free-flowing conversation that puts the participant at ease and makes them feel comfortable sharing their unfiltered thoughts and opinions. The interviews can be structured or unstructured, depending on the nature of the questions and your overall goals for the project.

Include plenty of open-ended questions in your interview outline to keep the conversation moving. Pay attention throughout the interview to see how the participant responds to the questions and if they seem uncomfortable or ill at ease. If they do, switch gears to make the conversation more relaxed again.

Diary or journal-logging

A diary study, also known as journal-logging, is a research method that aims to collect data about user behaviors, activities, and experiences over a set period.

During the designated reporting period, participants are asked to keep a diary and record specific information about the activities you want to analyze. The data is self-reported by participants when the reporting period is up.

Diary studies can be useful for gathering information about users’ habits and thought patterns. They can also effectively capture attitudes and motivations. However, it can be challenging to recruit dedicated users, since diary studies require greater involvement over a longer period than more traditional market research methods.

Surveys are a popular method of conducting market research. A powerful form of primary research, surveys are endlessly customizable. They can be done:

Over the phone

Via email or other online delivery method

If you opt for an online survey, test the software ahead of time, so you can be sure everything works properly and displays well on mobile devices.

It's also a good idea to run a test survey with a smaller group. This allows you to refine your questions and eliminate any confusing wording.

Ethnographic research

Ethnographic research involves observing participants in their natural environment, primarily how they go about mundane tasks such as cleaning their house or preparing a meal. Unlike observations, ethnography can involve a variety of approaches, including diary studies and video recordings.

The goal of ethnographic research is to understand the social dynamics, beliefs, and behaviors of participants through direct observation and participation in their daily activities. Ethnographic research can take place over an extended period, from a few weeks to a year or more. It's versatile and is best done with the assistance of an experienced ethnographic researcher.

• An example of qualitative market research

One of the main benefits of qualitative market research is its flexibility. No matter what your goal is or what outcome you're hoping for, you can design an effective study.

One example of qualitative market research using a focus group is a cereal company wishing to update the packaging of one of its most popular products. After producing several design concepts, the company opts to commission a series of focus groups to gauge responses to each concept.

During the focus groups, with the help of a moderator, participants discuss each design, evaluating the pros and cons. Based on the feedback received in the focus groups, the cereal company can move forward with the design most appealing to their customers.

• Best practices for qualitative market research

While qualitative research is flexible, there are still best practices to follow. Regardless of which research method you choose, consider these tips when crafting your approach and designing the questions.

Accurately identify research goals

Before embarking on any market research, you should know your end goal. Think about the specific questions you want answered, including the nature of the product or service you wish to refine or develop. Outline your goals and share them with every project stakeholder, including managers and the CEO, if necessary.

Understand your customers

Knowing your customers is vital for accurately targeting survey participants. Your business should have a customer profile that includes basic demographics such as:

Shopping habits

Use this profile to create questions that are useful for your study. When crafted thoughtfully, your questions will identify needs that aren't being met and meet study participants where they are.

Choose the most appropriate research method

There are many ways to conduct qualitative market research, but not all of them might be right for your unique needs. Think about what method will give you the optimal results and work best for the study participants you wish to recruit.

Focus groups are an ever-popular research method, but it isn't always possible to dedicate time and energy to moderating one. A survey or series of observations might be more effective, depending on your available resources and goals.

Use open-ended questions

The goal of qualitative market research is to gain thoughtful responses from participants. Use open-ended questions that require more than a simple yes or no response. The idea is to maintain an open dialogue, even through vehicles such as surveys or focus groups.

Test out questions on yourself and your team members before launching them to participants, so you can be sure they make sense and give people the chance to truly share their thoughts.

• Tips for qualitative data analysis

Qualitative data analysis is rarely a linear process. Since qualitative market research often doesn't result in hard numbers, be flexible in your approach to analysis.

After you finish your research, organize and collate your responses into one location for further analysis. If you have audio or video files, allocate time to transcribe the data, whether that means bringing in a transcriptionist or guiding your team members through the process.

As you go through the responses, become familiar with the data. This will help you better understand your customers and identify any potential gaps in the research. Always involve other stakeholders in the process, not only along the way but also once the final results have been collated. This promotes transparency in the project and improves communication across the board.

Are customer surveys qualitative?

Customer surveys are one method of market research. They can be made qualitative or quantitative, depending on the nature of the questions. They are one of the most popular forms of qualitative market research because they are versatile and highly customizable. Surveys can be done in person or through web software, such as email.

What are qualitative marketing objectives examples?

While quantitative objectives are usually specific and measurable, qualitative marketing objectives are more subjective. They tend to be conceptually broad, such as "we want to learn more about how our customers rank our service compared to our competitors,” "we want to increase brand awareness," and "we want to improve customer satisfaction." It can be helpful to have qualitative and quantitative objectives for your market research, depending on the nature of the project and whether it's related to a specific product or service.

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• Data library

2024 Housing Market Forecast and Predictions: Housing Affordability Finally Begins to Turnaround

As we look ahead to 2024 , we see a mix of continuity and change in both the housing market and economy. Against a backdrop of modest economic growth, slightly higher unemployment, and easing inflation longer term interest rates including mortgage rates begin a slow retreat. The shift from climbing to falling mortgage rates improves housing affordability, but saps some of the urgency home shoppers had previously sensed. Less frenzied housing demand and plenty of rental home options keep home sales relatively stable at low levels in 2024, helping home prices to adjust slightly lower even as the number of for-sale homes continues to dwindle. 

Realtor.com ® 2024 Forecast for Key Housing Indicators

Home Prices Dip, Improving Affordability

Home prices grew at a double-digit annual clip for the better part of two years spanning the second half of 2020 through 2022, a notable burst following a growing streak that spanned back to 2012. As mortgage rates climbed, home price growth flatlined, actually declining on an annual basis in early 2023 before an early-year dip in mortgage rates spurred enough buyer demand to reignite competition for still-limited inventory. Home prices began to climb again, and while they did not reach a new monthly peak, on average for the year we expect that the 2023 median home price will slightly exceed the 2022 annual median.

Nevertheless, even during the brief period when prices eased, using a mortgage to buy a home remained expensive. Since May 2022, purchasing the typical for-sale home listing at the prevailing rate for a 30-year fixed-rate mortgage with a 20% down payment meant forking over a quarter or more of the typical household paycheck. In fact, in October 2023, it required 39% of the typical household income and this share is expected to average 36.7% for the full calendar year in 2023. This figure has typically ranged around 21%, so it is well above historical average. We expect that the return to pricing in line with financing costs will begin in 2024, and home prices, mortgage rates, and income growth will each contribute to the improvement. Home prices are expected to ease slightly, dropping less than 2% for the year on average. Combined with lower mortgage rates and income growth this will improve the home purchase mortgage payment share relative to median income to an average 34.9% in 2024, with the share slipping under 30% by the end of the year.

Home Sales Barely Budge Above 2023’s Likely Record Low

After soaring during the pandemic, existing home sales were weighed down in the latter half of 2022 as mortgage rates took off, climbing from just over 3% at the start of the year to a peak of more than 7% in the fourth quarter. The reprieve in mortgage rates in early 2023, when they dipped to around 6%, brought some life to home sales, but the renewed climb of mortgage rates has again exerted significant pressure on home sales that is exacerbated by the fact that a greater than usual number of households bought homes over the past few years, and despite stories of pandemic purchase regret , for the most part, these homeowners continue to be happy in their homes. 

This is consistent with what visitors to Realtor.com report when asked why they are not planning to sell their homes. The number one reason homeowners aren’t trying to sell is that they just don’t need to; concern about losing an existing low-rate mortgage is the top financial concern cited. Our current projection is for 2023 home sales to tally just over 4 million, a dip of 19% over the 2022 5 million total. 

With many of the same forces at play heading into 2024, the housing chill will continue, with sales expected to remain essentially unchanged at just over 4 million. Although mortgage rates are expected to ease throughout the course of the year, the continuation of high costs will mean that existing homeowners will have a very high threshold for deciding to move, with many likely choosing to stay in place.  Moves of necessity–for job changes, family situation changes, and downsizing to a more affordable market–are likely to drive home sales in 2024. 

Shoppers Find Even Fewer Existing Homes For Sale

Even before the pandemic, housing inventory was on a long, slow downward trajectory. Insufficient building meant that the supply of houses did not keep up with household formation and left little slack in the housing market. Both homeowner and rental vacancy remain below historic averages . In contrast with the existing home market, which remains sluggish, builders have been catching up, with construction remaining near pre-pandemic highs for single-family and hitting record levels for multi-family . 

Despite this, the lack of excess capacity in housing has been painfully obvious in the for-sale home market. The number of existing homes on the market has dwindled. With home sales activity to continue at a relatively low pace, the number of unsold homes on the market is also expected to remain low.  Although mortgage rates are expected to begin to ease, they are expected to exceed 6.5% for the calendar year. This means that the lock-in effect, in which the gap between market mortgage rates and the mortgage rates existing homeowners enjoy on their outstanding mortgage, will remain a factor. Roughly two-thirds of outstanding mortgages have a rate under 4% and more than 90% have a rate less than 6%.

Rental Supply Outpaces Demand to Drive Mild Further Decline in Rents

After almost a full year of double-digit rent growth between mid-2021 and mid-2022, the rental market has finally cooled down, as evidenced by the year-over-year decline that started in May 2023 . In 2024, we expect the rental market will closely resemble the dynamics witnessed in 2023, as the tug of war between supply and demand results in a mild annual decline of -0.2% in the median asking rent.

New multi-family supply will continue to be a key element shaping the 2024 rental market.  In the third quarter of 2023, the annual pace of newly completed multi-family homes stood at 385,000 units. Although absorption rates remained elevated in the second quarter, especially at lower price points, the rental vacancy rate ticked up to 6.6% in the third quarter. This uptick in rental vacancy suggests the recent supply has outpaced demand, but context is important. After recent gains, the rental vacancy rate is on par with its level right before the onset of the pandemic in early 2020, still below its 7.2% average from the 2013 to 2019 period.  Looking ahead, the strong construction pipeline– which hit a record high for units under construction this summer –is expected to continue fueling rental supply growth in 2024 pushing rental vacancy back toward its long-run average. 

While the surge in new multi-family supply gives renters options, the sheer number of renters will minimize the potential price impact. The median asking rent in 2024 is expected to drop only slightly below its 2023 level. Renting is expected to continue to be a more budget friendly option than buying in the vast majority of markets, even though home prices and mortgage rates are both expected to dip, helping pull the purchase market down slightly from record unaffordability. 

Young adult renters who lack the benefit of historically high home equity to tap into for a home purchase will continue to find the housing market challenging. Specifically, as many Millennials age past first-time home buying age and more Gen Z approach these years, the current housing landscape is likely to keep these households in the rental market for a longer period as they work to save up more money for the growing down payment needed to buy a first home. This trend is expected to sustain robust demand for rental properties. Consequently, we anticipate that rental markets favored by young adults , a list which includes a mix of affordable areas and tech-heavy job markets in the South, Midwest, and West, will be rental markets to watch in 2024.

Key Wildcards:

• Wildcard 1: Mortgage Rates With both mortgage rates and home prices expected to turn the corner in 2024, record high unaffordability will become a thing of the past, though as noted above, the return to normal won’t be accomplished within the year. This prediction hinges on the expectation that inflation will continue to subside, enabling the recent declines in longer-term interest rates to continue. If inflation were to instead see a surprise resurgence, this aspect of the forecast would change, and home sales could slip lower instead of steadying.
• Wildcard 2: Geopolitics In our forecast for 2023 , we cited the risk of geopolitical instability on trade and energy costs as something to watch. In addition to Russia’s ongoing war in Ukraine, instability in the Middle East has not only had a catastrophic human toll, both conflicts have the potential to impact the economic outlook in ways that cannot be fully anticipated. 
• Wildcard 3: Domestic Politics: 2024 Elections In 2020, amid the upheaval of pandemic-era adaptations, many Americans were on the move. We noted that Realtor.com traffic patterns indicated that home shoppers in very traditionally ‘blue’ or Democratic areas were tending to look for homes in markets where voters have more typically voted ‘red’ or Republican. While consumers also reported preferring to live in locations where their political views align with the majority , few actually reported wanting to move for this reason alone. 

Housing Perspectives:

What will the market be like for homebuyers, especially first-time homebuyers.

First-time homebuyers will continue to face a challenging housing market in 2024, but there are some green shoots. The record-high share of income required to purchase the median priced home is expected to begin to decline as mortgage rates ease, home prices soften, and incomes grow. In 2023 we expect that for the year as a whole, the monthly cost of financing the typical for-sale home will average more than $2,240, a nearly 20% increase over the mortgage payment in 2022, and roughly double the typical payment for buyers in 2020. This amounted to a whopping nearly 37% of the typical household income. In 2024 as modest price declines take hold and mortgage rates dip, the typical purchase cost is expected to slip just under $2,200 which would amount to nearly 35% of income. While far higher than historically average, this is a significant first step in a buyer-friendly direction.

How can homebuyers prepare? 

Homebuyers can prepare for this year’s housing market by getting financially ready. Buyers can use a home affordability calculator , like this one at Realtor.com to translate their income and savings into a home price range. And shoppers can pressure test the results by using a mortgage calculator to consider different down payment, price, and loan scenarios to see how their monthly costs would be impacted. Working with a lender can help potential buyers explore different loan products such as FHA or VA loans that may offer lower mortgage interest rates or more flexible credit criteria. 

Although prices are anticipated to fall in 2024, housing costs remain high, and a down payment can be a big obstacle for buyers. Recent research shows that the typical down payment on a home reached a record high of $30,000 .  To make it easier to cobble together a down payment, shoppers can access information about down payment assistance options at Realtor.com/fairhousing and in the monthly payment section of home listing pages. Furthermore, home shoppers can explore loan products geared toward helping families access homeownership by enabling down payments as low as 3.5% in the case of FHA loans and 0% in the case of VA loans .

What will the market be like for home sellers?

Home sellers are likely to face more competition from builders than from other sellers in 2024. Because builders are continuing to maintain supply and increasingly adapting to market conditions, they are increasingly focused on lower-priced homes and willing to make price adjustments when needed. As a result, potential sellers will want to consider the landscape for new construction housing in their markets and any implications for pricing and marketing before listing their home for sale.

What will the market be like for renters?

In 2024, renting is expected to continue to be a more cost-effective option than buying in the short term even though we anticipate the advantage for renting to diminish as home prices and mortgage rates decline. 

However, for those considering the pursuit of long-term equity through homeownership, it’s essential to not only stay alert about market trends but also to carefully consider the intended duration of residence in their next home. When home prices rise rapidly, like they did during the pandemic, the higher cost of purchasing a home may break even with the cost of renting in as little as 3 years. Generally, it takes longer to reach the breakeven point, typically within a 5 to 7-year timeframe. Importantly, when home prices are falling and rents are also declining, as is expected to be the case in 2024, it can take longer to recoup some of the higher costs of buying a home. Individuals using Realtor.com’s Rent vs. Buy Calculator can thoroughly evaluate the costs and benefits associated with renting versus buying over time and how many years current market trends suggest it will take before buying is the better financial decision. This comprehensive tool can provide insights tailored to a household’s specific rent versus buying decision and empowers consumers to consider not only the optimal choice for the current month but also how the trade-offs evolve over several years.

Local Market Predictions:

All real estate is local and while the national trends are instructive, what matters most is what’s expected in your local market. 

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