Market research explained in an easy to understand way. Definitions, explanations, methods, test procedures, analyses.

What is market research? A definition.

Market research is an important part of the marketing process and deals with the collection, analysis and interpretation of information about customers, competitors and the market in general. Companies use market research to better align their products and services with the needs and wants of their customers and thus increase their market opportunities.

There are various methods of market research that companies can use to gather information about the market. These include, for example, surveys, which can be conducted either online or in paper form, as well as conducting interviews and focus groups. Another method is to analyse sales and customer data that companies have already collected.

Market research is also important to measure and evaluate the effectiveness of marketing campaigns. For example, companies can conduct customer satisfaction surveys to find out how satisfied their customers are with the products or services. Based on this, they can then make improvements and adjust their marketing strategies.

It is important to note that market research costs time and money and therefore needs to be carefully planned to ensure that it is valuable and targeted. Companies should therefore set clear objectives for their market research and ensure that they choose the right methods and tools to achieve these objectives.

Overall, market research is an important part of the marketing process and helps companies to better align their products and services with the needs and wants of their customers and thus increase their market opportunities. However, it is important that companies plan carefully and choose the right methods and tools to ensure that their market research is valuable and purposeful.

Market research is of considerable importance to companies as it has a direct influence on the success or failure of a company. Market research provides important data and insights to analyse markets and consumer behaviour.

What are the different types of market research?

There are different types of market research that companies can use to gather important information about their customers, their industry and their market. Some examples of types of market research are:

• Primary research: this is a type of market research where companies collect data themselves by interacting directly with their customers or other stakeholders. Examples of primary research include customer surveys, interviews and focus groups.
• Secondary research: This is a type of market research where companies use existing data collected from other sources. Examples of secondary research include industry statistics, sales figures and market research reports.
• Online market research: This is a type of market research where companies use the internet to collect data. Examples of online market research include customer reviews, social media analysis and online surveys.
• Qualitative market research: This is a type of market research where companies collect in-depth information about people’s attitudes, opinions and feelings. Examples of qualitative market research include interviews, focus groups and observations.
• Quantitative market research: This is a type of market research where companies collect and analyse large amounts of data to identify patterns and trends. Examples of quantitative market research include online surveys and customer surveys.

It is common for companies to combine different types of market research to gain a more comprehensive understanding of their customers, their industry and their market. Combining different methods can help make the results of market research more widely applicable and increase the quality of the data.

For example, a company could conduct both qualitative and quantitative market research to gain a more comprehensive understanding of how customers feel about a new product. The company could first conduct a series of in-depth interviews with selected customers to gain insights into their attitudes and opinions. Then the company could conduct an online survey to apply the results of the interviews to a larger customer base and identify patterns and trends.

It is also possible to combine different types of primary and secondary research to get a more comprehensive view of the market. For example, a company could conduct customer interviews and compare these results with existing industry statistics to gain a better understanding of market dynamics.

What are the methods of market research?

There are many different methods of market research that companies can use to gather information and data about their customers, their markets and their competitors. Some of the most common methods are:

• Surveys: Surveys are a popular method of market research where a sample of people are interviewed to gather information about their attitudes, behaviours and purchasing decisions.
  → What are paid surveys?
• Focus groups: Focus groups are small, discursive groups that meet to talk about specific topics and provide feedback. They are often used to find out opinions and attitudes about new products or services.
• Observation: Observation is a method of directly observing people’s behaviour to gather information about their habits and preferences.
• Experiments: Experiments are a way of investigating cause-effect relationships between different variables. They are often used in market research to test the effectiveness of advertising campaigns or the reaction of customers to certain products or services.
• Secondary data analysis: Secondary data is existing data collected from other sources. It can come from government agencies, industry associations or other companies and can be used to analyse markets and identify trends.
• In-depth interviews: In-depth interviews are a method of asking a person in an in-depth, single interview to obtain detailed information about their thoughts, opinions and behaviours.
• Online research: Online research involves the use of online surveys, social media analysis and other techniques to gather information about consumer behaviour and attitudes.
• Mystery shopping: Mystery shopping is a method in which undercover researchers pose as customers in shops or other establishments to assess the quality of customer service and other aspects of business operations.
• Expert Interviews: Expert interviews are conversations with people who have extensive knowledge and experience in a particular area and can be used to provide valuable insights and perspectives.
• Ethnographic research: Ethnographic research is a method of studying the culture, values and behaviours of groups of people by immersing oneself directly in their communities and observing and analysing their behaviour.
• Market research community: A market research community is a group of people who have volunteered to participate in longer-term market research studies. Members of a market research community often participate in various activities such as surveys, focus groups, in-depth interviews and other market research methods to provide feedback and insights.

A market research community is not a virtual place where market researchers meet. A market research community is a group of people who have voluntarily come together to participate in market research studies.

What are the different phases in the process of market research?

Market research usually involves several phases that relate to the process of planning, conducting and analysing market research studies. Here are the most important phases of market research:

• Planning: in this phase, the objective of the market research is set and a research design is developed that defines the methods, target group and other aspects of the study.
• Data collection: In this phase, the actual market research activities are carried out, such as collecting data through surveys, focus groups or other methods.
• Data evaluation: In this phase, the collected data is evaluated and analysed to gain valuable insights and knowledge.
• Reporting: In this phase, the results of the market research are presented and communicated, for example in the form of reports or presentations.
• Implementation: In this phase, the results of the market research are used to improve the company’s business, for example by developing new products or improving marketing strategies.

What test procedures are there in market research?

There are many different test procedures that can be used in market research to collect data and information that will help the company to operate successfully in the market. Some examples of testing procedures are:

• A/B testing: A/B testing is a procedure that compares two versions of a product, service or marketing activity. The A/B test is often used to evaluate the effectiveness of changes to a product or marketing activity.
• Usability test: The usability test is a procedure in which the user-friendliness of a product or service is examined. Usability testing is often used to evaluate the effectiveness, satisfaction and failure rate of products or services.
• Control group test: The control group test is a procedure in which a test group is exposed to a treatment or intervention while a control group receives no treatment. The control group test is often used to evaluate the effectiveness of treatments or interventions.
• Behavioural Observation Test: The behavioural observation test is a procedure in which consumer behaviour is observed and measured. The behavioural observation test is often used to study consumer behaviour in different contexts.
• Online panel test: The online panel test is a procedure in which a group of consumers is surveyed online to capture their opinions and attitudes on various topics. Online panel testing is often used to gain insights into the opinions of consumers who are active on social media or other online platforms.
  Packaging test: Packaging testing is a process that examines the effectiveness of packaging. Packaging testing is often used to evaluate the appeal of packaging and to influence consumers’ purchasing decisions.
  → What is an online panel?
• Price test: The price test is a procedure that examines the reaction of consumers to different price levels. Price testing is often used to understand consumer price sensitivity and to determine optimal price levels for products or services.
• Ad media test: The advertising media test is a procedure that examines the effectiveness of advertising media. The ad media test is often used to measure consumer attention, interest and recall for advertising.
• Customer service test:: The customer service test is a market research technique that examines the quality and satisfaction of customers with a company or organisation’s customer service. The customer service test is often used to understand the expectations and needs of customers and to improve the quality of customer service. Customer service testing can be conducted using various techniques such as customer satisfaction surveys, mystery shopping and customer feedback.
• Product testing: Product testing is a market research technique that examines the quality and performance of products. Product testing is often used to assess customer satisfaction with products and to identify areas for improvement. Product testing can be carried out using various techniques such as customer feedback, laboratory tests and user tests.

There are countless types of market research analysis, but they all have the same goal: to make a company successful and keep the competition at bay!

What types of analyses exist in market research?

There are many different analyses that can be used in market research to evaluate the collected data and gain valuable insights and knowledge. Some of the most common analyses in market research are:

• Statistical analysis: statistical analysis is a method that uses mathematics and statistics to identify and quantify patterns and trends in data. Statistical analysis can be performed using a variety of techniques such as regression, correlation and hypothesis testing.
• Text analysis: Text analysis is a method of analysing the content of texts, such as customer reviews or interview transcripts, to understand opinions, attitudes and perspectives. Text analysis can be done with software support or manually.
• Pattern recognition: Pattern recognition is an analysis that identifies patterns in data to understand behaviours and trends. Pattern recognition can be automated using algorithms or other tools.
• Comparative analysis: Comparative analysis is a method of comparing data from different groups or markets to identify differences and similarities.
• Qualitative analysis: Qualitative analysis is a method where data is analysed in the form of text, images or videos to gain deeper insights and understanding of topics. Qualitative analysis can be done using different techniques such as content analysis, discourse analysis or topic analysis. In market research, qualitative analysis is becoming increasingly important due to artificial intelligence.
• Netnography: Netnography is an analysis that focuses on the analysis of online communities and interactions. It is often used to gain insights into the opinions and behaviours of consumers who are active on social media or other online platforms.
• Exploratory analysis: Exploratory analysis is a method used to develop new ideas and perspectives and to explore the depth and breadth of issues. Exploratory analysis can be conducted using a variety of techniques such as brainstorming, mind mapping or affinity diagrams.
• Descriptive analysis: Descriptive analysis is a method used to describe and summarise the properties and characteristics of data. Descriptive analysis can be performed using various techniques such as tables, charts and statistics.
• Prognostic analysis: Prognostic analysis is a method used to predict future events or trends. Prognostic analysis can be performed using various techniques such as trend analysis, regression and pattern recognition.
• Causal analysis: Causal analysis is a method used to investigate whether there is a relationship between two or more variables and if so, what factors influence the changes in the variables. Causal analysis can be carried out using various techniques such as experiments, quasi-experiments and regression analysis.
• Contextual analysis: Contextual analysis is used in market research to understand the meaning of data in the context of time, place and culture. Contextual analysis can be conducted using various techniques such as historical comparison, cultural comparison and ethnography.
• SWOT analysis: SWOT analysis is a method used to examine the strengths, weaknesses, opportunities and threats (SWOT) of a company or organisation. SWOT analysis can be carried out as part of strategic planning or market research.
• Conjoint analysis is a method used in market research to investigate consumer preferences for different product features or services. Conjoint analysis is often used to estimate demand for new products and to understand how consumers evaluate different price-performance options. Conjoint analysis can be conducted using various techniques such as full-profile analysis, choice-based conjoint analysis and adaptive conjoint analysis.
• Customer loyalty analysis is a method used in market research to study customer loyalty and satisfaction and to understand how it can be influenced. Customer loyalty analysis can be conducted using various techniques such as customer satisfaction surveys, customer loyalty programmes and customer interviews. The results of customer loyalty analysis can be used to improve customer relationships and increase customer retention.
• Hazard and impact analysis: Hazard and impact analysis is a method used to investigate and assess the impact of risks or threats on a company or organisation. Hazard and impact analysis can be used to identify and assess risks in different areas such as finance, IT, security and operations.
• Benchmarking analysis: Benchmarking analysis is a method used in market research to evaluate the performance of a company or organisation in comparison to other companies or organisations in the industry. Benchmarking analysis can be used to identify a company’s strengths and weaknesses and to uncover areas for improvement.
• Market segmentation: Market segmentation is a method used to divide the market into smaller groups of consumers with common needs or characteristics. Market segmentation can be done using various techniques such as demographics, psychographics, behaviours and needs.
• Market entry analysis: Market entry analysis is a method used to investigate and evaluate the opportunities and challenges of market entry. Market entry analysis can be used to assess demand, the competitive situation, regulatory requirements and other factors that may influence market entry.
• Market research simulation: Market research simulation is a method used to simulate the effects of decisions or scenarios in a controlled environment. Market research simulation can be used to study demand, pricing, brand awareness and other factors that may influence the success of marketing efforts.
• Customer value analysis is a method used to determine the value of customers to a company or organisation. Customer value analysis can be used to evaluate the profitability of customers and to increase customer loyalty. Customer value analysis can be performed using various techniques such as customer life cycle analysis, customer profitability analysis and customer value forecasting.
• Innovation analysis: Innovation analysis is a method used to study the impact of innovations on the market and customer needs. Innovation analysis can be used to develop new products or services and to predict the demand for innovations. Innovation analysis can be carried out using different techniques such as market potential analysis, idea generation and customer needs analysis.

Who are the most significant pioneers and important market researchers of all time?

There are many significant pioneers and important market researchers who have made important contributions to the development and improvement of methods and techniques in market research over the years. Some well-known market researchers who are considered significant and important are those listed below. We list the most significant market researchers to provide some guidance in the search for specialist literature. There are certainly many other important market researchers.

• Paul Lazarsfeld: Lazarsfeld was an Austrian sociologist and market researcher who was a leader in the development of methods for measuring media effects in the 1930s and 1940s. He was also a pioneer in the field of qualitative market research and made important contributions to the development of focus groups.
• George Gallup: Gallup was an American pollster and founder of the Gallup Organization, one of the world’s leading market research firms. He became famous for his opinion polls and made important contributions to the development of methods for measuring opinions and attitudes.
• David Ogilvy: Ogilvy was a well-known advertising executive and founder of the advertising agency Ogilvy & Mather. He was a pioneer in the field of market research in advertising and made important contributions to the development of methods for measuring advertising effectiveness.
• Neil Borden: Borden was an American marketing professor and a pioneer in the field of market research in marketing. He made important contributions to the development of concepts such as the marketing mix and helped make market research an important discipline in marketing.
• Philip Kotler: Kotler is a well-known marketing professor and author who is considered one of the leading experts on marketing strategy and tactics. He has made important contributions to the development of concepts such as the customer needs and wants matrix and is known for his work on topics such as brand positioning and customer loyalty.
• Daniel Kahneman: Kahneman is an Israeli-American psychologist and Nobel Prize winner who has made important contributions to the development of concepts such as the “availability effect” and the “anchronistic comparison effect”. His work has contributed to understanding the psychology of decision-making and has also had an impact on market research.
• Howard Moskowitz: Moskowitz is a well-known market researcher and author known for his work on topics such as consumer behaviour and product development. He is also a pioneer in the field of data-driven market research and has made important contributions to the development of methods for analysing customer feedback.
• Ernest Dichter: Dichter was an Austrian psychologist and market researcher known as the “father of motive research”. He made important contributions to the development of concepts such as “gift psychology” and “in-depth interviews” and helped make market research an important discipline in the marketing industry.
• Abraham Maslow: Maslow was an American psychologist known for his theory of human motivation known as “Maslow’s Hierarchy of Needs”. His work has had an impact on market research and is often used to understand consumer behaviour and motivation.
• Ernesto Laclau: Laclau was an Argentinian philosopher and sociologist known for his work on topics such as discourse analysis and hegemony. His ideas have had an impact on market research and are often used to understand the way people think and talk about brands and products.
• J.C. Penney: Penney was an American entrepreneur and founder of the J.C. Penney retail chain. He was a pioneer in the field of market research in the retail industry and made important contributions to the development of methods for analysing sales figures and customer feedback.
• Peter Drucker: Drucker was an Austrian-American management expert and author known as the “father of modern management”. He made important contributions to the development of concepts such as “market orientation” and “corporate mission” and helped make market research an important discipline in marketing.

We hope you were able to gain a little insight into the world of market research and all its complexity. Manifesting the entire field of market research in one blog article is virtually impossible. The best thing to do is to look for good specialist literature if you want to delve deeper into the subject of market research, for example to study it and then take a job in this field.

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Market Research | Definition | Methods | Test Procedure | Analysis | Simply Explained