What is market research? Market research is an organized way of identifying informational needs and collecting, analyzing, interpreting, and reporting data.

It has been rightly said that “false knowledge is more dangerous than ignorance.” Knowledge empowerment is possible with clear, comprehensive, and consistent market research. Why? Because market research increases awareness and decreases apprehension while improving the ability to know more and better.

Why do companies choose market research? Compelling reasons include:

• Connecting with actual or potential customers effectively
• Determining the feasibility of a new product or service
• Gathering constructive feedback to improve the customer experience
• Identifying new market segments
• Reducing risks by testing product concepts

A company may conduct market research on its own or outsource to a reliable market research company to achieve short- and long-term goals.

Do you want to know why we can’t do without market research? Read on to learn more.   

The Bigger Picture: What is Market Research?

As an essential activity based on a consistent and structured search for information, market research focuses on understanding the customer (consumers, influencers, purchasers, etc.), the company (product design, promotion, pricing, sales, etc.), the competition, and learning how to capture the market share.

Market research findings have a major impact on building confidence, persuading key stakeholders, making data-driven decisions across an organization, and much more.

As market research is an expertise-driven and a time-consuming process, it is best handled by a bespoke research company that caters to the unique market intelligence needs of various businesses.

Types of Market Research

Primary Market Research

Also known as “field” research, primary research focuses on first-hand data collection.

Sources of primary research include:

• Chat interviews
• Face-to-face interviews
• Focus groups
• Market research surveys like email surveys and phone surveys
• Online questionnaires
• Polls

Secondary Market Research

Also known as “desk” research, secondary research uses external information published in government publications, company publications, magazines, newsletters, newspapers, pamphlets, and trade publications.

Sources of secondary research include:

• Articles and journals (for prices and usage patterns)
• Government-funded studies and reports
• Historical records
• Industry and government websites, blogs, magazines, and other publications
• Infographics
• Investor presentations, brochures, annual reports, press releases, earnings calls, transcripts of key personnel interviews, and other strategic publications
• Paid sources (Factiva, Bloomberg, Questel Orbit, Seeking Alpha, etc.)
• Scientific papers, journals, conference proceedings, and association publications
• Statistical databases (Example: The U.S. Census Bureau and the Bureau of Labor Statistics provide demographic data)
• Textbooks
• Trade databases
• Videos
• White papers

Compared to primary research, secondary research is an inexpensive and less time-consuming process that utilizes content assets published by government agencies, industry and trade associations, media sources, etc.

However, primary research validates specific data points obtained from secondary research and fills data gaps to provide critical qualitative and quantitative insights.

Types of Research Methods

The two primary research methods are qualitative research and quantitative research. While qualitative research focuses on words, explores ideas, and answers questions like—“how do customers feel about a product or service?”—quantitative research focuses on numbers, graphs, and tables and is suitable for testing or confirming theories and assumptions.

Every company selects a market research method based primarily on its budget, time frame, and research objective(s).

Why is Market Research Important?

Market research provides timely insights to decision-makers for business planning, marketing strategy, and product development.

The insights into customer behaviors or desires are instrumental in:

• Avoiding uncertain market situations
• Capturing market share
• Executing a business plan
• Making product adjustments, and much more

Whether a company wants to understand the target market better or find the target customer for a new product or service, market research helps avoid costly mistakes, minimize risks, and save time and money by achieving meaningful outcomes for research objectives.

For example, while the CEO of a large multinational company may leverage third-party market research to boost sales pipeline, an entrepreneur may choose to do thorough market research individually or collaborate with a market research firm to secure funding from investors. 

The importance of market research in decision making, customer satisfaction improvement, shaping marketing efforts, and other core business areas goes beyond facts, data, and statistics—market research is a tool of transformation.

Without market research, a company cannot gauge the level of competition, evaluate any barriers that may restrict market entry, or test the waters before a product launch.

It’s not surprising that a market research investment is considered a benefit rather than a burden, with worldwide market research spending in billions of dollars.

How Helpful is Market Research for Businesses?

Market research has been widely used to leverage competitor profiles and tap into customer behaviors because actionable insights give better results than theoretical assumptions.

Let us see how market research is helpful for startups and big businesses.

Market Research for Startups

When it comes to new companies, market research is crucial to capitalize on the right opportunities and identify mistakes beforehand to make informed decisions.

Why is well-structured market research recommended for a startup? A small business or startup has unique challenges that need a meticulous problem-solving approach.

For example, market research can help a startup understand the total available market share and market potential, identify potential customer base, craft customer value proposition, analyze existing business models and startup cost, provide recommendations on business models/monetization, and implement/execute strategy.

Furthermore, a better understanding of the buyer persona (target audience) and a detailed competitive analysis can accelerate the startup’s journey toward consolidating its position.

Market Research for Mid-Tier and Large Companies

How can a mid-tier or a large company benefit from market research?

A well-researched market strategy supports a company’s efforts to find customers for its business and expand its footprint. For example, a mid-tier company targeting a new market can assess the market size and discover the right growth opportunities without risking time and money on arbitrary decision-making.

For a large company, market research makes a difference in rethinking the market strategy. For example, when a company requires insightful intervention in boosting revenue or strengthening its market position, market research can provide powerful insights for positive outcomes.

Companies investing in customized research services often find it easier to:

• Assess key demographics and target customers
• Identify business expansion opportunities (opening a new store, launching a product/service, etc.)
• Make informed decisions related to business operations and product offerings
• Set realistic goals for business growth

In a constantly changing market environment, business growth needs a catalyst—market research.

What Problem Areas Does B2B Market Research Address?

Several companies use market research to test out products before a new product launch or gather information from customers about current and potential products or services. For example, insights into consumer interest can guide a company through testing the viability of a product or service.

In general, market research is programmatic as a result of the systematic evaluation of market elements. Moreover, a B2B market research study addresses different problem areas, including but not limited to the following:

Branding and corporate reputation

• How is a company perceived?
• How does this perception differ across customer base groups, stakeholders, or opinion formers?

Decision-making

• What are the key decision criteria used by current or potential customers?
• What are the market trends/industry trends?

Market sizing and assessment

• How big is the market potential?
• What share could a company aim for?
• Which markets or regions offer the most potential for a product or service?
• Who are the competitors?
• What are the strategies, market positions, strengths, and weaknesses of the competitors?
• How easy would it be to penetrate the market?
• What are the market opportunities and threats?

Products and services

• Are there any opportunities for new applications, products, service ideas, or innovation?
• Can an organization assess the potential using an early prototype?
• What are the packaging or pricing aspects?
• Where are the gaps (if any)?

Performance assessment and tracking

• How good is the performance of products or services (vis-à-vis last year/others in the field)?

Segmentation and targeting

• How can the customer base be segmented into different types?
• How are different customer segments driven by need/attitude?
• How can an organization forecast the ever-changing drivers of demand in each segment?
• How can an organization gain a competitive advantage by tailoring its products/services to different customer groups?

What Are the Key Components of Market Research?

Market research is a scientific, sequential, and an effort-intensive process—starting with a well-defined research aim and ending with a well-crafted report presentation.

Now, let us look at the key components of market research:

Research Aim and Objectives

Research aim denotes a goal or intention of a research project. On the contrary, research objectives are specific steps taken to achieve meaningful and measurable outcomes at the end of a research project.

Research Approach & Strategy

A research approach includes techniques, tools, and processes to collect, analyze, and interpret data. On the contrary, a research strategy consists of a step-by-step plan of action to conduct systematic and timely research for detailed reporting.

Sampling Plan

A sampling plan is a detailed outline of sample sizes and the criteria for accepting or rejecting sample units. 

Data Collection

Data collection is the process of collecting, measuring, and analyzing accurate data from a variety of sources using standard validation techniques.

Data Triangulation

As a significant qualitative research method, data triangulation involves converging and validating data obtained from multiple sources (from primary and secondary research) to enhance the credibility and validity of research findings.

Data Analysis & Forecasting

Data analysis is the process of analyzing and modeling data by applying statistical and/or logical techniques. Without inspecting, cleansing, and evaluating raw data, it is not possible to extract useful information for strategic decision-making.

Data forecasting is the process of using historical data to make predictive estimates that determine the direction of future trends that have an impact on budget allocation, expense planning, etc.

Report Preparation & Presentation

Report preparation involves preparing a structured document to present relevant information in a concise format to diverse audiences and stakeholders. A well-written market research report answers the research objective(s) and supports informed decision-making.

As the final step of the market research process, report presentation involves presenting the research findings in detail (including charts, infographics, slide shows, etc.) and persuading the interested parties to act upon the recommendations of the research study.

Although the market research process varies in complexity and scope, it is believed that the return on investment for marketing efforts is higher if market research is performed consistently over time instead of committing to a one-time research effort.

An experienced market research company has expertise in primary and secondary research and access to a wide pool of consultants and industry experts for real-time market insights. 

For example, Blackridge Research & Consulting caters to a wide range of market research needs. Whether you want to tap into a new market for growth opportunities or optimize the positioning for your brand, let qualified market research professionals guide you with bespoke market research solutions.

Contact the research specialists for professional guidance and personalized service if you have a specific question on market research reports or custom research services.

Thinking About a Career in Market Research?

A career as a market research analyst rewards you with a valuable skill-set and experience in a high-demand role. Do you want to advance your career in market research?

Are you looking for challenging market research projects to leverage your expertise in delivering data-backed insights?

Does collaborating with a diverse team with versatile capabilities interest you? If yes, learn more about the opportunities to take your career to the next level.

Wrapping Up

Market research is indispensable to businesses of all sizes to make data-driven decisions, mitigate risks, and validate insights. From competitive analysis and data analysis to market analysis and consumer behavior, market research plays a pivotal role in helping businesses survive and thrive in a rapidly evolving economy.

Decision-making across an organization needs reliable industry data-driven insights from a trusted market research provider. Conducting market research with precision and patience is essential to achieving perfect results.

A dependable market research organization transforms expectations into energizing outcomes. Get in touch today if you’re looking for actionable data recommendations and proven market research solutions.