If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
Every business encounters challenges or questions that require deeper analysis to arrive at a solution.
How do you price a new product or service so that you’re not too high compared to the competition yet not so low that you’re undervaluing the offering? What’s the best way to establish and market your brand? How will your industry evolve over the next year or two?
These and many other business problems are answered with marketing research, also referred to simply as market research.
Marketing research is the formal process of collecting data to understand a customer or business problem and providing the information needed to find a solution.
People and teams across an organization, from the CEO to the group responsible for a company’s products, can benefit from marketing research.
Typically, a member of the marketing group spearheads that research project.
This research is invaluable for a number of scenarios. Examples include:
Speaking of integrated marketing, market research results assist the integrated marketing process by:
The marketing research process includes five steps. Let’s look at each in detail.
The first and most important step in the process is to define the research goal. This involves understanding a key business problem that the research is intended to help solve.
The problem can arise from any area of the organization.
If you’re launching a new product or service, you may need insight into which features are critical to include in the offering. Another problem might be understanding why sales are not growing. Or it could be as specific as deciding the best email marketing software to use.
Research provides the necessary intelligence to arrive at an answer.
For example, my team built a software application that allowed companies to manage their online advertising campaigns. Once we built the app, the next question was "What subsequent capabilities should we add to the product?" I implemented marketing research to determine the set of features most desired by customers to work on next.
The challenge here is to translate a business problem into an objective achievable through research. These suggestions can help.
After defining the goal, it’s time to design the research project.
The design portion involves determining the methodology to capture research data, specifics around how to execute the chosen methodology, and the sample size necessary to obtain reliable results.
Various methodologies exist to perform marketing research. Choose the appropriate approach to gather the desired data based on your objectives.
Some of the methods to consider include:
Once the methodology is selected, the details must be ironed out. To ensure the research delivers the necessary results to solve the business problem, a number of decisions must be made. These decisions include:
As you can see, a lot of thought goes into designing the research. Here are some tips to help you with this portion of the market research steps.
Next comes the data collection process. Launch whatever means of data collection you defined during the design stage. This can be as simple as deploying an online survey tool or as involved as visiting customers to perform in-person interviews or focus groups.
The data collection can even include mining your own CRM software for data insights. This makes sense particularly if your business problem is related to customer acquisition or retention, and you’re using the software for activities such as CRM marketing or database marketing.
The data collection piece must be completed before proceeding to the next phase of the process. Therefore, factor in the appropriate amount of time for this piece when planning out your research project.
This is the heart of the research project, so it’s important this step proceed smoothly. Here are suggestions for making that happen.
Now is the time to make sense of the data you’ve collected. The goal is to arrive at the insights you were looking for at the outset.
You’re looking for clear trends or conclusions that speak to how you can solve the problem you defined at the start of the process.
If you analyze the data and cannot determine a clear outcome, it means your sample size was too small or your research design lacked a key component. The latter rarely happens if you looked at initial results during the data collection step. So you’ll need to make adjustments and collect more data.
Depending on the complexity of the research objectives, methodology used, and data points collected, your analysis may require statistical modeling techniques like a regression analysis, calculation of standard deviations, and other means of coalescing around factual, accurate, and reliable data to draw your conclusions.
The data analysis portion can be tricky. Here, a marketing research specialist is invaluable in compiling results, particularly when performing qualitative research such as customer interviews, and performing statistical modeling.
Whether a specialist is available or you’re analyzing the results yourself, here are some helpful tips.
The marketing research process concludes with the research report. This tool enables sharing of the results, conclusions, and recommendations arising from the analysis.
The report is a document or presentation summarizing the most meaningful takeaways from the research findings. It provides the necessary intelligence for the stakeholders to make informed business decisions.
A typical report begins by restating the research objectives and business problems. From there, present your recommendations to address those problems based on the research outcome.
Note that while the report answers the question that prompted the research in the first place, marketing research is just one input into a business decision, but not the only factor considered by decision-makers.
All the work up to this point culminates in this research report. See these suggestions for how to finish strong.
The marketing research process, like any other project, requires planning.
Determine the timeframe for completion and identify the required resources and budget to properly execute the market research. Then obtain any necessary approval for these expenditures as part of the design phase of the project.
With the appropriate resources and support behind you, the marketing research project will deliver insightful information to inform your business decisions.
Our Small Business Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.