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Written by Mary Kate Miller | June 1, 2021
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Market research is a cornerstone of all successful, strategic businesses. It can also be daunting for entrepreneurs looking to launch a startup or start a side hustle . What is market research, anyway? And how do you…do it?
We’ll walk you through absolutely everything you need to know about the market research process so that by the end of this guide, you’ll be an expert in market research too. And what’s more important: you’ll have actionable steps you can take to start collecting your own market research.
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.
Why do market research? It can help you…
Strong market research can help your business in many ways. It can…
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 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 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 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.
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:
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.”
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 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.
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 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.
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:
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:
Personal/Informative Questions: the deeper questions that help you understand how your audience thinks and what they care about.
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.
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 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 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.
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 .
Mary Kate Miller writes about small business, real estate, and finance. In addition to writing for Foundr, her work has been published by The Washington Post, Teen Vogue, Bustle, and more. She lives in Chicago.
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Market research will help you develop a successful marketing strategy. It is one of the reasons why market research is so important for organizations that want to make informed decisions. This article will highlight the relevance of market research and importance of market research.
For your products and services to be well-accepted by customers, you must know the choices and preferences of your target audience . Market research provides you with essential information about your competitors and existing products.
The results offer you insights into what it would take to succeed in the market. Hence, organizations base their business decisions on good market research, such as sales and marketing strategies.
LEARN ABOUT: Market research vs marketing research
Market research helps reduce risk by allowing you to determine product features, pricing, and promotions from the outset. It also helps you focus resources where they will be most effective.
LEARN ABOUT: Marketing Insight
This blog will discuss the importance of market research, its types, and how to plan it for your business.
Content Index
Types of market research, the importance of market research for your business, how to plan market research, how questionpro helps in market research.
Market research is a systematic process of gathering, evaluating, and interpreting data. It is the basis of any business that does well. The data could be about a target market, customers, competitors, or the industry as a whole. The research serves a variety of reasons, ranging from identifying a new market to launching a new business.
Market research assists entrepreneurs in making sound business decisions. It may remove the guesswork from innovation and direct resources to the most promising ideas and projects. Different companies conduct market research for different purposes.
Businesses use various types of market research to gather information about their target market, competitors, and market research industry trends . There are two main types of market research:
Quantitative research focuses on generating numbers, for example, what percentage of the population buys a specific product. It is conducted using surveys and questionnaires. You can do simple quantitative research yourself by talking to customers.
More detailed quantitative research can be used to identify markets and understand customer profiles while launching a new product.
Qualitative research relies on facts and figures to discover what people think and feel about products and what factors affect their purchasing decisions. Researchers use surveys and focus groups to gather this information while interpreting the results is a job that requires certain research skills .
To learn more about the differences and characteristics of these types of research, we recommend reading Qualitative vs. Quantitative Research .
LEARN ABOUT: Qualitative Interview
You can also conduct secondary research using existing surveys and business reports. Use free online information on market size, sales trends, customer profiles, and competitor activity.
Your customer records can give you a wealth of knowledge about purchasing patterns, the most popular services among various demographic groups, etc.
Market research can help you analyze key trends and predict how the market will change. Here are some of the reasons why market research is important for your business:
Market research can assist you in determining what new products or services the market requires and how you can provide them. Key issues with developing a specific product or service can be identified, allowing you to avoid costly development mistakes.
It also assists you in determining which factors are most important to customers and how to implement them into what you want to bring to market.
Demographic information such as gender, age, income, occupation, and lifestyle can help you better understand your customer base. If you know who your current customers are, you can target them in the future. Marketing to the wrong type of customer can lead to poor product performance.
If your company plans to launch a new product or service, you must first determine whether the market is ready for it. Will the product be well received? Is the product required by the customers you want to reach? Will it be workable, and what are the chances of success?
Comparative studies are excellent for tracking your competitors’ progress compared to your company’s.
If they are far ahead of you, this is an excellent opportunity for you to learn what they are doing differently than you. Business strategies can be developed to help you stay ahead of your competitors.
Knowledge can help reduce your company’s risks and determine which risks are worth taking based on past and future market trends.
Market research help in determining market viability , lowering the risk of failure. Understanding your customers’ needs is also important for risk reduction. At the end of the day, lowering risk helps to increase profitability.
Your customers are complex, and what they require previously may not be what they require now. To be successful, you must constantly monitor the pulse of your customer base. Market research can help you better understand your current customers.
The market research also helps to determine customer satisfaction levels. If you discover their low satisfaction levels, you can figure out why and fix it. If it is high, you can figure out why and learn how to keep it that way.
You can set realistic goals by using current data about your market and customer base. Establishing a growth pattern over time lets you know what to expect in the future and how to really develop that growth.
Setting attainable goals will save resources, succeed before you start, and miss out on better long-term goals for your company.
Effective market research starts with knowing what you are trying to accomplish and what information you need. You can do it yourself.
For example, if you are considering buying or renting a store, you can analyze traffic levels at different times. Or you can talk to your potential customers.
However, to make good business decisions , you will need a more comprehensive approach.
For example, if you conduct a market survey , you will need survey software to design a survey, customize the look and feel and generate reports. You might also want to integrate the tool with other CRM and marketing automation software.
Survey software can let you export results in standard formats or share the reports with others. You can also create online surveys in multiple languages and let your respondents select the language of their choice.
One of the most important aspects of planning market research is asking the right questions. Design the survey such that it collects meaningful and high-quality data.
If you want to know more about how to do this, we recommend our article: How to Write a Market Research Plan?
LEARN ABOUT: Test Market Demand
QuestionPro is a market research software platform that assists businesses in conducting various types of market research. It has market research tools to create, distribute, and analyze surveys and other research methods. QuestionPro can assist organizations with their market research in a variety of ways, including:
Surveys: QuestionPro has a full survey builder that lets organizations make their own surveys, add questions, and choose from a variety of question types, like multiple choice, open-ended, and rating scales.
Data collection: QuestionPro enables organizations to collect data via online surveys, email, web pop-ups, and mobile devices. It also provides a variety of data collection methods, including panel sampling, random sampling, and targeted sampling.
Data analysis: To assist organizations in gaining insights from their data, QuestionPro offers a variety of data analysis tools such as cross-tabulation, descriptive statistics, and inferential statistics .
Real-time data reporting: QuestionPro provides real-time data reporting, allowing organizations to monitor the progress of their research in real-time and make changes to their survey design as needed.
Integration with other tools: QuestionPro integrates with a variety of other tools, including Google Analytics, Salesforce, and Zapier, to provide organizations with a comprehensive view of their market research data.
QuestionPro offers businesses a comprehensive platform for conducting market research and gaining valuable insights into their target audience, competitors, and industry trends. It enables businesses to make informed decisions based on data-driven insights.
LEARN ABOUT: market research trends
Market research should be well-structured, concise, and provide useful insights to help the organization make informed decisions. It should also serve as a starting point for future research and assist organizations in identifying areas for improvement in their business strategies.
Market research is an important component that summarizes the research findings and insights. It gives you a clear picture of the market and its trends, consumer behavior, and the overall competitive landscape.
If you are interested in conducting online survey research, QuestionPro can help you. Request a demo and learn how our survey software works and the advantages of using it in your next market research. Get started today!
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We’ve spoken about what market research is, and how customer research is involved, but now we’re getting into the nitty gritty of why it’s important in the first place.
In this article, we’ll cover:
Market research uses data about your target market demographics to inform your marketing, campaigns, and other business strategies. Whilst many companies use market research, they don't understand just how vital such research is to the success of your business.
Market research provides the answers needed for orgs of any size about where to take the direction of their business, how to engage with their customers, and address pain points.
This type of research will help you decide which direction your business should take. It covers all areas that impact your chosen market and your place within it. This includes:
Understanding how your marketing, brand story , customer interaction, and competitor analysis impact how you present your business.
We’ve gone over a few of the benefits that market research comes with, but let's get more into detail about each of these points. The following are the best benefits of conducting such research.
When researching customers in your market, there’re three components that are important to look at:
With market research comes the benefit of understanding your audience and its place within it. Depending on your industry, there may be many areas in which your customer segments overlap with your competitors’. Still, there will always be something that keeps your existing customers loyal to your brand.
Understanding what distinguishes you from your competitors goes a long way to understanding why your customers have chosen you in the first place. Is it the features you offer, the price of your product, or the way you interact with your customers?
Market research will show you why your customers stay, and what key thing makes them choose you over the competition.
This research will also tell you about the pain points for your customers. Has a competitor got a specific feature attracting your target audience? Is there a particular usability issue that customers are struggling with?
Discovering and then accommodating or solving these points will go a long way to making your audience feel heard. Customers need to understand that your company values them, otherwise what’s stopping them from going to your competitor instead?
A way to drive this point home with your research is to conduct customer research within your market research strategy.
Once you have a good grasp on who makes up your existing customers and who makes up your overall target audience, it becomes easier to identify the customers you’re missing.
Knowing about your customer segments will help you to create an informed marketing strategy. A one-size-fits-all approach to marketing won’t work and has the potential to turn into a costly mistake.
It may be as simple as where you choose to advertise your product. If you only conduct a campaign on TikTok and Instagram, you could be missing a whole chunk of your audience by not expanding your reach.
At the same time, if you don’t create advertising campaigns that speak to your audience, it won't matter how many platforms you advertise on. The tone of voice and brand story you choose to present will have an impact on whether your customers are going to be attracted.
Setting realistic targets comes from an analysis of your current processes, your customer habits and pain points, and the current landscape of the market. Regular analysis can also offer you the opportunity to observe your company's growth through a wide variety of concepts.
Setting realistic KPIs or OKRs is vital to help motivate and bring direction to your work processes.
Look at not only your competitors but also the biggest names within that market who have come before you. Understanding how they got to where they are now will give you an idea of how they supported their growth with targets in a way that was manageable.
Market research will give you a good bird’s eye view of what your position is within that market landscape. Using this research can inform your decisions on which direction you want to take your team. It can show you:
Consumer behaviors and market trends are some of the most fast-moving and changeable parts of any market. Staying on top of these is not an easy task, but doing just that can help your business keep in touch with the market environment you’re working in.
Trends will impact a variety of facts which, in turn, will impact how you conduct your business. Things like:
Consider how seasonal trends, highest-hitting pages, trending keywords, and new players affect your business processes.
Customer research is a big part of market research, particularly for customer marketers. When done right, it can enhance every essential aspect of customer marketing.
Accurately marketing to your customers means knowing them from the inside and out, knowing their needs, pain points, and interests, and turning that into actionable steps to take your customer marketing to the next level.
Our Customer Research Certified course will take you through the fundamentals of conducting accurate and representative customer research, leaving no stone unturned.
Written by:
Eve is a Junior Copywriter at Customer Marketing Alliance. She has been writing for as long as she can remember and enjoys creating content that helps others with their career goals.
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Market research is the systematic process of gathering, analyzing and interpreting information about a specific market or industry.
What are your customers’ needs? How does your product compare to the competition? What are the emerging trends and opportunities in your industry? If these questions keep you up at night, it’s time to conduct market research.
Market research plays a pivotal role in your ability to stay competitive and relevant, helping you anticipate shifts in consumer behavior and industry dynamics. It involves gathering these insights using a wide range of techniques, from surveys and interviews to data analysis and observational studies.
In this guide, we’ll explore why market research is crucial, the various types of market research, the methods used in data collection, and how to effectively conduct market research to drive informed decision-making and success.
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.
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:
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.
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:
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.
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.
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.
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.
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.
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.
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.
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 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:
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:
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.
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
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.
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.
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.
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.
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.
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.
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:
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.
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.
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.
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.
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:
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.
Rebecca Strehlow, Copywriter at Crunchbase
Jaclyn Robinson, Senior Manager of Content Marketing at Crunchbase
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Learn the difference between market research and marketing research
Laura Lake is a marketing professional and author of "Consumer Behavior for Dummies."
When it comes to running a business, making assumptions about your customers, market, competitors, or systems can cause you to waste time, money , and effort.
To make effective decisions that will grow your business and use your resources wisely, you will need to put some of those resources toward conducting market and marketing research.
Market research involves identifying a specific "target," and focusing exclusively on that group. It is research into a narrow group of consumers to understand their behavior and motivation.
Marketing research has a broader scope that market research. It is used to examine the entire marketing process of a company, rather than only looking at the consumers that the company is targeting.
Successfully running and growing your business depends on understanding your target customers. Once you have a clear picture of their goals, needs, and values, you are more able to drive them towards purchasing your products or services.
Market research is one of the best tools you have for understanding your customers. It gives you hard data that you can use to drive your marketing strategy, making both marketing and selling easier and more effective.
Market research helps you:
Marketing research is important for evaluating what is and is not working in your business model. It includes research into your target market, as well as the systems in your business that make up your marketing conditions.
Marketing research looks at every aspect of the Four Ps of marketing: product, price, place, and promotion. This includes:
Marketing research helps you learn not just what your customers want, but how successful your business is at reaching and connecting with them. It helps you identify problems and opportunities, refine your systems, and evaluate your marketing strategy.
Though they look at different aspects of your business, both market research and marketing research should follow the same pattern of data collection and analysis.
No matter what type of research you are conducting, you will need to follow the full research method to arrive at a conclusion that will benefit your business. If your findings lead to a solution to your problem statement, you will be able to decide on the next steps for your business.
If you were unable to answer your research question, that doesn't mean your research was done incorrectly. You may discover that you need to ask different questions or that the situation was more complicated than you anticipated. When that happens, it's time to continue your research until you've arrived at a solution.
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The benefits of market research are long-proven. Yet still, there are many who focus on instinct instead of insight.
While intuition is all good and well, there’s no getting away from the power of cold-hard data.
In this post, I list 11 market research benefits, with real-world examples and six free research templates thrown in for good measure.
Why it matters: Effective communication is the cornerstone of good relations. And, with how much time, effort, and money it takes to win a new client, ensuring you stay in their good books isn’t just nice – it’s a necessity.
The first benefit of market research is the ability to learn about your customer’s likes and dislikes – so you can adapt how you position the business and its products accordingly. Tailored communications speak to customers in a way that resonates far better than generalized messages.
The one-size-fits-all approach no longer works. Delivering comms in the right format, at the right time, via the right platform can boost engagement and help focus on driving value. With it, customers feel appreciated and receive information that’s both useful and relevant.
These days, all it takes is a quick click, and customers can unsubscribe from communications. This is why businesses must ensure every communication counts.
Example: Market research surveys are an ideal way to quickly understand how customers feel about your communications with them. Be direct, and ask them about the content, frequency, and formats they prefer.
If you want to establish the best time or day of the week to email, you can use your email campaign tracking data to show you the best and worst times, based on open rates, and click-through rates.
Why it matters: Market research benefits all types and stages of business planning. It gives you the numbers and insights you need to make accurate forecasts. It can also impact key decisions that can help you develop and adapt your strategy.
Here are a few examples where market research can benefit data-driven decision-making :
Market research serves as a trusty compass, helping guide and steer decisions that impact growth and profitability. Once you implement a new tactic or campaign, you can again benefit from market research to measure and track ongoing success.
Why it matters: It’s no secret that a comprehensive understanding of one’s target audience is fundamental to an organization’s success. Everything from product development to positioning and marketing is impacted by the effective development of target personas.
While most companies have a decent understanding of what their ideal customer profile looks like; a distinct advantage of market research is the depth of detail it offers about the preferences, behaviors, and habits of a target audience – based on actual facts and everyday actions they take online.
By doing audience analysis and consumer journey tracking , organizations can discover insights about their ideal customers quickly and in finite detail. So instead of having a static persona that doesn’t really change with the times; marketers can discover things like:
Grab our customer persona template to use a framework for this research – it’s at the end of this post, along with 5 other useful market research templates !
Perhaps one of the biggest benefits of market research for a business is its ability to help organizations improve efficiency and reduce outlay – both from a time and cost perspective. While each business achieves different outcomes, doing proper research can help pave the way for process improvements.
A few examples include:
DocSend uses Similarweb to reduce marketing spend by 20% and reduced research time by 10% – as an added bonus it saw website traffic gains of around 10%.
Read more about how market research benefited DocSend here .
Why it matters: These days, the competition is fierce in almost every market. Customers have many options to choose from, and outpacing your rivals is a constant battle. From new product or service offerings to campaigns and content – not to mention promotions and partnerships; keeping a keen eye on your market positioning is key.
A core benefit of market research is knowing what other players in your market are doing. More to the point, market research actually shows you how well these offerings are doing.
A competitive analysis framework is a great way to systematically record and track what your rivals are doing. It can help you spot opportunities, such as:
Good market research can be the differential factor that gives you an edge in your market.
In this scenario, I want to analyze the competitive landscape of a social media management company. I chose Sprout Social to review as it’s considered a market leader.
In a snapshot, I can see an overview of its traffic and engagement. This includes the total visits, unique visitors , a link to its apps, and a breakdown of traffic by channel. With a quick compare, I see how these metrics stack up against others in the market. Later.com and influencermarketinghub.com are two players who consistently outperform sproutsocial.com – which means I can delve deeper into their successes, campaigns, and content next.
From the platform, I can see how many referrals they’re getting, and from where. Which ad networks and campaigns they’re running, and copies of the creatives being used.
Next, I look at the most popular pages on Sprout Social’s site. This shows several pages on the topic of small business social media are achieving significant growth – indicating my target audience is responding to these pages, so I should be covering or promoting content on a similar theme.
So, in less than a minute, I’ve discovered
Software like Similarweb makes it quick and easy to see the insights and metrics that matter most. Here, you can discover where you can get a competitive edge, and keep track of market trends and rival campaigns.
From email marketing to socials, affiliates, referrals, paid ads, and more; there are many marketing channels to leverage – and it’s not always obvious which is right for your business. Another key benefit of doing market research is the ability to hone in on the channels that deliver the best return on investment.
A trial-and-error approach can be costly. Not just from a dollar perspective, it can be a drain on your resources too. By first establishing the optimal marketing mix for your target audience or market, you can save time and money, and reach your goals faster.
Similarweb Digital Research Intelligence can show you which channels work best for your market and rivals. It also highlights the specific ad creatives and content being used for high-performing campaigns.
Here, you see a snapshot of the marketing channels being used across five competitive sites. It shows the biggest drivers of traffic are direct and organic search. By clicking on any single channel, you can get a complete breakdown of the respective details. I’ve clicked to expand social media, as just one example, here’s what it tells me.
As well as being able to instantly see the insights that count, I can click on any channel to see a detailed breakdown of performance. Next, I can compare each channel to see who is outperforming others – which tells me exactly who I need to take a closer look at.
The benefits of doing market research apply to those launching new products or entering new markets . However, periodic research can also help you spot growth-focused opportunities that may not have been considered before.
Another compelling entrant to include in the benefits of market research is its ability to unearth opportunities to grow. Whether that’s through finding new customers, markets, channels, or creative ways to go to market and get more eyes on your business. A good case in point is in the identification of new partnerships for referrals; something that often comes about when doing a competitive analysis .
The advantages of using market research for growth are ongoing, throughout the lifecycle of your business. For example:
Success story: See how AirBnB used Similarweb to uncover opportunities for growth in new markets.
Why it matters: With how quickly consumer behaviors change and markets shift, it’s important to move with the times. Market research can help businesses stay in touch with what’s happening – something that applies to consumers, competitors, and the industry as a whole.
From changes to purchasing behaviors, new technologies, new products, or service features; researching trends and staying close to rising players in your market allows you to keep tabs on what things are attracting attention.
While you can use digital research tools like Similarweb to quickly analyze a market, search trends, seasonal patterns, mobile app intelligence , and more – qualitative data, like surveys can be leveraged to understand customers and changing behaviors too.
Read more about how Wonderbly achieved its success here.
Why it matters: With the knowledge of where your business is performing well, or falling behind, you can set goals and direction more clearly. Benchmarking shows you industry standards, and maps out how rivals are doing; so you can measure relative performance.
For a business to grow, it needs to push the boundaries. The benefit of using market research here is that it shows you where and how big those boundaries are. A survey from PWC found businesses that set benchmarks achieve 45% more productivity and grow, on average 69 times faster than those that do not.
There are various types of benchmarking – each of which makes it possible to unpack and track the successes of those in your market and drill down into what success looks like for your business.
Why it matters: A further benefit of doing market research is that it can show you any relative strengths, weaknesses, opportunities, and threats that exist between competitors and in a market. Greater awareness of these facts helps drive the right actions and gives clarity on areas of focus for the business. Without it, your business is susceptible to preventable mistakes.
With company and market research , you find out where opportunities and threats exist in your ecosystem. From environmental or technological factors to internal considerations; forewarned is forearmed. What’s more, a regular review of your SWOT, informed by market research, allows you to capitalize on new opportunities faster than others and keeps you in the strongest position where gaining a competitive edge is concerned.
Helpful: Read our complete guide to doing an industry SWOT analysis .
Why it matters: These days, the importance of having an effective, relevant, and successful content marketing strategy cannot be overstated. According to a 2020 competitive intelligence survey , companies have, on average, 29 competitors. So, regardless of your sector, in the digital world, it’s constant competition – be it for better visibility online, a higher CTR, or increased engagement.
So, how does market research benefit a business? And how can you stand out and get found online? With content marketing, of course.
An advantage of using market research to inform your content marketing strategy is that data doesn’t lie. Yes, it’s an old one but a good one. A data-driven approach to content marketing is a surefire way to uncover the most searched keywords , the right topics, and content to harness to your advantage.
You can use market research to uncover the following:
Success story: See how Tourism New Zealand benefits from market research ; and how they use Similarweb to research content and keywords.
Regardless of whether it’s for an enterprise company or an entrepreneur – time, cost, and experience are viewed as the biggest limitations of market research. But this is an outdated perception that is no longer relevant or true to life.
Here’s how things are in 2022.
This guide to desk research shows you the best places to find secondary research data.
If you’re on a deadline, let’s say you need to do market research for a business plan , market research tools can help you get it done in a day.
Use market research templates to guide you through the key data points you need to collect.
Market research benefits any business, at any stage. From product teams to sales, customer support, marketing, operations, and management – there’s a relevant application in almost every department. However, many organizations choose only to use it for limited periods in limited areas of their business.
Similarweb Research Intelligence makes key insights accessible to all. And with the ability to impact an entire business, at almost every level, it’s a market research tool with the power to deliver immense value and insights at pace.
Stop Guessing, Start Analyzing
Get actionable insights for market research here
What are the advantages and disadvantages of market research?
The advantages of market research include things like gaining a competitive edge, data-driven decision-making, reducing expenditure, finding new markets to enter, trend-spotting, and developing growth-focused strategies. The only disadvantage is in how it’s conducted, and the time it takes to carry out the research. However, market research tools are designed to make the task of conducting research more efficient, and cost-effective.
Which goals can market research help you accomplish?
Market research can help you achieve key business objectives, such as growing your customer base, retaining a higher number of customers, improving marketing effectiveness, and increasing revenue.
How can market research benefit entrepreneurs?
The benefits of market research to entrepreneurs are plentiful. It can help startups and new businesses research the viability of a new product or service they want to bring to market. In addition, it allows entrepreneurs to accurately forecast demand , which can help both operationally and financially.
by Liz March
Digital Research Specialist
Liz March has 15 years of experience in content creation. She enjoys the outdoors, F1, and reading, and is pursuing a BSc in Environmental Science.
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The best research process to be used by the orchard is descriptive research because they are trying to target a particular market and analyze a customer category. The descriptive research will help to analyze the customer base, its behaviors, and demographics (Cavugil et al. 2009). It can be administered through surveys of the orchard visitors or employees to determine the strengths and weaknesses of the enterprise from a customer perspective.
Demand forecasting is the process of predicting economic growth and profit potential of each business opportunity. It is critical to predict a potential demand for the product, particularly after a marketing campaign, to generate sales forecasts which can be used for finance purposes. Therefore, descriptive research can directly quantify demand for a product (Kotler & Keller 2012).
Marketing communications is the process of managing the public domain of an organization to provide information and establish brand awareness that makes the product or service more appealing. The company website can be redesigned and rewritten to be more appealing to certain audiences. There may be a broader availability of information such as prices, directions to the orchard, and unique events. The website can include more visuals to attract visitors on a larger-scale.
Based on Anthony’s Orchard website, they are taking a very broad marketing approach by attracting customers with its aesthetics in combination with a high quality of apple-related products. They are leaning on the concept of being a local family-owned business and using the history of tending the orchard to produce the best customer experience (Anthony’s Orchard n.d.).
Maintaining profits in agriculture is difficult since a variety of uncontrollable external factors known as macro-forces can have an impact on the return on investment. Socio-economic factors make prices on fruit and agricultural equipment extremely volatile. Some environmental factors such as climate, weather, soil nutrition, pest infestations, and water supply directly affect the number and quality of fruit available and visitation trends from customers (Victoria State Government 2013).
Descriptive marketing research uses a combination of qualitative and informal methods mixed with quantitative analysis. Quantitative data includes averages, percentages, and statistics which are analyzed using empirical assumptions. Surveys or questionnaires are most efficient tools. Cross-sectional research can be used to test various population samples while longitudinal research tracks responses over time (DeVault 2017). Since competent demand forecasting is responsible for a variety of business decisions from supply management to budgeting, the descriptive research process, which provides a holistic evaluation of the marketing situation, can be significantly beneficial.
Market research provides data that gives businesses an opportunity to comprehensively analyze target markets, consumer demands, and competition challenges. Marketing trends provide an understanding of the effectiveness of various business strategies. In the end, it is critical for the improvement as a company can understand consumer needs and act accordingly to increase customer service quality which will attract more potential visitors (British Library n.d.). Since the orchard values its mission and tradition of providing excellent quality, it is critical the owners have overarching data about consumer behavior to implement further marketing campaigns.
Anthony’s Orchard n.d., Wenatchee Valley. Web.
British Library n.d., Why is market research important for business ideas? . Web.
Cavugil, T, Knight, G, Riesenberger, J & Yaprak, A 2009 ‘Fundamentals of international marketing research’, in T Cavusgil, G Knight, J Riesenberger & A Yaprak (eds), Conducting marketing research for international business , Harvard Business Publishing, Boston, MA, pp. 35-53.
DeVault, G 2017, Descriptive market research . Web.
Kotler, P & Keller, K 2012, Marketing management (14th ed), Pearson, New York.
Victoria State Government 2013, Establishing a fruit or nut orchard . Web.
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Marketing research is a critical tool that businesses and organisations use to gather valuable information about their target market and industry. By conducting research, companies can gain insights into customer needs, preferences, and behaviour, as well as market trends and the competitive landscape. In this article, we'll explore five reasons why marketing research is important for businesses and organisations.
Is your company on the fence about investing in marketing research? If so, read on for five reasons why marketing research is important to the viability and longevity of your business.
Knowing your customers is the first step in running a successful business. And while this may sound simple enough, it can be difficult to look inside the consumer psyche—one whose needs, preferences, and behaviours are ever-evolving.
Fortunately, marketing research can give you a peek behind the curtain, helping you understand what motivates current as well as potential customers. A marketing research survey , for example, can provide insight into pricing sensitivity among a segment of your target population. The data yielded may suggest that boomers are more likely to purchase a product based on price alone while millennials are more motivated by the values of the respective company. Based on this information, you can tailor your offerings to better meet these needs.
Let’s take a closer look at what else marketing research can tell you about your target audience.
Through conducting surveys, you can better understand characteristics of your buyers, like age, gender, race, and ethnicity. You can also collect socioeconomic information like education, income, and employment status. These variables can help you engage in audience segmentation, which essentially involves tweaking your brand messaging to appeal to various subgroups.
Marketing research tools like surveys, transaction tracking, and social media tracking can also shed light on when, why, how, and what consumers are buying. A better understanding of purchasing behaviour can help your company develop brand messaging that strikes a chord with its target audience. If consumers tend to shop between the hours of 5 and 8 p.m., for instance, your company may send an email coupon at 4:45 p.m. to prime that behaviour.
It’s important to learn as much as possible about your current customers. However, it’s equally important to learn about people who are at the beginning of the customer journey. A deeper understanding of what motivates these individuals can help your business turn clicks into conversions.
Risk is an intrinsic part of the business world. However, by understanding market trends and customer behaviour, businesses can anticipate changes in demand and adjust their strategies accordingly. Market research can also help businesses identify potential obstacles or challenges and develop contingency plans to mitigate those risks.
For example, let’s say a company hopes to introduce a new product to the market. Before investing significant time and financial resources into product development, market researchers may conduct a series of surveys to determine if consumers are even interested in the respective product. This mitigates the risk of introducing a good for which there is no demand.
Other examples in which marketing research can be used as a tool for mitigating risk include:
Marketing research gives companies a competitive edge in many ways, one being a greater awareness of the industry itself. By understanding what other businesses are doing, your company can develop strategies to differentiate itself and stay ahead of the curve. For example, if research indicates that laundry detergent manufacturers are increasing prices, a company can either decide to a) keep up with the times and increase costs, b) keep costs the same, or c) decrease pricing to appeal to a specific target market.
Marketing research also helps companies determine areas where they may be falling behind. If several healthcare conglomerates are expanding telehealth services, it would be wise for a hospital to also make moves to provide digital appointments. Otherwise, patients may take their business elsewhere.
How else can marketing research help your business stay competitive?
It’s important for companies to keep up with industry patterns. However, it’s also important for companies to predict patterns before they even happen. The fashion industry provides a good example of this. Trend forecasters analyse decades—centuries even—of socio-cultural data in an attempt to be the first company to put out a ‘hot’ new product that appeals to modern sensibilities.
Similarly, marketing research can help companies realise a demand that has yet to be satisfied. Through marketing research surveys, for instance, an organic snack food company may see that consumers are craving more savoury gluten-free snack options. Using this data, the company can one-up competitors by introducing a new product.
Net profit is an important indicator of a company’s success. However, if profits are plummeting, it can be difficult to know if this is because of your company’s performance or industry-wide factors like increased materials costs and decreased demand. Because of this, businesses must rely on a more holistic approach to evaluating success.
Fortunately, marketing research can be a helpful tool if you want to measure business health using more than dollar signs. Here’s how marketing research can help you gauge company success.
Sure, your company could be making money. But if your customers aren’t satisfied, your financial gains are likely to be short-lived. To determine if customers are happy with your products or services, you can conduct a customer feedback survey questionnaire.
Alternatively, you may choose to conduct a longitudinal panel survey . Unlike an ad hoc survey, which takes a snapshot of consumer opinions and behaviours, longitudinal studies (like monthly or quarterly trackers) monitor how consumer attitudes change over time. This tool is especially helpful if you want to see how customer satisfaction changes after the introduction of new protocols or training methods.
A financially profitable company isn’t necessarily successful if its employees aren’t satisfied. To assess this metric of success, you can conduct surveys, in-person interviews, or focus groups. The results from these marketing research assessments may also shed light on the efficiency of your staff.
It can be constructive to compare your company’s performance to that of competitors. This can help you understand if dips or rises in profit are unique to your company or simply an industry trend.
For decades, companies have made key business decisions based on gut feelings alone. But the new age of marketing revolves around data-driven decision-making: a process in which business decisions are informed by metrics and analytics. This contemporary model helps companies make solid choices that reduce risk while improving performance.
Since marketing research lends itself to data generation, it’s an integral part of this equation. For example, data yielded from a brand awareness survey may illustrate that men aged 50 to 65 in a specific geographic area are the least familiar with the brand. Using this information, the company can invest marketing dollars in a way that will yield true results.
Other examples of using marketing research to support data-driven decision-making include:
All this to say, marketing research has many different applications. By gathering data about customer preferences, market trends, and industry dynamics, businesses can make decisions based on facts rather than assumptions or intuition. This can help businesses avoid costly mistakes and increase their chances of success.
Marketing research is a critical tool that businesses and organisations can use to gather valuable information about their target market and industry. By conducting research, businesses can gain insights into customer needs and behaviour, stay competitive, make informed decisions, manage risk, and measure success.
And during VUCA times (volatile, uncertain, complex and ambiguous), keeping a consistent pulse on consumer sentiment and behaviour is essential to driving the right decisions for business growth.
However, in today's rapidly changing business landscape, marketing research can feel complicated and overwhelming. That’s where Kantar comes in. As an industry leader, we provide tips and tools to help you navigate each step of the marketing research process, from survey design to data visualisation.
Want to get started? Speak to our award-winning team to learn how we can help you conduct marketing research.
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Read: Survey sample questions and templates
Read: Everything you need to know about data quality
Read: Guide to market research surveys
Run your survey research with your rules
Market research in business is the process of gathering, analyzing and interpreting information about a company’s target market, competitors, and/or industry as a whole. It can provide valuable insights into consumer behavior that can be used to inform marketing strategies and tactics.
Companies use market research to understand customer needs and preferences, develop new products or services, identify the best pricing strategies for their products, track consumer trends over time, measure brand awareness and loyalty among customers, and assess their competition in order to stay ahead of the game.
Market research is an essential part of any successful business strategy. By understanding consumers’ wants and needs through market research, businesses are able to make informed decisions that will lead them towards success.
It is important for companies to conduct market research regularly in order to stay current with changing customer trends and demand. Companies should also use multiple sources of data (i.e., surveys, interviews, focus groups, observation etc.) when conducting their market research in order to ensure accuracy and gain the most comprehensive understanding of their consumers.
Ultimately, businesses that are able to effectively utilize market research will be better equipped to make decisions that will optimize their success in an ever-evolving marketplace.
Market research is essential for any business. It helps businesses to understand their target market, identify customer needs and preferences, create effective marketing campaigns and measure the effectiveness of those campaigns. Market research also enables businesses to anticipate changes in consumer behavior and respond accordingly.
With market research, businesses can find out how customers perceive their products or services, what they like and dislike about them, what they would be willing to pay for them and how they can improve their offerings. All these insights are invaluable when it comes to making informed decisions that will ultimately lead to increased profits and success for the business.
Good market research requires a carefully planned approach; this includes understanding the objectives, setting realistic goals and timelines, selecting appropriate methods of data collection, analyzing the data and finally implementing the findings.
It is important to note that market research should not be used as a one-time tool, but rather as part of an ongoing process. Businesses need to continually monitor their target markets, so they can stay up-to-date with customer preferences and identify potential opportunities for growth or improvement.
By using market research effectively, businesses can gain a better understanding of their target audiences and develop strategies to increase customer loyalty and satisfaction. This improved knowledge base will enable them to make more informed decisions about product design, pricing, advertising campaigns, promotions and other activities that will ultimately help drive sales growth.
Ultimately, successful market research leads to increased profits for businesses – so it pays off in the long run!
Market research plays an important role in the success of a marketing strategy. It helps you get to know your customers, identify their needs and wants, understand their motivations for buying, and learn how to deliver the right content or message in order to engage them. By performing market research, companies gain invaluable insights into their target audience that can help inform strategic decisions related to promotion, pricing and product development.
Conducting primary research is essential in understanding customer sentiment and preferences before launching a new product or service on the market. Companies can use surveys, focus groups and interviews with potential customers to gain knowledge about their current behavior as well as what they might be looking for in future products or services. This type of information provides useful data which can be used to fine-tune existing marketing strategies or create entirely new ones.
Secondary research can also be helpful when creating a marketing strategy. This type of research involves analyzing data that has already been collected, such as industry reports, competitor analysis and consumer trends. This information can provide important information about the competitive landscape and current preferences among customers. Additionally, it can alert companies to emerging trends in their industry that they might not have been aware of before.
Finally, market research is an effective way to measure the success of a specific campaign or tactic. Companies can use surveys and analytics tools to track customer behavior and assess how their efforts are performing in real time. By evaluating this data over time, businesses can gain insight into what changes should be made to their marketing strategy in order to maximize its effectiveness.
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by Sarah Schmidt , on May 29, 2018
Consider the following scenarios:
Each of these individuals may have previous experiences and gut instincts that inform their thinking and planning, but they must also incorporate high-quality data and analysis into their decision-making process in order to understand the bigger picture, persuade key stakeholders, and back up their conclusions.
Risk is inherent in each of these situations, and a fumble at the wrong moment can lead to serious consequences for an individual’s career success and a company’s longevity. When the competition is fierce and the margin of error is thin, relying on faulty assumptions can be fatal.
As we explore in the white paper The Importance of Market Research for Validation and Decision Making , high-quality industry research can mitigate these risks by helping to test your hypotheses, validate your insights, and build your sense of confidence.
Since 2000, more than half of the companies in the Fortune 500 have merged, gone bankrupt, or been acquired, according to Forbes . A new generation of innovative companies has sprung up, creating unique business paradigms for the organizations of tomorrow.
In this volatile environment, it’s not enough to just predict or forecast within the existing scope of business (though you should). To avoid getting “Ubered” like the cab industry, companies must leverage accurate data and qualitative assessments about the industry direction and identify gaping holes in customer satisfaction that outsiders may prey on. Rigorous analysis should be used to drive decision making and adapt in a timely manner, and in this regard, third-party market research can protect you in more ways than one.
Market research can open your eyes to products and trends beyond your own company and help you become more aware of influential variables such as:
With adequate research, you can seize valuable opportunities for product development and new market entry. You can also make more prudent investments — increasing spending on markets that still have room for growth and re-evaluating investments in markets with lower demand.
Market research can also give you the foundation you need to make other pivotal shifts in your business. For example, you may find that you need to build new external partnerships to quickly adapt to technological changes (such as cloud computing, virtual reality, or automation), or it may be in the best interest of your company to acquire a start-up to maintain a foothold in an evolving industry (such as Walmart acquiring Jet.com to boost its e-commerce side of the business).
Making smart business decisions — and gaining buy-in from stakeholders along the way — is much easier when you have credible evidence to back up your strategies.
Interested to learn more? Download MarketResearch.com's free white paper for more practical insights and recommendations.
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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:
Why is market research important, types of market research, where to conduct 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:
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.
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.
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 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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?
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 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.
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.
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.
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.
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.
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.
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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Enterprise ireland.
Firstly, we should clarify “What is Market Research?” It can be described as the action of gathering, analysing and interpreting information to help solve marketing challenges. We use market research for a variety of reasons, it helps us make educated decisions for example determining the feasibility of launching a new product before dedicating time and budget into the new venture. Market research is a vital element when developing your marketing strategy. When done correctly it can help to enlighten your marketing activities – such as understanding the requirements of your target audience, helping to understand what key messages you should convey and how to convey them.
It should be treated as an ongoing activity – you should always be learning about your business environment, your customers and their needs and preferences. The environment is constantly changing so it’s important to make sure you are researching it and understand what factors are changing that could impact on your marketing plans.
Without market research we are reliant on instinct and anecdotal information to make key business decisions, this is not always accurate.
Ultimately, you want to gain deep insights through market research, there are multiple types of research you can do to get the best insights, depending on what you want to know. Some of the most common types of market research activities include:
Primary Research – this can often be referred to as “field” research and involves gathering new data, first-hand, that has not been collected before.
Secondary Research – is sometimes referred to as “desk” research and involves gathering data that has already been compiled and organised for you. It includes reports, government funded studies, textbooks, historical records and statistical databases.
Within these types of research methods there are a few different types of data collection methodologies that can be used, such as:
You should always ensure the end goals and objectives are clear. Your target audience, business objectives, challenges and end customer should be at the heart of it.
In short yes, absolutely. There are enough examples out there of product and business failures simply because enough market research was not done from the outset. Planning to launch a new product, or export to a new market without adequate research is a recipe for disaster. You need to really understand your customers and your competitors before making such a leap.
With more and more companies exporting to many global locations it’s important to be aware of the cultural and language differences in those markets. So, while research in one geographic location will yield certain results this may not be replicated in another location. The famous KFC case, where their company slogan “ Finger Lickin’ Good ” translated as “ Eat Your Fingers Off ” in Chinese is a great example of this.
However as per point 10 above, while market research will help determine our marketing strategy and focus where our marketing efforts should lie, they should not be taken in isolation. Take the famous “ New Coke ” example from the 1980s. While research and focus groups were extremely favourable of the new coke flavour, it failed to understand the significance of the brand affinity and nostalgia that consumers had with the original taste of Coke. In this instance the wider environment and brand impact should have been taken into consideration before making the final business decision.
Used correctly, market research is a powerful tool to help minimise the risks involved when making key business decisions.
Market Research can significantly help your marketing strategy as it helps to provide key insights and information to the business. It can provide a deeper understanding on your customer and competitors. Research will help to understand who is buying your product or service, who is not buying your product or service, what motivates them, and whether they are loyal to your brand – ultimately leading to increased sales over time.
Similarly understanding the wider market environment can help identify new opportunities for your business. As the market changes its important to continue to research and understand ways you can improve on your offering based on the changing consumer preferences or market dynamics.
While there were many factors involved in why Nokia had such a spectacular fall from grace within the electronics market, ultimately, they failed to research and understand the changing market trends. They were late to the market with new innovations, while their competitors, customer preferences and technology were advancing so fast. Others such as Samsung, Sony and Apple iPhone moved in and quickly became some of the leading electronics brands in the world.
It is clear that market research is vital when developing your marketing strategy. It provides great insights to your business and on the wider marketplace. Market research can identify how customers and potential customers might view your business and identify gaps in customer expectations. This is powerful information to have when completing your marketing strategy. Having good market intelligence helps to minimise risks when making key business decisions.
There are too many benefits to conducting good market research for it to be ignored as part of your marketing strategy.
To learn more about market research, please send an email to [email protected] or feel free to contact us on +353 91 739450
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In our season one wrap-up episode, Senior Associate Dean Jesper Sørensen discusses the importance of research.
July 25, 2024
To wrap up the first season of If/Then: Business, Leadership, Society , we invited Senior Associate Dean Jesper B. Sørensen into the studio to talk about the importance of research at Stanford Graduate School of Business. He shares insights on what motivates faculty to study what they do and how it impacts practitioners across industries.
“One of the challenges of being a great researcher is that you need to move away again from this kind of day-to-day reality.… I think a gift that a lot of our faculty have is to be able to both live in that very abstract kind of world and then make it relatable to somebody who’s not living in that world,” Sørensen says.
“Sometimes putting fundamental insights into practice is really hard. One of the hallmarks of research is trying to isolate particular mechanisms through various kinds of control. Scientists live in the world where it’s a vacuum, and so we just watch the leaf fall, and we can then time it and then tell you what the answer is,” Sørensen says. “And managers live in a world where the wind is blowing, and there’s all these kinds of forces getting in the way.”
In his conversation with podcast host Kevin Cool, Sørensen also shares his thoughts on three episodes from If/Then ’s first season.
Senior Editor, Stanford GSB
If/Then is a podcast from Stanford Graduate School of Business that examines research findings that can help us navigate the complex issues we face in business, leadership, and society. Each episode features an interview with a Stanford GSB faculty member.
Note: Transcripts are generated by machine and lightly edited by humans. They may contain errors.
Kevin Cool: Hi again, everyone. I’m Kevin Cool, senior editor at the GSB and the host of If Then . We’ve had an interesting and enjoyable first season of 13 episodes, and we want to wrap up the season with a bonus 14th episode. And I’m delighted to invite into the studio today Jesper Sørensen, who’s a member of the leadership at the GSB.
Jesper is going to talk to us about research, how it gets done, what it means, why it’s important.
Kevin Cool: Welcome. Jesper, it’s a pleasure to have you here. We would like to start just by asking a very basic and fundamental question, which is why is research important? What difference does it make in the lives of everyday people?
(00:54) Jesper Sørensen: That’s a great question, and for professors like me, it’s an important question. I think one of the things that we have to remember is knowledge is discovered over time. Human society has evolved over time to have a deeper and deeper understanding of how things work. And that’s really what we call research, right? Taking and asking questions and then being disciplined and systematic about how you answer them.
Kevin Cool: And how is that enterprise different at a business school or is it different from say, the university more generally?
Jesper Sørensen: I think it’s more similar than different, but I think there is a difference in the sense that a business school is a professional school. We train MBA students and what we call MSX students, as well as PhD students. And what we want both our MBA students and our MSX students, what we want them to do is change lives, change organizations, and change the world.
We want to take basic insights about how humans work and apply that in their day-to-day lives. I often think that the managers and the leaders that come through the GSB in some ways have a much harder job than we scholars do. My colleagues might not be happy to hear that, but sometimes putting these fundamental insights into practice is really hard. One of the hallmarks of research is trying to isolate particular mechanisms through various kinds of control. Scientists live in the world where it’s a vacuum: and so we just watch the leaf fall and we can then time it and then tell you what the answer is.
And managers live in the world where the wind is blowing and there’s all these kinds of forces getting in the way. And so that’s really what’s challenging about management, but that’s also what makes it so exciting to be in a business school: you interact with the people who are dealing with the real problems. Other parts of a university are oftentimes embedded deeply in scholarly communities and a little bit further removed from the day-to-day action, so to speak. And in business school, the real world interpenetrates the scientists’ world a little bit more, which is I think exciting.
(3:08) Kevin Cool: Thank you. Well, speaking of real problems, that’s a good segue into my next question, which is recently the GSB has embarked on initiative they’re calling Business, Government and Society. Can you just talk a little bit about that? What are the goals and why has that emerged as an emphasis?
Jesper Sørensen: The Business Government Society initiative? I think one way to think about this is if you were to stop somebody in the street and you were going to ask them, what do you think goes on at a business school? I think they would say, well, they’re training people how to maximize profits. That’s what a business school is about, how to make a business, make as much money as possible. And I think for a long time that has been more or less explicitly what business schools have been about. And there’s no doubt that’s a very important part of what we do because profit maximization is one of the most powerful engines society has kind of uncovered for change and for positive change. But actually what happens in a lot of business schools and certainly at the GSB is a little bit different. And so I think if you look at the kinds of people that you have interviewed in the podcast this season and in general on our faculty, what you have are people who are really experts in all facets of human behavior and really are focused on trying to understand how humans work, how societies work, how groups work, et cetera. And that leads to an incredible diversity of implications.
That’s really what feeds into this business, government and society initiative because I think the way we want to think about it is the purpose of a business school is really to make the world a better place, to think about all the complicated ways in which things interact. So how do markets and institutions interact with firms, and how do they change incentives, and how can you learn to balance between the good things that come from being profit-seeking and some of the negative externalities that sometimes go along with them. And I think the Business Government and Society Initiative is kind of a way for us to deepen the school’s ability to speak to this broad range of issues. I think we’ve always been a school that’s super strong in those dimensions, but I think it’s really about accelerating that to a much greater extent.
Kevin Cool: Well, certainly one of the biggest challenges for the world, for society, business, government, everything is climate change. And Professor Bill Barnett was one of our first guests on the show, and he has completely pivoted his research in the direction of sustainability. He’s really an expert on innovation in organizations, and he’s now applying this to sustainability.
How unusual is it for a professor who’s quite veteran, Bill’s been here since the early 1990’s, to make that kind of a switch, and what does that say about the importance of climate change more broadly?
(6:05) Jesper Sørensen: Bill’s pivot over the last couple years is really remarkable, but you’re actually seeing it among a number of our faculty. I think it’s one of the great strengths of the academic system is that you are given such freedom and you’re given the ability to really discover where your talents can best be deployed.
I think what you see with the formation of the Doerr School for Sustainability here at Stanford is really just a blossoming and a focus of interest on campus and people kind of being drawn to this. I think there’s no doubt a lot of our faculty have an individual kind of deeply personal concern for the challenges of climate change. But I think the other part of it is, it’s also intellectually a hugely stimulating kind of topic. The things that you want to challenge as a researcher are the hardest problems. And what could be a more difficult problem than climate change? And really thinking about how one can move society in the right direction in terms of addressing those challenges.
Kevin Cool: We talked to Rebecca Diamond, who’s an economist, and Rebecca uses large data sets. In the study that we talked to her about, she had used social security data to tease out information about foreign born inventors and what sort of impact they had on the US economy, on innovation and so on.
Can you talk a little bit, Jesper, about how either tools to make this data accessible or the data themselves becoming more robust has transformed research?
Jesper Sørensen: Rebecca is a great example of a real transformation that has occurred in Economics in particular over the last couple of decades, which is really a blossoming of what’s called Applied Economics, right? So essentially using empirical data in a very sophisticated kind of way to answer kind of very fundamental questions. And I think what’s really important about this is it’s easy to have ideas, but you also need facts, collect very precise data to get at a set of empirical facts.
In some way, that’s what Rebecca has been doing. She’s essentially being incredibly creative in thinking about how to combine different kinds of data sources being incredibly entrepreneurial in thinking about how to get people to agree, to allow her to combine different kinds of data sources, and then using it in a very sophisticated way to be able to make very precise statements about the contribution of immigrants to patenting behavior and so on and so forth. Anot just their individual contributions, but also to their kind of spillovers onto others.
Again, it’s only when you’re able to really be careful and be precise in that very disciplined controlled way in which great scientists go about doing research, that you’re able to kind of establish a certain set of facts. I think the policy debates around immigration at the high end, kind of a high potential high levels of education, there’s probably more consensus there than there are in other areas of the immigration debate. But nonetheless, it’s super important to be able to know, well, I don’t know that people had a clear sense of what that spillover effect was, so they might be able to say, yes, I can see how hiring or admitting the smartest people from around the world, those people are then going to stay and patent. But I think what’s beautiful about that research is then showing it’s not just that. It’s also that the people they work with become more productive, and it’s in the combination of the two that you get the real benefit.
(9:50) Kevin Cool: Deborah Grunfeld, professor Deborah Grunfeld gave us a fascinating conversation on the dynamics of power, especially as it relates to organizations. And one of her insights was that individuals may not understand or appreciate how much power they actually have. For example, in a situation where they need to call out toxic behavior by a boss, how do insights like that get into the mainstream and become, for lack of a better word, accepted wisdom?
Jesper Sørensen: Through podcasts, like If/Then I would say is certainly one channel, but a lot of this is about, I think what I love about Deb’s research is really about how she connects her insights to people’s own lived experiences,
Kevin Cool: Including her own, including as it turns out.
Jesper Sørensen: One of the challenges of being a great researcher is that you need to move away again from kind of day-to-day reality. In some sense, you need to abstract and you need to simplify. And so it’s a gift, and I think it’s a gift that a lot of our faculty have is to be able to both live in that very abstract kind of world and then make it relatable to somebody who’s not living in that world. So it’s an act of translation. And I think part of what it does is it demystifies things. And I think if you demystify things, you empower people. Then they can start to see, ‘oh, actually not just my gut. That tells me that it might make sense for us all to send in our complaints about the bad boss on the same day. It’s actually backed up by research and there’s science that suggests that I would have success in doing this’, and that instills the level of confidence that I think is really important.
Kevin Cool: Switching gears just a little bit, Mohammad Akbarpour, also an economist, talked to us about an interesting hypothesis that he is exploring, which has to do with the relative value perceived by people in different income levels, a poor person versus in his example Elon Musk.
His premise undergirding his research is that we could make markets more fair if we accounted for that. And one of his examples was using Uber as a sort of case study. If you charged less in poorer neighborhoods and more in more affluent neighborhoods, that would make the market more fair. That does have some, what I would call, political ramifications. Essentially it’s like a redistribution model. And he acknowledged that he had some pushback about that from people. My question is, is there a place for research that essentially is advocating a policy change or a market fix that could also be viewed as a political argument?
Jesper Sørensen: Mohammad podcast is probably my favorite one from this whole season. It was the one that I listened to and it just kind of blew my mind. And so I should preface this by saying I’m not an economist. I’m a sociologist by training. The reason it blew my mind is that he was willing to go somewhere in developing this model that the kind of economic orthodoxy typically does not go. And that’s part of where he is getting the pushback.
The reason it’s relevant that he’s an economist. Now, I’m a sociologist, is one of the reasons people like me become sociologists is because we have more discomfort with the assumptions that he’s challenging. And the fact that he can do it within the confines of the discipline and do it in a way that’s very hard I think to not take seriously, is super powerful. And I think yes, those ideas can be politically controversial, but is that a bad thing? No, because I think what it does is it says the truth that we have discovered is the final truth and what he’s asking us to consider, and let’s be clear, he might be wrong. I think we should all be focused on the possibility. Great ideas initially are often wrong or look wrong, and you have to be willing to take the kind of risk that Mohammad is making to have a great idea.
Hopefully it won’t be wrong because I think there’s some really powerful insights that can be drawn from that in terms of where you want to use redistribution or where you want to not rely on the market and so on and so forth. And I think that is really opening up a set of topics and kind of maybe a can of worms, but that’s good, right? That’s what people should be doing. They should be not just taking everything for granted as if we figured everything out when we wrote down a formula 300 years ago or whenever it was that was written down.
Kevin Cool: So I want to give you here in our last few minutes, is there something about the GSB that I haven’t specifically asked about that you think is important for people to know?
Jesper Sørensen: I think the one thing I would say is it’s incredibly fun. If you listen to the ideas that get mentioned in your podcast, you might agree with them, you might not agree with them, but have fun in that and enjoy it and say, ‘ah, I don’t agree with it, but I never thought about it from this perspective.’ I do think there should be something about research that is also about consumption enjoyment of the process. I think that’s why all of the people who are here keep doing it.
The reason you become a professor at the end of the day is intrinsic motivation. You shouldn’t do it if you’re looking for people to cheer, to give you praise. And it’s not always that financially rewarding of an enterprise, because being an academic is a lot of negative feedback because of the review process and seminars where people are trying to tell you in order to make your paper better, they’re trying to tell you everything that’s wrong with it. So you also have to just have this joy in it. And I think if you’re not a researcher, you could still get that joy without the slings and arrows, and so you could just consume it and say, ‘ah, okay, that’s really cool. Who would’ve thought?’
Kevin Cool: Well, it’s interesting. Mohammad actually was one of those who said he kind of lives in the 5%; 95% of either what you’re pursuing something that turns out to be a dead end or is wrong, or people disagree with it in a massive way. But he said, if there’s that 5% chance that it’s going to make a difference, that’s enough for me.
This was delightful. Great. It was fun. I hope you enjoyed it.
Thank you for listening to our first season of If/Then we invite you to come back to listen to bonus episodes over the next few months as we prepare for season two.
For media inquiries, visit the Newsroom .
12 of our favorite research stories of 2023, changing lives, organizations, the world: dean jon levin of stanford gsb, what does the word “intelligence” really mean, editor’s picks.
Making Great Strategy: Arguing for Organizational Advantage Jesper B. Sørensen Glenn R. Carroll
April 03, 2024 Is Money Really the Best Measure of Value? If we want a more equitable world, then we need to consider the different ways people value money.
March 06, 2024 The Brain Gain: The Impact of Immigration on American Innovation If the United States wants to remain a global hub of innovation, then we need to understand the role of immigrants.
February 20, 2024 So Crazy, It Might Just Work: How Foolishness Feeds Innovation If we want to seriously address the climate crisis, then we need to encourage foolish business ideas.
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By embracing business innovation, you set yourself up to provide invaluable goods and services to consumers, building your band all the while.
Highly successful businesses are always forward-looking. Their leaders brainstorm products and services that would allow them to acquire new customers, stay relevant, and uncover new revenue opportunities.
Smaller companies can also embrace innovative solutions to keep their businesses growing and their customers satisfied. Here’s how business innovation can lead to increased market share and higher profits.
Table of contents:
Why is business innovation important, types of business innovation, how to innovate in business, business innovation faq.
Business innovation refers to the process of introducing new ideas, products, services, or operational methods to create value and drive growth. Sustaining innovation involves constant small changes that keep a business relevant, while disruptive innovation aims to introduce entirely new products or business models with the power to revolutionize an industry.
Depending on a company’s industry and business model , the goals of business innovation may include:
For most successful companies, innovation is the key to survival. Business innovation does the following:
Process innovation, marketing innovation, organizational innovation, business-model innovation, industry-model innovation, service innovation, revenue-model innovation.
There are many real-world examples of business innovation. Some focus on improving products, while others help workers save time or improve productivity. Here are eight types of business innovation used by many successful businesses:
This type of innovation involves developing new or improved products or services to meet changing customer needs or market demands. It can range from entirely new inventions to enhancements of an existing product. Innovative product development often leverages new technologies, such as those that make batteries last longer or fabrics more stain-resistant.
Process innovation focuses on improving internal operations and workflows. It seeks to enhance efficiency, reduce costs, and streamline processes. This can involve adopting new technologies, such as artificial intelligence (AI). It could also mean reengineering existing business processes, such as changing an inventory management strategy or a customer retention strategy.
Marketing innovation involves finding new and creative ways to promote and position products or services in the market. It may include innovative advertising strategies, social media campaigns , and influencer marketing . Some of these innovations require embracing brand-new marketing channels, while others involve creating updated content for existing channels.
Organizational innovation relates to changes in a company’s structure, culture, or management practices. It often aims to foster a more innovative and adaptive environment, encouraging employees to think creatively, collaborate, and take risks. Successful innovation in this sphere may include reorganizing teams, introducing new leadership styles, or creating innovation-focused departments.
This type of innovation involves rethinking the fundamental way a company creates, delivers, and captures value. It can lead to entirely new revenue streams, pricing strategies, or distribution methods. Examples of business-model innovation include a software company shifting to a subscription model or a jewelry seller starting a referral program .
Sometimes, in the course of idea generation, businesses find themselves exploring entirely new industries. A discussion of new revenue streams can lead to a retailer investing in commercial real estate, or a phone manufacturer delving into software development. This can be a source of growth and diversification, which hedges against upheaval in a company’s core business.
Service innovation specifically focuses on improving the way businesses provide services to customers. Examples include introducing digital self-service options, ecommerce chatbots , or product-return drop boxes.
Revenue-model innovation overlaps with business model innovation, but it specifically focuses on revenue growth. For example, a company could adjust its revenue model by allowing sponsored ads on its website or by creating membership tiers that provide different levels of service. Revenue-model innovations usually follow a period of market research so key stakeholders can better understand customer behavior and budgets.
Developing innovative ideas can play a crucial role in helping your business rise above the competition. The innovation cycle can be broken down into six key phases: ideation, development, testing, implementation, evaluation, and adoption. Here are four tips to help you generate and develop innovative ideas to develop and test:
Foster a workplace culture that values and encourages creativity and out-of-the-box thinking. Make employees feel comfortable sharing their ideas and taking calculated risks. It may help to assemble diverse teams with varied backgrounds, skills, and perspectives. Different viewpoints can lead to more innovative solutions.
Understand your customers’ needs and pain points via tools like buyer personas , surveys, interviews, and feedback loops. If you’re in ecommerce, pay attention to your user interface (UI) and user experience (UX) , viewing them like a new customer experiencing your site for the first time. You can also practice social listening on your company’s social media channels. This can help you innovate with respect to the customer experience.
Keep a finger on the pulse of emerging technologies and industry trends. Attend conferences, read industry publications, and engage with thought leaders to understand the potential for innovation.
The various forms of innovation are not mutually exclusive, and businesses often employ multiple innovation models to remain competitive and meet evolving customer expectations. With the right team, you can tackle multiple projects, such as concurrently changing your revenue model and overhauling office workflows.
The business innovation cycle breaks down the typical steps a business takes in order to innovate: ideation, development, testing, implementation, evaluation, and adoption. Depending on your business model and philosophy, the steps may be slightly different.
The keys to innovation in business are fostering a culture of creativity, staying customer-centric, embracing emerging technologies, and promoting continuous learning and adaptation.
No, invention and innovation in business are not the same. Invention is the creation of new ideas or products, while innovation involves the successful implementation and commercialization of those ideas to create value and drive growth in the marketplace.
Sustaining innovation refers to incremental improvements made to existing products or processes to maintain a company’s competitive position. Disruptive innovation involves the introduction of entirely new products, services, or business models that can disrupt or reshape an industry by addressing unmet needs or creating new markets.
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Now that we know what market research is and what different kinds it has, it's time to learn why it is important, and why you should invest in it if you want to become a successful entrepreneur. 1. It Helps You Identify The Problem Areas As Well As Strong Areas. Knowing what you are good at and what you're not, help you take profitable ...
Introduction. In the fast-paced and dynamic business environment, companies need to stay ahead of the curve to remain competitive. Market research acts as a compass, guiding businesses through the complex marketplace by providing relevant information and actionable insights. It involves gathering and analyzing data about customers, competitors, and market trends to uncover opportunities and ...
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 ...
Advantages of market research. Market research helps you identify your greatest strengths, threats, and opportunities. It can help you find your way when markets become tough to predict and find efficient ways to grow your business. Online market research can help the whole business at any stage of its life.
Marketing research is very systematic, scientific, objective and organised. It has a wide opportunity. It contains consumer research, packaging research product research, pricing research, and etc. Marketing research is a non-stop method. It has a few margins. However, a company cannot continue and be successful without marketing research.
3.0 The Importance of Marketing Research. Marketing research is a systematic collection and analysis of data about market and the important quality of market. Therefore, Market research is an extremely part of any business that wants to offer products or service that are focused and well targeted. It also affects the profit of a business and ...
Market research is a systematic process of gathering, evaluating, and interpreting data. It is the basis of any business that does well. The data could be about a target market, customers, competitors, or the industry as a whole. The research serves a variety of reasons, ranging from identifying a new market to launching a new business.
The importance of market research. This type of research will help you decide which direction your business should take. It covers all areas that impact your chosen market and your place within it. This includes: Competitors. Target audience. Customer segmentation. Brand analysis. Campaign evaluation.
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.
The Importance of Marketing Research. These are the ten reasons why market research is important, especially for smaller teams and businesses: 1. Better Understand Customer Needs. While every business has many stakeholders, the customer is always at the center of what you do.
One hundred years have passed since the founding of the first independent market research firm in the UK in 1921. This important milestone inspired this special issue of the International Journal of Market Research that explores the role and importance of market research through a historical lens. A historical approach enables recognising and (re)framing both academic and practitioner ...
Market Research vs. Marketing Research. Market research involves identifying a specific "target," and focusing exclusively on that group. It is research into a narrow group of consumers to understand their behavior and motivation. Marketing research has a broader scope that market research. It is used to examine the entire marketing process of ...
Yet still, there are many who focus on instinct instead of insight. While intuition is all good and well, there's no getting away from the power of cold-hard data. In this post, I list 11 market research benefits, with real-world examples and six free research templates thrown in for good measure. 1. Better communication with customers.
Market research provides data that gives businesses an opportunity to comprehensively analyze target markets, consumer demands, and competition challenges. Marketing trends provide an understanding of the effectiveness of various business strategies. In the end, it is critical for the improvement as a company can understand consumer needs and ...
3. Marketing research helps businesses stay competitive. Marketing research gives companies a competitive edge in many ways, one being a greater awareness of the industry itself. By understanding what other businesses are doing, your company can develop strategies to differentiate itself and stay ahead of the curve.
Market research is a process of gathering, analyzing, and interpreting information about a given market. It takes into account geographic, demographic, and psychographic data about past, current, and potential customers, as well as competitive analysis to evaluate the viability of a product offer. In other words, it's the process of ...
For any company to be competitive, they must have access to high-quality, reliable market research, which can guide everything from investments to product development. Understanding the competitive environment of a given industry and its growth potential allows companies to develop strong short-term and long-term growth strategies."
Market research plays an important role in the success of a marketing strategy. It helps you get to know your customers, identify their needs and wants, understand their motivations for buying, and learn how to deliver the right content or message in order to engage them. By performing market research, companies gain invaluable insights into ...
Rigorous analysis should be used to drive decision making and adapt in a timely manner, and in this regard, third-party market research can protect you in more ways than one. Market research can open your eyes to products and trends beyond your own company and help you become more aware of influential variables such as: Disruption. New technology.
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 ...
It is clear that market research is vital when developing your marketing strategy. It provides great insights to your business and on the wider marketplace. Market research can identify how customers and potential customers might view your business and identify gaps in customer expectations. This is powerful information to have when completing ...
Spotify. YouTube. If/Then is a podcast from Stanford Graduate School of Business that examines research findings that can help us navigate the complex issues we face in business, leadership, and society. Each episode features an interview with a Stanford GSB faculty member.
Why research is important 3 concepts or constructs. A piece of research is embedded in a frame-work or way of seeing the world. Second, research involves the application of a method, which has been designed to achieve knowledge that is as valid and truthful as possible. 4 The products of research are propositions or statements. There is a
Marketing innovation. Marketing innovation involves finding new and creative ways to promote and position products or services in the market. It may include innovative advertising strategies, social media campaigns, and influencer marketing. Some of these innovations require embracing brand-new marketing channels, while others involve creating ...