How To Conduct Market Research For Business Development

Conducting market research is one of the most important aspects of any business. And of course, that’s why market research costs $73 billion every year.

And believe me when I say that performing market research online entails far more than a Google search. 

It is far beyond that.

Good market research strategies is the foundation of any successful firm.

Because good market research process tells you who your customers are? What do they want? What are their pain points and so on. 

Conducting strong market research takes exploring the current trends in your industry and planning accordingly.

As a businessman it’s your first job to derive a business plan and deriving a business plan requires a lot more deep market research. 

Because the business strategy isn’t dependent on assumptions and gut feelings. It is entirely based on data and facts. 

And by performing thorough market research steps, you can quickly gather the necessary data and facts.

So, here in this blog, you will get to know everything about how to conduct market research. 

So, put your reading glasses on, and let’s get started! 

But before going into understanding how to conduct market research, we will first understand why is market research is important. 

Why Is Market Research Important?

Let me start my point with a quote from the founder of The Right Company, Bernadette Jiwa.

She says, “Whoever gets closer to the customer wins.”

And believe me, this quote fits best in every aspect.

Now the question that might be buzzing in your mind is, “how is this quote relevant to the market research?”

Trust me, this quote is directly linked with the market research.

When you conduct market research properly, it provides you the opportunities to come closer to your customers.

Want to know how?

Let me explain.

You know what business decisions cannot be based on gut instinct and doing so comes with a high risk. 

Market research provides you with the data-driven information you need to make informed decisions.

From marketing segmentation to product features, the most successful businesses rely on data to educate and measure their strategy and decision-making.

It also enables you to meet with your consumer wherever they are.

Another reason why is market research important is that with the help of market research you get to know about how to design a product that addresses your customer’s specific issues. 

Because prospects open their wallets when you solve problems.

Your customers are very much concerned with how it affects them. And the only way to find out is through market research.

According to studies conducted by Clay Christensen, a Harvard business school professor, 95% of new product launches fail, but if your market research is thorough, you may easily avoid falling into that 95%.

Market research may also reveal information on a range of factors that affect your bottom line, such as:

A) Where do your target audience and current consumers go to learn about your product or service?

B) Which of your rivals does your target market turn to for information, choices, or purchases?

C) What’s hot in your industry and in your buyer’s mind?

D) Who makes up your market, and what obstacles do they face?

E) What factors affect your target audience’s purchasing decisions and conversions?

I hope now you have got the point why is market research important.

Types Of Market Research

Market research is a much wider phrase that encompasses a variety of data collection methods.

It can imply different things to different individuals and be interpreted in a variety of ways. 

To offer you a thorough knowledge, we would go through the common sorts of market research, its benefits, and drawbacks.

See the diagram below, you will get to see that one of the most common types of market research is primary research and secondary research and others are just the branches of them. 

Let’s discuss the two types of market research in detail:

Primary Research Versus Secondary Research

Primary Research is a kind of research that you do on your own. It can be taken in any form of qualitative or quantitative research. 

But the main difficulty of this research is that it has not been conducted before. It’s the first time data that you need to collect. 

This type of raw data can be collected by different means like surveys, data analysis, interviews, etc.

One of the biggest advantages of primary data is it is fresh and reliable. 

Previously brands used to find primary research as a difficult idea as they could not understand how to conduct market research, where to start, and how to manage the entire operation.

But due to advancements in technologies, brands can easily access the raw data with the help of tools and software.

That’s why brands are more confident in doing market research on their own rather than depending on any other source for market research data.

Secondary Research is a kind of gathering and analyzing the data that has already been collected. 

This type of research is beneficial for small businesses which are not able to do research on their own. 

Also, it acts as a cheaper alternative for new and small businesses. 

Confused?

Let me clear this with an example.

Let’s say, if you are studying the data of the US population that has already been published and using it for your business strategy then, you are conducting secondary research.

But if you are wondering which type of research is better for my business, then I would say both types of research have their own advantages. As a result, while doing market research for your business development, you must combine the two types of study.

Then only, it will help you define your business strategies.

How To Do Market Research 

So you’ve figured out that market research is centered on knowing three things.

Customers 

Competitors 

And, Industry

If you are eager to understand how to do market research, you first need to understand that, to run a successful business, It is extremely important that you learn about your customers, competitors, and your industry.

And you can easily get this information by asking the right question, in the right way, to the right people. 

Believe me, this will provide guidance to your business for sure and help you understand your customers as much as possible.

As you already know, in this blog, we are talking about how to conduct market research for business development.

So, when going for conducting market research, you can easily use your research in two ways:

A) Create a business and a marketing strategy.

B) Assess the effectiveness of your existing marketing strategy.

Follow These 5 Steps For Market Research

Establish A Research Goal

This is the first step towards conducting good and effective market research. You should define your goals first.

If you are wondering how to conduct market research, then let me make it clear to you that there is a question that you should ask yourself.

What is the key information that you might want to know with the help of your market research?

With the help of defining your research goals, you would be able to make your research accurate and effective.

For example, suppose you are launching a new product in the market, so first you should know about what features your target customers want in that product.

That’s how defining your goals would help you understand whether the market will accept your product or not.

And of course why not?

After all, you cannot say, “I want to add these features to my product just because I like them.” 

It’s not about your linking, it is about what your customer wants.

Without proper research, your business goals would be based on your gut feeling which is not good at all. 

Formulate Research Questions 

Once you have already identified your objectives and goals, then you need to come up with a list of research questions to better understand your market.

Let me make it more clear to you with the help of some examples of questions,

Questions for your target market include:

A) What are the important demographics in your market (such as age and gender)?

B) How will the introduction of a new business or product affect the market and customers?

C) Is the economy in the area where you operate stable?

Questions for your clients include:

A) What are the characteristics of your target consumers and how do they behave?

B) What city are they in?

C) What is the ideal consumer profile for your company?

Questions for your competitors include:

A) What does a typical rival look like for your company?

B) What are the primary advantages of your competitors?

C) What are the primary flaws of your competitors?

The questions mentioned above would definitely help you formulate your own research questions as per your niche and requirements. 

Data Collection 

This is also an important step if you are eager to learn how to conduct market research.

The data can be qualitative or quantitative.

Qualitative data is more in-depth and involves a smaller number of participants (focus groups and in-depth interviews).

Quantitative data is utilized to draw precise conclusions and a big number of people are involved (surveys and questionnaires).

Make sure the data you gather is accurate and unbiased. 

You should never ask questions like, “do you think that we should offer a higher pricing tier with additional services?”

Do you understand what kind of question this is?

Such questions sway away the person’s response. Make an effort to ask both open-ended and closed-ended questions (for instance, a multiple-choice question asking what income range best describes you).

Now, let’s discuss the ways of collecting data.

Ways Of Collecting Data

There are some of the methods for collecting data:

A) Telephone polls

B) Postal questionnaires 

C) Internet surveys 

D) Interviews with individuals

Analyze your findings

This phase entails organizing your findings and interpreting them. In a nutshell, what you  have learned!

When organizing and categorizing your data, keep your study objectives in mind. Look for a method to organize your data in a better way; this will make it easier to reach a decision later on.

Also, It’s often necessary to create a summary of the study, including the steps you took, the results, the conclusions, and the next measures you propose based on the findings. 

Even if a formal marketing research report isn’t required, make sure you go through the study and results so you can communicate the recommended course of action. 

It’s pointless to publish your charts and statistics if they don’t result in action.

Here are some data organization suggestions:

A) Identify any noteworthy trends – try organizing your data using lists, tables, graphs, and mind maps.

B) Analyze your data using your marketing plan to identify strengths, weaknesses, opportunities, and threats (SWOT). SWOT analysis might be included in your company strategy.

Interpreting your findings is one of the most crucial tasks in the market research process. 

“What are the findings of your research?” You’ll be able to comprehend the findings of the study by answering this question.

Make Judgments And Draw Conclusions

When you’ve compiled your results, ask yourself the following questions:

A) What are the implications of your results for your company?

B) What are your plans for dealing with it?

C) Any findings you make should be in line with your research objectives as well as your company’s objectives.

Examine all of the information gathered:

A) Make sure your data isn’t missing anything.

B) Investigate the significant issues or trends in your business or market.

C) Examine any potential advantages, disadvantages, opportunities, or dangers.

D) Choose the approaches that will make up your marketing mix based on your study.

Market Research Examples 

After knowing how to conduct market research, you should also know about some market research examples.

Quantitative and qualitative market research is the most popular market research in this area along with the surveys, focus groups, online interviews, and phone surveys:

But there are also lots of market research examples that you should take into consideration.

A) Online Polls And Surveys:  To measure the opinions of a target group, online polls and surveys templates have become the most extensively utilized sort of market research tool. 

They are a very cost-effective way to communicate with an audience and get ideas or input on important issues.

B) Social Media Research:  As a convenient alternative to focus groups or online interviews, this market research example has grown in popularity. 

To gain immediate feedback on product launches or feature upgrades, marketers now choose to publish on Facebook, LinkedIn, or even Instagram.

C) One-To-One Interviews: This market research example is one of the most common and well-known types of market research. 

They are methodical, with questions prepared well in advance of the one-on-one interviews to ensure that all participants provide the appropriate feedback.

BONUS TIP

I would like to introduce you to a tool for conducting market research, Meltwater. 

Meltwater assists businesses in making educated decisions based on external data. They predict that internet data insights will increasingly affect corporate strategy. 

Organizations frequently look beyond their internal reporting systems to a world of data that is always increasing and changing.

Conclusion

So, here in this blog, I have elaborated all the techniques about how to conduct market research for business development.

All the steps that I have elaborated are practically applicable which are definitely going to help you grow your business in no time. 

So, plan wisely and work accordingly. I know it can cause you a burden but believe me with the right technique it is easy to conduct the market research.

For more marketing tips and services, you can schedule a free-of-cost 30-Minute Strategy session with our experts. In this call, our experts will discuss your business and provide you with the free strategies that you can use to boost your sales and revenue. 

FAQs 

1. How to do market research for a business idea?

1. Read about the market.

2. Perform customer research.

3. Interview potential customers.

4. Understand the competition.

5. Testing the business idea

2. What are the 3 main types of market research?

There are three types of objectives that can be deployed in marketing research: exploratory research, descriptive research, and causal research.

3. What is the most effective method of market research?

Surveys have become a staple of today’s internet experience, and are perhaps the most popular sort of primary research. Client satisfaction surveys are commonly used in professional services.

4. What should be included in market research?

Any political, legal, economic, environmental, social, and cultural concerns or trends that may affect your firm should be factored into your industry and market research. … market size and trends, as well as demographics (e.g., age, gender, and income). avenues of marketing

5. What exactly is a market research strategy?

A market research plan, like a brief, is an important document that outlines key elements regarding your market research study. It guarantees that you are aware of the project’s timetable, budget, and expected goals well in advance of the start date.