Marketing research is the activity of investigating and analyzing customer needs and market trends to assist in the development and improvement of products and services. This activity is a crucial process that is essential for a company’s marketing strategy and product development, and accurately analyzing the market is a vital key to achieving success in business.

In this article, we will explain the essential points of marketing research, along with basic knowledge and practical techniques, through successful case studies.

What is Marketing Research?

Marketing research is not just about gathering information about customers and the market, but also about finding meaning and value in that information through analysis. Through marketing research, companies can discover various business opportunities, such as product and service development and improvement, strengthening relationships with customers, and responding to market changes. In this chapter, we will provide a detailed explanation of the definition and purpose of marketing research.

Definition and Purpose

Marketing research refers to the overall investigative activities within a company’s marketing efforts. Through these research activities, companies collect and analyze information about the market and consumers, providing support for decision-making and strategy formulation. Specifically, these activities include researching and analyzing market trends, competitive situations, customer needs, and preferences.

The purpose of marketing research is to understand customer and market needs and trends and to support the development of optimal solutions to address them. The information obtained through marketing research contributes to improving customer satisfaction, expanding market share and profits, and securing a competitive advantage.

The Need for Marketing Research

The fundamental concept underlying marketing is to create a sales system that aligns with customer needs. Therefore, to engage in marketing activities, understanding customer needs and desires serves as the starting point.

Marketing research is a crucial activity for gaining insight into these customer needs. It involves collecting and analyzing information about customers and the market, serving as the foundational data when formulating marketing strategies. In other words, the ability to develop a marketing strategy in the right direction hinges on the fundamental information provided by marketing research.

Utilizing Research Findings

The results of marketing research primarily provide information about three key elements: “Customers,” “Market,” and “Competitors .” By obtaining information about these aspects, companies can develop effective marketing strategies.

Firstly, customer information tells us “what customers are looking for.” Customers may have latent needs that they are not even aware of themselves, in addition to their obvious needs. Effective marketing research can uncover even these latent needs that customers may not realize. These latent needs can serve as powerful motivators for customer purchasing behavior, adding significant value to product or service development, PR, and distribution strategies.

Secondly, the market informs us “how it should change for the future.” Markets are constantly evolving due to factors such as societal and economic trends, technological innovations, and more. Marketing research provides insights into these changes in the market environment. This information serves as a crucial guideline for how companies and businesses should adapt and evolve.

Furthermore, competitors guide us in “what we should leverage as our strengths.” Competitors are other companies targeting the same customers in the same market. Understanding the strengths and weaknesses of competitors allows us to clearly define the differentiating factors and advantages of our own products or services. It also enables us to explore strategies to counteract competitors and opportunities for collaboration.

Major Techniques and Their Differences

In marketing research, various techniques are utilized depending on the objectives. We will introduce representative methods and their distinctions.

Quantitative Research vs. Qualitative Research

Quantitative research is a survey method that involves statistically quantifying collected data. It is used when you want to understand market trends, target demographics, volumes, and other aspects in numerical terms. Examples include online surveys and questionnaire surveys.
On the other hand, qualitative research aims to collect non-quantifiable information from respondents’ words, actions, or the impressions received by observers. It is used when you want to understand respondents’ emotions, motivations, opinions, and similar aspects. Examples include interviews and focus groups.
The difference between quantitative research and qualitative research lies in the nature of the data used and the research objectives. Quantitative research is characterized by expressing results numerically and is suitable for tasks such as hypothesis testing, factual understanding, and measuring effectiveness. In contrast, qualitative research collects non-numeric data, making it suitable for tasks like hypothesis generation and understanding root causes.
In general, quantitative research is well-suited for measuring quantitative indicators like market size, market share, brand image, satisfaction, advertising effectiveness, and purchase intent. Conversely, qualitative research is ideal for exploring qualitative information such as customer needs, desires, product or service usage scenarios, and factors differentiating them from competitors.

Panel Surveys vs. Ad Hoc Surveys

A panel survey is a research method that involves repeatedly asking the same questions to the same group of respondents over a specified period. It is used to understand the characteristics and trends of a specific group and to observe changes over time. For example, it is suitable for tracking trends in consumer behavior and changes in preferences.

On the other hand, an ad hoc survey is a method used to conduct a one-time survey for a specific research project. Ad hoc surveys are employed when detailed information is needed for a particular issue or question. For instance, it is suitable for surveys aimed at assessing the evaluation of a new product or understanding purchase intent.

The significant difference between panel surveys and ad hoc surveys lies in the timing and continuity of data collection. Panel surveys place emphasis on regularly collecting data from a fixed panel of members. In contrast, ad hoc surveys involve collecting data only once for a specific research purpose.

Panel surveys are often used for quantitative analysis, such as tracking market trends. Furthermore, since panel surveys can track changes over time, they are valuable for evaluating marketing strategies and measuring their effectiveness.

On the other hand, ad hoc surveys are suitable when in-depth insights are required for a specific project. Through ad hoc surveys, detailed analysis can be performed, supporting decision-making in marketing.

Research Implementation Phases

The implementation of marketing research involves a series of stages, including clarifying objectives and goals, planning, data collection, and ultimately analyzing and interpreting the data. These steps are foundational in the research process and play a crucial role in obtaining accurate and reliable results. Here, we will explain the necessary implementation phases when conducting marketing research.

Problem Definition and Planning

In marketing research, problem definition and planning are crucial preparatory stages required to conduct an accurate investigation. By thoroughly conducting this preparation, you can clarify the direction of the research and develop an effective research plan.

Identifying the Problem

In marketing research, the appropriate research methods vary depending on the issues that need to be addressed. Therefore, it is essential to clearly identify the challenges in marketing research to obtain effective research results. Moreover, sharing the identified issues among stakeholders is also a crucial element for the success of the research. When stakeholders share the identified issues, it creates a common understanding of the direction and objectives of the research, facilitating a smooth research implementation process. Additionally, when multiple research issues exist, setting priorities is essential. If there are challenges that are difficult to analyze within the same research, decisions should be made based on priority.
Identifying the issues is a critical step in marketing research, and by clearly identifying the challenges, you can maximize the outcomes of the research.

Sampling Design

Sampling refers to the process of selecting a portion (sample) from the entire population of the research target. Ideally, to enhance the accuracy of analysis, it would be appropriate to survey the entire population. However, due to practical constraints such as cost, time, and workload, sampling is conducted in the majority of surveys. In sampling, it is crucial to ensure statistical reliability by using the appropriate sample size and selection method.
The design of sampling is a highly important step to ensure the reliability and generalizability of survey results. When conducting marketing research, it is necessary to choose the appropriate sampling method and determine the sampling technique and sample size correctly. Some of the representative sampling methods include:

• Simple Random Sampling:

This method involves selecting members from the population where each member has an equal chance of being chosen. It maintains randomness, resulting in an unbiased sample.

• Stratified Sampling:

Stratified sampling involves dividing the population into several strata or subgroups and then selecting samples from each stratum. This method allows for the creation of samples that include members with different characteristics from each stratum in a balanced manner.

• Cluster Sampling:

Cluster sampling divides the population into clusters, randomly selects clusters, and surveys all members within the selected clusters. This method is suitable for large-scale surveys.

Data Collection

Data collection is the stage of obtaining the necessary data for conducting marketing research, and the data obtained at this stage serves as the foundation for research analysis.

Offline and Online Methods

Offline and online are two types of methods used in data collection. Offline methods involve analog techniques that do not rely on the internet, while online methods involve data collection through the internet or digital platforms.
Representative offline methods include face-to-face interviews and postal surveys. The advantages of offline methods include the potential for high response rates when direct communication with the target audience is possible. However, there are disadvantages such as high costs, time requirements, and the potential for geographic or demographic biases in the survey population.
On the other hand, online methods, exemplified by internet surveys, offer advantages such as cost and time savings, as well as access to a broad or specific target audience. However, they may suffer from lower response rates and reduced reliability since the answers collected tend to depend on the survey respondents,
The choice between offline and online methods should be made based on the research objectives and the type of data required. Offline methods are suitable when detailed or qualitative data is needed, while online methods are more appropriate for obtaining large-scale and rapid quantitative data.

Collection of Primary and Secondary Data

Primary data and secondary data are two main types of data used in data collection. Primary data refers to data that is directly collected through original research. In contrast, secondary data is data collected from existing sources and reused from other studies or surveys.
Primary data is collected from sources such as surveys conducted by researchers, interviews, sales data from company systems, and point-of-sale (POS) data. Primary data allows for obtaining the appropriate data tailored to the research objectives, but it typically requires a significant amount of time and resources for collection.
On the other hand, secondary data is data derived from already published sources. This includes government data, market research reports, past studies, online databases, and more. Secondary data can be collected relatively quickly and easily, but there is a lower likelihood that the data will precisely match the research objectives.
The choice between primary and secondary data depends on the research objectives and the characteristics of the study population. Primary data is often used for unique perspectives and specific research analysis, while secondary data is more commonly utilized for broad information analysis and market trend analysis.

Data Analysis and Interpretation

“Data analysis and interpretation” is the stage where collected data is processed according to the research objectives to derive effective analytical results. Data analysis and interpretation are crucial steps to turn collected data into valuable information for marketing activities.

Data Classification and Filtering

Data collected in marketing research undergo classification and filtering to organize and narrow down the data for analysis.

Data classification involves grouping data based on the research objectives. Depending on the research purpose, various methods such as categorization, time-series grouping, and regional grouping can be employed. Classifying a large volume of collected data makes it easier to understand data trends and characteristics.

On the other hand, data filtering is the process of extracting only those data points that meet specific criteria. Filtering methods include text filtering, numeric filtering, date filtering, and more. Filtering helps eliminate data noise and outliers, enhancing the accuracy of the analysis results.

Performing data classification and filtering improves the efficiency of the analysis process and enhances the reliability of the analysis results. Moreover, handling classified and filtered data facilitates smooth data aggregation and analysis using computers and other tools.

Utilizing Statistical Methods

Once data classification and filtering are completed, the next step is to analyze the data using statistical methods. Classified and filtered data can be examined in more detail for trends and relationships through the application of statistical techniques.

Statistical methods involve the use of various statistical techniques on the data. These methods include measures such as mean, standard deviation, and scatter plots for exploring data patterns, as well as analyses of correlation coefficients and regression for examining relationships. The advantage of using statistical methods is the ability to quantitatively understand data trends and relationships. Additionally, by deriving results based on data, it helps minimize subjective biases and approaches as close as possible to objective analysis results. Employing statistical methods rooted in mathematics enhances the reliability and validity of the data. Utilizing statistical methods in market research allows for the understanding of data relationships that may not be apparent with conventional analysis techniques. By identifying the significance and value of information derived from these relationships, it contributes to effective feedback for marketing activities and addressing challenges.

Case Study: Success Stories and Learning

Over the years, numerous companies have leveraged marketing research to guide their businesses towards success. By studying these success stories, you may discover valuable insights that can provide feedback for your own marketing activities.

In this section, we will introduce case studies that offer opportunities for learning through successful examples of marketing research.

Case Study: Adapting to Changes in Consumer Behavior

A lifestyle product brand that initially gained user support by developing simple, material-focused products and emphasizing efficiency by reducing design and packaging waste faced a challenge. Subsequently, specialized stores that emphasized functionality and simplicity emerged, eroding the price advantage the lifestyle brand once had, leading to a decline in performance.

Narrowing Down the Target Audience

In response, this brand decided to change its target audience through market research to capture new market needs. When surveying users, they discovered that simple packaging and design were perceived as “stylish” by certain segments of female consumers.

Therefore, the brand decided to appeal to this new lifestyle-seeking female audience by emphasizing the value of design and quality that arises from deliberately omitting certain functionalities, rather than just simplicity.

Optimizing Promotion Strategy

Along with the shift in target audience, they promoted the image of simplicity leading to a comfortable lifestyle. As a result, they were able to establish a unique brand identity without getting caught up in price competition, ultimately expanding their performance.

Market Expansion Strategy Success Story

A household goods manufacturer, known for their toiletry products, had garnered significant user support. Seeking further business growth, the company contemplated expanding into related markets.

Market Research Pre-analysis

In the prelude to conducting market research, the manufacturer noticed the expansion of the pet-related market. While traditionally they did not sell pet-related products, they hypothesized that their non-woven fabrics and absorption-related technology could be applied in this sector. Consequently, they embarked on the development of pet pads and pet pants.

Differentiation from Competitors

Leveraging their in-house non-woven fabrics and absorption technology, the manufacturer introduced high-quality, user-friendly products to the market. As a result, their products garnered support for superior functionality compared to competing products, leading to a successful foray into the new market of pet products. This market expansion strategy demonstrates how a company can leverage its existing technology to successfully differentiate itself in a new market, going beyond its existing market boundaries.

Summary and Future Outlook

We have introduced the fundamentals and practical methods of marketing research, along with successful case studies. Currently, the waves of technological innovation are sweeping over the field of marketing research. As a result, the landscape of marketing research, including ROI (Return on Investment) and research analysis methods, is poised for significant change.

Therefore, in this article’s summary, we will explain the changes in ROI and new research methods in the field of marketing research, looking ahead to the future.

ROI in Marketing Research

Marketing research is a crucial marketing technique used to gain a deeper understanding of the market and customers, enabling effective strategies and decision-making. However, conducting marketing research requires a significant investment of both time and money, making it important to establish a clear relationship between costs and research outcomes. Therefore, in this discussion, we will delve into the concept of ROI (Return on Investment) in marketing research.

Evaluating Cost-Effectiveness

Marketing research provides essential information to improve a company’s growth and competitiveness, but it’s crucial to evaluate whether the cost-effectiveness of the research is appropriate. First, accurately tally the expenses incurred in the research process. This includes costs like personnel, tools, technology, and participant incentives. Additionally, if research results lead to increased revenue through new market strategies or product development, assess the impact of these outcomes properly.

Furthermore, consider elements that cannot be easily evaluated in monetary terms, such as brand value and customer satisfaction. While assessing these factors may be challenging, they can have a significant impact on marketing activities.

By taking these factors into account comprehensively, you can evaluate the cost-effectiveness of marketing research.

The Importance of Ongoing Research

Marketing research is not a one-time endeavor, as it’s essential to recognize that conducting research once does not provide sufficient information. The market environment evolves daily along with customer needs. To maintain and enhance a company’s competitiveness, it’s crucial to engage in ongoing research. Continuous research allows companies to stay updated on market trends and changes in customer behavior, enabling them to adapt their marketing activities to address new needs. Additionally, by monitoring industry trends and competitors’ actions over time, companies can develop marketing strategies with a longer-term perspective.

The Future of the Industry and New Approaches

The modern business environment is undergoing rapid changes, and the marketing industry is no exception. The fast-paced advancement of technology, shifts in societal values, and increasing environmental awareness are all having a significant impact on marketing research. Here, we will focus on the future of the marketing industry and explore new research methods and initiatives.

AI and Marketing Research

The rise of Artificial Intelligence (AI) is bringing significant transformation to the field of marketing research. AI has made it possible to process and analyze vast amounts of data, perform advanced customer segmentation, and personalize marketing efforts, which were challenging with traditional methods.

AI’s ability to analyze massive datasets instantly allows for deeper insights into consumer behaviors and preferences, enabling the optimization of marketing strategies. Additionally, AI-powered predictive analytics can aid in accurate sales and demand forecasting, potentially leading to more efficient inventory management and production planning.

Furthermore, AI contributes significantly to automating and streamlining research processes. Building automated market research systems can significantly reduce the time and cost involved in research, making continuous data collection and analysis feasible. However, when incorporating AI into marketing research, addressing issues such as data quality, privacy protection, and bias mitigation is essential. An ethical approach, aligned with societal values, is required to conduct comprehensive market research using AI.

Sustainability and Ethical Research

With the changing values of modern society, “sustainability” and “ethical” considerations have become crucial themes in marketing research. For instance, when conducting marketing research, it is essential to collect data using environmentally-friendly methods and minimize waste. To achieve this, efforts such as leveraging digital technologies and online surveys to reduce paper usage are necessary.

Furthermore, ethical research involves the appropriate management of personal information and privacy protection, which are especially critical concerns. When conducting research, it is vital to consider aspects like obtaining consumer consent, ensuring anonymity, and ensuring data security. Additionally, during research analysis, efforts should be made to minimize the potential for bias and prejudice, with a focus on interpreting and reporting research results in a fair and objective manner.

Summary

Marketing research is a highly effective means of obtaining information to support marketing strategy development and business decision-making. However, alongside its effectiveness, marketing research also presents new possibilities and challenges as the times change. It’s essential to understand these dynamics within the context of marketing research and conduct effective surveys accordingly.