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Marketing research is the process of planning, collecting and analysing information that is related to a marketing decision that you have to make. Marketing research is vital as it provides you with the specific information you need to breakup or segment markets, decide on which areas to target, and to help identify the best way to position your business relative to your competitors.

As a fundamental part of business planning, market research can assist you by:

• identifying new customers
• understanding the size and nature of markets
• improve understanding of current customers
• setting of achievable goals and targets 
• formulating strategies 
• developing solutions to business problems
• planning for business growth
• identifying new opportunities.

While good research can assist you greatly, poor or inaccurate research can lead to bad marketing decisions so it is critically important to plan and undertake your research as effectively as possible.

Steps involved in marketing research include;

Step 1: Identifying and defining your problem:  

Prior to carrying out your research it is best to gain an understanding of what your objectives are.

For instance, your problem may be whether to introduce a new product or not so your marketing research would then be based on assessing the market to identify whether the market would accept this product. 

Step 2: Designing and planning your research:

Designing and planning your research carefully helps to get you the best results and can save you time and money.

The two main sources of research include primary research, i.e.  gathering information that does not already exist and is for your specific purposes and secondary research, that is gathering information that has been previously collected for any purpose other than your specific needs.

Primary research is usually conducted through interviews or surveys and while offering the best chance of obtaining highly relevant information for your specific purposes it can be expensive as it is time consuming and often requires outsourcing to a specialist provider. 

Secondary research is often more cost effective as it can be undertaken using any source of existing published information. Popular sources of secondary data include government websites such as the Australian Bureau of Statistics (ABS), government department sites and industry associations.

It is best to start planning your research by evaluating what data and information is in existence and then determine the specific areas where you may need to conduct primary research.

Collecting Data and Information: Some common techniques used to collect data and information include;

• Online surveys
• Telephone interviews/in- home personal interviews
• Questionaries

It is important to consider the type of data and information you require to match the best possible collection techniques for each requirement.

Step 3: Analysing data and information

Once data and information have been collected, the next step is to organise the information and interpret it in accordance with your research objectives to draw a conclusion and define what choices you have available as the next steps.

The key to market research success is a systematic approach and the completion of each step before the next starts.

Using market research

Once the outcomes of your research are available, you can feed the information into the formulation of your marketing strategy. However it is important to remember that if the outcomes of the research activities are not sufficient to make a decision, you may need to conduct further research as required.

Step 4: Preparing a report

It is good practice to always compile your research outcomes into a report with recommendations for further actions. Even if it is purely for your own use in the case of a micro business, preparing the information into a structured report helps to ensure your information is credible and justifiable. If you are working in a larger organisation it will be important to be able to effectively communicate the research outcomes to your colleagues.