A Standard Approach to Research Inquiries
Marketing research serves as an indispensable tool for marketers and organizational leaders to make informed decisions. Conducting marketing research requires specialized skills that extend beyond the basics covered in this discussion. Nonetheless, it’s crucial for all marketers to grasp the fundamental methods and techniques involved in marketing research.
At some stage, marketing professionals are likely to oversee an internal marketing research project or collaborate with external agencies to execute a research initiative. Managers with a solid understanding of the research process are better equipped to define problems accurately and evaluate proposals from research specialists critically. This knowledge also enables them to assess the results and recommendations more effectively.
There are times when marketers must address marketing challenges independently, without the aid of internal or external research experts. Being well-versed in the fundamental steps of marketing research allows you to manage and even conduct a thorough investigation to gather the necessary information effectively.
Recognize the issues to help your Marketing Research
The initial step in any marketing research process is to precisely identify and define the problem you intend to solve. Begin by outlining the marketing or business issue that requires resolution, necessitating further information to devise an appropriate solution.
Then, specify the research objectives: What insights do you hope to gain by the conclusion of the research project? What specific information, advice, or recommendations must the research yield to justify the investment of time and resources by the organization?
Sharing the problem definition and research objectives with team members is crucial to garner their input and refine your understanding of the core issue and the necessary solutions. Often, the apparent problem may not be the actual issue needing resolution.
Collaborative discussions with stakeholders can sharpen your problem understanding, focus your approach, and help in setting priorities for the research. This is especially useful when resources or time constraints limit the scope of investigation.
To deepen your understanding of the problem, start brainstorming potential research questions that need exploration. Consider what questions must be answered to achieve the desired research outcomes. Identify the gaps in knowledge that marketing research aims to fill.
The objective at this stage is to formulate a series of broad, foundational questions that will guide your research endeavor. These questions will be revisited as the research progresses; initially, they serve to clarify the project’s scope, determine the necessary participants, assess existing information, and identify sources for the required data.
Applied Example: Marketing Research for a Barbershop App
To illustrate the marketing research process, let’s consider the example of a barbershop app designed to enhance customer engagement and streamline appointment bookings. Conducting thorough marketing research is crucial if you’re aiming to improve the app’s effectiveness and user satisfaction. Start by identifying the problem, then define your research objectives and formulate initial research questions:
Identifying Problems, Objectives, and Questions
Core Business Problem: The primary issue is determining how to increase user engagement and transaction volume through the barbershop app.
Research Objectives:
- Identify key user segments for the app.
- Develop strategies to enhance user interaction and increase bookings through the app.
Initial Research Questions:
- Who are the current users of the barbershop app?
- What features do they use the most?
- Why do they prefer using the app for booking appointments?
- What additional functionalities do users wish the app included?
- Who are the potential users not utilizing the app, and why have they not adopted it?
This structured inquiry helps in building a solid foundation for the marketing research, ensuring that all efforts are aligned with understanding and addressing the specific needs and challenges associated with the barbershop app.
Create a Marketing Research Strategy
Once the research problem has been defined, research objectives set, and preliminary questions posed, the next essential step is to develop a research plan that aligns with your marketing strategy. This plan is crucial as it specifies exactly what information is required to address your questions and achieve your objectives.
Consider what specific data is required:
- Do you need insights into customer opinions or behaviors related to your product or service? Are you gathering data on demographic, sales, or revenue statistics?
- Is there a need to understand competitors’ offerings, or how to make potential customers take notice of your service?
Additionally, determine the timeline and budget constraints for your project.
With a clear understanding of the required information, timeline, and budget, you can then craft your research strategy. This involves deciding how you will collect and analyze the data needed. Some data may already be accessible via secondary research—utilizing research tools that analyze information collected for other purposes by entities like government agencies or industry associations.
Other data might require exploratory research, involving direct engagement with customers to delve into your specific research questions. Your project could include a mix of both secondary and exploratory research methods.
Depending on your goals and resources, the scale of the research can vary. Smaller projects may suffice for initial insights, whereas more detailed questions might necessitate larger-scale studies involving many participants. The research plan should clearly outline the types of data you’ll gather—both primary and secondary—and describe how this data will be used to address your research needs.
Furthermore, your data collection efforts should align with a detailed analysis plan. Different analytical approaches will yield various outcomes, so ensure your analysis method matches the data type and intended project results. Simpler research designs generally require less complex analytical methods, while more intricate studies, such as those exploring causality or customer trade-offs, may need more sophisticated analytical skills and potentially more resources.
The research plan also specifies the roles and responsibilities regarding data collection, analysis, interpretation, and reporting. Whether conducted by a dedicated marketing manager or outsourced to a research firm, it’s crucial to maintain supervisory oversight to ensure the research meets its objectives and enhances your marketing strategy.
Lastly, the plan should detail how the findings will be interpreted and reported, taking into consideration the internal audiences for the research. Effective reporting formats should be chosen to ensure the findings are understandable and actionable for decision-makers within the organization, such as senior executives, who often rely on marketing research to support and validate their strategic decisions. Ensuring their buy-in from the beginning is advisable to align expectations and foster receptivity to the research outcomes.
Applied Example: A Bookends Research Plan
After discussing the outcomes of your initial problem identification with Dan, who’s excited about the potential enhancements to his barbershop app, you explain that the next step is to create a detailed plan to address the research problem. This plan will focus on gathering and analyzing data to answer the research questions you’ve identified.
Dan is enthusiastic about proceeding but mentions that budget constraints are a concern. Despite this, you both agree that a strategic approach can yield significant insights. Here’s the research plan you develop:
Identifying Data Types, Timing and Budget, Data Collection Methods, Analysis, and Interpretation
Types of data needed:
- Demographics and user engagement patterns of current app users to understand who is using the app and how.
- Specific features usage data within the app to identify popular or underused functionalities.
- Local demographic data to ascertain potential user bases not yet using the app.
Timing & budget: Complete the project within one month with minimal spending.
Data collection methods:
- Deploy a user survey through the app using built-in polling features to collect qualitative data on user satisfaction and feature requests.
- Analyze existing app analytics to gather data on user engagement and feature usage.
- Utilize free demographic data sources to understand the broader market environment.
- Conduct brief online focus groups with non-users to gain qualitative insights into barriers to adoption.
Analysis plan: Use Google Sheets to organize and analyze the data. A local university analytics student, recruited as an intern, will assist in identifying usage patterns and potential market segments.
Interpretation and reporting: Together, you and Dan will examine the data to discover actionable insights. You will prepare a detailed report using PowerPoint to outline significant results, key findings, and strategic recommendations for app improvements and marketing strategies.
This plan leverages a mix of research methods, including direct user feedback and analytical data review, to effectively tackle the research problem. By blending quantitative data from app analytics with qualitative research from user surveys and focus groups, the strategy provides a robust foundation to enhance the barbershop app’s functionality and user engagement.
Execute the Marketing Research following this process
Conducting research can be a fun and exciting part of the marketing research process. After struggling with the gaps in your knowledge of market dynamics—which led you to embark on a marketing research project in the first place—now things are about to change. Conducting research begins to generate information that helps answer your urgent marketing questions.
Typically data collection begins by reviewing any existing research and data that provide some information or insight about the problem. As a rule, this is secondary research.
Prior research projects, internal data analyses, industry reports, customer-satisfaction survey results, and other information sources may be worthwhile to review. Even though these resources may not answer your research questions fully, they may further illuminate the problem you are trying to solve.
Secondary research and data sources are nearly always cheaper than capturing new information on your own. Your marketing research project should benefit from prior work wherever possible. After getting everything you can from secondary research, it’s time to shift attention to primary research, if this is part of your research plan.
Primary research involves asking questions and then listening to and/or observing the behavior of the target audience you are studying. In order to generate reliable, accurate results, it is important to use proper scientific methods for primary research data collection and analysis. This includes identifying the right individuals and number of people to talk to, using carefully worded surveys or interview scripts, and capturing data accurately.
Without proper techniques, you may inadvertently get bad data or discover bias in the responses that distorts the results and points you in the wrong direction. The module on Marketing Research Techniques discusses these issues in further detail, since the procedures for getting reliable data vary by research method.
Applied Example: Getting the Data on the Barbershop App
Dan is enthusiastic about the research plan and ready to dive into the marketing research process for his barbershop app. You begin by gathering secondary data, analyzing the app’s usage data over the past year, including user engagement metrics such as session frequency, duration, user demographics, and the popularity of specific features.
Next, you access publicly available demographic data about the local area from sources like the U.S. Census Bureau. This data provides insights into the age range, income levels, and other relevant demographic factors of potential app users within your target metro area.
Transitioning to primary research, you and Dan develop a short survey that investigates users’ attitudes toward the barbershop app. Questions focus on their reasons for using the app, features they find most useful, where else they might book barbershop appointments, and what additional features they would like to see.
To encourage participation, Dan decides to offer a small discount on their next booking to those who complete the survey. This incentive not only boosts survey response rates but also promotes further use of the app, balancing customer engagement with valuable feedback collection.
For more direct feedback, you conduct “on the street” interviews with potential app users who have never downloaded or used the app. You ask them about their current methods of booking barbershop appointments, their preferences for tech solutions in personal grooming, and what features or benefits could persuade them to use Dan’s app.
This blend of primary and secondary research methods forms the backbone of your marketing research.
By integrating user feedback with broader demographic data, you’re better positioned to refine the app’s marketing strategy and feature set, ensuring it meets the needs and expectations of both current and potential users.
Despite budget constraints, these efforts are yielding meaningful insights that help propel the app toward greater success.
Evaluate and Present Results based on your Marketing Research Process
Analyzing the data obtained in a market survey is a critical step in the marketing research process.
This phase involves transforming the primary and/or secondary data into actionable insights that answer the research questions. These insights are then formatted into a presentation or detailed report, tailored for managerial use.
The first step in analyzing the data involves formatting, cleaning, and preparing the data for analysis using appropriate analytical techniques.
Data are then tabulated to reveal customer opinions, purchasing behaviors, and actual revenue figures—addressing the core research questions through a structured approach. Depending on the complexity of the research objectives, the analysis may utilize both simple and sophisticated techniques.
Common methods include regression analysis to identify correlations, conjoint analysis for understanding preferences, predictive modeling to forecast trends, and analysis of unstructured data like social media posts to gain contextual insights.
Effective analysis is crucial as it forms the basis for interpretation—the “so what?” factor of the research. This stage involves dissecting the data to construct a clear narrative of the findings, interpreting what the data signify, and offering recommendations for actionable strategies.
Key findings might highlight which market segments to target, the primary reasons customers prefer competitors’ products, and necessary product improvements.
It’s essential that individuals who are well-versed in the business context participate in data interpretation, as they are best positioned to draw significant conclusions and formulate strategic recommendations from the findings. Marketing research reports should seamlessly integrate analysis and interpretation to meet the project’s objectives.
The final report of a marketing research project can be formatted as a written document or a slide presentation, depending on the organizational culture and managerial preference.
Slide presentations are often favored for initial discussions with internal stakeholders, providing a visual and concise summary of the results. For more complex projects, a detailed written report may be more suitable as it allows for an in-depth exploration of the data and its nuances, offering a valuable reference for future strategic decisions.
This structured reporting ensures that all findings are communicated effectively, facilitating informed decision-making that aligns with the initial steps of the marketing research process.
Applied Example: Analysis and Insights for the Barbershop App
After navigating the initial challenges of data collection, a crucial component of the marketing research process, you now have a comprehensive dataset ready for detailed analysis.
The first step in market research, gathering and organizing data, is behind you, and you’re excited to dive into what it reveals about the barbershop app’s user dynamics.
Your statistician cousin, Marina, excels in this next phase. Utilizing her skills, she analyzes both the app usage data and local census data, identifying demographic profiles that mirror potential user segments. This approach is consistent with the first step of the marketing research approach, which is to understand the market and user base through robust data analysis.
Marina cross-references the app’s user data with these demographic profiles to pinpoint who is and isn’t using the barbershop app.
Integrating customer survey data with app usage statistics, she further refines these segments, categorizing them by their frequency of app usage, spending through the app, and their motivations for either choosing or bypassing the barbershop app.
This analysis progressively paints a clearer picture of the app’s user base: who they are, why they use the app, why some potential users haven’t adopted it, and what role the app plays in their grooming routines.
Several high-priority segments soon emerge, characterized by their usage frequency, geographic proximity to partnered barbershops, and demonstrated loyalty through repeat bookings. These segments are identified as key targets for enhancing the app’s relevance and integration into users’ lives.
You document these findings as “recommendations to be considered” while you and your uncle contemplate the optimal marketing strategies to further engage these key segments.
This part of the process aligns with understanding what the first step in the marketing research process is—identifying and analyzing the target audience to inform strategic decisions.
By tailoring the app’s features and marketing efforts to meet the specific needs and preferences of each identified segment, you aim to boost user engagement and overall satisfaction with the barbershop app.
Implement Solutions From Marketing Research
The completion of the report and the delivery of the presentation might seem like the conclusion of the marketing research project, but it’s actually just a pivotal point. The most critical phase, often considered the first step in the marketing research process is to take action based on your research findings.
This step involves implementing the recommendations provided, a task that might appear straightforward if the research supports the current trajectory of the organization. In such cases, the action step can invigorate and accelerate the team’s efforts in the same direction, reinforcing the value of the marketing research process.
However, the situation becomes more complex when the findings suggest a new direction or a significant adjustment is necessary. Here, it’s crucial to invest time in helping managers understand the research outcomes.
This involves explaining why a shift is advisable and how it can benefit the business. As with any significant business decision, this requires deep contemplation and careful strategic planning.
Managers must consider new strategies, tactics, and resource allocations to effectively implement changes.
By making the research findings accessible and useful, the marketing research serves as a continuous reference and guide, aiding the organization as it plans, executes, and, if necessary, adjusts its approach to achieve the desired outcomes.
It’s important to note that many marketing research projects do not translate into action.
This could be due to the report being too technical, the conclusions not providing actionable insights, or the failure to present clear strategies for applying the research findings in management decisions.
These pitfalls can be avoided by maintaining a focus on the research objectives throughout the project and dedicating adequate time and resources to interpret the findings effectively for those who need to act on them.
This phase underlines why the first step of the marketing research approach is crucial: it sets the foundation for all subsequent actions and ensures that the insights gained are not only understood but are also practically applicable, guiding strategic decisions and operational improvements.
Applied Example: Barbershop App’s New Customer Campaign
Your marketing research process has successfully identified three key customer segments for the Barbershop app, based on demographics, lifestyle, and usage patterns.
These groups are named:
- Style-Conscious Professionals,
- Busy Parents, and
- Trend-Setting Students.
Each segment has shown potential in terms of engagement and profitability, yet until now, targeted efforts to specifically attract them have been minimal.
With the first step in the marketing research process complete—identifying and understanding the target segments—you and Dan begin to strategize on the marketing mix tailored for each group.
You consider what features and services would appeal to each segment. For Style-Conscious Professionals, you think about offering premium appointment slots and upscale grooming services.
For Busy Parents, convenient, quick booking features and loyalty discounts could be attractive. For Trend-Setting Students, incorporating trendy styles and student discounts might draw them in.
You also plan targeted marketing campaigns that include personalized promotions and messages that would resonate with each group, discussing how to effectively communicate these offers through the app and via social media platforms. Furthermore, you strategize on enhancing the app’s functionality to better meet these users’ needs, such as improving the booking interface or adding new service options.
This project is not only a critical business venture with significant implications for Dan’s app but also serves as a dynamic testing ground for marketing theories and strategies. It offers a firsthand experience in applying what you’ve learned in your marketing courses to real-world scenarios.
By following the steps of the marketing research approach, you’re leveraging your findings to craft a precise marketing strategy that aims to boost user engagement, expand the customer base, and ultimately enhance the overall success of the Barbershop app.
This example highlights how essential the initial stages of marketing research are in paving the way for effective, informed decision-making and strategic planning in a business context.
Confirm Your Comprehension of Marketing Research Process and its First Steps
Engage with the questions below to evaluate your grasp of the topics discussed in this section. This brief quiz is designed to reinforce your learning and does not contribute to your final grade. You have the opportunity to retake this quiz as many times as needed.
Utilize this quiz to assess your understanding and determine your next steps:
- Review the previous content if you need more clarity, or
- Proceed to the next section if you’re confident in your understanding.
This is a valuable tool to ensure you are fully prepared as you continue with the course material.
Varieties of Marketing Research Process
Your research plan will integrate various types of marketing research, each designed to identify, collect, analyze, and present solutions to problems your target audience perceives. These types are essential components of the marketing research process, ensuring that the data collected is appropriate and actionable for your audience.
Exploratory Research
Exploratory research is the initial phase in the marketing research process, where fresh ideas are tested, and initial data is gathered. As a key component of market research, this approach utilizes secondary data that already exists to provide insights about your objectives.
It allows you to stay open to discovering new ways to approach your research problem, adjusting your perspective based on the insights gathered from secondary sources like market reports and previous studies.
Descriptive Research
Following exploratory research, descriptive research involves testing the formulated research questions to determine their validity.
This method is vital for measuring how often and to what extent variables are correlated, using primary research techniques such as surveys, focus groups, or structured interviews.
Data collected directly from these sources helps define customer demographics, usage patterns, and competitive positioning, although researchers must be vigilant to avoid bias in data recording.
Causal Research
In the causal research phase, the focus is on understanding the cause-and-effect relationships between variables.
This is particularly useful in scenarios where market strategies might change, such as altering product prices or packaging.
The method can effectively utilize sales data and customer feedback to hypothesize and then test potential outcomes of these changes, ensuring that the conclusions drawn from the market research process reflect true causality rather than coincidental relationships.
Predictive Research
Predictive research aims to forecast future trends by analyzing current data trends, including sales data and customer behavior.
This type of research is essential for predicting future market conditions based on existing market data and is often supported by big data analytics.
By predicting future sales growth or market expansion, companies can make informed decisions on where to allocate resources to maximize efficiency and effectiveness.
Marketing Research Examples
- Customer Satisfaction: Utilizing tools like customer satisfaction surveys and focus groups helps companies ensure ongoing satisfaction and tailor products to consumer needs.
- Startups and Market Validation: For startups, primary research through surveys can quickly validate the market potential of a new idea or product, as seen with companies like Bridgecare.
- Product Line Expansion: Surveys and focus groups can also aid in deciding whether to expand a product line, by directly gathering consumer feedback on potential new products.
Employing Surveys in Marketing Research Process
Surveys are a foundational tool in the marketing research process, providing a rapid and cost-effective method to collect a broad array of data.
Whether utilizing open or closed-ended questions, surveys enable marketers to gather valuable insights from targeted demographics efficiently.
The results, often presented in analytical charts, are straightforward to interpret and can be directly applied to marketing strategies.
Incorporating continuous market research into your strategic planning helps prevent “Kodak moments” where opportunities are missed or market shifts are ignored.
By adhering to a structured market research process, companies ensure that their strategic decisions are data-driven and closely aligned with customer needs and market demands.
Companies like Link Gathering enhance this process by offering detailed marketing capabilities and access to a diverse range of respondents, ensuring that the data collected is both relevant and robust.
