Introduction of market research

Market research is the methodical process of acquiring, analysing, and interpreting data on a particular market or industry. With the information gathered on a specific target market, consumer, or industry, businesses can gain insights on how to execute their business strategies or decisions. 

Why is market research important for businesses?

Market research is important as it enables businesses to understand opportunities and challenges, such as untapped market segments and potential obstacles in the market. It also enables businesses to know emerging trends to stay competitive. Additionally market research reveals competitors’ services, which includes their strengths and weaknesses, enabling impactful business positioning.  

Market research in business takes out the assumptions or guesswork involved. Information acquired enables relevant stakeholders to make data-driven decisions, establish effective business plans, and increase their chances of long-term growth.

The market research industry

The market research industry’s global revenue was nearly USD 54 billion in 2023. The market research industry has established itself as an indispensable asset in business and advertising, with the top companies generating revenues in the billions, reflecting their significant value and influence.

How do businesses conduct market research?

Companies can carry out market research either in-house or outsource to market research firms. Market research firms are agencies that offer the gathering and evaluation of its clients’ service, products, target market and audience, and other stakeholders involved in the market. Hiring a dedicated agency enables businesses to outsource their market research requirements to professionals while focusing on their core operations.

What are the key components of market research in the global context? 

– Market and Cultural Understanding: Deeply comprehending the cultural values, behaviours, and social norms of the target market. Enables the business to tailor their products, messaging, and strategies to effectively target local preferences and build trusted relationships across diverse global markets.

– Consumers: Understanding the target audience for the market, such as their needs, behaviour, and buying habits.

– Competitors: Analysing other businesses that offer similar products or services in the market, which can evaluate the strengths, weaknesses, and strategies. With this knowledge, companies can position themselves uniquely to their advantage.

– Industry Trends: Monitoring the opportunities and threats associated with the industry. Additionally. tracking the overall trajectory and expansion within the industry.

– Supply Chain, Distribution, Supplier List-Up: Listing up the interconnected processes of goods and services flow that synergies with the service or products.

Here at GLOBAL ANGLE, we conduct global market research for companies looking to expand overseas. We have over 200 local researchers located across more than 70 countries around the world to provide in-depth insights and support for market research in unfamiliar locations. This extensive network allows us to gather nuanced, region-specific data and understand local market dynamics, ensuring that our clients receive accurate and actionable information to inform their strategic decisions.

This is especially relevant for businesses who are looking into international expansion but have no experience in the market. Outsourcing a market research firm that is able to conduct global market research streamlines the process for companies to avoid barriers in language or culture.

What is the market research process like?

Each market research project varies from case to case depending on the scope and the timeline of the project. However, this is a general process of a market research project by a market research company:

  • Understanding the market research needs of the clients
  • Define target market and audience
  • Define the problem or opportunity
  • Gather required data and information 
  • Analyse the data into a report or presentation
  • Present report findings to clients

What industries conduct market research?

It is conducted throughout industries that require more information regarding their target markets, services, or products. The research spans from B2B and B2C segments, of which we have worked on (but are not limited to):

B2B (Business-to-business) Market Research

B2C (Business-to-consumer) Market Research

When would businesses conduct market research?

These are some reasons (but not limited to):

What are the 4 basic market research methods?

1. Primary Research

Primary research occurs when the data or information is collected directly from the source. This can include directly interacting with the source of the research, such as interviewing industry experts face-to-face or even virtually.

Examples of Primary Research:

  • Site Visits such as in-store and product surveys
  • Interviews such as expert interviews, focus group discussions
  • Questionnaires and surveys
  • A/B Testing

Benefits and Limitations of Primary Research

Primary Research is beneficial as the approach can be tailored and customised to collect the relevant and in-depth information. The data collected will also be real-time and up-to-date. However, it has its disadvantages as it may require resources and the appropriate market research skills to carry out the research to its full potential.

2. Secondary Research

Secondary research utilises information that already exists, through data collected and issued by other parties. Information available is then gathered and analysed according to the needs of the market research project. This method provides comprehensive insights into consumer behaviours, market and competitive analysis, as well as regional trends.

Examples of Secondary Research Sources:

  • Governmental and Trade Statistics
  • Regulatory and Legislation Information
  • Company, Market, or Consumer Reports
  • General Media: Newspapers, Websites, Articles, Forums
  • Social Media Posts

Benefits and Limitations of Secondary Research

The benefits of this research method is that data gathered can be incorporated from a wide range of sources and increases the breadth of information on the topic. However, it has its limitations as the information available may not be up-to-date and may be biased. Being able to discern the information source is an important skill to determine whether the available information would be relevant or not.

Here at GLOBAL ANGLE, we utilise Local Market Intelligence services to gather information from various sources to present information that enables clients to gain market and consumer information, as well as regulatory and cultural awareness.

3. Qualitative Research

Qualitative research gathers data such as emotions, perspectives, opinions, perceptions, and behaviour of the target market and audience.

Examples of Qualitative Research

  • Thematic Analysis including Sentiment and Content Analysis
  • Interviews such as expert interviews and FGD (focus group discussion)
  • Consumer observation

Benefits and Limitations of Qualitative Research

Qualitative research is not bound by quantitative methods, which may be restrictive. It is also a more flexible approach, where the researcher is able to adapt the questions according to the insights being shared. However, it also means that the qualitative research may not be statistically representative and be subjective according to the researchers’ interpretations.

4. Quantitative Research

Quantitative research focuses on measurable analytics, utilising numbers or numerical values to identify trends, benchmarks, and statistical relationships.

Examples of Quantitative Research

  • Questionnaires
  • Data Analysis

Benefits and Limitations of Quantitative Research

Quantitative research allows for a bigger sample size, ensuring that the data analysed is robust. It is also simpler and faster to conduct, through the usage of online surveys. However, this research method requires a specific skill set to efficiently extract the data, or the analysis may be open to misinterpretation and thus misleading results.

Market Research FAQ

What is a competitor analysis?

Competitor analysis is a form of research that enables companies to understand their competitor’s strategies, along with their strengths and weaknesses. It can involve evaluating their products and services, such as pricing, along with marketing strategies and financial information.

What is the usual process of contacting a market research company?

Businesses contact market research companies to enquire about market research needs. This may include a specific country they would like to explore or a certain market research method that they want to conduct related to their product or service. GLOBAL ANGLE provides a non-obligatory free consultation to understand your market research needs. Contact us today for your market research needs.

What is market segmentation analysis?

Market segmentation analysis happens when there is a separation of a wide market into various tinier groups with similar commonality to have well-planned marketing strategies. This method is efficient in targeting consumers in a more accurate manner.