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Written by Mary Kate Miller | June 1, 2021

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Market research is a cornerstone of all successful, strategic businesses. It can also be daunting for entrepreneurs looking to launch a startup or start a side hustle . What is market research, anyway? And how do you…do it?

We’ll walk you through absolutely everything you need to know about the market research process so that by the end of this guide, you’ll be an expert in market research too. And what’s more important: you’ll have actionable steps you can take to start collecting your own market research.

What Is Market Research?

Market research is the organized process of gathering information about your target customers and market. Market research can help you better understand customer behavior and competitor strengths and weaknesses, as well as provide insight for the best strategies in launching new businesses and products. There are different ways to approach market research, including primary and secondary research and qualitative and quantitative research. The strongest approaches will include a combination of all four.

“Virtually every business can benefit from conducting some market research,” says Niles Koenigsberg of Real FiG Advertising + Marketing . “Market research can help you piece together your [business’s] strengths and weaknesses, along with your prospective opportunities, so that you can understand where your unique differentiators may lie.” Well-honed market research will help your brand stand out from the competition and help you see what you need to do to lead the market. It can also do so much more.

The Purposes of Market Research

Why do market research? It can help you…

• Pinpoint your target market, create buyer personas, and develop a more holistic understanding of your customer base and market.
• Understand current market conditions to evaluate risks and anticipate how your product or service will perform.
• Validate a concept prior to launch.
• Identify gaps in the market that your competitors have created or overlooked.
• Solve problems that have been left unresolved by the existing product/brand offerings.
• Identify opportunities and solutions for new products or services.
• Develop killer marketing strategies .

What Are the Benefits of Market Research?

Strong market research can help your business in many ways. It can…

• Strengthen your market position.
• Help you identify your strengths and weaknesses.
• Help you identify your competitors’ strengths and weaknesses.
• Minimize risk.
• Center your customers’ experience from the get-go.
• Help you create a dynamic strategy based on market conditions and customer needs/demands.

What Are the Basic Methods of Market Research?

The basic methods of market research include surveys, personal interviews, customer observation, and the review of secondary research. In addition to these basic methods, a forward-thinking market research approach incorporates data from the digital landscape like social media analysis, SEO research, gathering feedback via forums, and more. Throughout this guide, we will cover each of the methods commonly used in market research to give you a comprehensive overview.

Primary vs. Secondary Market Research

Primary and secondary are the two main types of market research you can do. The latter relies on research conducted by others. Primary research, on the other hand, refers to the fact-finding efforts you conduct on your own.

This approach is limited, however. It’s likely that the research objectives of these secondary data points differ from your own, and it can be difficult to confirm the veracity of their findings.

Primary Market Research

Primary research is more labor intensive, but it generally yields data that is exponentially more actionable. It can be conducted through interviews, surveys, online research, and your own data collection. Every new business should engage in primary market research prior to launch. It will help you validate that your idea has traction, and it will give you the information you need to help minimize financial risk.

You can hire an agency to conduct this research on your behalf. This brings the benefit of expertise, as you’ll likely work with a market research analyst. The downside is that hiring an agency can be expensive—too expensive for many burgeoning entrepreneurs. That brings us to the second approach. You can also do the market research yourself, which substantially reduces the financial burden of starting a new business .

Secondary Market Research

Secondary research includes resources like government databases and industry-specific data and publications. It can be beneficial to start your market research with secondary sources because it’s widely available and often free-to-access. This information will help you gain a broad overview of the market conditions for your new business.

Identify Your Goals and Your Audience

Before you begin conducting interviews or sending out surveys, you need to set your market research goals. At the end of your market research process, you want to have a clear idea of who your target market is—including demographic information like age, gender, and where they live—but you also want to start with a rough idea of who your audience might be and what you’re trying to achieve with market research.

You can pinpoint your objectives by asking yourself a series of guiding questions:

• What are you hoping to discover through your research?
• Who are you hoping to serve better because of your findings?
• What do you think your market is?
• Who are your competitors?
• Are you testing the reception of a new product category or do you want to see if your product or service solves the problem left by a current gap in the market?
• Are you just…testing the waters to get a sense of how people would react to a new brand?

Once you’ve narrowed down the “what” of your market research goals, you’re ready to move onto how you can best achieve them. Think of it like algebra. Many math problems start with “solve for x.” Once you know what you’re looking for, you can get to work trying to find it. It’s a heck of a lot easier to solve a problem when you know you’re looking for “x” than if you were to say “I’m gonna throw some numbers out there and see if I find a variable.”

How to Do Market Research

This guide outlines every component of a comprehensive market research effort. Take into consideration the goals you have established for your market research, as they will influence which of these elements you’ll want to include in your market research strategy.

Secondary Data

Secondary data allows you to utilize pre-existing data to garner a sense of market conditions and opportunities. You can rely on published market studies, white papers, and public competitive information to start your market research journey.

Secondary data, while useful, is limited and cannot substitute your own primary data. It’s best used for quantitative data that can provide background to your more specific inquiries.

Find Your Customers Online

Once you’ve identified your target market, you can use online gathering spaces and forums to gain insights and give yourself a competitive advantage. Rebecca McCusker of The Creative Content Shop recommends internet recon as a vital tool for gaining a sense of customer needs and sentiment. “Read their posts and comments on forums, YouTube video comments, Facebook group [comments], and even Amazon/Goodreads book comments to get in their heads and see what people are saying.”

If you’re interested in engaging with your target demographic online, there are some general rules you should follow. First, secure the consent of any group moderators to ensure that you are acting within the group guidelines. Failure to do so could result in your eviction from the group.

Not all comments have the same research value. “Focus on the comments and posts with the most comments and highest engagement,” says McCusker. These high-engagement posts can give you a sense of what is already connecting and gaining traction within the group.

Social media can also be a great avenue for finding interview subjects. “LinkedIn is very useful if your [target customer] has a very specific job or works in a very specific industry or sector. It’s amazing the amount of people that will be willing to help,” explains Miguel González, a marketing executive at Dealers League . “My advice here is BE BRAVE, go to LinkedIn, or even to people you know and ask them, do quick interviews and ask real people that belong to that market and segment and get your buyer persona information first hand.”

Market research interviews can provide direct feedback on your brand, product, or service and give you a better understanding of consumer pain points and interests.

When organizing your market research interviews, you want to pay special attention to the sample group you’re selecting, as it will directly impact the information you receive. According to Tanya Zhang, the co-founder of Nimble Made , you want to first determine whether you want to choose a representative sample—for example, interviewing people who match each of the buyer persona/customer profiles you’ve developed—or a random sample.

“A sampling of your usual persona styles, for example, can validate details that you’ve already established about your product, while a random sampling may [help you] discover a new way people may use your product,” Zhang says.

Market Surveys

Market surveys solicit customer inclinations regarding your potential product or service through a series of open-ended questions. This direct outreach to your target audience can provide information on your customers’ preferences, attitudes, buying potential, and more.

Every expert we asked voiced unanimous support for market surveys as a powerful tool for market research. With the advent of various survey tools with accessible pricing—or free use—it’s never been easier to assemble, disseminate, and gather market surveys. While it should also be noted that surveys shouldn’t replace customer interviews , they can be used to supplement customer interviews to give you feedback from a broader audience.

Who to Include in Market Surveys

• Current customers
• Past customers
• Your existing audience (such as social media/newsletter audiences)

Example Questions to Include in Market Surveys

While the exact questions will vary for each business, here are some common, helpful questions that you may want to consider for your market survey. Demographic Questions: the questions that help you understand, demographically, who your target customers are:

• “What is your age?”
• “Where do you live?”
• “What is your gender identity?”
• “What is your household income?”
• “What is your household size?”
• “What do you do for a living?”
• “What is your highest level of education?”

Product-Based Questions: Whether you’re seeking feedback for an existing brand or an entirely new one, these questions will help you get a sense of how people feel about your business, product, or service:

• “How well does/would our product/service meet your needs?”
• “How does our product/service compare to similar products/services that you use?”
• “How long have you been a customer?” or “What is the likelihood that you would be a customer of our brand?

Personal/Informative Questions: the deeper questions that help you understand how your audience thinks and what they care about.

• “What are your biggest challenges?”
• “What’s most important to you?”
• “What do you do for fun (hobbies, interests, activities)?”
• “Where do you seek new information when researching a new product?”
• “How do you like to make purchases?”
• “What is your preferred method for interacting with a brand?”

Survey Tools

Online survey tools make it easy to distribute surveys and collect responses. The best part is that there are many free tools available. If you’re making your own online survey, you may want to consider SurveyMonkey, Typeform, Google Forms, or Zoho Survey.

Competitive Analysis

A competitive analysis is a breakdown of how your business stacks up against the competition. There are many different ways to conduct this analysis. One of the most popular methods is a SWOT analysis, which stands for “strengths, weaknesses, opportunities, and threats.” This type of analysis is helpful because it gives you a more robust understanding of why a customer might choose a competitor over your business. Seeing how you stack up against the competition can give you the direction you need to carve out your place as a market leader.

Social Media Analysis

Social media has fundamentally changed the market research landscape, making it easier than ever to engage with a wide swath of consumers. Follow your current or potential competitors on social media to see what they’re posting and how their audience is engaging with it. Social media can also give you a lower cost opportunity for testing different messaging and brand positioning.

SEO Analysis and Opportunities

SEO analysis can help you identify the digital competition for getting the word out about your brand, product, or service. You won’t want to overlook this valuable information. Search listening tools offer a novel approach to understanding the market and generating the content strategy that will drive business. Tools like Google Trends and Awario can streamline this process.

Ready to Kick Your Business Into High Gear?

Now that you’ve completed the guide to market research you know you’re ready to put on your researcher hat to give your business the best start. Still not sure how actually… launch the thing? Our free mini-course can run you through the essentials for starting your side hustle .

About Mary Kate Miller

Mary Kate Miller writes about small business, real estate, and finance. In addition to writing for Foundr, her work has been published by The Washington Post, Teen Vogue, Bustle, and more. She lives in Chicago.

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Market Research: What It Is and How to Conduct It To boost your competitive advantage, you may want to do market research. Entrepreneur is here with a guide on market research and how to conduct it.

By Entrepreneur Staff

Whether you're a new business owner or a seasoned entrepreneur, market research is essential for ensuring your business stays at the top of its game. Stay tuned for more on what market research is and how to conduct it effectively.

What is market research?

Market research is a practice that tracks consumer behavior, market trends, and economic trends. It is the process by which you gather information on your potential customers to evaluate and improve how you meet customer needs.

You can also complete market research to gather data on your competitors to assess where you stand and how you can improve your business plan and operations.

In all your business decisions, not just related to marketing campaigns and profitability calculations but also customer satisfaction in face-to-face interactions, quantitative research about specific markets you target can be a great way to guide you to success.

Key questions

When you begin building a template for your research, there are some key questions you should address. They can help you gather a better feel for what is going on in your target market.

Key questions can include:

• Is there a demand for the product or service you're providing?
• Is there a market or interest in your product or service?
• Does the income range of your target audience match the price point of your product or service?
• Does your product make sense for its location? Can you broaden your locale by providing country-wide or international shipping?
• Is the market saturated with similar products and services? If so, how can you distinguish what your business offers?
• What is the price point of your competitors?

Key demographics

As you complete market research, there are certain demographics you should use to guide your process. Sticking to these critical areas can help streamline your process while still constructing a thorough assessment.

Key demographics often include:

Related: What to Do When Your Ideal Customer Isn't Who You Expected

Types of market research

You can conduct a few different types of market research to find the answers you need. Each has advantages and disadvantages, so it's ideal to complete your research using a combination.

Primary research

This is research you conduct yourself and gather first-hand. If your budget permits, consider hiring a market research firm specializing in primary market research.

Primary types of market research methods include:

• Focus groups : Using a small group from a specific demographic to give reviews and feedback on particular products and services
• Surveys: Asking customers a set list of questions to record their opinions on new products
• Interviews: Asking customers conversational, open-ended questions in a one-on-one virtual or in-person setting to gather opinions and preferences
• Observations: Watching how customers interact with specific products for mannerisms and ease-of-use
• Market segmentation : Dividing your consumers into demographics and analyzing data through that lens to better meet their respective needs

Secondary research

Secondary research is data that already exists. You can find secondary research in credible newspapers, government statistics, and industry reports. While some scholarly research may be behind a paywall, there are numerous credible sources that you can access for free.

Exploratory research

This is a type of research study you can use to conduct your market research. Depending on your stage, you can gather people's opinions on products or topics. This can give you an idea of perception and provide more open-ended data.

Specific research

After you've completed some exploratory research, you can narrow your questions and sample audience to be more specific. Use this to capitalize on opportunities to alleviate pain points in the market and elevate your company over the competition.

Related: The Ultimate Guide to Competitive Research for Small Businesses

How to conduct market research

Market research can be time-consuming, but it's well worth the effort. The more information you can gather about your customer base's needs and buying habits, the greater your chance of securing a competitive advantage in your industry.

Take a look at a step-by-step guide on how to conduct market research.

1. Identify buyer persona

To connect with your target customers, you need to understand who they are.

You might be marketing to more than one demographic, and that's okay, but you still need to create profiles for the buyers you want to reach to keep track of their likes, how they interact with your product, and their buying habits.

Buyer personas are based on demographics like age, gender, locale, income, interests, and needs.

2. Find a sample

After creating buyer personas, you'll need to find the right people to participate in your market research process.

Your interviewees can be people who:

• Have recently purchased your product
• Have purchased from a competitor or abandoned cart at checkout
• Follow or interact with your social media accounts

It can be challenging to find willing participants. If your budget allows for it, feel free to offer incentives for feedback, whether it's a free gift, a nice discount, or even free shipping on their next order.

If you cannot afford to provide incentives, you can also offer participants access to exclusive content. No matter what, make sure you thank your respondents for their time at the end of the process.

Related: The How-To: Market Research On A Tight Budget

3. Create research questions

As you create your market research questions, try to ensure they are open-ended. You do not want to lead your consumer toward the answer that works best for you — you want to get the real answer that can identify strengths and help improve weaknesses.

Research question topics include:

• Customer background information: Try to go beyond age and job title. Keep the conversation going by asking more in-depth questions about their job responsibilities, challenges, and how they tackle them. The more people reveal about themselves, the better.
• Brand awareness : Learn why customers looked for a product like yours and how they came across your business.
• Consideration process: Push the brand awareness conversation further by having the customer take you through their product research. What other brands did they research? How easy or difficult was the research process?
• Decision making: What did they like or dislike about their experience with other businesses? What did they like or dislike about the different products themselves? Were they using any type of criteria for driving their decision-making? What factors ultimately made them choose your product over another?
• Closing the interview: Drive the focus back to your product by asking the consumer what improvements they'd like to see if any. Before the interview closes, open the floor for customer questions. Make sure to thank them for their time and send them a follow-up thank you after the interview.

4. Assess your competition

At this point in the process, you've probably got a decent idea of who your competitors are from when you interviewed customers about other products they considered.

However, that is not thorough enough — you need to dig deeper. You should start with a broad search and narrow it down throughout your process.

You can identify competition by:

• Utilizing industry search tools using sites like G2 and Capterra that can gather user ratings and compare other companies in your field.
• Find and download free market reports, like those provided by the U.S. Census Bureau or private firms, highlighting leading vendors in your industry.
• Use social media as a search engine directory to find other competitors with high-level content.

Related: 3 Reasons Why I Gladly Welcome Competition

5. Create a market research summary

When you finish your market research, you will be left with an excess of information.

While this information is beneficial, it doesn't do any good if it isn't organized enough for you to analyze it. Creating a summary report can help you organize your thoughts and more easily identify critical takeaways.

A streamlined research outline should consist of the following:

• Background information on your motivation for conducting the study
• A breakdown of participant demographics to identify customer personas
• Powerful quotes from participants that can serve as guiding reminders
• Common themes and details reasonings for customers considering your product
• The driving factor that pushed consumers to purchase your product over the competition
• Notes on the most interesting bits you learned and how you can drive those forward
• An action plan for how to capitalize on the research results

Valuable templates for your market research

With a long road ahead, market research might sound daunting. However, the more organized you are with your strategy, the more smoothly the task may go. There are several free templates out there that can serve as a roadmap for your research journey.

No template is better than another — it simply depends on your preference. Take a look at the template options below.

Porter's five forces analysis template

This template is centered around competitive rivalry, with four factors pointing toward it. Those factors are:

• The threat of new entrants
• Buying power
• Threat of substitution
• Supplier power

SWOT analysis template

You may have heard of SWOT before, as it is one of the more common analysis practices. It is a straightforward way of identifying focus areas for you and your competitors. SWOT stands for:

• Opportunities

Related: Start 2022 With a SWOT Analysis

Market survey and focus group template

Both templates are a bit less structured, as you can create your questions based on what you'd like to focus on.

Both strategies focus on qualitative research data to discover information on buyer persona. The most significant difference is that market surveys focus on short-answer questions, and focus groups ask questions that promote in-depth answers.

What market research can mean for you

Market research is an essential practice that can help you track consumer behavior and market and economic trends. Collecting this information to learn about your target demographics and how you can improve your marketing strategy, products, and services to meet their needs is vital.

Now you know how to conduct effective market research, choose a template that resonates with you, and begin your research plan.

Looking for more resources? Click here for Entrepreneur's library of articles for growing your business .

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How to Do Market Research: The Complete Guide

Learn how to do market research with this step-by-step guide, complete with templates, tools and real-world examples.

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Market research is the systematic process of gathering, analyzing and interpreting information about a specific market or industry.

What are your customers’ needs? How does your product compare to the competition? What are the emerging trends and opportunities in your industry? If these questions keep you up at night, it’s time to conduct market research.

Market research plays a pivotal role in your ability to stay competitive and relevant, helping you anticipate shifts in consumer behavior and industry dynamics. It involves gathering these insights using a wide range of techniques, from surveys and interviews to data analysis and observational studies.

In this guide, we’ll explore why market research is crucial, the various types of market research, the methods used in data collection, and how to effectively conduct market research to drive informed decision-making and success.

What is market research?

The purpose of market research is to offer valuable insight into the preferences and behaviors of your target audience, and anticipate shifts in market trends and the competitive landscape. This information helps you make data-driven decisions, develop effective strategies for your business, and maximize your chances of long-term growth.

Why is market research important? 

By understanding the significance of market research, you can make sure you’re asking the right questions and using the process to your advantage. Some of the benefits of market research include:

• Informed decision-making: Market research provides you with the data and insights you need to make smart decisions for your business. It helps you identify opportunities, assess risks and tailor your strategies to meet the demands of the market. Without market research, decisions are often based on assumptions or guesswork, leading to costly mistakes.
• Customer-centric approach: A cornerstone of market research involves developing a deep understanding of customer needs and preferences. This gives you valuable insights into your target audience, helping you develop products, services and marketing campaigns that resonate with your customers.
• Competitive advantage: By conducting market research, you’ll gain a competitive edge. You’ll be able to identify gaps in the market, analyze competitor strengths and weaknesses, and position your business strategically. This enables you to create unique value propositions, differentiate yourself from competitors, and seize opportunities that others may overlook.
• Risk mitigation: Market research helps you anticipate market shifts and potential challenges. By identifying threats early, you can proactively adjust their strategies to mitigate risks and respond effectively to changing circumstances. This proactive approach is particularly valuable in volatile industries.
• Resource optimization: Conducting market research allows organizations to allocate their time, money and resources more efficiently. It ensures that investments are made in areas with the highest potential return on investment, reducing wasted resources and improving overall business performance.
• Adaptation to market trends: Markets evolve rapidly, driven by technological advancements, cultural shifts and changing consumer attitudes. Market research ensures that you stay ahead of these trends and adapt your offerings accordingly so you can avoid becoming obsolete. 

As you can see, market research empowers businesses to make data-driven decisions, cater to customer needs, outperform competitors, mitigate risks, optimize resources and stay agile in a dynamic marketplace. These benefits make it a huge industry; the global market research services market is expected to grow from $76.37 billion in 2021 to $108.57 billion in 2026 . Now, let’s dig into the different types of market research that can help you achieve these benefits.

Types of market research 

• Qualitative research
• Quantitative research
• Exploratory research
• Descriptive research
• Causal research
• Cross-sectional research
• Longitudinal research

Despite its advantages, 23% of organizations don’t have a clear market research strategy. Part of developing a strategy involves choosing the right type of market research for your business goals. The most commonly used approaches include:

1. Qualitative research

Qualitative research focuses on understanding the underlying motivations, attitudes and perceptions of individuals or groups. It is typically conducted through techniques like in-depth interviews, focus groups and content analysis — methods we’ll discuss further in the sections below. Qualitative research provides rich, nuanced insights that can inform product development, marketing strategies and brand positioning.

2. Quantitative research

Quantitative research, in contrast to qualitative research, involves the collection and analysis of numerical data, often through surveys, experiments and structured questionnaires. This approach allows for statistical analysis and the measurement of trends, making it suitable for large-scale market studies and hypothesis testing. While it’s worthwhile using a mix of qualitative and quantitative research, most businesses prioritize the latter because it is scientific, measurable and easily replicated across different experiments.

3. Exploratory research

Whether you’re conducting qualitative or quantitative research or a mix of both, exploratory research is often the first step. Its primary goal is to help you understand a market or problem so you can gain insights and identify potential issues or opportunities. This type of market research is less structured and is typically conducted through open-ended interviews, focus groups or secondary data analysis. Exploratory research is valuable when entering new markets or exploring new product ideas.

4. Descriptive research

As its name implies, descriptive research seeks to describe a market, population or phenomenon in detail. It involves collecting and summarizing data to answer questions about audience demographics and behaviors, market size, and current trends. Surveys, observational studies and content analysis are common methods used in descriptive research. 

5. Causal research

Causal research aims to establish cause-and-effect relationships between variables. It investigates whether changes in one variable result in changes in another. Experimental designs, A/B testing and regression analysis are common causal research methods. This sheds light on how specific marketing strategies or product changes impact consumer behavior.

6. Cross-sectional research

Cross-sectional market research involves collecting data from a sample of the population at a single point in time. It is used to analyze differences, relationships or trends among various groups within a population. Cross-sectional studies are helpful for market segmentation, identifying target audiences and assessing market trends at a specific moment.

7. Longitudinal research

Longitudinal research, in contrast to cross-sectional research, collects data from the same subjects over an extended period. This allows for the analysis of trends, changes and developments over time. Longitudinal studies are useful for tracking long-term developments in consumer preferences, brand loyalty and market dynamics.

Each type of market research has its strengths and weaknesses, and the method you choose depends on your specific research goals and the depth of understanding you’re aiming to achieve. In the following sections, we’ll delve into primary and secondary research approaches and specific research methods.

Primary vs. secondary market research

Market research of all types can be broadly categorized into two main approaches: primary research and secondary research. By understanding the differences between these approaches, you can better determine the most appropriate research method for your specific goals.

Primary market research 

Primary research involves the collection of original data straight from the source. Typically, this involves communicating directly with your target audience — through surveys, interviews, focus groups and more — to gather information. Here are some key attributes of primary market research:

• Customized data: Primary research provides data that is tailored to your research needs. You design a custom research study and gather information specific to your goals.
• Up-to-date insights: Because primary research involves communicating with customers, the data you collect reflects the most current market conditions and consumer behaviors.
• Time-consuming and resource-intensive: Despite its advantages, primary research can be labor-intensive and costly, especially when dealing with large sample sizes or complex study designs. Whether you hire a market research consultant, agency or use an in-house team, primary research studies consume a large amount of resources and time.

Secondary market research 

Secondary research, on the other hand, involves analyzing data that has already been compiled by third-party sources, such as online research tools, databases, news sites, industry reports and academic studies.

Here are the main characteristics of secondary market research:

• Cost-effective: Secondary research is generally more cost-effective than primary research since it doesn’t require building a research plan from scratch. You and your team can look at databases, websites and publications on an ongoing basis, without needing to design a custom experiment or hire a consultant. 
• Leverages multiple sources: Data tools and software extract data from multiple places across the web, and then consolidate that information within a single platform. This means you’ll get a greater amount of data and a wider scope from secondary research.
• Quick to access: You can access a wide range of information rapidly — often in seconds — if you’re using online research tools and databases. Because of this, you can act on insights sooner, rather than taking the time to develop an experiment. 

So, when should you use primary vs. secondary research? In practice, many market research projects incorporate both primary and secondary research to take advantage of the strengths of each approach.

One rule of thumb is to focus on secondary research to obtain background information, market trends or industry benchmarks. It is especially valuable for conducting preliminary research, competitor analysis, or when time and budget constraints are tight. Then, if you still have knowledge gaps or need to answer specific questions unique to your business model, use primary research to create a custom experiment. 

Market research methods

• Surveys and questionnaires
• Focus groups
• Observational research
• Online research tools
• Experiments
• Content analysis
• Ethnographic research

How do primary and secondary research approaches translate into specific research methods? Let’s take a look at the different ways you can gather data: 

1. Surveys and questionnaires

Surveys and questionnaires are popular methods for collecting structured data from a large number of respondents. They involve a set of predetermined questions that participants answer. Surveys can be conducted through various channels, including online tools, telephone interviews and in-person or online questionnaires. They are useful for gathering quantitative data and assessing customer demographics, opinions, preferences and needs. On average, customer surveys have a 33% response rate , so keep that in mind as you consider your sample size.

2. Interviews

Interviews are in-depth conversations with individuals or groups to gather qualitative insights. They can be structured (with predefined questions) or unstructured (with open-ended discussions). Interviews are valuable for exploring complex topics, uncovering motivations and obtaining detailed feedback. 

3. Focus groups

The most common primary research methods are in-depth webcam interviews and focus groups. Focus groups are a small gathering of participants who discuss a specific topic or product under the guidance of a moderator. These discussions are valuable for primary market research because they reveal insights into consumer attitudes, perceptions and emotions. Focus groups are especially useful for idea generation, concept testing and understanding group dynamics within your target audience.

4. Observational research

Observational research involves observing and recording participant behavior in a natural setting. This method is particularly valuable when studying consumer behavior in physical spaces, such as retail stores or public places. In some types of observational research, participants are aware you’re watching them; in other cases, you discreetly watch consumers without their knowledge, as they use your product. Either way, observational research provides firsthand insights into how people interact with products or environments.

5. Online research tools

You and your team can do your own secondary market research using online tools. These tools include data prospecting platforms and databases, as well as online surveys, social media listening, web analytics and sentiment analysis platforms. They help you gather data from online sources, monitor industry trends, track competitors, understand consumer preferences and keep tabs on online behavior. We’ll talk more about choosing the right market research tools in the sections that follow.

6. Experiments

Market research experiments are controlled tests of variables to determine causal relationships. While experiments are often associated with scientific research, they are also used in market research to assess the impact of specific marketing strategies, product features, or pricing and packaging changes.

7. Content analysis

Content analysis involves the systematic examination of textual, visual or audio content to identify patterns, themes and trends. It’s commonly applied to customer reviews, social media posts and other forms of online content to analyze consumer opinions and sentiments.

8. Ethnographic research

Ethnographic research immerses researchers into the daily lives of consumers to understand their behavior and culture. This method is particularly valuable when studying niche markets or exploring the cultural context of consumer choices.

How to do market research

• Set clear objectives
• Identify your target audience
• Choose your research methods
• Use the right market research tools
• Collect data
• Analyze data 
• Interpret your findings
• Identify opportunities and challenges
• Make informed business decisions
• Monitor and adapt

Now that you have gained insights into the various market research methods at your disposal, let’s delve into the practical aspects of how to conduct market research effectively. Here’s a quick step-by-step overview, from defining objectives to monitoring market shifts.

1. Set clear objectives

When you set clear and specific goals, you’re essentially creating a compass to guide your research questions and methodology. Start by precisely defining what you want to achieve. Are you launching a new product and want to understand its viability in the market? Are you evaluating customer satisfaction with a product redesign? 

Start by creating SMART goals — objectives that are specific, measurable, achievable, relevant and time-bound. Not only will this clarify your research focus from the outset, but it will also help you track progress and benchmark your success throughout the process. 

You should also consult with key stakeholders and team members to ensure alignment on your research objectives before diving into data collecting. This will help you gain diverse perspectives and insights that will shape your research approach.

2. Identify your target audience

Next, you’ll need to pinpoint your target audience to determine who should be included in your research. Begin by creating detailed buyer personas or stakeholder profiles. Consider demographic factors like age, gender, income and location, but also delve into psychographics, such as interests, values and pain points.

The more specific your target audience, the more accurate and actionable your research will be. Additionally, segment your audience if your research objectives involve studying different groups, such as current customers and potential leads.

If you already have existing customers, you can also hold conversations with them to better understand your target market. From there, you can refine your buyer personas and tailor your research methods accordingly.

3. Choose your research methods

Selecting the right research methods is crucial for gathering high-quality data. Start by considering the nature of your research objectives. If you’re exploring consumer preferences, surveys and interviews can provide valuable insights. For in-depth understanding, focus groups or observational research might be suitable. Consider using a mix of quantitative and qualitative methods to gain a well-rounded perspective. 

You’ll also need to consider your budget. Think about what you can realistically achieve using the time and resources available to you. If you have a fairly generous budget, you may want to try a mix of primary and secondary research approaches. If you’re doing market research for a startup , on the other hand, chances are your budget is somewhat limited. If that’s the case, try addressing your goals with secondary research tools before investing time and effort in a primary research study. 

4. Use the right market research tools

Whether you’re conducting primary or secondary research, you’ll need to choose the right tools. These can help you do anything from sending surveys to customers to monitoring trends and analyzing data. Here are some examples of popular market research tools:

• Market research software: Crunchbase is a platform that provides best-in-class company data, making it valuable for market research on growing companies and industries. You can use Crunchbase to access trusted, first-party funding data, revenue data, news and firmographics, enabling you to monitor industry trends and understand customer needs.

• Survey and questionnaire tools: SurveyMonkey is a widely used online survey platform that allows you to create, distribute and analyze surveys. Google Forms is a free tool that lets you create surveys and collect responses through Google Drive.
• Data analysis software: Microsoft Excel and Google Sheets are useful for conducting statistical analyses. SPSS is a powerful statistical analysis software used for data processing, analysis and reporting.
• Social listening tools: Brandwatch is a social listening and analytics platform that helps you monitor social media conversations, track sentiment and analyze trends. Mention is a media monitoring tool that allows you to track mentions of your brand, competitors and keywords across various online sources.
• Data visualization platforms: Tableau is a data visualization tool that helps you create interactive and shareable dashboards and reports. Power BI by Microsoft is a business analytics tool for creating interactive visualizations and reports.

5. Collect data

There’s an infinite amount of data you could be collecting using these tools, so you’ll need to be intentional about going after the data that aligns with your research goals. Implement your chosen research methods, whether it’s distributing surveys, conducting interviews or pulling from secondary research platforms. Pay close attention to data quality and accuracy, and stick to a standardized process to streamline data capture and reduce errors. 

6. Analyze data

Once data is collected, you’ll need to analyze it systematically. Use statistical software or analysis tools to identify patterns, trends and correlations. For qualitative data, employ thematic analysis to extract common themes and insights. Visualize your findings with charts, graphs and tables to make complex data more understandable.

If you’re not proficient in data analysis, consider outsourcing or collaborating with a data analyst who can assist in processing and interpreting your data accurately.

7. Interpret your findings

Interpreting your market research findings involves understanding what the data means in the context of your objectives. Are there significant trends that uncover the answers to your initial research questions? Consider the implications of your findings on your business strategy. It’s essential to move beyond raw data and extract actionable insights that inform decision-making.

Hold a cross-functional meeting or workshop with relevant team members to collectively interpret the findings. Different perspectives can lead to more comprehensive insights and innovative solutions.

8. Identify opportunities and challenges

Use your research findings to identify potential growth opportunities and challenges within your market. What segments of your audience are underserved or overlooked? Are there emerging trends you can capitalize on? Conversely, what obstacles or competitors could hinder your progress?

Lay out this information in a clear and organized way by conducting a SWOT analysis, which stands for strengths, weaknesses, opportunities and threats. Jot down notes for each of these areas to provide a structured overview of gaps and hurdles in the market.

9. Make informed business decisions

Market research is only valuable if it leads to informed decisions for your company. Based on your insights, devise actionable strategies and initiatives that align with your research objectives. Whether it’s refining your product, targeting new customer segments or adjusting pricing, ensure your decisions are rooted in the data.

At this point, it’s also crucial to keep your team aligned and accountable. Create an action plan that outlines specific steps, responsibilities and timelines for implementing the recommendations derived from your research. 

10. Monitor and adapt

Market research isn’t a one-time activity; it’s an ongoing process. Continuously monitor market conditions, customer behaviors and industry trends. Set up mechanisms to collect real-time data and feedback. As you gather new information, be prepared to adapt your strategies and tactics accordingly. Regularly revisiting your research ensures your business remains agile and reflects changing market dynamics and consumer preferences.

Online market research sources

As you go through the steps above, you’ll want to turn to trusted, reputable sources to gather your data. Here’s a list to get you started:

• Crunchbase: As mentioned above, Crunchbase is an online platform with an extensive dataset, allowing you to access in-depth insights on market trends, consumer behavior and competitive analysis. You can also customize your search options to tailor your research to specific industries, geographic regions or customer personas.

• Academic databases: Academic databases, such as ProQuest and JSTOR , are treasure troves of scholarly research papers, studies and academic journals. They offer in-depth analyses of various subjects, including market trends, consumer preferences and industry-specific insights. Researchers can access a wealth of peer-reviewed publications to gain a deeper understanding of their research topics.
• Government and NGO databases: Government agencies, nongovernmental organizations and other institutions frequently maintain databases containing valuable economic, demographic and industry-related data. These sources offer credible statistics and reports on a wide range of topics, making them essential for market researchers. Examples include the U.S. Census Bureau , the Bureau of Labor Statistics and the Pew Research Center .
• Industry reports: Industry reports and market studies are comprehensive documents prepared by research firms, industry associations and consulting companies. They provide in-depth insights into specific markets, including market size, trends, competitive analysis and consumer behavior. You can find this information by looking at relevant industry association databases; examples include the American Marketing Association and the National Retail Federation .
• Social media and online communities: Social media platforms like LinkedIn or Twitter (X) , forums such as Reddit and Quora , and review platforms such as G2 can provide real-time insights into consumer sentiment, opinions and trends. 

Market research examples

At this point, you have market research tools and data sources — but how do you act on the data you gather? Let’s go over some real-world examples that illustrate the practical application of market research across various industries. These examples showcase how market research can lead to smart decision-making and successful business decisions.

Example 1: Apple’s iPhone launch

Apple ’s iconic iPhone launch in 2007 serves as a prime example of market research driving product innovation in tech. Before the iPhone’s release, Apple conducted extensive market research to understand consumer preferences, pain points and unmet needs in the mobile phone industry. This research led to the development of a touchscreen smartphone with a user-friendly interface, addressing consumer demands for a more intuitive and versatile device. The result was a revolutionary product that disrupted the market and redefined the smartphone industry.

Example 2: McDonald’s global expansion

McDonald’s successful global expansion strategy demonstrates the importance of market research when expanding into new territories. Before entering a new market, McDonald’s conducts thorough research to understand local tastes, preferences and cultural nuances. This research informs menu customization, marketing strategies and store design. For instance, in India, McDonald’s offers a menu tailored to local preferences, including vegetarian options. This market-specific approach has enabled McDonald’s to adapt and thrive in diverse global markets.

Example 3: Organic and sustainable farming

The shift toward organic and sustainable farming practices in the food industry is driven by market research that indicates increased consumer demand for healthier and environmentally friendly food options. As a result, food producers and retailers invest in sustainable sourcing and organic product lines — such as with these sustainable seafood startups — to align with this shift in consumer values. 

The bottom line? Market research has multiple use cases and is a critical practice for any industry. Whether it’s launching groundbreaking products, entering new markets or responding to changing consumer preferences, you can use market research to shape successful strategies and outcomes.

Market research templates

You finally have a strong understanding of how to do market research and apply it in the real world. Before we wrap up, here are some market research templates that you can use as a starting point for your projects:

• Smartsheet competitive analysis templates : These spreadsheets can serve as a framework for gathering information about the competitive landscape and obtaining valuable lessons to apply to your business strategy.
• SurveyMonkey product survey template : Customize the questions on this survey based on what you want to learn from your target customers.
• HubSpot templates : HubSpot offers a wide range of free templates you can use for market research, business planning and more.
• SCORE templates : SCORE is a nonprofit organization that provides templates for business plans, market analysis and financial projections.
• SBA.gov : The U.S. Small Business Administration offers templates for every aspect of your business, including market research, and is particularly valuable for new startups. 

Strengthen your business with market research

When conducted effectively, market research is like a guiding star. Equipped with the right tools and techniques, you can uncover valuable insights, stay competitive, foster innovation and navigate the complexities of your industry.

Throughout this guide, we’ve discussed the definition of market research, different research methods, and how to conduct it effectively. We’ve also explored various types of market research and shared practical insights and templates for getting started. 

Now, it’s time to start the research process. Trust in data, listen to the market and make informed decisions that guide your company toward lasting success.

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Sales CRM Terms

What is Market Research? (Explained With Examples)

Oct 11, 2023

Market research is an essential component of any business strategy. It helps companies understand their target market, identify consumer preferences, and make informed decisions about product development, marketing campaigns, and overall business growth. In this article, we will explore the concept of market research in detail, providing clear definitions, discussing advantages and disadvantages, and providing real-world examples to illustrate its importance

1°) What is Market Research?

Market research is the process of gathering and analyzing relevant data about a target market to gain insights into consumer behavior, preferences, and needs. It involves collecting both qualitative and quantitative data to understand market trends, competitor analysis, and customer satisfaction levels.

Market research plays a crucial role in helping businesses make informed decisions and develop effective strategies. By understanding the market dynamics and customer demands, companies can tailor their offerings to meet the specific needs of their target audience. This not only enhances customer satisfaction but also increases the chances of business success.

1.1 - Definition of Market Research

Market research can be defined as the systematic gathering, interpretation, and analysis of data about a specific target market, industry, or product/service. It helps businesses understand market dynamics, customer demands, and competitor strategies, ultimately enabling them to make informed decisions.

Market research involves various methods and techniques to collect data, such as surveys, interviews, focus groups, and observation. These methods help researchers gather both qualitative and quantitative data, providing a comprehensive understanding of the target market.

1.2 - Advantages of Market Research

There are several advantages of conducting market research:

Market Insights: Market research provides valuable insights into customer preferences, behaviors, and pain points, allowing businesses to tailor their offerings to meet customer needs effectively. By understanding what drives consumer decision-making, companies can develop marketing strategies that resonate with their target audience.

Competitor Analysis: By conducting market research, companies can gain a comprehensive understanding of their competitors, their strengths, weaknesses, and unique selling propositions. This knowledge helps businesses refine their own strategies and stand out in the market. It enables companies to identify opportunities for differentiation and develop competitive advantages.

Product Development: Market research helps businesses identify potential gaps in the market, enabling them to develop innovative products that satisfy unmet consumer needs. By understanding customer preferences and pain points, companies can create products that address specific challenges or provide unique solutions.

Evidence-Based Decision Making: By collecting and analyzing data, market research eliminates guesswork and supports data-driven decision making, reducing the risk of making costly mistakes. It provides businesses with the necessary information to evaluate market opportunities, assess risks, and make informed choices.

1.3 - Disadvantages of Market Research

While market research offers numerous benefits, it also has certain limitations:

Time-consuming: Conducting comprehensive market research can be a time-consuming process, requiring careful planning, data collection, and analysis. It involves identifying research objectives, designing research methodologies, collecting data, and analyzing the findings. This process can take weeks or even months, depending on the scope of the research.

Costly: Market research can be expensive, especially when involving large sample sizes or advanced research techniques. The costs include expenses related to data collection, analysis, and hiring research professionals. Small businesses with limited budgets may find it challenging to invest in extensive market research.

Accuracy Limitations: Despite efforts to ensure reliability, market research results are still subject to bias, sample error, and respondent inaccuracies. Researchers must carefully design their studies to minimize these limitations, but it is impossible to completely eliminate them. The accuracy of market research findings depends on the quality of data collection, sample representativeness, and the honesty of respondents.

2°) Examples of Market Research

Real-world examples can help illustrate the practical application of market research:

2.1 - Example in a Startup Context

Imagine a startup aiming to disrupt the meal delivery industry. Before launching their service, they conduct market research to identify the preferences and demands of their target audience. Through surveys, focus groups, and data analysis, they uncover that convenience, healthy options, and affordability are essential factors for their target market. Armed with this information, they develop a meal delivery service that meets these needs and differentiates themselves from established competitors.

For instance, during their market research, the startup discovers that their target audience values convenience above all else. They find that busy professionals and families are looking for a meal delivery service that can provide them with quick and easy options for their busy lifestyles. Armed with this insight, the startup decides to focus on developing a user-friendly mobile app that allows customers to easily order meals with just a few taps on their smartphones. This innovative approach to convenience sets them apart from their competitors and attracts a loyal customer base.

In addition to convenience, the startup also uncovers a strong demand for healthy meal options. They find that their target audience is health-conscious and actively seeks out nutritious meals that align with their dietary preferences. To cater to this demand, the startup partners with local farms and suppliers to source fresh and organic ingredients for their meals. They also collaborate with nutritionists and chefs to create a menu that offers a variety of healthy and delicious options. This commitment to providing healthy meals not only meets the needs of their target audience but also positions the startup as a trusted and reliable choice in the market.

Lastly, the startup identifies affordability as a key factor for their target market. They discover that price sensitivity is high among their audience, and they are looking for cost-effective meal delivery options that don't compromise on quality. To address this, the startup adopts a pricing strategy that offers competitive prices while still maintaining the quality and value of their meals. They also introduce subscription plans and loyalty programs to incentivize repeat customers and provide additional savings. This focus on affordability allows the startup to attract price-conscious customers and gain a competitive edge in the market.

2.2 - Example in a Consulting Context

A consulting firm specializing in marketing strategy decides to expand its service offerings. To ensure they align with market demand, they conduct market research to identify the most sought-after services and emerging industry trends. By analyzing market data, interviewing industry experts, and conducting competitor analysis, they identify a gap in the market for data-driven digital marketing strategies. This research helps the consulting firm refine their service offerings and attract new clients.

During their market research, the consulting firm uncovers a growing demand for data-driven digital marketing strategies. They find that businesses are increasingly looking for ways to leverage data and analytics to optimize their marketing efforts and drive better results. Armed with this insight, the consulting firm decides to develop a specialized service that focuses on helping businesses harness the power of data in their marketing strategies.

To deliver this service, the consulting firm invests in hiring data analysts and marketing experts with a strong background in data-driven marketing. They also develop proprietary tools and software that can collect, analyze, and interpret marketing data to provide actionable insights and recommendations to their clients. By offering this specialized service, the consulting firm is able to position themselves as industry leaders in data-driven marketing and attract clients who are seeking innovative and effective marketing solutions.

In addition to data-driven marketing, the consulting firm also identifies an emerging trend in influencer marketing. They find that businesses are increasingly turning to influencers and social media platforms to reach their target audience and build brand awareness. Recognizing the potential of this trend, the consulting firm expands their service offerings to include influencer marketing strategies. They develop partnerships with popular influencers in various industries and create comprehensive influencer marketing campaigns for their clients. This expansion allows the consulting firm to tap into a growing market and provide their clients with a holistic approach to digital marketing.

2.3 - Example in a Digital Marketing Agency Context

A digital marketing agency wants to optimize its client's pay-per-click (PPC) advertising campaigns. They conduct market research to understand consumer behavior and identify effective strategies. By analyzing search data, conducting A/B testing, and reviewing industry case studies, they discover that creating personalized ad copy and optimizing landing pages increases click-through rates and conversions. Armed with this knowledge, the agency produces better results for their clients and improves their overall reputation.

During their market research, the digital marketing agency delves into consumer behavior to gain insights into what motivates users to click on PPC ads and convert into customers. They find that personalization is a key factor in capturing the attention of users and driving conversions. Armed with this insight, the agency develops a strategy that focuses on creating personalized ad copy that resonates with the target audience. They conduct extensive research on the target audience's demographics, interests, and preferences to craft ad copy that speaks directly to their needs and desires. This personalized approach increases the relevance and effectiveness of the PPC ads, resulting in higher click-through rates and conversions for their clients.

In addition to personalized ad copy, the digital marketing agency also discovers the importance of optimizing landing pages in maximizing the success of PPC campaigns. They find that a well-designed and user-friendly landing page can significantly impact the conversion rate of PPC ads. Armed with this insight, the agency conducts A/B testing to identify the most effective landing page design and layout. They analyze user behavior, conduct heat map analysis, and gather feedback from users to refine and optimize the landing pages. This meticulous approach to landing page optimization leads to improved conversion rates and a higher return on investment for their clients' PPC campaigns.

2.4 - Example with Analogies

Imagine a chef who wants to create a new dessert recipe. Before experimenting with ingredients, they conduct market research to gather inspiration and understand current dessert trends. By analyzing popular recipes, studying customer reviews, and experimenting with flavors, the chef can develop a unique and delicious dessert that resonates with their target audience.

During their market research, the chef explores various dessert trends and flavors that are currently popular among consumers. They analyze social media platforms, food blogs, and culinary magazines to identify the latest dessert trends and gather inspiration for their own creation. Armed with this knowledge, the chef experiments with different flavor combinations, textures, and presentation styles to develop a dessert that not only satisfies the taste buds but also captures the attention of their target audience.

The chef also pays close attention to customer reviews and feedback on existing dessert recipes. They analyze the strengths and weaknesses of popular recipes and use this information to refine their own creation. By incorporating customer preferences and addressing common complaints or suggestions, the chef ensures that their dessert stands out from the competition and meets the expectations of their target audience.

Market research plays a pivotal role in understanding consumer needs, identifying market opportunities, and driving business success. Whether you are a startup, consulting firm, or digital marketing agency, conducting market research can provide valuable insights, inform decision-making, and improve overall business performance.

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Arnaud Belinga

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What is marketing research? Definition and examples

Marketing Research involves systematically collecting data about consumers, rivals, and other entities. That data is analyzed to gain a better understanding of consumers’ needs and other features of the market. Marketing people then summarize the data and conclusions in a report. The report helps senior managers and business owners make informed decisions regarding future plans and strategies.

Effective marketing research also aids in identifying potential new markets or customer segments, allowing companies to expand their reach and diversify their customer base.

Moreover, marketing research continuously evolves to adapt to emerging trends and technologies, ensuring that businesses stay competitive in rapidly changing markets.

“Marketing research is the systematic gathering, recording, and analysis of qualitative and quantitative data about issues relating to marketing products and services. The goal is to identify and assess how changing elements of the marketing mix impacts customer behavior.”

Three main types of marketing research

Marketing research generally consists of three main types of research: 1. Market research . 2. Product researc h. 3. Consumer research .

Market research

Market research is a study of the market, specifically who purchase a product, why they buy it, how competitors behave, and how something is sold.

It is an organized effort to gather and analyze data about target markets. The following quote comes from our article that defines market research:

“We often use the term with the same meaning as marketing research. However, marketing research concentrates on the marketing processes, while market research is about the market in general.”

Product research

Product research involves identifying a need or want and the characteristics of the product or service that will satisfy it. In other words, if consumers have a desire or want, what features or benefits of your product satisfies them and to what extent.

This type of research helps companies determine what consumers really want or need. They can then tailor their goods or services to match those consumer wants and needs.

According to mnbaskool.com:

“Product research is the marketing research that provides information on the desired characteristics of a product or service . Product research helps companies to understand what the customers really want, so that the product can be tailored to match the needs of the customer. This research can help to refine new product ideas.”

Consumer research

Consumer research is all about identifying consumer preferences, motivations, and purchasing behaviors. Specifically, the consumers that the company is focusing on; in other words, the target consumer.

Many marketing experts say that consumer research is part of market research. Marketers gather information through published sources, direct observation, face-to-face interviews, and mail surveys. Telephone interviews are also popular.

Who performs this type of research?

Some companies perform the research themselves while others hire third-party experts or consultants.

Hiring a consulting firm has both advantages and disadvantages. The main advantage is that consultants are marketing research experts. They probably have more experience and training than employees within the company.

The main disadvantage is that they may not understand some the products or services as well as company employees do. The same may also apply to customers and potential customers.

Compound phrases with ‘marketing research’

A compound phrase consists of two or more words. In business and marketing English, there are many compound phrases with the term ‘marketing research’ in them. Let’s have a look at the give most common ones:

Marketing Research Techniques

Refers to the specific methods and tools used in conducting marketing research. As in:

“The company employed various marketing research techniques, such as surveys and focus groups, to understand consumer preferences.”

Marketing Research Analysis

The process of examining and interpreting data collected through marketing research. For example:

“After conducting surveys, the marketing research analysis revealed a growing demand for eco-friendly products among consumers.”

Marketing Research Ethics

Principles and standards guiding the conduct of marketing research to ensure honesty, fairness, and responsibility. For instance:

“Adhering to marketing research ethics, the firm ensured all participant data was kept confidential and used solely for research purposes.”

Global Marketing Research

Research conducted to understand marketing dynamics, consumer behavior, and trends in international markets. As in:

“In their global marketing research, the company discovered significant cultural differences in consumer behavior across different regions, impacting their product strategy.”

Digital Marketing Research

Involves collecting and analyzing data related to digital marketing efforts, such as online consumer behavior, social media trends, and digital advertising effectiveness. For example:

“The digital marketing research showed that the company’s target audience predominantly engaged with their brand through social media platforms, leading to an increased focus on social media advertising.”

Vide – What is Marketing Research?

This video presentation, from our YouTube partner channel – Marketing Business Network , explains what a ‘Marketing Research’ is using simple and easy-to-understand language and examples.

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How To Do Market Research: Definition, Types, Methods

Jul 25, 2024

11 min. read

Market research isn’t just collecting data. It’s a strategic tool that allows businesses to gain a competitive advantage while making the best use of their resources. Research reveals valuable insights into your target audience about their preferences, buying habits, and emerging demands — all of which help you unlock new opportunities to grow your business.

When done correctly, market research can minimize risks and losses, spur growth, and position you as a leader in your industry. 

Let’s explore the basic building blocks of market research and how to collect and use data to move your company forward:

Table of Contents

What Is Market Research?

Why is market research important, market analysis example, 5 types of market research, what are common market research questions, what are the limitations of market research, how to do market research, improving your market research with radarly.

Market Research Definition: The process of gathering, analyzing, and interpreting information about a market or audience.

Market research studies consumer behavior to better understand how they perceive products or services. These insights help businesses identify ways to grow their current offering, create new products or services, and improve brand trust and brand recognition .

You might also hear market research referred to as market analysis or consumer research .

Traditionally, market research has taken the form of focus groups, surveys, interviews, and even competitor analysis . But with modern analytics and research tools, businesses can now capture deeper insights from a wider variety of sources, including social media, online reviews, and customer interactions. These extra layers of intel can help companies gain a more comprehensive understanding of their audience.

With consumer preferences and markets evolving at breakneck speeds, businesses need a way to stay in touch with what people need and want. That’s why the importance of market research cannot be overstated.

Market research offers a proactive way to identify these trends and make adjustments to product development, marketing strategies , and overall operations. This proactive approach can help businesses stay ahead of the curve and remain agile as markets shift.

Market research examples abound — given the number of ways companies can get inside the minds of their customers, simply skimming through your business’s social media comments can be a form of market research.

A restaurant chain might use market research methods to learn more about consumers’ evolving dining habits. These insights might be used to offer new menu items, re-examine their pricing strategies, or even open new locations in different markets, for example.

A consumer electronics company might use market research for similar purposes. For instance, market research may reveal how consumers are using their smart devices so they can develop innovative features.

Market research can be applied to a wide range of use cases, including:

• Testing new product ideas
• Improve existing products
• Entering new markets
• Right-sizing their physical footprints
• Improving brand image and awareness
• Gaining insights into competitors via competitive intelligence

Ultimately, companies can lean on market research techniques to stay ahead of trends and competitors while improving the lives of their customers.

Market research methods take different forms, and you don’t have to limit yourself to just one. Let’s review the most common market research techniques and the insights they deliver.

1. Interviews

3. Focus Groups

4. Observations

5. AI-Driven Market Research

One-on-one interviews are one of the most common market research techniques. Beyond asking direct questions, skilled interviewers can uncover deeper motivations and emotions that drive purchasing decisions. Researchers can elicit more detailed and nuanced responses they might not receive via other methods, such as self-guided surveys.

Interviews also create the opportunity to build rapport with customers and prospects. Establishing a connection with interviewees can encourage them to open up and share their candid thoughts, which can enrich your findings. Researchers also have the opportunity to ask clarifying questions and dig deeper based on individual responses.

Market research surveys provide an easy entry into the consumer psyche. They’re cost-effective to produce and allow researchers to reach lots of people in a short time. They’re also user-friendly for consumers, which allows companies to capture more responses from more people.

Big data and data analytics are making traditional surveys more valuable. Researchers can apply these tools to elicit a deeper understanding from responses and uncover hidden patterns and correlations within survey data that were previously undetectable.

The ways in which surveys are conducted are also changing. With the rise of social media and other online channels, brands and consumers alike have more ways to engage with each other, lending to a continuous approach to market research surveys.

3. Focus groups

Focus groups are “group interviews” designed to gain collective insights. This interactive setting allows participants to express their thoughts and feelings openly, giving researchers richer insights beyond yes-or-no responses.

One of the key benefits of using focus groups is the opportunity for participants to interact with one another. They spark discussions while sharing diverse viewpoints. These sessions can uncover underlying motivations and attitudes that may not be easily expressed through other research methods.

Observing your customers “in the wild” might feel informal, but it can be one of the most revealing market research techniques of all. That’s because you might not always know the right questions to ask. By simply observing, you can surface insights you might not have known to look for otherwise.

This method also delivers raw, authentic, unfiltered data. There’s no room for bias and no potential for participants to accidentally skew the data. Researchers can also pick up on non-verbal cues and gestures that other research methods may fail to capture.

5. AI-driven market research

One of the newer methods of market research is the use of AI-driven market research tools to collect and analyze insights on your behalf. AI customer intelligence tools and consumer insights software like Meltwater Radarly take an always-on approach by going wherever your audience is and continuously predicting behaviors based on current behaviors.

By leveraging advanced algorithms, machine learning, and big data analysis , AI enables companies to uncover deep-seated patterns and correlations within large datasets that would be near impossible for human researchers to identify. This not only leads to more accurate and reliable findings but also allows businesses to make informed decisions with greater confidence.

Tip: Learn how to use Meltwater as a research tool , how Meltwater uses AI , and learn more about consumer insights and about consumer insights in the fashion industry .

No matter the market research methods you use, market research’s effectiveness lies in the questions you ask. These questions should be designed to elicit honest responses that will help you reach your goals.

Examples of common market research questions include:

Demographic market research questions

• What is your age range?
• What is your occupation?
• What is your household income level?
• What is your educational background?
• What is your gender?

Product or service usage market research questions

• How long have you been using [product/service]?
• How frequently do you use [product/service]?
• What do you like most about [product/service]?
• Have you experienced any problems using [product/service]?
• How could we improve [product/service]?
• Why did you choose [product/service] over a competitor’s [product/service]?

Brand perception market research questions

• How familiar are you with our brand?
• What words do you associate with our brand?
• How do you feel about our brand?
• What makes you trust our brand?
• What sets our brand apart from competitors?
• What would make you recommend our brand to others?

Buying behavior market research questions

• What do you look for in a [product/service]?
• What features in a [product/service] are important to you?
• How much time do you need to choose a [product/service]?
• How do you discover new products like [product/service]?
• Do you prefer to purchase [product/service] online or in-store?
• How do you research [product/service] before making a purchase?
• How often do you buy [product/service]?
• How important is pricing when buying [product/service]?
• What would make you switch to another brand of [product/service]?

Customer satisfaction market research questions

• How happy have you been with [product/service]?
• What would make you more satisfied with [product/service]?
• How likely are you to continue using [product/service]?

Bonus Tip: Compiling these questions into a market research template can streamline your efforts.

Market research can offer powerful insights, but it also has some limitations. One key limitation is the potential for bias. Researchers may unconsciously skew results based on their own preconceptions or desires, which can make your findings inaccurate.

• Depending on your market research methods, your findings may be outdated by the time you sit down to analyze and act on them. Some methods struggle to account for rapidly changing consumer preferences and behaviors.
• There’s also the risk of self-reported data (common in online surveys). Consumers might not always accurately convey their true feelings or intentions. They might provide answers they think researchers are looking for or misunderstand the question altogether.
• There’s also the potential to miss emerging or untapped markets . Researchers are digging deeper into what (or who) they already know. This means you might be leaving out a key part of the story without realizing it.

Still, the benefits of market research cannot be understated, especially when you supplement traditional market research methods with modern tools and technology.

Let’s put it all together and explore how to do market research step-by-step to help you leverage all its benefits.

Step 1: Define your objectives

You’ll get more from your market research when you hone in on a specific goal : What do you want to know, and how will this knowledge help your business?

This step will also help you define your target audience. You’ll need to ask the right people the right questions to collect the information you want. Understand the characteristics of the audience and what gives them authority to answer your questions.

Step 2: Select your market research methods

Choose one or more of the market research methods (interviews, surveys, focus groups, observations, and/or AI-driven tools) to fuel your research strategy.

Certain methods might work better than others for specific goals . For example, if you want basic feedback from customers about a product, a simple survey might suffice. If you want to hone in on serious pain points to develop a new product, a focus group or interview might work best.

You can also source secondary research ( complementary research ) via secondary research companies , such as industry reports or analyses from large market research firms. These can help you gather preliminary information and inform your approach.

Step 3: Develop your research tools

Prior to working with participants, you’ll need to craft your survey or interview questions, interview guides, and other tools. These tools will help you capture the right information , weed out non-qualifying participants, and keep your information organized.

You should also have a system for recording responses to ensure data accuracy and privacy. Test your processes before speaking with participants so you can spot and fix inefficiencies or errors.

Step 4: Conduct the market research

With a system in place, you can start looking for candidates to contribute to your market research. This might include distributing surveys to current customers or recruiting participants who fit a specific profile, for example.

Set a time frame for conducting your research. You might collect responses over the course of a few days, weeks, or even months. If you’re using AI tools to gather data, choose a data range for your data to focus on the most relevant information.

Step 5: Analyze and apply your findings

Review your findings while looking for trends and patterns. AI tools can come in handy in this phase by analyzing large amounts of data on your behalf.

Compile your findings into an easy-to-read report and highlight key takeaways and next steps. Reports aren’t useful unless the reader can understand and act on them.

Tip: Learn more about trend forecasting , trend detection , and trendspotting .

Meltwater’s Radarly consumer intelligence suite helps you reap the benefits of market research on an ongoing basis. Using a combination of AI, data science, and market research expertise, Radarly scans multiple global data sources to learn what people are talking about, the actions they’re taking, and how they’re feeling about specific brands.

Our tools are created by market research experts and designed to help researchers uncover what they want to know (and what they don’t know they want to know). Get data-driven insights at scale with information that’s always relevant, always accurate, and always tailored to your organization’s needs.

Learn more when you request a demo by filling out the form below:

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How To Do Market Research: Types and Templates (2024)

Want to do market research for your brand? Get the best templates and a step-by-step guide in this article.

Market research consists of systematically gathering data about people or companies—a market—and then analyzing it to better understand what that group needs. The results of market research are then used to help business owners make informed decisions about the company’s strategies, operations, and potential customer base.

Market research can help businesses run more efficiently and market more effectively. Ahead, you’ll learn how to do market research for your business, whether you’re breaking into a new market or developing a product .

What is market research?

Market research is the process of gathering data about people or companies and analyzing it to figure out what they’re looking for. Using market research, which is usually summarized in a report, you can make better decisions about your company’s strategy, operations, and potential customers. There are two main types of market research: primary and secondary.

Primary market research

Primary data is first-hand information you gather yourself, or with the help of a market research firm. You control it. Common ways to do primary market research include surveys, interviews, focus groups, and observations. 

Doing your own research has its benefits. You’ll learn exactly what customers want, because you’ve asked them directly. Information is fresh, and you can understand the nuances of your customers, like taste preferences or pricing.

Secondary market research

Secondary data is pre-existing public information, such as data shared in magazines and newspapers or government or industry reports. 

Say you’re a fashion brand expanding its product line to sustainable options, you’d use secondary research to understand market potential. You’d read market reports from Mintel or Nielsen Company to understand consumer demands for sustainable products.

Why is market research important?

Reduce risks for entering new markets.

Misjudging market demand for a new product leads to big financial losses. Market research lowers that risk by providing insights to inform your go-to-market plan, such as:

• Market size
• Income range
• Employment rate
• Market saturation

Gathering this information beforehand helps you understand opportunities and challenges for getting new customers. It also helps you understand emerging trends to stay competitive and identify new growth opportunities.

Understand the competition

A competitive analysis helps you understand the business landscape of a new market and uncovers gaps your business can fill. By analyzing your competitors’ offerings, marketing strategies, and customer feedback, you can create a plan to differentiate yourself in a crowded market. 

Make your business customer-centric

Market research reveals the needs, preferences, and behaviors of potential customers in a new market. For example, if you were expanding into South Korea, you’d want to take into account that shoppers value fast delivery times, readily available products, and the best price possible. 

Armed with this information, you’d want to create a seamless mobile shopping experience with quick load times and quick delivery to appeal to the local market. 

Types of market research

Surveys .

Surveys consist of a list of questions that can be shared with an individual by phone, in person, on a card or paper, or online using a survey software like SurveyMonkey or Qualtrics. 

Ask customers a series of questions to better understand how they feel about a product’s features, or about the experience they had. 

Focus groups

Bringing together groups of people with a common characteristic, such as age, hobby, or buying habits, to better understand their likes and dislikes is a focus group. 

Focus groups typically consist of eight to 12 people and a moderator who poses questions for the group to discuss. They are useful ways of getting feedback on a new product, new features, or new ad campaign.

Observation

When the researcher gathers information simply by watching how a subject interacts with a product, the technique is observation. This is often used in comparing preferences for several types of products.

In-depth interviews

Another market research technique is the one-on-one interview with an individual, during which probing questions are posed to better understand that person’s thoughts, opinions, challenges, and product preferences.

Secondary sources

Secondary research is often a good place to start when conducting market research to better understand industry trends and broader shifts. 

Some of the most useful sources include:

• Industry associations and trade groups
• Trade journals specific to your industry
• Government reports, such as the census or annual federal procurement results
• Industry analysts
• University faculty members 

You can also analyze competitor websites and materials to uncover what convinces potential customers to buy from them.

How to conduct market research

1. choose your focus.

Start by defining what you want to achieve from your research. You might want to:

• Understand a target audience
• Develop new product features
• Create a brand identity
• Improve customer experience

If you’re launching a new line of eco-friendly packaging, for example, your focus might be to understand customer attitudes toward sustainability. 

2. Determine your research methods 

Choose how you’ll capture the data based on your objectives and budget. Combine qualitative research (like interviews and focus groups) with quantitative data (like surveys) to understand attitudes and perceptions.

Maybe you’ll decide to conduct a focus group with environmentally conscious consumers to explore their feelings about packaging materials.

3. Collect the data

Depending on your research methods, you might need to prepare questionnaires, conduct interviews, or analyze data courses. You can conduct the process in-house or outsource it to a third party to help speed things along.

4. Analyze the data

Now it’s time to turn that raw data into insights. Identify any patterns or trends that answer your objectives. For example, you may analyze and identify the percentage of customers who prefer sustainable packaging over traditional options.

5. Report your findings

Prepare a report that includes key insights, data, and recommendations based on your findings. Go beyond stating the findings and explain what they mean for your business. What can you conclude about your market, audience, or product? 

For example, if your research finds high demand for eco-friendly packaging amongst the 25-to-34 demographic, you can conclude a targeted marketing campaign to this group could increase sales. 

Market research templates and guides

Behind every successful business is solid market research. But the hardest part is knowing where to start, and that’s where the following templates come in. These guides can help you stay on track and prepare for your market research process. 

• Shopify’s Market Research Competitor Analysis Template : Contains a free template to help you find your product market fit, so you can sell successfully right away. 
• HubSpot’s Market Research Kit : Contains an instructional guide, SWOT analysis template, focus group template, survey template, and more.
• Qualtrics XM : Qualtrics XM offers a collection of pre-made customer, product, and brand survey templates with a free account.

Online vs. offline marketing research

Online marketing research involves using digital platforms and tools to collect data from your audience. It includes surveys, polls, online focus groups, web analytics, and social media listening . 

The benefit of online research is that you can reach a wide audience quickly and at an affordable price. Because it’s done online, it’s convenient for both researchers and participants. However, online marketing research has some drawbacks, like low response rates and poor data quality. People may not give in-depth explanations or observations if they don’t sit in front of you.

In offline research, data is collected through in-person methods, such as interviews or observations. This allows researchers to examine people’s nonverbal cues and emotions in greater detail. However, offline research is expensive to conduct and analyze, and in-person methods may also limit sample size and diversity. 

How market research helps with competitive analysis

Knowing what your competitors are doing makes it easier to break into the market (or stay ahead of it). If you’re starting an ecommerce business , market research can help you:

• Identify industry trends
• Create a benchmark against competitors 
• Determine competitive pricing strategies
• Find gaps in the market

All these elements inform your competitive analysis, whether you’re developing a new product or entering a new market. In this way, you can uncover areas where competition is intense and gain leverage over your competitors.

Free competitor research template

Find a strategic angle to achieve sales success, uncover your product-market fit, and stand out from the competition with our free template.

Market research examples

Before launching a premium cocktail machine into a new category, the team at Bartesian had to identify a common problem: how hard it was to make great-tasting cocktails at home without any professional skill. 

It was a problem the founder, Ryan Close, struggled with himself, as he explains in a Shopify Masters interview . 

“I could never get [drinks] right, so I understood it was difficult to make great tasting cocktails at home if you’re not a bartender,” Ryan says. 

For his market research, Ryan carried a prototype of the machine around the country, getting in-person feedback. He’d go to trade shows and networking events to talk with people, ask about their pain points, and find out what they’d be willing to pay for his cocktail-making machine. These events helped give Ryan the market research needed to launch Bartesian. 

💡 Read more about how Ryan Close launched Bartesian

Beardbrand 

Beardbrand has become a popular men’s grooming brand since its launch in 2012. In 2023, it was estimated to have generated $25.7 million in revenue. Its founder, Eric Bandholz, took an informal approach to market research rooted in his personal experiences. 

He identified the potential for Beardbrand through several key insights:

• Observation: Noticing an increase in beards and mustaches, and a general interest in male grooming in urban areas, Eric recognized a growing trend that had yet to be fully capitalized on.
• Community engagement: By being an active member of the beard community and blogging about beard care and lifestyle, Eric immersed himself in the target market. This direct engagement provided him with firsthand insights into the needs and wants of his potential customers.
• Participation in events: Attending the 2012 West Coast Beard & Mustache Championships in Portland, Oregon, was a pivotal moment. It was here Eric realized the existence of a like-minded community that was underserved in terms of products and content tailored to their interests.
• Using social media for feedback and ideas: Eric leveraged social media platforms, especially Tumblr, to gather product ideas and gauge community interest. This approach allowed for immediate feedback and helped shape the product offering.

Before officially launching Beardbrand, Eric experimented with blogging about beard care products and engaging with the community. This phase acted as an informal market test, providing insights into the market’s receptivity to various products.

Abel Samet and Samuel Bail started Troubadour after unsuccessfully searching for a high-performing weekender bag. This personal experience highlighted a gap in the market for bags that were both aesthetically pleasing and functionally equivalent to sports gear—lightweight, waterproof, and comfortable.

They did market testing by initially offering their products to friends, family, and colleagues, which allowed them to gather valuable feedback. The brand continued to collect qualitative feedback from customers on their likes and dislikes about the bags, as well as quantitative data on sales and returns to understand needs and buying behavior. This allowed them to innovate and expand, taking calculated risks that paid off.

📚  Read: 10 Lessons Learned From Troubadour’s 10 Years in Business

Qualitative vs. quantitative market research

Qualitative and quantitative research are two fundamental approaches to doing market research. 

Qualitative research

Focuses on understanding concepts, thoughts, or experiences through subjective data. It explores the howand why of customers’ behaviors through open-ended questions and discussions. It can involve interviews, observations, and textual analysis to develop a more detailed understanding of the participant. 

Quantitative research

Rooted in quantifying a problem through numerical data, like statistics. You’ll normally use quantitative data to generalize results from a larger sample population. These include surveys, questionnaires, and experiments with fixed questions or conditions. 

Even though these two approaches are different, you can combine them to conduct a mixed methods study. This helps further validate your findings and get a better understanding of the issue at hand. 

Conduct your own market research today

Understanding industry shifts, changing consumer needs and preferences, and legislative trends, among other things, can shape where a business chooses to focus its efforts and resources. That’s the value of market research. Use the templates and market research techniques above to improve your process and grow your business. 

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What is market research? FAQ

What are the 4 types of marketing research.

• Exploratory research
• Descriptive research
• Causal research
• Predictive research

What is an example of market research?

An example of market research would be a company conducting a survey to learn more about their target audience’s preferences and buying habits. They might ask questions about age, gender, income level, and what types of products they purchase. The research would then inform the company’s business and marketing strategy. 

How often should market research be conducted?

Businesses can conduct market research on an as-needed basis. If you are launching a new product or entering a new market, you’ll do market research to support the initiative. Some businesses do market research on an annual basis to stay competitive. 

What are the 4 main purposes of market research?

• Identifying and understanding the target market: Market research helps organizations better identify and understand their target market. It can provide insights into customer demographics, preferences, needs and motivations.
• Product/service development and innovation: Market research helps organizations identify and develop new products or services that meet the needs of their target market. It also helps them understand how new products or services can be positioned in the marketplace.
• Market entry and expansion: Market research helps organizations plan and execute successful market entry and expansion. It can help them identify target markets, assess market potential and evaluate the competitive landscape.
• Brand and reputation management: Market research helps organizations maintain and improve their brand and reputation. It can provide insights into customer perception and help organizations differentiate their brand from competitors.

How much does market research cost?

How much market research costs depends on the research method used. For example, face-to-face interviews are more expensive than phone interviews. The sample size required is also a factor. The larger your sample size, the more expensive it will cost. On average, you can expect to pay between $20,000 and $60,000 for a round of market research from a marketing research firm.

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YouTube Marketing in 2024: How To Get Started

Follow this 10-step guide to create a winning YouTube marketing strategy and take your YouTube presence to new heights in 2024.

Table of Contents

83% of adults in the U.S. are on YouTube , and people watch over a billion hours of content each day. That means your business has a huge opportunity to reach your audience via YouTube marketing.

But shouting from the rooftops about your products without a plan won’t get you anywhere. You need a strategy to succeed — and that’s exactly what you’ll find here. Keep reading to find the 10 steps to crush YouTube marketing in 2024.

Bonus: Download the free 30-day plan to grow your YouTube following fast , a daily workbook of challenges that will help you kickstart your Youtube channel growth and track your success. Get real results after one month.

What is YouTube marketing?

YouTube marketing is the practice of promoting a brand, product, or service on YouTube. It can involve a mix of tactics, including (but not limited to):

• Creating organic promotional videos
• Working with influencers
• Advertising on the platform

To market your business on YouTube — whether you’re an entrepreneur or an enterprise corporation — you need to produce what your target customers want.

Sounds simple, right? It is, as long as you know what your customers really want, not just what you think they want (a trap far too many businesses fall into).

Plus, you need to make sure the right people find your videos. YouTube is a search engine so you’ll need to optimize your content for the YouTube algorithm , just like you do for Google SEO.

But why is YouTube marketing so important for your business to invest in?

Let’s cover a few major benefits that YouTube can provide.

• Reach a major audience. YouTube is the second-most visited website in the world . Its users spend an average of 28 hours per month streaming content on the website. And four in five internet users have used this platform at one time or another. Find even more important stats in our roundup that prove just how valuable YouTube can be for business.
• Video content sells. One video marketing survey found that 90% of marketers have gotten a positive ROI from video. And 88% of marketers have found that video helps their audience better understand their product or service.
• Your videos can appear in search results. Not only do you need to pay attention to YouTube SEO , but by considering Google search results, your videos can reach an even wider audience.
• Take advantage of YouTube monetization. Once you’ve built a solid audience, you can make even more money from the ads that appear on your videos.

Now, without further ado, here is your complete, step-by-step checklist for how to successfully promote your business on YouTube.

Create. Schedule. Publish. Engage. Measure. Win.

10-step YouTube marketing strategy

Follow along with these 10 steps to create your business’s YouTube marketing strategy and start promoting your products or services with high-quality video content.

Step 1: Create a YouTube channel for your business

First things first, you have to create a YouTube channel .

Since YouTube is part of Google, you’ll need to create a Google account first to sign up for a YouTube channel. You can use an existing account or create one just for managing your business channel.

Here’s how to get up and running:

• Create a Google account. Or, if you’re a Google Workspace user, use your admin account or create a YouTube-specific account.
• Go to YouTube.com and click the profile photo in the top right corner.
• Click Create a channel at the top of the dropdown menu that appears.

• Enter your business name and handle and upload your logo as your profile photo in the popup that appears before clicking Create channel . (If you’re not sure if you want to use your business name as your channel name, consider using our YouTube channel name generator for some inspiration.)

From there, you’ll be taken to your brand-new YouTube channel!

Click Customize channel to start branding it and inputting key information you’ll need to share with your audience if you hope to gain any subscribers.

To fully complete and brand your new YouTube channel, fill out the following details in each tab:

Basic info:

• Pronouns (only if you’re a solopreneur)
• Description
• Channel URL
• External links
• Contact information
• Profile picture
• Channel art /banner image
• Video watermark
• Video spotlight
• Featured section(s)

Here’s an example of a fully branded YouTube channel so you can get an idea of what to expect once you’re finished:

Check out our step-by-step walkthrough to create a YouTube account for more details.

Now we’re ready to tackle your YouTube video marketing strategy.

Step 2: Learn what your audience likes

Alright, now for the tough stuff. What does your audience really want?

To figure this out, you need to answer two questions:

• Who are you making videos for?
• What are they already watching on YouTube?

To start, it’s helpful to know some basic YouTube demographics . As of January 2024, there’s a pretty even gender split , with 51.2% leaning female and 48.8% leaning male (there is no data on other genders).

Plus, YouTube remains a popular platform for users across generations. The largest distribution of YouTube’s user base falls between the ages of 18 and 49, followed closely behind by those aged 50-64

Source: Pew Research Center

YouTube isn’t only popular in the USA, though. There are over 100 localized versions of YouTube for countries around the world.

Spend some time researching who your target audience is already following on YouTube. What types of videos do they watch? (If you don’t have your target audience figured out yet, we have a free buyer persona template to help out.)

There are a couple of ways to do this.

If you already have your YouTube channel set up, check out your YouTube Analytics .

Specifically, you want to look at audience data like traffic source, viewer age and gender, geography, and the like.

This will give you valuable insights into your audience’s demographics and interests. You can see how many people are finding your videos through search, seeing it in their suggested feed or from other sources.

Or use social listening to find your audience.

This tactic allows you to continuously search social platforms, including YouTube, for mentions of your brand or specific keywords.

If you’re already a Hootsuite user, you’re in luck. Hootsuite’s powerful social listening tools, including sentiment analysis, can help you understand how people really feel about a topic.

Hootsuite just acquired the leading AI social listening solution Talkwalker. That will let you understand the sentiment behind brand mentions with Talkwalker’s AI-powered tools — right from your Hootsuite dashboard!

Talkwalker is also one of the few AI social listening tools that literally listens —monitoring audio content in videos and podcasts for mentions and references to your hot topics.

By seeing what people are saying about you or your industry, you can find out what people want to know and use that for video content ideas.

Step 3: Research your competition

The fastest way to grow on YouTube is to figure out what’s working for your competition and then do that…but better.

You can start by looking up channels from the competitors you already know. Perform a competitor analysis for the following:

• Subscriber count
• Average views per video
• Frequency of posting
• Overall video quality
• What people are saying in the comments
• The main topics they post about

And then ask yourself:

• What are their most popular videos?
• How are they presenting themselves?
• What is their brand voice?
• How can I differentiate my company from them?
• What ideas can I get for new content from this channel?

Put all your notes into a spreadsheet to help you keep track.

One of your sheets should also consist of a SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Understanding these traits can help you figure out how to improve on your competitors’ strategies.

We’ve got a free social media competitor analysis template to get you going right away.

At first, your goal is probably to grow your subscribers and audience as fast as possible. So write down your competitors’ subscriber counts and views. Track your own progress against theirs monthly.

Plus, if you’re competitive, the desire to crush their numbers will motivate you to keep going with your channel, even if growth is slow at first.

Step 4: Study your favorite YouTube channels

Besides learning from your competitors, you should also be learning from your favorite YouTube channels. These don’t even have to be channels related to your industry — just channels you enjoy and want to learn from.

Consuming YouTube content will help you learn a lot about what’s working, especially since it’s always changing.

For example, did you know good audio quality is more important than video quality? Bad audio can deter people from watching your video or subscribing.

A lot goes into making YouTube videos people want to watch. When you watch others, pay attention to things like:

• Video thumbnails
• Channel art
• How other creators are linking to posts or products
• How other creators edit their videos, including text popups and other special effects

There are even entire channels devoted to video editing and YouTube growth. You can track them, or keywords relating to YouTube growth, in your Hootsuite dashboard.

Step 5: Plan and create your content

Now that your channel is set up and you’ve gotten an idea of the content that works well on YouTube, it’s time to put together a content plan for your own YouTube videos.

You’ll want to start by compiling a list of ideas. This might include:

• Questions your audience has asked you
• Trends you find online in your industry
• Popular competitor videos
• Options from our list of 100+ YouTube video ideas
• Experiments you want to try

Compile a list of 10 or so ideas to get started with. While you can find the right publishing cadence later, it’s a good idea to start your channel with a bang, uploading several videos that you can start promoting.

Then, you’ll want to create a video creation, publication, and promotion strategy. Add tasks like:

• Recording your content
• Editing the video together
• Uploading to YouTube
• Optimizing your video (more on this in the next step)
• Scheduling your video content
• Promoting your video

Once you’ve created your first batch, find a consistent schedule — like every 1-2 weeks — that you can keep up with in order to grow your channel.

Step 6: Optimize your videos to get views

Now let’s talk about how you can get views for all of the content you’re planning. YouTube’s 2 billion users watch about 1 billion hours of video content every single day. So how do you rise above the noise and get YouTube’s algorithm to show your videos?

If you’re familiar with SEO and Google’s algorithm, YouTube works in a similar way, but with one key difference — personalization.

When you search a phrase on Google, you’re served roughly the same website results as other people. I say “roughly,” because some results change based on location.

But if you and a buddy sat next to each other in the same room, on the same Wi-Fi and searched for the same keyword, you’d see the same results.

Not the case on YouTube.

When YouTube shows you search results, they take into account the keyword and similar things Google looks for: How popular a video already is, keywords in the title, etc. But YouTube also factors in your watch history and the types of videos it knows you like to watch.

That’s why no two users’ YouTube homepage or search results will be 100% alike.

Personalization plays a role, but it’s still important to do all those other YouTube SEO tasks to get your videos found in search.

Here are six ways you need to optimize your videos to get more views.

Do keyword research

Before you can optimize your video, you need to know what you’re optimizing for. Keyword research gives you the phrases people are using to find content so you can add it to yours, too. (More on this in a sec.)

You can use Google Keyword Planner for keyword research . Additionally, type your topic into the YouTube search bar and see what comes up. These are all things real people have searched for. This can give you ideas for new keywords.

Add your keywords to your video

You should have one main keyword and a few additional ones for each video. Here’s where to add them:

• Video title. Make sure your main keyword features prominently in your video title
• Video description . Input your main keyword within the first three sentences, then add 1-2 related keywords
• Video tags . According to YouTube, this has minimal impact, but use your keywords as tags anyway (consider using a tool like TubeBuddy to help find more relevant tags)
• Hashtags. Include 1-2 hashtags with your main keyword and a relevant keyword at the bottom of your video description

Use timestamps

YouTube timestamps are like breaking your video into chapters. It allows viewers to skip around to the sections they’re most interested in. This increases the chance they’ll watch more of your video.

Take a look at how the Hootsuite Labs team uses timestamps to help their audience navigate longer videos:

Create a detailed video description

Each video’s description should have a unique section of a few sentences describing what it’s about. But, you can create default descriptions to save time for the parts you want in every video.

Here’s what you want to include in your full video description:

• Synopsis of video
• Timestamps/chapters
• Relevant video and website links
• Link to your homepage
• Links to your other social media accounts
• Links to your products or services mentioned in the video
• A call to action

Create an engaging video thumbnail

Custom thumbnails are so important for views. Besides your title, it’s the only other thing users have to decide if they want to watch your video or not.

What counts as a good YouTube thumbnail will vary depending on your audience. As a minimum, make sure it isn’t just a screenshot from your video. Use a photo or your brand elements and add some text to lure viewers in — like Hootsuite does on the Hootsuite Labs channel :

Current specs are a 16:9 format with a minimum size of ​​1280 x 720 pixels.

Respond to comments

YouTube is a social network, right? So act like it. Responding to viewer comments shows you’re there to build a community, not to push out self-promotional content.

Here’s a secret : It also boosts your video’s status to the algorithm because more comments = a more popular-seeming video.

Step 7: Market your YouTube channel and attract followers

Now it’s time to promote your video content so you can get more subscribers and grow your channel. Once you’ve started creating, publishing, and optimizing your videos, you need to create a distribution strategy that helps spread the word.

While YouTube SEO should help you improve your overall reach on the platform, there is also work to be done off the platform.

Cross-promote your new YouTube channel on your website, other social media platforms, email newsletter, and more. Some distribution channels include:

• Adding a link to your channel from your website and email newsletter
• Embedding relevant videos onto your landing pages and blog posts
• Linking to playlists and videos from your social media channels and newsletter
• Collaborating with other brands or creators for cross-promotion
• Sharing links to relevant videos in online forums and communities

Get the word out that your brand now has a YouTube channel, create consistent (and great) content, and watch that subscriber count grow.

Step 8: Test YouTube advertising

Not growing fast enough? Try YouTube ads .

Most YouTube ads are videos but you can also place banner ads, either in videos or on the website. You can also make your video ads either skippable (after the first 5 seconds) or unskippable (for a max of 15 seconds).

Here’s an example of what a skippable YouTube ad looks like:

As a Google company, YouTube ads operate through the Google Ads platform. Running successful ads requires a strategy of its own, which we detail in our guide to Google Ads .

Besides the campaign strategy, before you try out paid ads, make sure you have:

• A rock-solid understanding of who your audience is
• Optimized your YouTube channel’s visual branding and description
• Uploaded at least 5-10 videos so your new visitors can get a sense of what you’re all about

Step 9: Try working with YouTube creators

One great way to boost your reach and become a more well-known presence on YouTube is to work with YouTube creators . There are tens of thousands of influencers on YouTube, giving you a wide range of video creators to choose from.

Plus, while new social platforms pop up all the time and become the “hot” place to advertise, YouTube has remained a high-performing channel for brands. And it’s the number one platform for consuming influencer marketing content.

As with any form of paid advertising or marketing campaign, you can’t jump straight into an influencer partnership without some prep work. A few things to keep in mind before you start include:

• Know your audience and know your goals
• Follow FTC guidelines for disclosing paid or sponsored content — ensure your creator partner uses the hashtags #ad or #sponsored, as a minimum
• Choose an influencer who aligns with your brand and who you trust to produce high-quality content
• Analyze your results after the campaign and learn what to do differently next time

Influencer video content examples

There are several different types of influencer videos you can work with a creator to make. Some of those include:

• Unboxing/haul videos. Influencers will open different PR packages that brands send to them; these are common ways influencer gifting campaigns are featured
• Tutorials . Influencers will dedicate a full video explaining how to do something using your product/service
• Product reviews. Influencers will try out your product/service and review it for their viewers
• Product placement/mentions. Throughout regular videos, influencers will subtly showcase or mention products that they use, sometimes providing discount codes for their audience
• Micro-ads. Influencers will include a micro-ad or promotion of your product in the middle of their video
• Sponsored videos . Your brand sponsors an entire video, i.e., if a makeup brand sponsors an influencer’s “get ready with me” video

Here’s an example of a sponsored video where makeup artist NikkieTutorials is creating a full-face makeup look using only SHEGLAM products:

If you want to work with influencers, you’ll need to compile a list of relevant creators and start reaching out to them to get an understanding of what they offer, what their rates are, and if a partnership makes sense.

Step 10: Analyze and adapt

As with all marketing, you need to track your YouTube analytics at least monthly. Use YouTube’s built-in reports to see what your audience is watching, what they like the most, where your traffic is coming from and more.

Use analytics to track your channel growth, too. Write down your numbers monthly for:

• Subscribers
• View duration
• Impressions
• Your click-through rate (CTR)

This becomes your benchmark to measure your channel by each month. Not growing? Then it’s time to adjust your YouTube marketing strategy.

5 YouTube marketing tools

Boost your YouTube marketing results with the use of helpful tools. Some must-haves are as follows.

1. Hootsuite

Hootsuite’s YouTube scheduling tools are perfect for crafting a consistent and easy-to-manage YouTube content strategy.

While you can always just schedule your videos within YouTube Studio, why step out of your (work)flow? Hootsuite can schedule all your social media posts, not just your YouTube videos.

More than a scheduler, Hootsuite’s dashboard allows you to monitor brand and keyword mentions across all your channels. You can do everything you need to for social media directly from Hootsuite.

That includes post creation, advertising, and analytics reporting, and you can save a ton of time by responding to comments directly from your dashboard.

Your entire team can have access to collaboration tools that allow you to effectively manage social accounts at scale, all in one place.

2. TubeBuddy

TubeBuddy is a Chrome extension that can be a huge help when it comes to optimizing your videos and creating a solid content strategy. As you use the YouTube search bar for keyword research, TubeBuddy’s extension can provide you with keyword scores, ensuring you find the best content ideas for your strategy.

More than that, it can help you pull together tags, write comprehensive descriptions, and get basic analytics from your videos that help you adapt your strategy and continue your growth.

VidIQ is another tool that can help you find the best keywords and optimize your content. It also comes with an AI content generator to help you write descriptions and maximize each video’s potential.

Get personalized video ideas, analyze forecasts for video performance, audit your competitors, and access a wealth of AI tools that you can use to improve your content.

Canva can be a big help in a number of different ways. If you don’t have a video editor and/or graphic designer on staff, Canva is the perfect tool for getting help with video editing, thumbnail creation, and any other video or graphic needs you might have for your channel.

Create your channel art, design a template for stunning video thumbnails, and even create short videos using Canva’s video and graphic design editing functions.

5. Mentionlytics

Mentionlytics is the perfect tool for monitoring online conversations around your brand and industry, helping you find even more content ideas for your YouTube channel. Get insights from across websites and social media channels that can feed into your strategy.

Plus, Mentionlytics offers social media reporting, publishing capabilities, sentiment analysis, and more to help with your other marketing tactics.

Let Hootsuite make growing your YouTube channel easier. Get scheduling, promotion and marketing tools for your entire team, all in one place. Sign up free today.

With files from Chloe West .

Grow your YouTube channel faster with Hootsuite . Easily moderate comments, schedule video, and publish to Facebook, Instagram, and X/Twitter.

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As an ex-agency strategist turned freelance WFH fashion icon, Michelle is passionate about putting the sass in SaaS content. She's known for quickly understanding and distilling complicated technical topics into conversational copy that gets results. She has written for Fortune 500 companies and startups, and her clients have earned features in Forbes, Strategy Magazine and Entrepreneur.

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25 YouTube stats marketers should know in 2024 [Updated]

Written by by Jacqueline Zote

Published on  March 20, 2024

Reading time  7 minutes

Marketing on YouTube is more than just pumping out videos and hoping for views. You need to have a solid understanding of the platform and who uses it, so you know what to create. The latest YouTube stats can give you the insights and understanding you need to successfully market on the platform.

We put together some of the most vital social media statistics for YouTube to help you understand the platform better. Let’s take a look.

YouTube data and channel statistics

Youtube usage statistics, youtube audience and demographics statistics, youtube advertising statistics, youtube video and marketing statistics, youtube influencer statistics.

Before getting into general YouTube stats, let’s get personal. If you currently manage a presence on the platform, you can check your channel statistics using  YouTube analytics . (Also, if you don’t have a brand account on YouTube, now’s a great time to  create a channel .)

Access the YouTube analytics tool by going to  studio.youtube.com  or by clicking your profile icon and selecting “ YouTube Studio .”

Once you’re in YouTube Studio, you can click on “ Analytics ” in the left hand panel to access your YouTube performance analytics. There are several reports available but if you’re just looking for a general overview of channel performance, check out the  Channel Overview Report .

The  Channel Overview Report  will provide you with a graph measuring how your views, watch time and subscriber count are trending over time. On social media, consistency is key. If you’re updating your channel at a regular cadence, you should see gains in channel growth over time.

If you’re noticing a dip, check out these creative approaches to  promoting your YouTube channel .

Understanding how people use YouTube will help you assess whether it’s a worthy investment. Things like how many people use the platform and how much time they spend can give you an idea of its standing among social media users.

1. YouTube has 2.49 billion monthly active users

According to the Digital 2024 Global Overview Report , YouTube’s potential ad reach totals 2.49 billion users. That’s half of the 5.04 billion social media users worldwide, making it the second most used social platform. This speaks volumes about the platform’s popularity among social media users.

2. YouTube now has 100 million paying subscribers

An increasing number of people are paying for the platform’s Music and Premium services. Based on the latest YouTube user stats, there are now 100 million paying subscribers on the platform.

3. People spend 48.7 minutes on YouTube each day

With a daily time spent of 48.7 minutes , people are spending more time watching YouTube videos in 2024. This indicates a growth in YouTube engagement , making the platform ideal for engaging your target audience.

4. Viewers watch 1 billion hours of YouTube videos per day on their TVs

On that same note, internal YouTube data shows that YouTube viewers are watching an average of 1 billion hours of content each day on their TVs. So there’s a need to focus on creating high-resolution videos suitable for TV viewing.

5. The average user spends over 28 hours on the YouTube app

Based on the Digital 2024 report, worldwide users spend an average of 28 hours and 5 minutes on the YouTube mobile app. While this data is only for Android users, it speaks volumes about the growing use of YouTube among mobile users.

Looking into YouTube stats on audience and demographics can help you understand who is using the platform. This gives you an idea whether the platform is ideal for reaching your target audience.

6. YouTube users skew male

Roughly  54.4% of YouTube users  are men and 45.6% are women. (There’s no data on other genders available at this time.)

7. The largest age group using YouTube is between ages 25 and 34

Users aged between 25 and 34 account for 21.3% of YouTube’s user base, making them the largest age group to use the platform. The second largest age group is between ages 35 and 44. Additionally, YouTube is popular among young adults aged between 18 and 24, with this group making up 15.5% of the platform’s user base.

8. India has the largest YouTube audience, followed by the United States and Brazil

There are approximately  462 million active YouTube users in India , making it the network’s largest audience by country. The United States comes next with 239 million users while 144 million users are from Brazil.

9. The United States drives the most YouTube traffic

A high user count doesn’t necessarily translate to higher traffic. In fact, the U.S. contributes the most YouTube traffic (21.93%) compared to other countries. In comparison, India, in second position, contributes to just 8.11% of the platform’s traffic.

If you’re planning to run YouTube ads , you need to gauge the platform’s advertising performance. Whether this involves looking into the ad revenue or the best ad formats, it’s essential to study a few vital YouTube advertising stats.

10. YouTube’s ad revenue crossed $30 billion in 2023

The platform’s annual ad revenue for 2023 amounted to $31 billion –up from the previous year’s $29.2 billion. This makes up 10.25% of Google’s global revenues.

11. Consumers find YouTube ads to be more relevant than linear TV advertising

YouTube ad targeting capabilities create a highly tailored experience for the end user. According to a 2022 study, 59% of respondents agree that  YouTube ads are more relevant  than ads on linear TV or other streaming apps.

12. Vertical video can increase conversions per dollar

Vertical video—meaning video filmed and viewed in portrait mode, rather than landscape—has exploded in popularity on the platform since the launch of YouTube Shorts. People have been watching YouTube on a variety of screen sizes for quite some time. Now, marketers have the tools they need to optimize for mobile viewing.

Tailoring YouTube ads to adhere to content consumption preferences can drive a noticeable lift in ROI. Vertical creative assets delivered  10% to 20% more conversions per dollar  on YouTube Shorts when compared to landscape assets.

13. Skippable ads perform better than non-skippable ads

Consumers like having a choice, even when it comes to the ads they view. So it’s no surprise that giving viewers the option to skip an ad translates to better-performing ads.

Twenty-nine percent of marketers agree that pre-roll skippable ads are the most effective YouTube ad format. In comparison, only 7% believe that non-skippable ads are effective.

14. YouTube Shorts is quickly becoming a top video advertising platform

Advertisers are increasingly turning to video platforms for short-form video advertising. And YouTube Shorts is quickly gaining ground as one of the leading platforms for short-form video ads. In a survey of ad buyers , 43% say that their largest clients are advertising on YouTube Shorts.

So it’s time to reassess your YouTube ad campaigns to focus on short-form ads and stay ahead of the curve.

You can learn a lot about YouTube marketing by looking at how other marketers are using the platform. Similarly, the types of videos people watch on YouTube will give you an idea of how to market on the platform. So let’s take a look at some key YouTube video stats in addition to the platform’s marketing statistics.

15. Marketers plan to increase their use of YouTube videos in marketing

Marketers are reassessing YouTube’s place in their marketing mix. About 66% of marketers intend to increase their use of YouTube videos. Additionally, 59% plan to increase their organic activities on the platform.

16. YouTube is the second most effective platform for B2C content marketing

The number of marketers using YouTube for organic content marketing increased from 55% to 67% between 2022 and 2023. This growing usage is a result of the platform’s effectiveness.

In fact, YouTube is the second most effective social platform for content marketing after LinkedIn. Eighty-six percent of content marketers consider it at least somewhat effective.

17. YouTube is the number one platform for viewing live content

Among social video viewers in the U.S., 52% use YouTube to watch live content . This makes it the most popular platform for watching live content, putting it ahead of Facebook and Instagram. So if live video is a part of your marketing strategy, YouTube Live is the perfect place to execute it.

18. YouTube Shorts averages 70 billion views per day

Speaking of the popularity of short-form videos , YouTube Shorts now gets an average of 70 billion views each day. Marketers can ride on this wave by creating more videos for YouTube Shorts to engage their audience.

19. YouTube Shorts is the top short-form video platform for discovery

With so many views each day, it comes as no surprise that YouTube Shorts is the #1 short-form video platform for discovering new products and brands. All the more reason to add YouTube Shorts to your video marketing strategy .

20. The most viewed YouTube video of all time is “Baby Shark Dance”

Parents, this one is probably more than familiar. The viral hit took off in 2016 and shot to the top of the list of  most viewed YouTube videos of all time .

The video has almost 14 billion views, as of January 2024.

Knowing the top influencers on YouTube helps you understand which influencers have an impact on the platform’s user base. This can then inform how you work with influencers on the platform. Additionally, it gives you an idea of the types of content that are popular on the platform. Let’s look at a few YouTube statistics on the platform’s top users.

21.  T-Series – 261 million subscribers

The most popular YouTube channel is T-Series with 261 million subscribers. According to the latest YouTube channel stats , T-Series has amassed more than 249 billion views for 20,000+ videos.

22.  MrBeast – 244 million subscribers

MrBeast ranks second overall with 244 million subscribers. His channel has amassed more than 44 billion views for just 780 videos.

23.  CoCoMelon – Nursery Rhymes – 173 million subscribers

Coming up next is the nursery rhymes channel, CoCoMelon with 173 million subscribers. Interestingly, the channel has more views than MrBeast at over 179 billion views . With the channel having uploaded 1,000+ videos, it could be an indicator that video posting frequency impacts your YouTube views stats.

24.  SET India – 169 million subscribers

Another Indian channel to make it to the list, SET India is the fourth most popular channel with 169 million subscribers. The latest numbers show that the channel has 160 billion views with 131,000+ uploads.

25.  Kids Diana Show – 120 million subscribers

Kids Diana Show ranks fifth with 120 million subscribers. The channel has a total of more than 100 billion views with 1,100+ videos.

Turning these YouTube stats into action

These key YouTube statistics give you insights into the platform and its marketing landscape. Transform these insights into action by downloading our useful YouTube strategy template .

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This Stock Market Indicator Has Been 70% Accurate Since 2014. It Signals a Big Move in September.

• The S&P 500 has advanced 18% year to date due to enthusiasm about artificial intelligence and a surprisingly resilient economy.
• September has historically been the worst month for the S&P 500, with the index suffering losses 70% of the time since 2014.
• Market timing strategies are prone to failure, so the most prudent course of action is to stay invested even when stocks could be volatile.
• Motley Fool Issues Rare “All In” Buy Alert

SNPINDEX: ^GSPC

S&p 500 index.

Historically, September has been the worst month of the year for the stock market.

The stock market is having a good year despite headwinds from sticky inflation and high interest rates. The benchmark S&P 500 ( ^GSPC 1.01% ) has climbed 18%, notching more than three dozen record highs in the process.

One reason for that momentum is excitement about artificial intelligence (AI). Chipmaker Nvidia accounts for nearly one-fifth of the gains in the S&P 500, and the Magnificent Seven are collectively responsible for nearly 60% of the gains. Another reason for the market's upward momentum is that most economists expect the Federal Reserve to achieve a soft landing, a scenario in which policymakers bring inflation back to target without causing a recession.

Here's how JPMorgan Chase analysts summarized the situation in their mid-year outlook: "The economy is stronger than you think. AI is just starting. Stocks could move higher. Embrace the rally."

However, the stock market could be headed for trouble, at least temporarily, because the S&P 500 usually declines in September.

History says the "September Effect" will drag the S&P 500 down

Historically, September has been the worst month of the year for the U.S. stock market. In fact, the market has declined so consistently in that particular month that the phenomenon is called the "September Effect." As an example, the S&P 500 has declined in 7 of the 10 Septembers since 2014, or 70% of the time. And the declines have often been brutal, especially in recent years, as listed below.

• 2014: (1.6%)
• 2015: (2.7%)
• 2016: (0.1%)
• 2020: (3.9%)
• 2021: (4.8%)
• 2022: (9.3%)
• 2023: (4.9%)

There is a silver lining to the September Effect. The S&P 500 typically rebounds during the subsequent months of the year, and November has been the best month for the index during the last decade, as shown in the chart below.

The chart shows the average monthly return in the S&P 500 during the last decade. Historically, September has been the worst month of the year for the stock market.

As shown above, during the last decade, the S&P 500 has declined by an average of 2.3% in September. But the index has also rebounded sharply in October and November.

Importantly, a similar pattern holds over longer periods. Using hypothetical data back-tested to 1928, the S&P 500 has declined 56% of the time during September, and the index has fallen by an average of 1.2%, according to Yardeni Research. However, the S&P 500 has also produced a positive return more often than not in October, November, and December.

That said, past performance is never a guarantee of future results. More importantly, it is macroeconomic fundamentals and corporate financial results that drive the stock market, not random circumstances like the month of the year.

Marketing timing strategies are prone to failure

Investors may be tempted to skip September by selling stocks now and buying again once the month has ended. That would be a sensible strategy if the S&P 500 was guaranteed to decline in September. But no one knows with absolute certainty what the stock market will do on any given day, let alone for an entire month.

The problem with market timing strategies is that missing a few good days can have lasting consequences. For instance, $10,000 invested in an S&P 500 index fund in July 2004 would have grown into $73,172 by July 2024, according to JPMorgan. In that scenario, the money compounded at 10.5% annually. However, if the 10 best days are eliminated, that $10,000 investment would have been worth just $33,523 by July 2024. In that scenario, the money compounded at 6.2% annually.

When presented with those facts, investors have asked: "Okay, but what would my return have been if I avoided the 10 worst days?" In that case, the returns would have exceeded 10.5% annually, but anyone who asks that question is missing the point. Not even Wall Street analysts can accurately predict stock market movements, at least not consistently. So, why risk long-term underperformance?

In December 2023, Wall Street analysts at 13 investment banks said they expected the S&P 500 to finish 2024 between 4,200 and 5,200. Essentially all of those analysts have since revised their forecasts because the index currently trades at 5,625, which is 8% higher than the highest initial price target. Of course, the market could backslide before the year ends, but that would not change the fact that it's impossible to consistently predict stock market ups and downs.

Here's the bottom line: Investors should stay invested through September. If the market declines, use the drawdown to buy a few shares of your favorite stocks. If the market goes up, be glad you stayed invested. Either way, remember the golden rule: It is not timing the market that matters, but rather time in the market.

Personally, I like JPMorgan's assessment of the situation. The artificial intelligence boom is just getting started, and many AI stocks are sure to move higher in the long run.

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Trevor Jennewine has positions in Nvidia. The Motley Fool has positions in and recommends JPMorgan Chase and Nvidia. The Motley Fool has a disclosure policy .

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Does Market Share Still Matter?

• Julian R.K. Wichmann,
• Alexander Edeling,
• Alexander Himme,
• Felix Anton Sklenarz

New research suggests that the metric doesn’t mean what it used to.

Market share has traditionally correlated strongly with profitability because of efficiency, market efficiency, and customer perception effects. But, as the authors demonstrate, the relationship has been changed by the digital transformation in firms. The authors’ research finds that the market-share profitability relationship has become weaker for firms that favor investment in value creation over value appropriation and for firms operating in B2B markets. In both cases, digital helps smaller firms catch up with larger rivals. But digital can also amplify market share effects for large firms focusing digital investments on customer-facing processes and for large firms that create digital platforms.

Market share regularly ranks amongst the most important KPIs for C-suite executives. And for good reason: Larger market share has long been associated with higher profitability . But does this relationship still hold today, given companies’ increasing digitalization? Or have strategies focused on market share growth become outdated?

• JW Julian R.K. Wichmann is an assistant professor of marketing at the University of Cologne in Germany. He researches strategic marketing issues surrounding the influence of digitalization and new technologies on retailing, advertising, and brand-consumer relationships.
• AE Alexander Edeling is an associate professor of Marketing at KU Leuven in Belgium.
• AH Alexander Himme is Associate Professor of Management Accounting at Kühne Logistics University in Germany.
• FS Felix Anton Sklenarz is an associate at McKinsey & Company in Hamburg, Germany.

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How to Market Your Self-published Book

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You put in the time and effort to write a book but how can you be sure that anyone will read it? This webinar covers marketing strategies that will help you attract readers to your book.

In this presentation you will learn:

• How to optimize your book’s page on Amazon.
• How to advertise your book without wasting money.
• How to create a compelling author profile on Amazon and Goodreads.
• How to get five-star reviews (without cheating).

Legal Zoom offer (PDF, 177KB)

This program does not offer CE credit.

Daniel Wendler, PsyD

Best-selling author and nationally recognized keynote speaker on topics including neurodiversity, loneliness, and leadership. Daniel built a life of deep connection despite the social challenges of his autism diagnosis, and went on to found ImproveYourSocialSkills.com and become a clinical psychologist so he could help others find social success too. He is also the founder of Marketing for Therapists , a leading online marketing agency for private practice therapists featured by Bloomberg Businessweek magazine. Learn more about Daniel Wendler .

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US requests trade dispute consultations with Canada over new digital services tax

The U.S. has requested trade dispute settlement consultations with Canada over its new digital services tax, the Biden administration said on Friday, adding that the "discriminatory" tax appears inconsistent with Canada's North American trade deal obligations.

Stock market today: US stocks rise on solid earnings and in-line inflation reading

• US stocks surged Friday, with the Dow Jones hitting a record high on new inflation data.
• The personal consumption expenditures Index rose 2.5% year-over-year, matching estimates.
• Strong earnings from Dell Technologies and Marvell, driven by AI, boosted investor confidence.

US stocks moved higher on Friday, with the Dow Jones Industrial Average testing record highs as investors digested new inflation data.

The Personal Consumption Expenditures Index, considered to be the Federal Reserve's preferred inflation gauge, was in-line with the prior reading for the month of July.

The PCE Index rose 2.5% year over year, which was in line with economist estimates, and it rose 0.2% month over month, also in line with estimates.

Fitch Ratings economist Olu Sonola said the PCE data was a "double dose of good news" for investors.

"Inflation prints are slowly but surely becoming boring again as this report continues the recent streak of benign core and headline inflation prints. Consumer spending continues to surprisingly exceed all expectations, a clear indication that the economy continues to be in good shape with solid above-trend growth," Sonola said.

Aside from the inflation data, investors are parsing over solid earnings reports that were released after the market close on Thursday, mainly from Dell Technologies and Marvell Technology.

Both tech-focused companies beat second-quarter profit and revenue estimates, with their respective AI-focused businesses driving the beats.

Shares of Marvell soared 12% in Friday morning trades, while Dell Technologies stock was up 5%.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Friday:

• S&P 500 : 5,617.86, up 0.46%
• Dow Jones Industrial Average : 41,431.05, up 0.23% (+96 points)
• Nasdaq composite : 17,647.97, 0.71%

Here's what else is going on:

• Some Chinese banks are so fearful of sanctions that they're returning payments for goods that have reached Russia.
• OpenAI is raising more money, and potential new investors could reportedly include Apple and Nvidia.
• Here are the 5 takeaways from Kamala Harris and Tim Walz's first joint interview since launching their campaign.
• The EU will push ahead with plans to use frozen Russian funds to aid Ukraine despite US concerns.
• Apple will eclipse Nvidia as the top AI stock in 2025 as it gears up to launch its iPhone 16, Citi said.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil decreased 2.42% to $74.07 a barrel. Brent crude , the international benchmark, dropped 2.11% to $77.16 a barrel.
• Gold was lower by 0.46% to $2,548.40 an ounce.
• The 10-year Treasury yield was flat at 3.872%.
• Bitcoin rose 0.39% to $59,600.

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