How To Do Market Research – [Ultimate Guide]
Updated on Sep 26, 2022 | 8 min read | 5.7k views
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Updated on Sep 26, 2022 | 8 min read | 5.7k views
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Today, consumers have the ultimate power to research any product or service and make the sole decision of whether or not they should go ahead with a purchase. As a result, they are more likely to go by the review and feedback from their peers or network connections rather than consult a business representative.
From the business standpoint, this has essentially brought about a drastic change in marketing strategies which were earlier focused on flashy content and over-the-life portrayal of products. Business owners now need to understand the requirements of their target consumers and the factors that influence their purchase decisions. They need to devise strategies based on the research techniques of consumers and their mode of shopping.
Naturally, it boils down to the single most crucial aspect of doing business — performing market research. It is the backbone of businesses today and decides whether a given company will witness success or perish due to inadequate market research knowledge.
Market research is how companies gain insight into their target audience, their purchase habits, estimate the position of a business (product or a service) in the market, evaluate the competition, etc. In short, market research gives you an exact picture of whether or not your business can be ( or is) successful among your consumers.
According to the latest reports of ESOMAR, a reputed organization that conducts market, social, and opinion researches, over $40 billion is invested in market research annually throughout the world. This gives us a basic idea of how important market research is for a business’s long-term success.
Market research plays a role in:
Gone are the days where entrepreneurs and companies made business decisions based on instincts and experience. The perception that only those who dare to take aggressive risks can succeed in business has also become obsolete.
In the technology-driven world where computers are trained to think like humans, mapping and studying human requirements is not a big deal. Market research helps business owners to make business decisions backed by data evidence that mitigates unnecessary risks.
Let us see a few reasons to validate why market research is vital.
Market research is not a one-size-fits-all strategy. It serves a different purpose for different businesses or individuals. Based on the purpose, market research is categorized into two types:
When new information is collected for the first time, it is called primary research. The research is unique and has never been conducted before. Primary research could be quantitative or qualitative, depending on the requirement. It may include open-ended interviews or a survey carried out with a small group of people.
It is a summary and inference made from already conducted research. Information on population, for instance, is secondary research as the details and statistics are already recorded. The sources for secondary research could be public (Government statistics), commercial ( private research agency reports), and internal ( already existing data from the organization).
There are other types of market research which include:
All these types of market research are intended for focused needs. Most of them are conducted by existing businesses to know their market value and understand what their clients expect. Customer satisfaction research and Loyalty research, for instance, are carried out to know if the customers are happy with a particular product or service. This is usually done through online customer feedback and reviews.
Market research is all about asking relevant questions at the right time to stay on top of the consumers’ demands and expectations. Inferences obtained from market research could be used to:
Below are the steps to carry out effective market research:
It is important to define the research objectives like:
This helps in avoiding deviations and staying focused all through the process.
Once the objective is set, we need to prepare a list of questions related to your market, customers, and competitors. Examples for each are provided below.
Data can be collected either quantitatively or qualitatively.
There are other ways of collecting data like:
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This stage of market research involves organizing the collecting information and making an interpretation. Grouping and organizing information based on the research objective will help to make conclusions.
The following steps will help in better data organization:
This is the final part of the market research. Based on the findings, it is now on you to draw conclusions and make a final decision. The conclusions drawn should be in sync with the research objective. It is essential to review and revisit all the findings before concluding. The following is the list of things you should keep in mind before making a decision:
Market research is a lengthy process, and each process needs dedication and deliberation. So, it is going to add up to the stress if you are doing it yourself. Instead, you can go for a paid market research and hand over the job to the professionals.
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