What is Market Research?

[Market Research Templates]

Market research is the process of gathering information about:

• Your target market and customers
• The success potential of new products
• Ways to improve existing products
• How your brand is perceived in the market

As the source document notes, today’s consumers have significant power in the marketplace. This makes it essential to understand:

• Who your buyers are
• What influences their purchasing decisions
• How they make choices

The market research services industry demonstrates strong growth, expected to expand from $75 billion in 2021 to $90.79 billion in 2025.

Why Do Market Research?

Market research allows you to:

1. Meet your buyers where they are
2. Cut through the noise of our attention-demanding world
3. Understand buyer problems and pain points
4. Create products that naturally appeal to your market

Market research provides insights into:

• Where your target audience researches products
• Which competitors they consider
• Industry trends
• Market composition
• Purchase influences
• Consumer attitudes
• Product demand
• Unmet customer needs
• Pricing perceptions

Primary vs. Secondary Research

Primary Research

This is first-hand information about your market and customers. It comes in two forms:

1. Exploratory Primary Research

• Initial step before specific research
• Often involves open-ended interviews
• Uses surveys with small groups
• Helps identify potential issues

2. Specific Primary Research

• Follows exploratory research
• Targets smaller audience segments
• Asks precise questions
• Aims to solve identified problems

Secondary Research

This uses existing data and public records, including:

1. Public Sources

• Free and accessible
• Government statistics
• Census Bureau data
• Public records

2. Commercial Sources

• Pay-to-access market reports
• Research from agencies like:
  • Pew
  • Gartner
  • Forrester

3. 3. Internal Sources

• Your existing market data
• Revenue per sale
• Customer retention rates
• Historical performance data

Types of Market Research

The source document identifies 11 key types:

1. Interviews
   • Face-to-face discussions
   • Natural conversation flow
   • Persona development insights
2. Focus Groups
   • Selected people test products
   • Provide feedback
   • Help with product differentiation
3. Product/Service Use Research
   • How people use your product
   • Why they use it
   • Product usability insights
4. Observation-Based Research
   • Watch natural user behavior
   • Study interaction patterns
   • Identify improvement areas
5. Buyer Persona Research
   • Target audience composition
   • Customer challenges
   • Product/service needs
6. Market Segmentation Research
   • Categorize audience groups
   • Define characteristics
   • Determine effective approaches
7. Pricing Research
   • Similar product pricing
   • Customer price tolerance
   • Market rate analysis
8. Competitive Analysis
   • Study primary competitors
   • Analyze market position
   • Identify opportunities
9. Customer Satisfaction Research
   • Current customer feedback
   • Return business motivators
   • Loyalty program effectiveness
10. Brand Awareness Research
    • Brand recognition levels
    • Market associations
    • Brand perception
11. Campaign Research
    • Past campaign analysis
    • Success metrics
    • Future campaign insights

How to Conduct Market Research

1. Define Your Buyer Persona

Include key characteristics:

• Age
• Gender
• Location
• Job titles
• Family size
• Income
• Major challenges

2. Identify Research Participants

Best practices:

• Target 10 participants per persona
• Focus on recent interactions (within 6 months)
• Mix of customer types
• Provide incentives

3. Prepare Research Questions

30-Minute Survey Structure:

Background Information (5 minutes)

• Personal background
• Team structure
• Job responsibilities
• Team goals and metrics
• Recent challenges

Awareness (5 minutes)

• Problem recognition
• Solution awareness
• Market familiarity

Consideration (10 minutes)

• Research methods
• Information sources
• Vendor interactions
• Search patterns

Decision (10 minutes)

• Influential sources
• Comparison criteria
• Decision-makers
• Purchase factors

4. List Primary Competitors

Remember:

• Consider direct and indirect competition
• Include division-level competitors
• Analyze content competitors
• Study market position

5. Summarize Findings

Include:

• Research goals
• Participant details
• Executive summary
• Awareness insights
• Consideration analysis
• Decision factors
• Action plan

Market Research Report Template Components

[Market Research Templates]

The source document recommends including:

1. Five Forces Analysis Template

1. • Analyze industry using Porter’s model
   • Examine competitive forces
   • Study market dynamics
2. SWOT Analysis Template

1. • Internal strengths and weaknesses
   • External opportunities and threats
   • Market position analysis
2. Market Survey Template

Market surveys help you uncover important information about your buyer personas, target audience, current customers, market, and competition.

1. • Demographic questions
   • Business inquiries
   • Competitor analysis
   • Industry insights
   • Brand perception
   • Product feedback
2. Focus Group Template

Focus groups are an opportunity to collect in-depth, qualitative data from your real customers or members of your target audience.

1. • Open-ended questions
   • Product demonstrations
   • Pricing discussions
   • Competitor comparisons

Market Research Examples

1. TikTok’s Approach
   • In-app research surveys
   • Video feedback collection
   • Ad experience analysis
   • Viewer preference study
2. Taco Bell’s Method
   • Regional product testing
   • Customer voting systems
   • Market-driven menu items
   • Phased product launches
3. The Body Shop’s Strategy
   • Social listening
   • Customer value analysis
   • Campaign repositioning
   • Sustainability focus