market research benefits and limitations

11 Benefits of Market Research + Free Templates

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The benefits of market research are long-proven. Yet still, there are many who focus on instinct instead of insight.

While intuition is all good and well, there’s no getting away from the power of cold-hard data.

In this post, I list 11 market research benefits, with real-world examples and six free research templates thrown in for good measure.

1. Better communication with customers

Why it matters: Effective communication is the cornerstone of good relations. And, with how much time, effort, and money it takes to win a new client, ensuring you stay in their good books isn’t just nice – it’s a necessity.

The first benefit of market research is the ability to learn about your customer’s likes and dislikes – so you can adapt how you position the business and its products accordingly. Tailored communications speak to customers in a way that resonates far better than generalized messages.

The one-size-fits-all approach no longer works. Delivering comms in the right format, at the right time, via the right platform can boost engagement and help focus on driving value. With it, customers feel appreciated and receive information that’s both useful and relevant.

These days, all it takes is a quick click, and customers can unsubscribe from communications. This is why businesses must ensure every communication counts.

Example: Market research surveys are an ideal way to quickly understand how customers feel about your communications with them. Be direct, and ask them about the content, frequency, and formats they prefer.

If you want to establish the best time or day of the week to email, you can use your email campaign tracking data to show you the best and worst times, based on open rates, and click-through rates.

2. Enables strategic, data-driven plans

Why it matters: Market research benefits all types and stages of business planning. It gives you the numbers and insights you need to make accurate forecasts. It can also impact key decisions that can help you develop and adapt your strategy.

Here are a few examples where market research can benefit data-driven decision-making :

• Deciding whether to modify or discontinue a product.
• Prioritizing new features to develop for an existing product.
• Establishing which marketing channels to invest in.
• Selecting which social media platforms to utilize.
• Choosing which new markets to enter or where to open a new retail outlet.
• Evaluating the impact of a cost increase or change to pricing strategy.
• Discover new partners, affiliates, or publishers to work with.
• Targeting a new persona or different segment of a market.

Market research serves as a trusty compass, helping guide and steer decisions that impact growth and profitability. Once you implement a new tactic or campaign, you can again benefit from market research to measure and track ongoing success.

3. Develop detailed target personas

Why it matters: It’s no secret that a comprehensive understanding of one’s target audience is fundamental to an organization’s success. Everything from product development to positioning and marketing is impacted by the effective development of target personas.

While most companies have a decent understanding of what their ideal customer profile looks like; a distinct advantage of market research is the depth of detail it offers about the preferences, behaviors, and habits of a target audience – based on actual facts and everyday actions they take online.

By doing audience analysis and consumer journey tracking , organizations can discover insights about their ideal customers quickly and in finite detail. So instead of having a static persona that doesn’t really change with the times; marketers can discover things like:

• Age, gender, and geography
• Audience loyalty & interests
• Cross-shopping behaviors
• Product search trends
• View audience overlaps with rivals
• Identify drop-off points in funnels
• Optimize conversion funnels
• Discover which marketing channels appeal to a specific audience

Grab our customer persona template to use a framework for this research – it’s at the end of this post, along with 5 other useful market research templates !

4. Reduce costs and save time

Perhaps one of the biggest benefits of market research for a business is its ability to help organizations improve efficiency and reduce outlay – both from a time and cost perspective. While each business achieves different outcomes, doing proper research can help pave the way for process improvements.

A few examples include:

• Spending less on marketing channels that don’t appeal to a target audience or drive ROI.
• Decrease customer churn via surveys, enhanced support, or more suitable product offerings.
• Prevent you from entering a new market in a territory that’s already saturated.
• Testing the viability or appetite for a new product or service before making investment decisions.
• Reduce customer acquisition costs (CAC) through clearer targeting and messaging.
• Identification of new partnerships or affiliates who can drive referrals to your business.

DocSend uses Similarweb to reduce marketing spend by 20% and reduced research time by 10% – as an added bonus it saw website traffic gains of around 10%.

Read more about how market research benefited DocSend here .

5. Stay ahead of the competition

Why it matters: These days, the competition is fierce in almost every market. Customers have many options to choose from, and outpacing your rivals is a constant battle. From new product or service offerings to campaigns and content – not to mention promotions and partnerships; keeping a keen eye on your market positioning is key.

A core benefit of market research is knowing what other players in your market are doing. More to the point, market research actually shows you how well these offerings are doing.

A competitive analysis framework is a great way to systematically record and track what your rivals are doing. It can help you spot opportunities, such as:

• Develop new marketing campaigns and creatives
• Adapt your product or service offerings
• Give insights into new content to write about
• Show you which channels work best for your target market
• Find underserved segments of a market
• See what customers like or dislike about your rivals
• Help you develop your unique selling proposition (USP)

Good market research can be the differential factor that gives you an edge in your market.

In this scenario, I want to analyze the competitive landscape of a social media management company. I chose Sprout Social to review as it’s considered a market leader.

See how much competitive intel I can grab in less than a minute

In a snapshot, I can see an overview of its traffic and engagement. This includes the total visits, unique visitors , a link to its apps, and a breakdown of traffic by channel. With a quick compare, I see how these metrics stack up against others in the market. Later.com and influencermarketinghub.com are two players who consistently outperform sproutsocial.com – which means I can delve deeper into their successes, campaigns, and content next.

From the platform, I can see how many referrals they’re getting, and from where. Which ad networks and campaigns they’re running, and copies of the creatives being used.

Next, I look at the most popular pages on Sprout Social’s site. This shows several pages on the topic of small business social media are achieving significant growth – indicating my target audience is responding to these pages, so I should be covering or promoting content on a similar theme.

So, in less than a minute, I’ve discovered

• How my competitor stacks up vs others in the market
• Which traffic channels are growing
• The best referral partners and advertisers
• What marketing channels are showing the best results
• Copies of their ad creatives
• What content topics are the most popular
• Top industry search terms
• Uncovered two other major players to evaluate

Software like Similarweb makes it quick and easy to see the insights and metrics that matter most. Here, you can discover where you can get a competitive edge, and keep track of market trends and rival campaigns.

6. Discover the best marketing channels

From email marketing to socials, affiliates, referrals, paid ads, and more; there are many marketing channels to leverage – and it’s not always obvious which is right for your business. Another key benefit of doing market research is the ability to hone in on the channels that deliver the best return on investment.

A trial-and-error approach can be costly. Not just from a dollar perspective, it can be a drain on your resources too. By first establishing the optimal marketing mix for your target audience or market, you can save time and money, and reach your goals faster.

Similarweb Digital Research Intelligence can show you which channels work best for your market and rivals. It also highlights the specific ad creatives and content being used for high-performing campaigns.

Here, you see a snapshot of the marketing channels being used across five competitive sites. It shows the biggest drivers of traffic are direct and organic search. By clicking on any single channel, you can get a complete breakdown of the respective details. I’ve clicked to expand social media, as just one example, here’s what it tells me.

As well as being able to instantly see the insights that count, I can click on any channel to see a detailed breakdown of performance. Next, I can compare each channel to see who is outperforming others – which tells me exactly who I need to take a closer look at.

7. Identify growth opportunities

The benefits of doing market research apply to those launching new products or entering new markets . However, periodic research can also help you spot growth-focused opportunities that may not have been considered before.

Another compelling entrant to include in the benefits of market research is its ability to unearth opportunities to grow. Whether that’s through finding new customers, markets, channels, or creative ways to go to market and get more eyes on your business. A good case in point is in the identification of new partnerships for referrals; something that often comes about when doing a competitive analysis .

The advantages of using market research for growth are ongoing, throughout the lifecycle of your business. For example:

• Reviewing competitor marketing channels could uncover key findings about a new affiliate site that’s sending a volume of traffic to their site.
• A guest post or piece of content generates a high level of interest and drives traffic to the site.
• Untapped segments for your products. Perhaps a rival is doing a better job of appealing to a different demographic. This, in turn, presents an opportunity to diversify your messaging or switch marketing channels. The same could apply to a new location or geographic region.
• New partnerships. Joint ventures between businesses that share a similar target demographic can be mutually beneficial – helping both parties reach a new ready-prepped customer base.
• Perhaps a rival is offering an add-on or upsell that you’ve failed to consider.
• You might also conduct market research surveys where customers tell you something they’d like but which you don’t yet offer.

Success story: See how AirBnB used Similarweb to uncover opportunities for growth in new markets.

8. Spot new or emerging trends

Why it matters: With how quickly consumer behaviors change and markets shift, it’s important to move with the times. Market research can help businesses stay in touch with what’s happening – something that applies to consumers, competitors, and the industry as a whole.

From changes to purchasing behaviors, new technologies, new products, or service features; researching trends and staying close to rising players in your market allows you to keep tabs on what things are attracting attention.

• Which keywords or phrases are trending in your industry?
• Is there a new player showing significant growth in your market?
• What are your rival’s highest-hitting pages?
• How are apps impacting your market – do you know which of your competitors have one, and is it successful?
• Which campaigns in your industry are working and gaining traction?
• Is there a specific asset, whitepaper, or offering that your target audience responds to?
• Are there any seasonal trends that impact your market?
• Can you see spikes in specific search terms or phrases?

While you can use digital research tools like Similarweb to quickly analyze a market, search trends, seasonal patterns, mobile app intelligence , and more – qualitative data, like surveys can be leveraged to understand customers and changing behaviors too.

Read more about how Wonderbly achieved its success here.

9. Makes it easy to evaluate and track your success

Why it matters: With the knowledge of where your business is performing well, or falling behind, you can set goals and direction more clearly. Benchmarking shows you industry standards, and maps out how rivals are doing; so you can measure relative performance.

For a business to grow, it needs to push the boundaries. The benefit of using market research here is that it shows you where and how big those boundaries are. A survey from PWC found businesses that set benchmarks achieve 45% more productivity and grow, on average 69 times faster than those that do not.

There are various types of benchmarking – each of which makes it possible to unpack and track the successes of those in your market and drill down into what success looks like for your business.

10. Inform market analysis – SWOT

Why it matters: A further benefit of doing market research is that it can show you any relative strengths, weaknesses, opportunities, and threats that exist between competitors and in a market. Greater awareness of these facts helps drive the right actions and gives clarity on areas of focus for the business. Without it, your business is susceptible to preventable mistakes.

With company and market research , you find out where opportunities and threats exist in your ecosystem. From environmental or technological factors to internal considerations; forewarned is forearmed. What’s more, a regular review of your SWOT, informed by market research, allows you to capitalize on new opportunities faster than others and keeps you in the strongest position where gaining a competitive edge is concerned.

Helpful: Read our complete guide to doing an industry SWOT analysis .

11. Inform a content marketing strategy

Why it matters: These days, the importance of having an effective, relevant, and successful content marketing strategy cannot be overstated. According to a 2020 competitive intelligence survey , companies have, on average, 29 competitors. So, regardless of your sector, in the digital world, it’s constant competition – be it for better visibility online, a higher CTR, or increased engagement.

So, how does market research benefit a business? And how can you stand out and get found online? With content marketing, of course.

An advantage of using market research to inform your content marketing strategy is that data doesn’t lie. Yes, it’s an old one but a good one. A data-driven approach to content marketing is a surefire way to uncover the most searched keywords , the right topics, and content to harness to your advantage.

You can use market research to uncover the following:

• The busiest pages on any website.
• Which topics and keywords drive the most traffic in your market?
• New topics or keyword phrases that are trending or appearing seasonably.
• Inform topic planning or theme building for a blog.
• Help you discover new opportunities for dedicated landing pages.
• What content or assets an audience engages with most.
• Which channels are the most effective to deliver content?
• The best time of day to post new content.

Success story:  See how Tourism New Zealand benefits from market research ; and how they use Similarweb to research content and keywords.  

Limitations of Market Research

Regardless of whether it’s for an enterprise company or an entrepreneur – time, cost, and experience are viewed as the biggest limitations of market research. But this is an outdated perception that is no longer relevant or true to life.

Here’s how things are in 2022.

• If cost is considered a limitation of market research – use secondary market research methods. Most of the time, the data can be found online, for free.

This guide to desk research shows you the best places to find secondary research data. 

• Should you view time as a limitation – use software like Similarweb Digital Research Intelligence to quickly view insights in almost any market, company, or product.

If you’re on a deadline, let’s say you need to do market research for a business plan , market research tools can help you get it done in a day.

• Perhaps you feel a lack of experience is preventing you from doing market research. Most market research tools require little to no training and are highly intuitive.

Use market research templates to guide you through the key data points you need to collect. 

Benefits of market research – In summary

Market research benefits any business, at any stage. From product teams to sales, customer support, marketing, operations, and management – there’s a relevant application in almost every department. However, many organizations choose only to use it for limited periods in limited areas of their business.

Similarweb Research Intelligence makes key insights accessible to all. And with the ability to impact an entire business, at almost every level, it’s a market research tool with the power to deliver immense value and insights at pace.

Stop Guessing, Start Analyzing

Get actionable insights for market research here

What are the advantages and disadvantages of market research?

The advantages of market research include things like gaining a competitive edge, data-driven decision-making, reducing expenditure, finding new markets to enter, trend-spotting, and developing growth-focused strategies. The only disadvantage is in how it’s conducted, and the time it takes to carry out the research. However, market research tools are designed to make the task of conducting research more efficient, and cost-effective.

Which goals can market research help you accomplish?

Market research can help you achieve key business objectives, such as growing your customer base, retaining a higher number of customers, improving marketing effectiveness, and increasing revenue.

How can market research benefit entrepreneurs?

The benefits of market research to entrepreneurs are plentiful. It can help startups and new businesses research the viability of a new product or service they want to bring to market. In addition, it allows entrepreneurs to accurately forecast demand , which can help both operationally and financially.

by Liz March

Digital Research Specialist

Liz March has 15 years of experience in content creation. She enjoys the outdoors, F1, and reading, and is pursuing a BSc in Environmental Science.

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The Ultimate Guide to Market Research: Types, Benefits, and Real-World Examples

Team Fratzke

Today's consumers hold a lot of power when making purchase decisions. With a quick inquiry in a search engine or search bar within a social media platform, they can access genuine reviews from their peers without relying on sales reps.

Considering this shift in consumer behavior, adjusting your marketing strategy so it caters to the modern-day buying process is essential . To achieve this, you must thoroughly understand your target audience, the market you operate in, and the factors influencing their decision-making.

This is where market research can be leveraged so you stay current with your audience and industry. 

Article Overview

In this article, we’ll walk you through everything you need to know about how to conduct market research, including:

• Why market research is essential for understanding your target audience, the market you operate in, and factors influencing decision-making
• What are the different types of market research, such as primary and secondary market research
• How to collect information about your customers and target market to determine the success of a new or existing product, improve your brand, and communicate your company's value
• Real-world examples of companies leveraging market research

What is market research?

Market research is a necessary process that involves collecting and documenting information about your target market and customers. This helps you determine the success of a new product, improve an existing one, or understand how your brand is perceived. You can then turn this research into profits by  developing marketing strategies and campaigns to effectively communicate your company's value .

While market research can provide insights into various aspects of an industry, it is not a crystal ball that can predict everything about your customers. Market researchers typically explore multiple areas of the market, which can take several weeks or even months to get a complete picture of the business landscape.

Even by researching just one of those areas, you can gain better insights into who your buyers are and what unique value proposition you can offer them that no other business currently provides.

Of course, you can simply use your industry experience and existing customer insights to make sound judgment calls. However, it's important to note that market research provides additional benefits beyond these strategies. There are two things to consider:

• Your competitors also have experienced individuals in the industry and a customer base. Your immediate resources may equal those of your competition's immediate resources. Seeking a larger sample size for answers can provide a better edge.
• Your brand's customers do not represent the entire market's attitudes, only those who are attracted to your brand.

The market research services industry is experiencing rapid growth , indicating a strong interest in market research as we enter 2024. The market is expected to grow from approximately $75 billion in 2021 to $90.79 billion in 2025, with a compound annual growth rate of 5%. 

Your competitors have highly skilled individuals within the industry, meaning your available personnel resources are likely similar to those of your competitors. So what are you going to do to get ahead?

You’re going to do thorough market research, which is why seeking answers from a larger sample size is essential. Remember that your customers represent only a portion of the market already attracted to your brand, and their attitudes may not necessarily reflect those of the entire market. You could be leaving money on the table by leaving out untapped customers .

Why do market research?

Market research helps you meet your buyers where they are. Understanding your buyer's problems, pain points, and desired outcomes is invaluable as our world becomes increasingly noisy and demanding. This knowledge will help you tailor your product or service to appeal to them naturally. 

What’s even better is when you're ready to grow your business, market research can also guide you in developing an effective market expansion strategy.

Market research provides valuable insights into factors that impact your profits and can help you to :

• Identify where your target audience and current customers are conducting their product or service research
• Determine which competitors your target audience looks to for information, options, or purchases
• Keep up with the latest trends in your industry and understand what your buyers are interested in
• Understand who makes up your market and what challenges they are facing
• Determine what influences purchases and conversions among your target audience
• Analyze consumer attitudes about a particular topic, pain, product, or brand
• Assess the demand for the business initiatives you're investing in
• Identify unaddressed or underserved customer needs that can be turned into selling opportunities
• Understand consumer attitudes about pricing for your product or service.

Market research provides valuable information from a larger sample size of your target audience, enabling you to obtain accurate consumer attitudes. By eliminating any bias or assumptions you have about your target audience, you can make better business decisions based on the bigger picture. 

As you delve deeper into your market research, you will come across two types of research: primary and secondary market research . Simply put, think of two umbrellas beneath market research - one for primary and one for secondary research. In the next section, we will discuss the difference between these two types of research. That way, if you work with a market who wants to use them, you’ll be ready with an understanding of how they can each benefit your business.

Primary vs. Secondary Research

Both primary and secondary research are conducted to collect actionable information on your product. That information can then be divided into two types: qualitative and quantitative research. Qualitative research focuses on public opinion and aims to determine how the market feels about the products currently available. On the other hand, quantitative research seeks to identify relevant trends in the data gathered from public records. 

Let's take a closer look at these two types.

Primary Research

Primary research involves gathering first-hand information about your market and its customers. It can be leveraged to segment your market and create focused buyer personas . Generally, primary market research can be categorized into exploratory and specific studies.

Exploratory Primary Research

This type of primary market research is not focused on measuring customer trends; instead, it is focused on identifying potential problems worth addressing as a team. It is usually conducted as an initial step before any specific research is done and may involve conducting open-ended interviews or surveys with a small group of people.

Specific Primary Research

After conducting exploratory research, businesses may conduct specific primary research to explore issues or opportunities they have identified as necessary. Specific research involves targeting a smaller or more precise audience segment and asking questions aimed at solving a suspected problem. Specific primary research reveals problems that are unique to your audience so you can then offer a unique (and valuable) solution.

Secondary Research

Secondary research refers to collecting and analyzing data that has already been published or made available in public records. This may include market statistics, trend reports, sales data, and industry content you already can access. Secondary research really shines when you go to your competitors . The most commonly used sources of secondary market research include:

• Public sources
• Commercial sources
• Internal sources

Public Sources

When conducting secondary market research, the first and most accessible sources of information are usually free . That’s right–these public sources are free and at your fingertips so there’s no reason for you to not be checking them out and leveraging them for your own gain.

One of the most common types of public sources is government statistics. According to Entrepreneur, two examples of public market data in the United States are the U.S. Census Bureau and the Bureau of Labor & Statistics. These sources offer helpful information about the state of various industries nationwide including:

Commercial Sources

Research agencies such as Pew, Fratzke, Gartner, or Forrester often provide market reports containing industry insights from their own in-depth studies . These reports usually come at a cost if you want to download and obtain the information, but these agencies are experts at what they do, so the research is most likely valuable.

Internal Sources

Internal sources of market data can include average revenue per sale, customer retention rates, and other data on the health of old and new accounts. They are often overlooked when it comes to conducting market research because of how specific the data is; however, these sources can be valuable as they provide information on the organization's historical data.

By analyzing this information, you can gain insights into what your customers want now . In addition to these broad categories, there are various ways to conduct market research. Let’s talk about them.  

Types of Market Research

• Interviews (in-person or remote)

Focus Groups

• Product/ Service Use Research

Observation-Based Research

Buyer persona research, market segmentation research, pricing research.

• Competitive Analysis Research

Customer Satisfaction and Loyalty Research

Brand awareness research, campaign research.

Interviews can be conducted face-to-face or virtually, allowing for a natural conversation flow while observing the interviewee's body language. By asking questions about themselves, the interviewee can help you create buyer personas , which are made by using information about the ideal customer, such as:

• Family size 
• Challenges faced at work or in life 

And other aspects of their lifestyle. This buyer profile can shape your entire marketing strategy , from the features you add to your product to the content you publish on your website. Your target audience will feel that the marketing was made just for them and will be drawn to your product or service.

Focus groups are market research involving a few carefully selected individuals who can test your product, watch a demonstration, offer feedback, and answer specific questions. This research can inspire ideas for product differentiation or highlight the unique features of your product or brand that set it apart from others in the market.  This is a great market research option to gain specific feedback, which you can use to improve your services .

Product/Service Use Research

Product or service usage research provides valuable insights into how and why your target audience uses your product or service.  This research can help in various ways including:

•  Identifying specific features of your offering that appeal to your audience. 
• Allowing you to assess the usability of your product or service for your target audience. 

According to a report published in 2020, usability testing was rated the most effective method for discovering user insights, with a score of 8.7 out of 10. In comparison, digital analytics scored 7.7, and user surveys scored 6.4.

Observation-based research is a process that involves observing how your target audience members use your product or service. The way that you intended your product or service to be used may not be the actual way that it is used. Observation-based research helps you understand what works well in terms of customer experience (CX) and user experience (UX), what problems they face, and which aspects of your product or service can be improved to make it easier for them to use.

To better understand how your potential customers make purchasing decisions in your industry, it is essential to know who they are. This is where buyer persona research comes in handy. Buyer or marketing personas are fictional yet generalized representations of your ideal customers. They give you someone to whom you want your marketing efforts to empathize and move, even though they don’t really exist. 

Gathering survey data and additional research to correctly identify your buyer personas will help you to visualize your audience so you can streamline your communications and inform marketing strategy . Key characteristics to include in a buyer persona are:

• Job title(s)
• Family size
• Major challenges

Market segmentation research enables you to classify your target audience into various groups or segments based on specific and defining characteristics. This method allows you to understand their needs, pain points, expectations, and goals more effectively.

Pricing research can provide valuable insights about the prices of similar products or services in your market. It can help you understand what your target audience expects to pay for your offerings and what would be a reasonable price for you to set. Correct pricing is important because if you set it too high, consumers will go to your cheaper competitor; but if you set it too low, your consumers may become suspicious of your product or service and still end up with your competitor. This information allows you to develop a solid pricing strategy aligning with your business goals and objectives. 

Competitive Analysis

Competitive analyses are incredibly valuable as they provide a deep understanding of your market and industry competition. Through these analyses, you can gain insights like: 

• What works well in your industry 
• What your target audience is already interested in regarding products like yours
• Which competitors you should work to keep up with and surpass 
• How you can differentiate yourself from the competition

Understanding customer satisfaction and loyalty is crucial to encouraging repeat business and identifying what drives customers to return (such as loyalty programs, rewards, and exceptional customer service). Researching this area will help you determine the most effective methods to keep your customers coming back again and again. If you have a CRM system, consider further utilizing automated customer feedback surveys to improve your understanding of their needs and preferences.

Brand awareness research helps you understand the level of familiarity your target audience has with your brand. It provides insights into your audience members' perceptions and associations when they think about your business.This type of research reveals what they believe your brand represents. This information is valuable for developing effective marketing strategies, improving your brand's reputation, and increasing customer loyalty .

To improve your marketing campaigns, you need to research by analyzing the success of your past campaigns among your target audience and current customers. This requires experimentation and thoroughly examining the elements that resonate with your audience. By doing so, you can identify the aspects of your campaigns that matter most to your audience and use them as a guide for future campaigns. 

Now that you understand the different market research categories and types let's look at how to conduct your market research.  Using our expertise and experience, we’ve created a step-by-step guide to conducting market research.

How to Do Market Research (Detailed Roadmap)

• Define the problem or objective of the research. 
• Determine the type of data needed. 
• Identify the sources of data. 
• Collect the data. 
• Analyze the data. 
• Interpret the results. 
• Report the findings. 
• Take action based on the findings.

1. Define the problem or objective of the research

Defining the problem or objective of the research is the first step in conducting market research. This involves identifying the specific issue that the research is trying to address. It is essential to be clear and specific about the research problem or objective, as it will guide the entire research process.

2. Determine the type of data needed

After defining the research problem or objective, the next step is determining the data type needed to address the issue. This involves deciding whether to collect primary or secondary data. Primary data is collected directly from the source, while secondary data is collected from existing sources such as government reports or market research studies.

3. Identify the sources of data

Once the data type has been determined, the next step is identifying the data sources. This involves identifying potential sources of primary and secondary data that can be used to address the research problem or objective. Primary data sources can include surveys, focus groups, and interviews, while secondary data sources can include government reports, industry publications, and academic journals.

4. Collect the data

After identifying the data sources, the next step is to collect the data. This involves designing and implementing a data collection plan consistent with the research problem or objective. The data collection plan should specify the methods and procedures for collecting data, sample size, and sampling method.

5. Analyze the data

Once the data has been collected, the next step is to analyze the data. This involves organizing, summarizing, and interpreting the data to identify patterns, relationships, and trends. The research problem or objective should guide the data analysis process and be conducted using appropriate statistical methods and software.

6. Interpret the results

After analyzing the data, the next step is to interpret the results. This involves drawing conclusions from the data analysis and using the results to address the research problem or objective. It is essential to analyze the results objectively and to avoid making assumptions or drawing conclusions that are not supported by the data.

7. Report the findings

Try identifying common themes to create a story and action items.To make the process easier, use your favorite presentation software to create a report, as it will make it easy to add quotes, diagrams, or call clips.

Feel free to add your flair, but the following outline should help you craft a clear summary:

• Background: What are your goals, and why did you conduct this study?
• Participants: Who you talked to? A table works well to break groups down by persona and customer/prospect.
• Executive Summary: What were the most exciting things you learned? What do you plan to do about it?
• Key Findings: Identify the key findings using data visualizations and emphasize key points.
• Recommendations + Action Plan: Your analysis will uncover actionable insights to fuel strategies and campaigns you can run to get your brand in front of buyers earlier and more effectively. Provide your list of priorities, action items , a timeline, and its impact on your business.

8. Take action based on the findings

The final step in conducting market research is to take action based on the findings. This involves using the results to make informed decisions about the marketing strategy, product development, or other business decisions. It is important to use the findings to drive action and to monitor and evaluate the effectiveness of the action taken continuously.

How to Prepare for Market Research Projects

Identify a persona group to engage, prepare research questions for your market research participants, list your primary competitors.

The idea is to use your persona as a reference point for understanding and reaching out to your industry's audience members. Your business might cater to more than one persona, and that's completely acceptable! However, you must be mindful of each persona while strategizing and planning your content and campaigns. 

How to Identify the Right People to Engage for Market Research

When selecting a group on which to conduct market research , it is essential to consider individuals with the same characteristics as your target audience. 

If you need to research multiple target audiences, recruit separate groups for each one. Select people who have recently interacted with you by looking through social media for post interactions or seeing if they’ve made recent purchases from you.

If you are planning to conduct an evaluation, it is recommended that you focus on people who have completed it within the last six months. However, if you have a longer sales cycle or a specific market, you can extend the period up to a year. It is crucial to ask detailed questions during the evaluation, so the participants' experience must be fresh.

Gather a mix of participants

If you want to expand your customer base, you’re going to want to get viewpoints of your product or service from every angle. Consider getting this mix by recruiting individuals who have already purchased your product, those who have bought a competitor's product, and those who haven't purchased anything. While targeting your existing customers may be the easiest option, gathering information from non-customers can help you gain a more balanced market perspective .

We recommend taking the following steps to select a mix of participants:

• Create a list of customers who made a recent purchase . This is usually the most accessible group to recruit. If you have a CRM system with list segmentation capabilities, run a report of deals that closed within the past six months and filter it for the characteristics you're looking for. Otherwise, work with your sales team to get them a list of appropriate accounts.
• Create a list of customers who were in an active evaluation but didn't make a purchase. You should get a mix of buyers who either purchased from a competitor or decided not to purchase. Again, you can obtain this list from your CRM or your Sales team's system to track deals.
• Use social media to call for participants. Try reaching out to people who follow you on social media but decided not to buy from you. Some may be willing to talk to you and explain why they did not purchase your product.
• Leverage your network . Spread the word that you're conducting a study to your coworkers, former colleagues, and LinkedIn connections. Even if your direct connections don't qualify, some will likely have a coworker, friend, or family member who does.
• Choose an incentive to motivate participants to spend time on your study. If you're on a tight budget , you can reward participants for free by giving them exclusive access to content. 

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Preparation is key when conducting research in hopes of gaining productive and informative conversations. This involves creating a discussion guide, whether it is for a focus group, an online survey, or a phone interview. The guide should help you cover all the relevant topics and manage your time efficiently.

The discussion guide should be in an outline format, with an allocated time and open-ended questions for each section. All the questions must be open-ended, as asking closed questions may lead the interviewee to respond with a simple "yes" or "no" answer. You may need more detailed answers to make informed decisions, so be sure to ask follow-up questions as necessary.  Also leave out any leading questions as they may unintentionally influence the interviewee's response, skewing your research results.

It's essential to identify your competitors accurately and you may even have some hidden in plain sight.  There are some instances where your company's business division might compete with your main product or service, even though that company's brand might have a different focus. Take a look at Apple:  the company is known primarily for its laptops and mobile devices, but Apple Music competes with Spotify over its music streaming service.

From a content perspective, you might compete with a blog, YouTube channel, or similar publication for inbound website visitors — even though their products don't overlap with yours. An example of this is when a toothpaste company might compete with publications like Health.com or Prevention on specific blog topics related to health and hygiene, even though the magazines don't sell oral care products.

Here are a few ways to build your competitor list:

• Check your industry quadrant on G2 Crowd: This is a significant first step for secondary market research in some industries. G2 Crowd aggregates user ratings and social data to create "quadrants" that show companies as contenders, leaders, niche players, or high performers in their respective industries. G2 Crowd specializes in digital content, IT services, HR, e-commerce, and related business services.
• Download a market report: Companies like Forrester and Gartner offer free and gated market forecasts yearly on the vendors leading their industry. On Forrester's website, for example, you can select "Latest Research" from the navigation bar and browse Forrester's latest material using a variety of criteria to narrow your search. These reports are good assets to save on your computer.
• Use social media : Social networks can be excellent company directories if you use the search bar correctly. On LinkedIn, for example, select the search bar and enter the name of the industry you're pursuing. Then, under "More," select "Companies" to narrow your results to the businesses that include this or a similar industry term on their LinkedIn profile.

Identifying Content Competitors

Search engines can be beneficial when it comes to secondary market research . To identify the online publications competing with your business, start with the overarching industry term you identified earlier, and then come up with more specific industry terms that are related to your company . For example, if you run a catering business, you might consider yourself a "food service" company, as well as a vendor in "event catering," "cake catering," "baked goods," and so on.

Once you have this list, follow these steps:

• Google it: Running a search on Google for the industry terms that describe your company can be very beneficial. You may come across a mix of product developers, blogs, magazines, and other websites.
• Compare your search results against your buyer persona: Remember the persona you created during the primary research stage? You can use it to evaluate whether a publication you found through Google could steal website traffic from you. If the website's content aligns with what your buyer persona would want to see, it is a potential competitor and should be added to your list of competitors.

After a series of similar Google searches for the industry terms you identify with, look for repetition in the website domains that have come up.

When searching, examine the first two or three pages of results. These websites are considered reputable sources of content in your industry and should be monitored closely as you create your collection of videos, reports, web pages, and blog posts.

Market Research Examples

Mcdonald's focus on customer feedback and profiling.

McDonald's invests in developing a detailed consumer profile to attract and retain customers, including parents of young children who appreciate the family-friendly atmosphere and menus. The brand seeks feedback from customers through surveys and questionnaires in stores, social media, and its mobile app. It also monitors customer feedback on digital channels.

Nike's Extensive Research and Collaboration for Running Shoes Development

Nike invests heavily in creating running shoes that cater to the needs of its customers, which it determines through extensive market research and customer surveys. The brand goes to great lengths to understand its customers' preferences, such as the type of running surface, the distance they run, and their running style, to develop shoes that meet their specific needs.

In addition to customer surveys, Nike also collaborates with athletes to develop shoes that cater to their specific requirements. This research helps Nike improve its existing running shoe models and innovate new ones, ensuring that the brand stays ahead of the competition.

Disney employs focus groups that specifically cater to children to test out their new characters and ideas.

The Walt Disney Company invests millions of dollars in creating captivating stories tested for their effectiveness with children, the intended audience. Disney executives hold focus groups with preschoolers and kindergartners several times a year to gather their opinions and feedback on TV episodes, Disney characters, and more. 

This market research strategy is effective because children are the ultimate audience that Disney aims to please. The collected feedback helps the company improve existing content to meet the preferences of its audience and ensure continued success as a multi-billion dollar enterprise.

KFC tested its meatless product in specific markets before launching it nationwide.

In 2019, KFC began developing and testing a meatless version of its famous chicken. However, instead of immediately launching the product nationwide, they decided to test it in select stores in the Atlanta, Georgia area. 

This is an innovative and practical approach to market research, as it allows the company to determine the product's sales performance on a smaller scale before committing too many resources to it. If the meatless chicken fails to gain popularity in Georgia, KFC can make the necessary changes to the product before introducing it to the broader market.

Yamaha conducted a survey to determine whether to use knobs or sliding faders on the Montage keyboard.

Yamaha is a Japanese corporation that produces various products, from motorcycles to golf cars to musical instruments. When it began developing its new Montage keyboard, the team was unsure whether to use knobs or sliding faders on the product. 

To address this dilemma, Yamaha used Qualtrics to send a survey to their customers. Within just a few hours , they received 400 responses. By using survey feedback, Yamaha ensured that it was designing a product that would perfectly meet the preferences of its audiences.

The Body Shop used social listening to determine how to reposition brand campaigns based on customer feedback.

The Body Shop is a well-known brand that offers ethically sourced and natural products. They take pride in their core value of sustainability. The Body Shop team tracked conversations to understand the sustainability subtopics that were most important to their audiences. 

They found that their customers cared a lot about refills. Based on this information, the Body Shop team confidently relaunched their Refill Program across 400 stores globally in 2021, with plans to add another 400 in 2022. Market research confirmed that their refill concept was on the right track and also highlighted the need for increased efforts to demonstrate how much the Body Shop cares about its customers' values .

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The takeaway.

Fratzke Consulting offers a comprehensive suite of market research services to help brands gain valuable insights into their target market, competitors, and industry trends. Our expert team utilizes various primary and secondary research methods to gather accurate and unbiased data, including surveys, competitive research, and industry reports. With Fratzke Consulting, you'll have the tools to succeed in today's rapidly evolving business landscape.

Interested in learning more? Book a free audit consultation today.

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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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Market Research: 9 Key Benefits You Might Not Have Considered

Why Is Market Research Important?

Is conducting market research worth it, benefits of market research, 1. customer-centric business approach, 2. effective communication with customers, 3. decreased investment risk, 4. data-driven decisions, 5. identifying potential threats and opportunities (swot analysis), 6. understanding the target market and personas, 7. keep up with emerging trends, 8. keep up with competition, 9. identifying the right marketing channels, learn about market research and more.

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The Pros and Cons of Market Research: A Detailed Look

Market research is an essential part of what makes brands successful. Analyzing consumer behavior and market trends allows companies to capitalize on the main factors driving consumers to purchase their products. They can then optimize their strategy accordingly. Three of the many key questions market research aims to answer include: who is the target audience? What makes them buy a certain product? And, how can brands take advantage of trends to increase sales and brand awareness? In this blog, we will take a look at the pros and cons of market research as a whole.

Market research has become an indispensable tool for businesses looking to understand their customers, keep tabs on competitors, and make data-driven decisions. However, like any tool, it comes with both advantages and disadvantages. In this comprehensive guide, we’ll explore the key pros and cons of market research to help you determine if and how to leverage it for your business.

What is Market Research?

Before diving into the pros and cons, let’s start with a quick definition of market research. Essentially, market research refers to the systematic gathering and analysis of data and insights about a company’s market, customers, and competitors. It aims to help businesses make more informed decisions by reducing uncertainty around demand, market dynamics, and other external factors.

Market research employs both primary research methods like surveys, interviews, and focus groups as well as secondary research methods like analyzing existing statistics, reports, articles, and studies. Companies may conduct market research themselves or hire agencies and consultants to handle it for them

The Advantages of Market Research

Now let’s explore some of the key benefits market research offers:

Gain Customer Insights

One of the biggest pros of market research is the ability to better understand your customers. Research helps you identify customer demographics, behaviors, needs, preferences, and pain points. These insights enable you to create targeted products, services, and marketing campaigns.

Mitigate Risk

Market research provides data to support critical business decisions and strategy. This helps minimize risk around new product development branding expansion, and more by reducing uncertainty and guesswork. Research gives you a clearer picture of market realities.

Identify Opportunities

Beyond risk mitigation, research also reveals new opportunities worth pursuing. You can discover underserved customer segments, demand for new product features, appealing partnerships, and more. Market research enables proactive growth.

Track Competition

Research keeps you informed about competitors’ offerings, pricing, promotions, and more. These competitive insights help you counter competitors’ moves and gain an edge. Ongoing monitoring prevents you from being blindsided.

Enhance Marketing

From guiding messaging and positioning to platform and channel selection, research shapes effective marketing. You can optimize conversion by appealing directly to customer priorities uncovered through surveys, interviews, and focus groups.

Inform Strategy

Customer insights, risk analysis, opportunity identification, and competitive monitoring give you the information needed to craft robust business strategies. Research provides direction and focuses strategy on the most profitable avenues for growth.

Reduce Costs

While conducting research requires investment, it can yield significant cost savings down the road. For example, research prevents you from launching inadequate products or misguided campaigns. It also helps target marketing dollars on campaigns with the best ROI.

The Disadvantages of Market Research

Of course, market research also comes with some downsides to consider:

Depending on the scale, research can get expensive, especially primary research. Surveys, focus groups, interviews, and hiring agencies/consultants costs money. For strapped startups, these costs may be prohibitive.

Time Investment

Beyond monetary costs, research requires substantial time investment. It takes significant time to design surveys, interview subjects, gather existing data, analyze results, and generate recommendations. The process delays decision making.

Despite best efforts, research has inherent limitations. Available data may be incomplete or outdated. Sample sizes may be too small to draw broad conclusions. And participants may respond inaccurately or dishonestly to polls and interviews.

Information Overload

Large volumes of data from research can overwhelm unprepared analysts. Identifying insights takes skill, as does distilling findings into strategic recommendations. Information overload can delay or distort decision-making.

In dynamic markets, the lag between research and implementation can dampen its value. Competitive landscapes and customer preferences shift rapidly today. Research insights risk growing stale quickly. Frequent research is required.

Potential Biases

Poor survey design, selective sampling, confirmation bias, and more can introduce bias into market research. Preconceptions also color analysis and interpretation of data. Proactive steps must be taken to maximize objectivity.

Security Risks

Handling significant customer data also introduces potential security and privacy risks if databases are not properly secured. Hacking could compromise sensitive data and alienate customers.

Tips for Maximizing the Pros While Minimizing the Cons

The pros and cons reveal market research holds great potential value along with notable limitations. Follow these tips to maximize its benefits for your organization while minimizing potential downsides:

Start small – Dip your toe in with quick and low-cost pilots or secondary research before committing to expansive primary research. Get a feel before diving deep.

Focus objectives – Be selective and targeted in the insights you seek to avoid collecting mounds of irrelevant data. Clearly define goals upfront.

Iterate frequently – Conduct research in short, iterative cycles rather than long drawn-out studies. This keeps data current and actionable.

Triangulate – Leverage both primary and secondary research to overcome limitations and validate findings through consensus.

Survey design – Invest time upfront in meticulous survey design and testing to yield quality insights while avoiding bias.

Consult experts – If bandwidth is limited in-house, don’t be afraid to hire experienced market research consultants and agencies.

Security controls – Put strict controls in place around data handling, storage, and access to mitigate privacy and security risks.

Objective analysis – When analyzing data, take steps to avoid confirmation bias and view information objectively.

Market research delivers transformative insights, but also demands time and money. Ultimately, its value depends on your objectives, budget, and competitive landscape. For most growth-focused businesses, the pros outweigh the cons, especially when best practices are followed. A data-driven approach is extremely hard to ignore in the modern market. Just be sure to start small, focus your research, and proactively address potential downsides. With the right strategy, market research can be an invaluable asset driving your organization’s success.

The Pros of Market Research

The valuable insights that come from market research can allow a company to gain information about the market and make their product successful. For instance, knowledge of customer satisfaction, consumer behaviors, and competitors lead to informed strategic decisions. In the long run, brands can arm themselves with this research.

Market research allows a company to see their buyers’ wants and needs and adjust their product to meet those needs. Combining this with an increased awareness surrounding current trends and viral fads empowers a company with all the information they need to optimize their product, advertising, and business plan. Actionable strategy can lead directly to a large uptick in sales.

Knowing what people think about a brand and which audiences are aware of it is valuable information. With awareness research, brands can make decisions to increase awareness in certain target audiences and broaden the company’s reach as a whole. As a result, brands can take full advantage of tapping into markets they may not have known about previously. This can take the shape of anything from a small tweak in a company’s branding and advertising to a full-blown rebrand. Read more about brand awareness, the different kinds, and their benefits in Provoke Insights’ blog post about it.

Primary Research Data Explained: The Pros & Cons of Marketing Research

What are the disadvantages of market research?

3. May only target a small population Another potential disadvantage of market research is how accurately it can represent your target customers. Researchers often struggle to access sample populations that accurately represent the majority of a target market.

What are the advantages of market research?

One of the primary market research advantages is informed decision-making. By conducting thorough research, businesses gain valuable insights into customer preferences, needs, and behaviours. This knowledge empowers them to make informed decisions regarding product development, pricing strategies, and marketing campaigns.

What are the pros and cons of primary market research?

Primary market research involves collecting new data directly from the target audience. Let’s explore the pros and cons: Provides first-hand and specific data tailored to the research objectives. Allows businesses to gather unique insights directly from customers. Provides more control over the research process and data quality.

What are the results of market research?

The results of market research inform the final design of the product and determine how it will be positioned in the marketplace. Market research usually combines primary information, gathered directly from consumers, and secondary information, which is data available from external sources.

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How To Do Market Research: Definition, Types, Methods

Jul 25, 2024

11 min. read

Market research isn’t just collecting data. It’s a strategic tool that allows businesses to gain a competitive advantage while making the best use of their resources. Research reveals valuable insights into your target audience about their preferences, buying habits, and emerging demands — all of which help you unlock new opportunities to grow your business.

When done correctly, market research can minimize risks and losses, spur growth, and position you as a leader in your industry. 

Let’s explore the basic building blocks of market research and how to collect and use data to move your company forward:

Table of Contents

What Is Market Research?

Why is market research important, market analysis example, 5 types of market research, what are common market research questions, what are the limitations of market research, how to do market research, improving your market research with radarly.

Market Research Definition: The process of gathering, analyzing, and interpreting information about a market or audience.

Market research studies consumer behavior to better understand how they perceive products or services. These insights help businesses identify ways to grow their current offering, create new products or services, and improve brand trust and brand recognition .

You might also hear market research referred to as market analysis or consumer research .

Traditionally, market research has taken the form of focus groups, surveys, interviews, and even competitor analysis . But with modern analytics and research tools, businesses can now capture deeper insights from a wider variety of sources, including social media, online reviews, and customer interactions. These extra layers of intel can help companies gain a more comprehensive understanding of their audience.

With consumer preferences and markets evolving at breakneck speeds, businesses need a way to stay in touch with what people need and want. That’s why the importance of market research cannot be overstated.

Market research offers a proactive way to identify these trends and make adjustments to product development, marketing strategies , and overall operations. This proactive approach can help businesses stay ahead of the curve and remain agile as markets shift.

Market research examples abound — given the number of ways companies can get inside the minds of their customers, simply skimming through your business’s social media comments can be a form of market research.

A restaurant chain might use market research methods to learn more about consumers’ evolving dining habits. These insights might be used to offer new menu items, re-examine their pricing strategies, or even open new locations in different markets, for example.

A consumer electronics company might use market research for similar purposes. For instance, market research may reveal how consumers are using their smart devices so they can develop innovative features.

Market research can be applied to a wide range of use cases, including:

• Testing new product ideas
• Improve existing products
• Entering new markets
• Right-sizing their physical footprints
• Improving brand image and awareness
• Gaining insights into competitors via competitive intelligence

Ultimately, companies can lean on market research techniques to stay ahead of trends and competitors while improving the lives of their customers.

Market research methods take different forms, and you don’t have to limit yourself to just one. Let’s review the most common market research techniques and the insights they deliver.

1. Interviews

3. Focus Groups

4. Observations

5. AI-Driven Market Research

One-on-one interviews are one of the most common market research techniques. Beyond asking direct questions, skilled interviewers can uncover deeper motivations and emotions that drive purchasing decisions. Researchers can elicit more detailed and nuanced responses they might not receive via other methods, such as self-guided surveys.

Interviews also create the opportunity to build rapport with customers and prospects. Establishing a connection with interviewees can encourage them to open up and share their candid thoughts, which can enrich your findings. Researchers also have the opportunity to ask clarifying questions and dig deeper based on individual responses.

Market research surveys provide an easy entry into the consumer psyche. They’re cost-effective to produce and allow researchers to reach lots of people in a short time. They’re also user-friendly for consumers, which allows companies to capture more responses from more people.

Big data and data analytics are making traditional surveys more valuable. Researchers can apply these tools to elicit a deeper understanding from responses and uncover hidden patterns and correlations within survey data that were previously undetectable.

The ways in which surveys are conducted are also changing. With the rise of social media and other online channels, brands and consumers alike have more ways to engage with each other, lending to a continuous approach to market research surveys.

3. Focus groups

Focus groups are “group interviews” designed to gain collective insights. This interactive setting allows participants to express their thoughts and feelings openly, giving researchers richer insights beyond yes-or-no responses.

One of the key benefits of using focus groups is the opportunity for participants to interact with one another. They spark discussions while sharing diverse viewpoints. These sessions can uncover underlying motivations and attitudes that may not be easily expressed through other research methods.

Observing your customers “in the wild” might feel informal, but it can be one of the most revealing market research techniques of all. That’s because you might not always know the right questions to ask. By simply observing, you can surface insights you might not have known to look for otherwise.

This method also delivers raw, authentic, unfiltered data. There’s no room for bias and no potential for participants to accidentally skew the data. Researchers can also pick up on non-verbal cues and gestures that other research methods may fail to capture.

5. AI-driven market research

One of the newer methods of market research is the use of AI-driven market research tools to collect and analyze insights on your behalf. AI customer intelligence tools and consumer insights software like Meltwater Radarly take an always-on approach by going wherever your audience is and continuously predicting behaviors based on current behaviors.

By leveraging advanced algorithms, machine learning, and big data analysis , AI enables companies to uncover deep-seated patterns and correlations within large datasets that would be near impossible for human researchers to identify. This not only leads to more accurate and reliable findings but also allows businesses to make informed decisions with greater confidence.

Tip: Learn how to use Meltwater as a research tool , how Meltwater uses AI , and learn more about consumer insights and about consumer insights in the fashion industry .

No matter the market research methods you use, market research’s effectiveness lies in the questions you ask. These questions should be designed to elicit honest responses that will help you reach your goals.

Examples of common market research questions include:

Demographic market research questions

• What is your age range?
• What is your occupation?
• What is your household income level?
• What is your educational background?
• What is your gender?

Product or service usage market research questions

• How long have you been using [product/service]?
• How frequently do you use [product/service]?
• What do you like most about [product/service]?
• Have you experienced any problems using [product/service]?
• How could we improve [product/service]?
• Why did you choose [product/service] over a competitor’s [product/service]?

Brand perception market research questions

• How familiar are you with our brand?
• What words do you associate with our brand?
• How do you feel about our brand?
• What makes you trust our brand?
• What sets our brand apart from competitors?
• What would make you recommend our brand to others?

Buying behavior market research questions

• What do you look for in a [product/service]?
• What features in a [product/service] are important to you?
• How much time do you need to choose a [product/service]?
• How do you discover new products like [product/service]?
• Do you prefer to purchase [product/service] online or in-store?
• How do you research [product/service] before making a purchase?
• How often do you buy [product/service]?
• How important is pricing when buying [product/service]?
• What would make you switch to another brand of [product/service]?

Customer satisfaction market research questions

• How happy have you been with [product/service]?
• What would make you more satisfied with [product/service]?
• How likely are you to continue using [product/service]?

Bonus Tip: Compiling these questions into a market research template can streamline your efforts.

Market research can offer powerful insights, but it also has some limitations. One key limitation is the potential for bias. Researchers may unconsciously skew results based on their own preconceptions or desires, which can make your findings inaccurate.

• Depending on your market research methods, your findings may be outdated by the time you sit down to analyze and act on them. Some methods struggle to account for rapidly changing consumer preferences and behaviors.
• There’s also the risk of self-reported data (common in online surveys). Consumers might not always accurately convey their true feelings or intentions. They might provide answers they think researchers are looking for or misunderstand the question altogether.
• There’s also the potential to miss emerging or untapped markets . Researchers are digging deeper into what (or who) they already know. This means you might be leaving out a key part of the story without realizing it.

Still, the benefits of market research cannot be understated, especially when you supplement traditional market research methods with modern tools and technology.

Let’s put it all together and explore how to do market research step-by-step to help you leverage all its benefits.

Step 1: Define your objectives

You’ll get more from your market research when you hone in on a specific goal : What do you want to know, and how will this knowledge help your business?

This step will also help you define your target audience. You’ll need to ask the right people the right questions to collect the information you want. Understand the characteristics of the audience and what gives them authority to answer your questions.

Step 2: Select your market research methods

Choose one or more of the market research methods (interviews, surveys, focus groups, observations, and/or AI-driven tools) to fuel your research strategy.

Certain methods might work better than others for specific goals . For example, if you want basic feedback from customers about a product, a simple survey might suffice. If you want to hone in on serious pain points to develop a new product, a focus group or interview might work best.

You can also source secondary research ( complementary research ) via secondary research companies , such as industry reports or analyses from large market research firms. These can help you gather preliminary information and inform your approach.

Step 3: Develop your research tools

Prior to working with participants, you’ll need to craft your survey or interview questions, interview guides, and other tools. These tools will help you capture the right information , weed out non-qualifying participants, and keep your information organized.

You should also have a system for recording responses to ensure data accuracy and privacy. Test your processes before speaking with participants so you can spot and fix inefficiencies or errors.

Step 4: Conduct the market research

With a system in place, you can start looking for candidates to contribute to your market research. This might include distributing surveys to current customers or recruiting participants who fit a specific profile, for example.

Set a time frame for conducting your research. You might collect responses over the course of a few days, weeks, or even months. If you’re using AI tools to gather data, choose a data range for your data to focus on the most relevant information.

Step 5: Analyze and apply your findings

Review your findings while looking for trends and patterns. AI tools can come in handy in this phase by analyzing large amounts of data on your behalf.

Compile your findings into an easy-to-read report and highlight key takeaways and next steps. Reports aren’t useful unless the reader can understand and act on them.

Tip: Learn more about trend forecasting , trend detection , and trendspotting .

Meltwater’s Radarly consumer intelligence suite helps you reap the benefits of market research on an ongoing basis. Using a combination of AI, data science, and market research expertise, Radarly scans multiple global data sources to learn what people are talking about, the actions they’re taking, and how they’re feeling about specific brands.

Our tools are created by market research experts and designed to help researchers uncover what they want to know (and what they don’t know they want to know). Get data-driven insights at scale with information that’s always relevant, always accurate, and always tailored to your organization’s needs.

Learn more when you request a demo by filling out the form below:

Continue Reading

What Are Consumer Insights? Meaning, Examples, Strategy

How Coca-Cola Collects Consumer Insights

Market Intelligence 101: What It Is & How To Use It

9 Top Consumer Insights Tools & Companies

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• Market Research Company Blog

13 Types of Market Research (+ Pros & Cons)

by Emily Rodgers

Posted at: 10/18/2023 12:30 PM

Today’s business decision-maker has an abundance of marketing research services  available to them.

Understanding what market research is and how best to use research methodologies to your advantage is vital in reaching your target customers and increasing ROI.

There are 13 types of market research, each with their own pros and cons:

• Online Surveys
• Phone Surveys
• Customer Surveys
• Omnibus Surveys
• Mail Surveys
• Intercept Surveys
• Ad Concept Testing
• Mystery Shopping
• Shop-Alongs
• Focus Groups
• In-Depth Interviews
• Feasibility Studies

Interested in hiring a third-party market research company? Consider Drive Research. Get a quote from our team by filling out an online contact form or emailing [email protected] .

Primary vs. Secondary Market Research

Primary and secondary market research are two fundamental categories in the field of market research, each serving distinct purposes when on the hunt for data-driven insights.

Primary research involves the direct gathering of information from original sources.

This method is akin to a first-hand investigation, where data is collected directly from respondents or subjects through methods like surveys, interviews, or observations.

Primary research provides fresh and specific insights tailored to the objectives at hand, offering a firsthand perspective on consumer behaviors, preferences, and trends.

Secondary research involves the analysis of existing data and information that has been previously collected by other sources.

This type of research leverages pre-existing data from a wide array of sources such as industry reports, government publications, academic papers, and market analyses.

Secondary research is particularly useful for gaining broader industry perspectives, historical data trends, and context for understanding market dynamics.

Qualitative vs Quantitative Market Research

Next, it’s important to establish the two categories of market research, qualitative and quantitative, to gain a better understanding of the various primary marketing research methodologies.

Qualitative research is an exploratory type of research, designed to gain a deeper insight into the underlying reasons, opinions, and motivations of a consumer.

Qualitative research allows your target audience to answer questions like:

• How did this commercial make you feel?
• What do you like most about X product?
• Why are you more likely to buy X product over Y?

Quantitative research is a statistical type of research, used to quantify and answer objectives by generating numerical data.

For example, an organization can conduct an online survey to collect statistical data on its brand, through the opinion of its customers.

Quantitative surveys can measure metrics such as:

• Customer satisfaction
• Likelihood to recommend

Recommended Reading: What's the Difference Between Qualitative and Quantitative Market Research?

Types of Market Research

There is no one "best" market research methodology as the most appropriate method depends on the specific research question and the target demographic.

Different research methods have different strengths and limitations.

Below, we cover the most common types of market research and their pros and cons to help determine which methodology is best for your unique needs.

For a short synopsis, I recommend watching the video from our market research company below.

1. Online Surveys

Online surveys are a form of quantitative research aimed at gaining feedback and insight on a specific objective. Web surveys are designed, programmed, and administered – you guessed it – online.

With the rise of technology, most surveys online are equipped to be taken on smartphones and tablets as well.

Pros of surveys online ✅

A major benefit of conducting surveys online is reaching a mass audience at low costs and in little time.

Traditional survey methods like phone or mail often require a large budget to achieve successful and accurate results.

Quick insights

An organization can obtain quick feedback from customers with a web-based questionnaire at little to no cost.

When working with an online survey agency , organizations can create, send, and receive results all in a matter of days.

Here is the process Drive Research follows when conducting online surveys for our clients.

Reduces response bias

Respondents may be more opt to provide honest feedback with online surveys as well.

Being that there is no moderator or interviewer, survey participants feel more inclined to offer up raw emotions and opinions on a company, products, or services.

This eliminates any bias injected by an interviewer.

Cons of online surveys ❌

Technical errors

As much as technology has progressed through the years, it’s nowhere near perfect. Technical mishaps happen every day and online surveys are no exception.

A poor user experience associated with technical problems such as a slow page load time, or worse timing out, can subsequently affect the online survey data.

Unfortunately, these online glitches aren’t always apparent at first sight. Significant errors within online platforms often don’t show up until the survey results are complete.

Less detailed feedback

Oftentimes, our market research company is asked: how many questions should I ask in my survey ?

It’s also a good rule of thumb to keep online surveys short and sweet. 15-20 questions is the sweet spot. 

That's because, unless informed otherwise, participants are less likely to stay fully engaged in a survey that takes more than 10 minutes to complete.

Therefore, with little real estate, it’s difficult to obtain detailed answers to key business questions.

Recommended Reading: How to Make Online Surveys More Engaging for Respondents

2. Phone Surveys

Phone surveys began as a core market research methodology decades ago and still prove to be at the forefront of market research methodologies.

This type of market research centers around collecting deeper feedback from two-way active communication between the interviewer and respondents.

Pros of phone surveys ✅

Two-way communication forum

The advantage of conducting a phone survey lies in the high quality of data it provides.

As opposed to other market research methodologies, phone surveys allow for an active and personable conversation between the interviewer and the participant.

Gather more in-depth insights

In comparison to online surveys, interviewers can receive additional feedback from respondents.

In other words, you are at the mercy of how much or how little participants are going to answer a question online – whereas phone surveys allow interviewers to ask respondents to explain their answers.

Respondents are more likely to answer phone survey questions in greater detail because it takes less time to voice your opinion than it would to type or write.

Survey participants from anywhere

Phone surveys are also at no mercy of the locale.

Especially with the move from landlines to mobile phones, phone survey companies can connect with respondents whether they are traveling, on their lunch break, taking a walk outside, etc.

Cons of phone surveys ❌

More costly

Where phone surveys may provide high-quality and immediate results, it is not as cost-effective or time-efficient as other market research methodologies.

Phone survey companies must collect a long list of participants to speak to, to then spend hours having detailed conversations or leaving voicemails.

Must conduct the research at specific times of day

Another factor driving the collapse of phone surveys is that the study has time constraints to work around. This means phone survey participants will likely only be available to speak outside of business hours.

Other factors such as taking care of children, going to the gym, and running errands can limit the available time respondents have to complete a phone survey.

Recommended Reading: Online Surveys vs. Phone Surveys - Which is Better for Your Business?

3. Customer Surveys

Customer satisfaction surveys measure the level of satisfaction a customer has with a brand. 

This is critical to the success of a brand - how will they know how to cater to customers without asking them? 

With the data gathered from these surveys, brands can implement…

• Improved marketing strategies
• Better customer service techniques 
• Personalized shopping experience

And this last one is super important, as 68% of consumers prefer a personalized shopping experience. 

Below, we'll cover some of the top benefits of running customer surveys, along with potential drawbacks. 

Pros of customer satisfaction surveys ✅

Insight into customer preferences and behaviors

Think of these surveys as a tool to directly tap into your audience. 

Here are some types of insights you can gather from customer surveys:

• How satisfied or dissatisfied customers are with your products or services
• Identify emerging trends and changing customer preferences in the market
• Demographic information such as age, gender, location, occupation, etc. to tailor marketing efforts accordingly
• Insights into the decision-making process of customers, including factors that influence their buying decisions

Identifying areas for improvement

We like to use this scenario: there may be something about your brand that customers dislike, making them less likely to buy from you.

With customer surveys, brands will be able to identify this type of issue straight from the customer. With that information, brands can improve their strategies. 

Measuring customer satisfaction and loyalty

Surveys that measure customer satisfaction metrics such as Net Promoter Score (NPS) offer valuable data about how happy your customers are. 

The key here is to track this data for continued improvement.  

As we always say, market research isn't a one-and-done deal, especially when you're dealing with surveys. Measuring customer opinion through surveys should be an ongoing strategy, as this allows brands to observe current trends and adjust accordingly. 

By continued measurement, brands will always be improving their strategies. This leads to increased customer retention, loyalty, and word-of-mouth referrals. 

Cons of customer surveys ❌

Survey fatigue

This drawback is more related to how the surveys are distributed. 

Put yourself in this position. If a store you've shopped at is continuously sending you links to take a survey, you're probably going to rush through the survey or ignore it. 

This is why it's so important to time your surveys correctly. Sending too many will likely annoy your customers (and maybe even push them away).

Remember, as a brand, you want your customers to know you care, but don't be pushy about it! 

The limited scope of feedback

Depending on the depth of data you want to uncover, surveys may not be the best option. 

One of the benefits of surveys is that they offer structured questions for better-defined responses. 

However, this can backfire and end up limiting you depending on your needs. If you're looking for more detailed insights, surveys may not be the answer.

Instead, methodologies such as customer focus groups or in-depth interviews will be a better fit as they offer more in-depth feedback.

But more on that in a minute!

4. Omnibus Surveys

Omnibus surveys or piggyback surveys are a type of online survey. However, instead of one company sponsoring the market research, the survey includes questions from multiple different organizations.

This type of market research allows several brands and businesses to purchase a few questions as part of a much larger survey.

• Company A wants to ask respondents about their recent car purchases
• Company B wants to ask respondents about home mortgages 
• Company C wants to ask respondents about coffee preferences 

A market research company, like Drive Research, takes these different objectives to create a multi-sponsor survey . When the survey is complete, each company is only given access to results from the questions they sponsored.

This type of market research typically takes 3 to 7 days to complete.

Thought, the length of the timeline depends on how quickly the survey draft is signed off on and how difficult the target audience is to reach.

We'll only just scratch the surface of omnibus market research in this article. For a full overview, read our Ultimate Guide to Conducting Omnibus Surveys .

Advantages of omnibus surveys ✅

Omnibus surveys carry many of the same advantages as online surveys: cost-effective, timely results, and access to a large sample of respondents.

These aspects become even more advantageous being that only a handful of questions are asked in most cases.

Therefore, a significant benefit of omnibus surveys is that Responses from a general population can be gathered in minutes.

If you are looking for a low-budget market research methodology , omnibus surveys are as cheap as they come.

Disadvantages of omnibus surveys ❌

Increased chances of respondent burnout

Because several organizations are purchasing questions to create an omnibus survey, the questionnaire can become quite unruly.

There is no guarantee that your questions will be asked at the beginning of a survey when respondents are most engaged.

There is a chance respondents will have answered 50 questions, before answering yours.

At this point, many respondents are disengaged and are not providing quality feedback. Realistically, they're rushing to complete the omnibus survey to receive an incentive. 

How to avoid respondent burnout in omnibus surveys

To avoid this, find a market research company like Drive Research that creates shorter surveys and can guarantee a goal number of responses.

Oftentimes when a client is looking to conduct an omnibus survey, our market research firm does not wait till other organizations join in.

We can field your survey questions within 24 to 48 hours.

Omnibus survey real-world example

Recently, Drive Research was hired to conduct an omnibus survey. 

The steps to complete an omnibus survey include:

• Finalizing the survey
• Programming the survey
• Creating the deliverables

The following survey was created and approved on a Monday, programmed and launched on a Tuesday, and the results were delivered to the client that Thursday.

Overall, the process took four days to complete.

About the omnibus survey

• The survey took an average of 3 minutes to complete and included 15 questions.
• There were 2 additional screener questions used to confirm the survey reached the specified target audience.
• The survey received 1000 responses.
• Fieldwork for the survey began on February 2 and lasted until February 3, 2021. 

With a probabilistic sample, a total of 1000 responses at the 95% confidence level offers a 3% margin of error.

If the survey were conducted with another random pool of 1000 respondents, the results would yield within +3% or -3% of the stated totals in the reports.

The margin of error can be used as a guideline to understand the reliability of these results.

Results of the omnibus survey

• This client wanted to receive the raw data file for the survey and a question-by-question online report.
• The online report was interactive. By hovering over data in a chart, it will provide more detail.
• Users can also expand the open-ended responses to read each comment by selecting "Show Responses."
• Lastly, users can export the results into several different formats (i.e., PDF, PowerPoint, Excel, and Word).

Example reporting links for omnibus surveys

• Here’s an example of an online report for an omnibus survey. Exports are disabled for this example.
• Here’s an example of an online crosstabulation report for an omnibus survey.

The crosstabulation reports can use any single-response or multiple-response questions (i.e., urbanicity, age group, gender, household income, marital status, race and ethnicity, children in the household, the highest level of education completed, employment status, or state).

The crosstabulation reports help bring more value to the results.

5. Mail Surveys

Emails, text messages, voicemails. Our inboxes are flooded with them. What about physical mail?

What once was labeled as an antiquated form of communication, mail surveys are back with a vengeance.

Mail surveys are a quantitative marketing research data collection method in which respondents complete questionnaires on paper and return them via postal mail.

Mail survey pros ✅

Mail surveys may seem like an archaic methodology, but they do offer some intriguing benefits. 

Best for industries with PII restrictions

Depending on the industry, say banks and credit union market research , businesses cannot reach their audience through online outlets due to organizational restrictions.

Mail surveys offer a personalized, credible solution to this problem.

Good response rates

Direct mail surveys also earn a good response rate.

Where most think direct mailers receive a 1-2% response rate, a mail survey company like Drive Research has seen an average response rate of 10-15%.

When potential participants actually open and hold the mail survey in their hands, many will opt to reply.

An email or online survey is much easier to ignore.

Mail survey cons ❌

Before you run to the post office, it should be noted that the average data quality and time invested in mail surveys deter non-restricted industries from choosing this type of market research methodology.

Timely and costly

The process of conducting mail surveys can be long and strenuous.

Only after you create and format the survey for mail, return for postage, fill and send the direct mail piece, and finally wait for responses to return are you able to start entering data.

Produces less detailed feedback

When choosing to participate in mail surveys, respondents are less likely to provide detailed answers as they would on the phone or online because it takes less time to talk or type a response, than it is to write one.

Recommended Reading: 4 Ways to Save Budget on Your Next Mail Survey 

💡Pro tip: Use a mail survey company

Are you intrigued by the advantages of conducting a mail survey, but don’t have the time required for a successful study?

When partnering with a mail survey company, much of the grunt work will be out of your hands.

A mail survey company handles all aspects of mail surveys, including a customized questionnaire template, data collection, and analysis of results with a detailed report.

6. Intercept Surveys

Intercept surveys are a form of quantitative research focused on capturing " in-the-moment " feedback from respondents.

This type of market research is commonly used after people attend an event or visit an establishment to collect perception information. Although, data can also be collected before or during a participant’s experience.

The feedback received from intercept surveys is usually collected via tablets or paper and pencil interviewing techniques.

If utilizing tablets or other electronic devices, our intercept survey company recommends using a platform with offline functionality.

Do not rely on Wi-Fi offered by large venues such as concerts or sporting events, because you will be fighting to connect to the internet with thousands of people.

Intercept survey example

Compared to other types of market research methods, intercept surveys allow for immediate, top-of-mind feedback from your customers.

For example, to test the success of a digital billboard at a New York Mets game, an intercept survey company representing Pepsi can conduct market research outside of Citi Field.

After the game, interviewers will approach fans as they are leaving the stadium to ask questions like:

• What billboard(s) did you remember seeing inside Citi Field?
• What type of food or beverage did you consume during the game?
• Are you more likely to choose Pepsi or Coca-Cola? What is the reason for this choice?

Drive Research conducted intercept surveys at 5 college football stadiums across the country.

Learn about our objectives, approach, and outcomes of the stadium intercepts.

Intercept survey advantages ✅

By approaching an audience remotely after the experience you are trying to test, the context is top of mind.

Interviewers in turn receive a fresh, candid response. Often times online or email surveys aren’t sent until days/weeks/months after an event has taken place.

This space in time can allow for a misguided representation of what actually happened.

Recommended Reading: Key Benefits of Offline Surveys.

Intercept survey disadvantages ❌

With this specific example, Pepsi would need permission from Citi Field to conduct this survey. Without permission, there is no survey and they’re back to the market research drawing board.

Another drawback to intercept surveys is lower participation rates compared to other market research methodologies. If people are leaving a venue, they are ready to go home or to their next destination.

They likely are not prepared or willing to stop and take an unsolicited survey. Rewards or trinkets are important to offer here.

7. Ad Concept Testing

Ad concept testing can be considered both quantitative and qualitative market research depending on the approach that is used.

F or example, brands can utilize online surveys and/or focus groups to measure consumer feedback regarding a set of advertisements.

The objective of ad concept testing is to compare various advertising or marketing messages to see which of the tested ads resonate most with the brand’s target audience.

For an in-depth overview, I recommend reading The Ultimate Guide to Ad Concept Testing Surveys .

Advantages to ad concept testing ✅

Rely on data-driven marketing strategies 

Ad concept testing is an excellent way to develop and refine marketing campaigns before launching them to the public.

Think of it like this. Buying a house is a huge investment. For this reason, many homebuyers tour and assess the property to limit any unwarranted costs after purchasing it.

The same analogy can be used for data-driven marketing strategies .

Spend marketing dollars more wisely

An ad concept testing survey assures that you are putting your money into the right message and design before investing too much money.

Better yet, this type of market research can help brands increase their return on investment than not conducting any research at all.

Disadvantages to ad concept testing surveys ❌

While I’d say the pros of ad concept testing far outweigh the negatives, I’ll play devil's advocate for just a moment.

Just like any market research study, if done incorrectly concept testing can produce misleading and inaccurate data.

As a result, brands end up making near-useless decisions as they drain more time and resources into a marketing campaign.

How can you ensure it is done correctly so that doesn’t happen? I’ll be frank – stop working with a marketing agency for ad concept testing .

Here’s why.

8. PR Surveys

PR surveys gather public opinion about a certain topic and are a useful type of market research to invest in. 

A quantitative form of research, PR surveys are a fantastic way for businesses to garner publicity as they gather statistical data that can be used by news outlets for various stories. 

These surveys are also referred to as:

• Content surveys
• Public opinion polls

When working with a PR survey company , brands can administer the questionnaire to a specific demographic group or the general population. From there, the standard online survey process is followed. 

Advantages of PR surveys ✅

There are plenty of benefits to conducting public relations surveys . 

We’re stating the obvious here, but journalists are always hungry for the latest findings on any topic. Using data from a PR survey in a press release is a great way to attract attention from journalists. 

Grow brand awareness

PR surveys can draw potential customers and clients to your brand. Say a figure from your custom PR survey catches the eye of a journalist and it ends up in a popular publication. 

Not only will you have your statistics published, but this exposure has the chance to draw several people to your business. 

Generate more backlinks and improve website visibility

All this activity will positively affect your brand’s website, too. 

Your data being referenced on news publication websites has the chance to:

• Generate backlinks
• Increase your domain authority 
• Boost website traffic 

For example, Drive Research often conducts public relations surveys as a link-building strategy . Our research has been featured on USA Today, CNBC, Yahoo News, and more sites. As a result, we've seen thousands more pageviews to our website and an improved domain authority

Be seen as an industry thought leader

When a brand is linked to accurate data, it automatically is seen as a trusted source by the public. People will begin to associate your organization with having reliable information about a specific topic.

Again–this could lead to increased customer activity and loyalty.

Disadvantages of PR surveys ❌

One disadvantage of PR surveys is simply choosing a topic to conduct a study on. 

In a way, this could be seen as a “good” disadvantage–having too many topics is better than having too few.

But to get public attention, you’ll need to choose the perfect topic. This takes time and will require teamwork. 

Conducting a PR survey does not automatically guarantee you will see media attention from the results. It is important to find a topic that is unique and headline-worthy.

9. Mystery Shopping

Mystery shopping is a type of market research using professionally trained shoppers to assess an experience in a natural storefront or retail environment.

Both qualitative and quantitative, mystery shopping is a perfect project to test all areas of customer service.

Mystery shopping examples

Two common best practices of mystery shopping are recruiting actual customers or hiring a market research team to uncover key business findings.

Say you are the owner of an Italian restaurant and you want to test how friendly the wait staff is. You can hire actual customers to eat at your restaurant by providing them with an evaluation form to track their experience.

Another example of mystery shopping could be testing employees’ knowledge of your product or service line.

A bank or financial institution could choose to hire a mystery shopping research company to call and speak with a loan officer as if they were a prospective customer looking to buy a house.

In this example, a bank could evaluate their employer based on:

• Knowledge of home and mortgage loan services
• Ability to communicate and identify a solution
• Speaking in a friendly and professional manner
• Following through on a promise to follow up with the “prospective customer”

Mystery shopping advantages ✅

Compared to survey questions that skew positive answers, mystery shopping can provide informal opinions and feedback on a variety of in-store elements such as cleanliness, product placement displays, and store layout.

The value and results found from partnering with a mystery shopping company , allow organizations to reevaluate their business from the outside looking in.

This type of market research clearly identifies training needs and sales opportunities to ensure a positive customer relationship on the front line.

Mystery shopping disadvantages ❌

When considering mystery shopping as a market research study you must also take into account, that a participant’s experience in a store only represents a single interaction with the staff and store location.

A busy day, short staff, or various other customer service elements can cause a poor experience. This single instance may not truly represent a typical customer visit.

10. Shop-Alongs

A similar market research methodology to mystery shopping is shop-along research .

A shop-along is where an interviewer accompanies a customer while they browse a store for different items, asking a series of questions throughout the consumer’s shopping experience .

This is to likely take place in a grocery store or various retail locations.

Those who participate in a shop-along are either pre-recruited by a shop-along company or intercepted on the spot before entering the store.

In either case, participants are usually rewarded with high cash incentives because of the level of evasiveness during their shopping experience.

Shop-along research advantages ✅

An interviewer can study several different action behaviors during a shop-along to see if a customer interacted with an end cap or what path they took from one department to the next.

The shop-along experience can also be more interactive, with an interviewer asking the participant questions like:

• You looked at this item but put it back on the shelf. What was your reason for this?
• Do you typically visit the produce section first upon entering the store? Why or why not?
• Do sales such as, “buy 2 get 1” influence your buying decision? Why or why not?

Shop-along research disadvantages ❌

A drawback to shop-along research is negatively affected data. Because participants know they’re being studied, they may drift away from their normal purchasing behaviors and decisions.

Customers might choose a product they otherwise would not, like buying name-brand products instead of their typical store products in fear that their purchase will be viewed as cheap.

Example of a shop-along study

Grocery or department store locations aren’t the only markets that can benefit from shop-along research, brands sell their products in these locations too.

Take, for example, Downy. Downy would like to understand the purchasing behaviors behind customers looking to buy laundry detergent.

To blind the study, a shop-along company would intercept customers on the spot.

The interviewer would list different products (eggs, milk, etc.) to determine if laundry detergent is on the customer’s grocery list. For this type of shop-along research, the participant should be shopping in an unbiased and natural environment.

Once reached the laundry detergent aisle, an interviewer will ask the same questions as any other product.

The customer will likely provide honest insight into their purchasing decision because they don’t know this is the purpose of the study.

Recommended Reading: Understanding Accompanied Shopping Trips in Market Research

💡 Pro Tip: Hire a shop-along research company

To avoid misconstrued data, it is important to work with a shop-along company as they will provide experienced interviewers to ease the nerves of the consumer.

Better yet, a shop-along research company will work with your team to design evaluation forms and understand your unique project needs.

11. Focus Groups

Focus groups are a form of qualitative research that involves an open dialogue between 4 to 12 participants and a trained moderator to guide the discussion.

A focus group company will often recommend holding two separate groups to answer the same questions.

If only moderating one focus group, you may have 3 axe grinders steering the discussion in one way, which will lead to inaccurate feedback.

Having a second focus group will act as a gut check to verify the findings from the first group.

Focus group participants often answer questions such as:

• How would you buy X product?
• What would you change about X product?
• What did you like about X product? What didn’t you like about X product?

Focus group discussion advantages ✅

A focus group allows a group of targeted individuals to talk through their opinions, reactions, and feelings surrounding a product, commercial, advertisement, etc.

This targeted group of individuals generally offers insight into how the larger market would react to these same marketing tactics.

These group discussions are best held at a focus group facility equipped with a one-way mirror.

In doing so, you can have an inside look while research is conducted – a quality not a lot of other research methodologies can provide.

Focus group discussion disadvantages ❌

With higher quality research and data, comes a higher price tag. Focus group fees depend on a variety of factors such as time of day, length of the focus group, the demographic of participants, amount of travel, etc.

Oftentimes businesses choose to conduct online focus groups to reduce the cost of market research. Remote focus groups decrease costs associated with qualitative recruitment, travel, facility rental, and more.

You must also be wary of focus group moderator biases. The moderator running the session may subconsciously ask questions in a way that influences the participants of a focus group.

These biased interactions can skew the data of focus group results.

Recommended Reading: Ultimate Guide to Online Focus Groups

12. In-Depth Interviews

In-depth interviews (IDIs) are a qualitative market research method involving a direct, one-on-one engagement with individual participants.

IDIs are not bound to a single location as they can be conducted in person, on the phone, or via webchat.

However, if the study requires visuals or videos to share, then an in-person or web conference interview is best.

In-depth interview example

In recent years, there has been an increase in B2B organizations utilizing in-depth interviews to speak with subject-matter experts who have a career in a specific industry.

For example, Cisco may consider using IDI research to speak with CEOs or IT purchasing managers to understand their buying process for technology equipment.

In-depth interviews can reveal information such as:

• The decision-making process for selecting a product
• Any stakeholders involved in the B2B buying decision
• What factors are considered before making the purchase
• Whether the company is happy with the product they chose

In-depth interview advantages ✅

As opposed to quick phone surveys , IDIs are reserved for deeper conversations lasting anywhere from thirty to ninety minutes.

IDIs also include more than just a survey representative but many roles of a market research company such as a moderator , a senior research analyst, and a project manager.

For this reason, it is important to have a scheduled meeting time for the in-depth interview company and participant to speak.

In-depth interviews disadvantages ❌

The downside to this type of market research is the time commitment and large budget necessary for conducting in-depth interviews.

Because participants tend to be high-level executives, some type of incentive is usually required to encourage participation.

With this in mind, there is a tedious vetting process that is now required to make sure potential respondents aren’t cheating the system to make a quick buck.

Once all qualified participants are chosen and the IDIs are scheduled, in-depth interview companies will then transcribe, analyze, and report back their findings.

Recommended Reading: Higher Rewards Can Equal Lower Market Research Costs - Here's Why

13. Feasibility Studies

A feasibility study is a type of market research that predicts the success or failure of a new business venture.

This could be a new product, service, concept, or location. It utilizes both primary and secondary market research to analyze the outcome of an idea or potential concept.

Drive Research often conducts feasibility studies for: 

• New product development
• New service launches
• New business concepts
• New business locations or an expansion to a new market

Many businesses find it important to work with a feasibility studies company and invest a little money now, before wasting money on a failed business venture down the road.

Advantages of feasibility studies ✅

Before investing too much money and time into a new product, service, or site location, a feasibility study relies on   predictive analytics   to inform better business decisions.

This not only gives business owners peace of mind but is a great study to present to potential investors as well.

Feasibility studies can also provide great insight to help encourage the success of a new concept such as:

• Who is the target audience?
• How likely are they to purchase this product or service?
• What are their main sources of awareness? 
• Who are your competitors?

When introducing a new concept or location to the market it is best to make data-driven decisions. This is not the time to rely on assumptions or what you think will work.

Disadvantages of feasibility studies ❌

Feasibility studies are a more expensive type of market research. Because this methodology requires several components such as secondary research, competitor analysis, and pricing analysis it takes time to accomplish each task.

The more project management time a project takes, the more expensive the project becomes. As a result, new businesses do not have the budget needed for this methodology. 

Benefits of hiring a full-service market research company

There is no one right way to conduct market research.

With different types of market research methodologies growing every year, it is helpful to partner your business objectives with a full-service market research company to make well-informed business decisions about your product offerings.

Whether it be how best to reach your target audience or learning the buying behaviors among current customers, a marketing research firm will work with you to decide what methodology is most beneficial for an organization.

Partnering with a company that knows your industry can give you the best recommendation and make market research a less daunting tactic.

Recommended Reading: 5 Factors to Consider When Choosing a Market Research Firm

Contact Our Full-Service Market Research Company

Drive Research is a national market research company located in Upstate NY . Our team has the knowledge and tools to design a robust market research study for a variety of organizations across the country.

Interested in learning more about our market research services ? Reach out through any of the four ways below.

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

Emily Rodgers

A SUNY Cortland graduate, Emily has taken her passion for social and content marketing to Drive Research as the Marketing Manager. She has earned certificates for both Google Analytics and Google AdWords.

Learn more about Emily, here .

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Top 10 Reasons Why You Need Market Research

by Sarah Schmidt , on November 1, 2022

Because market research is often a significant investment, it’s important to understand why it’s so valuable and the reasons it deserve ongoing attention.

To explore this topic in more depth, I talked to a variety of professionals in a broad range of industries who were eager to explain how market research can help a business accomplish its goals as well as the disadvantages of not doing market research. Read on to learn their top reasons for why you need market research.

1. Pursue Promising Business Opportunities

Market research is an important component of any business plan. Understanding the market demand and the overall competitive landscape can help you avoid the gut-punch of business failure.

“If you get swept up in the excitement of starting a new business, your overoptimism could lead to its early downfall,” explained Max Wesman, COO at GoodHire, a background check company. “Instead of exposing yourself to risks you haven’t prepared for, it’s important to be objective. Your conviction alone cannot carry a business idea to success.”

Wesman advises businesses to conduct market research thoroughly and at regular intervals. Doing so can help you target the right group of consumers, price your products and services appropriately, create the right messaging strategy, stay ahead of market changes, and pivot when needed.

2. Make Informed Business Decisions

Market research grounds your decision-making in data and facts, which can help eliminate blind spots and allow you to set realistic targets for your company. “Business decisions are not made in a vacuum or based on assumptions,” said David Bitton, Co-Founder and CMO at DoorLoop, a rental property management software.

Because market research is data-driven, it can help organizations create strategic plans and allocate their resources and budgets effectively. Venture capitalists, investment banks, and management consultants all routinely rely on market research, because high-stakes decisions require much more than guesswork or hunches. Before taking a leap, people want to see the data.   

3. Gain a Competitive Advantage

Market research is also an important tool for benchmarking and competitive analysis in a market defined by constant change.

“New innovations and companies enter the market every day, so performing market research is an essential part of staying competitive,” said Laurel Mintz, Founder and CEO of Elevate My Brand, a marketing agency based in Los Angeles. “It’s important to use direct, indirect, and aspirational competitors as a comparison to where you are, not only to see how you can improve, but also to use for marketing.”

For example, if a company does market research and they discover that their prices are significantly lower than the competition, it could be a sign to raise prices or use their low prices in their marketing strategy, according to Mintz.

4. Stay Current and Relevant to Consumers

In addition, when you truly understand your competition, and how industry trends are shifting, you give your company the opportunity to adapt.

Market research can even give brands the chance to adopt new concepts from other companies within their market. “Inspiration is a powerful tool,” explained David Batchelor, President of DialMyCalls.com, a texting and calling solution. “Industries are constantly evolving due to new technology and changing consumer behaviors. So if you’re not a ‘first-mover,’ you need to be a ‘fast-follower’ as a result of thorough market research.”

5. Develop an Effective Marketing Strategy

Market research should also help inform all your marketing efforts so you create content that resonates with your target audience and produces real results. You should know who you are creating marketing content for, who you are attracting into your sales funnel, and what their pain points are.

Understanding and marketing to the right audiences is key. “Companies that skip this essential step may lose insights, additional sales, and brand strength that all add up overtime,” said Jason Panzer, President of HexClad, a company that produces hybrid stainless steel nonstick pans.

6. Refine Your Messaging During Pivotal Moments

Market research can not only improve the effectiveness of your marketing strategy, but it can also help you avoid PR disasters that can tank your brand’s reputation and push loyal customers away.

“Unexpected events like the pandemic and inflation have changed consumer shopping trends in drastic ways, so how you address these issues can either help or hurt your brand,” explained Greg Gillman, Chief Revenue Officer at MuteSix, a performance marketing agency accelerating growth for disruptor brands. “By understanding the impact of world events on customers, you will avoid coming off as tone deaf to those issues.”

7. Take Your Sales to the Next Level

Market research can also improve the bottom line by helping you cross-sell, upsell, and create highly personalized and targeted pitches, according to Manish Mishra, Associate Director of Sales at LeadSquared, a marketing automation and CRM software for businesses.

What’s more, the insights you glean for your sales team can build on each other over time. As Mishra explained it, “Strategies for when, what, and how much to sell can be sketched out from the available information. Similar to how it takes multiple meetings to build a relationship, market research gives much better information about leads when it is repeated regularly.”

8. Identify Avenues for Growth

In addition to boosting sales and marketing efforts, companies also use market research to enhance product development and to plan how to expand into new markets.

“Regular market research initiatives within your company can help you discover new opportunities for growth and improvement,” said Laurice Constantine, Digital Managing Editor at Forbes Middle East and Founder of Casadar.com, an online marketplace that connects buyers with sellers and consultancy service providers in the field of decoration, architecture, and interior remodeling. “You might discover that there are untapped customer bases that would benefit greatly from your products or services. You may also discover that your products or services could be improved.”

Market research can also give you ideas for ways to combine offerings, create add-ons, or upsell items to boost your profits.

9. Reduce Risk and Gain Support from Stakeholders

Although risks are inevitable when running a business, market research can help you decrease them during the start-up phase and beyond. “An effective way to make informed decisions and reduce pitfalls is through market research,” according to Igal Rubinshtein, Founder at Home Essentials Direct, an online marketplace for home goods and DIY projects. “Through past information and by predicting future trends, you are undeniably in a better place to make a decision in the direction of growth.”

Having data to back up your ideas can also help bring other stakeholders on board, whether you need the approval of the executive suite, to win over investors for your business, or to impress clients. By providing a solid foundation for your idea, market research can help you make a persuasive case and tip the balance in your favor.

10. Save Time and Money

Lastly, market research can help you streamline your business operations and avoid waste.

“Targeted efforts are always more effective than broad ones,” explained Geoff Cudd, Founder of Don’t Do It Yourself, a website that provides advice and reviews to help people choose the best freelancers and tools to grow their business. “By conducting market research, you can avoid wasting time and money on marketing and advertising efforts that don’t reach your target market. Instead, you can focus your resources on strategies that are proven to be effective with your specific audience. This will help you get the most bang for your buck and use your resources more efficiently.”

Market research can also help you understand where the market is going, so you can plan what business lines to scale up or scale down, and ensure your investments are proportional to market demand. 

When you have tough business questions, market research can help you move forward with confidence. Will it pay off to acquire a new company, build another factory, or expand your business into another country? Market research can help answer these types of critical questions and position you for success.

Where to Start

When you need market research, MarketResearch.com is here to help. With more than 20 years of experience in the market research industry, hundreds of market research report publishers, and thousands of clients, no one is better suited to help you zero in on research you can trust. Contact us anytime for help finding what you need at the best price available.

In addition, please download our free white paper for more information on the value of market research for validation and decision making.

About the Author : Sarah Schmidt is a Managing Editor at MarketResearch.com, a leading provider of global market intelligence products and services.

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• Primary Data vs. Secondary Data: Market Research Methods

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25 Advantages and Disadvantages of Market Research

Market research is a systematic process of collecting, analyzing, and interpreting data and information to gain insights into various aspects of a market, including its size, trends, customer preferences, competition, and potential opportunities or threats. It is a fundamental tool used by businesses, organizations, and governments to make informed decisions, develop effective strategies, and stay competitive in their respective markets.

Market research has ancient roots. It dates back to the time of the Babylonians, who gathered information on crop yields and prices. Even in those early days, data collection and analysis were used to make informed decisions.

To capture a holistic view of consumer behavior , market researchers often combine data from various channels, including social media, e-commerce, traditional surveys, and customer support interactions.

While market research offers numerous advantages, it also comes with its fair share of disadvantages.

Advantages of Market Research

The advantages of market research are not just about surface-level benefits. They are about deepening understanding, mitigating risks, and driving sustainable growth.

1. Informed Decision-Making

Market research provides businesses with a wealth of information that forms the foundation for informed decision-making.

This advantage goes beyond the general idea of making better choices. It means that decisions are grounded in empirical evidence and insights gathered from data analysis. This precision can lead to more effective resource allocation, optimized strategies, and ultimately, increased profitability.

2. Customer Understanding

The understanding of customers garnered through market research is multifaceted. It goes beyond merely recognizing demographics ; it delves into psychographics, behavior, motivations, and pain points.

In-depth customer profiles help businesses craft highly targeted marketing campaigns, design products that meet specific needs, and enhance customer experiences. The result is not just customer satisfaction but customer loyalty and advocacy.

3. Competitive Advantage

Market research serves as a strategic compass for gaining a competitive advantage. It allows businesses to assess their strengths and weaknesses relative to competitors.

By benchmarking performance against rivals, companies can identify areas for improvement or differentiation. This advantage is not about following the competition but strategically outperforming them in ways that resonate with customers.

4. Risk Mitigation

Market research plays a pivotal role in risk mitigation. It’s not just about identifying risks but also understanding their potential impact.

Businesses can use market research to assess the severity of threats and the likelihood of their occurrence. Armed with this knowledge, they can develop contingency plans, adapt to changing market conditions, and reduce exposure to unforeseen risks.

5. Product Development

The advantage of market research in product development is not limited to identifying features customers desire. It extends to optimizing the entire product life cycle. Research helps in defining product specifications, pricing strategies, and launch plans.

It also guides post-launch improvements based on feedback and market response. This iterative approach leads to more successful products with a higher chance of market acceptance.

6. Market Segmentation

Market segmentation through research is akin to using a finely tuned lens to view a diverse audience. It allows businesses to create highly tailored marketing messages, product variations, and distribution channels for each segment.

This personalization leads to higher conversion rates, better customer engagement, and more efficient use of marketing resources.

7. Measuring Effectiveness

Market research doesn’t stop after implementing strategies; it includes continuous monitoring and evaluation. It allows businesses to measure the effectiveness of marketing campaigns, product launches, and other initiatives.

Metrics like customer acquisition cost (CAC), customer lifetime value (CLV), and conversion rates help gauge success. This feedback loop ensures strategies can be adjusted in real time for maximum impact.

8. Enhanced Communication

Effective communication is at the heart of successful marketing, and market research is the cornerstone of this process. It helps businesses understand the language, preferences, and communication channels favored by their target audience .

By tailoring messages accordingly, companies can create a genuine connection with customers, fostering brand loyalty and advocacy.

9. Cost Efficiency

The cost-efficiency advantage of market research extends beyond immediate savings. It ensures that resources are allocated where they are most likely to generate returns.

By avoiding wasted efforts on unproductive strategies or irrelevant markets, businesses can achieve higher returns on investment (ROI) and operate more efficiently.

10. Long-Term Growth

Market research isn’t just about short-term gains; it’s a catalyst for long-term growth. It facilitates innovation, identifies emerging trends, and helps businesses evolve with changing consumer preferences.

This adaptability is essential for sustained success and staying ahead in a dynamic marketplace.

11. Brand Building

Market research plays a pivotal role in brand building. It helps businesses understand how their brand is perceived by customers and competitors.

By conducting brand perception surveys and analyzing the results, companies can identify areas for improvement in brand image, messaging, and positioning. This insight allows for the development of a more compelling and consistent brand identity , which is essential for long-term success and customer loyalty.

12. Product Innovation

Market research is instrumental in driving product innovation . Beyond simply understanding customer needs, it delves into anticipating future needs and desires.

Through methods like trend analysis and concept testing, businesses can identify emerging market trends and consumer preferences. This proactive approach enables companies to stay ahead of the curve by developing innovative products that resonate with evolving consumer demands.

13. Optimized Pricing Strategies

Pricing is a critical element of any business strategy, and market research provides invaluable insights for optimizing pricing strategies .

By conducting pricing surveys, competitive pricing analysis, and willingness-to-pay studies, companies can set prices that maximize revenue while remaining competitive. This precision in pricing can lead to increased profit margins and improved market positioning.

14. Global Expansion

For businesses considering global expansion, market research is indispensable. It helps in assessing the viability of entering new markets by providing insights into local consumer behavior , cultural nuances, regulatory environments, and competitive landscapes.

In-depth international market research ensures that expansion efforts are well-informed, reducing the risks associated with entering unfamiliar territories.

15. Evaluating Marketing Channels

In the digital age, businesses have a multitude of marketing channels at their disposal, from social media and email marketing to content marketing and influencer partnerships.

Market research helps in evaluating the effectiveness of these channels for reaching and engaging with the target audience. By analyzing customer preferences and behavior, businesses can allocate marketing budgets to the most productive channels, maximizing their marketing ROI.

Disadvantages of Market Research

Certainly, let’s explore the disadvantages of market research in greater detail, shedding light on the intricacies and potential challenges associated with this crucial business practice.

1. Costly and Time-Consuming

Market research can be a resource-intensive endeavor. The costs associated with data collection, analysis, and hiring experts can add up quickly, especially for small businesses with limited budgets .

Additionally , conducting comprehensive research often takes time, and in rapidly changing markets, delays can lead to missed opportunities.

2. Risk of Bias

Bias is a significant concern in market research. Researchers and survey designers must be vigilant to minimize bias in various forms, including question phrasing, sample selection, and interpretation of results.

Failure to address bias can lead to skewed data, undermining the reliability and accuracy of research findings.

3. Complex Data Analysis

Interpreting market research data can be complex, requiring expertise in statistics and data analysis.

Misinterpretation of data or improper statistical methods can lead to incorrect conclusions and misguided decision-making. This complexity may necessitate the involvement of trained analysts or data scientists.

4. Overreliance on Data

While data-driven decision-making is essential, an overreliance on data can stifle innovation and creativity.

Market research primarily deals with existing data and known trends, which may limit the exploration of new ideas and unconventional solutions. Striking a balance between data-driven insights and strategic vision is crucial for holistic decision-making.

5. Limited Predictive Power

Market research excels at providing insights into past and current market conditions, but predicting the future is inherently challenging.

Rapid changes in consumer behavior, technological advancements, and external factors can make accurate forecasting difficult. Businesses should be aware that research findings are not crystal balls but rather informed estimations.

6. Data Privacy Concerns

With the increasing emphasis on data privacy regulations and ethical considerations, mishandling customer data can lead to legal issues and reputational damage.

Businesses must navigate a complex landscape of data protection laws and ensure they handle customer information ethically and transparently.

7. Information Overload

In the digital age, businesses have access to vast amounts of data. Handling this information overload can be overwhelming.

Distinguishing valuable insights from noise and managing the sheer volume of data can be challenging, requiring robust data management systems and skilled analysts.

8. Resistance to Change

Implementing changes based on market research findings can be met with resistance, particularly if the findings challenge established beliefs or practices within an organization.

Managing organizational change , convincing stakeholders, and aligning teams with research-driven strategies can be a complex and time-consuming process.

9. Competitive Intelligence Risks

While monitoring competitors is crucial, there’s a risk of overemphasizing competitive intelligence to the detriment of innovation.

Focusing too much on what competitors are doing can lead to a “ follow the leader ” mentality rather than forging a unique market position. Businesses should use competitive intelligence as a tool for inspiration rather than imitation.

10. Sample Size Limitations

The accuracy of market research findings heavily depends on the representativeness of the sample used for data collection.

Small or unrepresentative samples can lead to skewed results and misguided strategies. Ensuring a large enough and diverse sample can be challenging, especially when dealing with niche markets or elusive demographics.

Conclusion:

Market research is a valuable tool for businesses seeking to thrive in competitive markets. It offers a plethora of advantages, including informed decision-making, customer understanding, and a competitive edge. However , it is not without its drawbacks, such as costliness, bias, and limitations in predicting the future.

To harness the benefits of market research while mitigating its disadvantages, businesses must approach it strategically. They should invest in high-quality research, ensure data integrity, and strike a balance between data-driven decisions and visionary thinking.

Moreover , staying updated on ethical and legal considerations in data collection and management is crucial to maintaining a positive reputation and customer trust.

In a rapidly changing business landscape, market research remains an indispensable tool for companies looking to adapt, grow, and succeed. When conducted thoughtfully and with a keen understanding of its strengths and weaknesses, market research can be a cornerstone of sustainable business success.

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10 Benefits of Market Research

Continuing the market research series, in this article, we’ll discuss the importance and benefits of market research.

To recap, in the last article we talked about what market research is, and the different types of market research every business needs to conduct.

From the last article you probably already have a good idea on the benefits of conducting your research, but let’s go deeper and expand on what you stand to gain from a thorough market research.

1. Provides Better Understanding Of Your Customers

Market research will help you map out the full profile of your ideal customers. Knowing who your customers really are will help you determine the market size and what triggers them to buy. 

By conducting market research you stand to gain valuable insights like their age, location, gender & income, which will help you in creating effective marketing and pricing campaigns.

Market research will also help you determine the type of product or service that would be profitable to introduce in a market. Which would also help you test if the existing product/services in the market are meeting the customer’s needs or if there are potential customers you have not reached.

If you already have a product/service in the market that is not meeting customers’ expectations then the research will help you find out if you require a change in the packaging, delivery or in the product/service features itself.

2. Provides Insights On Your Competitor And How To Outsell Them

Your competitors are taking away your customers and winning in the marketplace because they’ve done their research ahead of you.

Market research is a good evaluation tool that can help you track your company’s progress and the growth of your competitors, by keeping an eye on your competitors. We can use the data collected to devise business strategies that would keep you ahead of your business rivals.

Being the best in your market demands a relentlessness to keep getting the basics right combined with a curiosity and willingness to innovate. Knowing how to leverage the findings and insights you get the from market research is the key to getting ahead and staying ahead.

According to Tutsplus Business , If you can beat your competitors at finding out your customers’ needs and you aim to fulfill those needs, you’ve got a better chance of standing out from the competition. Here are some ways you can use market research to outsell competitors:

• Target your competitors’ dissatisfied customers
• Find an under-served customer segment
• Identify unaddressed customer needs

3. Ability To Test Product Success Before Launch

You can never be 100% sure that your product will be a hit or will instantly connect with your potential customer.

However, with market research, you’ll find out what approach you should take when marketing the product and the key messages that resonates with potential customers

4. Helps In Decision Making

If the goal of market research is to identify business opportunities and strengthen your position in the market, then there would undoubtedly be several big decisions that could facilitate the success of your business.

The need for and importance of marketing research frequently comes up when making tough business decisions. Instead of guessing, going with your gut feelings or having arbitrary criteria for the decisions you make as a business owner, you can always go back to your market research report. 

Based on that research you would get answers to questions such as 

• Will this decision lead to more customers?
• Will we be able to reach more people who are likely to buy from us? 
• Will it be clear to customers that our business can meet their needs? 

While not all decisions should be solved by market research, many of them can be, such as:

• where to spend your advertising or marketing budget
• whether there’s a demand for a new product you want to make
• if you should open a storefront in a new location
• which products to discontinue and which ones to improve
• how to price all your offers

5. Spot Business Opportunities

Every business is constantly looking to identify new market opportunities for existing and new products. 

There is a lot of competition out there, for every product or service you put into the market, there are at least a dozen others from competitors. Even worse, consumer needs are difficult to predict based on product functionality alone. 

This is where market research comes in to play. Good market research will assist in production planning and make the distribution process seamless.

After you’ve done your market research, it’ll be clear to you who you want to reach out to (your target customers), where you can reach them (your marketing channels), and what they’re interested in. Once you’ve defined these, you’ll be able to easily spot business opportunities such as:

• Partnerships with other businesses
• Profitable order upgrades
• New locations to sell to

6. Strengthen Your Business Position In The Market

When done right, market research can provide detailed information on the market share, competitors, customer dissatisfaction levels, sales performance, and channel distribution. 

Which would, in turn, identify potential issues with your business and ideas on how to address these issues quickly.

As the saying goes Knowledge is power . You should use market research to gain a better perspective and understanding of your market or target audience and ensure that your firm stays ahead of the competition.

When it comes to strengthening your position in your target market, the whole idea is to promote and distribute ideas, goods, and services to create a satisfying customer base. This is the basis of business growth.

Going a step further, market research also helps to analyze the cause of an existing customer choosing a different brand over the old one. The goal here is to retain your customer base while generating profit at the same time.

7. Lower Business Risks

According to data from the Bureau of Labor Statistics roughly half of businesses with employees don’t survive past the fifth year. And we all know that the only way to make sure that your business survives is to ensure that you’ve got a steady stream of sales and customers.

Here’s the kicker, you need market research to sustain your business.

Market research helps you understand your customers’ demands, identify more business opportunities, plan the perfect marketing campaign, minimize losses, and keep track of the competition. 

Even better, it allows businesses to Identify problems in their strategies and business executions before they happen. Effective market research will not only help you predict some pitfalls that can occur but also it will save you a lot of money too. 

We all want to believe that our product or service is the perfect solution to your customer’s needs, that our offering is a perfect customer-market fit, but what if that isn’t the case? What if you’re wrong and giving launching would be a big risk?

The process of market research itself is designed to reduce the risk.

What if you’re yet to launch, but is considering investing in a business venture? Well, Market research is also essential here. Spending what is a small proportion of your investment in researching and testing the market, product, concept or idea makes sound business sense.

Regular market research will help you check your business performance with your current customers and potential customers to ensure that you’re still meeting their needs. 

8. Create Relevant Marketing Resources

We know that when we run ads, we should test to see what phrases, colors, images perform better than others. The same thing applies to marketing in general.

With in-depth market research, you’ll know what images or phrases to put on marketing assets such as fliers, website, social media, blog posts, videos, etc.

You’ll know this because if your research targets the right audience, then technically your target customers have already told you their wants, needs, and frustrations. And as such, you’ll know exactly what to address and how to address it when you create your marketing materials.

For example, an author or blogger can ask their readers via a survey, what problems they have and are trying to solve. and instead of blindly coming up with blog topics, they can use the result of the survey to create posts that readers are really interested in.

Here are some other ways your marketing materials will be easier to create:

• Knowing whether customers see your products and services as a necessity or as a luxury can help you design your product labels, brochures, and a website that fits their perception.
• Identifying the age range of your customers can tell you the type of language you’ll be using in your promotional materials. You’ll write differently when addressing retired Baby Boomers than you would when addressing young professionals.

The collecting relevant data and analyzing this data can help businesses adopt a proactive approach for both, framing and implementing market strategies.

9. Knowledge On Where To Advertise

Market research not only helps in identifying new business opportunities but also helps in designing ad campaigns that will directly target the interest of your potential consumers and help in increasing sales. 

Thorough research should provide valuable information about the sales potential of a particular market segment, during a specific time period, and within a particular age group.

Let’s be honest, Ads can be expensive and one major issue small businesses face is a limited budget. This means you need to get smart with your marketing budget, and your ads must be optimized to give you the best possible return within your budget.

Conducting market research can help ensure that you’re reaching your intended audience in the channels where they’re most likely to see your message.

According to Tutsplus Business , market research can help with:

• Buying ads on social media: If your market research shows that your target audience spends most of their time on Instagram and almost never use Twitter, you’ll know to direct most of your social media ad budget to Instagram and forget about Twitter.
• Placing flyers and posters: Knowing the physical spaces where your customer spends their time will tell you where you can best place your advertising. For example, university students are likely to be on campus, so placing ads for that market means that you can try bulletin boards on campus or outside local establishments that their crowd frequents.
• Targeting ads: Online ads such as social media ads and pay-per-click ads can often be targeted with precision. This means that you can target based not just on the usual demographic data, but also based on online behaviors, life stage, and interests. If you truly know your customers, you’ll be able to maximize the potential for targeting. For example: here are some targeting options for Facebook Ads .

10. Facilitates Strategic Planning

What is the basis of your current business strategy? If it’s evidence-based and you’ve taken the time to invest in market research, you can be confident that you’ve given yourself the best chance to achieve your business goals.

When businesses set goals for their business, it’s typically related to growth in sales or customers. But without market research, you won’t be able to know if your goal is achievable and how to achieve it in the first place.

You might say that you want to double sales by the end of the next quarter. But how would you know if this goal is feasible if you don’t know whether the size of your target market is more than twice the size of your current customer base?

Without knowing the current size of your potential market, you’ll just be setting irrational goals.

Now that you know the importance of market research and how it can benefit your business, in the next article will discuss how to create a market research proposal. A template of the proposal process will also be included.

Comment with any questions you have about Market Research Proposals and I will get back to you ASAP.

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10 key benefits of market research

Market research is available as a service to help any company, service provider, individual or organisation make better, more informed decisions. The more research is embedded in the strategic plans of a firm, the better equipped it is to deal with the changing environment within which it operates. Here is a list outlining the main benefits of investing in marketing research:

• It helps businesses strengthen their position. Knowledge is power. Use market research to gain a better perspective and understanding of your market or target audience and ensure that your firm stays ahead of the competition.
• It minimises any investment risk. This is a simple but vitally important and often business critical consideration. Spending what is often only a small proportion of your investment on researching and testing the market, product, concept or idea makes sound business sense.
• It identifies potential threats and opportunities. Both primary research (fieldwork) and secondary research (desk research) can be utilised as an insurance policy against both obvious dangers on the road ahead. Coupling this with some qualitative research for deeper probing can highlight certain opportunities or warning signs that may otherwise have been missed.
• It helps to discover your’s and your competitor’s strengths and weaknesses. It’s vitally important to adopt an ‘eye’s wide open’ approach to any market research project which is why it’s often advised to work with a market research agency to ensure completely unbiased reporting. Use research findings to adapt and learn from your own weaknesses whilst capitalising on your new-found knowledge from competitor analysis to take advantage and forge ahead of the pack.
• It facilitates strategic planning. What is the foundation of your business strategy? If it’s evidence based and you’ve taken the time to invest in your own (and hopefully ongoing) research, you can be confident that you’ve given yourself the best chance to achieve your business goals.
• It helps in spotting emerging trends. Staying ahead in business is often about being the first, being the best or doing something that no-one else has thought about. Regularly taking the ‘pulse’ of what’s hot and what’s not in your industry is a key discipline. Speak to your research agency or research consultant about the range of techniques you can employ to spot and exploit these trends.
• It assists businesses to stay ahead of the competition.  Being the best demands a relentlessness to keep getting the basics right combined with a curiosity and willingness to innovate. Knowing how to leverage the findings and insights you extract from market research, audience research and data research are the keys to both getting ahead and staying ahead.
• It provides revenue projections.  A market forecast is a core component of a market analysis projecting the future numbers, characteristics, and trends in your target market. Potential customers can then be divided into segments . You want to focus on the best market – which is not necessarily the largest one or the market with the highest growth – it will be the one that matches your own company profile.
• It focuses on customer needs and demands. There are so many important reasons to keep your customers at the centre of all that you do in business and the same goes for research. With so many ways to reach customers using online panels, web communities, telephone survey’s, depth interviews and focus groups, market research keeps you attentive to where you can improve your proposition, customer service or product offering.
• It helps to evaluate the success of a business against benchmarks. A PWC survey found that companies that benchmark achieve 69% faster growth and 45% greater productivity than those that don’t. Use market research for competitor research, employee engagement surveys, and to highlight performance or knowledge gaps and areas for potential growth. This will open your company up to thinking about new methods, ideas and tools to improve your business effectiveness.

Find out more…

If you’re interested to find out more about the many techniques and research methodologies that are available to you, then check out our introduction to market research .

How to avoid common market research mistakes…

To help you avoid some common market research pitfalls , we’ve put together a list of the most common market research mistakes  and how to avoid them!

Can we help you?

If you have a specific business question that you think could be solved with the help with a market research professional then we’d be delighted to have chat. Please get in touch using the form below or you can email [email protected] or call us on 01271 337 100.

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5 qualities to look for in a market research company 06/02/2017

10 market research mistakes and how to avoid them 09/05/2017

Using market research to win new business 10/07/2018

Essential Market Research Basics For Your Startup 11/02/2020

5 Golden Rules To Get The Most Out Of Your Market Research 02/03/2020

Top Market Research Tools Every Business Needs To Know About 11/08/2020

How To Begin Your Career In Market Research 17/01/2023

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What is Market Research? (Explained With Examples)

Oct 11, 2023

Market research is an essential component of any business strategy. It helps companies understand their target market, identify consumer preferences, and make informed decisions about product development, marketing campaigns, and overall business growth. In this article, we will explore the concept of market research in detail, providing clear definitions, discussing advantages and disadvantages, and providing real-world examples to illustrate its importance

1°) What is Market Research?

Market research is the process of gathering and analyzing relevant data about a target market to gain insights into consumer behavior, preferences, and needs. It involves collecting both qualitative and quantitative data to understand market trends, competitor analysis, and customer satisfaction levels.

Market research plays a crucial role in helping businesses make informed decisions and develop effective strategies. By understanding the market dynamics and customer demands, companies can tailor their offerings to meet the specific needs of their target audience. This not only enhances customer satisfaction but also increases the chances of business success.

1.1 - Definition of Market Research

Market research can be defined as the systematic gathering, interpretation, and analysis of data about a specific target market, industry, or product/service. It helps businesses understand market dynamics, customer demands, and competitor strategies, ultimately enabling them to make informed decisions.

Market research involves various methods and techniques to collect data, such as surveys, interviews, focus groups, and observation. These methods help researchers gather both qualitative and quantitative data, providing a comprehensive understanding of the target market.

1.2 - Advantages of Market Research

There are several advantages of conducting market research:

Market Insights: Market research provides valuable insights into customer preferences, behaviors, and pain points, allowing businesses to tailor their offerings to meet customer needs effectively. By understanding what drives consumer decision-making, companies can develop marketing strategies that resonate with their target audience.

Competitor Analysis: By conducting market research, companies can gain a comprehensive understanding of their competitors, their strengths, weaknesses, and unique selling propositions. This knowledge helps businesses refine their own strategies and stand out in the market. It enables companies to identify opportunities for differentiation and develop competitive advantages.

Product Development: Market research helps businesses identify potential gaps in the market, enabling them to develop innovative products that satisfy unmet consumer needs. By understanding customer preferences and pain points, companies can create products that address specific challenges or provide unique solutions.

Evidence-Based Decision Making: By collecting and analyzing data, market research eliminates guesswork and supports data-driven decision making, reducing the risk of making costly mistakes. It provides businesses with the necessary information to evaluate market opportunities, assess risks, and make informed choices.

1.3 - Disadvantages of Market Research

While market research offers numerous benefits, it also has certain limitations:

Time-consuming: Conducting comprehensive market research can be a time-consuming process, requiring careful planning, data collection, and analysis. It involves identifying research objectives, designing research methodologies, collecting data, and analyzing the findings. This process can take weeks or even months, depending on the scope of the research.

Costly: Market research can be expensive, especially when involving large sample sizes or advanced research techniques. The costs include expenses related to data collection, analysis, and hiring research professionals. Small businesses with limited budgets may find it challenging to invest in extensive market research.

Accuracy Limitations: Despite efforts to ensure reliability, market research results are still subject to bias, sample error, and respondent inaccuracies. Researchers must carefully design their studies to minimize these limitations, but it is impossible to completely eliminate them. The accuracy of market research findings depends on the quality of data collection, sample representativeness, and the honesty of respondents.

2°) Examples of Market Research

Real-world examples can help illustrate the practical application of market research:

2.1 - Example in a Startup Context

Imagine a startup aiming to disrupt the meal delivery industry. Before launching their service, they conduct market research to identify the preferences and demands of their target audience. Through surveys, focus groups, and data analysis, they uncover that convenience, healthy options, and affordability are essential factors for their target market. Armed with this information, they develop a meal delivery service that meets these needs and differentiates themselves from established competitors.

For instance, during their market research, the startup discovers that their target audience values convenience above all else. They find that busy professionals and families are looking for a meal delivery service that can provide them with quick and easy options for their busy lifestyles. Armed with this insight, the startup decides to focus on developing a user-friendly mobile app that allows customers to easily order meals with just a few taps on their smartphones. This innovative approach to convenience sets them apart from their competitors and attracts a loyal customer base.

In addition to convenience, the startup also uncovers a strong demand for healthy meal options. They find that their target audience is health-conscious and actively seeks out nutritious meals that align with their dietary preferences. To cater to this demand, the startup partners with local farms and suppliers to source fresh and organic ingredients for their meals. They also collaborate with nutritionists and chefs to create a menu that offers a variety of healthy and delicious options. This commitment to providing healthy meals not only meets the needs of their target audience but also positions the startup as a trusted and reliable choice in the market.

Lastly, the startup identifies affordability as a key factor for their target market. They discover that price sensitivity is high among their audience, and they are looking for cost-effective meal delivery options that don't compromise on quality. To address this, the startup adopts a pricing strategy that offers competitive prices while still maintaining the quality and value of their meals. They also introduce subscription plans and loyalty programs to incentivize repeat customers and provide additional savings. This focus on affordability allows the startup to attract price-conscious customers and gain a competitive edge in the market.

2.2 - Example in a Consulting Context

A consulting firm specializing in marketing strategy decides to expand its service offerings. To ensure they align with market demand, they conduct market research to identify the most sought-after services and emerging industry trends. By analyzing market data, interviewing industry experts, and conducting competitor analysis, they identify a gap in the market for data-driven digital marketing strategies. This research helps the consulting firm refine their service offerings and attract new clients.

During their market research, the consulting firm uncovers a growing demand for data-driven digital marketing strategies. They find that businesses are increasingly looking for ways to leverage data and analytics to optimize their marketing efforts and drive better results. Armed with this insight, the consulting firm decides to develop a specialized service that focuses on helping businesses harness the power of data in their marketing strategies.

To deliver this service, the consulting firm invests in hiring data analysts and marketing experts with a strong background in data-driven marketing. They also develop proprietary tools and software that can collect, analyze, and interpret marketing data to provide actionable insights and recommendations to their clients. By offering this specialized service, the consulting firm is able to position themselves as industry leaders in data-driven marketing and attract clients who are seeking innovative and effective marketing solutions.

In addition to data-driven marketing, the consulting firm also identifies an emerging trend in influencer marketing. They find that businesses are increasingly turning to influencers and social media platforms to reach their target audience and build brand awareness. Recognizing the potential of this trend, the consulting firm expands their service offerings to include influencer marketing strategies. They develop partnerships with popular influencers in various industries and create comprehensive influencer marketing campaigns for their clients. This expansion allows the consulting firm to tap into a growing market and provide their clients with a holistic approach to digital marketing.

2.3 - Example in a Digital Marketing Agency Context

A digital marketing agency wants to optimize its client's pay-per-click (PPC) advertising campaigns. They conduct market research to understand consumer behavior and identify effective strategies. By analyzing search data, conducting A/B testing, and reviewing industry case studies, they discover that creating personalized ad copy and optimizing landing pages increases click-through rates and conversions. Armed with this knowledge, the agency produces better results for their clients and improves their overall reputation.

During their market research, the digital marketing agency delves into consumer behavior to gain insights into what motivates users to click on PPC ads and convert into customers. They find that personalization is a key factor in capturing the attention of users and driving conversions. Armed with this insight, the agency develops a strategy that focuses on creating personalized ad copy that resonates with the target audience. They conduct extensive research on the target audience's demographics, interests, and preferences to craft ad copy that speaks directly to their needs and desires. This personalized approach increases the relevance and effectiveness of the PPC ads, resulting in higher click-through rates and conversions for their clients.

In addition to personalized ad copy, the digital marketing agency also discovers the importance of optimizing landing pages in maximizing the success of PPC campaigns. They find that a well-designed and user-friendly landing page can significantly impact the conversion rate of PPC ads. Armed with this insight, the agency conducts A/B testing to identify the most effective landing page design and layout. They analyze user behavior, conduct heat map analysis, and gather feedback from users to refine and optimize the landing pages. This meticulous approach to landing page optimization leads to improved conversion rates and a higher return on investment for their clients' PPC campaigns.

2.4 - Example with Analogies

Imagine a chef who wants to create a new dessert recipe. Before experimenting with ingredients, they conduct market research to gather inspiration and understand current dessert trends. By analyzing popular recipes, studying customer reviews, and experimenting with flavors, the chef can develop a unique and delicious dessert that resonates with their target audience.

During their market research, the chef explores various dessert trends and flavors that are currently popular among consumers. They analyze social media platforms, food blogs, and culinary magazines to identify the latest dessert trends and gather inspiration for their own creation. Armed with this knowledge, the chef experiments with different flavor combinations, textures, and presentation styles to develop a dessert that not only satisfies the taste buds but also captures the attention of their target audience.

The chef also pays close attention to customer reviews and feedback on existing dessert recipes. They analyze the strengths and weaknesses of popular recipes and use this information to refine their own creation. By incorporating customer preferences and addressing common complaints or suggestions, the chef ensures that their dessert stands out from the competition and meets the expectations of their target audience.

Market research plays a pivotal role in understanding consumer needs, identifying market opportunities, and driving business success. Whether you are a startup, consulting firm, or digital marketing agency, conducting market research can provide valuable insights, inform decision-making, and improve overall business performance.

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Market Research: Need, Advantages and Disadvantages

Meaning of marketing research.

Marketing research may be defined as the mechanism which helps in linking the customers, producers and several other end-user to the marketer and help in finding and communication of all required information. It is the system that leads to the collection of data, analysis of data and then interprets the required information to the users.

Need and Advantages of Market Research

Easy detection of market problems and opportunities.

The first and primary advantage of marketing research is that it give complete information about the market. It give details regarding the marketing opportunities about the product which decides its success or failure. Apart from this it also helps in identifying the competitive nature of the market, whether customers are satisfied or not, the sales level of the company and also the channel of distribution used.

Helps in Marketing Strategies Formulation

Understanding of customer needs.

Today the success of every business depends on its customers and therefore nowadays marketing activities are customer targeted.  Marketing research play a very effective role in collecting the information regarding the customer wants which help in designing the product accordingly so that the customer need and wants can be satisfied easily.

Improve Sales Performance

Helps in launching of new products.

Marketing research plays a very effective role in determining the success or failure of the new product to be launched in the market. It facilitates and makes it possible for testing of the upcoming product in a market on a small scale and also help in getting the response of the customers regarding the new product. So it basically lowers the risk involved in the launching of a new product.

Helps in Evaluating The Export Potential

Support the management in decision making.

Managers at the top-level require all relevant information before making any decision. Unless and until all required relevant information is supplied to the management team their functions are useless. Marketing research plays a very effective role in the supply of all current and accurate information to the management team.

Disadvantages of Market Research

Market research takes time, research is expensive, inaccurate information.

Modern time is changing time, fashion and trends change over the night. So, market research fails to understand fashion and trends of the industry.

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Marketing Research

Table of Content

Marketing research process, benefits of marketing research, disadvantages of marketing research.

Want to know your customers better? Start with marketing research.

Marketing research is the compass that guides businesses through the ever-changing landscape of consumer preferences and market trends. By diving deep into customers’ minds, companies uncover valuable insights to inform product development, advertising strategies , and customer engagement. Imagine launching a new product without understanding what your audience truly wants – marketing research helps you avoid that gamble, ensuring your efforts resonate with the right people at the right time.

Define the Problem and Research Objective

The most crucial step in any marketing research project is determining the problem. Before conducting research or collecting data, you need to understand what you want to learn. Identifying the root problem or opportunity helps determine the necessary information and how to obtain it. For example, you might explore how to address a loss in market share or how to launch a product for a specific demographic.

Create the Research Plan

Marketing managers must decide on data sources, research methods, research instruments, sampling methods, contact methods, and research tools to design an effective research program.

• Data Sources : Researchers can collect secondary data, primary data, or both. Secondary data already exists and was collected for another purpose, while primary data is gathered first-hand for a specific project.
• Research Methods : Five main methods to collect primary data include observation, focus groups, surveys, behavioral data, and experiments.
• Research Instruments : Common instruments include questionnaires, qualitative measures, and technological devices. Questionnaires, with both closed-end and open-ended questions, are particularly flexible and useful.
• Sample Plan : This involves deciding on the sampling unit, sample size, and sampling procedure to ensure the sample is representative and reliable.
• Contact Methods : Respondents can be reached via email, phone, in person, or online.

Collect the Data

Data collection is usually the most costly and error-prone phase. Respondents might be unavailable, uncooperative, or dishonest, requiring follow-up or replacement.

Analyze the Data

Researchers tabulate data and create summary measures. They calculate averages, dispersions, and use advanced statistical techniques to test hypotheses and strengthen conclusions.

Report Findings

Researchers present their findings, often in a consultative role, translating data into insights and recommendations. Clear, persuasive reports are crucial for effective decision-making.

Take the Decision

Based on the research report, top management makes informed marketing decisions. If unsatisfied with the report, they might discard it and start a new research project.

Identify Marketing Opportunities

Marketing research allows companies to identify gaps in the market, understand consumer needs, and adapt products accordingly. This proactive approach helps in tailoring products or services to meet market demands, thereby increasing the chances of success.

Understand Customer Preferences

By continuously tracking consumer behavior, preferences, and feedback, companies can stay attuned to what their customers want. This knowledge enables businesses to create products and services that align with consumer expectations, fostering customer loyalty and satisfaction.

Inform Marketing Strategies

Data-driven insights from marketing research provide a solid foundation for developing marketing strategies. Companies can create targeted campaigns, choose appropriate marketing channels, and allocate budgets more effectively, leading to better outcomes and higher returns on investment.

Reduce Marketing Risk

Conducting thorough research helps companies avoid costly mistakes. By understanding market conditions, competition, and consumer preferences, businesses can make smart decisions about product launches, market entries, and other strategic moves, minimizing the risk of failure.

Calculate Market Size

Accurate assessment of the market size allows businesses to understand the potential demand for their products or services. This helps in setting realistic sales targets, planning production, and ensuring that resources are allocated efficiently.

Support New Product Launches

Marketing research plays a critical role in testing new products on a smaller scale before a full-scale launch. Feedback gathered during this phase can be used to make necessary adjustments, ensuring that the product meets consumer needs and expectations.

Monitor Market Trends

Keeping an eye on industry trends helps businesses stay ahead of the competition. By identifying emerging trends early, companies can innovate and adapt their offerings to meet changing market conditions, gaining a competitive edge.

Measure Company Position

Marketing research provides valuable insights into a company’s market position and reputation. This information helps management understand how their brand is perceived, identify areas for improvement, and develop strategies to enhance their market presence.

Marketing research can be expensive, especially if it involves hiring external agencies or conducting large-scale studies. Costs can include survey design, data collection, analysis, and reporting. For smaller companies with limited budgets, this can be a significant barrier.

Time-Consuming

Conducting comprehensive marketing research takes time. Designing studies, collecting data, analyzing results, and compiling reports can be a lengthy process. In fast-paced markets, this time investment might delay decision-making and implementation.

Inaccurate Information

Poorly designed research can lead to biased or inaccurate results. Issues such as leading questions, unrepresentative samples, or respondent dishonesty can skew data, leading to incorrect conclusions and misguided decisions.

Rapid Market Changes

The dynamic nature of markets means that research findings can quickly become outdated. What is relevant today may not apply tomorrow, making it challenging to rely solely on past data for future decisions.

Biased Results

Human involvement in research introduces the potential for bias. Researchers’ personal values, attitudes, and prejudices can influence the design and interpretation of studies. Additionally, respondents’ socio-cultural factors can affect their answers, leading to subjective results.

Marketing research is essential for businesses to determine product demand, viability, and performance in the real world. By using primary and secondary data, companies gain unique insights that drive their success and growth. Research and development (R&D) are crucial components of this process, ensuring that companies stay competitive and meet market needs effectively.

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The Pros And Cons Of Market Research

by Hutch | Blog | 0 comments

Customers are at the heart of every marketing campaign. Marketing materials that fail to capture the attention of target customers will fail to lead to profit. Market research can identify which advertising messages are creating unique pain points in potential customers.

Targeted advertising messages can be adjusted to reach the exact individuals most likely to purchase a product or service. By creating customized marketing materials tailored to each customer type, companies can increase their chances of achieving outstanding business success.

This article will help you gather more information about the topic if you’re unfamiliar with market research. You’ll also learn how market research helps a business and what are the downsides of conducting this activity.

What Is Market Research?

Market research is the systematic approach to gather data on potential clients and target markets in an effort to understand them, beginning with who they are. It’s a significant factor in maintaining a competitive advantage and a key ingredient in business strategy.

Market research provides information that’s useful for decision-making and a base of knowledge about how to reach a large audience and build customer loyalty .

There are several ways a company can conduct market research. You can continue reading this to learn about comprehensive research methods. Here are also some of the ways businesses conduct market research:

Field Studies

Field studies rely on consumers’ descriptions of their shopping environment, like eating at a fast-food restaurant or visiting a boutique. Another widely used method is elicitation, where researchers go out into the marketplace and make direct observations of target customers, whether good and bad.

Representative Sampling

Representative sampling is another common type of market research. In this method, researchers randomly choose representative persons from the population; these represent the target consumers. These selected individuals are asked to fill out surveys.

These surveys give researchers valuable insights about buying decisions, such as how buyers decide what products to buy, why they make those decisions, and how much they want to buy.

Focus Groups

Another form of market research uses focus groups. Focus groups are homogenous groups that meet to discuss and exchange ideas. Participants of focus groups may be asked to share their views on a given topic and their overall impressions of a specific product.

These surveys allow researchers to obtain comprehensive information about how and why individual purchases are made and the attitudes and behaviors that guide buying decisions. But, because many purchasers are reluctant to share information, research groups can have low response rates.

Use Of Secondary Information

An alternative to surveys and focus groups is the use of secondary information. Secondary information comes from within the organization itself: from current workers, customers, or competitors. Secondary data can make adjustments to the market research approach that has already been conducted.

Secondary information can show where and how workers, customers, competitors, or other essential factors might have changed if the surveyor had completed the survey differently, for instance.

A straightforward way of collecting this data is to do a survey among your customers or employees. Just email them a link to a   survey form you’ve built on your website  and have them fill it in. A small reward – like a discount for customers, or cash for your workers – can increase response rates significantly.

What Are The Advantages Of Market Research?

Market research is one of the most critical and inevitable factors in every business. Here are ways market research can be beneficial:

Company Growth

Market research helps the company understand, analyze, evaluate, and pinpoint areas with the highest growth potential.

It plays a significant role in understanding consumer behavior or behavioral economics , preferences, buying behavior, and making changes based on the shifting change in all the critical factors of marketing like place, cost, promotion, and product.

With this information, the company can plan its promotion strategies accordingly to achieve its sales targets.

Increases Loyal Customer Base

Marketing research also helps in identifying the customers that have a high probability of increasing sales. This allows the company to build a new strategy to target these customers specifically for further growth.

For instance, it considers how people use a new product or how the current customers are using the product, how the market trends affect the development in terms of sales, how much demand there is for the product in the market, and others.

Development of Effective Marketing Strategies

Apart from analyzing the market trends and consumer behavior, market research also helps plan a marketing strategy. It helps in designing and executing a campaign accordingly that would ultimately help in increasing sales.

It’s also an effective way of understanding the present scenario and the product demands.

It can also provide information on which advertisements or marketing campaigns attracted the most customers and which are the ones that are not as effective. With this information, a business can avoid spending too much on campaigns that aren’t bringing many customers in.

What Are The Disadvantages Of Market Research?

Although market research has some significant advantages for companies, it also has some downsides. Some of the disadvantages of market research include:

One of the main reasons some businesses refuse to conduct market research is that it entails enormous costs. Market research can be intimidating for small companies after knowing all of the tools and processes needed to complete the activities.

It may be cost-effective to research independently, but it won’t benefit them in the long run because they don’t have the tools and strategies to gather essential data.

Targetting A Large Population

One of the challenges for market researchers is the lack of respondents for their studies. Asking people to answer surveys or forms can be tricky. That’s why it’s essential to conduct different strategies to gather as much information as needed for your market research.

Time-Consuming

A small business doesn’t conduct market research because it takes a considerable amount of time. Conducting market research entails a lot of preparation, and the gathering of data should be done extensively.

This is important because when you rush into doing the process, you might not have credible information to help your business.

Market research plays a vital role in businesses. Businesses need to develop a comprehensive understanding of their target market. Market research aims to know how consumers make buying decisions, what factors influence buying decisions, and how to create changes to increase product sales without significantly decreasing service or profit.

There are many methods you can use as part of your marketing research process.

You can ask people to take a survey or interview a focus group. You can also use the Internet, like using social media or Reddit as a marketing resource .

Market research has many advantages. It helps your company grow and become competitive as it finds effective marketing ways to attract more customers. However, market research also comes with a cost. That’s why many smaller businesses avoid conducting this activity because it can be expensive and time-consuming.

As a business owner, it’s essential to weigh out the advantages and disadvantages of doing market research.

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More From Forbes

Market research: an important investment for long-term viability.

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Rick Kelly is the Chief Strategy Officer at Fuel Cycle . His passion is helping brands unlock the power of customer intelligence.

Businesses must future-proof themselves to endure an ever-changing economic landscape. Focusing on creating value both internally and externally through strategic planning is crucial for a brand's long-term success. Companies that prioritize market research as a fundamental function, rather than a mere expense, have a higher likelihood of thriving amid economic uncertainty.

Traditional market research, however, is often neither scalable nor fast and is often detached from decision-making processes. To stay competitive and gather relevant insights, organizations should consider embracing cutting-edge approaches and technological advancements in the market research sector.

The Future Of Market Research And The Role Of Data

Data has transformed the way companies approach future-proofing. Employing the right tools to collect valuable insights is crucial for businesses seeking long-term viability and brand success.

Market research enables businesses to:

1. Better comprehend their target audience's demographics and segment customers effectively.

2. Study competition and recognize market trends.

3. Guide product development and collect feedback from usability testing.

4. Assess the effectiveness of current marketing campaigns.

5. Develop powerful future marketing campaigns.

However, the life cycle of data's value has dramatically decreased. The driving force behind the speed of insights is the realization that if they take too long to generate, they may already be outdated upon arrival. It's essential for organizations to comprehend the context in which data exists, as context helps to inform the adjustments necessary for effective audience engagement.

Companies skimping on insight investment may suffer serious blows to brand perception. In fact, companies that embrace a customer-centric approach are 60% more profitable than companies that don't (pg. 5).

A lack of insights investment creates conflicts between consumer and brand alignment. Customer loyalty plummets— 80% of customers say they're more likely to switch brands after just one bad experience.

Market research leveraging real-time data creates an impact that teams can multiply exponentially through its potential to help organizations identify and address issues, pivot and even change business models.

Integrating Market Research Into Business Strategy

Gathering and utilizing market research data isn't as easy as it sounds. It can present several challenges and limitations that should be considered to maintain a balanced perspective and build trust with customers.

One challenge is the availability and accessibility of accurate data. Finding relevant and up-to-date information can be difficult depending on the industry or target market. Additionally, the quality and reliability of the data sources need to be carefully evaluated to ensure their credibility.

To start with market research, define your objectives and questions. This will guide your research efforts. Conduct an internal analysis of your business, including goals, target market and competition, to develop a research plan aligned with your strategy. Then, explore data collection methods.

Here are some key approaches.

1. Employing Online Communities: Online communities provide an invaluable source of ongoing insights from predetermined customer bases, allowing market researchers to gather the information that informs product development, gauges customer loyalty and drives innovation.

2. Focusing On Speed And Convenience In Online Community Tools: To deliver value for consumers in online communities, ensure that they are user-friendly and efficient, offering comprehensive data analytics tools, advanced qualitative research capabilities and customizable platforms.

3. Fostering Innovation: Market research should strive for continuous improvement by investing in UX research, DIY market research tools and refining AI technologies to enhance market research capabilities, improve customer experience and boost sales.

Embracing A New Mindset For Market Research

It is crucial to shift the perception of market research from an unnecessary expense to an indispensable function. Investments in research are integral to a company's operation, enabling them to identify growth opportunities and outperform competitors.

Traditional market research approaches often fall short in terms of scalability and speed while remaining too disconnected from decision-makers.

To thrive in a rapidly changing landscape, businesses must closely monitor customer sentiment by leveraging comprehensive data gathered from a centralized hub of market research tools, methodologies and intelligent processes that are designed to deliver actionable insights from a single source of truth.

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Secondary Research Advantages, Limitations, and Sources

Summary: secondary research should be a prerequisite to the collection of primary data, but it rarely provides all the answers you need. a thorough evaluation of the secondary data is needed to assess its relevance and accuracy..

5 minutes to read. By author Michaela Mora on January 25, 2022 Topics: Relevant Methods & Tips , Business Strategy , Market Research

Secondary research is based on data already collected for purposes other than the specific problem you have. Secondary research is usually part of exploratory market research designs.

The connection between the specific purpose that originates the research is what differentiates secondary research from primary research. Primary research is designed to address specific problems. However, analysis of available secondary data should be a prerequisite to the collection of primary data.

Advantages of Secondary Research

Secondary data can be faster and cheaper to obtain, depending on the sources you use.

Secondary research can help to:

• Answer certain research questions and test some hypotheses.
• Formulate an appropriate research design (e.g., identify key variables).
• Interpret data from primary research as it can provide some insights into general trends in an industry or product category.
• Understand the competitive landscape.

Limitations of Secondary Research

The usefulness of secondary research tends to be limited often for two main reasons:

Lack of relevance

Secondary research rarely provides all the answers you need. The objectives and methodology used to collect the secondary data may not be appropriate for the problem at hand.

Given that it was designed to find answers to a different problem than yours, you will likely find gaps in answers to your problem. Furthermore, the data collection methods used may not provide the data type needed to support the business decisions you have to make (e.g., qualitative research methods are not appropriate for go/no-go decisions).

Lack of Accuracy

Secondary data may be incomplete and lack accuracy depending on;

• The research design (exploratory, descriptive, causal, primary vs. repackaged secondary data, the analytical plan, etc.)
• Sampling design and sources (target audiences, recruitment methods)
• Data collection method (qualitative and quantitative techniques)
• Analysis point of view (focus and omissions)
• Reporting stages (preliminary, final, peer-reviewed)
• Rate of change in the studied topic (slowly vs. rapidly evolving phenomenon, e.g., adoption of specific technologies).
• Lack of agreement between data sources.

Criteria for Evaluating Secondary Research Data

Before taking the information at face value, you should conduct a thorough evaluation of the secondary data you find using the following criteria:

• Purpose : Understanding why the data was collected and what questions it was trying to answer will tell us how relevant and useful it is since it may or may not be appropriate for your objectives.
• Methodology used to collect the data : Important to understand sources of bias.
• Accuracy of data: Sources of errors may include research design, sampling, data collection, analysis, and reporting.
• When the data was collected : Secondary data may not be current or updated frequently enough for the purpose that you need.
• Content of the data : Understanding the key variables, units of measurement, categories used and analyzed relationships may reveal how useful and relevant it is for your purposes.
• Source reputation : In the era of purposeful misinformation on the Internet, it is important to check the expertise, credibility, reputation, and trustworthiness of the data source.

Secondary Research Data Sources

Compared to primary research, the collection of secondary data can be faster and cheaper to obtain, depending on the sources you use.

Secondary data can come from internal or external sources.

Internal sources of secondary data include ready-to-use data or data that requires further processing available in internal management support systems your company may be using (e.g., invoices, sales transactions, Google Analytics for your website, etc.).

Prior primary qualitative and quantitative research conducted by the company are also common sources of secondary data. They often generate more questions and help formulate new primary research needed.

However, if there are no internal data collection systems yet or prior research, you probably won’t have much usable secondary data at your disposal.

External sources of secondary data include:

• Published materials
• External databases
• Syndicated services.

Published Materials

Published materials can be classified as:

• General business sources: Guides, directories, indexes, and statistical data.
• Government sources: Census data and other government publications.

External Databases

In many industries across a variety of topics, there are private and public databases that can bed accessed online or by downloading data for free, a fixed fee, or a subscription.

These databases can include bibliographic, numeric, full-text, directory, and special-purpose databases. Some public institutions make data collected through various methods, including surveys, available for others to analyze.

Syndicated Services

These services are offered by companies that collect and sell pools of data that have a commercial value and meet shared needs by a number of clients, even if the data is not collected for specific purposes those clients may have.

Syndicated services can be classified based on specific units of measurements (e.g., consumers, households, organizations, etc.).

The data collection methods for these data may include:

• Surveys (Psychographic and Lifestyle, advertising evaluations, general topics)
• Household panels (Purchase and media use)
• Electronic scanner services (volume tracking data, scanner panels, scanner panels with Cable TV)
• Audits (retailers, wholesalers)
• Direct inquiries to institutions
• Clipping services tracking PR for institutions
• Corporate reports

You can spend hours doing research on Google in search of external sources, but this is likely to yield limited insights. Books, articles journals, reports, blogs posts, and videos you may find online are usually analyses and summaries of data from a particular perspective. They may be useful and give you an indication of the type of data used, but they are not the actual data. Whenever possible, you should look at the actual raw data used to draw your own conclusion on its value for your research objectives. You should check professionally gathered secondary research.

Here are some external secondary data sources often used in market research that you may find useful as starting points in your research. Some are free, while others require payment.

• Pew Research Center : Reports about the issues, attitudes, and trends shaping the world. It conducts public opinion polling, demographic research, media content analysis, and other empirical social science research.
• Data.Census.gov : Data dissemination platform to access demographic and economic data from the U.S. Census Bureau.
• Data.gov : The US. government’s open data source with almost 200,00 datasets ranges in topics from health, agriculture, climate, ecosystems, public safety, finance, energy, manufacturing, education, and business.
• Google Scholar : A web search engine that indexes the full text or metadata of scholarly literature across an array of publishing formats and disciplines.
• Google Public Data Explorer : Makes large, public-interest datasets easy to explore, visualize and communicate.
• Google News Archive : Allows users to search historical newspapers and retrieve scanned images of their pages.
• Mckinsey & Company : Articles based on analyses of various industries.
• Statista : Business data platform with data across 170+ industries and 150+ countries.
• Claritas : Syndicated reports on various market segments.
• Mintel : Consumer reports combining exclusive consumer research with other market data and expert analysis.
• MarketResearch.com : Data aggregator with over 350 publishers covering every sector of the economy as well as emerging industries.
• Packaged Facts : Reports based on market research on consumer goods and services industries.
• Dun & Bradstreet : Company directory with business information.

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Benefits and Limitations of Market Research

Do you want to find out about the deficit in your products and marketing strategies? If yes, then market research is the best way to track all the problems and find the right solutions. Apart from established firms, this research is also beneficial for new and smaller business willing to make their mark. Using various business research tools and techniques, you get the correct answers to the required questions. Marketing research or industry research is a technique of gathering, analyzing and presenting all the relevant data about a particular market. It is important to perform such research studies before launching a new product or business.  Businesses can either perform this research on their own or hire professional research firms that do the job for them.

Business Research Techniques and Methods

Industry research is ideal for identifying the segments, competition and trends in the market where you want to launch your product or business. There are two types of market research, namely, primary or field research and secondary or desk research. Both these types of are crucial steps of this intricate process of collecting all the essential market data and systematically analyzing it for relevant answers. Both these types are further divided into various subtypes and methods like surveys, focal groups, personal interviews, field trials, etc. that are used as and when required.

Benefits of Market Research

Accuracy is the biggest advantage of these research reports. When performed by a professional market research firm result of your report is accurate, in depth and to-the-point. Following are the basic advantages of business research:

• —  Provides crucial customer feedback
• —  Guides communication with current and potential customers
• —  Measures reputation and brand value
• —  Guides to establish market positioning
• —  Helps minimizing risks
• —  Helps identify opportunities
• —  Helps identify competition
• —  Helps identify potential problems
• —  Helps determine the most persuasive promise of the brand

Limitations of Market Research

• —  Difficulty to avoid groupthink mentality and bring about neutral results.
• —  Limited resources for in-house research can hamper effectiveness and accuracy.
• —  Centralized research brings geographical difficulties and limitations for detailed research.

General observation shows that limitations of business research are apparent in the in-house or internal research projects. When a market research company collects the data, the results are highly accurate, resourceful and thorough.

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Marketing research: concept, objective, advantages and limitations.

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Marketing Research: Concept, Objective, Advantages and Limitations!

The marketing concept states that the character of the marketing orientated organisation, whether product or service based, profit or non-profit based, is the identification and true delivery of consumers’ needs and wants, more effectively and efficiently than the competition.

Hence, in a broad sense, marketing management needs to understand the minds of their target markets, their attitudes, feelings, beliefs and value systems. They require a formalised, managerial approach to this most important job. And this entire job is the basic role and purpose of formal marketing research. Marketing research is the systematic, objective and exhaustive search for study of the facts relating to any problem in the field of marketing. It is systematic problem analysis, model building and fact-finding for the purpose of decision-making and control in the marketing of goods and services.

According to American Marketing Association “marketing research is the systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services.” According to Green and Tull, “marketing research is the systematic and objective search for and analysis of information relevant to the identification and solution of any problem in the field of marketing”. Professor Philip Kotler defines marketing research as “Systematic problem analysis, model-building and fact-finding for the purpose of improved decision making and control in the marketing of goods and services.”

The features of marketing research are:

1. Search for data:

It is a search for data which are relevant to marketing problems – problems in different functional areas of marketing consumer behaviour, product, sales, distribution channel, pricing, ad and physical distribution.

2. It is systematic:

It has to be carried out in a systematic manner rather than haphazard way. The whole process should be planned with a clear objective.

3. It should be objective:

Objectivity is more important in any result. It means that the research is neither carried on to establish an opinion nor is intentionally slanted towards pre-determined results.

4. It is a process:

It involves various steps for gathering, recording and analysing of data.

Objectives of Marketing Research:

Marketing research may be conducted for different purposes. The main objectives or purposes of marketing research are:

i) To estimate the potential market for a new product to be introduced in the market.

ii) To know the reactions of the consumers to a product already existing in the market.

iii) To find out the general market conditions and tendencies.

iv) To know the reasons for failure of a product already in the market.

v) To find out the better methods of distributing the products to consumers.

vi) To know the types of consumers buying a product and their buying motives to know their opinions about the product and to get their suggestion improvement of a product.

vii) To assess the strength and weakness of the competitors.

viii) To know the dimensions of the marketing problems.

ix) To ascertain the distribution methods suited to the product and the

x) To estimate the market share of a firm.

xi) To assess the probable sales volume of a firm.

xii) To assess the reaction of the consumers to the packaging of the firm and to make packaging as attractive as possible.

Limitations of Marketing Research:

1. It is not a Panacea:

Marketing Research is not the ultimate solution to all marketing problems. Rather it offers accurate information, which can arrive at suitable decisions to solve problem.

2. Not an exact science:

It deals with human behaviour and as such cannot be examined in a controlled environment. There are various and uncontrollable factors which influence marketing forces. This gives scope for wrong conclusions. Hence this leads to marketing research as not being an exact science.

3. Limitation of time:

Its process is lengthy and needs long time to complete it. During the period between starting the research and implementation of decisions, the situation and assumptions may have changed drastically which reduces the utility of research report. Decisions based on such report prove to be obsolete and result in false conclusions.

4. Erroneous findings:

The complicated problems may not be comprehensively studied and their impact properly analysed by the researcher on account of insufficient fund, time and technique. This leads to erroneous findings, which disappoint the management.

5. Not an exact tool of forecasting:

It cannot be used as a foolproof tool of forecasting because there are number of intervening factors between the findings of the research and marketing complex. The forces act and react and interact to give a complex state, which is difficult to be studied.

6. In experienced research staff:

It needs great expertise and well-trained and experienced researcher, interviewer and investigator.

7. Narrow Conception:

Marketing research is a fact-finding exercise. It is not problem oriented. It is of low and questionable validity.

8. Involves high cost:

It is considered as a luxury for the management as it involves high cost.

9. Limitations of tools and techniques:

The validity of marketing research is also limited by the limitation of tools and techniques involved.

10. It is passive:

Its use and effectiveness largely depends upon the ability of executives to get the most value of it.

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Marketing Research

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20 Advantages and Disadvantages of Survey Research

Survey research is a critical component of measurement and applied social research. It is a broad area that encompasses many procedures that involve asking questions to specific respondents.

A survey can be anything from a short feedback form to intensive, in-depth interviews that attempt to gather specific data about situations, events, or circumstances. Although there are several methods of application that researchers can apply using this tool, you can divide surveys into two generic categories: interviews and questionnaires.

Innovations in this area in recent years allow for advanced software solutions to provide more data to researchers because of the availability of online and mobile surveys. That means the people who are in the most challenging places to reach can still provide feedback on critical ideas, services, or solutions.

Several survey research advantages and disadvantages exist, so reviewing each critical point is necessary to determine if there is value in using this approach for your next project.

List of the Advantages of Survey Research

1. It is an inexpensive method of conducting research. Surveys are one of the most inexpensive methods of gathering quantitative data that is currently available. Some questionnaires can be self-administered, making it a possibility to avoid in-person interviews. That means you have access to a massive level of information from a large demographic in a relatively short time. You can place this option on your website, email it to individuals, or post it on social media profile.

Some of these methods have no financial cost at all, relying on personal efforts to post and collect the information. Robust targeting is necessary to ensure that the highest possible response rate becomes available to create a more accurate result.

2. Surveys are a practical solution for data gathering. Surveys or a practical way to gather information about something specific. You can target them to a demographic of your choice or manage them in several different ways. It is up to you to determine what questions get asked and in what format. You can use polls, questionnaires, quizzes, open-ended questions, and multiple-choice to collect info in real-time situations so that the feedback is immediately useful.

3. It is a fast way to get the results that you need. Surveys provide fast and comfortable results because of today’s mobile and online tools. It is not unusual for this method of data collection to generate results in as little as one day, and sometimes it can be even less than that depending on the scale and reach of your questions. You no longer need to wait for another company to deliver the solutions that you need because these questionnaires give you insights immediately. That means you can start making decisions in the shortest amount of time possible.

4. Surveys provide opportunities for scalability. A well-constructed survey allows you to gather data from an audience of any size. You can distribute your questions to anyone in the world today because of the reach of the Internet. All you need to do is send them a link to the page where you solicit information from them. This process can be done automatically, allowing companies to increase the efficiency of their customer onboarding processes.

Marketers can also use surveys as a way to create lead nurturing campaigns. Scientific research gains a benefit through this process as well because it can generate social insights at a personal level that other methods are unable to achieve.

5. It allows for data to come from multiple sources at once. When you construct a survey to meet the needs of a demographic, then you have the ability to use multiple data points collected from various geographic locations. There are fewer barriers in place today with this method than ever before because of the online access we have around the world.

Some challenges do exist because of this benefit, namely because of the cultural differences that exist between different countries. If you conduct a global survey, then you will want to review all of the questions to ensure that an offense is not unintentionally given.

6. Surveys give you the opportunity to compare results. After researchers quantify the information collected from surveys, the data can be used to compare and contrast the results from other research efforts. This benefit makes it possible to use the info to measure change. That means a questionnaire that goes out every month or each year becomes more valuable over time.

When you can gather a significant amount of data, then the picture you are trying to interpret will become much clearer. Surveys provide the capability of generating new strategies or identifying new trends to create more opportunities.

7. It offers a straightforward analysis and visualization of the data. Most surveys are quantitative by design. This process allows for the advantage of a straightforward analysis process so that the results can be quickly visualized. That means a data scientist doesn’t need to be available to start the work of interpreting the results. You can take advantage of third-party software tools that can turn this info into usable reports, charts, and tables to facilitate the presentation efforts.

8. Survey respondents can stay anonymous with this research approach. If you choose to use online or email surveys, then there is a fantastic opportunity to allow respondents to remain anonymous. Complete invisibility is also possible with postal questionnaires, allowing researchers to maximize the levels of comfort available to the individuals who offer answers. Even a phone conversation doesn’t require a face-to-face meeting, creating this unique benefit.

When people have confidence in the idea that their responses will not be directly associated with their reputation, then researchers have an opportunity to collect information with greater accuracy.

9. It is a research tool with fewer time constraints. Surveys have fewer time limits associated with them when compared to other research methods. There is no one on the other end of an email or postal questionnaire that wants an immediate answer. That means a respondent can take additional time to complete each answer in the most comfortable way possible. This benefit is another way to encourage more honesty within the results since having a researcher presence can often lead to socially desirable answers.

10. Surveys can cover every component of any topic. Another critical advantage that surveys provide is the ability to ask as many questions as you want. There is a benefit in keeping an individual questionnaire short because a respondent may find a lengthy process to be frustrating. The best results typically come when you can create an experience that involves 10 or fewer questions.

Since this is a low-cost solution for gathering data, there is no harm in creating multiple surveys that have an easy mode of delivery. This benefit gives you the option to cover as many sub-topics as possible so that you can build a complete profile of almost any subject matter.

List of the Disadvantages of Survey Research

1. There is always a risk that people will provide dishonest answers. The risk of receiving a dishonest answer is lower when you use anonymous surveys, but it does not disappear entirely. Some people want to help researchers come to whatever specific conclusion they think the process is pursuing. There is also a level of social desirability bias that creeps into the data based on the interactions that respondents have with questionnaires. You can avoid some of this disadvantage by assuring individuals that their privacy is a top priority and that the process you use prevents personal information leaks, but you can’t stop this problem 100% of the time.

2. You might discover that some questions don’t get answers. If you decide to use a survey to gather information, then there is a risk that some questions will be left unanswered or ignored. If some questions are not required, then respondents might choose not to answer them. An easy way to get around this disadvantage is to use an online solution that makes answering questions a required component of each step. Then make sure that your survey stays short and to the point to avoid having people abandon the process altogether.

3. There can be differences in how people understand the survey questions. There can be a lot of information that gets lost in translation when researchers opt to use a survey instead of other research methods. When there is not someone available to explain a questionnaire entirely, then the results can be somewhat subjective. You must give everyone an opportunity to have some understanding of the process so that you can encourage accurate answers.

It is not unusual to have respondents struggle to grasp the meaning of some questions, even though the text might seem clear to the people who created it. Whenever miscommunication is part of the survey process, the results will skew in unintended directions. The only way to avoid this problem is to make the questions as simple as possible.

4. Surveys struggle to convey emotions with the achievable results. A survey does not do a good job of capturing a person’s emotional response to the questions then counter. The only way to gather this information is to have an in-person interview with every respondent. Facial expressions and other forms of body language can add subtlety to a conversation that isn’t possible when someone is filling out an online questionnaire.

Some researchers get stuck trying to interpret feelings in the data they receive. A sliding-scale response that includes various levels of agreement or disagreement can try to replicate the concept of emotion, but it isn’t quite the same as being in the same room as someone. Assertion and strength will always be better information-gathering tools than multiple-choice questions.

5. Some answers can be challenging to classify. Surveys produce a lot of data because of their nature. You can tabulate multiple-choice questions, graph agreement or disagreement in specific areas, or create open-ended questions that can be challenging to analyze. Individualized answers can create a lot of useful information, but they can also provide you with data that cannot be quantified. If you incorporate several questions of this nature into a questionnaire, then it will take a long time to analyze what you received.

Only 10% of the questions on the survey should have an open-ended structure. If the questions are confusing or bothersome, then you might find that the information you must manually review is mostly meaningless.

6. You must remove someone with a hidden agenda as soon as possible. Respondent bias can be a problem in any research type. Participants in your survey could have an interest in your idea, service, or product. Others might find themselves being influenced to participate because of the subject material found in your questionnaire. These issues can lead to inaccurate data gathering because it generates an imbalance of respondents who either see the process as overly positive or negative.

This disadvantage of survey research can be avoided by using effective pre-screening tools that use indirect questions that identify this bias.

7. Surveys don’t provide the same level of personalization. Any marketing effort will feel impersonal unless you take the time to customize the process. Because the information you want to collect on a questionnaire is generic by nature, it can be challenging to generate any interest in this activity because there is no value promised to the respondent. Some people can be put off by the idea of filling out a generic form, leading them to abandon the process.

This issue is especially difficult when your survey is taken voluntarily online, regardless of an email subscription or recent purchase.

8. Some respondents will choose answers before reading the questions. Every researcher hopes that respondents will provide conscientious responses to the questions offered in a survey. The problem here is that there is no way to know if the person filling out the questionnaire really understood the content provided to them. You don’t even have a guarantee that the individual read the question thoroughly before offering a response.

There are times when answers are chosen before someone fully reads the question and all of the answers. Some respondents skip through questions or make instant choices without reading the content at all. Because you have no way to know when this issue occurs, there will always be a measure of error in the collected data.

9. Accessibility issues can impact some surveys. A lack of accessibility is always a threat that researchers face when using surveys. This option might be unsuitable for individuals who have a visual or hearing impairment. Literacy is often necessary to complete this process. These issues should come under consideration during the planning stages of the research project to avoid this potential disadvantage. Then make the effort to choose a platform that has the accessibility options you need already built into it.

10. Survey fatigue can be a real issue that some respondents face. There are two issues that manifest themselves because of this disadvantage. The first problem occurs before someone even encounters your questionnaire. Because they feel overwhelmed by the growing number of requests for information, a respondent is automatically less inclined to participate in a research project. That results in a lower overall response rate.

Then there is the problem of fatigue that happens while taking a survey. This issue occurs when someone feels like the questionnaire is too long or contains questions that seem irrelevant. You can tell when this problem happens because a low completion rate is the result. Try to make the process as easy as possible to avoid the issues with this disadvantage.

Surveys sometimes have a poor reputation. Researchers have seen response rates decline because this method of data gathering has become unpopular since the 1990s. Part of the reason for this perception is due to the fact that everyone tries to use it online since it is a low-cost way to collect information for decision-making purposes.

That’s why researchers are moving toward a rewards-based system to encourage higher participation and completion rates. The most obvious way to facilitate this behavior is to offer something tangible, such as a gift card or a contest entry. You can generate more responses by creating an anonymous process that encourages direct and honest answers.

These survey research advantages and disadvantages prove that this process isn’t as easy as it might see from the outside. Until you sit down to start writing the questions, you may not entirely know where you want to take this data collection effort. By incorporating the critical points above, you can begin to craft questions in a way that encourages the completion of the activity.

The Role of Technology and New Equipment in the Sales Performance of SMEs: An Empirical Research in Emerging Country

• Published: 10 September 2024

Cite this article

• Phi-Hung Nguyen   ORCID: orcid.org/0000-0003-3372-8287 1 ,
• Lin Hsu-Hao 2 &
• Lan-Anh Thi Nguyen 1  

Technology has recently become a competitive advantage to firms in severe competition in creating new products, higher working environment quality, and more outstanding customer response capabilities. Thus, this study avails the phenomenon to consider whether technology can foster sales performance. To deeply analyze the relationship, we perform (i) an analysis of the technological adoption and sales performance during the period and (ii) an in-depth exploration of whether new equipment can fortify the sales performance when along with technology. The study is conducted as a contributor to the Technology-Organization-Environment framework for all these purposes. The research is based on the aggregation of 3494 samples collected from the Vietnamese Small and Medium Enterprises (SMEs) survey, implemented biennially between 2011 and 2015. So far, the results indicate that technology does wonders in the efficient sales performance of SMEs in general. In detail, the effectiveness of technology is accentuated in larger firm sizes, while small and medium enterprises can only be assured of taking the opportunity to apply new technology since it does not harm sales effectiveness. However, it seems to have no effects when it comes to new equipment, even when the firm can benefit from applying new technology in all firm sizes. In this study, technology is a phenomenon in fostering most enterprises’ operations without doubts; hence, the practitioners and researchers only need to take more insight research based on their firm and market characteristics to apply the proposed results fully. We also bring out even more in-depth to see how the new equipment and new technology affect the sales performance along different regression models, which aims to heighten the accuracy of the results in different aspects. Nevertheless, the study’s limitations remain the data time-scope problem, which is not up-to-date, as well as the economic scale on which the study takes place.

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Nguyen, PH., Hsu-Hao, L. & Nguyen, LA.T. The Role of Technology and New Equipment in the Sales Performance of SMEs: An Empirical Research in Emerging Country. J Knowl Econ (2024). https://doi.org/10.1007/s13132-024-02208-0

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What Happens to Your Body When You Eat Walnuts Every Day

If you're not already a walnut super fan, buckle up. You're about to go nuts for this nut.

Elizabeth Shaw is a nationally known nutrition expert, four time cookbook author, freelance writer, and pioneer in the field of fertility nutrition. Commonly referred to as "Shaw Simple Swaps", she is the president and owner of the USA based nutrition communications and consulting firm. Elizabeth has been in the field of nutrition for over 18 years, has served as an adjunct professor, and is a certified personal trainer.

Walnut Nutrition

Health benefits of walnuts, tips for including walnuts in a healthy diet.

It's no secret that walnuts have been highlighted thanks to the evolving research that continues to show their numerous health benefits. From heart and gut health to cognition, walnuts' powers seem to positively affect numerous areas of our health. Even the 2020-2025 Dietary Guidelines for Americans highlighted that nuts like walnuts should be included in the diets of adults and kids alike due to their stellar nutrient profile.

Since science continues to explore what this nut can do, nutrition experts are sharing the latest and greatest health benefits of walnuts below (with some tasty tips on how to enjoy them).

Walnuts are filled with good-for-you unsaturated fats, like omega-3 fatty acids , that have shown promise in reducing inflammation and supporting heart health, cognition and mental health. But that's not all these tasty nuts are good for. Here's the nutrient profile just a 1-ounce serving of walnuts provides:

• Calories : 185
• Total Fat : 18.5g
• Saturated Fat : 2g
• Cholesterol : 0mg
• Sodium : 1mg
• Total Carbohydrates : 4g
• Dietary Fiber : 2g
• Total Sugar : 1g
• Added Sugar : 0g
• Protein : 4g
• Vitamin D : 0mcg
• Calcium : 28mg
• Potassium : 125mg

Walnuts have shown promise in heart health for years thanks to their antioxidant content, but emerging research suggests eating this nut may help bridge nutrient gaps among adults and kids alike. Other research supports their benefits for gut health, memory, mood, blood sugar, reproductive health benefits and more. Read on to get the full scoop.

Supports Heart Health

While most nuts are considered heart-healthy, walnuts are Heart-Check Certified by the American Heart Association, meaning they meet the organization's criteria for being a "heart-healthy food." This includes being low in sodium, saturated fat and trans fat and containing at least 10% of the Daily Value for vitamins A and C, iron, calcium, protein or dietary fiber.

Heart-healthy foods can positively impact your lipid panel, meaning they often help decrease the "bad cholesterol" , like LDL (low-density lipoprotein) cholesterol. And the research supports this. Not only do decades of research show the heart-health benefits of walnuts, but newer research echoes these findings. A 2021 study published in Circulation found that older adults who consumed about two servings of walnuts a day for two years lowered their LDL cholesterol levels. High LDL cholesterol levels can lead to atherosclerosis, which is plaque buildup in your blood vessels that can increase the risk for stroke or heart attack over time. New York-based registered dietitian Samina Kalloo, RDN, CDN , shares, "Walnuts' rich polyphenol content fights (this type of) inflammation and oxidative stress."

May Improve Gut Health

The latest research surrounding gut health has shown just how trendy this nut is when it comes to the world of biotics, prebiotics to be exact. A 2023 review published in Antioxidants shared that walnuts have the potential to act as a prebiotic by serving as a source of "food" for the beneficial microbes in your gastrointestinal system. While more research is needed in this area, the findings suggest that consuming walnuts as part of a healthy diet may help lower inflammation and support gut health. Since we do know that prebiotics help nourish probiotics that then confer positive benefits on the host (aka you), this research reinforces the beneficial properties of walnuts linked to their polyphenol content. Walnut polyphenols are metabolized by gut microbiota to create bioactive, anti-inflammatory compounds. And adding more walnuts to your diet can help you reap these benefits for your digestive health.

Helps Improve Memory and Cognitive Health

Thanks in large part to their omega-3 fatty acid content, "Walnuts contain nutrients that have antioxidant and anti-inflammatory effects which can [help] combat oxidative stress and ultimately delay or reduce the progression of cognitive decline", shares Kalloo. Research—both animal and human—reported in a 2020 study published in Nutrients showed that consuming walnuts had positive effects on memory and brain functioning. Snacking on a serving (or two) of this brain-shape nut may be the trick to reducing inflammation and keeping those free radicals at bay. This is important since free radicals can damage cells and lead to diseases like Alzheimer's disease and dementia over time.

Promotes Diet Quality Among Adults and Kids Alike

New research published in 2023 in the journal Nutrients found that adding just a small handful of walnuts to the diet of children, adolescents and adults increased the consumption of better-for-you fats and under-consumed nutrients like potassium, magnesium, fiber and folate. "What's interesting about this study," shares culinary dietitian and cookbook author Wendy Jo Peterson, M.S., RDN , "is that Americans are constantly being told what they need to nix from their diet to be healthier. This study showed that a simple addition to one's diet may not only help bridge nutrient gaps, but also help families across the board increase their intakes of plant-based foods as well."

May Reduce Stress and Improve Mental Health

"Walnuts are rich in neuro-supportive compounds including melatonin, folate, vitamin E and polyphenols—all of which can be beneficial for mental health," shares Kalloo. A 2022 study published in Nutrients revealed that eating about two servings of walnuts a day for 16 weeks improved self-reported levels of stress and depression, aided in a longer period of sleep, and improved overall mental health. Plus, their results found that consuming walnuts led to improvements in the microbiome as well.

May Help Manage Blood Sugar

"The combination of protein, fiber and healthy fats in walnuts can help to stabilize blood sugar levels," shares Kalloo. This can be especially important when it comes to management of type 2 diabetes. A 2023 review published in Nutrients showed that a higher total intake of nuts, including walnuts, was associated with a reduced risk for type 2 diabetes. It's also important to remember one's risk for heart disease and other conditions increases with diabetes. Grabbing walnuts is a great way to reap the benefits of the omega-3s that can help improve heart health, too.

A great way to make it easier to eat more walnuts is by simply having them on hand. Be sure to add both roasted and raw walnuts to your kitchen staples, and consider trying them out in these nutritious and delicious ways that Kalloo and Peterson recommend:

• Toss a handful of walnuts into salad as a swap for croutons, or use them to top a veggie stir-fry.
• Fold chopped walnuts into the batter of pancakes, muffins or quick breads for the added health benefits.
• Mix chopped walnuts into unsweetened yogurt or your morning oatmeal and add fresh fruit for natural sweetness.
• If you are looking to cut back on your meat consumption, Peterson suggests swapping roughly chopped walnuts for ½ pound of ground beef in chili, tacos or spaghetti sauce. Our Celeriac and Walnut Tacos are a great place to start.
• Crush walnuts and swap them for traditional breadcrumbs in recipes like our Walnut-Rosemary Crusted Salmon .

The Bottom Line

Unless you have a food allergy or intolerance to walnuts, nutrition experts advise including this stellar nut in your regular eating pattern. From recent research highlighting the role walnuts play in gut health to the long-standing reviews that show heart health, cognitive health and mood benefits, there are many positives to consuming this nut. If you're adjusting to the walnut-y taste, consider trying it with familiar favorites like these Classic Fudge Walnut Brownies or a simple side like our Blue Cheese-Walnut Green Beans .

Read Next: Are Nuts Good For You?

Frequently Asked Questions

A serving of walnuts is roughly 1 ounce, or about ¼ cup. However, some studies suggest eating 1.5 to 2 ounces may be beneficial to reap the health benefits walnuts offer. With this in mind, and considering walnuts are calorically dense, Kalloo recommends aiming for a handful daily to reap their many health benefits.

Eating walnuts on a daily basis poses little to no harm unless you have a food sensitivity, intolerance or allergy. With that said, replacing less nutrient-dense foods with nutrient-dense options, like walnuts, may help you achieve your health goals. Who knows, you may experience a boost in your mood, too.

While other nuts like almonds, hazelnuts and pistachios have shown promising results in memory improvements in the literature , walnuts continue to reign supreme when it comes to cognitive health. A 2020 review published in Nutrients shows that the inclusion of walnuts in a diet positively affects cognitive performance and memory improvement in adults.

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What is BANT? The Way to Qualify Better Leads and Close More Deals

Learn how to use this framework to find the leads most likely to convert.

Gabie Caballero

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For sales pros and their companies, time is money. Time spent on a lead who isn’t a good fit means less time for prospects who are more likely to close. To help salespeople spend their time more effectively and bring in more qualified leads, some companies turn to a framework such as BANT.

We’ll unpack this framework — including its benefits and challenges — and show you how to apply it to your sales process to maximize the time you spend on qualified leads and close more deals.

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What is bant, benefits of using bant for lead qualification, challenges and limitations of bant, how to apply the bant sales framework (with examples), 16 bant questions to ask your prospects, level up your game with ai conversation insights.

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BANT is a lead qualification framework that helps salespeople determine whether a potential customer is a good fit for their product or service. BANT qualification involves looking at a lead through the lens of four main categories to weigh how likely they are to convert. First developed in the 1950s, this framework has been widely adopted by many sales organizations to evaluate and qualify leads.

What does BANT stand for?

The acronym BANT — budget, authority, need, and timeline — represents four categories used to evaluate a lead:

• Budget : Does the prospect have the financial resources to afford your offering?
• Authority : Who at the company makes buying decisions?
• Need : Does the prospect have a problem your product or service can solve?
• Timeline : What is the timeframe for the prospect’s purchasing decision?

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BANT is a classic approach that remains popular for good reason. Some of the benefits sales teams can expect with BANT include:

• Improved lead qualification: BANT helps salespeople identify high-quality leads that have a strong chance of converting.
• Increased sales efficiency : With less time wasted on unqualified prospects, salespeople can focus more on closing deals — working smarter, not harder.
• Better decision-making : BANT helps you make more informed decisions about which leads to pursue, based on factors that impact their likelihood of closing.
• More strategic conversations: By encouraging salespeople to have conversations with each prospect about their unique situation and what factors will impact their decision, BANT helps reps prioritize relevant leads. It also gives them valuable information to tailor their pitch effectively.

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While BANT is a good choice for many businesses, it does have some drawbacks:

• It’s transaction-focused: The focus on transactional details such as budget and timeline could lead salespeople to neglect a deeper understanding of the buyer’s needs and pain points. If you’re not careful, it can lead to a sales pitch that feels generic and doesn’t resonate with prospects.
• It can discourage relationship building : If reps treat BANT like a rigid checklist or a script they must adhere to, they’ll have a hard time building rapport and trust with prospects. Instead, they should strive to be personal, natural, and genuine.
• It emphasizes needs prospects already recognize: BANT focuses on solving a problem prospects already understand and are actively seeking a solution for. But it doesn’t lend itself to tackling underlying issues. This could mean missed opportunities to educate prospects about challenges they haven’t recognized yet.
• It’s not great for long, complex cycles: BANT tends to focus on a single decision-maker and clear time frame. That can be too simplistic for complex B2B (business-to-business) sales cycles that involve multiple stakeholders and an unpredictable timeline.

BANT is a good starting point for establishing how to qualify sales leads — but how you apply it will affect its success. In my experience, a few main steps are important for using it effectively:

• Define your ideal customer profile: The point of BANT is to focus on customers who are a good fit. That starts with clearly outlining the characteristics of your ideal customer — known as a buyer persona . Once you have this in place, your sales team can seek out and identify prospects who match.
• Train sales teams : For BANT to work, your sales team must understand how to research leads and ask qualifying questions effectively. I recommend conducting regular sales coaching sessions with role-playing exercises to help reps hone their BANT questioning skills and navigate different sales scenarios.
• Develop qualification questions: Crafting a list of BANT questions for your sales team to use can make their job a little easier. It’s important to ask open-ended questions, so you get more useful answers about a prospect’s pain points and desired outcomes than a basic “yes” or “no.” I’ve shared some examples below to help you get started.
• Practice active listening: You don’t want to run through questions just to check a box. It’s important to approach conversations with prospects with the desire to actually learn about their situation and pain points. Pay close attention to their answers and ask clarifying follow-up questions.
• Track and analyze: Monitor how applying BANT affects your lead qualifications and sales performance. Consider using sales software and a customer relationship management (CRM) system to track and analyze sales data so you can measure BANT success and look for opportunities to improve how you apply it.

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Having a list of BANT questions prepared can make applying BANT easier on salespeople. But it’s important to treat these questions as a starting point, not a rigid script. Let them guide conversations but leave room for flexibility to tailor your approach to each prospect’s unique situation.

To give you an idea of what open-ended BANT questions look like, here are some good examples:

To determine whether a prospect has enough budget for your solution, some good questions to ask include:

• Can you walk me through your typical budgeting process for solving challenges like this one?
• What is the typical price range you consider for this type of tool?
• Do you have any existing budget allocated for addressing this issue?
• Considering the potential impact of solving this challenge, what kind of budget do you think would be appropriate?

What to look for: If a prospect’s answers don’t line up with the typical costs of your products or services, that’s a sign they’re not a good fit.

To clarify who in the organization will be involved in making the purchasing decision, I recommend questions like these:

• Who will be the primary decision-maker for implementing a solution like ours?
• Are there any other key stakeholders involved in the decision-making process?
• What typically goes into your evaluation process for solutions like this?
• Once you’ve identified a potential solution, what are the next steps in your decision-making process?

What to look for: If the prospect doesn’t have spending authority, you likely need to bring in the person who does.

To find out whether your prospect’s organization is facing the kinds of problems your product or services help solve, ask these questions:

• Can you tell me more about the specific challenges you’re facing with your current process or situation?
• What’s the impact of these challenges on your business?
• What does success look like for you?
• How would a successful solution affect your key performance indicators (KPIs)?

What to look for: Their answers will help you make sure the prospect is a good fit for your offerings. But just as important, what you learn will help you tailor your pitch to the problems you’re most suited to solve.

To determine how long the sales process is likely to be with a prospect, these are some good questions:

• Do you have a specific time frame in mind for deciding on a solution?
• Are there upcoming milestones or deadlines that might influence your timeline?
• If we can demonstrate how our solution effectively addresses your needs, what are the next steps in the process?
• Is there anything else you’d like to see from us in the next few weeks to help you move forward?

What to look for: How your prospect responds will help you understand how long their decision-making process is expected to take. It can also reveal clues about what else they’re looking for in a solution that you may not have addressed yet.

Remember, these are just examples. The best BANT questions will be tailored to your specific product and the prospect’s situation.

Choose your path to better leads

The BANT framework is an easy methodology to adopt and put into practice. Its elements are straightforward, making it simple for reps to understand and follow, regardless of their skills or experience. Additionally, it’s quick and efficient. Reps can determine the best prospects to pursue as fast as possible and save time by eliminating those less likely to buy. But, with less focus on relationship building and complex sales cycles, BANT isn’t a one-size-fits all lead qualification strategy. Consider your goals when choosing the best framework for you. And know that you can pick and choose elements from multiple lead qualification methodologies to help you get there.

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Gabie is a 5x Salesforce Certified Professional and a Triple Star Trailhead Ranger with over 13 years of experience in Salesforce administration, CRM, user adoption, and training. She is currently the Lead Salesforce Enablement Program Manager at UKG, a leading cloud-based provider of human capital ... Read More management solutions.

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New developments in renewable energy are making headlines and inspiring hope in communities worldwide, from a remote Arctic village working to harness solar and wind power under challenging conditions to a U.S. Air Force base planning an advanced, utility-scale geothermal power system.

As much of the world grapples with mitigating the effects of climate change and global warming, innovation and advancements in renewable energy have emerged as a bright spot. Solar energy, wind energy, hydropower, geothermal energy and biomass energy generation is better for the planet than the burning of fossil fuels including oil, natural gas and coal.

But for all of the advantages of renewable energy, its development and use has disadvantages, too. Let’s take a look at both.

The advantages of renewable energy power sources are wide-ranging, and some are more obvious than others.

Inexhaustible supply

One of the main benefits of renewable energy sources like the sun, wind and water is that they will never run out. In contrast, non-renewable resources are not only finite, but cost more as their availability declines and require more extreme extraction methods with greater environmental impacts.

Carbon-free energy generation

The goal of the clean energy transition is decarbonization . Carbon dioxide emissions reached 11.2 gigatonnes (Gt) in 2022 from oil alone, whereas renewable energy generation emits little to no carbon emissions to power homes, cars and businesses.

A cleaner, healthier environment

The burning of fossil fuels, like coal, releases airborne pollutants such as nitrogen oxide and sulfur dioxide, while the mining of these resources can result in water pollution and damage animal habitats. Using renewable energy in place of fossil fuels can reduce these pollutants and help mitigate risks to human health and natural environments.

Energy independence

Renewable energy provides for stronger energy security by opening up new opportunities for domestic energy production, thereby reducing reliance on foreign-sourced energy supply. For example, since Russia’s invasion of Ukraine, European countries have sought to reduce their imports of Russian oil and gas. In 2023, domestic renewable energy production in Europe rose to account for a record 44% of the EU’s electricity mix while imports from Russia declined, helping build a more stable, resilient power grid.

Less maintenance

For certain types of renewable energy sources, the maintenance and maintenance costs of their infrastructure are minimal. Solar photovoltaic systems, for example, generally don’t have moving parts and can last 25 years or more with little maintenance. Hydroelectric power plants typically have low operating costs and require little maintenance as well, with long-lasting equipment that can remain in operation for decades.

Affordable energy

When it comes to costs, renewable energy sources once compared unfavorably to fossil fuels. But as fossil fuel prices rise renewable energy has emerged as an affordable alternative energy option. An estimated 96% of new utility-scale solar and wind power projects had lower generation costs than new coal and natural gas plants. As more renewable energy resources are integrated into power grids, businesses are also implementing energy management programs to optimize energy usage and reduce overall energy costs.

Job creation

While both clean energy and fossil fuel industries have seen job growth in recent years, growth has been markedly faster in the former. As a result, clean energy roles now account for more than half of the 67 million jobs in the global energy sector. Such growth is fueling demand for additional workers and retraining for existing fossil fuel workers to transition to the renewable energy industry.

For all the celebrated benefits of renewable energy, the sector has some downsides as well. Understanding the disadvantages of renewable energy can help organizations better plan its deployment. Here are some of the cons of renewable energy projects today:

High upfront costs

Shifting to renewable energy technologies saves money in the long run but component costs and initial costs for set-up can be expensive. For example, small businesses can expect to pay USD 100,000 or more for commercial solar installations, depending on their energy needs. However, legislation for incentives, tax credits and various rebates can help offset these costs.

Location and landmass requirements

Most renewable energy power generation is location dependent—solar farms require unobstructed sunlight, hydropower requires water movement, wind farms require open spaces and traditional geothermal power requires proximity to sources of hot water. In many cases, renewable energy systems require a lot of space—more than traditional power stations. Research conducted by the ICF Climate Center found that large-scale renewable energy installations require 10 times more land than coal- and natural gas-fired power plants.

Production volatility

Renewable electricity generation is vulnerable to weather conditions: solar power is susceptible to cloudy days, hydropower to droughts and wind power to calm days. As such, guaranteeing the amount of energy produced at any given time is a challenge. To help companies adapt to this volatility, solutions like the IBM Environmental Intelligence Suite use sensors, geospatial data , advanced analytics, machine learning , artificial intelligence (AI) and weather data to generate day-ahead wind and solar forecasts .

Storage requirements

Due to the intermittent nature of renewable power, batteries are required to collect energy during peak production periods for distribution in a controlled, consistent manner during periods of low- to non-production. Energy storage systems to support utility-scale applications are costly but technology is being developed to support more affordable long-term storage.

Supply chain limitations

Supply chain hurdles are hindering the installation of renewable energy projects. According to a report by McKinsey, project developers face three main challenges : access to raw materials and rare earth metals amid a projected shortage; access to the talent and machinery necessary; and little supplier diversification for critical components. For example, in the case of polysilicon, a material used in solar panels, 79% of global capacity is concentrated in China, making the solar PV industry vulnerable to disruptions in that country.

Carbon footprint and waste

Although solar and wind power emit no harmful emissions during power generation, the manufacturing, installation and transportation of renewable energy equipment does often produce greenhouse gas emissions . Additionally, waste products are created during asset production process and disposal, with wind turbine blades and solar panels taking up space in landfills.

Businesses in the renewable energy industry or interested in sourcing renewable power can proactively monitor renewable energy trends with the right tools. The IBM Environmental Intelligence Suite uses historical energy generation data, weather data and more to generate high-accuracy energy forecasts for wind and solar assets to inform key decision-making at the enterprise level.

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