Effective market research process for businesses

What is market research? 

Market Research is the essential first step in gathering information and data related to customers, competitors and target markets. This process helps businesses determine the right direction and build appropriate strategies towards sustainable and long-term development.

Each business will choose different research methods depending on its specific goals, such as market penetration, launching new products or services, or implementing communication campaigns. However, regardless of the purpose, market research is still a necessary task, ensuring that it provides complete and accurate information so that businesses can plan appropriate strategies and achieve high business efficiency.

Types of market research

To gain a comprehensive and in-depth view of the market, businesses can apply many different types of research. Below are some common methods that help businesses collect information effectively and make accurate strategic decisions.

Primary market research  

Primary market research is the process of collecting data directly from the target market through methods such as observation, surveys, and testing. The information collected is usually classified into two main groups :

• Exploratory information: Helps identify and clarify previously poorly understood issues.
• Conclusive information: Provides data to confirm and clarify issues identified during the exploration phase.

The result of primary market research is raw data collected from participants. Businesses then synthesize and analyze this information to gain deeper insights through trend detection and comparative methods.

Secondary market research

Secondary market research is a method that uses data that has been previously collected and analyzed by external sources, not owned by the business. This data is often freely available, saving costs compared to primary research .

Secondary research is often conducted as a first step before conducting primary research. However, the information gathered from this method may not be detailed enough to explain the entire results, so it is often used to support and analyze further. To handle this large amount of data, businesses need effective management options, as manual processing can be complex and expensive.

Why businesses need market research

Understanding the market is a key factor for sustainable development and success. Here is why businesses cannot ignore market research.

Purpose of market research

The goal of market research is not only to solve problems but also to help businesses better understand the factors that affect their success. For any business, this process aims to achieve the following goals:

• Explore market needs: Market research allows businesses to better understand the needs and desires of customers, thereby helping to provide products and services that meet market needs.
• Competitor analysis: Through research, businesses can gain a deeper understanding of their competitors, thereby building effective competitive strategies to gain an advantage in the market.
• Brand positioning: Market research helps businesses determine the brand's position in the hearts of customers and in the market, supporting the building of a strong brand image and attracting customers.
• Strategic decision making: Information from market research forms the basis for important strategic decisions such as new product development, pricing, distribution channel selection, and promotional marketing planning.
• Evaluating strategic effectiveness: Market research helps businesses evaluate the success of implemented strategies, thereby allowing them to adjust and optimize strategies to maximize profits and strengthen their competitive position.

The role of market research

Market research provides businesses with valuable information to identify opportunities and exploit new business potentials. It helps businesses use resources more effectively and adjust their development direction appropriately. In addition, market research helps minimize risks and adjust strategies to cope with market fluctuations, ensuring stable business operations. Information collected from market research is the foundation for building appropriate business, marketing and advertising strategies, and helps businesses adjust to better meet the needs of customers and consumers.

Effective ways to do market research 

To maximize the benefits of market research , businesses need to apply effective research methods. Below are approaches that help businesses collect the most accurate and detailed information about the market:

• Customer Behavior Observation: Monitor customer behavior and spending habits in their natural environment.
• Market research through face-to-face interviews: Conduct face-to-face interviews with customers to collect detailed opinions and feedback.
• Group and in-depth interviews: Conduct group or in-depth interviews to collect information from many individuals at once or to delve deeper into individual data.
• Telephone Market Research: Using phone calls to collect information from customers, this can be effective for reaching a large audience.
• Email Surveys: Send email surveys to customers to collect opinions and data quickly and affordably.
• Market Research Through Online Surveys: Use online survey platforms to reach and collect data from a large number of consumers.
• Pilot: Test a product or service on a small group before rolling it out on a large scale to evaluate effectiveness and get feedback.

6 steps to successful market research  

To get the best results from your market research, it is important to follow a clear and rigorous process. Here are six basic steps to help businesses ensure the effectiveness and accuracy of their market research.

Define goals

Before starting research, businesses need to clearly define what their research goals are: Learning about new customers, analyzing competitors or evaluating potential markets?

Choosing the right research method

Based on the identified goals, businesses can choose methods including market surveys, direct interviews, statistics, testing, etc. Depending on the level of suitability, businesses will flexibly choose. 

Design survey questionnaire

The survey questionnaire design should be clear, easy to understand, and directed towards the research objectives. Questions should be designed to collect specific and useful information.

Conducting effective market research not only gives businesses insight into customer needs and trends, but also opens up opportunities to optimize marketing strategies. Investing in market research is investing in the future success of your business.