Market Research

Market researchers conduct research and analysis, and provide reports and recommendations to help companies identify their target customers. They also help companies learn what their customers and prospective customers think about their products, brands, services, and company in general. For instance, before a company launches a new product, they can learn more about the size of the market for the product, who the competition is, how best to position the product in the marketplace, and even what the packaging should look like through market research. Market research is also used at various phases beyond product launch; companies may use it to learn how customers are using the product and their reaction. At the end of the launch, market research may continue to be conducted to find out how the product or service can be improved.

The market research industry provides two types of information to help companies learn more about customers’ perceptions, attitudes, and behaviors: primary research and secondary research. Primary research is new, original quantitative and qualitative research that is gathered directly from customers. Quantitative research has to do with measuring the quantity rather than quality of something. For example, the numbers gathered from survey results are quantitative market research, whereas the opinions shared in focus groups are qualitative (having to do with quality) research.

Face-to-face interviews, phone interviews, observational and focus groups, social media monitoring, and surveys are primary research methodologies. Observational research entails observing how people interact with products. Focus groups may be conducted in person or online. A focus group usually consists of a small group of people, from about six to ten, who have similar characteristics, e.g., age, work backgrounds, attitudes, geographic location, experience with certain products, companies, or services, etc. A moderator leads the focus group by discussing pre-established topics. Social media monitoring is done through market research tools such as Awario, Brandwatch, and TweetDeck, to monitor the online buzz about the company. Primary research allows clients to get a better idea of the effectiveness of their advertising and promotional campaigns. This helps them know where to invest their money and resources going forward.

Secondary research, which is also known as desk research, is general information that is less timely than primary research and is readily available. Secondary research already exists because it was created for other purposes. Secondary research entails gathering data such as statistics, industry reports, and studies from trade associations, government agencies, and other organizations.

Market research professionals work either on the client side or in a marketing or advertising agency that provides market research services. The client side means it’s a company that has an in-house market research department. Typically large companies like Walmart, Hewlett-Packard, Bank of America, and Cisco, among others, have their own market research departments to research the company’s industry, product categories, and customers. The advantage of working on the client side is it provides market research professionals the opportunity to focus on one company and industry.

Market research agencies are dedicated to providing market research for various clients on a wide variety of projects. These firms may specialize in certain areas. For instance, there are syndicated market research companies. In this type of company, the market research firm conducts research studies based on its own experience and methodologies, and the research is not for a specific client. Syndicated market research firms provide raw data, reports, presentations, etc., for the general public to purchase. There are also custom market research firms, which, as the name suggests, provide customized research to clients. Specialty market research firms specialize in certain areas, such as advertising industry research or product development research. There are also market research firms that specialize in online research.

One example of a large, independent, global market research company is Ipsos. Founded in France in 1975, this company has multiple areas of expertise: advertising research, marketing research, media, content, and technology research, opinion and social research, loyalty research, and global operations. The services it provides include exploring market potential and market trends and testing products and advertising. Ipsos studies audiences and their perceptions of various media, and measures public opinion trends around the world. It specializes in media and brand research, innovation, and strategy, social research and corporate reputation, customer and employee research, and survey management, data collection, and data delivery. As stated on its Web site, Ipsos aims to understand society, markets, and people, with “activity [that] consists in asking the right questions, i.e., those that enable the people we interview to express their opinions, desires and expectations. It also consists in observing, listening, and analysing; this is what our experts in qualitative research do every day.”

Market research professionals usually work in offices. Depending on their job, they may travel to other locations to conduct research, such as in-person interviews and observational and focus groups. They may also travel to clients’ offices for meetings and presentations. Most market research professionals work full time during business hours, and often work beyond business hours to meet deadlines. They may work in large companies on the client side or with market research companies that provide services to numerous clients.

Survey researchers work in corporations, research firms, polling organizations, colleges and universities, nonprofit organizations, and government agencies. Their work is a mixture of long hours alone at the computer, designing surveys and studying and analyzing data, and then working long hours off-site, to meet with clients, interview people, and monitor focus group sessions. Statisticians also typically work full time in companies that provide research and development services; they also work for federal government agencies, financial and insurance companies, universities and colleges, and management, scientific, and technical consulting services. They usually work in teams with other professionals and sometimes travel to set up research projects and surveys, or to monitor the data collection process.