How to Do Market Research: A Guide and Template

How to Do Market Research: A Guide and Template
Written by Debbie Farese
Discover the different types of market research, how to conduct your own market research, and use a free template to help you along the way.
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Today's consumers have a lot of power. They can research your product or service and make purchase decisions entirely on their own.
Moreover, rather than talking to one of your sales reps, they're more likely to ask for referrals from members of their networks or read online reviews. 
With this in mind, have you adapted your marketing strategy to complement the way today's consumers research, shop, and buy?
To do just that, you must have a deep understanding of who your buyers are, your specific market, and what influences the purchase decisions and behavior of your target audience members.
Enter: Market Research. 
Whether you're new to market research, this guide will provide you with a blueprint for conducting a thorough study of your market, target audience, competition, and more.
Market Research Examples
What is market research?
Market research is the process of gathering information about your target market and customers to verify the success of a new product, help your team iterate on an existing product, or understand brand perception to ensure your team is effectively communicating your company's value effectively.
Market research can answer various questions about the state of an industry, but it's hardly a crystal ball that marketers can rely on for insights on their customers. Market researchers investigate several areas of the market, and it can take weeks or even months to paint an accurate picture of the business landscape.
However, researching just one of those areas can make you more intuitive to who your buyers are and how to deliver value that no other business is offering them right now.
Certainly you can make sound judgment calls based on your experience in the industry and your existing customers. However, keep in mind that market research offers benefits beyond those strategies. There are two things to consider: 
Your competitors also have experienced individuals in the industry and a customer base. It's very possible that your immediate resources are, in many ways, equal to those of your competition's immediate resources. Seeking a larger sample size for answers can provide a better edge. 
Your customers don't represent the attitudes of an entire market. They represent the attitudes of the part of the market that is already drawn to your brand. 
The market research services market is growing rapidly, which signifies a strong interest in market research as we enter 2022. The market is expected to grow from roughly $75 billion in 2021 to $90.79 billion in 2025 at a compound annual growth rate of 5%. 
Why do market research?
Market research allows you to meet your buyer where they are. As our world (both digital and analog) becomes louder and demands more and more of our attention, this proves invaluable. By understanding your buyer's problems, pain points, and desired solutions, you can aptly craft your product or service to naturally appeal to them.
Market research also provides insight into a wide variety of things that impact your bottom line, including:
Where your target audience and current customers conduct their product or service research
Which of your competitors your target audience looks to for information, options, or purchases
What's trending in your industry and in the eyes of your buyer
Who makes up your market and what their challenges are
What influences purchases and conversions among your target audience 
Consumer attitudes about a particular topic, pain, product, or brand
Whether there's demand for the business initiatives you're investing in
Unaddressed or underserved customer needs that can be flipped into selling opportunity
Attitudes about pricing for a particular product or service
Ultimately, market research allows you to get information from a larger sample size of your target audience, eliminating bias and assumptions so that you can get to the heart of consumer attitudes. As a result, you can make better business decisions from knowing the bigger picture.
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As you begin honing in on your market research, you'll likely hear about primary and secondary market research. The easiest way to think about primary and secondary research is to envision to umbrellas sitting beneath market research: one for primary market research and one for secondary market research.
Beneath these two umbrellas sits a number of different types of market research, which we'll highlight below . Defining which of the two umbrellas your market research fits beneath isn't necessarily crucial, although some marketers prefer to make the distinction.
So, in case you encounter a marketer who wants to define your types of market research as primary or secondary — or if you're one of them — let's cover the definitions of the two categories next. Then, we'll look at the different types of market research in the following section . 
Primary vs. Secondary Research
To give you an idea of how extensive market research can get, consider that it can either be qualitative or quantitative in nature — depending on the studies you conduct and what you're trying to learn about your industry.
Qualitative research is concerned with public opinion, and explores how the market feels about the products currently available in that market. Quantitative research is concerned with data, and looks for relevant trends in the information that's gathered from public records.
There are two main types of market research that your business can conduct to collect actionable information on your products, including primary research and secondary research. Let's dive into those two types, now. 
Primary Research
Primary research is the pursuit of first-hand information about your market and the customers within your market. It's useful when segmenting your market and establishing your buyer personas. Primary market research tends to fall into one of two buckets: exploratory and specific research.
Exploratory Primary Research
This kind of primary market research is less concerned with measurable customer trends and more about potential problems that would be worth tackling as a team. It normally takes place as a first step — before any specific research has been performed — and may involve open-ended interviews or surveys with small numbers of people.
Specific Primary Research
Specific primary market research often follows exploratory research and is used to dive into issues or opportunities the business has already identified as important. In specific research, the business can take a smaller or more precise segment of their audience and ask questions aimed at solving a suspected problem.
Secondary Research
Secondary research is all the data and public records you have at your disposal to draw conclusions from (e.g. trend reports, market statistics, industry content, and sales data you already have on your business). Secondary research is particularly useful for analyzing your competitors . The main buckets your secondary market research will fall into include:
Public Sources
These sources are your first and most-accessible layer of material when conducting secondary market research. They're often free to find and review — lots of bang for your buck here.
Government statistics are one of the most common types of public sources according to Entrepreneur. Two U.S. examples of public market data are the U.S. Census Bureau and the Bureau of Labor & Statistics , both of which offer helpful information on the state of various industries nationwide.
Commercial Sources
These sources often come in the form of market reports, consisting of industry insight compiled by a research agency like Pew , Gartner , or Forrester . Because this info is so portable and distributable, it typically costs money to download and obtain.
Internal Sources
Internal sources deserve more credit for supporting market research than they generally get. Why? This is the market data your organization already has!
Average revenue per sale, customer retention rates, and other historical data on the health of old and new accounts can all help you draw conclusions on what your buyers might want right now.
Now that we've covered these overarching market research categories, let's get more specific and look at the various types of market research you might choose to conduct. 
Types of Market Research
Customer Satisfaction and Loyalty Research
Brand Awareness Research
Campaign Research
1. Interviews
Interviews allow for face-to-face discussions (in-person and virtual) so you can allow for a natural flow or conversation and watch your interviewee's body language while doing so. 
Your interviewees can answer questions about themselves to help you design your buyer personas. These buyer personas describe your ideal customer's age, family size, budget, job title, the challenges they face at work, and similar aspects of their lifestyle. Having this buyer profile in hand can shape your entire marketing strategy, from the features you add to your product to the content you publish on your website.
2. Focus Groups
Focus groups provide you with a handful of carefully-selected people that you can have test out your product, watch a demo, provide feedback, and/or answer specific questions.
This type of market research can give you ideas for product differentiation, or the qualities of your product that make it unique in the marketplace. Consider asking your focus group questions about (and showing them examples of) your services, and ultimately use the group's feedback to make these services better.
3. Product/Service Use Research
Product or service use research offers insight into how and why your audience uses your product or service, and specific features of that item. This type of market research also gives you an idea of the product or service's usability for your target audience. 
In a 2020 report , respondents rated usability testing most highly in terms of usefulness for discovering user insights (rating it 8.7 out of 10). By comparison, digital analytics was rated 7.7, and user surveys 6.4.
4. Observation-Based Research
Observation-based research allows you to sit back and watch the ways in which your target audience members go about using your product or service, what works well in terms of UX , what roadblocks they hit, and which aspects of it could be easier for them to use and apply. 
5. Buyer Persona Research
Buyer persona research gives you a realistic look at who makes up your target audience, what their challenges are, why they want your product or service, what they need from your business and brand, and more. 
6. Market Segmentation Research
Market segmentation research allows you to categorize your target audience into different groups (or segments) based on specific and defining characteristics — this way, you can determine effective ways to meet their needs, understand their pain points and expectations, learn about their goals, and more. 
7. Pricing Research
Pricing research gives you an idea of what similar products or services in your market sell for, what your target audience expects to pay — and is willing to pay — for whatever it is you sell, and what's a fair price for you to list your product or service at. All of this information will help you define your pricing strategy . 
8. Competitive Analysis
Competitive analyses are valuable because they give you a deep understanding of the competition in your market and industry. You can learn about what's doing well in your industry, what your target audience is already going for in terms of products like yours, which of your competitors should you work to keep up with and surpass, and how you can clearly separate yourself from the competition . 
9. Customer Satisfaction and Loyalty Research
Customer satisfaction and loyalty research give you a look into how you can get current customers to return for more business and what will motivate them to do so (e.g. loyalty programs , rewards, remarkable customer service). This research will help you discover the most-effective ways to promote delight among your customers .
10. Brand Awareness Research
Brand awareness research tells you about what your target audience knows about and recognizes from your brand. It tells you about the associations your audience members make when they think about your business and what they believe you're all about.  
11. Campaign Research
Campaign research entails looking into your past campaigns and analyzing their success among your target audience and current customers. It requires experimentation and then a deep dive into what reached and resonated with your audience so you can keep those elements in mind for your future campaigns and hone in on the aspects of what you do that matters most to those people. 
Now that you know about the categories and types of market research, let's review how you can conduct your market research .
Here's how to do market research step-by-step.
How to Do Market Research
Define your buyer persona.
Identify a persona group to engage.
Prepare research questions for your market research participants.
List your primary competitors.
Summarize your findings.
1. Define your buyer persona.
Before you dive into how customers in your industry make buying decisions, you must first understand who they are.
This is where your buyer personas come in handy. Buyer personas — sometimes referred to as marketing personas — are fictional, generalized representations of your ideal customers.
They help you visualize your audience, streamline your communications, and inform your strategy. Some key characteristics you should be keen on including in your buyer persona are:
Age
Income
Major challenges
The idea is to use your persona as a guideline for  how to effectively reach and learn about the real audience members in your industry. Also, you may find that your business lends itself to more than one persona — that's fine! You just need to be  thoughtful about each specific persona when you're optimizing and planning your content and campaigns.
To get started with creating your personas, check out these free templates , as well as this helpful tool.  
2. Identify a persona group to engage.
Now that you know who your buyer personas are, use that information to help you identify a group to engage to conduct your market research with — this should be a representative sample of your target customers so you can better understand their actual characteristics, challenges, and buying habits.
The group you identify to engage should also be made of people who recently made a purchase or purposefully decided not to make one. Here are some more guidelines and tips to help you get the right participants for your research. 
How to Identify the Right People to Engage for Market Research
When choosing who to engage for your market research, start by focusing on people who have the characteristics that apply to your buyer persona. You should also:
Aim for 10 participants per buyer persona.
We recommend focusing on one persona, but if you feel it's necessary to research multiple personas, be sure to recruit a separate sample group for each one.
Select people who have recently interacted with you.
You may want to focus on people that have completed an evaluation within the past six months — or up to a year if you have a longer sales cycle or niche market. You'll be asking very detailed questions so it's important that their experience is fresh.
Gather a mix of participants.
You want to recruit people who have purchased your product, purchased a competitor's product, and decided not to purchase anything at all. While your customers will be the easiest to find and recruit, sourcing information from those who aren't customers (yet!) will help you develop a balanced view of your market. 
Here are some more details on how to select this mix of participants:
Pull a list of customers who made a recent purchase. As we mentioned before, this is usually the easiest set of buyers to recruit. If you're using a CRM system, you can run a report of deals that closed within the past six months and filter it for the characteristics you're looking for. Otherwise, you can work with your sales team to get a list of appropriate accounts from them.
Pull 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 make a purchase. Again, you can get this list from your CRM or from whatever system your Sales team uses to track deals.
Call for participants on social media. Try reaching out to the folks that follow you on social media, but decided not to buy from you. There's a chance that some of them will be willing to talk to you and tell you why they ultimately decided not to buy your product.
Leverage your own network. Get the word out to your coworkers, former colleagues, and LinkedIn connections that you're conducting a study. Even if your direct connections don't qualify, some of them will likely have a coworker, friend, or family member who does.
Choose an incentive. Time is precious, so you'll need to think about how you will motivate someone to spend 30-45 minutes on you and your study. On a tight budget? You can reward participants for free by giving them exclusive access to content. Another option? Send a simple handwritten 'thank you' note once the study is complete. 
3. Prepare research questions for your market research participants.
The best way to make sure you get the most out of your conversations is to be prepared. You should always create a discussion guide — whether it's for a focus group, online survey, or a phone interview — to make sure you cover all of the top-of-mind questions and use your time wisely.
(Note: This is not intended to be a script. The discussions should be natural and conversational, so we encourage you to go out of order or probe into certain areas as you see fit.)
Your discussion guide should be in an outline format, with a time allotment and open-ended questions for each section.
Wait, all open-ended questions?
Yes — this is a golden rule of market research. You never want to "lead the witness" by asking yes and no questions, as that puts you at risk of unintentionally swaying their thoughts by leading with your own hypothesis. Asking open-ended questions also helps you avoid one-word answers (which aren't very helpful for you).
Example Outline of a 30-Minute Survey 
Here's a general outline for a 30-minute survey for one B2B buyer. You can use these as talking points for an in-person interview, or as questions posed on a digital form to administer as a survey to your target customers.
Background Information (5 Minutes)
Ask the buyer to give you a little background information (their title, how long they've been with the company, and so on). Then, ask a fun/easy question to warm things up (first concert attended, favorite restaurant in town, last vacation, etc.).
Remember, you want to get to know your buyers in pretty specific ways. You might be able to capture basic information such as age, location, and job title from your contact list, there are some personal and professional challenges you can really only learn by asking.
Here are some other key background questions to ask your target audience:
Describe how your team is structured.
Tell me about your personal job responsibilities.
What are the team's goals and how do you measure them?
What has been your biggest challenge in the past year?
Now, make a transition to acknowledge the specific purchase or interaction they made that led to you including them in the study. The next three stages of the buyer's journey will focus specifically on that purchase.
Awareness (5 Minutes)
Here, you want to understand how they first realized they had a problem that needed to be solved without getting into whether or not they knew about your brand yet.
Think back to when you first realized you needed a [name the product/service category, but not yours specifically]. What challenges were you facing at the time?
How did you know that something in this category could help you?
How familiar were you with different options on the market?
Consideration (10 Minutes)
Now you want to get very specific about how and where the buyer researched potential solutions. Plan to interject to ask for more details.
What was the first thing you did to research potential solutions? How helpful was this source?
Where did you go to find more information?
If they don't come up organically, ask about search engines, websites visited, people consulted, and so on. Probe, as appropriate, with some of the following questions:
How did you find that source?
How did you use vendor websites?
What words specifically did you search on Google?
How helpful was it? How could it be better?
Who provided the most (and least) helpful information? What did that look like?
Tell me about your experiences with the sales people from each vendor.
Decision (10 Minutes)
2. SWOT Analysis Template
 
 A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis looks at your internal strengths and weaknesses, and your external opportunities and threats within the market.
A SWOT analysis highlights direct areas of opportunity your company can continue, build, focus on, and work to overcome.
 
Download a free, editable SWOT Analysis template here. 
3. Market Survey Template
Both market surveys and focus groups ( which we'll cover in the next section ) help you uncover important information about your buyer personas , target audience, current customers, market, competition, and more (e.g. demand for your product or service, potential pricing, impressions of your branding, etc.).
Surveys should contain a variety of question types, like multiple choice, rankings, and open-ended responses. Ask quantitative and short-answer questions to save you time and to more easily draw conclusions. (Save longer questions that will warrant more detailed responses for your focus groups.)
Here are some categories of questions you should ask via survey: 
Demographic questions
Download a free, editable Market Survey template here. 
4. Focus Group Template
Focus groups are an opportunity to collect in-depth, qualitative data from your real customers or members of your target audience. You should ask your focus group participants open-ended questions. While doing so, keep these tips top of mind:
Set a limit for the number of questions you're asking (after all, they're open-ended). 
Provide participants with a prototype or demonstration.
Ask participants how they feel about your price.
Ask participants about your competition.
Offer participants time at the end of the session for final comments, questions, or concerns.
Market Research Examples 
1. Disney uses kid-centric focus groups to test new characters and ideas.
The Walt Disney Company can spend millions crafting what its Animation Studio team believes is a worthwhile story, but it wisely focuses on its intended audience — children — when testing how well a character or topic performs. 
A few times each year, Disney executives meet with preschoolers and kindergartners in kid-centric focus groups to get their opinions and insights on TV episodes, Disney characters, and more. 
Why is this an effective market research strategy? Because children are ultimately the audience Disney hopes to delight — so collecting their feedback is invaluable to iterating on their existing content and ensuring it continues to meet its audiences' preferences.
2. KFC tested its meatless product in select markets before launching nationwide.
In 2019, KFC began developing and testing a new meatless version of its chicken. Rather than instantly rolling the product out nationwide, however, it started small: In select stores in the Atlanta, Georgia area . 
This is an easy, effective example of conducting market research to determine how well a new product sells on a smaller scale before dedicating too many resources to it. If the meatless chicken flopped in Georgia, KFC would need to change the product before re-launching it to the market.
3. Yamaha conducted a survey to determine whether they should use knobs or sliding faders on the Montage keyboard.
When Yamaha, a Japanese-based corporation that produces a variety of products ranging from motorcycles to golf cars to musical instruments, began developing its new Montage keyboard, the team was unsure whether to use knobs or sliding faders on the product.