Market Research 

Market research is the process of gathering data to assess the viability of a market, product or service. It will systematically gather, record and analyse data about customers, competitors and the current state of your industry.

Quality data collected through market research can inform critical decisions, validate business methods and avoid costly errors.

Market Research Process 

Before exploring the methods and strategies used to extract the most relevant and useful information, it’s important to understand why market research is essential for business owners. Market research data will help you understand your market, identify opportunities and connect with your customer base. It’s the voice of your potential customers distilled into actionable insights for your business.

Find Your Why

Recognising the importance of market research can save a lot of time, money and wasted resources. Before the data collection process begins, gain clarity on why you want to start the research process and what decision you want to make with the data.

Identify New Opportunities

Are you looking to take your business in a new direction, add alternative product lines or differentiate services? Research can uncover new product or service lines, identify niche markets to explore further or gaps in the market you could fill.

Minimise Risks

Launching a new product or service can be a risky business. It can also be costly without gauging demand. Similarly, entering a market without understanding its drivers can lead to significant losses. Data serves as a safety net against such gambles, allowing you to assess the risk and make informed decisions.

Gain Customer Insights

Knowing your customer is the golden ticket in business and marketing. Research can help with the process of building detailed personas, understand challenges and pain points and deliver targeted solutions that resonate with your target audience.

Types of Market Research

Market research can be divided into two categories: primary and secondary.

Primary Research – First Hand Insights

Primary research is the data you collect directly from the source. It can include your target market, competitors or suppliers. The most common methods of conducting primary research are surveys, interviews and focus groups. It aims to collect current, specific data that directly addresses the goals of the research. The data is original and tailored to your exact needs which can offer a competitive advantage.

Secondary Research – Data from Existing Sources

Secondary research, on the other hand, involves using information that has already been collected by someone else. This could be information from government publications, industry statistics or academic papers. The advantage of secondary research is that it’s generally more cost effective and less time consuming. It can also provide a broader view of your industry, which might offer up insights you hadn’t considered.

Besides the traditional distinctions, market research can be further categorised into qualitative and quantitative methods. Qualitative research focuses on gaining an understanding of underlying reasons, opinions and motivations. It provides insights into a problem or helps develop ideas or hypothesis for potential quantitative research. Conversely, quantitative research deals with numerical data and statistical analysis of results.

Selecting the right method or combination of methods depends on the nature of your business, the information you’re seeking, and the resources at your disposal.

How to Conduct Market Research

The actual process of carrying out market research can seem daunting but breaking it down into steps makes it manageable. Here is a step-by-step guide to conducting your research effectively and efficiently.

Step 1 – Define Your Objectives

Begin by clearly defining what you want to achieve. This means understanding the problem you’re trying to solve and what you hope to learn from the research.

Step 2 – Choose Your Method

Given your objectives, you can now select the research method that is best suited to provide you with the data you need. Remember, this could be a mix of primary and secondary research methods.

Step 3 – Design Your Research

If you’re conducting primary research, you’ll need to design your study, including things like developing a survey, choosing your sampling method, and deciding how you’ll collect and analyse the data.

Step 4 – Collect your Data

Once you have your research design, you can go ahead and collect your data. This could involve interviewing customers, distributing surveys, or scouring industry reports.

Step 5 – Analyse the Data

Conduct a rigorous analysis of your findings to uncover any trends or patterns. If your research was quantitative, this would involve statistical techniques. Qualitative data could be analysed using thematic coding or content analysis.

Step 6 – Draw Conclusions

Based on your analysis, draw conclusions that can inform your business decisions. This might involve discarding a business idea due to a lack of demand or identifying a key segment of your market that’s underserved.

Step 7 – Action Plan

Finally, create an action plan based on your research findings. This could mean developing a new product, adjusting your pricing strategy, or overhauling your marketing. Remember, the point of market research is to inform decision-making, so don’t let your findings gather dust — put them into practice.

Using Market Research Findings

Having a stack of market research findings is only half the battle. The real power comes from how you use that data to shape your business strategies.

Tailor Your Marketing

Use your research to inform your marketing strategies. If your market research suggests your target audience spends a lot of time on social media, direct your marketing efforts there.

Product Development

Learn from your market research to develop products that your audience genuinely wants and needs. If there’s a gap in the market for a specific product or a desire for certain features, be the business that fills it.

Pricing

Market research can provide insight into what your customers are willing to pay. It can also help you understand your position in the market in terms of pricing and what your competitors are charging.

Improve Customer Service

Customer service is a significant differentiator for businesses. Use your market research to improve your customer service offering to match or exceed your customers’ expectations.

Market Research Tools and Software

The right tools make the job easier and more effective. Here are some market research tools and software you might want to consider:

SurveyMonkey and Typeform

For online surveys, platforms like SurveyMonkey and Typeform can help you design and distribute surveys with ease.

Google Analytics

For understanding your web traffic and online customer behaviour, Google Analytics is an essential tool.

Statista and Pew Research Centre

For secondary research, organizations like Statista and the Pew Research Centre provide a wealth of data for a range of industries and topics.

Social Media Listening Tools

To understand the sentiment around your brand or industry on social media, social media listening tools like Hootsuite and Buffer are invaluable.

Market research is not a one-time event but an ongoing process. Establish a feedback loop where you continually gather new data, assess its implications, and make necessary adjustments to your business model. This iterative approach will keep your business attuned to the market, allowing you to pivot quickly and take advantage of new opportunities.