Market research

What is Market research?

Market research is the process of gathering and analyzing data about your audience, competitors, and industry. It helps you understand customer needs, test ideas, and make smarter decisions-whether you’re launching a new product or improving an existing one.

Good research takes the guesswork out of running a business. It shows you where the demand is, what your audience cares about, and how to stand out.

Why businesses use market research

Market research can help you:

Test whether your business idea has real demand
Spot trends and shifts in your industry
Improve product-market fit
Identify gaps in the market
Measure the success of marketing campaigns
Understand how customers feel about your brand

Both new and established businesses use research to stay informed and reduce risk.

Types of market research data

There are two main sources:

Primary data

This is data you collect yourself, like surveys or interviews. It’s more time-consuming and expensive, but it’s tailored to your exact needs.

Secondary data

This comes from existing sources-like industry reports, government data, or academic studies. It’s faster and cheaper but available to everyone.

You’ll also work with two types of insights:

Qualitative data - Answers why people think or act a certain way (e.g. feedback from interviews or focus groups)
Quantitative data - Numbers and stats that show what is happening (e.g. survey results, analytics)

Tools for primary research

Here are four common ways to gather first-hand data:

1. Surveys

Quick and scalable. Use them to measure satisfaction, test messaging, or validate product ideas.

2. Interviews

One-on-one conversations that go deeper than surveys. Great for getting detailed feedback or exploring new ideas.

3. Observations

Watch how customers interact with your product or website in a natural setting. Useful for spotting issues they may not mention.

4. Focus groups

Group sessions where participants discuss a topic, guided by a moderator. Helpful for testing features, branding, or marketing messages.

Tools for secondary research

Use these sources to gather existing market data:

Government websites and statistics
Trade journals and industry reports
Academic studies
Online publications and case studies
Market research tools (e.g. Statista, Pew Research, IBISWorld)

The market research process

Here’s a step-by-step look at how market research is typically done:

1. Identify the problem

What do you want to learn or solve? You may start with a broad question and narrow it down as you go.

2. Set research objectives

Turn your problem into clear goals or hypotheses. For example, “Why are customers abandoning the checkout process?”

3. Design your research plan

Choose your methods (survey, focus group, etc.), decide how you’ll collect data, and define what success looks like.

4. Plan your sample

Figure out who you want to study, how many people, and how you’ll select them.

5. Collect data

Use your chosen tools and channels to gather feedback. This could be done in-house or with outside help.

6. Analyze the data

Sort and categorize the data. Look for patterns and key findings. Apply simple logic or use statistical tools depending on your needs.

7. Prepare your report

Summarize the results. Focus on key takeaways and recommendations. Keep it clear and relevant for decision-makers.

Final thoughts

Market research isn’t just for big companies. It helps businesses of any size make better choices. Whether you’re validating an idea or improving a product, research helps you stay focused on what your audience truly needs.

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