Marketing research: A quick primer for business leaders

Marketing research can provide valuable insights to help business leaders make better decisions, from product development to brand positioning. Research insights can help a company gain a competitive advantage, attract more customers, or expand into new markets. 

However, many leaders miss opportunities to leverage the power of marketing research. They may not understand the value of investing in research or recognize when or why it’s needed. And even if they do see a need, they may not know where to start. 

By deepening your understanding of marketing research, you’ll be better positioned to reap the benefits for your business. Read on for a brief overview of marketing research, including what it is, when it’s most beneficial, what steps are involved, and how to get started.  

What is marketing research? 

Marketing research is the “process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem,” as defined by authors and educators Alvin C Burns and Ronald F. Bush. This research is typically conducted by a marketing research professional or firm.  

Marketing and business leaders can use research findings to better understand potential issues or opportunities, identify marketplace changes and trends, understand customer perceptions, evaluate and test new concepts and strategies, or identify the best path forward.  

Primary research versus secondary research 

There are two types of data sources for marketing research: primary and secondary.  

• Primary research produces new information. It involves gathering and analyzing first-hand data directly from sources, such as though surveys, interviews or focus groups, and is therefore typically more time-consuming and expensive than secondary research.   

• Secondary research leverages existing information, such as from industry reports or government data. Many times, this is the best place to start for a research project, as it tends to be faster and less costly than primary research.  

Qualitative data versus quantitative data 

There are also two types of marketing research data: qualitative and quantitative. 

• Qualitative data is non-numeric and is most valuable early in the decision phase, when it is used for exploratory purposes (i.e., if you need to generate ideas or better understand customer perceptions). For example, if your company wants to launch a new version of a product, you could interview customers to better understand what they like and don’t like about the existing product. The qualitative feedback gathered from these interviews would provide direct insights to help inform product development.  

• Quantitative data is numerical and is most valuable later in the decision phase, when it is used for confirmatory purposes (i.e., if you have ideas and need to confirm them). For example, if you are trying to decide where to host a future company event, you could survey your customers and prospects to find out which location they prefer. The statistical results of this survey would provide metrics on which option is most popular, increasing your chances of a successful event.  

When is marketing research needed? 

Not every business decision requires marketing research. However, there are times when it’s invaluable.  

If your leadership team is facing a crucial and costly marketing decision that’s really important to get right, it’s likely worth investing in research. Additionally, when you feel like you don't have enough information to move forward on an important decision, and you have the time to conduct research, it’s worth considering. 

What are the steps in the marketing research process? 

Marketing research generally follows a five-step process: 

1. Identify a research need: What do you want to know and why do you want to know it? Does this information already exist somewhere or do you need to develop it? 

2. Design the research study: Will it be qualitative, quantitative or both? What data sources will be used?  

3. Conduct the study: How and when will you collect the data? 

4. Analyze the results: Do you see any patterns, correlations or other notable findings? What are the key takeaways? 

5. Share the insights: Who will you share the research findings with? What information will you report to them and how will you present it? 

How can a business get started with marketing research? 

Marketing research can provide immense value to marketing and business leaders by informing decision making with key insights. However, it’s also an investment. 

Therefore, the first step in any marketing research project is to identify a research need. Before embarking on a research project, you need to know what your research question is. In other words: What are you trying to learn, and how will having that information help you take action?  

You should also consider when you need the information. While some research projects can be completed relatively quickly (especially if they use secondary research), more complex projects may take several weeks or months.  

Finally, you need to consider whether the benefits of the research project will outweigh the cost. If it doesn’t, be prepared to move forward without it.