Market research is the analytical center that should drive many, if not all, business decisions. Market research is valuable for new product development, new market expansions, or defining and refining your brand, as well as ultimately identifying and understanding your audience. The following is a brief guide into the steps any business should follow in order to conduct effective market research.
Step 1: Define Your Goals
Start at the end! Understand what results you are looking for before you define your research questions. Your objectives should be clear, concise, and measurable. For example, are you trying to understand your customer's needs, evaluate competitors, or test a product idea? Having well-defined goals will set the direction of your research as well as help you define the appropriate research questions and methods needed to gather complete data.
Step 2: Who is your Target Audience?
Part of your research may be in identifying the ideal candidate for your product or service. Your ideal customers may differ based on individual demographics, psychographics, and behavior. Some of the most common factors to evaluate are
Age
Gender
Location
Income level
Interests
Purchasing habits
Your specific research may require other unique attributes that are important to measure. Define everything you know and use it. Also, look to determine everything you don't know and answer it through research. Think about the end result as a number of customer personas which will help you visualize and segment your audience effectively. The more detailed the profile, the more direct and unique your outreach can be.
Step 3: Consider your direction
Determine if you can utilize external agencies to gather research and eliminate inherent bias, ensuring an objective study. Internal research is subjective to confirmation bias in which one will interpret and look for results that are favorable. This can undermine the research process as results would be used to go in a pre-determined direction. Prior to conducting research, consider how you can ensure that your study is objective, both in the data collection and data analysis stages. Your budget is important, especially for a small or brand new business, don't settle - identify a number of potential partners to share price quotes to see if your budget allows for an outside objective agency that aligns with your goals.
Step 4: Conduct Primary Research
It is likely that you will need some primary research for your study. Your business has a unique set of qualities and needs that likely cannot be identified exclusively through secondary research. Consider new product research, it is likely that a similar product exists with data on sales volume and interest. This data is important, but it does not identify if the market will actually have an interest in the new product in its current stage or if further revisions are needed. Primary research involves collecting firsthand data directly from potential customers and becomes your most valuable resource only you have access to in your market research study. The most common methods include:
Surveys: Utilize online survey tools to develop and distribute surveys to gather insights at scale.
Interviews: Recruit and conduct one-on-one discussions to gain an in-depth understanding.
Focus Groups: Gather a small group of people to discuss and provide feedback and clarification.
Observation: Study customer behavior in real-life settings, such as in stores or online.
Step 5: Collect Secondary Data
Supplement your primary research with available secondary research. Gather information from various sources to validate results and provide pros/cons related to your product or service. Secondary research involves analyzing existing data from credible sources, such as:
Industry Reports: Research from organizations like Gartner or Statista.
Government Publications: Census data and economic reports.
Competitor Analysis: Review websites, social media, and financial reports.
Market Trends: Examine market reports, news, and customer reviews.
Step 6: Understand the Competition
Some data on your competition should be collected from your secondary research. Determine who the key players are in your competitive space as well as the competition that is most similar to your size, scale, and offerings. Top businesses in the industry have set the standard - understanding their operations showcases what the market has determined is of high value. Your direct competitors, however will be necessary to evaluate to better project your place in the market. Understanding your competitors can provide insights into gaps in the market and areas for differentiation. Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) to evaluate how your business compares to others.
Step 7: Interpret and Apply Your Findings
Once you have gathered data from all of your sources, analyze trends and patterns to draw meaningful conclusions. Ensure your data is clean and structured to easily identify trends. Your reports should follow a similar structure to the research path taken (i.e. customer profiles - primary research - secondary research - SWOT). Identify all key takeaways that can inform your business strategy, whether it’s adjusting pricing, refining your product, or improving marketing campaigns.
Step 8: Continuously Monitor the Market
Market research isn’t a one-time task. Customer preferences and industry trends evolve, so regularly updating your research ensures your business stays relevant and competitive. Follow a similar research path in each iteration to ensure continuity and allow for longitudinal comparisons. Refine your research - data collection likely highlighted gaps in your analysis - be flexible and change your research to eliminate these gaps. By following these steps, you can make data-driven decisions that increase the chances of business success. Investing time in thorough market research helps you mitigate risks, understand your audience better, and position your brand effectively in the marketplace.
If you are considering a market research study and have questions on how to start, what resources you should use, or would like a quote for services, our team is happy to get you moving in the right direction. Feel free to reach out to info@evolvemarketresearch.com.
Comments