Chapter 4 — Market Research:

Market Research

A structured process used by organizations to collect, analyze, and interpret information that helps guide marketing decisions and identify opportunities or problems.

Five‑Step Market Research Approach

Define the problem, develop the research plan, collect relevant information, develop findings and take marketing actions

Step 1: Define the Problem

Determining the objective of the research and identifying what needs to be understood or solved.

Step 2: Develop the Research Plan

Outlining how data will be gathered, identifying constraints, selecting data types, and determining methods of collection.

Step 3: Collect Relevant Information

Gathering primary and/or secondary data needed to address the research purpose.

Step 4: Develop Findings

Analyzing collected data using statistical tools, visualization, or modeling techniques to extract insights.

Step 5: Take Marketing Actions

Putting insights into practice through decisions and reviewing results.

Constraints

Limits placed on the research process such as time, budget, or availability of data.

Data

Facts, figures, or information relevant to a research question or decision.

Secondary Data

Data previously collected for another purpose but used to support the current research situation.

Internal secondary data

data already held inside the organization (sales reports, customer communications).

External secondary data

data from outside sources (government reports, industry studies).

Primary Data

New data gathered specifically for the research project at hand.

Observational Data

Information collected by watching how people behave, whether in person, via video, or using mechanical tracking (e.g., eye‑tracking or scanners).

Questionnaire Data

Information collected by asking individuals questions through surveys, interviews, online forms, etc.

Other Sources of Data

Non‑traditional or digital sources such as social media metrics, analytics platforms, or experiments.

Idea Generation Methods

• Focus groups

• In‑depth interviews

  • Brainstorming sessions

Idea Evaluation Methods

Tools that help screen or assess alternatives, such as surveys, rating scales, or structured interviews.

Predictive Analytics

Using statistical models and algorithms to forecast future outcomes, behaviours, or trends based on current and historical data.

Predictive Modelling

Creating mathematical models that estimate the likelihood of certain consumer responses or actions.

Information Technology

The systems and tools that allow organizations to store, organize, retrieve, and analyze marketing‑related data efficiently.

Metrics

Measurable indicators used to evaluate marketing performance (e.g., website visits, conversion rates, sales growth).

Key Performance Indicators (KPIs)

A specific type of metric selected because it directly reflects progress toward a key marketing or business goal.

Findings

Insights, patterns, or conclusions drawn from analyzing collected data.

Panels

Groups of individuals who agree to provide data repeatedly over time, often recording behaviour or purchases.

Experiments

Structured tests where variables are intentionally changed to determine their effect on behaviour or performance.

Test Market

A real‑world geographic area or consumer segment where a product, price, or promotion is introduced on a limited basis before full-scale launch.

Probability Sampling

Sampling method where each member of the target population has a known, non‑zero chance of being selected (e.g., random sampling).

Non‑probability Sampling

Sampling method where participants do not have a known chance of selection; selection may depend on convenience, referrals, or researcher judgment.

Measures of Success

Criteria established upfront that determine whether the research has effectively addressed the problem or objective.

Web Analytics

Measuring and analyzing digital activity on websites, such as page views, clicks, and user navigation paths

Social Analytics

Tools and methods used to assess interactions, sentiment, and engagement on social media platforms.

Social Listening

Monitoring online conversations to understand what consumers are saying about brands, products, or topics.

Omnibus Survey

A survey that includes questions from multiple firms or researchers, allowing companies to share costs while gathering broad consumer insights.

RFM Analysis

A technique used to evaluate customer value based on:

• Recency of last purchase

• Frequency of purchases

  • Monetary amount spent

Market Share

The percentage of total sales in a market that is captured by a specific company or brand.

Sales Forecast

An estimate of future sales based on expected customer behaviour, historical data, and market factors

Experiment

A controlled research method used to identify cause‑and‑effect relationships by manipulating one variable and observing its effect on another.