elements of marketing research plan

6.3 Steps in a Successful Marketing Research Plan

Learning outcomes.

By the end of this section, you will be able to:

• 1 Identify and describe the steps in a marketing research plan.
• 2 Discuss the different types of data research.
• 3 Explain how data is analyzed.
• 4 Discuss the importance of effective research reports.

Define the Problem

There are seven steps to a successful marketing research project (see Figure 6.3 ). Each step will be explained as we investigate how a marketing research project is conducted.

The first step, defining the problem, is often a realization that more information is needed in order to make a data-driven decision. Problem definition is the realization that there is an issue that needs to be addressed. An entrepreneur may be interested in opening a small business but must first define the problem that is to be investigated. A marketing research problem in this example is to discover the needs of the community and also to identify a potentially successful business venture.

Many times, researchers define a research question or objectives in this first step. Objectives of this research study could include: identify a new business that would be successful in the community in question, determine the size and composition of a target market for the business venture, and collect any relevant primary and secondary data that would support such a venture. At this point, the definition of the problem may be “Why are cat owners not buying our new cat toy subscription service?”

Additionally, during this first step we would want to investigate our target population for research. This is similar to a target market, as it is the group that comprises the population of interest for the study. In order to have a successful research outcome, the researcher should start with an understanding of the problem in the current situational environment.

Develop the Research Plan

Step two is to develop the research plan. What type of research is necessary to meet the established objectives of the first step? How will this data be collected? Additionally, what is the time frame of the research and budget to consider? If you must have information in the next week, a different plan would be implemented than in a situation where several months were allowed. These are issues that a researcher should address in order to meet the needs identified.

Research is often classified as coming from one of two types of data: primary and secondary. Primary data is unique information that is collected by the specific researcher with the current project in mind. This type of research doesn’t currently exist until it is pulled together for the project. Examples of primary data collection include survey, observation, experiment, or focus group data that is gathered for the current project.

Secondary data is any research that was completed for another purpose but can be used to help inform the research process. Secondary data comes in many forms and includes census data, journal articles, previously collected survey or focus group data of related topics, and compiled company data. Secondary data may be internal, such as the company’s sales records for a previous quarter, or external, such as an industry report of all related product sales. Syndicated data , a type of external secondary data, is available through subscription services and is utilized by many marketers. As you can see in Table 6.1 , primary and secondary data features are often opposite—the positive aspects of primary data are the negative side of secondary data.

There are four research types that can be used: exploratory, descriptive, experimental, and ethnographic research designs (see Figure 6.4 ). Each type has specific formats of data that can be collected. Qualitative research can be shared through words, descriptions, and open-ended comments. Qualitative data gives context but cannot be reduced to a statistic. Qualitative data examples are categorical and include case studies, diary accounts, interviews, focus groups, and open-ended surveys. By comparison, quantitative data is data that can be reduced to number of responses. The number of responses to each answer on a multiple-choice question is quantitative data. Quantitative data is numerical and includes things like age, income, group size, and height.

Exploratory research is usually used when additional general information in desired about a topic. When in the initial steps of a new project, understanding the landscape is essential, so exploratory research helps the researcher to learn more about the general nature of the industry. Exploratory research can be collected through focus groups, interviews, and review of secondary data. When examining an exploratory research design, the best use is when your company hopes to collect data that is generally qualitative in nature. 7

For instance, if a company is considering a new service for registered users but is not quite sure how well the new service will be received or wants to gain clarity of exactly how customers may use a future service, the company can host a focus group. Focus groups and interviews will be examined later in the chapter. The insights collected during the focus group can assist the company when designing the service, help to inform promotional campaign options, and verify that the service is going to be a viable option for the company.

Descriptive research design takes a bigger step into collection of data through primary research complemented by secondary data. Descriptive research helps explain the market situation and define an “opinion, attitude, or behavior” of a group of consumers, employees, or other interested groups. 8 The most common method of deploying a descriptive research design is through the use of a survey. Several types of surveys will be defined later in this chapter. Descriptive data is quantitative in nature, meaning the data can be distilled into a statistic, such as in a table or chart.

Again, descriptive data is helpful in explaining the current situation. In the opening example of LEGO , the company wanted to describe the situation regarding children’s use of its product. In order to gather a large group of opinions, a survey was created. The data that was collected through this survey allowed the company to measure the existing perceptions of parents so that alterations could be made to future plans for the company.

Experimental research , also known as causal research , helps to define a cause-and-effect relationship between two or more factors. This type of research goes beyond a correlation to determine which feature caused the reaction. Researchers generally use some type of experimental design to determine a causal relationship. An example is A/B testing, a situation where one group of research participants, group A, is exposed to one treatment and then compared to the group B participants, who experience a different situation. An example might be showing two different television commercials to a panel of consumers and then measuring the difference in perception of the product. Another example would be to have two separate packaging options available in different markets. This research would answer the question “Does one design sell better than the other?” Comparing that to the sales in each market would be part of a causal research study. 9

The final method of collecting data is through an ethnographic design. Ethnographic research is conducted in the field by watching people interact in their natural environment. For marketing research, ethnographic designs help to identify how a product is used, what actions are included in a selection, or how the consumer interacts with the product. 10

Examples of ethnographic research would be to observe how a consumer uses a particular product, such as baking soda. Although many people buy baking soda, its uses are vast. So are they using it as a refrigerator deodorizer, a toothpaste, to polish a belt buckle, or to use in baking a cake?

Select the Data Collection Method

Data collection is the systematic gathering of information that addresses the identified problem. What is the best method to do that? Picking the right method of collecting data requires that the researcher understand the target population and the design picked in the previous step. There is no perfect method; each method has both advantages and disadvantages, so it’s essential that the researcher understand the target population of the research and the research objectives in order to pick the best option.

Sometimes the data desired is best collected by watching the actions of consumers. For instance, how many cars pass a specific billboard in a day? What website led a potential customer to the company’s website? When are consumers most likely to use the snack vending machines at work? What time of day has the highest traffic on a social media post? What is the most streamed television program this week? Observational research is the collecting of data based on actions taken by those observed. Many data observations do not require the researched individuals to participate in the data collection effort to be highly valuable. Some observation requires an individual to watch and record the activities of the target population through personal observations .

Unobtrusive observation happens when those being observed aren’t aware that they are being watched. An example of an unobtrusive observation would be to watch how shoppers interact with a new stuffed animal display by using a one-way mirror. Marketers can identify which products were handled more often while also determining which were ignored.

Other methods can use technology to collect the data instead. Instances of mechanical observation include the use of vehicle recorders, which count the number of vehicles that pass a specific location. Computers can also assess the number of shoppers who enter a store, the most popular entry point for train station commuters, or the peak time for cars to park in a parking garage.

When you want to get a more in-depth response from research participants, one method is to complete a one-on-one interview . One-on-one interviews allow the researcher to ask specific questions that match the respondent’s unique perspective as well as follow-up questions that piggyback on responses already completed. An interview allows the researcher to have a deeper understanding of the needs of the respondent, which is another strength of this type of data collection. The downside of personal interviews it that a discussion can be very time-consuming and results in only one respondent’s answers. Therefore, in order to get a large sample of respondents, the interview method may not be the most efficient method.

Taking the benefits of an interview and applying them to a small group of people is the design of a focus group . A focus group is a small number of people, usually 8 to 12, who meet the sample requirements. These individuals together are asked a series of questions where they are encouraged to build upon each other’s responses, either by agreeing or disagreeing with the other group members. Focus groups are similar to interviews in that they allow the researcher, through a moderator, to get more detailed information from a small group of potential customers (see Figure 6.5 ).

Link to Learning

Focus groups.

Focus groups are a common method for gathering insights into consumer thinking and habits. Companies will use this information to develop or shift their initiatives. The best way to understand a focus group is to watch a few examples or explanations. TED-Ed has this video that explains how focus groups work.

You might be asking when it is best to use a focus group or a survey. Learn the differences, the pros and cons of each, and the specific types of questions you ask in both situations in this article .

Preparing for a focus group is critical to success. It requires knowing the material and questions while also managing the group of people. Watch this video to learn more about how to prepare for a focus group and the types of things to be aware of.

One of the benefits of a focus group over individual interviews is that synergy can be generated when a participant builds on another’s ideas. Additionally, for the same amount of time, a researcher can hear from multiple respondents instead of just one. 11 Of course, as with every method of data collection, there are downsides to a focus group as well. Focus groups have the potential to be overwhelmed by one or two aggressive personalities, and the format can discourage more reserved individuals from speaking up. Finally, like interviews, the responses in a focus group are qualitative in nature and are difficult to distill into an easy statistic or two.

Combining a variety of questions on one instrument is called a survey or questionnaire . Collecting primary data is commonly done through surveys due to their versatility. A survey allows the researcher to ask the same set of questions of a large group of respondents. Response rates of surveys are calculated by dividing the number of surveys completed by the total number attempted. Surveys are flexible and can collect a variety of quantitative and qualitative data. Questions can include simplified yes or no questions, select all that apply, questions that are on a scale, or a variety of open-ended types of questions. There are four types of surveys (see Table 6.2 ) we will cover, each with strengths and weaknesses defined.

Let’s start off with mailed surveys —surveys that are sent to potential respondents through a mail service. Mailed surveys used to be more commonly used due to the ability to reach every household. In some instances, a mailed survey is still the best way to collect data. For example, every 10 years the United States conducts a census of its population (see Figure 6.6 ). The first step in that data collection is to send every household a survey through the US Postal Service (USPS). The benefit is that respondents can complete and return the survey at their convenience. The downside of mailed surveys are expense and timeliness of responses. A mailed survey requires postage, both when it is sent to the recipient and when it is returned. That, along with the cost of printing, paper, and both sending and return envelopes, adds up quickly. Additionally, physically mailing surveys takes time. One method of reducing cost is to send with bulk-rate postage, but that slows down the delivery of the survey. Also, because of the convenience to the respondent, completed surveys may be returned several weeks after being sent. Finally, some mailed survey data must be manually entered into the analysis software, which can cause delays or issues due to entry errors.

Phone surveys are completed during a phone conversation with the respondent. Although the traditional phone survey requires a data collector to talk with the participant, current technology allows for computer-assisted voice surveys or surveys to be completed by asking the respondent to push a specific button for each potential answer. Phone surveys are time intensive but allow the respondent to ask questions and the surveyor to request additional information or clarification on a question if warranted. Phone surveys require the respondent to complete the survey simultaneously with the collector, which is a limitation as there are restrictions for when phone calls are allowed. According to Telephone Consumer Protection Act , approved by Congress in 1991, no calls can be made prior to 8:00 a.m. or after 9:00 p.m. in the recipient’s time zone. 12 Many restrictions are outlined in this original legislation and have been added to since due to ever-changing technology.

In-person surveys are when the respondent and data collector are physically in the same location. In-person surveys allow the respondent to share specific information, ask questions of the surveyor, and follow up on previous answers. Surveys collected through this method can take place in a variety of ways: through door-to-door collection, in a public location, or at a person’s workplace. Although in-person surveys are time intensive and require more labor to collect data than some other methods, in some cases it’s the best way to collect the required data. In-person surveys conducted through a door-to-door method is the follow-up used for the census if respondents do not complete the mailed survey. One of the downsides of in-person surveys is the reluctance of potential respondents to stop their current activity and answer questions. Furthermore, people may not feel comfortable sharing private or personal information during a face-to-face conversation.

Electronic surveys are sent or collected through digital means and is an opportunity that can be added to any of the above methods as well as some new delivery options. Surveys can be sent through email, and respondents can either reply to the email or open a hyperlink to an online survey (see Figure 6.7 ). Additionally, a letter can be mailed that asks members of the survey sample to log in to a website rather than to return a mailed response. Many marketers now use links, QR codes, or electronic devices to easily connect to a survey. Digitally collected data has the benefit of being less time intensive and is often a more economical way to gather and input responses than more manual methods. A survey that could take months to collect through the mail can be completed within a week through digital means.

Design the Sample

Although you might want to include every possible person who matches your target market in your research, it’s often not a feasible option, nor is it of value. If you did decide to include everyone, you would be completing a census of the population. Getting everyone to participate would be time-consuming and highly expensive, so instead marketers use a sample , whereby a portion of the whole is included in the research. It’s similar to the samples you might receive at the grocery store or ice cream shop; it isn’t a full serving, but it does give you a good taste of what the whole would be like.

So how do you know who should be included in the sample? Researchers identify parameters for their studies, called sample frames . A sample frame for one study may be college students who live on campus; for another study, it may be retired people in Dallas, Texas, or small-business owners who have fewer than 10 employees. The individual entities within the sampling frame would be considered a sampling unit . A sampling unit is each individual respondent that would be considered as matching the sample frame established by the research. If a researcher wants businesses to participate in a study, then businesses would be the sampling unit in that case.

The number of sampling units included in the research is the sample size . Many calculations can be conducted to indicate what the correct size of the sample should be. Issues to consider are the size of the population, the confidence level that the data represents the entire population, the ease of accessing the units in the frame, and the budget allocated for the research.

There are two main categories of samples: probability and nonprobability (see Figure 6.8 ). Probability samples are those in which every member of the sample has an identified likelihood of being selected. Several probability sample methods can be utilized. One probability sampling technique is called a simple random sample , where not only does every person have an identified likelihood of being selected to be in the sample, but every person also has an equal chance of exclusion. An example of a simple random sample would be to put the names of all members of a group into a hat and simply draw out a specific number to be included. You could say a raffle would be a good example of a simple random sample.

Another probability sample type is a stratified random sample , where the population is divided into groups by category and then a random sample of each category is selected to participate. For instance, if you were conducting a study of college students from your school and wanted to make sure you had all grade levels included, you might take the names of all students and split them into different groups by grade level—freshman, sophomore, junior, and senior. Then, from those categories, you would draw names out of each of the pools, or strata.

A nonprobability sample is a situation in which each potential member of the sample has an unknown likelihood of being selected in the sample. Research findings that are from a nonprobability sample cannot be applied beyond the sample. Several examples of nonprobability sampling are available to researchers and include two that we will look at more closely: convenience sampling and judgment sampling.

The first nonprobability sampling technique is a convenience sample . Just like it sounds, a convenience sample is when the researcher finds a group through a nonscientific method by picking potential research participants in a convenient manner. An example might be to ask other students in a class you are taking to complete a survey that you are doing for a class assignment or passing out surveys at a basketball game or theater performance.

A judgment sample is a type of nonprobability sample that allows the researcher to determine if they believe the individual meets the criteria set for the sample frame to complete the research. For instance, you may be interested in researching mothers, so you sit outside a toy store and ask an individual who is carrying a baby to participate.

Collect the Data

Now that all the plans have been established, the instrument has been created, and the group of participants has been identified, it is time to start collecting data. As explained earlier in this chapter, data collection is the process of gathering information from a variety of sources that will satisfy the research objectives defined in step one. Data collection can be as simple as sending out an email with a survey link enclosed or as complex as an experiment with hundreds of consumers. The method of collection directly influences the length of this process. Conducting personal interviews or completing an experiment, as previously mentioned, can add weeks or months to the research process, whereas sending out an electronic survey may allow a researcher to collect the necessary data in a few days. 13

Analyze and Interpret the Data

Once the data has been collected, the process of analyzing it may begin. Data analysis is the distillation of the information into a more understandable and actionable format. The analysis itself can take many forms, from the use of basic statistics to a more comprehensive data visualization process. First, let’s discuss some basic statistics that can be used to represent data.

The first is the mean of quantitative data. A mean is often defined as the arithmetic average of values. The formula is:

A common use of the mean calculation is with exam scores. Say, for example, you have earned the following scores on your marketing exams: 72, 85, 68, and 77. To find the mean, you would add up the four scores for a total of 302. Then, in order to generate a mean, that number needs to be divided by the number of exam scores included, which is 4. The mean would be 302 divided by 4, for a mean test score of 75.5. Understanding the mean can help to determine, with one number, the weight of a particular value.

Another commonly used statistic is median. The median is often referred to as the middle number. To generate a median, all the numeric answers are placed in order, and the middle number is the median. Median is a common statistic when identifying the income level of a specific geographic region. 14 For instance, the median household income for Albuquerque, New Mexico, between 2015 and 2019 was $52,911. 15 In this case, there are just as many people with an income above the amount as there are below.

Mode is another statistic that is used to represent data of all types, as it can be used with quantitative or qualitative data and represents the most frequent answer. Eye color, hair color, and vehicle color can all be presented with a mode statistic. Additionally, some researchers expand on the concept of mode and present the frequency of all responses, not just identifying the most common response. Data such as this can easily be presented in a frequency graph, 16 such as the one in Figure 6.9 .

Additionally, researchers use other analyses to represent the data rather than to present the entirety of each response. For example, maybe the relationship between two values is important to understand. In this case, the researcher may share the data as a cross tabulation (see Figure 6.10 ). Below is the same data as above regarding social media use cross tabulated with gender—as you can see, the data is more descriptive when you can distinguish between the gender identifiers and how much time is spent per day on social media.

Not all data can be presented in a graphical format due to the nature of the information. Sometimes with qualitative methods of data collection, the responses cannot be distilled into a simple statistic or graph. In that case, the use of quotations, otherwise known as verbatims , can be used. These are direct statements presented by the respondents. Often you will see a verbatim statement when reading a movie or book review. The critic’s statements are used in part or in whole to represent their feelings about the newly released item.

Infographics

As they say, a picture is worth a thousand words. For this reason, research results are often shown in a graphical format in which data can be taken in quickly, called an infographic .

Check out this infographic on what components make for a good infographic. As you can see, a good infographic needs four components: data, design, a story, and the ability to share it with others. Without all four pieces, it is not as valuable a resource as it could be. The ultimate infographic is represented as the intersection of all four.

Infographics are particularly advantageous online. Refer to this infographic on why they are beneficial to use online .

Prepare the Research Report

The marketing research process concludes by sharing the generated data and makes recommendations for future actions. What starts as simple data must be interpreted into an analysis. All information gathered should be conveyed in order to make decisions for future marketing actions. One item that is often part of the final step is to discuss areas that may have been missed with the current project or any area of further study identified while completing it. Without the final step of the marketing research project, the first six steps are without value. It is only after the information is shared, through a formal presentation or report, that those recommendations can be implemented and improvements made. The first six steps are used to generate information, while the last is to initiate action. During this last step is also when an evaluation of the process is conducted. If this research were to be completed again, how would we do it differently? Did the right questions get answered with the survey questions posed to the respondents? Follow-up on some of these key questions can lead to additional research, a different study, or further analysis of data collected.

Methods of Quantifying Marketing Research

One of the ways of sharing information gained through marketing research is to quantify the research . Quantifying the research means to take a variety of data and compile into a quantity that is more easily understood. This is a simple process if you want to know how many people attended a basketball game, but if you want to quantify the number of students who made a positive comment on a questionnaire, it can be a little more complicated. Researchers have a variety of methods to collect and then share these different scores. Below are some of the most common types used in business.

Is a customer aware of a product, brand, or company? What is meant by awareness? Awareness in the context of marketing research is when a consumer is familiar with the product, brand, or company. It does not assume that the consumer has tried the product or has purchased it. Consumers are just aware. That is a measure that many businesses find valuable. There are several ways to measure awareness. For instance, the first type of awareness is unaided awareness . This type of awareness is when no prompts for a product, brand, or company are given. If you were collecting information on fast-food restaurants, you might ask a respondent to list all the fast-food restaurants that serve a chicken sandwich. Aided awareness would be providing a list of products, brands, or companies and the respondent selects from the list. For instance, if you give a respondent a list of fast-food restaurants and ask them to mark all the locations with a chicken sandwich, you are collecting data through an aided method. Collecting these answers helps a company determine how the business location compares to those of its competitors. 17

Customer Satisfaction (CSAT)

Have you ever been asked to complete a survey at the end of a purchase? Many businesses complete research on buying, returning, or other customer service processes. A customer satisfaction score , also known as CSAT, is a measure of how satisfied customers are with the product, brand, or service. A CSAT score is usually on a scale of 0 to 100 percent. 18 But what constitutes a “good” CSAT score? Although what is identified as good can vary by industry, normally anything in the range from 75 to 85 would be considered good. Of course, a number higher than 85 would be considered exceptional. 19

Customer Acquisition Cost (CAC) and Customer Effort Score (CES)

Other metrics often used are a customer acquisition cost (CAC) and customer effort score (CES). How much does it cost a company to gain customers? That’s the purpose of calculating the customer acquisition cost. To calculate the customer acquisition cost , a company would need to total all expenses that were accrued to gain new customers. This would include any advertising, public relations, social media postings, etc. When a total cost is determined, it is divided by the number of new customers gained through this campaign.

The final score to discuss is the customer effort score , also known as a CES. The CES is a “survey used to measure the ease of service experience with an organization.” 20 Companies that are easy to work with have a better CES than a company that is notorious for being difficult. An example would be to ask a consumer about the ease of making a purchase online by incorporating a one-question survey after a purchase is confirmed. If a number of responses come back negative or slightly negative, the company will realize that it needs to investigate and develop a more user-friendly process.

Knowledge Check

It’s time to check your knowledge on the concepts presented in this section. Refer to the Answer Key at the end of the book for feedback.

• Defining the problem
• Developing the research plan
• Selecting a data collection method
• Designing the sample
• you are able to send it to all households in an area
• it is inexpensive
• responses are automatically loaded into the software
• the data comes in quickly
• Primary data
• Secondary data
• Secondary and primary data
• Professional data
• It shows how respondents answered two variables in relation to each other and can help determine patterns by different groups of respondents.
• By presenting the data in the form of a picture, the information is easier for the reader to understand.
• It is an easy way to see how often one answer is selected by the respondents.
• This analysis can used to present interview or focus group data.

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Access for free at https://openstax.org/books/principles-marketing/pages/1-unit-introduction

• Authors: Dr. Maria Gomez Albrecht, Dr. Mark Green, Linda Hoffman
• Publisher/website: OpenStax
• Book title: Principles of Marketing
• Publication date: Jan 25, 2023
• Location: Houston, Texas
• Book URL: https://openstax.org/books/principles-marketing/pages/1-unit-introduction
• Section URL: https://openstax.org/books/principles-marketing/pages/6-3-steps-in-a-successful-marketing-research-plan

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Market research is a cornerstone of all successful, strategic businesses. It can also be daunting for entrepreneurs looking to launch a startup or start a side hustle . What is market research, anyway? And how do you…do it?

We’ll walk you through absolutely everything you need to know about the market research process so that by the end of this guide, you’ll be an expert in market research too. And what’s more important: you’ll have actionable steps you can take to start collecting your own market research.

What Is Market Research?

Market research is the organized process of gathering information about your target customers and market. Market research can help you better understand customer behavior and competitor strengths and weaknesses, as well as provide insight for the best strategies in launching new businesses and products. There are different ways to approach market research, including primary and secondary research and qualitative and quantitative research. The strongest approaches will include a combination of all four.

“Virtually every business can benefit from conducting some market research,” says Niles Koenigsberg of Real FiG Advertising + Marketing . “Market research can help you piece together your [business’s] strengths and weaknesses, along with your prospective opportunities, so that you can understand where your unique differentiators may lie.” Well-honed market research will help your brand stand out from the competition and help you see what you need to do to lead the market. It can also do so much more.

The Purposes of Market Research

Why do market research? It can help you…

• Pinpoint your target market, create buyer personas, and develop a more holistic understanding of your customer base and market.
• Understand current market conditions to evaluate risks and anticipate how your product or service will perform.
• Validate a concept prior to launch.
• Identify gaps in the market that your competitors have created or overlooked.
• Solve problems that have been left unresolved by the existing product/brand offerings.
• Identify opportunities and solutions for new products or services.
• Develop killer marketing strategies .

What Are the Benefits of Market Research?

Strong market research can help your business in many ways. It can…

• Strengthen your market position.
• Help you identify your strengths and weaknesses.
• Help you identify your competitors’ strengths and weaknesses.
• Minimize risk.
• Center your customers’ experience from the get-go.
• Help you create a dynamic strategy based on market conditions and customer needs/demands.

What Are the Basic Methods of Market Research?

The basic methods of market research include surveys, personal interviews, customer observation, and the review of secondary research. In addition to these basic methods, a forward-thinking market research approach incorporates data from the digital landscape like social media analysis, SEO research, gathering feedback via forums, and more. Throughout this guide, we will cover each of the methods commonly used in market research to give you a comprehensive overview.

Primary vs. Secondary Market Research

Primary and secondary are the two main types of market research you can do. The latter relies on research conducted by others. Primary research, on the other hand, refers to the fact-finding efforts you conduct on your own.

This approach is limited, however. It’s likely that the research objectives of these secondary data points differ from your own, and it can be difficult to confirm the veracity of their findings.

Primary Market Research

Primary research is more labor intensive, but it generally yields data that is exponentially more actionable. It can be conducted through interviews, surveys, online research, and your own data collection. Every new business should engage in primary market research prior to launch. It will help you validate that your idea has traction, and it will give you the information you need to help minimize financial risk.

You can hire an agency to conduct this research on your behalf. This brings the benefit of expertise, as you’ll likely work with a market research analyst. The downside is that hiring an agency can be expensive—too expensive for many burgeoning entrepreneurs. That brings us to the second approach. You can also do the market research yourself, which substantially reduces the financial burden of starting a new business .

Secondary Market Research

Secondary research includes resources like government databases and industry-specific data and publications. It can be beneficial to start your market research with secondary sources because it’s widely available and often free-to-access. This information will help you gain a broad overview of the market conditions for your new business.

Identify Your Goals and Your Audience

Before you begin conducting interviews or sending out surveys, you need to set your market research goals. At the end of your market research process, you want to have a clear idea of who your target market is—including demographic information like age, gender, and where they live—but you also want to start with a rough idea of who your audience might be and what you’re trying to achieve with market research.

You can pinpoint your objectives by asking yourself a series of guiding questions:

• What are you hoping to discover through your research?
• Who are you hoping to serve better because of your findings?
• What do you think your market is?
• Who are your competitors?
• Are you testing the reception of a new product category or do you want to see if your product or service solves the problem left by a current gap in the market?
• Are you just…testing the waters to get a sense of how people would react to a new brand?

Once you’ve narrowed down the “what” of your market research goals, you’re ready to move onto how you can best achieve them. Think of it like algebra. Many math problems start with “solve for x.” Once you know what you’re looking for, you can get to work trying to find it. It’s a heck of a lot easier to solve a problem when you know you’re looking for “x” than if you were to say “I’m gonna throw some numbers out there and see if I find a variable.”

How to Do Market Research

This guide outlines every component of a comprehensive market research effort. Take into consideration the goals you have established for your market research, as they will influence which of these elements you’ll want to include in your market research strategy.

Secondary Data

Secondary data allows you to utilize pre-existing data to garner a sense of market conditions and opportunities. You can rely on published market studies, white papers, and public competitive information to start your market research journey.

Secondary data, while useful, is limited and cannot substitute your own primary data. It’s best used for quantitative data that can provide background to your more specific inquiries.

Find Your Customers Online

Once you’ve identified your target market, you can use online gathering spaces and forums to gain insights and give yourself a competitive advantage. Rebecca McCusker of The Creative Content Shop recommends internet recon as a vital tool for gaining a sense of customer needs and sentiment. “Read their posts and comments on forums, YouTube video comments, Facebook group [comments], and even Amazon/Goodreads book comments to get in their heads and see what people are saying.”

If you’re interested in engaging with your target demographic online, there are some general rules you should follow. First, secure the consent of any group moderators to ensure that you are acting within the group guidelines. Failure to do so could result in your eviction from the group.

Not all comments have the same research value. “Focus on the comments and posts with the most comments and highest engagement,” says McCusker. These high-engagement posts can give you a sense of what is already connecting and gaining traction within the group.

Social media can also be a great avenue for finding interview subjects. “LinkedIn is very useful if your [target customer] has a very specific job or works in a very specific industry or sector. It’s amazing the amount of people that will be willing to help,” explains Miguel González, a marketing executive at Dealers League . “My advice here is BE BRAVE, go to LinkedIn, or even to people you know and ask them, do quick interviews and ask real people that belong to that market and segment and get your buyer persona information first hand.”

Market research interviews can provide direct feedback on your brand, product, or service and give you a better understanding of consumer pain points and interests.

When organizing your market research interviews, you want to pay special attention to the sample group you’re selecting, as it will directly impact the information you receive. According to Tanya Zhang, the co-founder of Nimble Made , you want to first determine whether you want to choose a representative sample—for example, interviewing people who match each of the buyer persona/customer profiles you’ve developed—or a random sample.

“A sampling of your usual persona styles, for example, can validate details that you’ve already established about your product, while a random sampling may [help you] discover a new way people may use your product,” Zhang says.

Market Surveys

Market surveys solicit customer inclinations regarding your potential product or service through a series of open-ended questions. This direct outreach to your target audience can provide information on your customers’ preferences, attitudes, buying potential, and more.

Every expert we asked voiced unanimous support for market surveys as a powerful tool for market research. With the advent of various survey tools with accessible pricing—or free use—it’s never been easier to assemble, disseminate, and gather market surveys. While it should also be noted that surveys shouldn’t replace customer interviews , they can be used to supplement customer interviews to give you feedback from a broader audience.

Who to Include in Market Surveys

• Current customers
• Past customers
• Your existing audience (such as social media/newsletter audiences)

Example Questions to Include in Market Surveys

While the exact questions will vary for each business, here are some common, helpful questions that you may want to consider for your market survey. Demographic Questions: the questions that help you understand, demographically, who your target customers are:

• “What is your age?”
• “Where do you live?”
• “What is your gender identity?”
• “What is your household income?”
• “What is your household size?”
• “What do you do for a living?”
• “What is your highest level of education?”

Product-Based Questions: Whether you’re seeking feedback for an existing brand or an entirely new one, these questions will help you get a sense of how people feel about your business, product, or service:

• “How well does/would our product/service meet your needs?”
• “How does our product/service compare to similar products/services that you use?”
• “How long have you been a customer?” or “What is the likelihood that you would be a customer of our brand?

Personal/Informative Questions: the deeper questions that help you understand how your audience thinks and what they care about.

• “What are your biggest challenges?”
• “What’s most important to you?”
• “What do you do for fun (hobbies, interests, activities)?”
• “Where do you seek new information when researching a new product?”
• “How do you like to make purchases?”
• “What is your preferred method for interacting with a brand?”

Survey Tools

Online survey tools make it easy to distribute surveys and collect responses. The best part is that there are many free tools available. If you’re making your own online survey, you may want to consider SurveyMonkey, Typeform, Google Forms, or Zoho Survey.

Competitive Analysis

A competitive analysis is a breakdown of how your business stacks up against the competition. There are many different ways to conduct this analysis. One of the most popular methods is a SWOT analysis, which stands for “strengths, weaknesses, opportunities, and threats.” This type of analysis is helpful because it gives you a more robust understanding of why a customer might choose a competitor over your business. Seeing how you stack up against the competition can give you the direction you need to carve out your place as a market leader.

Social Media Analysis

Social media has fundamentally changed the market research landscape, making it easier than ever to engage with a wide swath of consumers. Follow your current or potential competitors on social media to see what they’re posting and how their audience is engaging with it. Social media can also give you a lower cost opportunity for testing different messaging and brand positioning.

SEO Analysis and Opportunities

SEO analysis can help you identify the digital competition for getting the word out about your brand, product, or service. You won’t want to overlook this valuable information. Search listening tools offer a novel approach to understanding the market and generating the content strategy that will drive business. Tools like Google Trends and Awario can streamline this process.

Ready to Kick Your Business Into High Gear?

Now that you’ve completed the guide to market research you know you’re ready to put on your researcher hat to give your business the best start. Still not sure how actually… launch the thing? Our free mini-course can run you through the essentials for starting your side hustle .

About Mary Kate Miller

Mary Kate Miller writes about small business, real estate, and finance. In addition to writing for Foundr, her work has been published by The Washington Post, Teen Vogue, Bustle, and more. She lives in Chicago.

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How to Write a Market Research Plan (+ Free Template)

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A market research plan, similar to a brief, is a vital document that details important information about your market research project. Though it is often an overlooked step of the market research process , an effective plan is often a critical factor in determining whether or not your market research efforts are successful.

Why? Because a well-thought through plan, more so than objectives alone, can be a vital instrument in focusing your investment. It ensures you know, ahead of the commencement date, the timeline, budget and desired outcomes from the project. It can even be used as a tool for receiving quicker sign-off from management when embarking on a new venture.

But it’s also important to remember that the research plan is not just for your team. To make full use of this document, it should be written in a way that can be distributed to agency partners as well – ensuring that your insight team and specialist partners are all working towards the same goal.

Tips for Crafting a Successful Plan

The first rule of writing a successful market research plan is to keep it short. The perfect length is between 1-2 pages, but as an absolute maximum try to ensure that it never exceeds 3. This will give you enough space to explain the background, scope and practicalities of the project while ensuring it is concise enough to be read in full. Throughout these few short pages, the tone of your plan should be informative. Remember that you are outlining information that you already know.

Write in a way that holistically encompasses all aspects of the project. Throughout the duration of your scripting, data collection, analysis and reporting stages of your project you should always be referring back to this document in order to remain focused. As any researcher knows, one of the biggest challenges in any research project is staying true to your original objectives.

With both exploratory and confirmatory research alike, new information is likely to arise which may spark other ideas or bring light to previously unknown issues. Remember these, but set them aside for further investigation at a later date. Travelling too far down the rabbit hole is the quickest way to overspend and under deliver on your original goal.

The 10 Elements of the Best Research Plans

First, let me preface this with a reminder: every project is different. A long term co-creation community will have different needs and requirements to a customer feedback survey or ad testing project. However, despite this – it is important to give equal consideration to all projects, and plan each with the same high degree of meticulous care. With this in mind, these are the 10 key aspects we recommend that all research plans should include:

1. Overview

Use this first section to outline the background to the problem that you are attempting to solve. Include background information on the business to provide context, as well as the circumstances that have led to the need for research. Overviews should be limited to 200 words at most, with most of the word count dedicated to the business circumstances & challenges surrounding the research.

2. Objectives

Arguably the most important aspect of the entire document, objectives should be in bullet point format. List 3-5 of the decisions or initiatives that the research will inform – this will become the remit of the project. Below are a few examples of both well and poorly written objectives:

Well written research objectives:

• Understand the channels in which our customers are most comfortable shopping, in order to decide which should be prioritised in the 2017 Q1 budget
• Develop an active co-creation community that contributes 2 user-generated product improvements for testing to the R & D team per month
• Learn what is leading to an increase in customer churn so that a new retention strategy can be put in place within 12 weeks

Poorly written research objectives:

• Survey 1,000 potential customers to find out how our products can be improved
• Develop a panel of employees that are able to provide answers to research questions on an ad-hoc basis
• Learn how our company is perceived in comparison to competitors and how we can stand out in the marketplace

3. Deliverable outcomes

This section acts as a list what you expect to be produced at the end of the project. This can include, but is not limited to: a target number of responses you expect to receive, descriptions of how the data should be presented and the extent to which the data will be used to inform future decisions. In long term projects such as panels or communities, this may include a target for the amount of decisions that research is expected to inform and/or a pipeline for new ideas in exploratory studies.

4. Target audience

Different to sample, your target audience describes the population that you wish to research. This can be defined by a number of factors depending on the nature of your project. Some of the most common include: demographics, psychographics, life stages and company/ product interaction.

5. Sample plan

The sample plan should be used to indicate the amount of participants you wish to research, as well as a breakdown of each group. This will be affected by the choice to use qualitative, quantitative or multi-method approaches, as well as the estimated size of the target population.

6. Research Methods

List the different research methods that you plan to use in your project. This will be used by your team and agency partners to ensure that the insight you need comes from the most appropriate tools. Be sure to include any non-traditional methods you plan to use as well – it’s important that your team are aware of how data will be captured, even if it is being gathered by an experimental technique.

7. Timeline

These usually take the form of a Gantt chart, but can vary depending on the scope and length of your project. Try to break down tasks as much as possible but be wary of dependencies within your chart. Be sure to schedule enough time in case some research tasks over-run or response rates are lower than expected.

Perhaps the most dreaded aspect of any research plan, budgeting is never easy. But by providing a breakdown of costs and outlining which elements of the project require most investment, a well-planned budget can be a benefit rather than a hurdle.

9 & 10. Ethical and Further considerations

Finally, you should outline any ethical/ other considerations or issues that may arise throughout the course of your project. Whether these are as simple as a conflict of interest or a concern about supplier relationships – this is your chance to address any problems that may arise before they do.

Free Market Research Plan Template

Use this link to download our   free market research plan template . The template comes complete with each of the sections outlined above, with instructions on usage and tips on how to make the most out of it. Currently available in .docx format, please email   [email protected]  if you have any problems with the download.

What do you believe should be included in a successful market research plan? Share your advice with us in the comments below and join the conversation.

About FlexMR

We are The Insights Empowerment Company. We help research, product and marketing teams drive informed decisions with efficient, scalable & impactful insight.

About Chris Martin

Chris is an experienced executive and marketing strategist in the insight and technology sectors. He also hosts our MRX Lab podcast.

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How to Do Market Research: The Complete Guide

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

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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.

What is market research?

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

Why is market research important? 

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

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

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

Types of market research 

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

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

1. Qualitative research

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

2. Quantitative research

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

3. Exploratory research

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

4. Descriptive research

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

5. Causal research

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

6. Cross-sectional research

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

7. Longitudinal research

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

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

Primary vs. secondary market research

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

Primary market research 

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

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

Secondary market research 

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

Here are the main characteristics of secondary market research:

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

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

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

Market research methods

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

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

1. Surveys and questionnaires

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

2. Interviews

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

3. Focus groups

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

4. Observational research

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

5. Online research tools

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

6. Experiments

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

7. Content analysis

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

8. Ethnographic research

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

How to do market research

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

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

1. Set clear objectives

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

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

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

2. Identify your target audience

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

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

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

3. Choose your research methods

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

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

4. Use the right market research tools

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

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

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

5. Collect data

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

6. Analyze data

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

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

7. Interpret your findings

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

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

8. Identify opportunities and challenges

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

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

9. Make informed business decisions

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

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

10. Monitor and adapt

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

Online market research sources

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

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

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

Market research examples

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

Example 1: Apple’s iPhone launch

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

Example 2: McDonald’s global expansion

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

Example 3: Organic and sustainable farming

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

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

Market research templates

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

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

Strengthen your business with market research

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

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

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

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4 key elements of the market research.

• Market Research • Research
• Tuesday May 31, 2022

Market research can reveal the intention of your customers, and behavior. Figuring these things out can guide you to such decisions that can be profit-making. This blog throws light on what market research is, its significant purpose, and the components of market research.

Let’s get through the purpose, first to understand what it is.

What Is a Market Research & What are Its Examples?

Market research refers to practicing systematic collection, recording, and getting deep with the collected data to figure out business-related problems. Mainly, these challenges are connected with market and marketing research. When it comes to discovering challenges with a marketplace, it covers all related details & elements of market research like products, price, promotion, and distribution of the 4Ps (Product, Price, People, and Promotion) of the marketing mix.  

For marketing research, finding feasible and economical solutions for promoting products, brands, or companies is the primary concern. It can be anything from simple surveys to action, decision, and problem-specific research.  This is a very controlled process, wherein the researcher collects non-routine marketing problem-based insights using data mining techniques. These details cover all elements of marketing research that directly impact the marketing of products and services. Multiple examples are there conveying the excellence of market research. We have Starbucks, Apple, McDonald’s & LEGO as live examples of these researches.

Four Key Elements of Market Research

• Discovering What Actually You Want to Achieve

Every brand searches for recognition and leadership in the niche. These are the foremost priorities of any business. But, the element of a market research report includes any of the aforementioned factors, which may lead to drilling limitless possibilities for growth and maximizing revenues.

There is always an opportunity when you have a clear goal. IKEA, for example, is a popular brand that has been famous for selling innovative furniture. Although, it has integrated an augmented reality application to let users exactly discover how a round table, chair, or a best would look like in the real environment.

But, its researchers were aware of the fan-following of the senator Bernie Sanders. The snapshot wherein he appeared sitting comfortably on the chic and sleek IKEA chair became a discovery to attract opportunities.

The researchers drew this snapshot from the memories of the brand. They discovered the fame of the senator and connected perfectly with the image wherein he was on the brand-made chair. It became a viral meme and this moment attracted opportunities to sell more and more. The brand knew that it wants recognition from a powerful personality because its products’ quality is incredible. And, the senator’s image brought it up.  

• Listen to What Your Customers Say

A customer never accepts a brand that ignores his pain point. He reaches out to a company to find solutions. This is why Google itself has given priority to product reviews as a ranking factor for eCommerce companies, which are actually the voice of customers. 

Overlooking their requirement can cause an irreparable loss, as this element of market research states. So, avoid this practice. Market research can help in this regard. You can actually understand the likelihood of prospective customers. 

Tide, a famous washing detergent brand, leveraged the fact that customers struggle with the dripping or fading color of their beautiful and luxurious dresses. So, it came with a tweet, which had two dresses, one in blue & black and the other one is white with a tagline-“Looks like a problem when you don’t use Tide Plus Colorguard ”. This tweet became a rage over the internet.

So, you can rely on online surveys, focus groups, tweets, adverts, and observations also to discover the voice of your customer. Listening to them can pay you out with maximum profit and loyalty of customers. 

• Find out the Source

For finding insights, you need to collect samples and niche-based data. This is one of the parts of marketing research . No matter how you have collected it, you must be aware of the source. This element of market research says that it should be authentic and reliable. Customers are smarter these days. They check out reviews and feedback before making a buying decision.

Heineken, for example, is famous for its ability to discover what people rely on. It thoroughly researched and found that the Netflix show “Squid Game” can be a marketing pick. So, it did smartly use this series’ popularity on Instagram, where it smartly put a quote below its picture –Liked by Aj-Jackson and others.

It found the source to rely upon and immediately converted it into an opportunity. 

• Recognize What You’re Doing

Figuring out a solution can never be a success unless you know where you’re going. Otherwise, you can pay out needless resources, which can cost you a hefty loss. You need valid reasons to choose a platform for walking on. If it’s proven, your decision can easily prove a big win. So, always ask the right question to get an accurate reply. Doing this is related to the elements of the market survey.  

When Pepsi once came out with its Halloween campaign suggesting that dressing as a Coca-Cola can be a scary costume, Coca-Cola recognized that this negative campaigning can be answered with research. Its research team brainstormed and came out with a decision to display the same graphic with the name of its business rival. This counter advert proved advantageous for these brands.

What is the Purpose of Market Research?

This research is actually a discovery, which is based on a thorough study of product planning and development, pricing, distribution, market competition, the effectiveness of marketing strategies & practices like advertisement and personal selling, and understanding buyer behavior in the marketplace.  

So, the whole-sole purpose of this knowledge discovery is to offer feasible alternative solutions. These solutions, as aforementioned, can be related to marketing, branding, efficiency, or productivity problems. In all, this research covers products, services, and consumers.   These all have a great role in analyzing and predicting the market trend by focusing on all key elements of market research in a report.

Starbucks, for instance, discovers insights on cultural trends, social media, customer feedback, and in-store product testing. The insights driven from these verticals help this coffeehouse chain to sustain the challenge and lead towards leadership, which it is actually doing. 

Elements of Market Research Survey

These all components are a part of a market research survey.

• Market size
• Sales analysis
• Geographic location
• Market segmentation
• Demographic description
• Analysis of market demand
• Competition in the market
• Consumer insights & requirements

Elements of Marketing Research

These all are included in the key elements of a marketing research report.

• Product research
• Distribution research
• Advertising and promotion research
• Sales research, covering methods and policies

Market research is all about discovering insights into the market and marketing elements. It covers all factors impacting both like consumer analysis, sales analysis, and more. Its four elements shape the whole research, which is to discover the goal, listen to customers’ voices, rely on valid sources, and recognize the steps of what you do.  

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Market research templates: what they are and how to use them.

18 min read Interested in market research but need some templates to start with? In this guide, we unpack market research, survey planning best practice and share some of our best templates for brand, customer, product and employee research.

What is a market research template?

While you’re no doubt familiar with the concept of market research and how it can help you to reach your target audiences and improve your product or service , the real challenge is designing a market research plan that is conducive to excellent results.

All of this starts with the right market research template(s) to help you analyze specific target audiences, collect the right data and uncover insights that can drive actionable change.

In this article, we’re going to:

• talk about market research and its use cases,
• provide you with a standard template that allows you to plan your research,
• and share several other templates to help you with specific types of market research

You can also check out our free template library.

But first, let’s revisit market research.

What is market research?

Market research is the process of determining the viability of a new service or product through surveys and questionnaires with prospects and/or customers. It involves gathering information about market needs and prospect/customer preferences .

Through market research, you can discover and/or refine your target market, get opinions and feedback on what you provide to them and uncover further prospect/customer pain points and expectations of your service or product .

Market research can be conducted in-house, either by you and your research team, or through a third-party company that specializes in it (they will typically have their own research panels or be capable of creating a research panel to suit your requirements).

The four common types of market research

There are lots of different ways to conduct market research to collect customer data and feedback , test product concepts , and do brand research, but the four most common are:

The most commonly used form of market research, surveys are a form of qualitative research that asks respondents a series of open or closed-ended questions , delivered either as an on-screen questionnaire or email.

Surveys are incredibly popular because they’re cheap, easy to produce, and can capture data very quickly, leading to faster insights.

2) Focus groups

Why not bring together a carefully selected group of people in your target market using focus groups? Though more expensive and complex than surveys and interviews, focus groups can offer deeper insight into prospect and customer behavior – from how users experience your products and services to what marketing messages really resonate with them.

Of course, as a market research method that’s reliant on a moderator to steer conversation, it can be subject to bias (as different moderators might have preferred questions or be more forceful) and if you cut corners (not asking all the necessary questions or making assumptions based on responses), the data could get skewed.

3) Observation

As if you were a fly-on-the-wall, the observation market research method can be incredibly powerful. Rather than interviewing or surveying users, you simply take notes while someone from your target market/target audience engages with your product . How are they using it? What are they struggling with? Do they look as though they have concerns?

Observing your target audience/target market in this fashion is a great alternative to the other more traditional methods on this list. It’s less expensive and far more natural as it isn’t guided by a moderator or a predefined set of questions. The only issue is that you can’t get feedback directly from the mouth of the user, so it’s worth combining this type of research with interviews, surveys, and/or focus groups.

4) Interviews

Interviews allow for face-to-face discussions (both in-person and virtually), allowing for more natural conversations with participants.

For gleaning deeper insights (especially with non-verbal cues giving greater weight to opinions), there’s nothing better than face-to-face interviews. Any kind of interview will provide excellent information, helping you to better understand your prospects and target audience/target market.

Use cases for market research

When you want to understand your prospects and/or customers, but have no existing data to set a benchmark – or want to improve your products and services quickly – market research is often the go-to.

Market research (as mentioned above), helps you to discover how prospects and customers feel about your products and services, as well as what they would like to see .

But there are more use cases and benefits to market research than the above.

Reduce risk of product and business failure

With any new venture, there’s no guarantee that the new idea will be successful. As such, it’s up to you to establish the market’s appetite for your product or service. The easiest way to do this is through market research – you can understand the challenges prospects face and quickly identify where you can help. With the data from your market survey, you can then create a solution that addresses the needs and expectations of would-be customers.

Forecast future trends

Market research doesn’t just help you to understand the current market – it also helps you to forecast future needs. As you conduct your research and analyze the findings, you can identify trends – for example, how brands and businesses are adopting new technology to improve customer experiences or how sustainability is becoming a core focus for packaging. Whatever it is you’re looking to understand about the future of business in your market, comprehensive market research can help you to identify it.

Stay ahead of the competition

Understanding your market and what prospects and customers want from you will help to keep you ahead of the competition . The fact is that the top businesses frequently invest in market research to get an edge, and those that don’t tap into the insights of their audience are missing low-hanging fruit.

As well as helping you to stay in front, you can also use market research to identify gaps in the market, e.g. your competitors’ strengths and weaknesses . Just have participants answer questions about competitor products/services – or even use the products/services – and work out how you can refine your offerings to address these issues.

Plan more strategically

What’s the foundation of your business strategy? If it’s based on evidence, e.g. what people expect of your products and services, it’ll be much easier to deliver something that works. Rather than making assumptions about what you should do, market research gives you a clear, concrete understanding of what people want to see.

Check out our guide to market research for a more comprehensive breakdown.

How do you write a market research plan/template?

A market research plan is very similar to a brief in that it documents the most vital information and steps about your project. Consider it a blueprint that outlines your main objective (summary), key questions and outcomes, target audience and size, your timeline, budget, and other key variables.

Let’s talk about them in more detail.

Elements of a great market research plan

1) overview or summary.

Use the first section of your market research plan to outline the background to the problem that you are attempting to solve (this is usually your problem statement or problem question). Include background information on the study’s purpose and the business to provide context to those who would read the report, as well as the need for the research. Keep the overview simple and concise; focus on the most salient elements.

2) Objectives

What is it that you hope to achieve with this survey? Your objectives are the most important part of the survey. Make sure to list 3-5 of the decisions or initiatives that the research will influence.

For example:

Understand the most-used channels for customer engagement and purchasing to decide where to prioritize marketing and sales budget in Q1 2022. Determine what’s causing customer churn at the later stages of the buyer journey and implement a new retention and sales strategy to address it.

Your objectives should be smart, that is: Specific, Measurable, Attainable, Relevant, and Timely.

3) Deliverables (or outcomes)

This section should focus on what you expect to have at the end of the project. How many responses are you looking for? How will the data be presented? Who will the data be shared with? (Stakeholders, executives) What are your next steps? Make sure you state how you will collect and analyze the data once it’s available.

Products such as Qualtrics CoreXM make this process fast and incredibly easy to do, drastically reducing the time to insights so you can make more meaningful changes, faster.

4) Target audience

Not to be confused with your market research sample, your target audience represents who you want to research. Of course, your sample may include ideal buyers from your target audience. Here you want to define the main variables or factors of your audience: demographic , age, location , product interaction, experience, and so on. It’s worth building out your buyer personas (if you haven’t already) and including a quick breakdown of them here.

5) Sample plan

How many participants do you want to research and what kind of groups do you want to reach? Depending on these two variables, you may have to use qualitative, quantitative , or multi-method approaches.

6) Research methods

What methods will you use in your market research project? The insights (and the granularity of those insights) will depend on the methods and tools you choose. For example, and as mentioned earlier, surveys are often the go-to for many organizations as they’re affordable and straightforward, but if you want to get more personal views from your respondents, one-to-one interviews might be more applicable. You might even want to take a hands-off approach and simply observe participants as they use your products, or try a combination of research methods. Make sure to outline what methods you will use as part of your research plan.

7) Timeline

How long will your research project run? It’s worth putting together a Gantt chart to highlight key milestones in the project, along with dependencies, and to break down tasks as much as possible. Schedule in contingency time in case some tasks or research runs over – or you need more responses.

Set a budget for the overall program and list it in your plan. Though this might be the most difficult aspect of any research plan, it helps you to be more strategic about tasks and hold people accountable at each stage of the process. If costs go over, that’s good to know for future market research. If costs are lower than anticipated, you then have the opportunity to do further research or prop up other areas of the study.

9) Ethical concerns or conflicts of interest

One of the most important parts of your market research plan, you should highlight any ethical concerns. To begin with, it’s your duty to state whether or not responses will be kept confidential and anonymous as part of the study. It’s also important to allow participants to remain anonymous and ensure you protect their privacy at all times.

Another issue to consider is stereotyping. Any analysis of real populations needs to make approximations and place individuals into groups, but if conducted irresponsibly, stereotyping can lead to undesirable results.

Lastly, conflicts of interest – it may be that researchers have interests in the outcome of the project that lead to a personal advantage that might compromise the integrity of your market research project. You should clearly state in your market research report that any potential conflicts of interest are highlighted and addressed before continuing.

But I want a faster solution!

Well, there’s a quicker and far easier way to do all of the above and get the data you need – just use a market research survey template. In our next section, we’re going to share a whole list of templates that you can use.

Free market research survey templates

No matter what kind of research you want to conduct, we have templates that will remove the complexity of the task and empower you to get more from your data. Below we’ve compiled a list of templates for four key experience areas: Brand , Customer , Employee , and Product .

All of our research templates are free. All you need to do is sign up for a free Qualtrics account to access them.

Brand experience market research templates:

• Logo testing : Collect feedback to help you evaluate and iterate on your logo designs and concepts
• Brand awareness : Track the level of brand awareness in your target market, including current and potential future customers
• Ad testing : Evaluate your consumers’ reaction to an advertisement so you know which campaigns to deploy before you invest
• A/B testing : Quickly and easily compare to versions or options in a study, whether it’s a design, headline, color palette or a mock-up of your latest ad campaign

Customer experience market research templates

• Student satisfaction : Gather feedback on how your institution is delivering on the student experience
• Net promoter score (NPS) : Measure customer loyalty and understand how they feel about your product or service using one of the world’s best-recognized metrics
• Customer satisfaction : Evaluate how satisfied your customers are with your company, including the products and services you provide, and how they are treated when they buy from you
• Customer service : Gain insights into the contact center experience, so you can achieve and maintain optimum levels of customer experience (CX) performance
• Event feedback : Measure the effectiveness of your events and how well they meet attendee expectations so that you can continuously improve your offering
• IT help desk : Understand how satisfied your employees and customers are with your IT help desk experience
• Website suggestion box : Collect visitor feedback on how your website can be improved
• Website satisfaction : Find out how satisfied visitors are with your website’s design, usability, and performance
• Store purchase feedback : Capture customer experience data at the point of purchase to help you improve the in-store experience
• Online purchase feedback : Find out how well your online shopping experience performs against customer needs and expectations

Employee experience market research templates

• Employee satisfaction : Get an overview of your current employee experience
• Manager feedback : Improve your skills as a leader with valuable feedback from your team
• Employee engagement : Find out how employees find the current experience at your workplace with this entry-level engagement survey
• Employee exit interview : Understand why your employees are leaving and how they’ll speak about your company once they’re gone with this survey template
• Employee onboarding : Improve your onboarding program by understanding what’s working and what’s not
• Team event planning : Collect inputs from employees to plan a team event that works for everyone
• Meeting feedback : Check-in with team members after a meeting to see how well your company is running and what improvements can be made
• Interview feedback : Improve your candidate experience by gathering actionable insights about the interview process
• Employee suggestion box : Gather anonymous data to help address concerns and improve the employee experience in your organization
• Candidate experience : Improve your candidate experience to increase brand perception, offer acceptance rates, and hiring process efficiency with this single-touchpoint survey template
• Employee suggestion action : Take employee feedback a step further by working with your staff to quantify solutions based on their experience data

Product experience market research templates

• Product research : Evaluate your consumers’ reaction to a new product or product feature across every stage of the product development journey
• Pricing : Understand how to set the exact price point for your product or service, according to your target consumers
• Feature prioritization : Compare and contrast product features using conjoint analysis to find the optimal mix for your customers
• Product package testing : Collect feedback on your product packaging to see how well it meets the needs and expectations of your customers

Armed with the right market research templates, getting the information you need across brand, product, customer and employee disciplines — as well as beyond — is significantly easier.

Free eBook: Guide to Modern Agile Research

Related resources

Mixed methods research 17 min read, market intelligence 10 min read, marketing insights 11 min read, ethnographic research 11 min read, qualitative vs quantitative research 13 min read, qualitative research questions 11 min read, qualitative research design 12 min read, request demo.

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How to Create a Market Research Plan

Before starting a business, you want to fully research your idea. A market research plan will help you understand your competition, the marketplace and more.

Table of Contents

While having a great idea is an important part of establishing a business, you’ll only get so far without laying the proper groundwork. To help your business take off, not only do you need to size up the competition, but you also need to identify who will buy your product, how much it will cost, the best approach to selling it and how many people will demand it.

To get answers to these questions, you’ll need a market research plan, which you can create yourself or pay a specialist to create for you. Market research plans define an existing problem and/or outline an opportunity. From there, the marketing strategy is broken down task by task. Your plan should include objectives and the methods that you’ll use to achieve those objectives, along with a time frame for completing the work.

What should a market research plan include?

A market research plan should provide a thorough examination of how your product or service will fare in a defined area. It should include:

• An examination of the current marketplace and an analysis of the need for your product or service: To know where you fit in the market, it’s important to have a broad understanding of your industry — covering everything from its annual revenue to the industry standards to the total number of businesses operating within it. Start by gathering statistical data from sources like the U.S. Bureau of Labor Statistics and BMI Research and consider the industry’s market size, potential customer base and how external factors such as laws, technology, world events and socioeconomic changes impact it.
• An assessment of the competition: By analyzing your competitors, you can discover strategies to fill market gaps. This involves identifying well-known competitors and noting trends they employ successfully, scrutinizing customer feedback about businesses in your sector, such as through online reviews, and understanding competitors’ product or service offerings. This knowledge can then guide the refinement of your own products or services to differentiate them from others in the market.
• Data about customers: Identify which segment of potential customers in your industry you can effectively target, considering their demographics — such as age, ethnicity, income and location and psychographics, including beliefs, values and lifestyle. Learn about the challenges your customers face in their daily lives and determine how the features and benefits of your offerings address their needs.
• The direction for your marketing in the upcoming year: Your plan should provide a clear roadmap for your marketing strategies for the next year, focusing on approaches to distinguish your brand from competitors. Develop marketing messages that resonate with and display empathy toward your target market and find ways to address customers’ needs and demonstrate value.
• Goals to be met: Outline goals your business would like to achieve and make these goals clear to all employees on your team. Create goals that are realistic and attainable while also making a meaningful impact on the business’s growth. Consider factors including your target number of products or services, the expected number of units to sell based on market size, target market behavior, pricing for each item and the cost of production and advertising.

How to create your market research plan

Doing business without having a marketing plan is like driving without directions. You may eventually reach your destination, but there will be many costly and time-consuming mistakes made along the way.

Many entrepreneurs mistakenly believe there is a big demand for their service or product but, in reality, there may not be, your prices may be too high or too low or you may be going into a business with so many restrictions that it’s almost impossible to be successful. A market research plan will help you uncover significant issues or roadblocks.

Step 1. Conduct a comprehensive situation analysis.

One of the first steps in constructing your marketing plan is to create a strengths, weaknesses, opportunities and threats (SWOT) analysis , which is used to identify your competition, to know how they operate and then to understand their strengths and weaknesses.

Step 2: Develop clear marketing objectives.

In this section, describe the desired outcome for your marketing plan with realistic and attainable objectives, the targets and a clear and concise time frame. The most common way to approach this is with marketing objectives, which may include the total number of customers and the retention rate, the average volume of purchases, total market share and the proportion of your potential market that makes purchases.

Step 3: Make a financial plan.

A financial plan is essentia l for creating a solid marketing plan. The financial plan answers a range of questions that are critical components of your business, such as how much you intend to sell, what will you charge, how much will it cost to deliver your services or produce your products, how much will it cost for your basic operating expenses and how much financing will you need to operate your business.

In your business plan, be sure to describe who you are, what your business will be about, your business goals and what your inspiration was to buy, begin or grow your business.

Step 4: Determine your target audience.

Once you know what makes you stand out from your competitors and how you’ll market yourself, you should decide who to target with all this information. That’s why your market research plan should delineate your target audience. What are their demographics and how will these qualities affect your plan? How do your company’s current products and services affect which consumers you can realistically make customers? Will that change in the future? All of these questions should be answered in your plan.

Step 5: List your research methods.

Rarely does one research avenue make for a comprehensive market research plan. Instead, your plan should indicate several methods that will be used to determine the market share you can realistically obtain. This way, you get as much information as possible from as many sources as possible. The result is a more robust path toward establishing the exact footprint you desire for your company.

Step 6: Establish a timeline.

With your plan in place, you’ll need to figure out how long your market research process will take. Project management charts are often helpful in this regard as they divide tasks and personnel over a timeframe that you have set. No matter which type of project management chart you use, try to build some flexibility into your timeframe. A two-week buffer toward the home stretch comes in handy when a process scheduled for one week takes two — that buffer will keep you on deadline.

Step 7: Acknowledge ethical concerns.

Market research always presents opportunities for ethical missteps. After all, you’ll need to obtain competitor information and sensitive financial data that may not always be readily available. Your market research plan should thus encourage your team to not take any dicey steps to obtain this information. It may be better to state, “we could not obtain this competitor information,” than to spy on the competitor or pressure their current employees for knowledge. Plus, there’s nothing wrong with simply feeling better about the final state of your plan and how you got it there.

Using a market research firm

If the thought of trying to create your own market research plan seems daunting or too time-consuming, there are plenty of other people willing to do the work for you.

Pros of using a market research firm

As an objective third party, businesses can benefit from a market research firm’s impartial perspective and guidance, helping to shape impactful brand strategies and marketing campaigns. These firms, which can help businesses with everything from their marketing campaigns to brand launches, deliver precise results, drawing on their expertise and experience to provide in-depth insights and solutions tailored specifically to your company’s needs. 

Even more, working with a market research firm can elevate a brand above the competition, as they provide credible and unique research that is highly valued by the media, enhancing brand credibility and potentially increasing website traffic, social media shares and online visibility.

Cons of using a market research firm

Although hiring a firm can provide businesses with tremendous results, certain downsides can lead a business toward the do-it-yourself route. Most notably, market research firms can be a costly expense that some businesses can’t afford. However, businesses that can allocate the funds will likely see a positive return on investment, as they are paying for the expertise and proficiency of seasoned professionals in the field.

Additionally, finding the right market research firm for your business’s needs can take some time — and even longer, ranging from weeks to months, for a market research firm to complete a plan. This lack of immediate results can be detrimental for businesses that don’t have the time to wait. 

Market research firms can charge into the thousands of dollars for a market research plan, but there are ways to get help more affordably, including:

• Outline your plans carefully and spell out objectives.
• Examine as many sources as possible.
• Before paying for any information, check with librarians, small business development centers or market research professors to see if they can help you access market research data for free.
• You may think you’ll need to spend a hefty sum to create a market research plan, but there are plenty of free and low-cost sources available, especially through university business schools that will guide you through the process.

Miranda Fraraccio contributed to this article. 

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How to write a research plan: Step-by-step guide

Last updated

30 January 2024

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Short on time? Get an AI generated summary of this article instead

Today’s businesses and institutions rely on data and analytics to inform their product and service decisions. These metrics influence how organizations stay competitive and inspire innovation. However, gathering data and insights requires carefully constructed research, and every research project needs a roadmap. This is where a research plan comes into play.

Read this step-by-step guide for writing a detailed research plan that can apply to any project, whether it’s scientific, educational, or business-related.

• What is a research plan?

A research plan is a documented overview of a project in its entirety, from end to end. It details the research efforts, participants, and methods needed, along with any anticipated results. It also outlines the project’s goals and mission, creating layers of steps to achieve those goals within a specified timeline.

Without a research plan, you and your team are flying blind, potentially wasting time and resources to pursue research without structured guidance.

The principal investigator, or PI, is responsible for facilitating the research oversight. They will create the research plan and inform team members and stakeholders of every detail relating to the project. The PI will also use the research plan to inform decision-making throughout the project.

• Why do you need a research plan?

Create a research plan before starting any official research to maximize every effort in pursuing and collecting the research data. Crucially, the plan will model the activities needed at each phase of the research project .

Like any roadmap, a research plan serves as a valuable tool providing direction for those involved in the project—both internally and externally. It will keep you and your immediate team organized and task-focused while also providing necessary definitions and timelines so you can execute your project initiatives with full understanding and transparency.

External stakeholders appreciate a working research plan because it’s a great communication tool, documenting progress and changing dynamics as they arise. Any participants of your planned research sessions will be informed about the purpose of your study, while the exercises will be based on the key messaging outlined in the official plan.

Here are some of the benefits of creating a research plan document for every project:

Project organization and structure

Well-informed participants

All stakeholders and teams align in support of the project

Clearly defined project definitions and purposes

Distractions are eliminated, prioritizing task focus

Timely management of individual task schedules and roles

Costly reworks are avoided

• What should a research plan include?

The different aspects of your research plan will depend on the nature of the project. However, most official research plan documents will include the core elements below. Each aims to define the problem statement , devising an official plan for seeking a solution.

Specific project goals and individual objectives

Ideal strategies or methods for reaching those goals

Required resources

Descriptions of the target audience, sample sizes , demographics, and scopes

Key performance indicators (KPIs)

Project background

Research and testing support

Preliminary studies and progress reporting mechanisms

Cost estimates and change order processes

Depending on the research project’s size and scope, your research plan could be brief—perhaps only a few pages of documented plans. Alternatively, it could be a fully comprehensive report. Either way, it’s an essential first step in dictating your project’s facilitation in the most efficient and effective way.

• How to write a research plan for your project

When you start writing your research plan, aim to be detailed about each step, requirement, and idea. The more time you spend curating your research plan, the more precise your research execution efforts will be.

Account for every potential scenario, and be sure to address each and every aspect of the research.

Consider following this flow to develop a great research plan for your project:

Define your project’s purpose

Start by defining your project’s purpose. Identify what your project aims to accomplish and what you are researching. Remember to use clear language.

Thinking about the project’s purpose will help you set realistic goals and inform how you divide tasks and assign responsibilities. These individual tasks will be your stepping stones to reach your overarching goal.

Additionally, you’ll want to identify the specific problem, the usability metrics needed, and the intended solutions.

Know the following three things about your project’s purpose before you outline anything else:

What you’re doing

Why you’re doing it

What you expect from it

Identify individual objectives

With your overarching project objectives in place, you can identify any individual goals or steps needed to reach those objectives. Break them down into phases or steps. You can work backward from the project goal and identify every process required to facilitate it.

Be mindful to identify each unique task so that you can assign responsibilities to various team members. At this point in your research plan development, you’ll also want to assign priority to those smaller, more manageable steps and phases that require more immediate or dedicated attention.

Select research methods

Once you have outlined your goals, objectives, steps, and tasks, it’s time to drill down on selecting research methods . You’ll want to leverage specific research strategies and processes. When you know what methods will help you reach your goals, you and your teams will have direction to perform and execute your assigned tasks.

Research methods might include any of the following:

User interviews : this is a qualitative research method where researchers engage with participants in one-on-one or group conversations. The aim is to gather insights into their experiences, preferences, and opinions to uncover patterns, trends, and data.

Field studies : this approach allows for a contextual understanding of behaviors, interactions, and processes in real-world settings. It involves the researcher immersing themselves in the field, conducting observations, interviews, or experiments to gather in-depth insights.

Card sorting : participants categorize information by sorting content cards into groups based on their perceived similarities. You might use this process to gain insights into participants’ mental models and preferences when navigating or organizing information on websites, apps, or other systems.

Focus groups : use organized discussions among select groups of participants to provide relevant views and experiences about a particular topic.

Diary studies : ask participants to record their experiences, thoughts, and activities in a diary over a specified period. This method provides a deeper understanding of user experiences, uncovers patterns, and identifies areas for improvement.

Five-second testing: participants are shown a design, such as a web page or interface, for just five seconds. They then answer questions about their initial impressions and recall, allowing you to evaluate the design’s effectiveness.

Surveys : get feedback from participant groups with structured surveys. You can use online forms, telephone interviews, or paper questionnaires to reveal trends, patterns, and correlations.

Tree testing : tree testing involves researching web assets through the lens of findability and navigability. Participants are given a textual representation of the site’s hierarchy (the “tree”) and asked to locate specific information or complete tasks by selecting paths.

Usability testing : ask participants to interact with a product, website, or application to evaluate its ease of use. This method enables you to uncover areas for improvement in digital key feature functionality by observing participants using the product.

Live website testing: research and collect analytics that outlines the design, usability, and performance efficiencies of a website in real time.

There are no limits to the number of research methods you could use within your project. Just make sure your research methods help you determine the following:

What do you plan to do with the research findings?

What decisions will this research inform? How can your stakeholders leverage the research data and results?

Recruit participants and allocate tasks

Next, identify the participants needed to complete the research and the resources required to complete the tasks. Different people will be proficient at different tasks, and having a task allocation plan will allow everything to run smoothly.

Prepare a thorough project summary

Every well-designed research plan will feature a project summary. This official summary will guide your research alongside its communications or messaging. You’ll use the summary while recruiting participants and during stakeholder meetings. It can also be useful when conducting field studies.

Ensure this summary includes all the elements of your research project . Separate the steps into an easily explainable piece of text that includes the following:

An introduction: the message you’ll deliver to participants about the interview, pre-planned questioning, and testing tasks.

Interview questions: prepare questions you intend to ask participants as part of your research study, guiding the sessions from start to finish.

An exit message: draft messaging your teams will use to conclude testing or survey sessions. These should include the next steps and express gratitude for the participant’s time.

Create a realistic timeline

While your project might already have a deadline or a results timeline in place, you’ll need to consider the time needed to execute it effectively.

Realistically outline the time needed to properly execute each supporting phase of research and implementation. And, as you evaluate the necessary schedules, be sure to include additional time for achieving each milestone in case any changes or unexpected delays arise.

For this part of your research plan, you might find it helpful to create visuals to ensure your research team and stakeholders fully understand the information.

Determine how to present your results

A research plan must also describe how you intend to present your results. Depending on the nature of your project and its goals, you might dedicate one team member (the PI) or assume responsibility for communicating the findings yourself.

In this part of the research plan, you’ll articulate how you’ll share the results. Detail any materials you’ll use, such as:

Presentations and slides

A project report booklet

A project findings pamphlet

Documents with key takeaways and statistics

Graphic visuals to support your findings

• Format your research plan

As you create your research plan, you can enjoy a little creative freedom. A plan can assume many forms, so format it how you see fit. Determine the best layout based on your specific project, intended communications, and the preferences of your teams and stakeholders.

Find format inspiration among the following layouts:

Written outlines

Narrative storytelling

Visual mapping

Graphic timelines

Remember, the research plan format you choose will be subject to change and adaptation as your research and findings unfold. However, your final format should ideally outline questions, problems, opportunities, and expectations.

• Research plan example

Imagine you’ve been tasked with finding out how to get more customers to order takeout from an online food delivery platform. The goal is to improve satisfaction and retain existing customers. You set out to discover why more people aren’t ordering and what it is they do want to order or experience. 

You identify the need for a research project that helps you understand what drives customer loyalty . But before you jump in and start calling past customers, you need to develop a research plan—the roadmap that provides focus, clarity, and realistic details to the project.

Here’s an example outline of a research plan you might put together:

Project title

Project members involved in the research plan

Purpose of the project (provide a summary of the research plan’s intent)

Objective 1 (provide a short description for each objective)

Objective 2

Objective 3

Proposed timeline

Audience (detail the group you want to research, such as customers or non-customers)

Budget (how much you think it might cost to do the research)

Risk factors/contingencies (any potential risk factors that may impact the project’s success)

Remember, your research plan doesn’t have to reinvent the wheel—it just needs to fit your project’s unique needs and aims.

Customizing a research plan template

Some companies offer research plan templates to help get you started. However, it may make more sense to develop your own customized plan template. Be sure to include the core elements of a great research plan with your template layout, including the following:

Introductions to participants and stakeholders

Background problems and needs statement

Significance, ethics, and purpose

Research methods, questions, and designs

Preliminary beliefs and expectations

Implications and intended outcomes

Realistic timelines for each phase

Conclusion and presentations

How many pages should a research plan be?

Generally, a research plan can vary in length between 500 to 1,500 words. This is roughly three pages of content. More substantial projects will be 2,000 to 3,500 words, taking up four to seven pages of planning documents.

What is the difference between a research plan and a research proposal?

A research plan is a roadmap to success for research teams. A research proposal, on the other hand, is a dissertation aimed at convincing or earning the support of others. Both are relevant in creating a guide to follow to complete a project goal.

What are the seven steps to developing a research plan?

While each research project is different, it’s best to follow these seven general steps to create your research plan:

Defining the problem

Identifying goals

Choosing research methods

Recruiting participants

Preparing the brief or summary

Establishing task timelines

Defining how you will present the findings

Should you be using a customer insights hub?

Do you want to discover previous research faster?

Do you share your research findings with others?

Do you analyze research data?

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MARKETING STRATEGY

9 Elements of an Effective Marketing Plan

There is no short-cutting the most critical part of any marketing campaign — the plan. That’s why this article goes into detail about the nine ingredients every effective marketing plan should have. You’ll gain clarity about each component’s purpose, along with specific examples to crystallize your thinking.

What you’ll gain from this article:

• How to develop the right marketing goals
• How to identify your plan’s truest key performance indicators
• The insights you may be lacking about your target audience(s)
• The difference and relationship between marketing strategy and tactics
• The greatest pitfall when it comes to the marketing budget

Estimated read time = 12 mins

It’s very easy to get distracted and jump right into the weeds. By “weeds,” we mean marketing tactics. Marketers have experienced this far too often. We get a group of colleagues together to develop an annual marketing plan or an upcoming campaign, and folks start blurting out specific ways to go to market. Email marketing. Facebook ads. Publicity. A TV spot. Google ads. Etc.

Please avoid this temptation with all your might. This type of planning is no longer sustainable, especially with today’s marketers being asked to do more than ever. Often with less budget and less staff. We need to be more thoughtful and more measurable with our actions, and a sound marketing plan should be that blueprint. So let’s cover each of these elements in detail:

• Business goals
• Marketing goals
• Target audiences

BUSINESS / ORGANIZATIONAL GOALS

Every organization — for-profit or non-profit, large or small — has goals. Goals give businesses purpose and must have a direct impact on their existence. They come in many forms, including:

• increases in sales revenue
• increases in average order value
• increases in customer lifetime value
• increases in applications and enrollments (colleges and universities)
• increases in fundraising revenue (non-profits)
• increases in the total number of people helped or served (non-profits)

And the list could go on. There are many forms of business goals, and we as marketers have little to no control over how they get created. That said, there’s one key thing we need to remember when creating our marketing plan: Good marketing goals must concretely support business goals . So what should our marketing goals be and how must they support business goals?  Read on …

MARKETING GOALS

First, good marketing goals must consist of five key attributes. Many of us have heard about SMART goals , which are:

• Time-related

We set ourselves up for failure if even one of these criterion is lacking. SMART goals give us a foundation for holding ourselves accountable, and knowing when we’ve succeeded (or failed). Here are some SMART examples (let’s assume they’re assignable and realistic, too):

• To increase consumer phone calls (leads) by 10% year-over-year between now and June 30
• To increase in-store foot traffic by 5% during Q4 for the NYC store location
• To increase consumer unaided awareness of our brand by 10% within 1 year
• To increase average donation amounts by 10% during November

Next, we fuse our SMART marketing goals with business goals through an activity called Performance Modeling. (Hubspot also refers to this as Smarketing , FYI for you inbound lovers.) A performance model essentially maps the entire consumer journey in a linear progression from the start of campaign promotion to the resulting consumer activity (i.e. leads), and then to actual sales and profitability. Think of the performance model as another way to express the traditional marketing funnel , but with two, key exceptions :

• It gives volume and conversion details for each “micro” conversion of the journey, and
• It reflects sales conversion rates and business goals

Here’s a performance model example for one of our clients offering a high-end kitchen design and installation service:

Performance modeling also offers a framework for future marketing reports at the management/CMO level. It provides crystal clear understanding of which metrics need to be tracked and reported as a campaign progresses. These become our Key Performance Indicators (KPIs). The model essentially becomes a real-time barometer of the campaign’s health and likelihood of reaching its goals. More importantly, it “sounds the alarm” when things are under-performing and prompts much needed campaign adjustments with budget and time still remaining.

And finally, performance modeling gets everyone on board — leadership, marketing and sales . It provides a direct “line of sight” from promotions to profitability, and is easily understood by anyone (not just marketers).

TARGET AUDIENCE(S)

For this blog article, we’ll assume you already know the basics of your target audience. This is usually demographic information such as:

• Male/female (or skew toward one of them)
• Countries, regions, and cities and towns in which they live and work
• Annual household income
• Race or ethnicity

That’s a great start, but many marketers overlook the behavioral and psychographic attributes of their target audiences. Some of these are:

• “Mindset” – How do they think about your product or service?
• economic factors (recession that decreases household spending)
• competitors (with better price points, benefits/features, etc.)
• consumer trends (new ways of thinking that have permanently changed spending habits … think “gluten free”)
• political landscape (new gov’t regulations or election year influences)
• “Habits” – What do they do at each stage of the consumer decision-making process , and what can we do to get in front of them?

The answers to these questions may involve both qualitative (focus groups, interviews, etc.) and quantitative (polls/surveys) research, while some insights could be gained from secondary research (i.e., paying providers like GfK MRI or Nielsen-Scarborough for the data). Either way, the time and investment for these insights will produce a more effective strategy and tactics in the long run.

Surprisingly, this is an area we see far too many clients lacking in. This is especially painful for sales teams, which are responsible for closing. How can we expect them to convert customers if we don’t equip them with the necessary tools?

Key considerations:

• Establishing the brand position
• Developing a messaging platform to support the brand position (tagline/slogan, elevator pitch, support points/key benefits, competitive differentiation, etc.)
• Understanding how the messaging translates into multiple marketing formats

Bottom line : If we can’t explain the value of what we’re promoting, how can we expect to meet our marketing goals?

It’s very easy to confuse marketing strategy and marketing tactics, so we’ll address these two elements together:

• A strategy is the approach for achieving marketing (and business) goals,
• Tactics are the specific things that execute on the strategy

It’s easiest to think of strategy as “what we need to do” and tactics as “how we’ll get it done”.

Example #1: Old Spice

Business goal: To increase U.S. sales of men’s deodorant by 10% in 12 months Marketing goal: To increase consumer unaided awareness (by 50%) and favorability (by 20%) of Old Spice deodorant over other brands Strategy: Target women (wives/girlfriends) because they do the household shopping One Tactic: Air national TV spots showing an attractive man talking directly to these women … like this …

Example #2: Fictional e-commerce business

Let’s say you sell products through your website. The goal is to increase sales revenue by 15% in 6 months with only a very modest budget.

After much research, you decide that the strategic elements of your marketing plan should be to:

• Increase return visitors to the website
• Increase repeat purchases with current/loyal customers
• Increase the average order value of each checkout

Corresponding tactics for those strategic elements could be:

• Show Google re-marketing ads to customers who viewed specific products, but left without making a purchase
• Email free shipping offers to current customers
• Optimize the checkout process by suggesting complementary products (“you may also like …”) with each item added to the online shopping cart

It is critically important to have a firm and realistic marketing budget. This is a decision that only management — not your marketing department and certainly not your consultant! — can make given how much the organization wishes to invest in future marketing efforts in order to meet its goals.

Businesses too often come to us and say, “Why don’t you tell us how much we should spend?” Or, “We have a zero-based budget … what would you recommend based on our business goals?” The truth is that no marketer or consultant knows how to objectively answer this question. The only way would be an unbelievably perfect scenario of a business knowing their conversion rates for every marketing tactic  and how they generated sales for every product or service . (That would be a performance modeling dream, but it is just that.)

The pitfall of this question is the internal marketing team and/or consultant(s) must then needlessly spin their wheels to develop multiple marketing plans for multiple budget scenarios. It’s valuable time and resources wasted. Urge management to give you a firm budget from which to plan. It doesn’t help anyone to develop elaborate marketing plans when there’s only enough money to pay for Google advertising at the end of the day.

The marketing plan or campaign’s timing should be influenced by the following:

• The organization’s budget cycle (fiscal year or calendar year)
• Seasonality (holiday shopping season, the Super Bowl, etc.)
• Organizational events (date of a new product launch, store opening, sales promotion, etc.)

A good campaign reflects a timeline to accommodate these circumstances. But a great marketing plan takes it a step further, and projects how it will support sales revenue milestones each month in order to provide cash flow. Here’s an example going back to our kitchen design and installation client. A simple spreadsheet of the performance model is more than sufficient:

And finally, no marketing plan will ever meet its goals unless there’s a proper team in place, with each member having clearly defined roles and responsibilities.The best plan in the world is nothing more than ideas unless it can be executed. And it takes the right person or people to do that. There are also great (and cheap) project management tools, like Basecamp or Trello , to keep everyone organized and accountable.

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10.2 Steps in the Marketing Research Process

Learning objective.

• Describe the basic steps in the marketing research process and the purpose of each step.

The basic steps used to conduct marketing research are shown in Figure 10.6 “Steps in the Marketing Research Process” . Next, we discuss each step.

Figure 10.6 Steps in the Marketing Research Process

Step 1: Define the Problem (or Opportunity)

There’s a saying in marketing research that a problem half defined is a problem half solved. Defining the “problem” of the research sounds simple, doesn’t it? Suppose your product is tutoring other students in a subject you’re a whiz at. You have been tutoring for a while, and people have begun to realize you’re darned good at it. Then, suddenly, your business drops off. Or it explodes, and you can’t cope with the number of students you’re being asked help. If the business has exploded, should you try to expand your services? Perhaps you should subcontract with some other “whiz” students. You would send them students to be tutored, and they would give you a cut of their pay for each student you referred to them.

Both of these scenarios would be a problem for you, wouldn’t they? They are problems insofar as they cause you headaches. But are they really the problem? Or are they the symptoms of something bigger? For example, maybe your business has dropped off because your school is experiencing financial trouble and has lowered the number of scholarships given to incoming freshmen. Consequently, there are fewer total students on campus who need your services. Conversely, if you’re swamped with people who want you to tutor them, perhaps your school awarded more scholarships than usual, so there are a greater number of students who need your services. Alternately, perhaps you ran an ad in your school’s college newspaper, and that led to the influx of students wanting you to tutor them.

Businesses are in the same boat you are as a tutor. They take a look at symptoms and try to drill down to the potential causes. If you approach a marketing research company with either scenario—either too much or too little business—the firm will seek more information from you such as the following:

• In what semester(s) did your tutoring revenues fall (or rise)?
• In what subject areas did your tutoring revenues fall (or rise)?
• In what sales channels did revenues fall (or rise): Were there fewer (or more) referrals from professors or other students? Did the ad you ran result in fewer (or more) referrals this month than in the past months?
• Among what demographic groups did your revenues fall (or rise)—women or men, people with certain majors, or first-year, second-, third-, or fourth-year students?

The key is to look at all potential causes so as to narrow the parameters of the study to the information you actually need to make a good decision about how to fix your business if revenues have dropped or whether or not to expand it if your revenues have exploded.

The next task for the researcher is to put into writing the research objective. The research objective is the goal(s) the research is supposed to accomplish. The marketing research objective for your tutoring business might read as follows:

To survey college professors who teach 100- and 200-level math courses to determine why the number of students referred for tutoring dropped in the second semester.

This is admittedly a simple example designed to help you understand the basic concept. If you take a marketing research course, you will learn that research objectives get a lot more complicated than this. The following is an example:

“To gather information from a sample representative of the U.S. population among those who are ‘very likely’ to purchase an automobile within the next 6 months, which assesses preferences (measured on a 1–5 scale ranging from ‘very likely to buy’ to ‘not likely at all to buy’) for the model diesel at three different price levels. Such data would serve as input into a forecasting model that would forecast unit sales, by geographic regions of the country, for each combination of the model’s different prices and fuel configurations (Burns & Bush, 2010).”

Now do you understand why defining the problem is complicated and half the battle? Many a marketing research effort is doomed from the start because the problem was improperly defined. Coke’s ill-fated decision to change the formula of Coca-Cola in 1985 is a case in point: Pepsi had been creeping up on Coke in terms of market share over the years as well as running a successful promotional campaign called the “Pepsi Challenge,” in which consumers were encouraged to do a blind taste test to see if they agreed that Pepsi was better. Coke spent four years researching “the problem.” Indeed, people seemed to like the taste of Pepsi better in blind taste tests. Thus, the formula for Coke was changed. But the outcry among the public was so great that the new formula didn’t last long—a matter of months—before the old formula was reinstated. Some marketing experts believe Coke incorrectly defined the problem as “How can we beat Pepsi in taste tests?” instead of “How can we gain market share against Pepsi?” (Burns & Bush, 2010)

New Coke Is It! 1985

(click to see video)

This video documents the Coca-Cola Company’s ill-fated launch of New Coke in 1985.

1985 Pepsi Commercial—“They Changed My Coke”

This video shows how Pepsi tried to capitalize on the blunder.

Step 2: Design the Research

The next step in the marketing research process is to do a research design. The research design is your “plan of attack.” It outlines what data you are going to gather and from whom, how and when you will collect the data, and how you will analyze it once it’s been obtained. Let’s look at the data you’re going to gather first.

There are two basic types of data you can gather. The first is primary data. Primary data is information you collect yourself, using hands-on tools such as interviews or surveys, specifically for the research project you’re conducting. Secondary data is data that has already been collected by someone else, or data you have already collected for another purpose. Collecting primary data is more time consuming, work intensive, and expensive than collecting secondary data. Consequently, you should always try to collect secondary data first to solve your research problem, if you can. A great deal of research on a wide variety of topics already exists. If this research contains the answer to your question, there is no need for you to replicate it. Why reinvent the wheel?

Sources of Secondary Data

Your company’s internal records are a source of secondary data. So are any data you collect as part of your marketing intelligence gathering efforts. You can also purchase syndicated research. Syndicated research is primary data that marketing research firms collect on a regular basis and sell to other companies. J.D. Power & Associates is a provider of syndicated research. The company conducts independent, unbiased surveys of customer satisfaction, product quality, and buyer behavior for various industries. The company is best known for its research in the automobile sector. One of the best-known sellers of syndicated research is the Nielsen Company, which produces the Nielsen ratings. The Nielsen ratings measure the size of television, radio, and newspaper audiences in various markets. You have probably read or heard about TV shows that get the highest (Nielsen) ratings. (Arbitron does the same thing for radio ratings.) Nielsen, along with its main competitor, Information Resources, Inc. (IRI), also sells businesses scanner-based research . Scanner-based research is information collected by scanners at checkout stands in stores. Each week Nielsen and IRI collect information on the millions of purchases made at stores. The companies then compile the information and sell it to firms in various industries that subscribe to their services. The Nielsen Company has also recently teamed up with Facebook to collect marketing research information. Via Facebook, users will see surveys in some of the spaces in which they used to see online ads (Rappeport, Gelles, 2009).

By contrast, MarketResearch.com is an example of a marketing research aggregator. A marketing research aggregator is a marketing research company that doesn’t conduct its own research and sell it. Instead, it buys research reports from other marketing research companies and then sells the reports in their entirety or in pieces to other firms. Check out MarketResearch.com’s Web site. As you will see there are a huge number of studies in every category imaginable that you can buy for relatively small amounts of money.

Figure 10.7

Market research aggregators buy research reports from other marketing research companies and then resell them in part or in whole to other companies so they don’t have to gather primary data.

Source: http://www.marketresearch.com .

Your local library is a good place to gather free secondary data. It has searchable databases as well as handbooks, dictionaries, and books, some of which you can access online. Government agencies also collect and report information on demographics, economic and employment data, health information, and balance-of-trade statistics, among a lot of other information. The U.S. Census Bureau collects census data every ten years to gather information about who lives where. Basic demographic information about sex, age, race, and types of housing in which people live in each U.S. state, metropolitan area, and rural area is gathered so that population shifts can be tracked for various purposes, including determining the number of legislators each state should have in the U.S. House of Representatives. For the U.S. government, this is primary data. For marketing managers it is an important source of secondary data.

The Survey Research Center at the University of Michigan also conducts periodic surveys and publishes information about trends in the United States. One research study the center continually conducts is called the “Changing Lives of American Families” ( http://www.isr.umich.edu/home/news/research-update/2007-01.pdf ). This is important research data for marketing managers monitoring consumer trends in the marketplace. The World Bank and the United Nations are two international organizations that collect a great deal of information. Their Web sites contain many free research studies and data related to global markets. Table 10.1 “Examples of Primary Data Sources versus Secondary Data Sources” shows some examples of primary versus secondary data sources.

Table 10.1 Examples of Primary Data Sources versus Secondary Data Sources

Gauging the Quality of Secondary Data

When you are gathering secondary information, it’s always good to be a little skeptical of it. Sometimes studies are commissioned to produce the result a client wants to hear—or wants the public to hear. For example, throughout the twentieth century, numerous studies found that smoking was good for people’s health. The problem was the studies were commissioned by the tobacco industry. Web research can also pose certain hazards. There are many biased sites that try to fool people that they are providing good data. Often the data is favorable to the products they are trying to sell. Beware of product reviews as well. Unscrupulous sellers sometimes get online and create bogus ratings for products. See below for questions you can ask to help gauge the credibility of secondary information.

Gauging the Credibility of Secondary Data: Questions to Ask

• Who gathered this information?
• For what purpose?
• What does the person or organization that gathered the information have to gain by doing so?
• Was the information gathered and reported in a systematic manner?
• Is the source of the information accepted as an authority by other experts in the field?
• Does the article provide objective evidence to support the position presented?

Types of Research Design

Now let’s look specifically at the types of research designs that are utilized. By understanding different types of research designs, a researcher can solve a client’s problems more quickly and efficiently without jumping through more hoops than necessary. Research designs fall into one of the following three categories:

• Exploratory research design
• Descriptive research design
• Causal research design (experiments)

An exploratory research design is useful when you are initially investigating a problem but you haven’t defined it well enough to do an in-depth study of it. Perhaps via your regular market intelligence, you have spotted what appears to be a new opportunity in the marketplace. You would then do exploratory research to investigate it further and “get your feet wet,” as the saying goes. Exploratory research is less structured than other types of research, and secondary data is often utilized.

One form of exploratory research is qualitative research. Qualitative research is any form of research that includes gathering data that is not quantitative, and often involves exploring questions such as why as much as what or how much . Different forms, such as depth interviews and focus group interviews, are common in marketing research.

The depth interview —engaging in detailed, one-on-one, question-and-answer sessions with potential buyers—is an exploratory research technique. However, unlike surveys, the people being interviewed aren’t asked a series of standard questions. Instead the interviewer is armed with some general topics and asks questions that are open ended, meaning that they allow the interviewee to elaborate. “How did you feel about the product after you purchased it?” is an example of a question that might be asked. A depth interview also allows a researcher to ask logical follow-up questions such as “Can you tell me what you mean when you say you felt uncomfortable using the service?” or “Can you give me some examples?” to help dig further and shed additional light on the research problem. Depth interviews can be conducted in person or over the phone. The interviewer either takes notes or records the interview.

Focus groups and case studies are often utilized for exploratory research as well. A focus group is a group of potential buyers who are brought together to discuss a marketing research topic with one another. A moderator is used to focus the discussion, the sessions are recorded, and the main points of consensus are later summarized by the market researcher. Textbook publishers often gather groups of professors at educational conferences to participate in focus groups. However, focus groups can also be conducted on the telephone, in online chat rooms, or both, using meeting software like WebEx. The basic steps of conducting a focus group are outlined below.

The Basic Steps of Conducting a Focus Group

• Establish the objectives of the focus group. What is its purpose?
• Identify the people who will participate in the focus group. What makes them qualified to participate? How many of them will you need and what they will be paid?
• Obtain contact information for the participants and send out invitations (usually e-mails are most efficient).
• Develop a list of questions.
• Choose a facilitator.
• Choose a location in which to hold the focus group and the method by which it will be recorded.
• Conduct the focus group. If the focus group is not conducted electronically, include name tags for the participants, pens and notepads, any materials the participants need to see, and refreshments. Record participants’ responses.
• Summarize the notes from the focus group and write a report for management.

A case study looks at how another company solved the problem that’s being researched. Sometimes multiple cases, or companies, are used in a study. Case studies nonetheless have a mixed reputation. Some researchers believe it’s hard to generalize, or apply, the results of a case study to other companies. Nonetheless, collecting information about companies that encountered the same problems your firm is facing can give you a certain amount of insight about what direction you should take. In fact, one way to begin a research project is to carefully study a successful product or service.

Two other types of qualitative data used for exploratory research are ethnographies and projective techniques. In an ethnography , researchers interview, observe, and often videotape people while they work, live, shop, and play. The Walt Disney Company has recently begun using ethnographers to uncover the likes and dislikes of boys aged six to fourteen, a financially attractive market segment for Disney, but one in which the company has been losing market share. The ethnographers visit the homes of boys, observe the things they have in their rooms to get a sense of their hobbies, and accompany them and their mothers when they shop to see where they go, what the boys are interested in, and what they ultimately buy. (The children get seventy-five dollars out of the deal, incidentally.) (Barnes, 2009)

Projective techniques are used to reveal information research respondents might not reveal by being asked directly. Asking a person to complete sentences such as the following is one technique:

People who buy Coach handbags __________.

(Will he or she reply with “are cool,” “are affluent,” or “are pretentious,” for example?)

KFC’s grilled chicken is ______.

Or the person might be asked to finish a story that presents a certain scenario. Word associations are also used to discern people’s underlying attitudes toward goods and services. Using a word-association technique, a market researcher asks a person to say or write the first word that comes to his or her mind in response to another word. If the initial word is “fast food,” what word does the person associate it with or respond with? Is it “McDonald’s”? If many people reply that way, and you’re conducting research for Burger King, that could indicate Burger King has a problem. However, if the research is being conducted for Wendy’s, which recently began running an advertising campaign to the effect that Wendy’s offerings are “better than fast food,” it could indicate that the campaign is working.

Completing cartoons is yet another type of projective technique. It’s similar to finishing a sentence or story, only with the pictures. People are asked to look at a cartoon such as the one shown in Figure 10.8 “Example of a Cartoon-Completion Projective Technique” . One of the characters in the picture will have made a statement, and the person is asked to fill in the empty cartoon “bubble” with how they think the second character will respond.

Figure 10.8 Example of a Cartoon-Completion Projective Technique

In some cases, your research might end with exploratory research. Perhaps you have discovered your organization lacks the resources needed to produce the product. In other cases, you might decide you need more in-depth, quantitative research such as descriptive research or causal research, which are discussed next. Most marketing research professionals advise using both types of research, if it’s feasible. On the one hand, the qualitative-type research used in exploratory research is often considered too “lightweight.” Remember earlier in the chapter when we discussed telephone answering machines and the hit TV sitcom Seinfeld ? Both product ideas were initially rejected by focus groups. On the other hand, relying solely on quantitative information often results in market research that lacks ideas.

The Stone Wheel—What One Focus Group Said

Watch the video to see a funny spoof on the usefulness—or lack of usefulness—of focus groups.

Descriptive Research

Anything that can be observed and counted falls into the category of descriptive research design. A study using a descriptive research design involves gathering hard numbers, often via surveys, to describe or measure a phenomenon so as to answer the questions of who , what , where , when , and how . “On a scale of 1–5, how satisfied were you with your service?” is a question that illustrates the information a descriptive research design is supposed to capture.

Physiological measurements also fall into the category of descriptive design. Physiological measurements measure people’s involuntary physical responses to marketing stimuli, such as an advertisement. Elsewhere, we explained that researchers have gone so far as to scan the brains of consumers to see what they really think about products versus what they say about them. Eye tracking is another cutting-edge type of physiological measurement. It involves recording the movements of a person’s eyes when they look at some sort of stimulus, such as a banner ad or a Web page. The Walt Disney Company has a research facility in Austin, Texas, that it uses to take physical measurements of viewers when they see Disney programs and advertisements. The facility measures three types of responses: people’s heart rates, skin changes, and eye movements (eye tracking) (Spangler, 2009).

Figure 10.9

A woman shows off her headgear for an eye-tracking study. The gear’s not exactly a fashion statement but . . .

lawrencegs – Google Glass – CC BY 2.0.

A strictly descriptive research design instrument—a survey, for example—can tell you how satisfied your customers are. It can’t, however, tell you why. Nor can an eye-tracking study tell you why people’s eyes tend to dwell on certain types of banner ads—only that they do. To answer “why” questions an exploratory research design or causal research design is needed (Wagner, 2007).

Causal Research

Causal research design examines cause-and-effect relationships. Using a causal research design allows researchers to answer “what if” types of questions. In other words, if a firm changes X (say, a product’s price, design, placement, or advertising), what will happen to Y (say, sales or customer loyalty)? To conduct causal research, the researcher designs an experiment that “controls,” or holds constant, all of a product’s marketing elements except one (or using advanced techniques of research, a few elements can be studied at the same time). The one variable is changed, and the effect is then measured. Sometimes the experiments are conducted in a laboratory using a simulated setting designed to replicate the conditions buyers would experience. Or the experiments may be conducted in a virtual computer setting.

You might think setting up an experiment in a virtual world such as the online game Second Life would be a viable way to conduct controlled marketing research. Some companies have tried to use Second Life for this purpose, but the results have been somewhat mixed as to whether or not it is a good medium for marketing research. The German marketing research firm Komjuniti was one of the first “real-world” companies to set up an “island” in Second Life upon which it could conduct marketing research. However, with so many other attractive fantasy islands in which to play, the company found it difficult to get Second Life residents, or players, to voluntarily visit the island and stay long enough so meaningful research could be conducted. (Plus, the “residents,” or players, in Second Life have been known to protest corporations invading their world. When the German firm Komjuniti created an island in Second Life to conduct marketing research, the residents showed up waving signs and threatening to boycott the island.) (Wagner, 2007)

Why is being able to control the setting so important? Let’s say you are an American flag manufacturer and you are working with Walmart to conduct an experiment to see where in its stores American flags should be placed so as to increase their sales. Then the terrorist attacks of 9/11 occur. In the days afterward, sales skyrocketed—people bought flags no matter where they were displayed. Obviously, the terrorist attacks in the United States would have skewed the experiment’s data.

An experiment conducted in a natural setting such as a store is referred to as a field experiment . Companies sometimes do field experiments either because it is more convenient or because they want to see if buyers will behave the same way in the “real world” as in a laboratory or on a computer. The place the experiment is conducted or the demographic group of people the experiment is administered to is considered the test market . Before a large company rolls out a product to the entire marketplace, it will often place the offering in a test market to see how well it will be received. For example, to compete with MillerCoors’ sixty-four-calorie beer MGD 64, Anheuser-Busch recently began testing its Select 55 beer in certain cities around the country (McWilliams, 2009).

Figure 10.10

Select 55 beer: Coming soon to a test market near you? (If you’re on a diet, you have to hope so!)

Martine – Le champagne – CC BY-NC 2.0.

Many companies use experiments to test all of their marketing communications. For example, the online discount retailer O.co (formerly called Overstock.com) carefully tests all of its marketing offers and tracks the results of each one. One study the company conducted combined twenty-six different variables related to offers e-mailed to several thousand customers. The study resulted in a decision to send a group of e-mails to different segments. The company then tracked the results of the sales generated to see if they were in line with the earlier experiment it had conducted that led it to make the offer.

Step 3: Design the Data-Collection Forms

If the behavior of buyers is being formally observed, and a number of different researchers are conducting observations, the data obviously need to be recorded on a standardized data-collection form that’s either paper or electronic. Otherwise, the data collected will not be comparable. The items on the form could include a shopper’s sex; his or her approximate age; whether the person seemed hurried, moderately hurried, or unhurried; and whether or not he or she read the label on products, used coupons, and so forth.

The same is true when it comes to surveying people with questionnaires. Surveying people is one of the most commonly used techniques to collect quantitative data. Surveys are popular because they can be easily administered to large numbers of people fairly quickly. However, to produce the best results, the questionnaire for the survey needs to be carefully designed.

Questionnaire Design

Most questionnaires follow a similar format: They begin with an introduction describing what the study is for, followed by instructions for completing the questionnaire and, if necessary, returning it to the market researcher. The first few questions that appear on the questionnaire are usually basic, warm-up type of questions the respondent can readily answer, such as the respondent’s age, level of education, place of residence, and so forth. The warm-up questions are then followed by a logical progression of more detailed, in-depth questions that get to the heart of the question being researched. Lastly, the questionnaire wraps up with a statement that thanks the respondent for participating in the survey and information and explains when and how they will be paid for participating. To see some examples of questionnaires and how they are laid out, click on the following link: http://cas.uah.edu/wrenb/mkt343/Project/Sample%20Questionnaires.htm .

How the questions themselves are worded is extremely important. It’s human nature for respondents to want to provide the “correct” answers to the person administering the survey, so as to seem agreeable. Therefore, there is always a hazard that people will try to tell you what you want to hear on a survey. Consequently, care needs to be taken that the survey questions are written in an unbiased, neutral way. In other words, they shouldn’t lead a person taking the questionnaire to answer a question one way or another by virtue of the way you have worded it. The following is an example of a leading question.

Don’t you agree that teachers should be paid more ?

The questions also need to be clear and unambiguous. Consider the following question:

Which brand of toothpaste do you use ?

The question sounds clear enough, but is it really? What if the respondent recently switched brands? What if she uses Crest at home, but while away from home or traveling, she uses Colgate’s Wisp portable toothpaste-and-brush product? How will the respondent answer the question? Rewording the question as follows so it’s more specific will help make the question clearer:

Which brand of toothpaste have you used at home in the past six months? If you have used more than one brand, please list each of them 1 .

Sensitive questions have to be asked carefully. For example, asking a respondent, “Do you consider yourself a light, moderate, or heavy drinker?” can be tricky. Few people want to admit to being heavy drinkers. You can “soften” the question by including a range of answers, as the following example shows:

How many alcoholic beverages do you consume in a week ?

• __0–5 alcoholic beverages
• __5–10 alcoholic beverages
• __10–15 alcoholic beverages

Many people don’t like to answer questions about their income levels. Asking them to specify income ranges rather than divulge their actual incomes can help.

Other research question “don’ts” include using jargon and acronyms that could confuse people. “How often do you IM?” is an example. Also, don’t muddy the waters by asking two questions in the same question, something researchers refer to as a double-barreled question . “Do you think parents should spend more time with their children and/or their teachers?” is an example of a double-barreled question.

Open-ended questions , or questions that ask respondents to elaborate, can be included. However, they are harder to tabulate than closed-ended questions , or questions that limit a respondent’s answers. Multiple-choice and yes-and-no questions are examples of closed-ended questions.

Testing the Questionnaire

You have probably heard the phrase “garbage in, garbage out.” If the questions are bad, the information gathered will be bad, too. One way to make sure you don’t end up with garbage is to test the questionnaire before sending it out to find out if there are any problems with it. Is there enough space for people to elaborate on open-ended questions? Is the font readable? To test the questionnaire, marketing research professionals first administer it to a number of respondents face to face. This gives the respondents the chance to ask the researcher about questions or instructions that are unclear or don’t make sense to them. The researcher then administers the questionnaire to a small subset of respondents in the actual way the survey is going to be disseminated, whether it’s delivered via phone, in person, by mail, or online.

Getting people to participate and complete questionnaires can be difficult. If the questionnaire is too long or hard to read, many people won’t complete it. So, by all means, eliminate any questions that aren’t necessary. Of course, including some sort of monetary incentive for completing the survey can increase the number of completed questionnaires a market researcher will receive.

Step 4: Specify the Sample

Once you have created your questionnaire or other marketing study, how do you figure out who should participate in it? Obviously, you can’t survey or observe all potential buyers in the marketplace. Instead, you must choose a sample. A sample is a subset of potential buyers that are representative of your entire target market, or population being studied. Sometimes market researchers refer to the population as the universe to reflect the fact that it includes the entire target market, whether it consists of a million people, a hundred thousand, a few hundred, or a dozen. “All unmarried people over the age of eighteen who purchased Dirt Devil steam cleaners in the United States during 2011” is an example of a population that has been defined.

Obviously, the population has to be defined correctly. Otherwise, you will be studying the wrong group of people. Not defining the population correctly can result in flawed research, or sampling error. A sampling error is any type of marketing research mistake that results because a sample was utilized. One criticism of Internet surveys is that the people who take these surveys don’t really represent the overall population. On average, Internet survey takers tend to be more educated and tech savvy. Consequently, if they solely constitute your population, even if you screen them for certain criteria, the data you collect could end up being skewed.

The next step is to put together the sampling frame , which is the list from which the sample is drawn. The sampling frame can be put together using a directory, customer list, or membership roster (Wrenn et. al., 2007). Keep in mind that the sampling frame won’t perfectly match the population. Some people will be included on the list who shouldn’t be. Other people who should be included will be inadvertently omitted. It’s no different than if you were to conduct a survey of, say, 25 percent of your friends, using friends’ names you have in your cell phone. Most of your friends’ names are likely to be programmed into your phone, but not all of them. As a result, a certain degree of sampling error always occurs.

There are two main categories of samples in terms of how they are drawn: probability samples and nonprobability samples. A probability sample is one in which each would-be participant has a known and equal chance of being selected. The chance is known because the total number of people in the sampling frame is known. For example, if every other person from the sampling frame were chosen, each person would have a 50 percent chance of being selected.

A nonprobability sample is any type of sample that’s not drawn in a systematic way. So the chances of each would-be participant being selected can’t be known. A convenience sample is one type of nonprobability sample. It is a sample a researcher draws because it’s readily available and convenient to do so. Surveying people on the street as they pass by is an example of a convenience sample. The question is, are these people representative of the target market?

For example, suppose a grocery store needed to quickly conduct some research on shoppers to get ready for an upcoming promotion. Now suppose that the researcher assigned to the project showed up between the hours of 10 a.m. and 12 p.m. on a weekday and surveyed as many shoppers as possible. The problem is that the shoppers wouldn’t be representative of the store’s entire target market. What about commuters who stop at the store before and after work? Their views wouldn’t be represented. Neither would people who work the night shift or shop at odd hours. As a result, there would be a lot of room for sampling error in this study. For this reason, studies that use nonprobability samples aren’t considered as accurate as studies that use probability samples. Nonprobability samples are more often used in exploratory research.

Lastly, the size of the sample has an effect on the amount of sampling error. Larger samples generally produce more accurate results. The larger your sample is, the more data you will have, which will give you a more complete picture of what you’re studying. However, the more people surveyed or studied, the more costly the research becomes.

Statistics can be used to determine a sample’s optimal size. If you take a marketing research or statistics class, you will learn more about how to determine the optimal size.

Of course, if you hire a marketing research company, much of this work will be taken care of for you. Many marketing research companies, like ResearchNow, maintain panels of prescreened people they draw upon for samples. In addition, the marketing research firm will be responsible for collecting the data or contracting with a company that specializes in data collection. Data collection is discussed next.

Step 5: Collect the Data

As we have explained, primary marketing research data can be gathered in a number of ways. Surveys, taking physical measurements, and observing people are just three of the ways we discussed. If you’re observing customers as part of gathering the data, keep in mind that if shoppers are aware of the fact, it can have an effect on their behavior. For example, if a customer shopping for feminine hygiene products in a supermarket aisle realizes she is being watched, she could become embarrassed and leave the aisle, which would adversely affect your data. To get around problems such as these, some companies set up cameras or two-way mirrors to observe customers. Organizations also hire mystery shoppers to work around the problem. A mystery shopper is someone who is paid to shop at a firm’s establishment or one of its competitors to observe the level of service, cleanliness of the facility, and so forth, and report his or her findings to the firm.

Make Extra Money as a Mystery Shopper

Watch the YouTube video to get an idea of how mystery shopping works.

Survey data can be collected in many different ways and combinations of ways. The following are the basic methods used:

• Face-to-face (can be computer aided)
• Telephone (can be computer aided or completely automated)
• Mail and hand delivery
• E-mail and the Web

A face-to-face survey is, of course, administered by a person. The surveys are conducted in public places such as in shopping malls, on the street, or in people’s homes if they have agreed to it. In years past, it was common for researchers in the United States to knock on people’s doors to gather survey data. However, randomly collected door-to-door interviews are less common today, partly because people are afraid of crime and are reluctant to give information to strangers (McDaniel & Gates, 1998).

Nonetheless, “beating the streets” is still a legitimate way questionnaire data is collected. When the U.S. Census Bureau collects data on the nation’s population, it hand delivers questionnaires to rural households that do not have street-name and house-number addresses. And Census Bureau workers personally survey the homeless to collect information about their numbers. Face-to-face surveys are also commonly used in third world countries to collect information from people who cannot read or lack phones and computers.

A plus of face-to-face surveys is that they allow researchers to ask lengthier, more complex questions because the people being surveyed can see and read the questionnaires. The same is true when a computer is utilized. For example, the researcher might ask the respondent to look at a list of ten retail stores and rank the stores from best to worst. The same question wouldn’t work so well over the telephone because the person couldn’t see the list. The question would have to be rewritten. Another drawback with telephone surveys is that even though federal and state “do not call” laws generally don’t prohibit companies from gathering survey information over the phone, people often screen such calls using answering machines and caller ID.

Probably the biggest drawback of both surveys conducted face-to-face and administered over the phone by a person is that they are labor intensive and therefore costly. Mailing out questionnaires is costly, too, and the response rates can be rather low. Think about why that might be so: if you receive a questionnaire in the mail, it is easy to throw it in the trash; it’s harder to tell a market researcher who approaches you on the street that you don’t want to be interviewed.

By contrast, gathering survey data collected by a computer, either over the telephone or on the Internet, can be very cost-effective and in some cases free. SurveyMonkey and Zoomerang are two Web sites that will allow you to create online questionnaires, e-mail them to up to one hundred people for free, and view the responses in real time as they come in. For larger surveys, you have to pay a subscription price of a few hundred dollars. But that still can be extremely cost-effective. The two Web sites also have a host of other features such as online-survey templates you can use to create your questionnaire, a way to set up automatic reminders sent to people who haven’t yet completed their surveys, and tools you can use to create graphics to put in your final research report. To see how easy it is to put together a survey in SurveyMonkey, click on the following link: http://help.surveymonkey.com/app/tutorials/detail/a_id/423 .

Like a face-to-face survey, an Internet survey can enable you to show buyers different visuals such as ads, pictures, and videos of products and their packaging. Web surveys are also fast, which is a major plus. Whereas face-to-face and mailed surveys often take weeks to collect, you can conduct a Web survey in a matter of days or even hours. And, of course, because the information is electronically gathered it can be automatically tabulated. You can also potentially reach a broader geographic group than you could if you had to personally interview people. The Zoomerang Web site allows you to create surveys in forty different languages.

Another plus for Web and computer surveys (and electronic phone surveys) is that there is less room for human error because the surveys are administered electronically. For instance, there’s no risk that the interviewer will ask a question wrong or use a tone of voice that could mislead the respondents. Respondents are also likely to feel more comfortable inputting the information into a computer if a question is sensitive than they would divulging the information to another person face-to-face or over the phone. Given all of these advantages, it’s not surprising that the Internet is quickly becoming the top way to collect primary data. However, like mail surveys, surveys sent to people over the Internet are easy to ignore.

Lastly, before the data collection process begins, the surveyors and observers need to be trained to look for the same things, ask questions the same way, and so forth. If they are using rankings or rating scales, they need to be “on the same page,” so to speak, as to what constitutes a high ranking or a low ranking. As an analogy, you have probably had some teachers grade your college papers harder than others. The goal of training is to avoid a wide disparity between how different observers and interviewers record the data.

Figure 10.11

Training people so they know what constitutes different ratings when they are collecting data will improve the quality of the information gathered in a marketing research study.

Ricardo Rodriquez – Satisfaction survey – CC BY-NC-ND 2.0.

For example, if an observation form asks the observers to describe whether a shopper’s behavior is hurried, moderately hurried, or unhurried, they should be given an idea of what defines each rating. Does it depend on how much time the person spends in the store or in the individual aisles? How fast they walk? In other words, the criteria and ratings need to be spelled out.

Collecting International Marketing Research Data

Gathering marketing research data in foreign countries poses special challenges. However, that doesn’t stop firms from doing so. Marketing research companies are located all across the globe, in fact. Eight of the ten largest marketing research companies in the world are headquartered in the United States. However, five of these eight firms earn more of their revenues abroad than they do in the United States. There’s a reason for this: many U.S. markets were saturated, or tapped out, long ago in terms of the amount that they can grow. Coke is an example. As you learned earlier in the book, most of the Coca-Cola Company’s revenues are earned in markets abroad. To be sure, the United States is still a huge market when it comes to the revenues marketing research firms generate by conducting research in the country: in terms of their spending, American consumers fuel the world’s economic engine. Still, emerging countries with growing middle classes, such as China, India, and Brazil, are hot new markets companies want to tap.

What kind of challenges do firms face when trying to conduct marketing research abroad? As we explained, face-to-face surveys are commonly used in third world countries to collect information from people who cannot read or lack phones and computers. However, face-to-face surveys are also common in Europe, despite the fact that phones and computers are readily available. In-home surveys are also common in parts of Europe. By contrast, in some countries, including many Asian countries, it’s considered taboo or rude to try to gather information from strangers either face-to-face or over the phone. In many Muslim countries, women are forbidden to talk to strangers.

And how do you figure out whom to research in foreign countries? That in itself is a problem. In the United States, researchers often ask if they can talk to the heads of households to conduct marketing research. But in countries in which domestic servants or employees are common, the heads of households aren’t necessarily the principal shoppers; their domestic employees are (Malhotra).

Translating surveys is also an issue. Have you ever watched the TV comedians Jay Leno and David Letterman make fun of the English translations found on ethnic menus and products? Research tools such as surveys can suffer from the same problem. Hiring someone who is bilingual to translate a survey into another language can be a disaster if the person isn’t a native speaker of the language to which the survey is being translated.

One way companies try to deal with translation problems is by using back translation. When back translation is used, a native speaker translates the survey into the foreign language and then translates it back again to the original language to determine if there were gaps in meaning—that is, if anything was lost in translation. And it’s not just the language that’s an issue. If the research involves any visual images, they, too, could be a point of confusion. Certain colors, shapes, and symbols can have negative connotations in other countries. For example, the color white represents purity in many Western cultures, but in China, it is the color of death and mourning (Zouhali-Worrall, 2008). Also, look back at the cartoon-completion exercise in Figure 10.8 “Example of a Cartoon-Completion Projective Technique” . What would women in Muslim countries who aren’t allowed to converse with male sellers think of it? Chances are, the cartoon wouldn’t provide you with the information you’re seeking if Muslim women in some countries were asked to complete it.

One way marketing research companies are dealing with the complexities of global research is by merging with or acquiring marketing research companies abroad. The Nielsen Company is the largest marketing research company in the world. The firm operates in more than a hundred countries and employs more than forty thousand people. Many of its expansions have been the result of acquisitions and mergers.

Step 6: Analyze the Data

Step 6 involves analyzing the data to ensure it’s as accurate as possible. If the research is collected by hand using a pen and pencil, it’s entered into a computer. Or respondents might have already entered the information directly into a computer. For example, when Toyota goes to an event such as a car show, the automaker’s marketing personnel ask would-be buyers to complete questionnaires directly on computers. Companies are also beginning to experiment with software that can be used to collect data using mobile phones.

Once all the data is collected, the researchers begin the data cleaning , which is the process of removing data that have accidentally been duplicated (entered twice into the computer) or correcting data that have obviously been recorded wrong. A program such as Microsoft Excel or a statistical program such as Predictive Analytics Software (PASW, which was formerly known as SPSS) is then used to tabulate, or calculate, the basic results of the research, such as the total number of participants and how collectively they answered various questions. The programs can also be used to calculate averages, such as the average age of respondents, their average satisfaction, and so forth. The same can done for percentages, and other values you learned about, or will learn about, in a statistics course, such as the standard deviation, mean, and median for each question.

The information generated by the programs can be used to draw conclusions, such as what all customers might like or not like about an offering based on what the sample group liked or did not like. The information can also be used to spot differences among groups of people. For example, the research might show that people in one area of the country like the product better than people in another area. Trends to predict what might happen in the future can also be spotted.

If there are any open-ended questions respondents have elaborated upon—for example, “Explain why you like the current brand you use better than any other brand”—the answers to each are pasted together, one on top of another, so researchers can compare and summarize the information. As we have explained, qualitative information such as this can give you a fuller picture of the results of the research.

Part of analyzing the data is to see if it seems sound. Does the way in which the research was conducted seem sound? Was the sample size large enough? Are the conclusions that become apparent from it reasonable?

The two most commonly used criteria used to test the soundness of a study are (1) validity and (2) reliability. A study is valid if it actually tested what it was designed to test. For example, did the experiment you ran in Second Life test what it was designed to test? Did it reflect what could really happen in the real world? If not, the research isn’t valid. If you were to repeat the study, and get the same results (or nearly the same results), the research is said to be reliable . If you get a drastically different result if you repeat the study, it’s not reliable. The data collected, or at least some it, can also be compared to, or reconciled with, similar data from other sources either gathered by your firm or by another organization to see if the information seems on target.

Stage 7: Write the Research Report and Present Its Findings

If you end up becoming a marketing professional and conducting a research study after you graduate, hopefully you will do a great job putting the study together. You will have defined the problem correctly, chosen the right sample, collected the data accurately, analyzed it, and your findings will be sound. At that point, you will be required to write the research report and perhaps present it to an audience of decision makers. You will do so via a written report and, in some cases, a slide or PowerPoint presentation based on your written report.

The six basic elements of a research report are as follows.

• Title Page . The title page explains what the report is about, when it was conducted and by whom, and who requested it.
• Table of Contents . The table of contents outlines the major parts of the report, as well as any graphs and charts, and the page numbers on which they can be found.
• Executive Summary . The executive summary summarizes all the details in the report in a very quick way. Many people who receive the report—both executives and nonexecutives—won’t have time to read the entire report. Instead, they will rely on the executive summary to quickly get an idea of the study’s results and what to do about those results.

Methodology and Limitations . The methodology section of the report explains the technical details of how the research was designed and conducted. The section explains, for example, how the data was collected and by whom, the size of the sample, how it was chosen, and whom or what it consisted of (e.g., the number of women versus men or children versus adults). It also includes information about the statistical techniques used to analyze the data.

Every study has errors—sampling errors, interviewer errors, and so forth. The methodology section should explain these details, so decision makers can consider their overall impact. The margin of error is the overall tendency of the study to be off kilter—that is, how far it could have gone wrong in either direction. Remember how newscasters present the presidential polls before an election? They always say, “This candidate is ahead 48 to 44 percent, plus or minus 2 percent.” That “plus or minus” is the margin of error. The larger the margin of error is, the less likely the results of the study are accurate. The margin of error needs to be included in the methodology section.

• Findings . The findings section is a longer, fleshed-out version of the executive summary that goes into more detail about the statistics uncovered by the research that bolster the study’s findings. If you have related research or secondary data on hand that back up the findings, it can be included to help show the study did what it was designed to do.
• Recommendations . The recommendations section should outline the course of action you think should be taken based on the findings of the research and the purpose of the project. For example, if you conducted a global market research study to identify new locations for stores, make a recommendation for the locations (Mersdorf, 2009).

As we have said, these are the basic sections of a marketing research report. However, additional sections can be added as needed. For example, you might need to add a section on the competition and each firm’s market share. If you’re trying to decide on different supply chain options, you will need to include a section on that topic.

As you write the research report, keep your audience in mind. Don’t use technical jargon decision makers and other people reading the report won’t understand. If technical terms must be used, explain them. Also, proofread the document to ferret out any grammatical errors and typos, and ask a couple of other people to proofread behind you to catch any mistakes you might have missed. If your research report is riddled with errors, its credibility will be undermined, even if the findings and recommendations you make are extremely accurate.

Many research reports are presented via PowerPoint. If you’re asked to create a slideshow presentation from the report, don’t try to include every detail in the report on the slides. The information will be too long and tedious for people attending the presentation to read through. And if they do go to the trouble of reading all the information, they probably won’t be listening to the speaker who is making the presentation.

Instead of including all the information from the study in the slides, boil each section of the report down to key points and add some “talking points” only the presenter will see. After or during the presentation, you can give the attendees the longer, paper version of the report so they can read the details at a convenient time, if they choose to.

Key Takeaway

Step 1 in the marketing research process is to define the problem. Businesses take a look at what they believe are symptoms and try to drill down to the potential causes so as to precisely define the problem. The next task for the researcher is to put into writing the research objective, or goal, the research is supposed to accomplish. Step 2 in the process is to design the research. The research design is the “plan of attack.” It outlines what data you are going to gather, from whom, how, and when, and how you’re going to analyze it once it has been obtained. Step 3 is to design the data-collection forms, which need to be standardized so the information gathered on each is comparable. Surveys are a popular way to gather data because they can be easily administered to large numbers of people fairly quickly. However, to produce the best results, survey questionnaires need to be carefully designed and pretested before they are used. Step 4 is drawing the sample, or a subset of potential buyers who are representative of your entire target market. If the sample is not correctly selected, the research will be flawed. Step 5 is to actually collect the data, whether it’s collected by a person face-to-face, over the phone, or with the help of computers or the Internet. The data-collection process is often different in foreign countries. Step 6 is to analyze the data collected for any obvious errors, tabulate the data, and then draw conclusions from it based on the results. The last step in the process, Step 7, is writing the research report and presenting the findings to decision makers.

Review Questions

• Explain why it’s important to carefully define the problem or opportunity a marketing research study is designed to investigate.
• Describe the different types of problems that can occur when marketing research professionals develop questions for surveys.
• How does a probability sample differ from a nonprobability sample?
• What makes a marketing research study valid? What makes a marketing research study reliable?
• What sections should be included in a marketing research report? What is each section designed to do?

1 “Questionnaire Design,” QuickMBA , http://www.quickmba.com/marketing/research/qdesign (accessed December 14, 2009).

Barnes, B., “Disney Expert Uses Science to Draw Boy Viewers,” New York Times , April 15, 2009, http://www.nytimes.com/2009/04/14/arts/television/14boys.html?pagewanted=1&_r=1 (accessed December 14, 2009).

Burns A. and Ronald Bush, Marketing Research , 6th ed. (Upper Saddle River, NJ: Prentice Hall, 2010), 85.

Malhotra, N., Marketing Research: An Applied Approach , 6th ed. (Upper Saddle River, NJ: Prentice Hall), 764.

McDaniel, C. D. and Roger H. Gates, Marketing Research Essentials , 2nd ed. (Cincinnati: South-Western College Publishing, 1998), 61.

McWilliams, J., “A-B Puts Super-Low-Calorie Beer in Ring with Miller,” St. Louis Post-Dispatch , August 16, 2009, http://www.stltoday.com/business/next-matchup-light-weights-a-b-puts-super-low-calorie/article_47511bfe-18ca-5979-bdb9-0526c97d4edf.html (accessed April 13, 2012).

Mersdorf, S., “How to Organize Your Next Survey Report,” Cvent , August 24, 2009, http://survey.cvent.com/blog/cvent-survey/0/0/how-to-organize-your-next-survey-report (accessed December 14, 2009).

Rappeport A. and David Gelles, “Facebook to Form Alliance with Nielsen,” Financial Times , September 23, 2009, 16.

Spangler, T., “Disney Lab Tracks Feelings,” Multichannel News 30, no. 30 (August 3, 2009): 26.

Wagner, J., “Marketing in Second Life Doesn’t Work…Here Is Why!” GigaOM , April 4, 2007, http://gigaom.com/2007/04/04/3-reasons-why-marketing-in-second-life-doesnt-work (accessed December 14, 2009).

Wrenn, B., Robert E. Stevens, and David L. Loudon, Marketing Research: Text and Cases , 2nd ed. (Binghamton, NY: Haworth Press, 2007), 180.

Zouhali-Worrall, M., “Found in Translation: Avoiding Multilingual Gaffes,” CNNMoney.com , July 14, 2008, http://money.cnn.com/2008/07/07/smallbusiness/language_translation.fsb/index.htm (accessed December 14, 2009).

Principles of Marketing Copyright © 2015 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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Module 6: Marketing Information and Research

The marketing research process, learning objectives.

• Identify the steps of conducting a marketing research project

A Standard Approach to Research Inquiries

Marketing research is a useful and necessary tool for helping marketers and an organization’s executive leadership make wise decisions. Carrying out marketing research can involve highly specialized skills that go deeper than the information outlined in this module. However, it is important for any marketer to be familiar with the basic procedures and techniques of marketing research.

It is very likely that at some point a marketing professional will need to supervise an internal marketing research activity or to work with an outside marketing research firm to conduct a research project. Managers who understand the research function can do a better job of framing the problem and critically appraising the proposals made by research specialists. They are also in a better position to evaluate their findings and recommendations.

Periodically marketers themselves need to find solutions to marketing problems without the assistance of marketing research specialists inside or outside the company. If you are familiar with the basic procedures of marketing research, you can supervise and even conduct a reasonably satisfactory search for the information needed.

Step 1: Identify the Problem

The first step for any marketing research activity is to clearly identify and define the problem you are trying to solve. You start by stating the marketing or business problem you need to address and for which you need additional information to figure out a solution. Next, articulate the objectives for the research: What do you want to understand by the time the research project is completed? What specific information, guidance, or recommendations need to come out of the research in order to make it a worthwhile investment of the organization’s time and money?

It’s important to share the problem definition and research objectives with other team members to get their input and further refine your understanding of the problem and what is needed to solve it. At times, the problem you really need to solve is not the same problem that appears on the surface. Collaborating with other stakeholders helps refine your understanding of the problem, focus your thinking, and prioritize what you hope to learn from the research. Prioritizing your objectives is particularly helpful if you don’t have the time or resources to investigate everything you want.

To flesh out your understanding of the problem, it’s useful to begin brainstorming actual research questions you want to explore. What are the questions you need to answer in order to get to the research outcomes? What is the missing information that marketing research will help you find? The goal at this stage is to generate a set of preliminary, big-picture questions that will frame your research inquiry. You will revisit these research questions later in the process, but when you’re getting started, this exercise helps clarify the scope of the project, whom you need to talk to, what information may already be available, and where to look for the information you don’t yet have.

Applied Example: Marketing Research for Bookends

To illustrate the marketing research process, let’s return to Uncle Dan and his ailing bookstore, Bookends. You need a lot of information if you’re going to help Dan turn things around, so marketing research is a good idea. You begin by identifying the problem and then work to set down your research objectives and initial research questions:

Step 2: Develop a Research Plan

Once you have a problem definition, research objectives, and a preliminary set of research questions, the next step is to develop a research plan. Essential to this plan is identifying precisely what information you need to answer your questions and achieve your objectives. Do you need to understand customer opinions about something? Are you looking for a clearer picture of customer needs and related behaviors? Do you need sales, spending, or revenue data? Do you need information about competitors’ products, or insight about what will make prospective customers notice you? When do need the information, and what’s the time frame for getting it? What budget and resources are available?

Once you have clarified what kind of information you need and the timing and budget for your project, you can develop the research design. This details how you plan to collect and analyze the information you’re after. Some types of information are readily available through  secondary research and secondary data sources. Secondary research analyzes information that has already been collected for another purpose by a third party, such as a government agency, an industry association, or another company. Other types of information need to from talking directly to customers about your research questions. This is known as primary research , which collects primary data captured expressly for your research inquiry.   Marketing research projects may include secondary research, primary research, or both.

Depending on your objectives and budget, sometimes a small-scale project will be enough to get the insight and direction you need. At other times, in order to reach the level of certainty or detail required, you may need larger-scale research involving participation from hundreds or even thousands of individual consumers. The research plan lays out the information your project will capture—both primary and secondary data—and describes what you will do with it to get the answers you need. (Note: You’ll learn more about data collection methods and when to use them later in this module.)

Your data collection plan goes hand in hand with your analysis plan. Different types of analysis yield different types of results. The analysis plan should match the type of data you are collecting, as well as the outcomes your project is seeking and the resources at your disposal. Simpler research designs tend to require simpler analysis techniques. More complex research designs can yield powerful results, such as understanding causality and trade-offs in customer perceptions. However, these more sophisticated designs can require more time and money to execute effectively, both in terms of data collection and analytical expertise.

The research plan also specifies who will conduct the research activities, including data collection, analysis, interpretation, and reporting on results. At times a singlehanded marketing manager or research specialist runs the entire research project. At other times, a company may contract with a marketing research analyst or consulting firm to conduct the research. In this situation, the marketing manager provides supervisory oversight to ensure the research delivers on expectations.

Finally, the research plan indicates who will interpret the research findings and how the findings will be reported. This part of the research plan should consider the internal audience(s) for the research and what reporting format will be most helpful. Often, senior executives are primary stakeholders, and they’re anxious for marketing research to inform and validate their choices. When this is the case, getting their buy-in on the research plan is recommended to make sure that they are comfortable with the approach and receptive to the potential findings.

Applied Example: A Bookends Research Plan

You talk over the results of your problem identification work with Dan. He thinks you’re on the right track and wants to know what’s next. You explain that the next step is to put together a detailed plan for getting answers to the research questions.

Dan is enthusiastic, but he’s also short on money. You realize that such a financial constraint will limit what’s possible, but with Dan’s help you can do something worthwhile. Below is the research plan you sketch out:

Step 3: Conduct the Research

Conducting research can be a fun and exciting part of the marketing research process. After struggling with the gaps in your knowledge of market dynamics—which led you to embark on a marketing research project in the first place—now things are about to change. Conducting research begins to generate information that helps answer your urgent marketing questions.

Typically data collection begins by reviewing any existing research and data that provide some information or insight about the problem. As a rule, this is secondary research. Prior research projects, internal data analyses, industry reports, customer-satisfaction survey results, and other information sources may be worthwhile to review. Even though these resources may not answer your research questions fully, they may further illuminate the problem you are trying to solve. Secondary research and data sources are nearly always cheaper than capturing new information on your own. Your marketing research project should benefit from prior work wherever possible.

After getting everything you can from secondary research, it’s time to shift attention to primary research, if this is part of your research plan. Primary research involves asking questions and then listening to and/or observing the behavior of the target audience you are studying. In order to generate reliable, accurate results, it is important to use proper scientific methods for primary research data collection and analysis. This includes identifying the right individuals and number of people to talk to, using carefully worded surveys or interview scripts, and capturing data accurately.

Without proper techniques, you may inadvertently get bad data or discover bias in the responses that distorts the results and points you in the wrong direction. The module on Marketing Research Techniques discusses these issues in further detail, since the procedures for getting reliable data vary by research method.

Applied Example: Getting the Data on Bookends

Dan is on board with the research plan, and he’s excited to dig into the project. You start with secondary data, getting a dump of Dan’s sales data from the past two years, along with related information: customer name, zip code, frequency of purchase, gender, date of purchase, and discounts/promotions (if any).

You visit the U.S. Census Bureau Web site to download demographic data about your metro area. The data show all zip codes in the area, along with population size, gender breakdown, age ranges, income, and education levels.

The next part of the project is customer-survey data. You work with Dan to put together a short survey about customer attitudes toward Bookends, how often and why they come, where else they spend money on books and entertainment, and why they go other places besides Bookends. Dan comes up with the great idea of offering a 5 percent discount coupon to anyone who completes the survey. Although it eats into his profits, this scheme gets more people to complete the survey and buy books, so it’s worth it.

For a couple of days, you and Dan take turns doing “man on the street” interviews (you interview the guy in the red hat, for instance). You find people who say they’ve never been to Bookends and ask them a few questions about why they haven’t visited the store, where else they buy books and other entertainment, and what might get them interested in visiting Bookends sometime. This is all a lot of work, but for a zero-budget project, it’s coming together pretty well.

Step 4: Analyze and Report Findings

Analyzing the data obtained in a market survey involves transforming the primary and/or secondary data into useful information and insights that answer the research questions. This information is condensed into a format to be used by managers—usually a presentation or detailed report.

Analysis starts with formatting, cleaning, and editing the data to make sure that it’s suitable for whatever analytical techniques are being used. Next, data are tabulated to show what’s happening: What do customers actually think? What’s happening with purchasing or other behaviors? How do revenue figures actually add up? Whatever the research questions, the analysis takes source data and applies analytical techniques to provide a clearer picture of what’s going on. This process may involve simple or sophisticated techniques, depending on the research outcomes required. Common analytical techniques include regression analysis to determine correlations between factors; conjoint analysis to determine trade-offs and priorities; predictive modeling to anticipate patterns and causality; and analysis of unstructured data such as Internet search terms or social media posts to provide context and meaning around what people say and do.

Good analysis is important because the interpretation of research data—the “so what?” factor—depends on it. The analysis combs through data to paint a picture of what’s going on. The interpretation goes further to explain what the research data mean and make recommendations about what managers need to know and do based on the research results. For example, what is the short list of key findings and takeaways that managers should remember from the research? What are the market segments you’ve identified, and which ones should you target?  What are the primary reasons your customers choose your competitor’s product over yours, and what does this mean for future improvements to your product?

Individuals with a good working knowledge of the business should be involved in interpreting the data because they are in the best position to identify significant insights and make recommendations from the research findings. Marketing research reports incorporate both analysis and interpretation of data to address the project objectives.

The final report for a marketing research project may be in written form or slide-presentation format, depending on organizational culture and management preferences. Often a slide presentation is the preferred format for initially sharing research results with internal stakeholders. Particularly for large, complex projects, a written report may be a better format for discussing detailed findings and nuances in the data, which managers can study and reference in the future.

Applied Example: Analysis and Insights for Bookends

Getting the data was a bit of a hassle, but now you’ve got it, and you’re excited to see what it reveals. Your statistician cousin, Marina, turns out to be a whiz with both the sales data and the census data. She identified several demographic profiles in the metro area that looked a lot like lifestyle segments. Then she mapped Bookends’ sales data into those segments to show who is and isn’t visiting Bookends. After matching customer-survey data to the sales data, she broke down the segments further based on their spending levels and reasons they visit Bookends.

Gradually a clearer picture of Bookends’ customers is beginning to emerge: who they are, why they come, why they don’t come, and what role Bookends plays in their lives. Right away, a couple of higher-priority segments—based on their spending levels, proximity, and loyalty to Bookends—stand out. You and your uncle are definitely seeing some possibilities for making the bookstore a more prominent part of their lives. You capture these insights as “recommendations to be considered” while you evaluate the right marketing mix for each of the new segments you’d like to focus on.

Step 5: Take Action

Once the report is complete, the presentation is delivered, and the recommendations are made, the marketing research project is over, right? Wrong.

What comes next is arguably the most important step of all: taking action based on your research results.

If your project has done a good job interpreting the findings and translating them into recommendations for the marketing team and other areas of the business, this step may seem relatively straightforward. When the research results validate a path the organization is already on, the “take action” step can galvanize the team to move further and faster in that same direction.

Things are not so simple when the research results indicate a new direction or a significant shift is advisable. In these cases, it’s worthwhile to spend time helping managers understand the research, explain why it is wise to shift course, and explain how the business will benefit from the new path. As with any important business decision, managers must think deeply about the new approach and carefully map strategies, tactics, and available resources to plan effectively. By making the results available and accessible to managers and their execution teams, the marketing research project can serve as an ongoing guide and touchstone to help the organization plan, execute, and adjust course as it works toward desired goals and outcomes.

It is worth mentioning that many marketing research projects are never translated into management action. Sometimes this is because the report is too technical and difficult to understand. In other cases, the research conclusions fail to provide useful insights or solutions to the problem, or the report writer fails to offer specific suggestions for translating the research findings into management strategy. These pitfalls can be avoided by paying due attention to the research objectives throughout the project and allocating sufficient time and resources to do a good job interpreting research results for those who will need to act on them.

Applied Example: Bookends’ New Customer Campaign

Your research findings and recommendations identified three segments for Bookends to focus on. Based on the demographics, lifestyle, and spending patterns found during your marketing research, you’re able to name them: 1) Bored Empty-Nesters, 2) Busy Families, and 3) Hipster Wannabes. Dan has a decent-sized clientele across all three groups, and they are pretty good spenders when they come in. But until now he hasn’t done much to purposely attract any of them.

With newly identified segments in focus, you and Dan begin brainstorming about a marketing mix to target each group. What types of books and other products would appeal to each one? What activities or events would bring them into the store? Are there promotions or particular messages that would induce them to buy at Bookends instead of Amazon or another bookseller? How will Dan reach and communicate with each group? And what can you do to bring more new customers into the store within these target groups?

Even though Bookends is a real-life project with serious consequences for your uncle Dan, it’s also a fun laboratory where you can test out some of the principles you’re learning in your marketing class. You’re figuring out quickly what it’s like to be a marketer.

Well done, rookie!

Check Your Understanding

Answer the question(s) below to see how well you understand the topics covered in this outcome. This short quiz does  not  count toward your grade in the class, and you can retake it an unlimited number of times.

Use this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.

• Revision and Adaptation. Authored by : Lumen Learning. License : CC BY: Attribution
• Chapter 3: Marketing Research: An Aid to Decision Making, from Introducing Marketing. Authored by : John Burnett. Provided by : Global Text. Located at : http://solr.bccampus.ca:8001/bcc/file/ddbe3343-9796-4801-a0cb-7af7b02e3191/1/Core%20Concepts%20of%20Marketing.pdf . License : CC BY: Attribution
• Urban life (Version 2.0). Authored by : Ian D. Keating. Located at : https://www.flickr.com/photos/ian-arlett/19313315520/ . License : CC BY: Attribution

8 Key Steps of Marketing Research Process: Ultimate Guide

Marketing research is the backbone of successful business strategies, especially in the ever-evolving world of events. This guide dives into the 8 key steps of the marketing research process, giving you a roadmap to make smarter, data-driven decisions. Whether you're new to event planning or a seasoned pro, understanding these steps can help you boost attendance, improve engagement, and maximize your ROI.

We'll break down each step, from defining your problem to evaluating your results, in easy-to-understand terms. You'll learn how to collect meaningful data, analyze it effectively, and turn those insights into action. Plus, we'll show you how to avoid common pitfalls and apply best practices that can save you time and money.

By the end of this guide, you'll have a solid grasp on how to conduct marketing research that can transform your event planning strategy. Ready to level up your event game? Let's dive in!

What is Marketing Research?

Marketing research is the systematic process of gathering, analyzing, and interpreting information about a market, product, or service. It's a crucial tool for businesses to make informed decisions, understand their customers better, and stay competitive in the market.

The main purpose of marketing research is to reduce uncertainty in decision-making. It helps companies:

• Identify market opportunities
• Understand customer needs and preferences
• Evaluate the effectiveness of marketing strategies
• Track competitors' activities

By conducting thorough marketing research, businesses can minimize risks and maximize their chances of success. It's particularly valuable for event organizers who need to understand their target audience and create compelling experiences.

For example, an event planner might use marketing research to determine the best date, venue, and content for an upcoming conference. This data-driven approach can significantly boost attendance and participant satisfaction.

To streamline the event planning process, tools like EventX's event registration system can be invaluable. They not only help manage registrations but also provide valuable data for ongoing marketing research.

Learn more about EventX's event registration system

The 8 Key Steps of the Marketing Research Process

Marketing research isn't just about collecting data. It's a structured process that helps businesses make informed decisions. Let's break down the 8 key steps that make up this crucial process.

• Define the Problem or Opportunity: This is where it all starts. You need to clearly identify what you're trying to solve or achieve. For example, you might want to understand why your event attendance is dropping.
• Develop the Research Plan: Here, you decide how you'll gather information. Will you use surveys, interviews, or both? How many people will you include in your study?
• Collect Data: This step involves gathering the information you need. You might use tools like EventX's lead finder to help with this.
• Analyze the Data: Once you have your data, it's time to make sense of it. Look for patterns and insights that answer your initial question.
• Present the Findings: Share what you've learned in a clear, easy-to-understand way. Visual aids can be really helpful here.
• Make Decisions: Use your findings to decide what actions to take. Maybe you need to change your event marketing strategy?
• Implement the Decision: Put your plan into action. This might involve using tools like EventX's event ticketing platform.
• Evaluate the Results: Finally, check if your actions made a difference. Did event attendance improve? If not, you might need to start the process again.

Remember, marketing research is an ongoing process. It helps you stay in tune with your audience and make better business decisions.

1. Define the Problem or Opportunity

Let's kick things off with the first crucial step in marketing research: nailing down the problem or opportunity. It's like setting your GPS before a road trip - you need to know where you're going before you start driving.

Why is this step so important? Simple. If you don't know what you're looking for, you'll waste time and resources chasing the wrong leads. It's like trying to fix a leaky faucet when your real problem is a broken water heater.

So, how do you define your research objectives? Start by asking questions. What's bugging you about your current situation? What do you want to achieve? Be specific. Instead of saying "We want more customers," try "We want to increase event attendance by 25% in the next six months."

Here's a real-world example: imagine you're running a series of tech conferences, but attendance has been dropping. Your research objective might be: "To understand why attendance at our tech conferences has declined by 30% over the past year."

Remember, a well-defined problem is half solved. So take your time with this step - it'll make the rest of your research journey much smoother.

2. Develop the Research Plan

Once you've nailed down your research objectives, it's time to craft your game plan. This step is all about choosing the right research methods and figuring out who you're going to study.

First up, decide whether you're going qualitative or quantitative - or maybe a mix of both. Qualitative research, like focus groups or interviews, gives you deep insights into people's thoughts and feelings. Quantitative research, such as surveys, gives you hard numbers to crunch.

Next, think about your sample size and who you're going to include. You want a group that represents your target audience well. Remember, bigger isn't always better - a well-chosen smaller sample can sometimes give you more accurate results than a larger, poorly selected one.

Don't forget to consider your budget and timeline when planning. These factors can influence your choice of methods and sample size.

To make your research more efficient, consider using tech tools. For example, EventX's lead finder feature can help you identify potential participants for your research, saving you time and effort in the recruitment process.

By the end of this step, you should have a clear plan outlining your research methods, sample, timeline, and budget. This roadmap will guide you through the rest of the process, keeping you focused and on track.

EventX's lead finder feature

3. Collect Relevant Data and Information

Gathering the right data is crucial for your marketing research. You've got two main ways to go about this: primary and secondary data collection.

Primary data is info you collect firsthand. Think surveys, interviews, or focus groups. It's tailored to your specific needs but can be time-consuming and pricey.

Secondary data, on the other hand, is existing info from sources like industry reports or government databases. It's usually cheaper and faster to get, but might not be as specific to your needs.

Remember, the key is to choose methods that align with your research objectives. If you're trying to understand why event attendance is dropping, a mix of surveys and interviews might be your best bet.

Whatever method you choose, make sure your data collection is consistent and unbiased. This will help ensure your results are reliable and actionable.

4. Analyze the Data

Once you've collected your data, it's time to roll up your sleeves and make sense of it all. Data analysis is where the rubber meets the road in marketing research. It's about turning raw numbers and feedback into actionable insights.

Start by organizing your data. Use spreadsheets or specialized software to sort and categorize information. Look for patterns and trends. Are certain responses more common than others? Do you see any surprising correlations?

For quantitative data, basic statistical analysis can be your best friend. Calculate averages, percentages, and standard deviations. These can give you a quick snapshot of your data's story. For qualitative data, content analysis techniques can help you identify themes and sentiments.

Don't shy away from data visualization. Graphs and charts can make complex data easier to understand and present. Tools like Tableau or even Excel can help create compelling visuals.

Remember, the goal isn't just to crunch numbers. It's to answer your research questions and provide insights that can drive decision-making. Always tie your analysis back to your original objectives.

5. Present the Findings

Once you've crunched the numbers, it's time to share your insights. Presenting your findings clearly is crucial for driving action. Start by crafting a concise executive summary that highlights key takeaways. Use visuals like charts and graphs to make complex data easy to understand at a glance.

When creating your presentation, remember your audience. Tailor your language and level of detail to their needs and expertise. For example, C-suite executives might want high-level insights, while marketing teams may need more granular data.

Don't just dump data on your audience. Tell a story with your findings. What trends did you uncover? What do they mean for the business? Use real-world examples to bring your insights to life.

Finally, make your presentation interactive. Encourage questions and discussion. This helps ensure everyone understands the implications of your research.

For event organizers, presenting findings on attendee behavior can be particularly powerful. Understanding what drives attendance can help you optimize future events. Check out EventX's blog on best event registration platforms for ideas on how to gather and present this kind of data effectively.

EventX's blog on best event registration platforms

6. Make Data-Driven Decisions

Once you've got your research findings, it's time to put them to work. Making data-driven decisions means using the insights you've gathered to shape your strategy. But it's not just about blindly following numbers - you need to balance data with your experience and gut feeling.

For example, let's say your research shows that people are skipping your events because they're too long. You might decide to shorten your events or break them into smaller sessions. But you'd also want to consider other factors, like the content quality and networking opportunities, before making drastic changes.

Remember, data should guide your decisions, not dictate them. It's about finding that sweet spot between what the numbers tell you and what you know about your audience and industry.

When making decisions:

• Review your research objectives
• Identify key findings that address these objectives
• Brainstorm potential actions based on these findings
• Evaluate each option considering both data and practical factors
• Choose the most promising strategy to implement

By following this approach, you're more likely to make choices that truly improve your events and boost attendance.

7. Implement the Decision

Once you've made data-driven decisions based on your marketing research, it's time to put them into action. This step is crucial for turning insights into tangible results. Start by creating a detailed action plan that outlines specific steps, responsibilities, and timelines.

For example, if your research shows that potential attendees prefer virtual events, you might decide to shift your focus to online platforms. Your action plan could include:

• Selecting a virtual event platform
• Training your team on new technologies
• Adjusting your marketing strategy to promote virtual events

Assign clear responsibilities to team members and set realistic deadlines for each task. This ensures accountability and keeps the implementation process on track.

Remember, implementation isn't a one-time event. It's an ongoing process that requires monitoring and adjustment. Be prepared to make changes as you go, based on real-world feedback and results.

To streamline your event management process during implementation, consider using an Event ticketing platform like EventX. It can help you manage registrations, ticket sales, and attendee data efficiently, making it easier to implement your research-based decisions.

8. Evaluate the Results

After implementing decisions based on your marketing research, it's crucial to evaluate the results. This step helps you understand the impact of your actions and guides future strategies.

Start by comparing your current metrics to your baseline data. For events, this might include attendance rates, engagement levels, or revenue generated. Use tools like Google Analytics or your event management platform to track these metrics easily.

Don't just look at numbers – gather qualitative feedback too. Send out post-event surveys or conduct focus groups to get deeper insights. This human element can reveal unexpected outcomes or areas for improvement.

Remember, evaluation is an ongoing process. Set up regular check-ins to monitor progress over time. This allows you to make quick adjustments if needed and keeps your strategy agile.

If results don't meet expectations, don't panic. Use this as a learning opportunity. Analyze what went wrong and brainstorm ways to improve for next time.

Lastly, share your findings with your team. Celebrate successes and discuss challenges openly. This fosters a culture of continuous improvement and data-driven decision making.

Common Challenges in the Marketing Research Process

Let's face it: marketing research isn't always smooth sailing. Here are some common hurdles you might encounter:

Budget constraints can be a real pain. Quality research often comes with a hefty price tag, and many businesses struggle to allocate sufficient funds. This can lead to cutting corners or settling for less reliable data.

Time limitations are another biggie. In today's fast-paced market, there's often pressure to get results quickly. But rushing the process can compromise the quality of your findings.

Data quality issues can throw a wrench in the works too. It's not just about quantity – the information you gather needs to be accurate and relevant. Unreliable data can lead to misguided decisions.

How can you tackle these challenges? Consider using cost-effective online survey tools or leveraging existing customer data. Prioritize your research objectives to make the most of limited time. And always double-check your data sources for reliability.

Remember, even with these hurdles, good marketing research is worth the effort. It provides invaluable insights that can give your business a competitive edge.

Best Practices for Effective Marketing Research

To get the most out of your marketing research, it's crucial to follow some best practices. First, stay objective throughout the process. Your personal biases can skew results, so approach each step with an open mind.

Ethical research practices are non-negotiable. Always get consent from participants and protect their privacy. Be transparent about your research goals and how you'll use the data.

Leverage technology to boost efficiency. Use online survey tools, data analysis software, and project management platforms to streamline your work. For example, EventX's event registration system can help collect valuable attendee data efficiently.

Keep your research focused on your objectives. It's easy to get sidetracked by interesting but irrelevant data. Stick to information that directly addresses your research questions.

Lastly, don't forget to validate your findings. Cross-check data from multiple sources and consider getting peer reviews. This helps ensure your conclusions are solid and actionable.

By following these practices, you'll conduct more effective research that leads to better business decisions. Remember, good research is an investment in your company's future success.

Let's wrap this up. We've walked through the 8 key steps of the marketing research process, from defining the problem to evaluating results. These steps aren't just theory – they're practical tools you can use right now to boost your marketing game.

Remember, good marketing research isn't about guesswork. It's about being systematic, thorough, and objective. By following these steps, you're setting yourself up for success, whether you're planning an event or launching a new product.

Don't be intimidated by the process. Start small if you need to, but start somewhere. Maybe begin with a simple survey at your next event. Use the data to make one improvement, then build from there.

The more you practice these steps, the more natural they'll become. And the payoff? Better decisions, more effective marketing, and ultimately, better results for your business or events.

So, what are you waiting for? Take what you've learned here and put it into action. Your next marketing win could be just a research project away.

Additional Resources

Ready to dive deeper into marketing research? Here are some valuable resources to expand your knowledge and skills:

• Books: Check out "Marketing Research" by Naresh K. Malhotra for a comprehensive guide on research methods.
• Online Courses: Platforms like Coursera and edX offer marketing research courses from top universities.
• Industry Reports: Access free reports from sites like Statista or eMarketer for current market trends.
• Webinars: Join live or on-demand webinars from the American Marketing Association for expert insights.
• Tools: Try Google Analytics for web data or SurveyMonkey for easy survey creation.
• Podcasts: Listen to "Marketing Research Radio" for the latest industry discussions.
• Blogs: Follow the Greenbook Blog for cutting-edge research techniques and case studies.

Remember, the key to successful marketing research is staying updated and applying what you learn. 

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The 4 Ps Of Marketing

Updated: Jun 18, 2024, 8:52am

Table of Contents

What are the four ps of marketing, the first p: product, the second p: price, the third p: place, the fourth p: promotion, examples of the four ps in marketing, how to use the 4 ps of marketing, what’s the difference between the four ps and the seven ps, frequently asked questions (faqs).

The four Ps of marketing—product, price, place and promotion—serve as a framework for marketing success. Sometimes referred to as the marketing mix, the four Ps help guide businesses in the creation of winning business ideas that deliver what customers want, where and how they want it at a price that’s most appealing.

Building a solid marketing plan structured around the four Ps can help you increase awareness for your brand and its products or services, drive sales and achieve overall stronger bottom-line results.

The idea of a marketing mix was first popularized in the 1950s by Neil Bordon, a Professor of Advertising at Harvard. Drawing from Bordon’s work along with the work of other prominent marketing and business leaders, E. Jerome McCarthy introduced the four Ps of marketing in his book Basic Marketing: A Managerial Approach .

You may recall from your Intro to Marketing college course that product, price, place and promotion are the four Ps of marketing. While the four Ps have been around for decades, the concept is just as relevant to businesses today as it was when the four Ps were first introduced.

The first P in the four Ps of marketing is product. A product can come in a variety of forms, such as a physical product, digital product, service, event or experience. The product is the actual item you are selling; the features or attributes you include or build into your products can help you differentiate your offerings from your competitors.

There are many dimensions that you must consider when deciding which products to develop and sell. Does your product solve a problem? Or does the product fulfill consumers’ wants and desires? Why would someone want to buy it? Product quality, design, packaging, variety, adaptability, sustainability, safety and production must all be considered.

Your marketing plan should outline the key features of your product, what makes it unique and who your target audience is for that product. This will help ensure you meet the needs and desires of your ideal audience.

The second P in the four Ps of marketing is price. Naturally, you need to price your products in a way that allows you to operate profitably. However, pricing is far more complex than calculating the cost of goods and adding on an additional amount that will let you meet your desired profit margin. How you price a product will convey its relative value and quality.

Walmart uses low-cost pricing to attract a broad audience of value-driven shoppers, while Saks Fifth Avenue sustains much higher prices, which is common among luxury goods sellers who target wealthy buyers. If you decide to serve different types of customers, you’ll need to develop a customer segmentation strategy , which will include pricing strategies for each segment you serve.

There’s also a psychological factor in product pricing, which is why products are often priced at $9.99 rather than $10. Products with prices ending in .99 seem cheaper than those that end in zero, and hence more shoppers are drawn to the $9.99 price tag.

The third P in the four Ps of marketing is place, which refers to the channels or locations where you sell your products and services.

You may want to sell products via a brick-and-mortar store or at less permanent physical locations, such as special events, fairs, pop-ups or temporary markets. Or, you may prefer to list your products for sale via an e-commerce software —by either building your own e-commerce website or by selling through popular online marketplaces such as eBay, Amazon or Etsy .

Where you sell your products will influence how you manage product inventory and product transportation or shipping. Location also influences the relative size of your reachable market. Some businesses find they can optimize sales by offering goods and services via multiple outlets.

The fourth P in the four Ps of marketing is promotion, which is how you get the word out about your products and what tactics you use to convert prospects into buyers. Your promotion strategy may include advertising, public relations, social media marketing, content marketing, direct marketing and influencer marketing, as well as the discounts and special offers you extend to generate sales.

Even the best product in the world doesn’t stand a chance if you don’t have a strong promotion strategy behind it. While there are some promotional tactics that can be done on a shoestring budget—such as do-it-yourself blogging and social media—others can be costly. It’s important to factor anticipated promotional costs into your product pricing strategy.

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Understanding the four Ps is the first step in creating a strong marketing mix. Knowing how to execute the four Ps correctly is key to achieving success. Let’s look at examples of how different organizations use the four Ps in different ways.

Examples of Product

The music industry offers many examples of how related products are sold in different formats––from physical products to digital downloads to digital streaming to live events.

While compact discs—a physical product—are no longer the norm, they are still available in some brick-and-mortar locations as well as in online marketplaces. Vinyl albums are making a comeback among certain audiophiles, which is a reminder to consider your audience’s specific interests when designing your product.

The popularity of various product formats can change as new technologies emerge. There was a time when you needed an Apple iPod or similar device (i.e., “product”) to listen to music online. Now you can use just about any internet-enabled device to purchase music via digital downloads, or you can subscribe to popular subscription-based audio streaming sites such as Spotify, Pandora and Apple Music, which grant you access to millions of songs.

Live performances are another popular music product—just ask any Taylor Swift mega-fan about the magic of scoring a ticket to one of her sold-out concerts. Of course, when you attend a live event, you will find there is plenty of physical music merchandise to purchase—from T-shirts to pins to caps and hats to collectible programs.

Examples of Price

You can buy a watch for under $100 or spend $100,000 or more; both watches will tell you the time. The price a person is willing to pay for a watch says a lot about their means, interests, style and quality preferences and what they value in a timepiece.

Chanel, Dolce & Gabbana, Versace and Armani all sell high-priced clothes, jewelry and accessories. Yet, what these brands are actually selling is a luxurious lifestyle. The premium prices these luxury brands charge reflect quality and exclusivity; their target audience has the means to purchase the products and the desire to live a rich life.

Old Navy, meanwhile, targets budget-conscious shoppers with its everyday modest prices and regular promotional discounts. Dollar Tree is an example of a brand that appeals to lower-income consumers and those seeking extreme values. Dollar Tree, which has had to raise average product prices up from $1.00 to $1.25, has seen profits surge in recent years.

No one magic price range will produce exceptional results for all product lines. When pricing your product, you must consider not only the cost to produce the item but who your ideal buyer is and what they’re currently spending on the products they purchase.

Examples of Place

Today’s businesses have more options and flexibility in places to sell their goods and services. The best point-of-sale (POS) systems and credit card readers let you accept payments from nearly anywhere.

You used to need a brick-and-mortar building to open a restaurant, and now budding restaurateurs and bakers can sell their edible creations via food trucks, pop-up events or shared kitchens.

Artists and crafters can sell their goods via their own galleries or display their works at others’ galleries. Artists also sell art online via their own websites or popular online marketplaces such as Creative Market, Etsy, Amazon Handmade and Fine Art America. Art and craft fairs are growing more popular, as are festivals and pop-up markets that invite artisans to showcase their work.

Many businesses start by selling their products online or via a retail location and then expand to other outlets once sales grow. A multi-location strategy is often the best way to boost your product sales.

Examples of Promotion

If you want your business to be successful, you must find ways to promote your business effectively. Some promotional efforts—such as national paid advertising—require a relatively large promotional budget, which is feasible for mega-brands like McDonald’s, Amazon and Toyota, but can be difficult for smaller businesses.

Examples of promotions that work for small businesses include creating a business website where you offer discount coupons and promote current sales. You can also ask customers for their email addresses and use email marketing software for ongoing business promotion. If you have a brick-and-mortar business, consider placing attention-grabbing banners, flags or a blow-up character in front of your business to draw the attention of those passing by.

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Other types of promotions can work for a wide array of businesses, such as customer loyalty programs. Kohl’s loyalty program, called Kohl’s Rewards, gives members cash back each month based on their spending. Since Kohl’s requires you to submit your contact information to join the program, the company can use that information to regularly email you to tell you about current sales and new products.

Think of the four Ps of marketing as your road map for introducing and launching successful products and services. Your marketing strategy should include extensive details on how you intend to approach each of the four Ps.

For example, when developing your product, consider what’s already available and what features you can embed in your product to serve a need or solve a problem better than any other available product. How will your product stand out in a crowded marketplace? Also, think about who your ideal audience is and what they value most.

When developing your pricing strategy, don’t just consider the price point where you make a sufficient margin. Be sure you understand your ideal customer’s sensitivity to pricing. Is this a luxury item? Then deliver the quality that appeals to high-end buyers at a price point that affirms luxury and exclusivity. Are you providing the best value on the market? Then use a value-based pricing model.

Placement is also key. Where does your target market already go to purchase similar products—online, in specialty retail stores, big-box stores, discount stores or elsewhere? It’s important to place your products where your ideal clients already shop, which may mean placing them in multiple sales channels.

Finally, give special attention to how you promote your products. Your promotion strategies must be compelling and give you maximum reach for your promotional dollars.

How and where you choose to promote your product needs to align with the type of customer you are pursuing. The promotional choices you’ll select for more traditional middle-aged suburbanites will be considerably different than those you’d use to appeal to members of Generation Z. Always make sure your advertising choices and messaging align with who you’re targeting.

While the four Ps came first, you may have also heard of the seven Ps of marketing, which rose in popularity in the 70s and 80s. The seven Ps include the original four Ps plus people, process and physical evidence.

The fifth P refers to the people within your organization who work together to create an exceptional experience for your customers. You can differentiate your business from competitors by creating a customer-centric culture that consistently delivers a memorable, high-quality customer experience.

If you are a service-based business, it’s vital that you pay close attention to the people you hire to interact with your customers. Bad reviews on Google Reviews or Yelp can put you out of business.

The sixth P, process, is how you get your product to the customer. Is it easy and seamless to purchase from you, or are there barriers that make the buying experience difficult or issues with your shipping or delivery system that negatively impact the experience?

For example, did you ship a product to an environmentally conscious customer via a styrofoam container—or did you use sustainable, eco-friendly shipping and packaging methods? Make sure the processes you use make sense for what you’re selling and who you’re selling to.

Physical Evidence

The seventh P, physical evidence, involves things that enhance or detract from the shopping or purchase experience. Physical evidence includes branding and packaging.

When a physical environment is involved—such as in a retail store, restaurant or service office—physical evidence includes the layout, ambiance and overall aesthetics of the physical location that contribute to the impression you make on prospects and customers.

What are the seven Ps of marketing?

The seven Ps of marketing—sometimes referred to as the marketing mix—include product, place, price, promotion, people, physical evidence and process.

Which of the four Ps of marketing is the most important?

Many consider the product to be the most important of the four Ps of marketing. That being said, even excellent products can only be successful if a business strategically deploys all vital aspects of the marketing mix, including the remaining three Ps: place, promotion and price.

What are the marketing four Ps and four Cs?

The four Ps of marketing are product, place, price and promotion. In an article in Advertising Age , Bob Lauterborn introduced the four Cs, which he stated was a more customer-centric marketing model. The four Cs are consumer, cost, convenience and communication.

What is the purpose of the four Ps of marketing?

The purpose of the four Ps of marketing is to help businesses create a viable, complete strategy for selling goods and services. The four Ps are essential pillars for success that can help you drive better results when launching any product or service.

What’s the difference between the four Ps and the seven Ps of marketing?

The seven Ps include the original four Ps—product, price, place and promotion—plus people, process and physical evidence.

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Janette Novak is a freelance journalist and consultant who specializes in teaching online business and small business marketing. Previously, Janette owned a boutique marketing agency and served as a Chief Marketing Officer for a leading professional training services provider.

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7 Components of a Market Research Proposal

by George Kuhn

Posted at: 5/9/2023 12:30 PM

A market research proposal is the first and most critical step in your project or choosing a market research consultant .

It gives you all of the information you need on the process, approach, and most importantly: the cost 💸💸.

You can also tell a lot about a market research company from the interactions you have before signing on the dotted line.

In this article, our market research company shares everything you need to know about market research requests for proposals.

It will teach you what to look for, what the process looks like, and the key components of an RFP document.

Article Contents

What is a Market Research Proposal?

• Market Research Proposal Components
• What a Proposal Tells You About a Market Research Company

Looking to submit a request for a proposal to a market research company? Contact Drive Research by emailing [email protected] or completing an online contact form on our website.

A proposal for market research is a document that works as a template for the research team and client, determining the steps to take in proper order. What’s more, they ensure the project runs smoothly and follows a key set of steps. 

Market research proposals typically include the following:

• Objectives: The purpose of this section is to clearly define the key goals of the market research project. Like any other project, when there are no objectives, things can get messy–fast. Labeling the project objectives works to avoid this and ensures the rest of the proposal makes sense. 
• Type of approach: While the objectives section is the most important, the approach section has the most details. Going over each step of the entire process is critical for this point, as it almost acts as a map of how the project will go. 
• Project timeline: Just as it sounds. Including a timeline in a market research proposal is necessary to ensure the client is aware of how the project will progress. Additionally, this helps to keep the research team aware of deadlines and goals. 
• Estimated cost: Pricing will always be included in a market research proposal. Usually, costs for a project will be a fixed price. Like many aspects of market research, costs depend on different variables within the project. 

Another key detail to point out here is that proposals are especially important because there are so many different types of market research methods to choose from. 

While the four elements listed above are essential in a proposal for any type of research project, their details will vary based on the type of research being conducted. 

A research team that’s well-versed in multiple industries will be able to craft an effective research proposal that’s unique to their client. 

Below, we’ll expand on the points mentioned above.

Free Resource: Download Our Free Market Research RFP Template

Market Research Proposal Components 

A market research proposal includes a set amount of key components. Each section offers essential information and should always be reviewed to ensure you are selecting the best market research agency for the job.

Looking for assistance in creating a market research proposal to send to agencies? Here is your ultimate guide to writing a market research RFP .

Below are the key components of a market research proposal:

Proposal Component #1: Objectives

This is the general recap of key questions that need to be answered in the market research.

It should address your expectations, what you want to learn from the market research, and what you plan to do with the results.

In this section of the proposal, the market research company should communicate how well they listened and understood the key objectives of your project from the prospecting meetings.

This is an important component of a market research proposal.

It is important both sides have a clear understanding of what the general goals and objectives of the research are.

Your objectives will shape survey or interview questions, and guide the final results. Do not hesitate to discuss any comments or concerns when you receive the proposal. 

💡 The Key Takeaway: As with any market research project, a proposal will contain clear project objectives. This includes project expectations and how the data will be used. 

Proposal Component #2: Approach

In this section of the market research proposal, the firm should outline the approach.

This approach should set the table for the types of methodologies of choice and most importantly, why they are the best options for the client.

Here the proposal may talk about approaches to market research such as:

• Hosting 2 online focus groups followed by an online survey.
• Conducting 15 in-depth interviews (IDIs) followed by an email survey.

Whatever the methodology is, the firm should spend some time discussing the value of each methodology and why it was chosen over other options.

For instance, online surveys offer the best return on investment (ROI) for a client. This is because online surveys are cost-effective , offer a quick turnaround, and capture quality data.

This is part of the story we share for our market research case studies . All great market research companies have a patented process.

💡 The Key Takeaway: For this section of the proposal, the approach will detail what type of market research will be used and other relevant information.

Proposal Component #3: Design

Now that the approach is laid out, the market research company should get into the details here.

The design phase of the market research proposal outlines the structure of each of the market research instruments.

This component of a market research proposal may include:

• A moderator's guide for a focus group
• A survey document for an online survey
• An interview guide for an IDI

This section should explain some of the questions the market research company is considering asking, how long the survey or interview will take, what populations the market research will be targeting, and so on.

For example, if the market research company is proposing focus groups, the proposal will discuss the location of the groups, honorariums, recruitment methods, and more.

This is the crux of the market research proposal. The detail is in the design and it's where the market research company can shine.

The design component is where they can show their expertise and experience. This is where the pretenders are separated from the contenders.

💡 The Key Takeaway: In this section of the proposal, further details about the chosen method of research are provided. This step is essential when it comes to giving clients peace of mind about their projects. 

Proposal Component #4: Fieldwork

During the fieldwork section of the proposal, this is where your organization will read about the number of groups, the number of survey completes, or the number of interviews.

You may also learn about how the firm proposes cutting the audiences or creating quotas .

Here the market research firm should also share how the project will start with a soft-launch email survey before fully launching fieldwork.

Additionally, in this section of our market research proposals, we also share with our clients that they will receive a live data link that they can access 24/7 with a passcode.

This gives our clients up-to-the-second data when their project is active.

To give you a preview, here is an example client portal created for online surveys.

💡 The Key Takeaway: The fieldwork section covers how the feedback will be gathered for the client project. Additionally, this is a chance for the team to discuss how demographics will be handled. 

Proposal Component #5: Reporting

The reporting component is another key section of the market research proposal. This is where your team will read about the analysis and reporting plans of the market research company.

It should give you a mental picture of how the report will be structured.

This would most likely include:

• An executive summary
• Recommendations
• Infographic
• Customer persona
• An appendix of question-by-question results

Depending on the complexity of the project, the market research firm should also touch on some advanced analytics such as TURF analysis , text analytics , regression , correlation , or any other non-traditional form of reporting.

Below is an example infographic you might receive from a market research company, like Drive Research.

Example Infographic of a Market Research Report

💡 The Key Takeaway: This section covers how the received data will be analyzed and reported. It covers how the data will be arranged and interpreted by the team.

Proposal Component #6: Timeline

In one of the final sections of the market research proposal , the market research firm should highlight the timeline.

This not only includes a total start-to-finish estimate in weeks (or months) but a breakdown of each section.

Our market research firm often finds Gantt charts work very well for these timelines. The breakdown here should include kickoff, set up, design, fieldwork, and reporting.

💡 The Key Takeaway: Including a timeline off provides additional peace of mind for clients. This section simply details the due dates for project steps. 

Recommended Reading: How Long Does Market Research Take?

Proposal Component #7: Costs

Lastly, the market research project proposal must highlight the expenses. This total cost is often what our clients (and any human being) want to jump to first.

We typically either include this on the cover page or at least in the email sent to the client. The cost should give some details on how it came to be.

For instance, the cost of market research could be based on hourly rates and the time expected to complete each task.

The scope should also talk about the hard pass-through costs such as incentives or rentals of panels.

💡 The Key Takeaway: An authentic market research proposal will always include cost. This keeps both parties informed and aware of the best pricing strategies. 

What A Proposal Tells You About a Market Research Company

Aside from project cost, there are a few other important factors in choosing a full-service market research supplier .

Here are a few things to consider when reviewing a market research proposal from agencies and firms.

How quickly do they turn it around?

Understanding the estimated project timeline showcases how fast the market research company can move. More importantly, it reflects how much of a priority your project is for them.

If they are taking a week or longer to produce a fairly straightforward and simple proposal, they may not be considering you as a priority client.

Speaking from experience, the research industry moves fast. A week is an eternity in business as far as our market research company  is concerned.

How clean and professional does it look?

The layout and format of a market research proposal will give you some insight into what their reporting, infographics, and deliverables will look like.

A sloppy thrown together proposal is a sign of bad things to come. Remember, this should be the phase where a third-party market research firm is trying to win you over.

If the first document you receive from a vendor is not up to your standards, it is likely not the firm you'd like to move forward with.

How flexible is the market research company?

Are they willing to work with you on scope, process, and cost if your budget requires it?

If they show some flexibility and are willing to make adjustments as part of the proposal process, it is a sign they will be easy to work with throughout the coming weeks.

At our market research company , we like to act as an extension of your team. In the proposal phase, we try to do everything we can for your team to meet your goals.

How consultative is the market research partner?

Market research companies often get a bad rap for being laser-focused on charts, numbers, and analytics. They sometimes fail to see the bigger picture: How can clients use this data to improve everyday business operations?

While we can speak for other firms, we can certainly speak behind the mission of Drive Research.

Sure, we love statistics and data as much as the next analyst. However, every market research project includes a level of consultation to assure our clients are walking away with actionable insights.

Here are a few ways we add consultative elements to the market research process:

• If a prospective client asks for a quote for phone surveys, but we know online surveys are the fast and more cost-effective option, we'll share pricing for both phone surveys and online surveys. We always have our clients' (and participants') best interests in mind.
• Our proposals often include detailed information about the market research process such as where we sample survey respondents, project work plan, key deliverables, and more.
• Our market research reports include actionable recommendations for how our clients can use their unique data to improve sales, marketing, operations, and other areas of their business.
• Every project ends with a debrief meeting where our team reads the report page-by-page to assure all parties have a full understanding of the data.

How responsive are they?

If you send an email to a prospective market research vendor asking them a question about the scope or price, it should not take days to get a response.

Think of it this way, the service is likely not going to get better once they close the project and have you as a client.

The best service you will get from any company is when they are trying to get you to sign the dotted line. Sad but very true.

For more context about choosing a market research company, watch this short 60-second video.

Final Thoughts

A market research proposal may seem simple enough. 

And while this type of document isn’t difficult to construct, it contains many moving parts–which all depend on the needs of the client. This is why it’s crucial to have the proposal handled by a team of trustworthy experts!  

Aside from containing the necessary information, an effective market research proposal will be handled by an equally effective market research team. Covering everything from key objectives to costs, a well-written proposal is the first step to a successful market research project.

Need a Market Research Proposal? Contact Drive Research

Drive Research is a full-service market research company. We provide both qualitative and quantitative research services to organizations across the world.

If you are interested in receiving a market research proposal from Drive Research, contact us today!

• Message us on our website
• Email us at [email protected]
• Call us at 888-725-DATA
• Text us at 315-303-2040

George Kuhn

George is the Owner & President of Drive Research. He has consulted for hundreds of regional, national, and global organizations over the past 15 years. He is a CX-certified VoC professional with a focus on innovation and new product management.

Learn more about George, here .

Categories: Market Research Analysis

Need help with your project? Get in touch with Drive Research.

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The A-Z of Market Research - Your Ultimate Glossary

This A-Z glossary is a  reference tool for professionals in the market research industry. It encompasses an array of commonly used terms and concepts that are integral to effective market research practices. Covering everything from fundamental methodologies to specialized techniques, this glossary provides definitions that clarify the jargon often found in the field. Whether you are an experienced researcher, new to the industry, or a client aiming to enhance your understanding of research reports, this resource helps you to quickly access key market research terminology. Dive in and leverage this knowledge to elevate your expertise and drive impactful insights.

A/B Testing

A method of comparing two versions of a webpage or app against each other to determine which one performs better. It involves randomly showing the two variants (A and B) to users and analyzing which one drives more conversions. Read more about AB testing on HBR .

Access panels

A database of individuals who have agreed to be available for surveys of varying types and topics. They are used to save time and money in recruiting respondents for market research.

Accompanied shopping

A specialized type of individual depth interview where respondents are interviewed while they shop in a retail store. It combines observation with detailed questioning.

Alternative hypothesis

The hypothesis in statistical testing where some difference or effect is expected. It's the opposite of the null hypothesis.

Ambiguous question

An ambiguous question in market research is a poorly constructed query that lacks clarity and precision, allowing for multiple interpretations by respondents. These questions can lead to confusion and inconsistent answers, as different individuals may understand and respond to the question in varying ways. This ambiguity often stems from vague language, lack of context, or the inclusion of multiple concepts within a single question. As a result, ambiguous questions can compromise the reliability and validity of research data, potentially leading to misguided conclusions and decisions. Researchers must strive to craft clear, specific questions to ensure accurate and meaningful responses that truly reflect the opinions and experiences of their target audience.

A type of stimulus material where key frames for a television advertisement are drawn or computer generated with an accompanying soundtrack. They are used to test advertisement concepts before full production.

Annotation method

An approach to analyze qualitative data using codes or comments on transcripts to categorize points made by respondents.

ANOVA (Analysis of Variance)

A statistical test for the differences among the means of two or more variables. It's commonly used to compare multiple groups in experimental designs. Read more about ANOVA at Oxford University .

Area sampling

A type of cluster sampling where clusters are created based on the geographic location of the population of interest.

Artificial Intelligence (AI)

The use of computer algorithms and systems to simulate human intelligence and perform tasks such as data analysis or decision making. In market research, AI is increasingly used for data processing and analysis. Find out more about what AI is here .

Audience's thinking sequence

The sequence of thoughts that people go through when they are being communicated with. Understanding this helps in crafting effective marketing messages.

An examination and verification of the movement and sale of a product. There are three main types: wholesale audits, retail audits, and home audits.

A chart that uses a series of bars positioned horizontally or vertically to represent the values of various items. It's a common way to visually represent data in market research reports.

In market research, particularly when dealing with cross tabulations, the base refers to the total number of respondents or observations that form the foundation for calculating percentages or other statistical measures. It represents the entire sample or a specific subset of the sample for which data is being analyzed. The base is crucial for understanding the context and significance of reported percentages, as it indicates the size of the group from which conclusions are drawn. For instance, if a survey reports that 60% of respondents prefer a certain product, the base tells us how many people that percentage represents, allowing for more accurate interpretation of the data's reliability and representativeness.

Bayes' theorem

A mathematical formula that provides a way to update the probability of an event based on new information. In market research, it's used to estimate the likelihood of a target audience having certain characteristics.

Read more about Bayes rule in perception, action and cognition with Cambridge University's Machine Learning Group

Behavioural science

An interdisciplinary field applying theories and techniques mainly from psychology to uncover what consumers value and provide solutions to pricing, choice architecture, perceptions, and behaviors.

A term describing the significant volume and variety of data available to organizations and the increased frequency in which they are generated. It's increasingly important in market research for uncovering insights.

The use of physiological or behavioral characteristics to identify and verify a person's identity. In market research, it's used to authenticate survey respondents and measure physical responses to stimuli.

An abbreviated title for the term web log, meaning a frequent, chronological publication of personal thoughts and ideas. In market research, blogs can be a source of consumer insights.

Brand Equity Modelling

The creation of a Brand Equity measure and any Key Driver analysis to determine what drives Brand Equity. It helps in understanding and quantifying a brand's strength.

Let’s explore how well a brand's product qualities match what consumers truly desire. Understanding this alignment is key to optimizing your brand's positioning. Here are a few points to consider:

• What does your audience value? Discover the qualities that resonate with them.
• How do you measure this alignment? Use insights to refine your approach.
• Empower your brand strategy! When you align with customer desires, you create a stronger connection.

By focusing on these aspects, you’ll not only enhance your brand's appeal but also engage your audience in a meaningful way. 

Brand mapping

A projective technique involving presenting competing brand names to respondents and getting them to group them into categories based on certain dimensions. It helps understand brand perceptions and positioning.

Brand personalities

A projective technique where respondents imagine a brand as a person and describe their looks, clothes, lifestyles, etc. It helps understand brand perceptions and associations.

Brand Price Trade Off

A technique for establishing brand and price preferences by presenting respondents with branded products at various price points. It helps in understanding price sensitivity and brand loyalty.

Canonical Correlations

A statistical technique used to identify how much one set of independent variables drives another set of dependent variables. It's particularly useful when there are multiple dependent variables or categorical variables.

CAPI (Computer Assisted Personal Interviewing)

A method where laptop computers, tablets, or mobile devices are used instead of paper-based questionnaires for face-to-face interviewing. It allows for more complex questionnaires and immediate data entry.

Discover a powerful market research method designed specifically for the automotive industry! This approach helps gather valuable insights about consumer preferences and pinpoint potential issues with a vehicle before it hits the production line. Here’s how it works:.

• Participants engage with a pre-production or prototype vehicle.
• They share their thoughts and feedback, enabling manufacturers to make informed decisions.

This collaborative process empowers users and ensures that their voices shape the final product. 

Cartoon completion

A projective technique which involves a cartoon that the respondent has to complete. It's used to uncover underlying attitudes or perceptions.

CATI (Computer Assisted Telephone Interviewing)

A telephone interviewing method where interviewers input respondents' answers directly into a computer-based questionnaire. It allows for complex routing and immediate data entry.

CATS (Completely Automated Telephone Surveys)

Telephone interviews that use interactive voice technology and require no human interviewer. Respondents answer closed-ended questions using their touch-tone telephone.

Causal research

Research that examines whether one variable causes or determines the value of another variable. It's used to understand cause-and-effect relationships in marketing phenomena.

CAWI (Computer Assisted Web Interviewing)

Also known as online interviewing, CAWI involves respondents filling in a self-completion questionnaire delivered via the internet. It allows for complex routing and multimedia stimuli.

Research which involves collecting data from every member of the population of interest. It's typically used when the population is small or when complete data is required.

CHAID (CHi Squared Automatic Interaction Detection)

A type of decision tree technique based on significance testing. It's used to create rules to classify future respondents into identified groups or detect interrelationships between different questions.

Web-based platforms that can be used for online focus groups where individuals are recruited to discuss a subject online, usually using text. They allow for real-time qualitative research with geographically dispersed participants.

Chatbot survey

A traditional survey presented to the respondent in the form of an online conversation. Instead of answering static questions, respondents engage in a conversational exchange or chat.

A statistical test which tests the 'goodness of fit' between the observed distribution and the expected distribution of a variable. It's commonly used to analyze the relationship between categorical variables.

Choice Based Conjoint

A specific type of conjoint analysis where respondents are asked to make choices between different sets of products/services to derive the overall appeal of each component part. It's used to understand consumer preferences and trade-offs.

Closed question

A closed question in market research is a type of survey question that limits respondents to choosing from a predetermined set of answer options. Unlike open-ended questions, closed questions do not allow for free-form responses. They typically come in two main forms: dichotomous questions, which offer only two possible answers (e.g. yes/no, true/false), and multiple-choice questions, which provide several options to choose from. Closed questions are valued for their ability to generate easily quantifiable data, simplify the analysis process, and reduce the time and effort required from respondents. However, they may also limit the depth of insights by constraining respondents to predefined choices, potentially missing nuanced or unexpected responses that could be captured by open-ended questions.

Cluster analysis

A statistical technique used to group similar objects or individuals. In market research, it's often used for market segmentation, grouping consumers with similar characteristics or behaviors.

Cluster sampling

A probability sampling approach in which clusters of population units are selected at random and then all or some of the units in the chosen clusters are studied. It's often used when it's impractical or expensive to sample from a widely dispersed population.

The procedures involved in translating responses into a form that is ready for analysis. It typically involves assigning numerical codes to responses, especially for open-ended questions.

Coefficient alpha

See Cronbach alpha.

Coefficient of determination

A measure of the strength of linear relationship between a dependent variable and independent variables. It indicates how much of the variance in the dependent variable is predictable from the independent variable(s).

Concept boards

Introducing a dynamic tool for gathering valuable insights: stimulus materials! These boards showcase various product, advertising, and packaging designs, helping you collect feedback on exciting new products or campaigns. Here’s what you need to know:

• What are they? A set of boards that illustrate different designs.
• Why use them? To engage your audience and gather their thoughts on potential innovations.
• How they help: Empower you to make informed decisions based on real feedback.

We’re here to foster collaboration and curiosity—let’s explore new ideas together! What designs resonate with you? We’d love to hear your thoughts!

Confidence level

The probability that the true population value will be within a particular range (result +/– sampling error). It's typically set at 95% in market research studies.

Conjoint analysis

A statistical technique to understand what combination of a limited number of attributes is most influential in the consumer's decision-making process. It's often used in product development and pricing research.

Constant sum scales

A scaling approach which requires the respondent to divide a given number of points, usually 100, among a number of attributes based on their importance to the individual. It forces respondents to make trade-offs between attributes.

Construct validity

An analysis of the underlying theories and past research that supports the inclusion of various items in a scale. It's most commonly considered in two forms: convergent validity and discriminant validity.

Content analysis

The analysis of any form of communication, whether it's advertisements, newspaper articles, television programmes, or taped conversations. It's frequently used for the analysis of qualitative research data.

Content analysis software

Software used for qualitative research which counts the number of times that pre-specified words or phrases appear in text. It's used to analyze large volumes of textual data efficiently.

Content validity

A subjective yet systematic assessment of how well a rating scale measures a topic of interest. For example, a group of subject experts may be asked to comment on the extent to which all of the key dimensions of a topic have been included.

Continuous research

See Longitudinal research.

Contrived observation

A research approach which involves observing participants in a controlled setting. It allows researchers to manipulate variables and observe their effects on behavior.

Convenience sampling

Convenience sampling is a non-probability sampling method in market research where participants are selected based on their accessibility and willingness to participate, rather than through random selection. This approach involves choosing readily available individuals or groups that are easy for the researcher to reach, such as passersby in a shopping mall, students on a university campus, or online volunteers. While convenience sampling offers advantages in terms of speed, cost-effectiveness, and ease of implementation, it comes with significant limitations. The primary drawback is the potential for bias and lack of representativeness, as the sample may not accurately reflect the characteristics of the broader target population. This can lead to skewed results and limit the generalizability of the research findings, making it less suitable for studies requiring high levels of accuracy or those aiming to make broad inferences about a population.

Convergent validity

A measure of the extent to which the results from a rating scale correlate with those from other scales or measures of the same topic/construct. It's used to assess the validity of measurement scales.

Text files placed on a user's computer by web retailers in order to identify the user when they next visit the website. In market research, they can be used to track online behavior.

Correlation

Let’s dive into a statistical approach that helps us explore the relationship between two variables! Here’s what you need to know:

• Understanding relationships : This method uses an index to clearly describe both the strength and direction of the relationship between variables.
• Empower your insights : By examining these connections, you can gain valuable insights into how different factors interact.

Isn’t it exciting to uncover these relationships? Feel free to share your thoughts or questions!

Cost per complete (CPC)

A common term in quantitative research for the price paid per completed survey. This calculation usually includes the cost of the sample, fielding costs, and the cost of using the survey software.

Critical path method (CPM)

A managerial tool used for scheduling a research project. It's a network approach that involves dividing the research project into its various components and estimating the time required to complete each component activity.

Cronbach Alpha

Cronbach's Alpha , also known as coefficient alpha, is a widely used statistical measure in market research to assess the internal consistency reliability of a multi-item scale. It quantifies how closely related a set of items are as a group, typically in questionnaires or surveys where multiple questions aim to measure the same underlying construct. The coefficient ranges from 0 to 1, with higher values indicating greater internal consistency. Generally, an alpha of 0.7 or higher is considered acceptable in most research scenarios, though this can vary depending on the field and purpose of the study. Cronbach's Alpha is particularly valuable in developing and validating measurement scales for concepts like customer satisfaction, brand loyalty, or employee engagement. It helps researchers ensure that the items in their scale are measuring the same concept consistently, thus improving the overall reliability and validity of their research instruments.

Cross tabulation (crosstab)

A technique used to analyze and compare the relationship between two or more variables. It involves creating a table that shows the distribution of one variable across the different categories of another variable.

Cross sectional research

Research studies that are undertaken once, involving data collection at a single point in time, providing a 'snapshot' of the specific situation. It's the opposite of longitudinal research.

Customer database

A manual or computerized source of data relevant to marketing decision making about an organization's customers. It's a valuable resource for customer relationship management and targeted marketing efforts.

Customer Lifetime Value (CLV)

A prediction of the net profit attributed to the entire future relationship with a customer. It's used to determine how much to invest in acquiring or retaining a customer.

CX (Customer Experience)

Refers to how customers feel or perceive all aspects (touchpoints) when they buy goods or services or interact with a business. It's crucial for understanding and improving customer satisfaction and loyalty.

Data analysis errors

Non-sampling errors that occur when data is transferred from questionnaires to computers by incorrect keying of information. They can be minimized through data cleaning and validation processes.

Data cleaning

To ensure data quality before analysis, it's essential to conduct computerized checks on your data. This friendly process helps you:

• Identify inconsistencies
• Detect any unexplained missing responses

Taking this crucial step empowers you to work with reliable information and make informed decisions. Let's embrace good data practices together! 

Data conversion

The reworking of secondary data into a format that allows estimates to be made to meet the researcher's needs. It's often necessary when using data from different sources or time periods.

Data fusion

The process of combining multiple data sources into a single, comprehensive representation of information. In market research, it's used to gain a more complete understanding of consumer behavior and market trends.

Refers to the type of data to be analyzed in a hierarchical survey. For example, in a healthcare study, analysis could be based at the doctor, patient, or therapy level.

Data mining

The process of discovering patterns and knowledge from large amounts of data using techniques such as statistical analysis and machine learning. It's used to extract useful insights and make data-driven decisions.

Data validation

The verification of the appropriateness of the explanations and interpretations drawn from qualitative data analysis. It's crucial for ensuring the credibility and trustworthiness of qualitative research findings.

Degrees of freedom (d.f.)

The number of observations (i.e., sample size) minus one. It's used in various statistical calculations and tests.

Depth interview

Descriptive statistics.

Statistics that help to summarize the characteristics of large sets of data using only a few numbers. The most commonly used are measures of central tendency and measures of dispersion.

Desk research

See Secondary research.

A continuous measurement tool used to gather feedback from participants when watching or listening to content media. Participants indicate their continuous level of agreement/like or disagreement/dislike with the content being presented.

Dichotomous questions

Questions with only two potential responses (e.g., Yes or No). They're simple for respondents to answer but provide limited information.

Discrete Choice Modeling

A statistical technique used to predict a choice from a set of two or more alternatives. It's often used in market research to understand consumer preferences and decision-making processes.

Discriminant analysis

A statistical technique that uses responses to a set of questions to predict existing group membership. The output can then be used to classify future respondents into the same groups.

Discriminant validity

A measure of the extent to which the results from a rating scale do not correlate with other scales from which one would expect it to differ. It's used to assess the validity of measurement scales.

Discussion guide

Used to structure and direct focus groups or depth interviews with participants. It serves as a guide for the facilitator or interviewer, providing questions, topics, and prompts to cover during the discussion.

Disproportionate stratified random sampling

A form of stratified random sampling where the units or potential respondents from each population set are selected according to the relative variability of the units within each subset.

Do-It-Yourself (DIY) research

Refers to market research methods that can be conducted without the assistance of professional researchers. It's typically more cost-effective and faster than traditional market research.

Double optin (DOI)

Refers to a person who has agreed to join a research panel and has confirmed their agreement through a two-step verification process. It helps ensure explicit consent and accurate contact information.

Double-barrelled question

A badly constructed question where two topics are raised within one question. It should be avoided as it can lead to confusion and inaccurate responses.

Doughnut chart

A form of pie chart which allows different sets of data (e.g., for different years) to be shown in the same chart. It's useful for comparing proportional data across categories.

Emotion recognition

The use of AI algorithms to detect and interpret human emotions, often through analysis of facial expressions, voice, or text. It's used in market research to understand emotional responses to products or advertisements.

Ethnography

A research method used for investigating cultural practices, rituals, consumer behavior, routines, and social norms. It helps unearth previously unseen opportunities by looking at people's worlds in an authentic way.

Eye tracking

A method of measuring and analyzing where and how people look at visual information. In market research, it's used to understand how people interact with visual stimuli like advertisements or product packaging.

Face to face survey

Research which involves meeting respondents in person and interviewing them using a paper-based questionnaire, a laptop computer, tablet, or mobile device. It allows for more complex questions and use of visual aids.

Facial tracking

A method of measuring and analyzing facial expressions and movements. In market research, it's used to understand emotional responses to advertising, products, and other stimuli.

Factor Analysis

A statistical technique to examine the similarities between items in order to identify a more concise summary of themes. It's often used for data reduction or to identify underlying constructs.

Focus group

A qualitative research method used to gather data through group discussions. Participants are brought together in a moderated setting to discuss a specific topic, product, or service.

Frequency distributions

See Holecounts.

Funnel sequence

A method for ordering questions in a questionnaire that starts with broad, general topics and gradually narrows down to more specific, detailed questions. This approach helps ease respondents into the survey, building rapport and context before addressing more complex or sensitive issues, potentially improving the quality and depth of responses.

The funnel sequence is a common and effective technique in questionnaire design, particularly useful for in-depth interviews and complex surveys.

Gabor Granger

A pricing technique used to understand price elasticity for set products. Respondents are asked how likely they are to purchase a product at different price points, allowing researchers to establish optimal pricing.

Galvanic Skin Response (GSR)

A method of measuring changes in the electrical conductance of the skin, which can indicate changes in emotional arousal. In market research, it's used to understand emotional reactions to stimuli.

Gamification

The process of adding game-like elements to a research activity to engage participants and collect data in a more interactive way. It can lead to better quality data by making surveys more engaging and fun.

GANTT chart

A managerial tool used for scheduling a research project. It's a form of flowchart that provides a schematic representation incorporating the activity, time, and personnel requirements for a given research project.

Geo-fencing in market research

The use of GPS or RFID technology to define a geographic boundary, then trigger a response when a mobile device enters or leaves the area. It's used in location-based market research and mobile surveys.

Geodemographic profiling

A profiling method which uses postal addresses to categorize different neighborhoods in relation to buying power and behavior. It's useful for targeted marketing and location-based strategies.

Grounded theory

Grounded Theory is a systematic methodological approach to qualitative research, particularly valuable in market research when exploring new or poorly understood phenomena. Unlike traditional research methods that begin with a hypothesis, Grounded Theory starts with data collection and analysis, allowing theories to emerge from the data itself. Researchers using this method gather information through various qualitative techniques such as interviews, focus groups, or observations, and then analyze this data through a process of coding and constant comparison. As patterns and concepts emerge, researchers develop theories that are "grounded" in the actual experiences and perspectives of the participants. This approach is especially useful in uncovering consumer motivations, decision-making processes, or market trends that may not be apparent through conventional research methods. While more time-consuming and complex than some other research techniques, Grounded Theory can provide deep, nuanced insights that lead to innovative marketing strategies or product development ideas.

Group depth interviews

See Focus group.

Group moderator

The interviewer responsible for the management and encouragement of participants in a group discussion. They play a crucial role in facilitating productive discussions and ensuring all participants contribute.

Research undertaken in a central hall or venue commonly used to test respondents' initial reactions to a product, package, or concept. It's also known as a Central Location Test (CLT).

A graphical representation of data where values are depicted by color. In market research, they're often used to show where people click on websites or focus their attention in visual stimuli.

The number of respondents who gave each possible answer to each question in a questionnaire. Also known as frequency distributions or topline numbers.

An assumption or proposition that a researcher puts forward about some characteristic of the population being investigated. It's tested through research to determine if it's supported or refuted.

IDI (InDepth Interview)

A qualitative research method using a relatively open, discovery-oriented approach to obtain detailed information about a topic from a participant. It allows for deep exploration of individual perspectives and experiences.

IHUT (In Home Usage Test)

A market research method that allows consumers to test products in their own homes. Participants are given a product to use and are asked to provide feedback on its features, benefits, and overall satisfaction.

Impact indices

Measure the impact any independent variable has on changing a dependent variable. Often used when the independent variables are binary, it can evaluate the impact of different product qualities on preference.

Implicit Association Test (IAT)

A psychological measurement technique used to uncover unconscious biases. It measures a respondent's automatic associations between mental representations of objects in memory and evaluations, attitudes, or stereotypes.

Implicit assumption

A badly constructed question where the researcher and the respondent are using different frames of reference as a result of assumptions that both parties make about the question being asked.

Independent samples

Samples in which the measurement of the variable of interest in one sample has no effect on the measurement of the variable in the other sample. It's important for certain statistical tests.

Internal data

Secondary data sourced from within the organization that is requiring the research to be conducted. It can include sales data, customer records, and previous research findings.

Interquartile range

A measure of dispersion that calculates the difference between the 75th and 25th percentile in a set of data. It's useful for understanding the spread of the middle 50% of the data.

Interval data

Similar to ordinal data with the added dimension that the intervals between the values on a scale are equal. However, the ratios between different values on the scale are not valid.

Interviewer bias

Bias and errors in research findings can significantly impact results, stemming from the actions of the interviewer. Factors such as the selection of interview subjects, the methodology employed during the interview process, and the precision in recording responses can all influence the integrity of the data. It's crucial to understand these elements to ensure reliable outcomes in research.

Interviewer Quality Control Scheme (IQCS)

A quality control scheme for interviewers in the UK. The scheme is aimed at improving selection, training, and supervision of interviewers.

Judgement sampling

A non-probability sampling procedure where a researcher consciously selects a sample that he or she considers to be most appropriate for the research study. It relies on the researcher's expertise but may introduce bias.

Key Driver Analysis

The analysis of the relationship between a dependent variable and one or more independent variables. Its purpose is to determine whether a relationship exists and the strength of the relationship, used to help prioritize what to focus on.

Kiosk-based survey

A survey often undertaken at an exhibition or trade show using touch screen computers to collect information from respondents. It can be cheaper to administer compared to traditional exit surveys with human interviewers.

Kruskal's relative importance analysis

A type of Key Driver Analysis used as an alternative to other techniques such as ordinary regression analysis. It's particularly useful when there is missing data or when variables are strongly related to each other.

Latent Class Analysis

A statistical method used to identify subgroups of related cases from multivariate categorical data. It's often used in market segmentation to identify groups with similar response patterns.

Leading question

A badly constructed question that tends to steer respondents toward a particular answer. Sometimes known as a loaded question, it should be avoided to prevent biased responses.

Least filled quota sampling

A variation of quota sampling where the research team attempts to fill the quotas in the most efficient way possible by selecting respondents from the sub-population that has the lowest representation in the sample.

Least squares approach

A regression procedure that is widely used for deriving the best-fit equation of a line for a given set of data involving a dependent and independent variable.

Lifetime value

The present value of the estimated future transactions and net income attributed to an individual customer relationship. It's crucial for customer relationship management and marketing strategy.

Likert scale

A rating scale which requires the respondent to state their level of agreement with a series of statements about a product, organization, or concept. It typically uses five points from "Strongly agree" to "Strongly disagree".

Linear regression

Used to find out the relative importance of different drivers in order to re-create a dependent variable. For example, the influence of brand imagery items on brand appeal.

Logistic regression

Used to find out the relative importance of different drivers in order to re-create a dependent variable when the dependent variable is binary. It's particularly useful in propensity modeling.

Longitudinal research

A study involving data collection at several periods in time, enabling trends over time to be examined. It may involve asking the same questions on multiple occasions to the same respondents or to respondents with similar characteristics.

Machine learning

A subset of AI that involves training computer models to learn from data and make predictions or decisions. In market research, it's increasingly used to automate much of the classification and analysis of both structured and unstructured data.

Mall intercept interviews

A type of market research technique where participants are approached in a shopping mall or other public area and asked to participate in a survey or interview. It allows for the collection of data from a diverse sample in a specific geographic location.

Market Basket Analysis

A data mining technique used to understand purchasing behavior by finding associations between different items that customers place in their "shopping baskets". It's often used in retail to inform product placement and promotions.

Market Research Online Communities (MROCs)

Groups of individuals recruited and engaged by a market research company to participate in ongoing research studies, surveys, and discussions about a specific topic or product. They provide ongoing insights and feedback.

Marketing research

The collection, analysis, and communication of information undertaken to assist decision making in marketing. It encompasses a wide range of methods and techniques to understand markets, consumers, and marketing effectiveness.

MaxDiff (Maximum Difference Scaling)

A technique used to understand relative importance or appeal amongst a list of features/statements. Respondents choose the most and least appealing/important items from sets, resulting in a ranking of all items.

MBC (Menu-Based Conjoint)

A specific type of conjoint analysis able to handle a variety of menu choice situations in which respondents make from one to multiple choices in the process of building their preferred selection.

The arithmetic average calculated by summing all of the values in a set of data and dividing by the number of cases. It's one of the most common measures of central tendency.

Measures of central tendency

Measures that indicate a typical value for a set of data by computing the mean, mode, or median. They provide a single value that attempts to describe a set of data.

Measures of dispersion

Measures that indicate how 'spread out' a set of data is. The most common are the range, the interquartile range, and the standard deviation.

When all of the values in a data set are put in ascending order, the median is the value of the middle case in a series. It's less affected by extreme values than the mean.

Mixed Mode Studies

Research studies that use a variety of collection methods in a single survey (e.g., using the same questionnaire online and face to face) in order to improve response rates and representativeness.

The value in a set of data that occurs most frequently. It's particularly useful for categorical data.

Monadic testing

A survey method where each respondent only evaluates one concept out of several being tested. It's commonly used in the early stages of product or concept development.

Multi stage sampling

A sampling approach where a number of successive sampling stages are undertaken before the final sample is obtained. It's often used when a complete list of the population is not available.

Multidimensional scaling

A statistical technique used to visualize the level of similarity of individual cases in a dataset. In market research, it's often used to create perceptual maps of brands or products.

Multiple discriminant analysis

A statistical technique used to classify individuals into one of two or more segments (or populations) on the basis of a set of measurements.

Multiple regression analysis

A statistical technique to examine the relationship between three or more variables and also to calculate the likely value of the dependent variable based on the values of two or more independent variables.

Multivariate data analysis

Statistical procedures that simultaneously analyze two or more variables on a sample of objects. Common techniques include multiple regression analysis, factor analysis, cluster analysis, and conjoint analysis.

Mystery shopping

A method of testing the quality of services provided to customers by using researchers posing as regular customers. It's used to assess whether employees are following company procedures or industry guidelines.

Short for "national representative sample," it refers to a research sample that is intended to be representative of the entire population of a country or region. It's crucial for studies aiming to generalize findings to a whole population.

Natural Language Processing (NLP)

A branch of AI that involves understanding and generating human language. In market research, it's used for tasks such as sentiment analysis, text classification, and chatbot interactions.

Net Promoter Score (NPS)

A measure of customer loyalty and advocacy, calculated by asking customers how likely they are to recommend a company's products or services to others. It's widely used as a simple metric of customer satisfaction and loyalty.

Netnography

A qualitative research method used to study online communities. It involves the systematic observation and analysis of the interactions, communications, and content generated by a group of people on the internet.

Neuroscience

Used in market research to provide an accurate and unbiased measure of consumer response. Techniques such as EEG and fMRI are used to measure brain activity and understand how people respond to marketing stimuli.

Nominal data

Numbers assigned to objects or phenomena as labels or identification numbers that name or classify but have no true numeric meaning. They're used for categorization only.

Non probability sampling

A set of sampling methods where a subjective procedure of selection is used, resulting in the probability of selection for each member of the population of interest being unknown. It's often used when probability sampling is not feasible.

Non response errors

An error in a study that arises when some of the potential respondents do not respond. This may occur due to respondents refusing or being unavailable to take part in the research.

Non sampling error

Errors that occur in a study that do not relate to sampling error. They tend to be classified into three broad types: sampling frame error, non-response error, and data error.

Normal distribution

A continuous distribution that is bell-shaped and symmetrical about the mean. It's important in statistics because many natural phenomena follow this distribution.

Null hypothesis

The hypothesis that is tested and is the statement of the status quo where no difference or effect is expected. It's typically what researchers try to disprove in statistical testing.

Observation

A data gathering approach where information is collected on the behavior of people, objects, and organizations without any questions being asked of the participants. It can provide insights into natural behavior.

Omnibus surveys

A data collection approach that is undertaken at regular intervals for a changing group of clients who share the costs involved in the survey's set-up, sampling, and interviewing. It's a cost-effective way to ask a few questions to a large sample.

Open ended question

Questions which allow respondents to reply in their own words. There are no pre-set choices of answers and the respondent can decide whether to provide a brief one-word answer or something very detailed and long.

Ordinal data

Numbers that have the labeling characteristics of nominal data, but also have the ability to communicate the rank order of the data. The numbers do not indicate absolute quantities, nor do they imply that the intervals between the numbers are equal.

Paired interviews

An in-depth interview involving two respondents such as married couples, business partners, teenage friends, or a mother and child. It can provide insights into shared decision-making processes.

Panel research

A research approach where comparative data is collected from the same respondents on more than one occasion. Panels can provide information on changes in behavior, awareness, and attitudes over time.

Participant observation

A research approach where the researcher interacts with the subject or subjects being observed. The best-known type of participant observation is mystery shopping.

Participant Validation

A validation technique that involves taking the findings from qualitative research back to the participants/respondents that were involved in the study and seeking their feedback. It helps ensure the validity of qualitative findings.

Passive data

Data that is collected without actively seeking out the information from a respondent/participant. This type of data is generated naturally through actions such as website visits, online purchases, geolocation, and social media activity.

Pearson's product moment correlation

A correlation approach that is used with interval and ratio data. It measures the strength and direction of the linear relationship between two variables.

Perceptual mapping

An analysis technique which involves the positioning of objects in perceptual space. Frequently used in determining the positioning of brands relative to their competitors.

Photo sorts

A projective technique which uses a set of photographs depicting different types of people. Respondents are then asked to connect the individuals in the photographs with the brands they think they would use.

A type of bar chart which uses pictures of the items being described rather than bars. It can make data more visually appealing and easier to understand quickly.

Pilot testing

The pre-testing of a questionnaire prior to undertaking a full survey. Such testing involves administering the questionnaire to a limited number of potential respondents in order to identify and correct flaws in the questionnaire design.

Placement tests

The testing of reactions to products in the home and where they are to be used. Respondents are given a new product to test in their own home or office, and their experiences and attitudes are then collected.

Population of interest

The total group of people that the researcher wishes to examine, study, or obtain information from. It typically reflects the target market or potential target market for the product or service being researched.

Predictive analytics

The use of data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data. It's increasingly used in market research to forecast trends and behaviors.

Price Sensitivity Management (Van Westendorp)

A technique used to understand price preferences. Respondents are asked at what price they would consider a product to be too expensive, too cheap, etc. The optimal price point is determined where an equal proportion of respondents have said "too cheap" and "too expensive".

Primary data

Data collected by a program of observation, qualitative or quantitative research either separately or in combination to meet the specific objectives of a marketing research project. It's collected specifically for the research at hand.

Principal Component Analysis (PCA)

A descriptive method of multivariate analysis used to analyze numeric questions. It converts a set of observations of possibly correlated variables into a set of values of linearly uncorrelated variables called Principal Components.

Probability sampling

A set of sampling methods where an objective procedure of selection is used, resulting in every member of the population of interest having a known probability of being selected. It allows for statistical inference from the sample to the population.

Programme evaluation and review technique (PERT)

A managerial tool used for scheduling a research project. It involves a probability-based scheduling approach that recognizes and measures the uncertainty of project completion times.

Projective questioning

A qualitative research technique that asks respondents to consider what other people would think about a situation, rather than directly asking about their own opinions. Also known as third-party techniques, these methods are used to uncover deeper attitudes or beliefs that respondents might be unwilling or unable to express directly about themselves.

This technique is part of a broader category of projective techniques used in market research to gain insights into consumers' subconscious thoughts and feelings

Proportionate stratified random sampling

A form of stratified random sampling where the units or potential respondents from each population subset are selected in proportion to the total number of each subset's units in the population. It ensures representation of all subgroups in the sample.

Psychographic segmentation

A method of dividing a market into segments based on consumers' personality traits, values, attitudes, interests, and lifestyles. It goes beyond demographic segmentation to understand the psychological aspects of consumer behavior.

Purchase intent scales

A scaling approach which is used to measure a respondent's intention to purchase a product or potential product. It's often used in concept testing and new product development research.

Qualitative research

Qualitative research is an unstructured research approach with a small number of carefully selected individuals used to produce non-quantifiable insights into behavior, motivations, and attitudes. Methods include focus groups and in-depth interviews.

Quantitative research

Quantitative research is a structured research approach involving a sample of the population to produce quantifiable insights into behavior, motivations, and attitudes. It typically involves larger sample sizes and statistical analysis.

Questionnaire design process

A stepped approach to the design of questionnaires. It involves determining the information needed, question content, question wording, response format, and question sequence.

Quota sampling

Quota sampling is a non-probability sampling technique used in market research to create a sample that reflects specific proportions of characteristics in the target population. In this method, researchers divide the population into subgroups or "cells" based on relevant demographic or psychographic variables such as age, gender, income, or education level. For each subgroup, a quota is set that corresponds to its proportion in the overall population. Researchers then collect data from individuals within each subgroup until the predetermined quotas are met. While quota sampling aims to achieve a representative sample and can be more cost-effective than probability sampling methods, it is subject to potential bias in the selection process. This is because the final choice of respondents within each quota is often left to the researcher's discretion, which may inadvertently introduce selection bias and limit the generalizability of results.

A measure of dispersion that calculates the difference between the largest and smallest values in a set of data. It's a simple measure of variability but is sensitive to outliers.

Actual 'real' numbers that have a meaningful absolute zero. All arithmetic operations are possible with such data, including meaningful ratios.

A statistical approach to examine the relationship between two variables. It identifies the nature of the relationship using an equation and can be used for prediction.

Reliability of scales

Refers to the extent to which a rating scale produces consistent or stable results. Stability is most commonly measured using test-retest reliability and consistency is measured using split-half reliability.

Research brief

A written document which sets out an organization's requirements from a marketing research project. This provides the specification against which the researchers will design the research project.

River sampling

A method that invites respondents to take a survey via online banners, ads, promotions, offers, and invitations placed on various websites and social media. Respondents are screened and routed to appropriate surveys based on their characteristics.

Role playing

A projective technique which involves a respondent being asked to act out the character of a brand. It can reveal perceptions and associations with the brand that might not be expressed directly.

When designing a questionnaire, routing refers to the survey logic that allows you to change or limit the content based on previous answers given by respondents. Also known as branching or skip logic.

A subset of the population of interest. In market research, we typically study a sample and use statistical inference to draw conclusions about the wider population.

Sampling error

The difference between the sample value and the true value of a phenomenon for the population being surveyed. It can be expressed mathematically, usually as the survey result plus or minus a certain percentage.

Scaling questions

Questions that ask respondents to assign numerical measures to subjective concepts such as attitudes, opinions, and feelings. Common types include Likert scales and semantic differential scales.

Screening criteria

Criteria used to ensure that the participants in a study are relevant, qualified, and representative of the target population. Screening questions are usually asked at the start of the study and may include demographics as well as questions such as brand usage and product ownership.

Screening questionnaire

A questionnaire used for identifying suitable respondents for a particular research activity, such as a group discussion or in-depth interview.

Secondary data

Information that has been previously gathered for some purpose other than the current research project. It may be data available within the organization (internal data) or information available from published and electronic sources originating outside the organization (external data).

Segmentation

The process of dividing markets into groups of people or occasions that are similar to each other, but different from other groups. It's used to target marketing efforts more effectively.

Semantic differential scales

A scaling approach which requires the respondent to rate a brand or concept using a set of bipolar adjectives or phrases (e.g., helpful and unhelpful; friendly and unfriendly). Each pair of adjectives is separated by a seven-category scale with neither numerical nor verbal labels.

The study of symbols and signs and how they communicate meaning. In market research, it involves analyzing the visual and linguistic elements of product packaging, advertising, and branding to understand cultural and emotional associations.

Sensory testing

A method of evaluating the characteristics of a product or food by measuring how it is perceived by the senses of smell, taste, sight, touch, and sound. It's used to assess product attributes and quality.

Sentence completion

A projective technique which involves providing respondents with an incomplete sentence or group of sentences and asking them to complete them. It can reveal underlying attitudes or perceptions.

Sentiment analysis

A form of text analytics that uses natural language processing and machine learning to determine the emotion expressed in a text. It's commonly used to analyze survey responses, user/customer feedback, and product reviews.

Sequential monadic testing

A survey method whereby each respondent provides feedback on two or more concepts in the same survey. The concepts should be presented in a random order to avoid order bias.

Share of Shelf (SOS)

A metric used to measure the proportion of space a product or brand occupies on a retail shelf compared to its competitors. It helps understand the visibility and accessibility of a product in the retail environment.

Share of Voice (SOV)

A measure of the proportion of advertising a brand or product receives compared to others in the same category. It helps understand how often a brand is advertised relative to its competitors.

Share of Wallet (SOW)

A metric used to measure a company's market share in terms of customer spending. It represents the proportion of a customer's total spending on a given product or service category that is going to a particular company.

Shelf impact testing equipment

Used to determine the visual impact of new packaging when placed on shelves next to competitors' products. It helps assess how well a product stands out in a retail environment.

Simple random sampling

A probability sampling method where every possible member of the population has an equal chance of being selected for the survey. Respondents are chosen using random numbers.

Simulated test markets

A research approach used to predict the potential results of a product launch and to experiment with changes to different elements of a product's marketing mix. It relies on simulated or laboratory-type testing and mathematical modeling.

Snowball sampling

Snowball sampling is a non-probability sampling procedure where additional respondents are identified and selected on the basis of referrals from initial respondents. It tends to be used where the population of interest is small or difficult to identify.

Social media analytics

The use of data from social media platforms to understand consumer behavior and sentiment, as well as to track the performance of campaigns or products. It provides insights into online conversations and trends.

Spearman's rank-order correlation

Spearman's rank-order correlation, often referred to as Spearman's rho , is a non-parametric statistical measure used to assess the strength and direction of the relationship between two ordinal variables. This technique is particularly valuable in market research when dealing with ranked data or when the relationship between variables may not be linear. It works by converting the raw scores of each variable into ranks and then calculating the correlation between these ranks. The resulting correlation coefficient ranges from -1 to +1, where -1 indicates a perfect negative correlation, +1 a perfect positive correlation, and 0 no correlation. Spearman's correlation is robust to outliers and doesn't require the assumption of normally distributed data, making it a versatile tool for analyzing various types of ordinal data in market research, such as customer satisfaction ratings, preference rankings, or Likert scale responses.

Split half reliability

Measures the internal consistency of a summated rating scale and refers to the consistency with which each item represents the overall construct of interest. The method involves randomly dividing the various scale items into two halves.

Standard deviation

A measure of dispersion that calculates the average distance that the values in a data set are away from the mean. It provides a measure of how spread out the data is.

Stapel scales

A scaling approach which is a variation of the semantic differential scaling approach. It uses a single descriptor and 10 response categories with no verbal labels.

Stimulus materials

Materials used in group discussions and individual depth interviews to communicate the marketer or advertiser's latest creative thinking for a product, packaging, or advertising to the respondents.

Stratified random sampling

A probability sampling procedure in which the chosen sample is forced to contain potential respondents from each of the key segments of the population. It ensures representation of all important subgroups.

Structural Equation Modelling

A statistical technique for testing and estimating causal relationships, using a combination of statistical data and qualitative causal assumptions. It allows for the construction of variables which are not measured directly.

Structured observation

A research approach where observers use a record sheet or form to count phenomena or to record their observations. It provides a systematic way of collecting observational data.

System 1 & System 2 thinking

A concept in psychology that describes two different ways the brain forms thoughts. System 1 is fast, instinctive, and emotional; System 2 is slower, more deliberative, and more logical. This concept is applied in market research to understand consumer decision-making processes.

Systematic sampling

A probability sampling approach similar to a simple random sample but which uses a skip interval (i.e., every nth person) rather than random numbers to select the respondents.

A hypothesis test about a single mean if the sample is too small to use the Z test. It's commonly used to determine if there is a significant difference between the means of two groups.

Tabular method of analysis

A method for analyzing qualitative research data using a large sheet of paper divided into boxes. It allows for systematic organization and comparison of qualitative data.

Test-retest reliability

Measures the stability of rating scale items over time. Respondents are asked to complete scales at two different times under as near identical conditions as possible.

Text Mining

The process of deriving high-quality information from text. It involves the discovery of patterns and trends in large volumes of unstructured text data.

Trend Analysis

A technique used to analyze the direction and rate of change in data over time. It's used to predict future values based on historical data.

Triangulation

Using a combination of different sources of data where the weaknesses in some sources are counterbalanced with the strengths of others. It increases the validity and reliability of research findings.

TURF (Total Unduplicated Reach and Frequency)

An analysis used for providing estimates of media or market potential and devising optimal communication and placement strategies. It's particularly useful for deciding on product ranges or media mixes.

Type I error

A Type I error, also known as a "false positive," is a fundamental concept in statistical hypothesis testing that has significant implications for market research. It occurs when a researcher incorrectly rejects a true null hypothesis, essentially concluding that there is a significant effect or relationship when, in reality, there isn't one. The probability of committing a Type I error is denoted by alpha (α), which is typically set at 0.05 or 0.01 in market research studies. This means that researchers accept a 5% or 1% chance of falsely detecting an effect. Type I errors can lead to misguided business decisions, such as implementing ineffective marketing strategies or product changes based on falsely perceived consumer preferences. To mitigate this risk, researchers must carefully consider their significance levels and sample sizes, and potentially employ multiple testing corrections when conducting numerous statistical tests simultaneously.

Type II error

A Type II error, also known as a "false negative," is a crucial concept in statistical hypothesis testing within market research. It occurs when a researcher fails to reject a false null hypothesis, essentially concluding that there is no significant effect or relationship when, in reality, one does exist. The probability of committing a Type II error is denoted by beta (β), and its complement (1-β) represents the power of the statistical test. Type II errors can have serious implications in market research, potentially leading to missed opportunities or overlooked insights. For instance, a company might fail to detect a genuine consumer preference or market trend, resulting in lost competitive advantage. To reduce the risk of Type II errors, researchers often increase sample sizes, choose more sensitive statistical tests, or adjust the significance level, balancing this against the risk of Type I errors. Understanding and managing both types of errors is essential for conducting robust and reliable market research.

See Population of interest.

Unstructured questions

See Open-ended questions.

Usability Testing

A technique used to evaluate a product by testing it with representative users. It's often used for websites, apps, and software to identify any usability problems and collect qualitative and quantitative data.

User generated content

Online material such as comments, profiles, photographs that is produced by end users. It can be a valuable source of insights in market research.

UX (User Experience)

Refers to the overall experience of a person using a product or service, including the design, functionality, and ease of use. UX research is used to understand how people interact with a product, website, or service, and to identify areas for improvement.

Whether the subject requiring to be measured was actually measured. It's a crucial concept in ensuring that research findings are meaningful and accurate.

Verification

The process of checking and verifying the accuracy and reliability of data collected during research. This includes reviewing data for errors, inconsistencies, and missing information.

Viewing rooms

Specialist facilities/locations for group discussions. They are set out in the form of a boardroom or living-room setting with video cameras or a large one-way mirror built into one wall.

Virtual reality

Technology that can be used in market research to create immersive experiences for consumers, allowing researchers to gather data on how consumers interact with products and brands in a simulated environment.

VoC (Voice of Customer)

A research method used to collect customer feedback. It captures how customers feel about a business, product, or service, providing insights that can help create a stronger customer experience.

Refers to the second generation of the World Wide Web, characterized by the shift from static websites to dynamic, interactive, and user-generated content. It has significant implications for online market research.

Refers to the next generation of the World Wide Web, characterized by the integration of artificial intelligence, machine learning, and the decentralized web. It aims to create a more intelligent, rich, and interconnected web.

Web scraping

A technique used in market research to gather large amounts of data from the internet, such as information on prices, product reviews, or social media sentiment. This data can then be used to gain insights into market trends and consumer behavior.

The process of adjusting the value of survey responses to account for over- or under-representation of different categories of respondent. It's used to make the sample more representative of the population.

Word association tests

A projective technique that involves asking respondents what brands or products they associate with specific words. It's useful for understanding brand imagery and building rapport in group discussions.

A visual depiction of words used by respondents in qualitative research, open-ended survey questions, or content appearing on social media or reviews. The font size of the words is determined by the frequency of use.

A hypothesis test about a single mean where the sample size is larger than 30. It's used when the population standard deviation is known and the sample size is large.

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