Market research is the process of gathering and analyzing data on a product, service, industry, customer segment, or brand in order to make informed business decisions about how to best enter a market or grow in an existing one. Quality market research helps companies minimize risks and recognize opportunities.

Types of Market Research

There are two main types of market research – primary and secondary. Primary market research involves collecting first-hand data yourself using methods like surveys, focus groups, interviews, field research, and panels. Secondary market research means analyzing existing data from sources like government reports, industry associations, databases, journals, and your own company metrics.

Methods of Market Research

Some key market research methods include:

Quantitative research – Gathers numerical data that can be analyzed statistically. Examples are online surveys, mobile surveys, kiosk surveys, telephone interviews, longitudinal studies over time, and field research like test markets.
Qualitative research – Gathering insights through open-ended, conversational methods. Examples include in-depth interviews, ethnographic research, focus groups, and open-ended survey questions.
Observational research – Directly observing how consumers interact with products or tracking behaviors. This can mean visiting stores, watching social media, looking at website analytics, or monitoring Internet of Things device usage.
Data synthesis – Compiling and analyzing secondary data from existing sources. This allows you to tap into historical data at a granular level.

Goals of Market Research

Businesses leverage market research to:

Identify customer demographics, behaviors, needs, attitudes, and pain points
Assess demand and sizing for a product or service
Establish pricing models and price elasticity
Benchmark performance versus competitors
Track brand awareness and positioning
Monitor adoption of new offerings
Discover trends and forecast future growth
Reduce risks in decision making
Uncover new distribution channel opportunities

Market Research Industry Analysis

The global market research industry was valued at $81 billion in 2022 and is projected to grow to $175 billion by 2033 according to the analysis by Evolve Business Intelligence. Factors driving spending include increased data sources, lower barriers to conduct DIY research, and high demand for insights that drive innovation and growth opportunities.

Major market research companies include Nielsen, Kantar, GfK, Ipsos, and Westat. Large management consulting firms like Deloitte, PwC, and McKinsey also conduct primary research. Businesses invest most heavily in studies around target consumers, brand tracking, product concept testing, ad testing, customer satisfaction, and pricing analysis.

Market Research Report Examples

Recent examples of influential market research reports include:

The AI Chipset Market Size is expected to reach USD 228.65 Billion by 2033. The AI Chipset industry size accounted for USD 16.87 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 37.87% from 2023 to 2033.
The 5G in Healthcare Market Size is expected to reach USD 5.84 Billion by 2033. The 5G in Healthcare industry size accounted for USD 0.21 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 32.18% from 2023 to 2033.
The global AI Robots Market Size is expected to reach USD 138.19 Billion by 2033. The global AI Robots industry size accounted for USD 17.56 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 22.91% from 2023 to 2033.
The global Acupuncture Market Size is expected to reach USD 276.72 Bilion by 2033. The global Acupuncture industry size accounted for USD 54.16 Bilion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 17.72% from 2023 to 2033.
The global Smart Meter Market Size is expected to reach USD 57.21 Billion by 2033. The global Smart Meter industry size accounted for USD 22.75 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 9.66% from 2023 to 2033.

These provide examples of high-value market analysis showcasing trends and forward-looking insights.

Market Research Analyst Job Duties

Market research analysts support the creation of research studies and analyze the results. Core responsibilities include:

Design effective research methodologies and survey questions
Monitor progress of surveys and interviews
Ensure statistical validity of research samples
Clean, code, and analyze data using statistical tools
Identify key themes, trends and relationships in research findings
Contextualize insights with other data sources and industry knowledge
Make actionable recommendations to drive business decisions

Market research analysts need skills in statistical analysis, data mining, research methods, communication, and critical thinking. Many have undergraduate degrees in fields like statistics, business, social sciences, or communications.

Conclusion

Market research empowers businesses to make high-confidence, insight-driven decisions. With a clear understanding of your target audience and market derived from quality research, companies can launch differentiated offerings, enter new segments, and gain competitive advantage. Investing in market intelligence mitigates risk and enables seizing growth opportunities.