Market Research Fundamentals and Strategic Planning

Posted on Feb 6, 2026 in Marketing

Market Research Fundamentals

1. Definition of Market Research (MR)

Market research is the collection and examination of information about things that people buy or might buy, and their feelings about things that they have bought. It is the process of gathering, analyzing, and interpreting information about a market, about services or products to be offered for sale, and about the past, present, and potential customers for the product or service.

MR involves research into the characteristics, spending habits, location, and needs of your business’s target market, the industry as a whole, and the particular competitors you face.

2. Market Research and the 4Ps of Marketing

Market research supports all four elements of the marketing mix:

  • Product: MR can test attitudes to products by describing them, showing them in focus groups and hall tests, or placing them in the home and workplace.
  • Price: MR can show how much people value products and indicate an optimum price point.
  • Promotion: MR helps in all aspects of promotion, from developing ideas for advertisements through to testing which advertisement is most effective.
  • Place (Distribution): MR is essential for understanding the distribution part of the marketing equation, determining the best routes to market.

3. Market Research and the Ansoff Matrix

MR provides crucial data for strategic growth decisions:

  • Market Penetration: MR measures customer satisfaction to find out how to maintain a competitive edge.
  • Product Development: MR can find new territories for products or services.
  • Market Development: MR shows the likelihood of adoption of new products.
  • Diversification: MR reveals unmet needs and provides an understanding of unfamiliar markets.

4. MR and the Product Life Cycle

MR explores unmet needs to estimate likely demand and set prices, determine how to build a stronger brand, identify weaknesses and strengths, and plan for rejuvenating products.

5. Key Areas of Market Assessment

Market Size & Structure

  • The value of the market (in currency value & units sold each year).
  • The historical trends in the size of the market.
  • The key consuming segments of the market.
  • The competition and its shares.
  • The route to market.

Methods to Assess Market Size & Structure

  • Published MR reports.
  • Desk research.

Use of & Attitude to Products

  • Awareness of suppliers.
  • Attitudes to suppliers.
  • Attitudes to products.

Methods to Assess Use & Attitudes

  • Quantitative surveys carried out by telephone, online, or face-to-face.

Promotion Effectiveness

  • Key messages for campaigns.

Methods to Assess Promotion Effectiveness

  • Focus groups.
  • Face-to-face interviewing.

Brand Impact

  • Awareness of brands.
  • Values attached to brands.

6. Qualitative vs. Quantitative Research

Quantitative (Quant) Research:

Quant research is concerned with the measurement of a market. This includes market size, the size of market segments, brand shares, purchase frequencies, awareness of brands, distribution levels, and so on. Data is required to some level of accuracy, therefore the methods used must be capable of achieving this. In consumer markets, quantitative information is almost always based on extrapolating from a sample to the general population or market.

Qualitative (Qual) Research:

Qualitative information emphasizes understanding rather than simple measurement.

7. The Market Research Process Steps

  1. Research Idea: Pick a topic and formulate the research question.
  2. Research Design: Selecting methodology, creating paradigms, and determining the sample.
  3. Collecting Data.
  4. Analyzing Data.
  5. Publication Process.

Planning a Market Research Study

1. Finding a Research Company

Sources for finding reputable research companies include:

  • Trade associations in each country that represent the market research industry.
  • The Market Research Society of the UK.
  • The American Marketing Association.
  • The Market Research Association.

2. The Research Briefing

The briefing is a statement from the sponsor setting out the objectives and background to the case in sufficient detail to enable the researcher to plan an appropriate study.

The brief is important to the research because it educates and influences the choice of method and provides the goal to which the project is geared (oriented).

The brief needs to cover these details:

  • The decision that will be made with the information obtained.
  • What information is required.
  • When it needs to be delivered.

A written brief is especially important when a number of research companies are invited to submit proposals.

Factors Influencing the Study Plan

Accuracy Requirements

The sponsor of the research will want to know in advance a measure of the statistical accuracy of the findings. Accuracy has a price; so, as accuracy increases, the prices increase too. A high level of accuracy may not always be needed. The required accuracy must be linked to how the resulting data will be used.

Budget Constraints

The budget defines what funds are available and must be related to the amount at risk. Determining the Return on Investment (ROI) of market research projects is truly difficult. At the very least, it should be possible to establish some sort of justification for the research based on the questions being asked.

3. Research Proposal Structure (ROB)

What to expect in a formal research proposal:

The Introduction

  • The proposal should have a title page and table of contents.
  • The first page will state the background and circumstances.
  • In a lengthy proposal, the first section could be a summary.

The Scope and Goals

Before describing the goals of the study, the scope must be defined. The scope should include the geographical areas that will be covered and who the target respondents will be. The goals section sets the overall goals and lists the specific research objectives.

The Methods

If the researcher gets the methods wrong, the objectives will not be achieved. The fieldwork could have a qualitative phase, comprising depth interviews or focus groups. If there is a qualitative stage, it will be spelled out in detail, arguing the reasons for choosing online over telephone and face-to-face interviews.

The Research Team

This section describes the credentials of the research team, including a summary of each person’s qualifications, experience in the field of study, and their responsibilities.

Timing and Costs

The price of the research is important; a detailed breakdown must be provided.