What is Marketing research?

Kamila Lemanska
May 5, 2021
3 min read

Updated: May 19, 2021

Marketing research process is a six step system which includes problem definition, development of an approach to the problem, research design formulation, data collection, data preparation and analysis, and report preparation and presentation. This process and research helps companies find their target markets as well as gain opinions and feedbacks which essentially lets companies understand what consumers want.

1. Problem definition

Define a problem or opportunities - in depth interviews and discussion groups
assess situations in the marketplace - personal interviews and surveys
testing cause and effect relationships - estimation

2. Development of an approach to the problem

defining the approach influenced by the data collected

3. Research design formulation

framework for the research which helps provide information for decision making
this could be: secondary data, plan of data analysis, questionnaire design, quantitative data methods, qualitative research

4. Data collection

collecting primary research through: interviews, emails, phone calls, etc.

5. Data preparation and analysis

an inspection of the data collected, organising, cleaning and highlighting most useful data
carefully analysing data and validating results

6. Report preparation and presentation

documented written report which culminates and answers all six steps above
understandable, clean format to allow easy decision making including a conclusion, graphs, charts and recommendations

Market research is conducted through various ways of collecting data such as through the six step system. This is usually used by companies who are testing out new products or wish to gain insight on their consumers thoughts and feedback which boosts competitive advantage. Data is usually collected in the form of a survey whether it be face to face, through the phone or online. Once a thorough and correct research is concluded companies are able to adjust their relationships with their customer, identify more opportunities as well as identify problems. This system helps understand the position of the company in terms of reputation and guide the company into a better position in the market. Marketing research also helps plan ahead but should be practised every so often as trends change and so do consumers. The important fact is that the research conducted correctly can estimate sales and implement advertising.

Market research analytics is all about attaining information about customers and target markets which make valuable business insights and generate results through data visualisation tools in an understandable way. The information gathered is usually done online which makes it even more effective as all data is current and collected in real time. This allows a faster and more advanced analysis of data. Companies such as datapine offer a software which collects, stores and categorises the data all available online. A quick, cost reduced and manageable way to store all the information without the fear of ever loosing it. Market research is the information that consumers want you to hear however market analytics is the online patterns and behaviours of said consumers that was not shared in the market research and can be stored in an online database. The data collected through marketing research and analytics essentially helps choose the correct marketing methods however data is not always correct. A great example is the feedback from a focus group about the new Dyson vacuum where there was negativity surrounding the see through design where dirt is collected turned out to be the focal and key point in selling the product. The data collected was correct however is not always accurate. Most data is 10-20% accurate this makes this method not always considered by marketers. Even though the percentage is low, if the correct marketing approach is put to place, the 10-20% can still work well with carefully selected marketing tactics or campaigns. However surveys and questionnaires may still provide consumers with questions and answers which sway towards placing the company in a better light making this to their advantage. It is important to allow free opinions and construct surveys based on neutral relations.